Financial Results Briefing Report for 4Q, FY2022
CREEMA LTD. (TSE Growth Market: 4017)
May 11, 2022

Copyright ©2022 CREEMA LTD.

PAGE

1

Agenda1.

FY22 4Q and full-year results

P3

2.

FY23 growth strategy

P 31

3.

FY23 earnings forecasts

P 41

4.

Appendix

P 50

Copyright ©2022 CREEMA LTD.

PAGE

2

FY22 4Q and full-year results

Copyright ©2022 CREEMA LTD.

PAGE

3

[Company-wide] 4Q results
While 4Q sales grew significantly by 117% YoY at 628 million yen, SG&A expenses remained at a lower level than in thesame period of the previous year, when TV commercials were aired and investment in new business development was
made. As a result, all major profit items, including YoY plus 233 million yen in the ordinary profit, significantly
exceeded those of the previous year.
Topics4Q
Unit: million yen

Results

YoY
117%

Sales

628

Sales Cost

34

1802%

Gross profit

594

111%

SG&A

508

80%

(Excluding masks: 120%)• In 4Q sales, marketplace and platform services
continued to perform strongly, and event andstore services showed some recovery trend
despite the significant negative impact of
COVID-19 continued, and maintained to growat 117% YoY.
‒ Except for sales excluding masks, which
surged last year due to COVID-19,
growing at 120% YoY.

Operating profit

85

+183

Ordinary profit

131

+233

• SG&A expenses remained as planned, butwere limited to 80% in YoY due to the large
scale of TV commercials and investment in new
business in the same period last year.

+97• As a result, both major revenue and profit items
were significantly higher than the previous year.

Net income

Copyright ©2022 CREEMA LTD.

26

PAGE

4

[Company-wide] Full-year results
The full-year sales were 111% YoY (122% excluding masks) at 2.2 billion yen, reaching record highs. As in 4Q, all major
profit items were significantly higher than the previous year, including the 177% YoY expansion in the ordinary profit.
All revenue and profit items reached record highs.
Full-year
Unit: million yen

Results

Topics
YoY
111%

Sales

2,294

Sales Cost

74

Gross profit

2,219

SG&A

1,897

Operating profit

322

Record high143%

Ordinary Profit

363

Record high177%

Net income

230

Record high129%

Copyright ©2022 CREEMA LTD.

Record high(Excluding masks:122%)

1425%
Record high

108%
104%

• The full-year sales grew at 111% YoY, withstable growth in online services, despite
continued weakness in event and store
services due to COVID-19.
‒ As in 4Q, it grew strongly at 122% YoY,
with the exception of full-year sales
excluding masks.
• SG&A expenses were 104% YoY mainly due to
TV commercials, large-scale development
investments, and new business investments.
• As planned, sales increased significantly inexcess of expenses. As a result, all major profit
items significantly exceeded the previous year,
reaching record highs in all profit items.
‒ Operating profit：143% YoY‒ Ordinary profit：177% YoY‒ Net income：129% YoY

PAGE

5

[Company-wide] Trends in consolidated sales
In 4Q, in addition to the growth of online fields such as the marketplace service, large events resumed under preemergency measures, resulting in 117% YoY. For the full year, YoY continued to grow strongly at 111%. Excluding sales
related to handmade masks, which saw a surge in demand in the previous fiscal year due to COVID-19, YoY sales were120% in 4Q and 122% for the full year, showing continued strong growth in the core business.
QuarterFull-year
YoY：117%* Excluding masks: 120%

Unit: million yen

YoY：111%* Excluding masks: 122%

2,294

523

514

448
365

386

1Q
FY20

2Q

2,062

628

606
557

539

503

485

1,517

317

Copyright ©2022 CREEMA LTD.

3Q

4Q

1Q
FY21

2Q

3Q

4Q

1Q
FY22

2Q

3Q

4Q

FY20

FY21

FY22

PAGE

6

[Company-wide] Changes in consolidated SG&A expenses
As a result of TV commercials and investment in new business development in the same period of last year, YoY was
80% in 4Q, which was lower than the previous year. However, as a result of investment aiming at medium- to long-term
growth in the full year as planned, YoY increased slightly to 104%.
QuarterFull-year
YoY：80%

Unit: million yen

YoY：104%

Temporary surge in
TV commercials +Investment in new
business investment：Other：Promotion expenses：Personnel expenses

263

173
90

175

84

161

168

67

79

73

84

93

103

1Q
FY20

2Q

3Q

4Q

Copyright ©2022 CREEMA LTD.

201

202

228

201

222

248

255

955

522

460

679

249
117

869

110

108

124

322

96

81

96

101

110

122

104

130

118

128

355

439

481

103

1Q
FY21

2Q

3Q

4Q

1Q
FY22

2Q

3Q

4Q

FY20

FY21

FY22

PAGE

7

[Company-wide] Changes in consolidated operating income
In 4Q, it reached 85 million yen with +183 million yen YoY. For the full year, YoY hit a record high of 322 million yen,reaching 143% YoY due to strong growth in existing businesses while continuing upfront investment for the future.
QuarterFull-year

Unit: million yen

YoY：+183 million yen

YoY：143%

322

148
122

226

125
85

75
58
39

49
48

6
1Q
FY20

2Q

3Q

4Q

1Q
FY21

2Q

3Q

4Q

1Q
FY22

2Q

3Q

4Q

FY20

FY21

FY22

-98

Copyright ©2022 CREEMA LTD.

