English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

Consolidated Financial Results
for the Fiscal Year Ended June 30, 2024
[IFRS]
August 13, 2024
Company name: Mercari, Inc.
Stock exchange listing: Tokyo Stock Exchange
Code number: 4385
URL: https://about.mercari.com/en/
Representative: Shintaro Yamada, Representative Executive Officer and CEO
Contact: Sayaka Eda, Executive Officer, Senior Vice President of Corporate, and Chief Financial Officer
Phone: +81-3-6804-6907
Scheduled date of annual general meeting of shareholders: September 25, 2024
Scheduled date of filing annual securities report: September 25, 2024
Scheduled date of commencing dividend payments: Availability of supplementary briefing material on annual financial results: Available
Schedule of annual financial results briefing session: Scheduled (for institutional investors and securities analysts)(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended June 30, 2024 (the “Period”)(July 1, 2023, to June 30, 2024)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
ProfitTotal
Operatingattributable toCore operating
Revenue
Profitcomprehensive
profitprofitowners ofincomeparentofMillions ofMillions ofMillions ofMillions ofMillions of
%
%
%
%
%
%
Fiscal year ended Millionsyen
yen
yen
yen
yen
yen
187,4079.0
18,86912.9
17,486
6.7
13,455
3.1
13,461
2.7
14,906
9.4
June 30, 2024
171,967–
16,708–16,385–
13,046–
13,113–
13,629–June 30, 2023
(Reference) Profit before tax:
Fiscal year ended June 30, 2024: ¥17,889 million [9.1%]
Fiscal year ended June 30, 2023: ¥16,393 million [–%]
(Note) Core operating profit is calculated by deducting other income and other expenses from operating profit.

Fiscal year ended
June 30, 2024
June 30, 2023

Basic earnings
per share

Diluted earnings
per share

Return on equity
attributable toowners of parent

Ratio of profit
before tax tototal assets

Ratio of core
operating profit
to revenue

Yen

Yen

%

%

%

82.48
81.28

79.01
77.61

21.2
28.1

3.9
4.3

10.1
9.7

Total assets

Total equity

Equityattributable toowners ofparentRatio of equity
attributable toowners of parent
to total assets

Equityattributable toowners ofparent per share

Millions of yen

Millions of yen

Millions of yen%

Yen

501,773
418,349

72,14555,65971,83655,34614.3
13.2

438.33340.67(2) Consolidated Financial Position

As of June 30, 2024
As of June 30, 2023

English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

(3) Consolidated Cash Flows
Cash flows fromoperating activities

Fiscal year ended
June 30, 2024
June 30, 2023

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at the endof period

Millions of yen

Millions of yen

Millions of yen

Millions of yen(43,337)(35,820)

(877)
(601)

32,091
25,167

191,998
201,822

2. Dividends
Ratio ofdividends

Annual dividends
1st
2nd
3rd
Year-endquarter-end quarter-end quarter-end

Total
dividends

Total

Payout ratio(consolidated)

to equity
attributableto ownersof parent(consolidated)

Fiscal year ended

Yen

Yen

Yen

Yen

Yen

June 30, 2023
June 30, 2024
Fiscal year ending
June 30, 2025
(Forecast)

-

0.00
0.00

-

0.00
0.00

0.00
0.00

-

0.00

-

0.00

0.00

Millions of
yen

-

%

%

-

-

-

3. Consolidated Financial Results Forecast for the Fiscal Year Ending June 30, 2025 (July 1, 2024, to June 30,
2025)(% indicates changes from the previous corresponding period.)
Revenue
Fiscal year ending
June 30, 2025

Core operating profit

Millions of yen%

Millions of yen%

200,000

6.7

22,000

16.6

to 210,000

to 12.1

to 25,000

to 32.5

English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

* Notes:(1) Changes in significant subsidiaries during the Period (changes in specified subsidiaries resulting in changes inscope of consolidation): No(2) Changes in accounting policies and changes in accounting estimates
1) Changes in accounting policies required by IFRS: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No(3) Total number of issued shares (common stock)1) Total number of issued shares at the end of the Period (including treasury stock):
June 30, 2024:
163,889,610 shares
June 30, 2023:
162,465,598 shares2) Total number of treasury stock at the end of the Period:
June 30, 2024:
196 shares
June 30, 2023:
103 shares
3) Average number of shares during the Period:
Fiscal year ended June 30, 2024:
163,220,957 sharesFiscal year ended June 30, 2023:
161,334,419 shares(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended June 30, 2024 (July 1, 2023, to June 30, 2024)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Operating profit
Ordinary profit
Net profit
Millions of yen% Millions of yen% Millions of yen%
Millions of yen%
Fiscal year ended
June 30, 2024
107,891
6.1
22,611 (17.1)
22,639 (16.8)
9,775 34.4
June 30, 2023
101,671 18.1
27,259 108.2
27,203 105.8
7,274
Basic earnings
per share
Fiscal year ended
June 30, 2024
June 30, 2023

Diluted earnings
per share

Yen

Yen

59.89
45.09

57.38
43.05

(2) Non-consolidated Financial Position
Total assets
Millions of yen

Net assets

Equity ratio

Net assets per share

Millions of yen%

Yen

As of June 30, 2024
166,185
68,186160,680
55,596
As of June 30, 2023
(Reference) Equity: As of June 30, 2024: ¥67,242 million
As of June 30, 2023: ¥54,504 million

40.5
33.9

410.29335.48* Consolidated Financial Results are exempt from audits conducted by certified public accountants or audit firms.
* Explanation of the proper use of financial results forecast and other notes· The Group has adopted International Financial Reporting Standards (IFRS) from the fiscal year ended June 30,2024. Presentation of figures as of transition date and as of June 30, 2023, in the consolidated financial statements
also conforms to IFRS.

· The forward-looking statements, including the financial results forecast, contained in these materials are based on
information currently available to the Company and certain assumptions deemed reasonable by the Company. As
such, they do not constitute guarantees by the Company of future performance.

English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

Appendix
Table of Contents
1. Overview of Operating Results, etc.
(1) Overview of Operating Results for the Period(2) Overview of Financial Position for the Period(3) Overview of Cash Flows for the Period(4) Future Outlook

2
2
3
3
4

2. Basic Policy Regarding Selection of Accounting Standards

5

3. Consolidated Financial Statements and Primary Notes(1) Consolidated Financial Position(2) Consolidated Statement of Profit or Consolidated Statement of Comprehensive Income(3) Consolidated Statement of Changes in Equity(4) Consolidated Statement of Cash Flows(5) Notes to the Consolidated Financial Statements
Notes on going concern assumption
Segment information
Per share information
Significant subsequent eventsFirst-time adoption of IFRS

