Basic Report (Issued by The Stock Research Center)

Petgo (7140 TSE Growth)

May 9,2023

Expects continued growth by enhancing efforts for expanding periodic purchases andenriching its own brand productsThis report is an English translation of part of the report issued on April 14, 2023.
For inquiries concerning the report, please contract info@stock-r.org【7140 Petgo Sector：Retail Trade】
Fiscal YearNet sales

YoY

OperatingprofitYoY(mn yen)(%)(mn yen)(%)

Ordinary
profitYoYProfit

YoY

EPS

BPS

DPS

(mn yen)(%)(mn yen)(%)(yen)(yen)(yen)

Mar. 2021

9,455

16.3

99-

112

394.1

71

366.8

59.5

292.0

0.0

Mar. 2022

9,650

2.1

165

65.3

152

35.4

105

47.8

87.9

380.2

0.0

Mar. 2023 CE

10,442

8.2

230

39.3

222

45.3

154

46.5

86.2

-0.0

Mar. 2023

E

10,342

7.2

233

41.1

228

49.2

157

49.4

85.2

509.8

0.0

Mar. 2024E

11,210

8.4

266

14.2

261

14.5

180

14.7

97.7

607.5

0.0

Mar. 2025E

12,160

8.5

330

24.1

323

23.7

223

23.8 121.1

728.6

0.0

Note: CE(company expectations),E(Stock Research Center expectations)Source: Stock Research Center

1. Corporate Overview
Petgo is engaged in the e-commerce business specialized in dietetic foods for dogs andcats, veterinary drugs and other pet healthcare products.
For fiscal year ended March 2022, the composition of net sales by store format was 24.7%
for its own online site and 75.3% for online malls, etc. of other companies. The compositionof net sales by sales format for its own online site was 59.0% for purchase each time and41.0% for periodic purchase. The ratio of the D2C brand products planned and developed
in-house to net sales was 6%.

2. Financial Analysis
With the backdrop of factors including improved gross profit margin by increased number ofcustomers with the multi-commerce strategy and increased net sales composition of D2C
brand products, net sales increased by 6.6% annually and ordinary profit by 96.7% fromfiscal year ended March 2017 through to fiscal year ended March 2022.
In terms of growth potential and financial stability, Petgo is more attractive than similar
companies.

3. Non-Financial Analysis
The source of its intellectual capital lies in its extensive volume of high-value added petdata.

4. Corporate Strategy Analysis
The management strategies that the company takes are the multi-commerce strategy toproactively open stores in online malls of other companies in addition to its own site, thesubscription commerce strategy aiming to strengthen periodic purchases and the D2C
brand strategy.

Newly Listed Company Introduction Report

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accessing and using the report or relying on the report concerning the distribution of the report. Final investment decisions shall be made by the investors themselves, and entire
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not be copied, reprinted, quoted, etc. without permission.

Basic Report (Issued by The Stock Research Center)

Petgo (7140 TSE Growth)

May 9,2023

5. Analyst Evaluation
We forecast 7.2% revenue increase and 41.1% operating profit increase for fiscal year
ending March 2023 considering the progress made up to the third quarter and various
measures planned to be implemented in the fourth quarter.
We anticipate continued growth for the medium term through enhanced efforts to increase
periodic purchases, enrichment of D2C brand products and such. We forecast year-on-year
revenue increase of 8.4% and operating profit increase of 14.2% in fiscal year ending
March 2024, and 8.5% and 24.1%, respectively, in fiscal year ending March 2025.

Newly Listed Company Introduction Report

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The contents indicated in the report are based on information as of the date the report was created and are subject to change without prior notice. The Stock Research Center
makes no warranty or representation concerning the accuracy, reliability, completeness, adequacy and reliability of the information indicated in the report, and shall not assume
no responsibility or obligation whatsoever. The Stock Research Center assumes no responsibility for any direct or indirect loss, lost profit, damage or other results from investors
accessing and using the report or relying on the report concerning the distribution of the report. Final investment decisions shall be made by the investors themselves, and entire
responsibility for investments lies with investors that accessed the report. In addition, intellectual rights concerning the report belongs to The Stock Research Center and may
not be copied, reprinted, quoted, etc. without permission.

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