PAGE

8

[Company-wide] Changes in consolidated ordinary profit
In addition to the strong growth of the business, as non-operating incomes including subsidies for the event businesswere recorded, the ordinary profit reached + 233 million yen YoY at 131 million yen in 4Q. For the full year, it hit arecord high of 177% YoY at 363 million yen.
QuarterFull-year
YoY：+233 million yen

Unit: million yen

147
120

YoY：177%

Subsidies, etc. forthe event businessare included in theother income

363

131

121

204
64

61

36

48
45

2
1Q
FY20

2Q

3Q

4Q

1Q
FY21

2Q

3Q

4Q

1Q
FY22

2Q

3Q

4Q

FY20

FY21

FY22

-102

Copyright ©2022 CREEMA LTD.

PAGE

9

[Company-wide] Changes in consolidated net income
Net income landed at 230 million yen, a 129% YoY growth for the full year, and also a record high.
QuarterFull-year
YoY：+97 million yen

Unit: million yen

120

YoY：129%

129
230

116

178
57

0.6
1Q
FY20

2Q

12
3Q

4Q
-9

1Q
FY21

2Q

3Q

26

17

4Q

1Q
FY22

2Q

3Q

4Q

FY20

FY21

FY22

-28

-70

Copyright ©2022 CREEMA LTD.

PAGE 10

[Company-wide] Balance sheet status
Retained earnings increased significantly due to higher sales and profits. Maintain a stable liquidity ratio and build astable financial base.
Subject (Unit: Million Yen)

4Q FY2022(Ref.) 4Q FY2021

YoY

3,598

3,568

101%

Cash and cash equivalents

2,953

2,885

102%

Accounts receivable

623

644

97%

291

126

231%

Deferred tax assets

-

63

-

Security deposits

154

38

401%

Goodwill

37

-

-

3,889

3,694

105%

2,177

2,313

94%

Withholdings / Funds payable and amounts
due to creators

1,619

1,460

111%

Loans repayable within one year

176

266

66%

391

298

131%

381

298

128%

2,569

2,612

98%

Capital stock

536

532

101%

Capital surplus

1,957

1,953

100%

Retained earnings-1,172-1,403

-

1,320

1,081

122%

Current assets

Fixed assets

Total assets

Current liabilities

Fixed liabilities
Long-term liabilities
Total liabilities

Total net assets
Copyright ©2022 CREEMA LTD.

PAGE 11

Business structure and “Creema economic zone”
We are developing a creator empowerment business with Japan’s largest handmade marketplace, Creema, as the main
axis. From the next slide onward, we will cover the latest trends in each service, starting with the marketplace service.
Creator empowerment business(1) Marketplace service (Japan/Taiwan/Hong Kong)• KPIs of our business model− Registered creators 23,000 people− Registered works
13 million items− App downloads
12 million− GMV
16 billion/year(2) Platform services• Internal advertising(Advertising for creators)• External advertising (Advertising forcompanies and local governments)• Membership services(Daily remittance service, etc.)

Copyright ©2022 CREEMA LTD.

(Work listing)

Creators(Sellers)

Transaction
Revenue(Purchase)
Payment

Users(Buyers)

Transactionfees(3) Event and store services• Events− HandMade In Japan Fes’
(Tokyo Big Sight), etc.
• Store− Creema Store(4) New service group• Crowdfunding service− Creema SPRINGS• Lesson video platform− FANTIST• Other new services in preparation, etc.

PAGE 12

(1) Marketplace service: Creema GMV trends
As a result of MD measures in accordance with the timing and continuous product improvement, GMV of 4Q reached109% YoY at 4.3 billion yen. Despite a rebound from the surge in mask demand and stay-at-home consumption in theprevious fiscal year, the figures for the full year exceeded a record high of 16 billion yen at 104% YoY.
Creema GMV trends

Main initiatives
Quarter• Featuring trends such as Christmas andValentine’s Day, implemented merchandisingand campaign measures.

Unit: million yen

YoY：109%• Continuous enhancement of Creema
products focusing on a better user interface
and measures to improve convenience forcreators.
• Strengthening of systems and support
structure to provide a safer and more securepurchasing experience.

Full-year
YoY：104%

15,419
4,256
3,956

3,740

4,303

4,172

3,948
3,643

3,466

8,998

2,515
2,224

2,075 2,182

1Q
FY20

2Q

16,067• Broadcasting of Creema TV commercial from
July to August to make the service known.

• Completed Star Creator Finding Project, acollaboration project with fashion designer
Keita Maruyama, and sold it exclusively.
• “Area CC,” a new brand produced by Chiaki,
head of Hello Circus, was put on exclusivesale.

Copyright ©2022 CREEMA LTD.

3Q

4Q

1Q
FY21

2Q

3Q

4Q

1Q
FY22

2Q

3Q

4Q

FY20

FY21

FY22

PAGE 13

(1) Marketplace service: Impact of handmade masks in Creema GMV
Demand excluding mask-related products increased sharply in the previous year due to the impact of the COVID-19
pandemic. The core service portion continued to show strong growth, with 113% YoY growth for 4Q, and 118% for fullyear growth.
Creema GMV (Overall)

Creema GMV (Excluding mask-related sales)
Quarter

Unit: million yen

YoY：109%

Full-year
YoY：113%

3,136

3,759

3,985
3,522

3,187

3,759

3,867
2,515

2,515

1,122
4Q
1Q
FY20 FY21

604

279

2Q

3Q

196
4Q

Mask-related distribution

Copyright ©2022 CREEMA LTD.