6
6
8
10
12
13
13
13
16
16
17

1

English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

1. Overview of Operating Results, etc.
(1) Overview of Operating Results for the Period
During the fiscal year ended June 30, 2024, the Group worked to accelerate the growth of existing businesses
and create new businesses in order to achieve the Group mission, “Circulate all forms of value to unleash thepotential in all people.” As a result, the Group achieved record-high revenue and operating profit on aconsolidated basis. In new businesses, it was a year of significant growth for each service, with the launch of
Mercari Hallo, an on-demand work service, in March 2024, and the number of issued Mercards, the credit card
service launched in November 2022, surpassing 3.4 million cards.
In the Marketplace domain, the Group strived to focus on top-line growth while continuing disciplined
investments as its business policy for the current fiscal year. Although growth in focus areas, such as crossbordertransactions and B2C, and the loyalty program (Note 1) contributed to top-line growth, they failed to accelerate
growth, and full-year GMV (Note 2) amounted to ¥1,072.7 billion (up 9% year-on-year). On the other hand, theGroup achieved high profitability, with an adjusted core operating margin (Note 3) of 40%, including the investment
in Mercari Hallo. Mercari Hallo got off to a good start, with the number of registered users surpassing 5 million
less than three months after launch and the number of partner locations reaching 50,000 nationwide.
In the Fintech domain, the Group focused on acquiring Mercard users and aiming to enhance Group synergy
as its business policy for the current fiscal year. The number of cards issued steadily grew, and ARPU within
Mercari increased by 50% for Mercard holders, showing definite progress in the creation of Group synergy. In
addition, credit services centered on Mercard also grew strongly, raising profitability, and full-year revenue (Note3) continued to grow at a high rate of 51% year-on-year. Amid credit balance (Note 4) growing to ¥187.2 billion,
driven by the growth of credit services, the collection rate (Note 5) improved to 99.2% as a result of strict credit
control, etc. that utilizes the Group’s unique AI credit check, and realized sound growth.
As a result of the above, Japan Region reported revenue of ¥138,108 million (up 13.0% year-on-year) andsegment profit of ¥30,649 million (down 10.4% year-on-year) for the fiscal year ended June 30, 2024.
In its US business, the Group’s business policy for the current fiscal year was to aim to get back on track for
growth by refining the product to strengthen retention of existing users, as well as to focus on engaging Gen Z
for future growth. Despite taking on bold challenges such as product updates including rebranding to attract Gen
Z and becoming the first US marketplace to charge zero selling fees, these efforts were unable to return the US
business to a growth trajectory due to the significant impact of the external environment, including prolonged
inflation beyond expectations. As a result, full-year GMV of Mercari in the US for the current fiscal year
decreased 10% year-on-year to US$913 million (¥136.1 billion; the exchange rate conversion is the total of theamounts calculated for each month using the average rate during the month), and revenue amounted to ¥43,653
million (down 1.8% year-on-year). Based on these conditions, the Group conducted a review of marketing
expenses and implemented a reorganization. As a result, segment loss improved significantly to ¥5,293 million(versus a loss of ¥8,758 million in the corresponding period of the previous fiscal year).
As a result, for the fiscal year ended June 30, 2024, the Group recorded revenue of ¥187,407 million (9.0%
increase year-on-year), operating profit of ¥17,486 million (6.7% increase year-on-year), and profit attributableto owners of parent of ¥13,461 million (2.7% increase year-on-year).
(Note 1) The loyalty program is a point-back rewards program that depends on Mercard usage. The regularpoint-back rate is 1% but can be increased to as high as 4% for transactions within Mercari by taking
pay, buy, and sell actions (cross-use).
(Note 2) GMV (Gross Merchandise Value) is the total value of merchandise sold during a specified period.
(Note 3) Refers to figures after deducting internal transactions between Marketplace and Fintech (outsourced
payment processing fees).
(Note 4) Merpay Smart Payments (lump-sum and fixed-amount payment) and Merpay Smart Money credit
balance as of June 30, 2024 (excludes debt converted into bankruptcy reorganization debt, etc.).
(Note 5) Average aggregated rate of the quarterly cumulative collections completed within the past 11 months
compared to the amount of Merpay Smart Payments (lump-sum payment and fixed- amountpayment) and Merpay Smart Money billed in the past 11 months (excludes debt converted into
bankruptcy reorganization debt, etc.).

2

English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

(2) Overview of Financial Position for the Period(Assets)
Total assets at the end of the current fiscal year increased by ¥83,423 million from the end of the previous
fiscal year to ¥501,773 million.
The main reasons for any increases and decreases are as follows.
- The main reasons for any increases and decreases in cash and cash equivalents are outlined in the Overview
of Cash Flows for the Period section below.
- Trade and other receivables increased by ¥68,685 million compared to the end of the previous fiscal year,
primarily due to an increase in use of Merpay Smart Payments (lump-sum payment and fixed-amountpayment).
- Guarantee deposits increased by ¥20,004 million from the end of the previous fiscal year, primarily due todeposits paid based on laws and regulations accompanying the increase in the amounts spent on Mercari andMerpay.
(Liabilities)
Total liabilities at the end of the current fiscal year increased by ¥66,937 million from the end of the previous
fiscal year to ¥429,627 million.
The main reasons for any increases and decreases are as follows.
- Borrowings (current liabilities) decreased by ¥6,166 million from the end of the previous fiscal year, primarily
due to changes in the liquidation of receivables for lump-sum payments and fixed-amount payments.
- Bonds and borrowings (non-current liabilities) increased by ¥39,730 million from the end of the previous
fiscal year, primarily due to the liquidation of receivables for fixed-amount payments.
- Deposits received increased by ¥37,409 million from the end of the previous fiscal year, primarily due tohigher spending on Mercari and Merpay.
- Income taxes payable decreased by ¥5,084 million from the end of the previous fiscal year, primarily due topayment of income taxes.
(Equity)
Total equity at the end of the current fiscal year increased by ¥16,486 million from the end of the previous
fiscal year to ¥72,145 million.
The main reasons for any increases and decreases are as follows.
- Share capital increased by ¥1,752 million from the end of the previous fiscal year following the issuance of
new shares.
- Capital surplus increased by ¥485 million from the end of the previous fiscal year following the issuance of
new shares and share-based payment transactions.
- Retained earnings increased by ¥13,652 million from the end of the previous fiscal year primarily due to therecording of profit attributable to owners of parent.
(3) Overview of Cash Flows for the Period
Cash and cash equivalents (hereinafter referred to as “cash”) for the current fiscal year decreased by ¥9,823
million from the end of the previous fiscal year and amounted to ¥191,998 million at the end of the current fiscal
year.
The status of cash flows and their contributing factors for the current fiscal year are as follows.
(Cash flows from operating activities)
Cash used in operating activities during the current fiscal year amounted to ¥43,337 million (compared to¥35,820 million used in the previous fiscal year). This is primarily attributable to profit before tax of ¥17,889
million, an increase in trade and other receivables of ¥68,635 million, an increase in deposits received of ¥35,887
million, an increase in guarantee deposits of ¥20,000 million, and income taxes paid of ¥10,274 million.
(Cash flows from investing activities)
Cash used in investing activities during the current fiscal year amounted to ¥877 million (compared to ¥601
million used in the previous fiscal year). This is primarily attributable to purchase of investment securities of¥1,526 million and proceeds from refund of leasehold and guarantee deposits of ¥531 million.
(Cash flows from financing activities)
Cash provided by financing activities during the current fiscal year amounted to ¥32,091 million (comparedto ¥25,167 million provided in the previous fiscal year). This is attributable to net increase (decrease) in short3

English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

term borrowings of ¥(15,835) million and proceeds from issuance of bonds and long-term borrowings of ¥51,000
million.

(4) Future Outlook
Toward achieving the Group mission, the Group’s policy is essentially to aim for top-line growth that willlead to increased profits. For the fiscal year ending June 30, 2025, consolidated revenue is forecast to be between¥200.0 billion and ¥210.0 billion (up 6.7–12.1% year-on-year) and consolidated core operating profit between¥22.0 billion and ¥25.0 billion (up 16.6–32.5% year-on-year).

