Financial Results Briefing Report for 2Q, FY2022
CREEMA LTD. (TSE Mothers: 4017)
October 15, 2021

Copyright ©2021 CREEMA LTD.

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MISSIONVISION

Make people and the world
happy by accomplishing
our work with love

A new big conglomerateleading the 21st century

Corporate Statement

L e t ’s c r e a t e a h u g e r o u n d e r a !

Copyright ©2021 CREEMA LTD.

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Business structure and “Creema economic zone”
We are expanding our business into various service areas that support the activities of creators withJapan's largest handmade marketplace “Creema” as the main axis, and we are striving to expand the“Creema economic zone”, where all services are dynamically linked.
Creator empowerment business① Marketplace service (Japan / Taiwan / Hong Kong)• KPIs of our business model− Registered creators
220 thousand people− Registered works
12 million items− App downloads
11 million DL− GMV (FY22 forecast) 16.2 billion/year② Platform services• Internal advertising(Advertising for creators)• External advertising (Advertising forcompanies and local governments)• Membership services(Daily remittance service, etc.)

Copyright ©2021 CREEMA LTD.

Creators(Sellers)(Work listing)Transaction
Revenue(Purchase)
Payment

Users(Buyers)

Transactionfees③ Events and Stores④ New service group• Events− HandMade In Japan Fes’
(Tokyo Big Sight), etc.
• Stores− Creema Store (Shinjuku, Sapporo)• Crowdfunding service− Creema SPRINGS• Fulfillment service• Lesson video platform− FANTIST Co., Ltd.
• Other new services in preparation, etc.

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2Q, FY2022 Company-wide results

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[Company-wide] 2Q and First Half Results
2Q sales landed at 503 million yen (98% YoY) and operating profit at 39 million yen. Sales for the cumulative first half landed at
1.1 billion yen (107% YoY) and operating profit at 187 million yen (76% YoY). Operating profit margin was 16.9%.
Consolidated Income Statement

Topics２Q

First Half

Unit: million yen
Results

YoY

Results

YoY(Ref.) GMV

3,643

97％

7,816

98％

Sales

503

98％

1,109

107％

Sales Cost

1

130％

8

541％

Gross profit

502

98％

1,100

106％

SG&A

462

119％

912

116％

Operating profit

39

31％

187

76％

Ordinary Profit

36

30％

184

76％

Net income

17

15％

146

62％

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[2Q]
• Sales were 98% YoY in reaction to the surge in demand
which arose in the previous fiscal year due to COVID19.
• SG&A expenses were 119% YoY as a result of
expanding medium- to long-term strategic growthinvestments as planned, which include TV commercial
broadcasting and new business investments.
• As a result, operating profit was 31% YoY.
[First Half]• Sales grew 107% YoY. Although sales of offline-area
services (events and stores) decreased significantly,
sales of online-area services (platform) increased morethan such decrease.
• SG&A expenses were 116% YoY mainly due to TV
commercials, large-scale development investments,
and new business investments.
• As a result, operating profit for the first half was 76%
YoY.
• The progress rate vs. the operating profit target for
FY22 is 60% as of 2Q, going smoothly to plan.
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[Company-wide] Trends in consolidated sales
2Q sales landed at 98% YoY in reaction to the temporary sharp increase in sales in the previous fiscal year from the surge indemand for “handmade masks” and “stay-at-home consumption” caused by the spread of COVID-19. On the other hand, due to
1Q growth, sales for the first half were 107% YoY. If excluding the impact of mask-related sales, however, 2Q sales and sales
for the first half grew steadily at 109% YoY and 124% YoY, respectively.
Sales trends
Quarter
Unit: million yen

Sales temporarily increased
sharply in the previous fiscal
year due to a surge in demandfor “handmade masks” and“stay-at-home consumption”.

523

YoY: 98% *Excluding masks: 109%

386

1Q
FY20

2Q

YoY: 107% *Excluding masks: 124%

1,037

606
514

448
365

First Half

485

539

503
752

317

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3Q

1,109

4Q

1Q
FY21

2Q

In addition to the continued demand for
handmade masks, stay-at-homeconsumption increased significantly
more than 1Q.