187
1Q
FY22

120
2Q

80
3Q

71
4Q

15,607

4,231

4,231
3,133

YoY：118%

3,133

4Q
1Q
FY20 FY21

3,136

3,985

3,867

13,216

3,522

3,187

8,998

2Q

3Q

4Q

1Q
FY22

2Q

3Q

4Q

FY20

FY21

FY22

Other distribution

PAGE 14

[Ref.] Broadcasting of Creema TV commercial (2Q)
Broadcasting of a Creema TV commercial also in the summer of FY22 that was continuing from those aired in theprevious year-end to make the service known.

Copyright ©2022 CREEMA LTD.

PAGE 15

[Ref.] Area CC (3Q)
“Area CC,” a new brand produced by Chiaki, head of Hello Circus, was put on sale on Creema.

Copyright ©2022 CREEMA LTD.

PAGE 16

[Ref.] Christmas project (4Q)
During the Christmas season, a special website was set up to propose various values and to stimulate demand for
creators’ works.

Copyright ©2022 CREEMA LTD.

PAGE 17

(1) Marketplace service: Trends in marketplace-related KPIs
Both the number of listings and app downloads have been steady. The transaction unit price fell temporarily due to asudden increase in low unit-price mask-related sales in FY21, but FY22, with a significant decrease in mask-related
sales, marked a new high of the transaction unit price for the full year.
Number of listings

App DL

YoY：119%

Unit: ten thousand

Average transaction unit price (Japan)
YoY：112%

Unit: ten thousand

Transaction unit price hit arecord high due to a decrease in
the percentage of mask GMV

Unit：yen

5,255

1,253

1,348

5,086

1,120

5,110

4,948

1,131

973
837

866
654

694

4,410

529
Unit price temporarily fell due to anincrease in volume of low-priced
mask sales

FY18

FY19

Copyright ©2022 CREEMA LTD.

FY20

FY21

FY22

FY18

FY19

FY20

FY21

FY22

FY18

FY19

FY20

FY21

FY22

PAGE 18

(1) Marketplace: Sales trends
In connection with GMV growth, 4Q sales were 108% YoY (excluding masks: 112%) at 414 million yen. For the full year,
they were 103% YoY (excluding masks: 117%) at 1.5 billion yen, and continued to grow steadily, despite a reboundfrom mask demand and stay-at-home consumption in the previous fiscal year.
Quarter
Overall

Full-year
Excluding masks

YoY：108%

Unit: million yen

Overall

YoY：112%

YoY：103%

1,531
407

Excluding masks
YoY：117%

1,577

1,531

407
1,313

312

886
323
314

364

402

351 369

312 323 314

364

402

886

351 369

246

246
104

64

4Q 1Q 2Q
FY20 FY21

28

20

18

12

8

7

3Q

4Q

1Q 2Q
FY22

3Q

4Q

Mask-related sales

Copyright ©2022 CREEMA LTD.

4Q 1Q 2Q
FY20 FY21

3Q

4Q

1Q 2Q
FY22

3Q

4Q

FY20

FY21

FY22

FY20

FY21

FY22

Other sales

PAGE 19

Reposted: Business structure and “Creema economic zone”
Recent trends in platform services are covered from the next slide onward.
Creator empowerment business(1) Marketplace service (Japan/Taiwan/Hong Kong)• KPIs of our business model− Registered creators 23 thousand people− Registered works
13 million items− App downloads
12 million DL− GMV
16 billion/year(2) Platform services• Internal advertising(Advertising for creators)• External advertising (Advertising forcompanies and local governments)• Membership services(Daily remittance service, etc.)

Copyright ©2022 CREEMA LTD.

(Work listing)

Creators(Sellers)

Transaction
Revenue(Purchase)
Payment

Users(Buyers)

Transactionfees(3) Event and store services• Events− HandMade In Japan Fes’
(Tokyo Big Sight), etc.
• Store− Creema Store(4) New service group• Crowdfunding service− Creema SPRINGS• Lesson video platform− FANTIST• Other new services in preparation, etc.

PAGE 20

(2) Platform services: Main initiatives and sales trends
In addition to the significant acceleration of orders and deliveries of items in external advertising (advertising for companies
and local governments), users of internal advertising (advertising for creators) continued to be steady. As a result, sales of theplatform services for 4Q landed 146 million yen (YoY: 112%). The full-year sales landed at 561 million yen (130% YoY).

Main initiatives

Sales trends
Quarter• In external advertising(advertising forcompanies and local governments),
collaboration projects with major
manufacturers and various companies aswell as support in a digital shift in the
traditional craft industry continued, andorders/deliveries of local government PR
projects accelerated.
• In internal advertising (advertising for
creators), initiatives continued to be taken
in various campaigns, additions offunctions, etc. to promote the use ofadvertising services.

Unit: million yen

YoY：112%

YoY：130%
561

165
430

146
130

118

113
90
52

1Q
FY20

Copyright ©2022 CREEMA LTD.

Full-year

2Q

84

90

95

4Q

1Q
FY21

2Q

129
288

60

3Q

3Q

4Q

1Q
FY22

2Q

3Q

4Q

FY20

FY21

FY22

PAGE 21

[Ref.] Honda N Series, a commemorative collaboration project for the 10th anniversary of the launch of Honda N Series (4Q)

A collaboration with Creema to commemorate the 10th anniversary of the launch of the Honda N Series. A space decorated
with creators’ works featured four car models of the N series with special designs expressing the concept of “Life with N,” andvisitors could purchase their favorite items on the spot to experience this concept for themselves.

Copyright ©2022 CREEMA LTD.

PAGE 22

[Ref.] Creema Craft Caravan Kuriyama (4Q)
A variety of handmade works and sweets by creators with connections to Kuriyama Town in Hokkaido are introduced
online. The appeal of Kuriyama was presented from various points of view, such as the charm of the town according to
the Creema staff, interviews with creators from Kuriyama, and discussions with creators who have migrated there.