4

English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

2. Basic Policy Regarding Selection of Accounting Standards
The Group has voluntarily adopted International Financial Reporting Standards (IFRS) to improve
international comparability and usability of financial information.

5

English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

3. Consolidated Financial Statements and Primary Notes(1) Consolidated Financial Position(Millions of yen)
As of transition date(July 1, 2022)

As of June 30, 2023

As of June 30, 2024

211,758
80,422
7,093
–
3,258
302,533

201,822
126,752
2,708
196
7,165
338,645

191,998
195,437
3,764
1,543
9,289
402,033

Non-current assets
Property, plant and equipment
Right-of-use assets
Intangible assets
Deferred tax assets
Guarantee deposits
Other financial assets
Other non-current assets
Total non-current assets

2,110
6,939
781
3,366
26,7742,024
650
42,648

1,825
4,323
855
8,297
61,6081,859
933
79,704

1,472
3,477
570
8,350
81,612
3,268
988
99,739Total assets

345,181

418,349

501,773

AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Deposits paid
Other financial assets
Other current assets
Total current assets

6English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

(Millions of yen)
As of transition date(July 1, 2022)

As of June 30, 2023

As of June 30, 2024

20,11255,6022,014
1,409
139,069359
8,461
227,029

20,862
71,834
1,741
6,517
163,712
1,036
9,206
274,912

21,56065,6681,163
1,433
201,121
1,363
10,232
302,543

Non-current liabilities
Bonds and borrowings
Lease liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities

74,302
4,800
512
102
220
79,93884,533
2,445
477
183
137
87,777124,263
2,214
382
95
127
127,084

Total liabilities

306,967

362,689

429,627

EquityShare capital
Capital surplus
Retained earnings
Treasury shares
Other components of equity
Equity attributable to owners of parent
Non-controlling interests
Total equity

44,62847,299(55,891)(0)
1,798
37,835378
38,21445,59649,706(42,777)(0)2,821
55,346313
55,65947,34950,192(29,125)(0)
3,422
71,836308
72,145

Total liabilities and equity

345,181

418,349

501,773

Liabilities and equity
Liabilities
Current liabilities
Trade and other payables
Borrowings
Lease liabilities
Income taxes payable
Deposits received
Other financial liabilities
Other current liabilities
Total current liabilities

7

English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

(2) Consolidated Statement of Profit or Consolidated Statement of Comprehensive Income(Consolidated Statement of Profit or Loss)(Millions of yen)
For the fiscal year
ended June 30, 2023

For the fiscal year
ended June 30, 2024

Revenue
Cost of sales
Gross profit

171,967
58,010113,956

187,407
57,676
129,730

Selling, general and administrative expenses
Other income
Other expenses
Operating profit

97,247468
791
16,385

110,861598
1,981
17,486

Finance income
Finance costs
Profit before tax

501
493
16,393891
488
17,889

Income tax expense
Profit3,346
13,046

4,433
13,455

Profit attributable to
Owners of parent
Non-controlling interests
Profit13,113(66)
13,046

13,461(6)
13,455

Earnings per share
Basic earnings per share (yen)Diluted earnings per share (yen)

81.28
77.61

82.48
79.01

8

English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

(Consolidated Statement of Comprehensive Income)(Millions of yen)
For the fiscal year
ended June 30, 2023
Profit

For the fiscal year
ended June 30, 2024

13,046

13,455

(272)

463

694

614

160

373

582

1,451

Comprehensive income

13,62914,906Comprehensive income attributable to
Owners of parent
Non-controlling interests
Comprehensive income

13,694(65)
13,62914,911(4)
14,906

Other comprehensive income (after considering tax effects)
Items that will not be reclassified to profit or loss
Net gain (loss) on revaluation of financial assets
measured at fair value through other comprehensive
incomeItems that may be reclassified to profit or loss
Exchange differences on translation of foreign
operations
Effective portion of change in fair value of cash flow
hedgesTotal other comprehensive income (after considering tax
effects)9

English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

(3) Consolidated Statement of Changes in Equity
For the fiscal year ended June 30, 2023
(Millions of yen)

Equity attributable to owners of parent
Other components of equity
Share
capitalBalance as of July 1, 2022
ProfitOther comprehensive income
Comprehensive income
Issuance of shares
Share-based paymenttransactions
Total transactions with owners
Balance as of June 30, 2023

CapitalsurplusRetainedearnings

TreasurysharesShare
acquisitionrightsExchangedifferences ontranslation offoreign
operations–

44,62847,299(55,891)
13,113

(0)

1,831

–
967

–
967

13,113––(1,102)

1,439
967
45,596

2,407
49,706

694
694

1,543
–
(42,777)

–
(0)

440
2,272

–
694

Noncontrollinginterests

Total equity

Equity attributable to owners of parent
Other components of equity
Net gain (loss)
on revaluation
Effectiveof financial
portion ofassetschange in fairmeasured atvalue of cash
fair value
flow hedges
through othercomprehensive
incomeBalance as of July 1, 2022
ProfitOther comprehensive income
Comprehensive income
Issuance of shares
Share-based paymenttransactions
Total transactions with owners
Balance as of June 30, 2023

Total

Total equity
attributable toowners ofparent

–

(32)

1,798

159
159

(272)
(272)

581
581
(1,102)

37,835
13,113581
13,694
832

1,543

2,983

440
2,821

3,815
55,346

–
159

–
(305)

10

378
(66)
0
(65)

38,214
13,046582
13,629
832
2,983

–
313

3,815
55,659English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

For the fiscal year ended June 30, 2024
(Millions of yen)

Equity attributable to owners of parent
Other components of equity

Share capital Capital surplus

Balance as of July 1, 2023
ProfitOther comprehensive income
Comprehensive income
Issuance of shares
Purchase of treasury shares
Share-based paymenttransactions
Transfer from other componentsof equity to retained earnings
Total transactions with owners
Balance as of June 30, 2024

Retainedearnings

TreasurysharesShare
acquisitionrightsExchangedifferences ontranslation offoreign
operations
694

45,59649,706(42,777)
13,461

(0)

2,272

–
1,752

–
(346)

13,461––(1,178)

614
614

(0)
832

520
190

1,752
47,349485
50,192

190(29,125)

(0)
(0)

(658)
1,613

–
1,308

Noncontrollinginterests

Total equity

Equity attributable to owners of parent
Other components of equity
Net gain (loss)
on revaluation
Effectiveof financial
portion ofassetschange in fair measured atvalue of cash
fair value
flow hedges through othercomprehensive
incomeBalance as of July 1, 2023
ProfitOther comprehensive income
Comprehensive income
Issuance of shares
Purchase of treasury shares
Share-based paymenttransactions
Transfer from othercomponents of equity toretained earnings
Total transactions with owners
Balance as of June 30, 2024

Total

159

(305)

2,821

371
371

463
463

1,449
1,449
(1,178)–531

Total equity
attributable toowners ofparent55,346
13,461
1,449
14,911
226
(0)

313
(6)
1
(4)

55,65913,455
1,451
14,906
226
(0)

520

1,352

1,352

(190)

(190)

–

–

(190)
(32)

