Financial Results
FY3/23 (25th term)
Q2

November 29, 2022
Estore GroupEstore Corporation

Although the Company has applied the new revenue recognition standard
from FY3/22, the figures for FY3/21 in this document are retrospectively
applied these standards (but not audited) as reference.
The figures for transactions conducted as an agent have been reclassified
from gross to net.

1. Overview of Q2 FY3/23 Results

Overview of Q2 FY3/23 Results

Prior investment• Increase in sales and decrease in profits
BusinessResults• Net sales: 2,849 million yen (Up 0.3%)• Operating income: 246 million yen (Down 54.3%)
Operating income to net sales : 8.7%

[External environment]• Willingness to invest in DX is strong• Stable e-commerce spendingFactor[Prior investment]• Developed new functions for the EC Systems segment• Strengthened sales activities for new customer acquisition andrecruitment• Large-scale M&A in the HOI business[Others]• Temporary increase in outsourcing costs for specific projects
p.3

Consolidated Net Sales (Quarterly Change)
Solid performance against the backdrop of strong corporate DX investment.

(Million yen)

EC SystemsFY3/21 FY3/22 FY3/23

1,469 1,486
1,372 1,363

Payment Settlement

Marketing

1,455 1,487

1,362

1,357

1,417

1,239

Q1
Apr-Jun

Q2
Jul-Sep

Q3
Oct-Dec

Q4
Jan-Marp.4

Operating income Change Factors (YoY)
Actively promote upfront investment
Increase in netsales(Million yen)

540+7

Prior investment
R&D
investment
Strengthen sales for new customer
acquisition and recruitment

M&A-related
expenses

▲ 82
▲ 75

Temporary increase in costs
due to specific projects▲ 37▲ 87246▲ 20Others

Q2 FY3/22
Operating income

Q2 FY3/23
Operating incomep.5

Consolidated Balance Sheets
Increase in total assets due to M&A(Million yen)

Current assets
Major items
Cash and deposits
Notes, accounts receivable andcontract assets
Merchandise

8,075 Current liabilities

6,543

Major items
Notes payable, accounts payable andaccrued liabilities

4,628
2,282
818

Deposits received

1,724
1,930
2,189

Non-current liabilities

2,383

Short-term and current portion of loans

Non-current assets
Tangible and intangible
Investment and others

3,912
Net assets
2,275
Shareholders' equity1,237
Others

3,061
2,551
509

Total assets

11,987

11,987(Total assets at the end of March 2022: 8,211）

Liabilities
Long-term debt: 1,590 million yen
Convertible bonds: 510 million yen
p.6

Consolidated Statements of Cash Flows
Acquisition of shares of a new subsidiary
Profit before income taxes:+166 million yen
Net sales：+128 million yen
Income taxes paid: - 229 million yen

5,000
4,500

4,448

Operating CF
104

Long-term and short-term borrowings:+1,652 million yen
Loan repayment: -119 million yen
Dividends paid: -201 million yen

InvestingCFFinancing CF
1,330

4,627

4,000
3,500

▲ 1,256

3,000
2,500

Acquisition of shares of a
new subsidiary:-1,193 million yen

2,000
1,500
1,000(Million yen)

End-Mar. 2022
Cash balance

End-Sep. 2022
Cash balancep.7

2. Status by Revenue Model

Consolidated Net Sales(Quarterly Change)

2. Status by Revenue Model EC Systems■ Solid performance on the back of DX investments by client companies. Maintain increased sales.

Net sales：2,171 million yen＋1.7% YoY(Million yen)

FY3/21

FY3/22

FY3/23

1,125 1,143
1,010 1,028

1,034998

1,088

1,068977890

Q1
Apr-Jun

Q2
Jul-Sep

Q3
Oct-Dec

Q4Jan-Marp.9

Consolidated Net Sales(Full-year Forecast)

2. Status by Revenue Model EC Systems■ Client companies' willingness to invest in DX is strong.
Double-digit sales growth is expected.
(Million yen)

4,850
4,293
3,900

1,936

FY3/20Q2 Results 2,171

FY3/21

FY3/22

FY3/23
Planp.10

Consolidated Net Sales(Quarterly Change)

2. Status by Revenue Model Payment Settlement

E-commerce spending has been stable.
-0.6% YoY

Net sales：405 million yen(Million yen)