Copyright ©2022 CREEMA LTD.

PAGE 23

Reposted: Business structure and “Creema economic zone”
Recent trends in the event and store services are covered from the next slide onward.
Creator empowerment business(1) Marketplace service (Japan/Taiwan/Hong Kong)• KPIs of our business model− Registered creators 23 thousand people− Registered works
13 million items− App downloads
12 million DL− GMV
16 billion/year(2) Platform services• Internal advertising(Advertising for creators)• External advertising (Advertising forcompanies and local governments)• Membership services(Daily remittance service, etc.)

Copyright ©2022 CREEMA LTD.

(Work listing)

Creators(Sellers)

Transaction
Revenue(Purchase)
Payment

Users(Buyers)

Transactionfees(3) Event and store services• Events− HandMade In Japan Fes’
(Tokyo Big Sight), etc.
• Store− Creema Store(4) New service group• Crowdfunding service− Creema SPRINGS• Lesson video platform− FANTIST• Other new services in preparation, etc.

PAGE 24

(3) Event and store services: Main initiatives and sales trends
Due to the impact of COVID-19, the number of stores was reduced to one, which is two fewer than last year. However,with the partial resumption of large events, 4Q sales were 322% YoY and full-year grew to 155%. However, the numberof visitors to all large events was significantly lower than planned due to pre-emergency measures, and one scheduled
large event was cancelled. As in the previous year, the negative impact from COVID-19 was significant.
Main initiatives• In addition to the Creema YAMABIKO FES
2021 held in 3Q, the HandMade In Japan
Fes’ was held at Tokyo Big Sight in 4Q.

Sales trends
Quarter
Unit: million yen
336• However, both events overlapped with theperiod of pre-emergency measures.
✓ Creema Craft Party, which wasscheduled to take place in 3Q, wascancelled due to the state of
emergency.
• The number of stores was reduced fromthree last year to one by the end of thecurrent fiscal year due to restricted
operation from ongoing state of emergency
and pre-emergency measures.
• Both events and stores showed
performance improvements YoY, but plans
were missed as a result of the continued
negative impact of COVID-19.

Copyright ©2022 CREEMA LTD.

Full-year

118

YoY：322%

116

62

59
26

24

14

2Q

3Q

132

43

41

1Q
FY20

YoY：155%

4Q

1Q
FY21

2Q

3Q

19

4Q

13

13

1Q
FY22

2Q

3Q

85

4Q

FY20

FY21

FY22

PAGE 25

[Ref.] Creema YAMABIKO FES 2021 (3Q)
We held Creema YAMABIKO FES 2021 last November, an outdoor music and craft festival that consisted of an outdoor
concert stage to enable the audience to enjoy live music played by 12 bands with Mt. Fuji in the background; a craft
town, a sauna village and outdoor areas. The festival attracted over 10,000 visitors.

Copyright ©2022 CREEMA LTD.

PAGE 26

[Ref.] HandMade In Japan Fes’ (4Q)
HandMade in Japan Fes', Japan's largest creators' festival, was held at Tokyo Big Sight in January 2022 amid
restrictions imposed by pre-emergency measures. It had been about a year and a half since the previous event was
held

Copyright ©2022 CREEMA LTD.

PAGE 27

[Ref.] Closure of Creema Store Shinjuku (4Q)
Creema Store Shinjuku had been operating in Lumine Shinjuku Lumine 2 since 2014, but was closed on January 31,
2022. Business in the store field is currently continuing with only the one store of Creema Store Sapporo situated in
Sapporo Stellar Place.
Closure of Creema Store Shinjuku• Creema Store Shinjuku
started business in 2014, but
the store closed up on
January 31, 2022.
• We concluded that further
continuation of businesswould be risky due to factors
such as temporary closure of
the tenant building, shorter
business hours and adecrease in visiting
customers as COVID-19
spreads.
• Additionally, after we had run
business in Lumine Shinjuku,
which leads the trend oftenant buildings for fashion
stores, for many years, we
judged that the store hadcompleted the role of being a
showcase for our business.
Copyright ©2022 CREEMA LTD.

Future business expansion in the store field• Afterward, we will run the store business with
only the one store of Creema Store Sapporo
located in Sapporo Stellar Place.
• Continued operation of the Sapporo store looks
realistic since it is less exposed to the impact of
COVID-19 than in Tokyo due to its location.
• When COVID-19 comes to an end,
we plan to develop operations flexibly including
opening a new store in a new format byleveraging our know-how in running an offline
business format.

PAGE 28

Reposted: Business structure and “Creema economic zone”
Recent trends in the new service group are covered from the next slide onward.
Creator empowerment business(1) Marketplace service (Japan/Taiwan/Hong Kong)• KPIs of our business model− Registered creators 23 thousand people− Registered works
13 million items− App downloads
12 million DL− GMV
16 billion/year(2) Platform services• Internal advertising(Advertising for creators)• External advertising (Advertising forcompanies and local governments)• Membership services(Daily remittance service, etc.)

Copyright ©2022 CREEMA LTD.

(Work listing)

Creators(Sellers)

Transaction
Revenue(Purchase)
Payment

Users(Buyers)

Transactionfees(3) Event and store services• Events− HandMade In Japan Fes’
(Tokyo Big Sight), etc.
• Store− Creema Store(4) New service group• Crowdfunding service− Creema SPRINGS• Lesson video platform− FANTIST• Other new services in preparation, etc.