(848)
3,422

1,579
71,836

11

–
308

1,579
72,145English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

(4) Consolidated Statement of Cash Flows(Millions of yen)
For the fiscal year
ended June 30, 2023
Cash flows from operating activities
Profit before tax
Depreciation and amortization
Interest and dividend income
Interest expenses
Decrease (increase) in trade and other receivables
Change in deposits paid
Increase (decrease) in trade and other payables
Change in deposits received
Other
SubtotalInterest received
Interest paid
Change in guarantee deposits
Income taxes paid
Income taxes refund
Other
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of investment securities
Purchase of property, plant and equipment
Proceeds from refund of leasehold and guarantee
deposits
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from issuance of bonds and long-termborrowings
Redemption of bonds and repayments of long-termborrowings
Proceeds from issuance of shares
Repayments of lease liabilities
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of period
Cash and cash equivalents at the end of period

12

For the fiscal year
ended June 30, 2024

16,393
2,745
(501)
210
(46,324)
4,436
644
23,943
(21)
1,526
500
(211)
(34,831)(3,336)358
173(35,820)

17,889
2,042
(891)
202
(68,635)(970)
501
35,887(286)(14,260)
837(202)(20,000)(10,274)523
38(43,337)

(286)
(580)

(1,526)
(155)

177

531

88
(601)

272
(877)

867

(15,835)

25,66051,000(348)(1,888)832(1,844)25,167226(1,412)32,091

1,317

2,299

(9,936)
211,758
201,822(9,823)201,822
191,998

English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

(5) Notes to the Consolidated Financial Statements
Notes on going concern assumption
Not applicable.
Segment information(1) Overview of reportable segments
Financial information for Company Group operating segments separated according to business segment isavailable. This information is subject to periodic review in order to allow the Board of Directors and the Executive
Committee to determine the distribution of management resources and to evaluate business results. The Company
Group classifies the reportable segments as “Japan Region,” for which the Company Group operates its corebusiness of the Mercari marketplace in Japan, and “US,” for which the Company Group operates the Mercari(US) marketplace app in the United States of America. The Company Group also proposes and determines Groupstrategies along these segment lines. There are no aggregated business segments when deciding the reportablesegments.
Note that the principal information included in each report segment is as follows.
Marketplace
Operation of a marketplace app in Japan
Japan Region
Payment-, finance-, and cryptoasset-relatedFintechbusiness in Japan
US
Marketplace
Operation of a marketplace app in the US(2) Information regarding profit or loss by reportable segments
Intersegment revenue is based on actual market price.
Transition date (July 1, 2022)
The amounts for segment assets and liabilities are not disclosed here because they are not included in the periodic
review for determining the distribution of management resources and evaluating business results.

13

English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

For the fiscal year ended June 30, 2023
(Millions of yen)
Reportable segments
Other(Note 2)Adjustments

Consolid
ated

146,155–

146,155–

20,485–

20,485

–

5,326

5,326

–

5,326

44,440166,640

5,326

171,967–

171,967

111,01044,440155,451

5,326

160,787–

160,787

11,188–

11,188–

11,188–

11,188122,199

44,440166,640

5,326

171,967–

171,967

Revenue from external customers

122,199

44,440166,640

5,326

171,967–

171,967Intersegment revenue or transfers

–

–

–

1,176

1,176

(1,176)–

122,199

44,440166,640

6,502

173,143(1,176)

171,967

34,213(8,758)25,455(182)

25,273(8,887)

16,385

Finance income

–

–

–

–

–

–

501

Finance costs

–

–

–

–

–

–

493

Profit before tax

–

–

–

–

–

–

16,393

2,004

131

2,136

249

2,386

359

2,745

Japan
RegionUS

Total

Marketplace

101,71444,440146,155–

Fintech20,485–

20,485––

122,199

Revenue from contracts with customers
Revenue from other sources

Total

Revenue

Other
Total

Total

Total
Segment profit (loss)(Other items)
Depreciation and amortization(Notes) 1. Total amount of the segment profit (loss) corresponds to operating profit described in the consolidated
statements of income.
2. The “Other” column includes business segments that are not included in the reportable segments, suchas the sports business.
3. Adjustments for segment profit (loss) mainly consist of general and administrative expenses that are
not attributable to reportable segments.
4. For “US,” the amount of delivery revenue is recognized at the full amount of consideration received
from the customer, which is recorded as ¥24,916 million.
5. “Revenue from external customers” includes revenue from contracts with customers and revenue fromother sources. Revenue from other sources is primarily interest revenue in accordance with IFRS 9“Financial Instruments” (hereinafter, “IFRS 9”), which was ¥11,137 million.
6. The amounts for segment assets and liabilities are not disclosed here because they are not included in
the periodic review for determining the distribution of management resources and evaluating businessresults.

14

English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

For the fiscal year ended June 30, 2024
(Millions of yen)
Reportable segments
Other(Note 2)Adjustments

Consolid
ated

150,924–

150,924–

30,837–30,837

–

5,645

5,645

–

5,645

43,653

181,762

5,645

187,407–

187,407

118,982

43,653

162,635

5,645

168,281–

168,281

19,126–

19,126–

19,126–

19,126138,108

43,653

181,762

5,645

187,407–

187,407

Revenue from external customers

138,108

43,653

181,762

5,645

187,407–

187,407

Intersegment revenue or transfers

–

–

–

1,559

1,559

(1,559)–138,108

43,653

181,762

7,204

188,966(1,559)187,40730,649(5,293)25,35591

25,447(7,960)17,486

Finance income

–

–

–

–

–

–

891

Finance costs

–

–

–

–

–

–

488

Profit before tax

–

–

–

–

–

–

17,889

1,290

41

1,332

278

1,610

432

2,042

Japan
RegionUS

Total

Marketplace

107,271

43,653150,924–

Fintech30,837–30,837––138,108

Revenue from contracts with customers
Revenue from other sources

Total

Revenue

Other
Total

Total

Total
Segment profit (loss)(Other items)
Depreciation and amortization(Notes) 1. Total amount of the segment profit (loss) corresponds to operating profit described in the consolidated
statements of income.
2. The “Other” column includes business segments that are not included in the reportable segments, suchas the sports business.
3. Adjustments for segment profit (loss) mainly consist of general and administrative expenses that are
not attributable to reportable segments.
4. For “US,” the amount of delivery revenue is recognized at the full amount of consideration received
from the customer, which is recorded as ¥25,274 million.
5. “Revenue from external customers” includes revenue from contracts with customers and revenue fromother sources. Revenue from other sources is primarily interest revenue in accordance with IFRS 9,which was ¥18,310 million.
6. The amounts for segment assets and liabilities are not disclosed here because they are not included in
the periodic review for determining the distribution of management resources and evaluating businessresults.