3Q

4Q

1Q
FY22

2Q

First Half
FY20

First Half
FY21

Sales were 98% YoY in reaction to the sudden increase in masks
and stay-at-home consumption in the previous fiscal year.
Excluding the impact of mask-related sales, however, steady
growth continued (as described later)

First Half
FY22

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[Ref.] Sales trends for the marketplace service
In the marketplace service, 2Q mask-related product sales decreased more than 51 million yen YoY, resulting in a decline in thegrowth rate of over 10% in 2Q company-wide sales. As for the cumulative first half, sales decreased by more than 138 million
yen YoY. If excluding the impact of mask-related sales, both the marketplace service and company-wide sales continue to growsteadily (details as described later).
2Q mask-related sales YoY: △51 million yen /2Q sales excluding mask-related sales YoY: +28 million yen

Unit: million yen

312

323

314

364

402

28
3Q

20
4Q

18
1Q
FY22

351

246

4Q
FY20

104

64

1Q
FY21

2Q

12
2Q

First half mask-related sales YoY: △138 million yen /First half sales excluding mask-related sales YoY: +118 million yen
Sales of mask-related marketplace service

Sales of other marketplace service

Note: Mask-related sales refers to those associated with sales from trading of works that contain the word “mask” in the product names. Such works are among those that completed trade during a relevant
period under Creema’s categories other than food.
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[Company-wide] Changes in consolidated SG & A expenses
Meanwhile, 2Q SG&A expenses continued to be incurred as planned for medium- to long-term growth. The expenses were119% YoY due to an increase in promotion expenses, system development expenses, personnel expenses, new business
investments and others. As for the first half, SG&A was 116% YoY.
Changes in SG&A expenses
QuarterFirst Half

Unit: million yen

YoY: 119%

YoY: 116%: Others: Promotion expenses: Personnel expenses

263

450
404

173

175

161

168

201

202

228

201

222

349

249
96

81

96

227
117

110

174

84

67

79

73

84

93

103

101

103

110

122

104

130

158

1Q
FY20

2Q

3Q

4Q

1Q
FY21

2Q

3Q

4Q

1Q
FY22

2Q

First Half
FY20

90

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177

205

234

First Half
FY21

First Half
FY22
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[Company-wide] Changes in consolidated operating income
2Q operating profit landed at 39 million yen (31% YoY) due to a combination of a reaction to the temporary rapid growth causedby the impact of COVID-19 in the previous year and upfront investments made for medium- to long-term growth. As for the first
half, operating profit landed at 187 million yen (76% YoY).
Trends in operating profit
QuarterFirst Half
YoY: 31%

Unit: million yen

YoY: 76%
248
148

122

187

125
75

58

39

▲2

6
1Q
FY20

2Q

3Q

4Q

1Q
FY21

2Q

3Q

4Q

▲ 98
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1Q
FY22

2Q

First Half
FY20

First Half
FY21

First Half
FY22

• Reaction to the temporary rapid growth in sales due tothe impact of COVID-19 in the previous fiscal year
• Upfront investments for medium- to long-term growth
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9Earnings progress
A bottoming out in 2Q and a gradual increase in 3Q and 4Q is expected under the business plan. Progress regarding theearnings forecast is following a steady trend in all key indicators. No change is made from the plan set at the beginning of theterm, and steady growth will also be made in the second half.
Key financial indicators

Progress as of 2Q against full-year earnings forecast (million yen)
Full-year earnings
forecast

GMV

2Q results

16,2797,816⇒ Progress rate (as of 2Q): 48%

Full-year earnings
forecast

Sales

2Q results

2,446
1,109
⇒ Progress rate (as of 2Q): 45%

Full-year earnings
forecast

Operating profit

2Q results

315
187⇒ Progress rate (as of 2Q): 60%

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Topics• In the first half, both GMV and sales
progressed in line with the forecast.
✓ In 2Q, the GMV of the marketplace
service is planned to bottom out.
✓ From 3Q onward, the GMV of themarketplace service will enter agrowth trend and large-scale
events, etc. will be held.
Accordingly, sales are expected to
grow further in the second half.
• Operating profit temporarily saw a slightly
favorable variance due to a decision
made not to strategically use a portion of
the budget in 1Q.
• Progress is favorable for all key
indicators, including GMV, sales, andoperating profit.
No change is made from the plan set atthe beginning of the term, and will further
grow in the second half.
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[Company-wide] Balance sheet status
2Q FY2022(Ref.) 1Q FY2022(Ref.) QoQ

3,530

3,531

100％

Cash and cash equivalents

2,915

2,924

100％

Accounts receivable

591

584

101％

227

203

112％

Deferred tax assets

64

66

97％

Security deposits

51

52

99％

Goodwill

45

49

92％

3,758

3,735

101％

2,039

2,227

92％

Withholdings / Funds payable and amounts
due to creators

1,466

1,648

89％

Loans repayable within one year

170

277

62％

482

296

163％

472

286

165％

2,522

2,524

100％

Capital stock

536

532

101％

Capital surplus

1,957

1,953

100％

Retained Earnings-1,256-1,274

－

1,235

1,211

102％

Subject (Unit: Million Yen)
Current Assets

Fixed assets

Total assets
Current Liabilities

Fixed liabilities
Long-term liabilities
Total liabilities

Total net assets
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PAGE 11

FY2022 Performance by major services

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PAGE 12

[Marketplace] Main initiatives and Creema GMV trends
2Q GMV landed at 3.6 billion yen, slightly below that of the previous fiscal year, as a reaction to the temporary surge in demandfor handmade masks and stay-at-home consumption. If excluding the mask-related GMV, however, 2Q GMV and GMV for the
first half grew steadily at 112% YoY and 120% YoY, respectively.