PAGE 29

(4) New service group: “Creema SPRINGS” & “FANTIST”
In our new service group, the website was relaunched in 2Q with the crowdfunding service Creema SPRINGS. In
addition, the lesson video platform FANTIST, which was added through M&A, has grown steadily with more than 1,400
lesson videos.
Crowdfunding：Creema SPRINGS

Lesson video platform: FANTISTThe Creema SPRINGS website was relaunched in August 2021, andcustomer base collaboration was started with the handmade
marketplace Creema, while expanding the types and number ofprojects.

We entered the EdTech field in FY22 1Q with the acquisition of
FANTIST, a lesson video platform. Currently, we offer lesson videos
mainly in the fields of art, handmade goods, and beauty, and thenumber of videos exceeds 1,400.

Copyright ©2022 CREEMA LTD.

PAGE 30

FY23 growth strategy

Copyright ©2022 CREEMA LTD.

PAGE 31

Creema’s challenges for further growth
Now when both the GMV of Creema and the financial performance of the entire company have reached record highs, twostrategic challenges for further growth will be increasing awareness of the handmade marketplace market and Creema andstrengthening the Creema economic zone by creating new services.

Current
condition• Since the company’s foundation, we have led the market as a pioneer of the industry with our core service Creema,
Japan’s first online handmade marketplace.
• In the FY22, the GMV of Creema exceeded 16 billion yen, a record high, further strengthening its position in thedomestic market.
• In addition, a variety of other services that support creators’ activities have also grown, and both sales and profits havereached record highs.
• We recognize that two strategic challenges for our future growth are increasing awareness of the handmade
market/services and strengthening the Creema economic zone by creating new services.

Strategic
challenges forfurther growth‒ A Increasing awareness of the handmade market/services✓ According to our recent survey, the market awareness of the handmade marketplace is far below that of fashion
e-commerce websites, flea market apps, etc.
✓ Creema itself is only about 55% as well-known in Japan as its major handmade marketplace peers.
✓ In this context, the GMV of Creema is one of the largest among handmade markets in Japan.
✓ To put it another way, if market and service awareness improves, we can realize our huge growth potential.
‒ B Strengthening the Creema economic zone by creating new services✓ We offer a wide range of services, from an online marketplace to advertising, the event and store services, andthe lesson video platform.
✓ We have linked a variety of services organically to enhance the convenience of the Creema economic zone as awhole and to establish the value and superiority of the business.
✓ In order to achieve non-continuous growth in the future, it is necessary to continue to create new services byutilizing our abundant strategic assets.

Copyright ©2022 CREEMA LTD.

PAGE 32

FY23 strategic policy
In order to respond to strategic challenges, we aim to further expand the Creema economic zone by simultaneously
implementing the further refinement of existing businesses, while focusing on both large-scale promotional
investments centered on TV commercials and the expansion and strengthening of the new service group.
Strategic challenges

FY23 strategic policy

Overview

Large-scale promotional investments
centered on TV commercials• In order to raise market and service awareness, a total of 1,090 million yen,
an increase of 630 million yen YoY, will be invested in a large-scale
promotion centered on TV commercials.
• By expanding recognition through these measures, we will expand thehandmade marketplace market and gain market share in other e-commercemarkets.

1

A
Increasing awareness of thehandmade market and services

B

2
Strengthening
the Creema economic zone
by creating new services

Expansion and strengtheningof the new service group• We will continue to invest in the already-released Creema SPRINGS andFANTIST to expand the business in earnest.
• In addition to the above, we will accelerate investment in the development of
the new service group using our resources, and launch new services
sequentially in FY23 and beyond.

+3

Further refinement of existing
services

Copyright ©2022 CREEMA LTD.

• Major investments will be made in systems and the infrastructure base in
FY23 to further improve the user experience for the medium- to long-term
growth of our core service, Creema.
• Including the above, we will continue to refine the three services that are
already the core of our business: marketplace, platform, and event and store
services (as mentioned later).
• The combination of increased awareness and the expansion of new services
will increase the value of customers in the Creema economic zone as awhole and further strengthen the value and superiority of the business.
PAGE 33

1 Large-scale promotional investments centered on TV commercials - TAM

The current market size of the domestic handmade marketplace is 40 billion yen. The potential market size isestimated to be about 303 billion yen, so it still seems feasible to expand. It is also possible to capture a wide range of
peripheral markets such as handmade materials, related media, and lesson fields.
Domestic creator empowerment market
Creator empowerment market(including advertising, crowdfunding, etc.)

Approx. 1.9 trillion yen
Hobby market, including handmade(sales of materials for production of works,
skills classes, media, events, etc.)

Handmade marketplace (potential)
Handmade marketplace (current)

Approx. 303 billion yen
Approx. 40 billion yen

Note: The creator empowerment market consists of business groups that provide necessary functions and services to achieve a society in which talented people in all genres, not only handmade creators, can play an active role. The market size of thehandmade marketplace (current) is calculated based on the GMV of Creema and minne from January to December 2021, assuming that the combined GMV share thereof is 80% of the total. As the value of the market size of the handmade marketplace
reported in the Hobby White Paper 2018 published by the Hobby Association of Japan approximates the total GMV of Creema and minne, these two services are considered to account for the majority of the market. However, since there are similar types ofmultiple businesses, we conservatively assume that the total GMV of these two services is 80% of the market. The market size of the handmade marketplace (potential) is calculated by multiplying the GMV per person of Etsy, a global handmade
marketplace founded in 2005 (calculated by the U.S. population of 332 million divided by the GMV of $6.95 billion in the U.S. in 2021) and the population of Japan. The figure was 303 billion yen (assuming $1 = 115 yen). The TAM is larger than that
disclosed at the time of listing, but this is because the GMV scale of domestic businesses and Etsy has grown significantly in response to the spread of COVID-19, supported by mask-related demand and stay-at-home consumption, and the growth rate of
the entire handmade marketplace market has increased as a result. The market size of the hobby market, including handmade products, was taken from the Hobby White Paper 2019.
Source: GMO Pepabo financial materials, Etsy financial materials, Hobby White Paper 2018 and 2019

Copyright ©2022 CREEMA LTD.