15

English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

(3) Information on non-current assets by region (excluding financial assets, assets related to retirement benefits,
and deferred tax assets)
This information is omitted because the amount of non-current assets located in Japan accounts for the
majority of non-current assets in the Consolidated Financial Position.
(4) Information about major customers
This information is omitted because, of revenue from external customers, there are no customers that accountfor 10% or more of revenue in the Consolidated Statement of Profit or Loss.
Per share information(1) Basic earnings per share and diluted earnings per share
For the fiscal year
ended June 30, 2023

For the fiscal year
ended June 30, 2024

Basic earnings per share (yen)

81.28

82.48

Diluted earnings per share (yen)

77.61

79.01

(2) Basis for calculating basic earnings per share and diluted earnings per share
For the fiscal year
ended June 30, 2023

For the fiscal year
ended June 30, 2024

Profit used to calculate basic earnings per share anddiluted earnings per share
Profit attributable to owners of parent (million yen)Amount not attributable to common shareholders ofparent (million yen)
Profit used to calculate basic earnings per share(million yen)
Profit adjustment (million yen)
Profit used to calculate diluted earnings per share(million yen)
Weighted average number of shares of common stock
used to calculate basic earnings per share and diluted
earnings per share
Weighted average number of shares of common stock
used to calculate basic earnings per share (thousandsof shares)
Effect of dilutive potential common stock(thousands of shares)
Weighted average number of shares of common stock
used to calculate diluted earnings per share (thousandsof shares)
Outline of potential common stock excluded from thecomputation of diluted earnings per share due to its nondilutive effect

13,113

13,461––

13,113

13,461––

13,113

13,461

161,334

163,220

7,618

7,153

168,952

170,374––(Note) There were no significant transactions involving common stock or potential common stock between the end of
the fiscal year and the date of approval of these consolidated financial statements.

Significant subsequent events
Not applicable.

16English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

First-time adoption of IFRSThe Group has prepared its consolidated financial statements in accordance with IFRS from the fiscal year
ended June 30, 2024.
The most recent consolidated financial statements prepared in accordance with Japanese GAAP are those forthe one year ended June 30, 2023, and the date of transition to IFRS is July 1, 2022.
(1) Exemptions from retrospective application
As a general rule, IFRS 1 “First-time Adoption of International Financial Reporting Standards” (hereinafter“IFRS 1”) requires a company adopting IFRS for the first time to apply IFRS retrospectively. However, as an
exception, IFRS 1 allows a first-time adopter to optionally elect for retrospective application of some IFRS
requirements and prohibits retrospective application of some provisions.
The Group applied the following exemptions among exemptions from retrospective application set forth in
IFRS 1.
1) Business combinations
IFRS 1 allows a first-time adopter to elect not to apply IFRS 3 “Business Combinations” (hereinafter“IFRS 3”) retrospectively to business combinations conducted before the date of transition to IFRS.
The Group has applied this exemption and elected not to apply IFRS 3 retrospectively to businesscombinations conducted before the transition date.
2) Exchange differences on translation of foreign operations
IFRS 1 allows a first-time adopter to elect to deem the cumulative exchange differences on translation of
all foreign operations to be zero at the date of transition to IFRS.
The Group elected to deem the cumulative exchange differences on translation of all foreign operations
to be zero at the transition date.
3) Share-based payment
IFRS 1 allows a first-time adopter to elect not to apply IFRS 2 “Share-based Payment” (hereinafter “IFRS2”) to share-based compensation vested before the date of transition to IFRS.
The Group elected not to apply IFRS 2 to share-based compensation vested before the transition date.
4) Designation of financial instruments recognized before the transition date
IFRS 1 allows classification under IFRS 9 to be judged based on facts and circumstances that exist at thetransition date, instead of facts and circumstances that exist at initial recognition.
In addition, IFRS 1 allows a first-time adopter to designate changes in fair value of equity instruments asfinancial assets measured through other comprehensive income based on facts and circumstances that exist
at the transition date.
As for financial instruments recognized before the date of transition to IFRS, the Group has designatedequity financial assets as financial assets measured through other comprehensive income based on facts andcircumstances that existed at the transition date.
5) Leases
With regard to a first-time adopter’s leases as the lessee, IFRS 1 allows the first-time adopter to judge atthe date of transition to IFRS whether or not a contract contains a lease.
In addition, a first-time adopter is allowed to measure a lease liability at the present value of the remaining
lease payments, discounted using the lessee’s incremental borrowing rate at the transition date, and measure
a right-of-use asset at an amount equal to the lease liability.
Furthermore, it is allowed to recognize leases for which the lease term ends within 12 months of thetransition date and leases for which the underlying asset is of low value as expenses.
Applying these exemptions, the Group judged whether or not a contract contains a lease based on facts
and circumstances that existed at the transition date and measured a lease liability at the present value
discounted using the lessee’s incremental borrowing rate at the transition date, as well as a right-of-use asset
at the equal amount.

17

English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

6) Decommissioning liabilities included in the cost of property, plant and equipment
As for certain changes in decommissioning, restoration, and similar liabilities included in cost of property,
plant and equipment arising on or before the transition date, IFRS 1 allows a first-time adopter to measureliabilities at the transition date, estimate the amount that would have been included in cost when the liabilities
were first incurred by discounting the liabilities up to the time of incurrence, and calculate accumulated
depreciation of the amount using the depreciation policy employed by the company based on the current
estimate of useful lives of the assets.
The Group elected this exemption and calculated liabilities and accumulated depreciation.
(2) Reconciliations between Japanese GAAP and IFRSThe reconciliations required to be disclosed at the first-time adoption of IFRS are as follows.
Under Japanese GAAP, the Group has applied “Practical Solution on the Accounting and Disclosure
Under the Group Tax Sharing System” (ASBJ Practical Issues Task Force Report No. 42, August 12, 2021),
which provides for accounting treatment and disclosure of corporation tax, local corporation tax, and tax
effect accounting in the case of applying the Group Tax Sharing System from July 1, 2022, and the Japanese
GAAP column in the following table reflects the effects of the change in accounting policy.
In the reconciliations below, “Reclassification” includes items that do not affect retained earnings andcomprehensive income, while “Differences in recognition and measurement” include items that affectretained earnings and comprehensive income.

18

English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

Reconciliations of equity as of July 1, 2022 (transition date)(Millions of yen)Line items underJapanese GAAP
AssetsCurrent assets
Cash on handand in banks
Trade accounts
receivable
Other
receivable
Prepaid
expenses
Deposits paid
Other current
assetsAllowance for
doubtfulaccounts
Total current
assetsNon-current assets
Property andequipment
Intangible
assetsInvestments andother assets
Investment
securities
Lease deposits
Deferred tax
assetsGuarantee
deposits

Other assets
Total noncurrent assets
Total assets

Japanese
GAAP

Differences
Reclassifi- in recognition
cationandmeasurement

IFRS

Note

211,406–

352

211,758

4,454

76,680(712)

80,422(b) (c)80,287(80,287)

–

–

(b)

2,805

(2,805)––(d) (e)

7,093

–

–

7,093

2,156

1,246

(143)

3,258

(d) 1)(4,807)

4,807

–

–

(c)

303,396

(358)

(503)

302,533

3,462

(917)

(433)

2,110

(f) 3)

–

917

6,022

6,939

(f) 2)

666

657

(543)

781

(d) 3)

117

(117)

–

–

(g) 4)

1,614(1,614)

–

–

(g)

3,076

–

289

3,366

5)

26,774––

26,774

–

1,732

292

2,024

(g) 4)

413

(298)

535

650

1) 3)

36,125358

6,163

42,648339,521–5,659

345,181

19

Line items under IFRS
AssetsCurrent assets
Cash and cash
equivalents
Trade and otherreceivables

Deposits paid
Other current
assetsTotal current
assetsNon-current assets
Property, plantand equipment
Right-of-use
assetsIntangible
assetsDeferred tax
assetsGuarantee
deposits
Other financial
assetsOther noncurrent assets
Total noncurrent assets
Total assets