FY3/21

FY3/22

FY3/23
247
230

195

210

Q1
Apr-Jun

208

208

197

Q2Jul-Sep

200

197

Q3
Oct-Dec

198

Q4Jan-Marp.11

2. Status by Revenue Model(Reference) Shopserve: Gross
Payment Settlement Merchandise Value (GMV)

Stable levels since the COVID-19 bubble.
(Billion yen)

35
COVID-19
1st year

30Bubble

25 soaring

2ndyear

3rdyearIncrease
Increase

Increase

20 Before

COVID-1915
1050

Apr-JunFY3/20Jul-Sep

FY3/21

Oct-Dec

FY3/22

Jan-Mar

FY3/23* Shopserve's GVM. Figures do not include the value of Sell Side Solution trade.

p.12

2. Status by Revenue Model Payment Settlement

Consolidated Net Sales(Full-year Forecast)

The demand period for e-commerce consumption will begin from Q3 onwards.

(Million yen)

835

854

890

582

Q2 Results 405

FY3/20FY3/21

FY3/22

FY3/23
Plan

p.13

Consolidated Net Sales(Quarterly Change)

2. Status by Revenue Model Marketing
Shifted to web promotion for e-commerce sites.
Net sales：272 million yen-8.8% YoY
(Million yen)

FY3/21

FY3/22

FY3/23190

153

155151146145179151150Q3Oct-Dec

Q4
Jan-Mar126

Q1
Apr-Jun

Q2
Jul-Sepp.14

Consolidated Net Sales(Full-year Forecast)

2. Status by Revenue Model Marketing

The Hands-on Incubation (HOI) business is expected to become profitable.
From Q3 onwards, we plan to classify this business as HOI segment. For convenience, this business iscurrently included in Marketing.
(Million yen)

3,860678599396

Q2 Results 272

FY3/20FY3/21

FY3/22

FY3/23
Planp.15

3. Business Forecasts

3. Business Forecasts

Full-year Business Forecasts■ Sales and profits are forecast to increase on the back of strong corporate EC and DX
spending that are expected to become more active, expecting record high profits for 3
consecutive years.
ExternalEnvironment• Strong DX investment demand• E-commerce demand is heavily
weighted toward the 2H
Previous results
FY3/22•

Internal
environment••

Consolidated net income of subsidiaries acquired throughM&A increased.
The increased costs associated with specific projects havebeen eliminated.
Adjusted upfront investment depending on sales conditions.

Current Forecast *1
FY3/23

YoY(Million yen)

Net sales

5,746

9,600

167.0％

Operating income

1,051

1,250118.9％

Ordinary income

1,078

1,270

117.8％Net income*2677

800118.1％※1※2Disclosed on August 10, 2022
Net income attributable to owners of parent

p.17

Consolidated Net Sales(Medium-Term Management Plan)

3. Business Forecasts■ Strong demand for DX investment mainly on systems for large e-commerce sites.
Operation of HOI business.

Revised August 10,2022(Million yen)

5,415

5,746

10,1009,600

Initial plan

2,914
Q2 Results 2,849

FY3/20Results

FY3/21Results

FY3/22
FY3/23ResultsPlan
Medium-Term Management Plan

FY3/25Plan

p.18

Consolidated Operating Income(Medium-Term Management Plan)

3. Business Forecasts

Operating income (Million yen)
2,000
2,000

1,250

1,000

COVID-19
special demand(estimate)

1,051
906

Actual: 700
500478Q2 Result 246

FY3/20Results

FY3/21Results

FY3/22
Results

FY3/23Plan

FY3/25Plan

Medium-Term Management Plan
p.19

4. Appendix

Acquisition of SHIFFON Co., Ltd. as a Subsidiary
Future Outlook•The combination of SHIFFON's network and Estore's data analytics technology and marketing
expertise will create a new genre of company as experts in digital transformation.

•Accelerate SHIFFON's digital transformation, the first phase of which is the creation of a global ecommerce platform.

Strengths of SHIFFON•

Established a solid position through a consumer perspective that is not bound by industry
norms.

•High-level EC conversion rate (approx. 30% of sales are from webshop)
Both companies have an equal relationship.
Mr. Nishimura, representative of SHIFFON, plans to participate in
Estore's new business.

Mr. Ishimura, CEO, Estore (left) and Mr. Nishimura, President, SHIFFON
Source: WWD JAPAN
p.21

Major Customers

p.22