PAGE 34

1 Large-scale promotional investments centered on TV commercials - TAM expansion

The superior design, rarity, and originality of the creators’ works give Creema a competitive advantage, and if Creema
owns a category of work, it can access all categories and markets, including fashion e-commerce, interior, and ecommerce for sundries, etc., and may gain market share.
Creema user type classification
User typeFeatures• Prefer the style of a specific creator, andcontinuously purchase works fromseveral creators

Neutral layer• Purchased a creator’s work because it
was the best product after checking
various shops• The deciding factors behind purchasing
are qualities found in creators’ works but
not mass-produced products, such as
excellent design, rarity, and originality→ These features mean that Creema is
not limited to the handmade market,
but can access a wider range ofmarkets and categories

Accessible market

Clothing and clothing
accessories, etc.
CreemaFood, beverages, andalcoholic beverages

CreemaHousehold goods, furniture,and interior
Creema…

Fan bases of specificcreators

Categories offered by
Creema…

Handmade lovers• Users who like to purchase creators’
works• Purchase various works from multiple
creators

Concept image of market expansibility of creators’ works• By improving the value
provided, aim to further
increase participating
creators and registeredworks from the current
230,000 and 13 million,
respectively.
• Also raise awareness bycontinuing PR planningand promotional
measures.
• Through these efforts,
encourage customers tothink of Creema when
they consider purchasing
products in all categories
offered by Creema, anduse the value provided bycreators’ works to expand
our market share.

In order to maximize the market potential of creators’ works, it is necessary to expand the awareness of the handmade marketplace Creema,
and we believe that large-scale promotional investments, including mass advertising centered on TV commercials, are essential.

Copyright ©2022 CREEMA LTD.

PAGE 35

1 Large-scale promotional investments centered on TV commercials - large investments to expand TAM

By making large-scale promotional investments centered on TV commercials, the company aims to expand thehandmade marketplace market itself and increase the service awareness of Creema, thereby further capturing
peripheral markets by leveraging the high customer value and expanded awareness of creators’ works.
Large-scale promotions centered on TV commercials• High quality works that are produced by professional and semiprofessional creators have an appeal beyond handmade lovers.
• We intend to expand the handmade marketplace market and ourmarket share in other peripheral markets by investing heavily inadvertising centered on TV commercials.

Increase in promotion expenses• The company plans to spend a total of 1,090 million yen, mainly on
TV commercials, by increasing promotion expenses by 630 million
YoY. This major investment will further accelerate the growth of thebusiness.
Unit: million yen

Copyright ©2022 CREEMA LTD.

PAGE 36

2 Expansion and strengthening of the new service group - Investment policy for new services

In parallel with the promotion strengthening, we will proceed from areas synergistic with the platform built through thecreator empowerment business. After that, the competitive advantage will be further strengthened by the cooperation
between old and new services, and the Creema economic zone will be expanded.
“Creema economic zone” expansion process

Business expansion
through the high customer
value

Build a solid platform and afinancial base throughbusiness expansion

Expanding the Creema
economic zone
≈ Strengthening thecompetitive advantage
Improving customer value
throughout the“Creema economic zone”
by strengthening acollaboration between old
and new services

Copyright ©2022 CREEMA LTD.

Sequential launch of newservices utilizing theplatform

Creema platform infrastructureand new services① Creator base centered on professionals andsemi-professionals② A huge user base of over 20-30 million visits
per month, mainly by women in their 20s to
40s③ A website / app as a medium withtransmission power and community base that
goes beyond “just an EC website”④ Business development ability that has createdvarious services by utilizing the platform

Utilizing a highly original platform, we will actively
develop new services in other areas while
focusing on areas related to creator activity
support.

PAGE 37

2 Expansion and strengthening of the new service group - Strengthening policy

While strengthening the already-released crowdfunding service Creema SPRINGS and the lesson video platform
FANTIST, preparations will be made to utilize our assets in creating the new service group sequentially in FY23 andbeyond.
Strengthening already-released new services
Crowdfunding：Creema SPRINGS

Further creation of new services

Lesson video platform：FANTIST• Strengthen the sales structure to ensure astable supply of high-quality projects on theplatform.

• At the end of 2021, we began offeringcourse lesson videos that systematicallyteach students the necessary skills.

• Development and examination of various
new services with high synergy with
Creema is underway.

• In addition, we will flexibly make use of
Creema to expand the number of users inorder to ensure funding for the project
owners.

• We will continue to expand the number of
one-off lesson videos and course lesson
videos, and aim to achieve a platform that
attracts the most creative lesson videos inJapan.

• We will continue to invest in launching newservices sequentially in FY23 and beyond.

Copyright ©2022 CREEMA LTD.

PAGE 38

2 Expansion and strengthening of the new service group - Concept image of enhancement

In FY22, we made our much-awaited entry into the EdTech field. In FY23 and beyond, at least one new service will be
released in each fiscal year, and the value of the Creema economic zone as a whole will be enhanced through theintroduction of multi-layer services.
Past
Before FY20
Starting with the C2C
marketplace, formed thebasis of the creator
empowerment business.

Future

FY21

FY22

FY23

After FY24

Released the crowdfunding
service Creema SPRINGS
to help creators get funding.