English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

(Millions of yen)Line items underJapanese GAAP

Japanese
GAAP

Differences
Reclassifi- in recognition
cationandmeasurement

IFRS

Note

Liabilities
Current liabilities
Short-termborrowings
Current portionof long-termborrowings
Accounts payable
Accrued expenses
Income taxes
payableDeposits received
Provision forbonuses
Provision forpoint certificates
Provision forshare-based
compensation
Other current
liabilities
Total current
liabilities
Non-current
liabilities
Convertiblebond-type bonds
with stockacquisition rights
Long-term
borrowings
Retirement
benefit liability
Asset retirement
obligations
Deferred tax
liabilities
Other noncurrent liabilities
Total noncurrent
liabilities
Total liabilities–

20,133(20)

20,112(h)54,254

1,348–

55,602(i)

1,348(1,348)

–

–

(i)

–
18,217
1,915

199(18,217)(1,915)

1,815
–
–

2,014
–
–

(f) 2)
(h)
(h)

1,525

–

(116)

1,409

139,094–(25)

139,069

1,389(1,389)

–

–

(k)

359

–

–

359

(g)

91

(91)

–

–

(l)

6,525

1,189

745

8,461

224,722

(91)

2,398

227,029

50,00025,749(1,446)74,302(i) 7)

25,749(25,749)

–

–

(i)

–

820

3,979

4,800

(f) 2)

75

(75)

–

–

(k)

126

–

386

512

(j)

162

–

(60)

102

5)

1,028

(745)

(62)

220

(f) (k)77,141–

2,796

79,938301,864

(91)

5,194

306,967

20

Line items under IFRS
Liabilities and equity
Liabilities
Current liabilities
Trade and otherpayablesBorrowings

Lease liabilities
Income taxes
payableDeposits
received(f) (k)6)

Other financial
liabilities

Other current
liabilities
Total current
liabilities
Non-current
liabilities
Bonds andborrowings

Lease liabilities

Provisions
Deferred tax
liabilities
Other noncurrent liabilities
Total noncurrent
liabilities
Total liabilities

English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

Line items underJapanese GAAPNet assets
Shareholders’equityCapital stock
Capital surplus
Retainedearnings(Accumulated
deficit)
Treasury stock
Accumulated othercomprehensive
incomeStock acquisitionrightsNon-controllinginterests
Total net assets
Total liabilities andnet assets

Japanese
GAAP

Differences
Reclassifi- in recognition
cationandmeasurement

IFRS

Note

Line items under IFRS

Equity44,62844,582

–
91

–
2,624

44,62847,299(l)Share capital
Capital surplus(54,098)–(1,792)(55,891)12)

Retained earnings

(0)

–

–

(0)

1,303

926

(431)

1,798

(m) 4)
9) 11)

926

(926)

–

–

(m)

37,34391

400

37,835

314

–

64

378

37,65791

464

38,214

339,521–5,659

345,181

21

Treasury shares
Other componentsof equity

Total equity
attributable toowners of parent
Non-controllinginterests
Total equity
Total liabilities andequityEnglish Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

Reconciliations of equity as of June 30, 2023 (end of the previous fiscal year)(Millions of yen)Line items underJapanese GAAP
AssetsCurrent assets
Cash on handand in banks
Trade accounts
receivable
Securities
Other
receivable
Prepaid
expenses
Deposits paid
Other current
assetsAllowance for
doubtfulaccounts
Total current
assetsNon-current assets
Property andequipment
Intangible
assetsInvestments andother assets
Investment
securities
Lease deposits
Deferred tax
assetsGuarantee
deposits

Other assets
Total noncurrent assets
Total assets

Japanese
GAAP

Differences
Reclassifi- in recognition
cationandmeasurement

IFRS

Note

Line items under IFRS
AssetsCurrent assets
Cash and cash
equivalents
Trade and otherreceivables

196,271

5,775

(224)

201,822

(a)

6,374

120,995(616)

126,752(b) (c)

5,775(5,775)––(a)

115,714(115,714)

–

–

(b)

2,261

(2,261)––(d) (e)

2,708

–

0

2,708

–

196

–

196

(g)

16,994(8,988)

(840)

7,165

(d) (g)1) 8)(5,455)

5,455

–

–

340,644(317)(1,682)

338,645

2,781

(438)

(517)

1,825

(f) 3)

–

438

3,885

4,323

(f) 2)

584

588

(317)

855

(d) 3)

78

(78)

–

–

(g) 4)

1,407(1,407)

–

–

(g)

7,802

–

494

8,297

5)

61,608––61,608

–

1,485

373

1,859

(g) 4)

385

(271)

819

933

1) 3)

74,648317

4,738

79,704415,292–

3,056

418,349

22

Deposits paid
Other financial
assetsOther current
assets(c)
Total current
assetsNon-current assets
Property, plantand equipment
Right-of-use
assetsIntangible
assetsDeferred tax
assetsGuarantee
deposits
Other financial
assetsOther noncurrent assets
Total noncurrent assets
Total assets

English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

(Millions of yen)Line items underJapanese GAAP

Japanese
GAAP

Differences
Reclassifi- in recognition
cationandmeasurement

IFRS

Note

Liabilities
Current liabilities
Short-termborrowings
Current portionof long-termborrowings
Accounts payable
Accrued expenses
Income taxes
payableDeposits received
Provision forbonuses
Provision forpoint certificates
Provision forshare-based
compensation
Other current
liabilities
Total current
liabilities
Non-current
liabilities
Convertiblebond-type bonds
with stockacquisition rights
Long-term
borrowings–

20,994(131)

20,862(h)55,121

16,713–

71,834(i)

16,713(16,713)

–

–

(i)

–
19,5091,485

104(19,509)(1,485)

1,636
–
–

1,741
–
–

(f) 2)
(h)
(h)

6,627

–

(110)

6,517

163,402–309

163,712

1,914(1,914)

–

–

(k)

1,036

–

–

1,036

(g)

209

(209)

–

–

(l)

7,588

1,809

(191)

9,206

273,608

(209)

1,512

274,91250,00035,696(1,163)84,533(i) 7)

35,696(35,696)

–

–

(i)

–

370

2,074

2,445

(f) 2)(f) (k)
6) 8)

42

(42)

–

–

(k)

126

–

351

477

(j)

138

–

45

183

5)

Other noncurrent liabilities

451

(328)

13

137

(f) (k)Total non-current
liabilities

86,454–

1,322

87,777360,063

(209)

2,835

362,689

23

Liabilities and equity
Liabilities
Current liabilities
Trade and otherpayablesBorrowings

Lease liabilities
Income taxes
payableDeposits received

Retirement
benefit liability
Asset retirement
obligations
Deferred tax
liabilities

Total liabilities

Line items under IFRSOther financial
liabilities

Other current
liabilities
Total current
liabilities
Non-current
liabilities
Bonds andborrowings

Lease liabilities

Provisions
Deferred tax
liabilities
Other noncurrent
liabilities
Total noncurrent
liabilities
Total liabilities

English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

Line items underJapanese GAAPNet assets
Shareholders’equityCapital stock
Capital surplus
Retainedearnings(Accumulated
deficit)
Treasury stock
Accumulated othercomprehensive
incomeStock acquisitionrightsNon-controllinginterests
Total net assets
Total liabilities andnet assets

Japanese
GAAP

Differences
Reclassifi- in recognition
cationandmeasurement

IFRS

Note

Line items under IFRS

Equity46,05246,005

–
209

(455)
3,491

45,59649,706(l)Share capital
Capital surplus(40,687)–(2,090)(42,777)

12)

Retained earnings

(0)

–

–

(0)

2,211

1,092

(482)

2,821

(m) 4)
9) 11)

1,092(1,092)––(m)

54,674209

462

55,346

554

–

(241)

313

55,228209

221

55,659415,292–

3,056

418,349

24

Treasury shares
Other componentsof equity

Total equity
attributable toowners of parent
Non-controllinginterests
Total equity
Total liabilities andequityEnglish Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

Notes on reconciliations of equity
Reclassification of line items
Principal information on reclassification is as follows.
(a) Transfer of cash and cash equivalents“Securities,” which were included in current assets under Japanese GAAP, are short-term
investments with maturities not exceeding three months at the time of purchase that are readily
convertible and are subject to an insignificant risk of changes in value. Accordingly, these items areshown as “Cash and cash equivalents” under IFRS.
(b) Transfer of trade and other receivables“Trade accounts receivable” and “Other receivable,” which were separately presented under current
assets under Japanese GAAP, are shown as “Trade and other receivables” under IFRS.
(c) Transfer of allowance for doubtful accounts
Under IFRS, “Allowance for doubtful accounts,” which was separately presented under current
assets under Japanese GAAP, is directly deducted from “Trade and other receivables” and shown as
the net amount.
(d) Transfer of player transfer fees
Player transfer payments, which were included in “Prepaid expenses” under current assets and“Other assets” under investments and other assets under Japanese GAAP, are reclassified as “Intangible
assets” under IFRS.
(e) Transfer of other assets“Prepaid expenses,” which were separately presented under Japanese GAAP, are reclassified as“Other current assets” under IFRS.
(f) Reclassification of right-of-use assets and lease liabilities“Lease assets,” which were included in “Property and equipment” under non-current assets underJapanese GAAP, were reclassified as “Right-of-use assets” under IFRS, and “Lease liabilities,” whichwere included in “Other current liabilities” under current liabilities and “Other non-current liabilities”
under non-current liabilities under Japanese GAAP, are separately presented as “Lease liabilities”
under current liabilities and non-current liabilities under IFRS.
(g) Reclassification of other financial assets and other financial liabilities“Derivative assets,” which were included in “Other current assets” under current assets in Japanese
GAAP, were reclassified as “Other financial assets” under current assets under IFRS, and “Investment
securities” and “Lease deposits,” which were separately presented under non-current assets underJapanese GAAP, were reclassified as “Other financial assets” under non-current assets under IFRS.
In addition, “Derivative liabilities,” which were included in “Other current liabilities” under current
liabilities in Japanese GAAP, were reclassified as “Other financial liabilities” under current liabilities
under IFRS, and “Provision for point certificates,” which was separately presented under current
liabilities under Japanese GAAP, was reclassified as “Other financial liabilities” under current
liabilities under IFRS.
(h) Transfer of trade and other payables“Accounts payable” and “Accrued expenses,” which were separately presented under current
liabilities under Japanese GAAP, are shown as “Trade and other payables” under IFRS.
(i) Reclassification of bonds and borrowings“Short-term borrowings” and “Current portion of long-term borrowings,” which were separately
presented under current liabilities under Japanese GAAP, were reclassified as “Borrowings” undercurrent liabilities under IFRS, and “Convertible-bond-type bonds with stock acquisition rights” and“Long-term borrowings,” which were separately presented under non-current liabilities under Japanese
GAAP, were reclassified as “Bonds and borrowings” under non-current liabilities under IFRS.
25

English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

(j) Transfer of provisions“Asset retirement obligations,” which were separately presented in non-current liabilities underJapanese GAAP, were reclassified as “Provisions” under non-current liabilities under IFRS.
(k) Reclassification of other liabilities“Provision for bonuses,” which was separately presented under current liabilities under Japanese
GAAP, was reclassified as “Other current liabilities” under IFRS, and “Retirement benefit liability,”
which was separately presented under non-current liabilities under Japanese GAAP, was reclassified
as “Other non-current liabilities” under IFRS.
(l) Reclassification of capital surplus“Provision for share-based compensation,” which was separately presented under current liabilities
under Japanese GAAP, was reclassified as “Capital surplus” under IFRS.
(m) Reclassification of other components of equity“Valuation difference on available-for-sale securities,” “Foreign currency translation adjustments,”“Deferred gains or losses on hedges,” and “Stock acquisition rights,” which were separately presented
under Japanese GAAP, are shown as “Other components of equity” under IFRS.
Differences in recognition and measurement
1) Contract acquisition costs
Incremental costs to obtain contracts with customers were processed collectively under Japanese
GAAP, but the portion expected to be recoverable is recognized as assets under IFRS.
2) Right-of-use assets and lease liabilities
Operating lease transactions were accounted for according to the method for normal leasetransactions under Japanese GAAP. However, under IFRS, “Right-of-use assets” and “Lease liabilities”
are recognized, and depreciation and interest expenses are recorded.
3) Recording of impairment losses
Under Japanese GAAP, if there is any indication of impairment, the carrying amount of anindividual asset or cash generating unit is compared with the total amount of undiscounted future cash
flows, and, only when the undiscounted future cash flows are lower than the carrying amount, an
impairment loss is recognized up to the recoverable value based on the total amount of discounted
future cash flows.
Under IFRS, if there is any indication of impairment, the carrying amount of an individual asset or
cash generating unit is compared with the recoverable value based on the total amount of discounted
future cash flows, and when the recoverable value is lower than the carrying amount, an impairment
loss is recognized up to that recoverable value.
As a result of implementing impairment test of the sports business and intangible assets with anindefinite useful life based on the business plan at the date of transition to IFRS, in the “Other” segment,
the Group recognized impairment losses of ¥1,185 million (“Property, plant and equipment” of ¥681
million (buildings and structures of ¥670 million and other of ¥10 million) and “Intangible assets” of¥504 million).
Additionally, the recoverable amount is measured at value in use, which is calculated by discounting
the estimated amount of cash flows approved by management to the present value at 9.1% by reference
to weighted average cost of capital of the cash generating unit. Cash flows in the business plan period
are estimated based on the growth rate, etc. predicted from entrance fee income and sales ofmerchandise.
4) Investment securities
Although under Japanese GAAP, shares not listed were calculated based on acquisition cost, andimpairment was recorded according to deterioration of the issuing company’s financial position as
26

English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

necessary, the Group has elected to measure such shares at fair value through other comprehensive
income under IFRS.
5) Deferred tax assets
The Group reconciled the amounts of “Deferred tax assets” and “Deferred tax liabilities” due to thetemporary differences resulting from the reconciliations from Japanese GAAP to IFRS and review ofrecoverability of all deferred tax assets upon the adoption of IFRS.
6) Compensated absences payable
For unused compensated absences, which were not required to be accounted for under Japanese
GAAP, “Other current liabilities” is recorded under IFRS.
7) Bonds payable
Convertible-bond-type bonds with stock acquisition rights under Japanese GAAP were treated using
the lump-sum method without separately classifying the portion of the value corresponding to bonds
and the portion of the value corresponding to stock acquisition rights. However, under IFRS, these
items are treated as compound financial instruments and separately presented as liability components
and equity components.
8) Cryptoassets deposited by users
Under Japanese GAAP, cryptoassets deposited by users were included in “Other” under current
assets and “Other” under current liabilities, but under IFRS, these cryptoassets are not recognized asassets, and the corresponding liabilities are not recognized in the consolidated statement of financial
position.
9) Transfer of cumulative exchange differences on translation of overseas subsidiaries
Upon the first-time adoption, the Group elected the exemption set forth in IFRS 1 and transferred
all the cumulative exchange differences at the transition date to retained earnings.
10) Unification of a reporting period
For certain consolidated subsidiaries whose fiscal year-end is different from that of the Company,
their reporting period was unified at the transition date to conform to the Company’s fiscal year-end.
11) Share-based compensation
Under Japanese GAAP, stock options subject to graded vesting are measured collectively, whereas
under IFRS those stock options are measured separately for each vesting period.