Entered the EdTech fieldwith the acquisition of thelesson video platform
FANTIST.

Planning to release a newservice utilizing our strategic
assets.

Planning to release a largescale service to support
creators.
New Service (2)New Service (1)New Service (1)Lesson video platform
Lesson video platform
Crowdfunding
Crowdfunding
Crowdfunding
Ad network(Internal advertising)Media(External advertising)
Offline Biz(Event and store services)

Ad network(Internal advertising)Media(External advertising)
Offline Biz(Event and store services)

C to C Marketplace

C to C Marketplace

Copyright ©2022 CREEMA LTD.

Ad network(Internal advertising)

Ad network(Internal advertising)

Lesson video platform
Crowdfunding
Ad network(Internal advertising)Media(External advertising)Media(External advertising)

Offline Biz(Event and store services)

Offline Biz(Event and store services)

Offline Biz(Event and store services)

C to C Marketplace

C to C Marketplace

C to C Marketplace

Media(External advertising)

PAGE 39

3 Further refinement of existing services

While focusing on the aforementioned large-scale promotional investments centered on TV commercials and the
expansion and strengthening of the new service group, we will also invest in large-scale systems and infrastructure tofurther improve the user experience, and aim for further growth by refining services in the three existing fields.
Marketplace service

Platform services

Event and store services• Increase awareness and strengthen the userbase through large promotions, including the
aforementioned TV commercials.

• For external advertising, we will strengthen
receiving orders for projects to revitalize
regional economies, which continue to growyear by year, and for collaboration projects
that only we can implement.

• For the store service, we will rebuild Creema
Store Sapporo in light of the easing of the
COVID-19 pandemic.

• Maximize user satisfaction through productrefinement, including improved searchfunctions and UI.
• Implement large-scale system andinfrastructure investments to ensure stable
service operations and improve user
experience over the medium to long term.
Copyright ©2022 CREEMA LTD.

• For internal advertising, we will achieve further
growth by expanding the number of users andimproving the effectiveness through refining
the UI and logic.

• For events, this year’s HandMade In Japan
Fes’ and Creema YAMABIKO FES will be
returned to their normal scale. At the sametime, we will continue to stimulate excitementin the Japanese creative scene with a view tolaunching more new events.

PAGE 40

FY23 earnings forecasts

Copyright ©2022 CREEMA LTD.

PAGE 41

GMV Forecast in FY23
For FY23, we aim to achieve a 119% YoY growth in Creema’s GMV, exceeding 19.1 billion yen.

Unit: ten million yen

YoY：119%

Surging demand for maskrelated products and stayat-home consumption led
to significant growth

Steady growth despite arebound from the surge
in mask demand in theprevious fiscal year

Implement various measures,
including large-scale
promotions, to accelerate
growth in FY23 and beyond

19,16915,41916,067FY21(Results)

FY22(Results)

8,998

FY20
(Results)

Copyright ©2022 CREEMA LTD.

FY23
(Forecast)

FY24(Forecast)

FY25(Forecast)

PAGE 42

Consolidated sales forecast in FY23
In addition to strong growth in the sales of the online service group such as marketplace and platform services
through large-scale promotions and various measures, based on the certain recovery of large events, sales for FY23
are projected at 2.8 billion yen, representing 125% YoY growth.
Unit: million yen

YoY：125%

2,872
2,294
2,062

1,517

FY20
(Results)

Copyright ©2022 CREEMA LTD.

FY21
(Results)

FY23(Results)

FY23(Forecast)

FY24(Forecast)

FY25(Forecast)

PAGE 43

Forecast of consolidated SG&A expenses for FY23
In addition to large-scale promotion investment, including mass advertising, and temporary expansion of system andinfrastructure investment for medium- to long-term growth, personnel and outsourcing expenses for creating new
businesses for the purpose of multi-layer services will increase.
Unit: million yen

2,655：Others：Promotion expenses：Outsourcing expenses：Personnel expenses

649

1,831

1,897

789

864

1,090

522

460

275

79

91

355

439

481

FY20
(Results)

FY21(Results)

FY22(Results)

1,357

Large-scale promotional investments centered on TV
commercials led to a significant YoY increase in promotion
expenses.

611

322

67

Copyright ©2022 CREEMA LTD.

638

FY23
(Forecast)Partial temporary increases in outsourcing and personnel
expenses due to the expansion and strengthening of the newservice group and an increase in investment in existing systems
and infrastructure for medium- to long-term growth.

FY24(Forecast)

FY25(Forecast)

PAGE 44Forecast of consolidated operating income for FY23
For FY23, operating income will be 144% YoY, or 465 million yen, if investment is kept at the normal level. However, in order tomake major investments in the aforementioned large-scale promotion, development investment, new business development,
etc., we plan to land at -447 million yen. We aim to maximize medium- to long-term growth and cash flow generation capacity
by making major investment during this period.
Major investments to grow existing businesses, including Creema.
• Temporary increase in advertising expenses, including TV
commercials• Temporary increase in large-scale system and infrastructure
investments to ensure stable service operations and improveuser experience over the medium to long term

YoY：144%

Unit: million yen

YoY：143%

465
322
226
602

FY21 (Results)

FY22 (Results)

FY23 (Forecast)
Before reflecting theinvestment amountIf the normal level of investment is maintained,
operating income for the FY23 will grow 144% YoY
at 465 million yen.

Large-scale investment to expand and strengthen
the new service group.
• Temporary increase in personnel andoutsourcing expenses

310

FY23 (Forecast)
After reflecting theinvestment amount-447

In order to maximize medium- to long-term growth and cash flow generation
capacity, operating income for FY23 will be set at a deficit of 447 million yen due
to major investments.