27

English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

12) Reconciliations of retained earnings(Millions of yen)
As of transition date(July 1, 2022)

As of June 30, 2023

170

88

(1,185)(1,185)Contract acquisition costs

691

1,105

Share-based compensation(1,927)(2,555)Compensated absences payable(1,340)(1,524)

Transfer of cumulative exchange differences on translation ofoverseas subsidiaries

1,303

1,303

Unification of a reporting period

(193)

(81)

22

64

(2,458)(2,785)Reconciliation due to tax effects

334

452

Reconciliation of non-controlling interests

330

241

Total reconciliations of retained earnings(1,792)(2,090)

LeasesImpairment losses

Other
Subtotal

28

English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

Reconciliations of profit or loss and comprehensive income (previous fiscal year from July 1, 2022, toJune 30, 2023)
Items of Consolidated Statement of Profit or Loss
(Millions of yen)
Differences
Line items underJapanese Reclassifi- in recognition
IFRS
Note
Line items under IFRSJapanese GAAP
GAAP
cationandmeasurement
Net sales
172,064–(96)
171,967
1)
Revenue
Cost of sales
57,639–371
58,010 3) 4) 5)
Cost of sales
Gross profit
114,425–(468)
113,956
Gross profit
Selling, general andSelling, general and(b) 2)
administrative
97,401(319)
165
97,247
administrative3) 4) 5)expenses
expenses
–
218
250
468
(a) 1)
Other income
–
1,171
(379)
791
(a) 7)
Other expenses
Operating profit
17,023(633)(3)
16,385
Operating profit
Non-operating
716
(716)
–
–
incomeNon-operating
290
(290)
–
–
expenses
Extraordinary
2
(2)
–
–
incomeExtraordinary losses
1,063(1,063)
–
–
–
501
–
501
(a)
Finance income(a) 3)
–
182
311
493
Finance costs
6)
Net profit before
16,389319(315)
16,393
Profit before tax
income taxes
Income taxes
7,944(4,150)(446)
3,346(b) 8)
Income tax expense
Income taxes (4,470)
4,470
–
–
(b)
deferred
Net profit
12,914–131
13,046
Profit29

English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

Items of Consolidated Statement of Comprehensive Income(Millions of yen)Line items underJapanese GAAPNet profit
Other comprehensive
incomeDifferences
Reclassifi- in recognition
cationandmeasurement
12,914–
131

Japanese
GAAP

IFRS
13,046

Valuationdifference on
available-for-salesecurities

(0)

–

(272)

(272)

Foreign currencytranslation
adjustments

747

–

(53)

694

Deferred gains orlosses on hedges

160

–

–

160

Total othercomprehensive
income

908

–

(325)

582

Comprehensive
income13,823–(193)

13,629

30

Note

7)

Line items under IFRSProfitOther comprehensive
incomeItems that will not bereclassified to profit
or loss
Net gain (loss)
on revaluation offinancial assets
measured at fairvalue throughothercomprehensive
incomeItems that may bereclassified to profit
or loss
Exchangedifferences ontranslation offoreign
operations
Effective portionof change in fairvalue of cash
flow hedges
Other comprehensive
income (after
considering tax
effects)
Comprehensive
incomeEnglish Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

Notes on reconciliations of profit or loss and comprehensive income
Reclassification of line items
Principal information on reclassification is as follows.
(a) Reconciliation of line items
As for items shown in “Non-operating income,” “Non-operating expenses,” “Extraordinary income,”and “Extraordinary losses” under Japanese GAAP, financial items are presented in “Finance income”
or “Finance costs,” and other items in “Other income” or “Other expenses” under IFRS.
(b) Income tax expense
Inhabitant taxes on a per capita basis were included in “Income taxes” under Japanese GAAP, butthey are included in “Selling, general and administrative expenses” under IFRS. In addition, the valueadded portion of pro forma standard enterprise tax was included in “Selling, general and administrative
expenses” under Japanese GAAP, but is included in “Income tax expense” under IFRS. Furthermore,
under Japanese GAAP, “Income taxes - current” and “Income taxes - deferred” are demarcated andpresented separately, but under IFRS they are bundled together and presented as “Income tax expense.”
Differences in recognition and measurement
1) Transfer fee income
With regard to received transfer fees, such fees were included in “Net sales” under Japanese GAAP,
but they are included in “Other income” under IFRS.
2) Contract acquisition costs
Incremental costs to obtain contracts with customers were processed when they were incurred underJapanese GAAP, but the portion expected to be recoverable is recognized as assets under IFRS.
As a result of this change, expenses related to these costs were transferred to assets as contract
acquisition costs.
3) Reconciliation of depreciation, etc. as a result of recording of right-of-use assets
Operating lease transactions were accounted for according to the method for normal leasetransactions under Japanese GAAP. However, under IFRS, “Right-of-use assets” and “Lease liabilities”
are recognized, and depreciation and interest expenses are recorded.
4) Compensated absences payable
For unused compensated absences, which were not required to be accounted for under Japanese
GAAP, “Cost of sales” and “Selling, general and administrative expenses” are recorded under IFRS.
5) Share-based compensation
Under Japanese GAAP, stock options subject to graded vesting are measured collectively, whereas
under IFRS those stock options are measured separately for each vesting period. As a result of thischange, stock-based compensation expenses included in “Cost of sales” and “Selling, general andadministrative expenses” are adjusted.
6) Bonds payable
Convertible-bond-type bonds with stock acquisition rights under Japanese GAAP were treated using
the lump-sum method without separately classifying the portion of the value corresponding to bonds
and the portion of the value corresponding to stock acquisition rights. However, under IFRS, these
items are treated as compound financial instruments and separately presented as liability components
and equity components. As a result of this change, interest expenses on bonds are included in “Financecosts.”

31

English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

7) Measurement of financial instruments
Although under Japanese GAAP, shares not listed were calculated based on acquisition cost, andimpairment was recorded according to deterioration of the issuing company’s financial position, suchshares are measured at fair value through other comprehensive income under IFRS. In addition, as forequity instruments, gain or loss on sales and impairment losses were recognized as net profit or loss
under Japanese GAAP, but under IFRS, any change in fair value is recognized as other comprehensive
income.
8) Reconciliation for tax effects
The Group reconciled the amount of “Income tax expense” due to the temporary differences
resulting from the reconciliations from Japanese GAAP to IFRS and review of recoverability of alldeferred tax assets as a result of the adoption of IFRS.
(3) Reconciliations of Cash Flows
Lease payments paid under operating leases were classified as cash flows from operating activities underJapanese GAAP, but they are classified into cash flows from financing activities as repayments of lease liabilities
under IFRS.

32