Copyright ©2022 CREEMA LTD.

PAGE 45

Summary of FY23 earnings forecast
We aim to achieve FY23 sales of 2.8 billion yen, which is 125% YoY. In line with the implementation of large-scale
strategic investments, all profit items below operating income for the next fiscal year will be temporarily in the red.
Through this large-scale growth investment, we hope to gain a foothold in further growth in the future.
Company-wide earnings forecasts
Unit: million yen

Sales

Sales forecasts by major services(Ref.) FY22

FY23

YoY

2,294

2,872

125%

Sales cost

74

663

887%

Gross profit

2,219

2,208

99%

SG&A

1,897

2,655

140%

Operating profit

322

-447

-769

Ordinary profit

363

-454

-818

Net income

Copyright ©2022 CREEMA LTD.

230

-376

-606

Unit: million yen
Continued strong
growth from theprevious year
Application of newrevenue recognition
standards(see below)

Marketplace

1,867
YoY：118%

Platform

676
YoY：120%

Event and store

252
YoY：190%

New service
group

75
YoY：329%

Strengthening
upfront investment
for future growth

PAGE 46Effect of the application of new revenue recognition standards
Beginning in FY23, we will incorporate a portion of SG&A expenses into sales and sales cost due to the application of the new revenue
recognition standards. As a result, the sales cost will explode, but it will only shift from SG&A expenses as follows, with no effectwhatsoever on our business profitability.
Major changes due to the application of new revenue recognition standards

SG&A• Part of the transfer fee, which was previously treated as negative
processing of the payment fee, is included in sales as aconsideration for our provision of services.
• Settlement and payment fees are included in the cost.
• As a result, SG&A decreased by 492 million yen compared to before
the application.

Sales• The negative processing of the payment fee for SG&A is included insales.
• As a result, sales increased by 37 million yen compared to before
the application.

Sales cost

• Settlement and payment fees for SG&A are included in the cost.
• As a result, cost increased by 529 million yen compared to before
the application.

Gross profit• Gross profit decreased by 492 million yen compared to before theapplication due to an increase of 37 million yen in sales and anincrease of 529 million yen in costs.

Copyright ©2022 CREEMA LTD.

Effect of application on financial figures

PAGE 47

Our policy on ESG
We will continue to work on various ESG issues in order to realize a fair society in which talents and abilities are duly
evaluated and people can live and work in their own way.
Bring about a fair society where talented people
and hard workers are justly appreciated• The word “Creema” was created from the term “Creators’ New Market” in pursuitof the mission to build a fair world where genuinely good products will not go
unnoticed.
• Creema is making trailblazing efforts to bring about a fair society where thetalents and abilities of people are justly evaluated and people can be living andworking in their own way in a world of creation where talent and hard work do notdirectly lead to opportunities and appreciation.

Copyright ©2022 CREEMA LTD.

Regional revitalization and development through producing goods• Collaboration between quality materials and creators with unique creativity fromacross the country “Nationwide Discovery of Fantastic Goods” is ongoing with theaim of regional development by introducing the attractions of places via thecraftworks of creators.
• Additionally, we are working on regional revitalization and development pivoting
on producing goods through measures such as Creema Craft Caravan, in which
we visit towns with the theme of producing goods across the country and open amarket with local citizens.

PAGE 48

[Ref.] Case studies on ESG initiatives
We commercialized 25 upcycled items by inviting Creema creators to come up with craftworks using selvedge (clothedges), which is industrial waste from the weaving process of Enshu textile, a local industry of the Enshu region,
Shizuoka Prefecture. Going forward, we will remain determined to bring about a sustainable world where the power of
producing goods creates new value from waste.

Copyright ©2022 CREEMA LTD.

PAGE 49

ESGに係る当社取り組み事例
静岡県・遠州地方の地場産業である「遠州織物」の製織工程で生じる産業廃棄物 「布耳（繊維くず）」を用いた作品を「Creema」クリエイ
ターから募集し、アップサイクル作品25点を商品化しました。今後も「ものづくりの力によって廃材に新たな価値を生み出す」といったサ
ステナブルな世界の実現を目指します。

Appendix

Copyright ©2022 CREEMA LTD.

PAGE 50

[Ref.] Take rate trends
In FY21, GMV increased due to the spread of COVID-19, but the sales of the event and store services fell sharply,
resulting in a significant decrease in the take rate. FY22 is on a recovery trend with continued stable platform growthand some recovery for the event and store services. In FY23 and beyond, the take rate will gradually improve as the
new service group is added sequentially in addition to the stable growth of platform and the event and store services.
16.9%
14.6%
14.3%
13.4%
12.4%
The take rate temporarily declined
due to a significant decline in salesof the event and store services
and a significant growth in GMV.

FY18
(Results)

FY19(Results)

FY20(Results)

FY21(Results)

As the effects of COVID-19 gradually ease,
the take rate has been increasingly
improving to the level it should be.

FY22(Results)

FY23(Forecast)

FY24(Forecast)

Note: The take rate is calculated using the GMV of the marketplace service as the denominator and the sales of all services as the numerator.
Copyright ©2022 CREEMA LTD.

PAGE 51

Changes in the number of employees (including part-time employees)
There has been no significant change in the number of employees in the past year.

Unit: people

75

1Q
FY20

98

101

3Q

4Q

95

93

94

95

96

1Q
FY21

2Q

3Q

4Q

1Q
FY22

100

102

2Q

3Q

96

79

2Q

4Q

Note: Employees are the total of regular employees, contract employees, and part-time employees, excluding executives.
Copyright ©2022 CREEMA LTD.

PAGE 52