Main initiatives• Deployment of various merchandising
campaign measures such as special
feature articles capturing trends like
Father's Day, and special programs
including “Summer grab bags
(fukubukuro)”.
• Enhancement of Creema products
focusing on a better user interface andmeasures to improve convenience forcreators.

Creema GMV trends
Quarter

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YoY: 97%*GMV excluding masks YoY: 112%

Unit: million yen

4,256
3,956

3,740

7,997

2,075 2,182

1Q
FY20

2Q

3Q

4Q

7,816

3,643

2,515
2,224

YoY: 98%*GMV excluding masks YoY: 120%

4,172

3,466

• Strengthening of systems and support
structure to provide a safer and moresecure purchasing experience.
• Broadcasting of Creema TV
commercial from July to August to get
the service known.

First Half

4,300

1Q
FY21

2Q

3Q

4Q

1Q
FY22

2Q

First Half First Half First Half
FY20
FY21
FY22
PAGE 13

[Ref.] Impact of handmade masks in Creema GMV
If excluding the mask-related GMV, 2Q GMV and GMV for the first half increased steadily at 112% YoY and 120% YoY,
respectively. The substantial scale of the service continues to grow significantly.

Creema GMV (overall)
Unit: million yen

Creema GMV (excluding mask-related sales)

GMV (overall) YoY: 97%

GMV (excluding mask-related sales) YoY: 112%

3,133
3,136

3,187

3,759

3,985

3,522

2,515

2,515
1,122

4Q
FY20

604

279

2Q

3Q

1Q
FY21

Mask-related GMV

196
4Q

187
1Q
FY22

120
2Q

4Q
FY20

3,133

3,136

3,187

1Q
FY21

2Q

3Q

3,759

3,985

4Q

1Q
FY22

3,522

2Q

Other GMV

Note: The mask-related GMV refers to the GMV of traded products that contain the word “mask” in the titles of works on Creema. Such works are among those traded during a relevant period under
Creema’s categories other than food. In regard to the mask-related GMV disclosed on April 14, since it was calculated based on titles of works extracted at the point when the disclosed material was
prepared and not when works were traded, in some cases, titles have been changed from when traded. By revising the extraction method in detail this time, the total annual mask-related GMV in FY21
increased slightly more than the mask-related GMV disclosed on April 14, while the GMV excluding mask-related products in FY22 disclosed on July 13 decreased slightly.
Copyright ©2021 CREEMA LTD.

PAGE 14

[Marketplace] Sales trends
2Q overall sales were 364 million yen (94% YoY), but if excluding mask-related products, 109% YoY. Sales for the first half were
98% YoY, but if excluding mask-related products likewise, 119% YoY. Sales continue to grow strongly in the main.
Sales trends
QuarterFirst Half

OverallExcluding masks

YoY: 94%

Unit: million yen

Overall

YoY: 109%

Excluding masks

YoY: 98%

804

YoY: 119%

784

754
635

312
323
314

364

402

351
312

323

314

4Q
1Q
FY20 FY21

2Q

3Q

364

402

351

427

427

246

246
104
4Q
1Q
FY20 FY21

64
2Q

28

20

3Q

4Q

Mask-related sales

18
1Q
FY22

Other sales

12
2Q

4Q

1Q
FY22

2Q

First
Half
FY20

First
Half
FY21

First
Half
FY22

First
Half
FY20

First
Half
FY21

First
Half
FY22

Note: Mask-related sales refers to those associated with sales from trading of works that contain the word “mask” in their title. Such works are among those that completed trade during a relevant period
under Creema’s categories other than food.
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PAGE 15

[Ref.] Development of various merchandising campaign measures
220,000 professional / semi-professional creators and 12 million fascinating pieces of work are introduced
from various aspects.

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PAGE 16

[Ref.] Broadcasting of Creema TV commercial
Broadcasting of Creema TV commercial also in FY22 from the end of the previous fiscal year to get theservice known.

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[Ref.] Trends in marketplace-related KPIs
Both the number of listings and app downloads have been steady. While the transaction unit price fell temporarily due to asudden increase in low unit-price mask-related sales in FY21, the transaction unit price has recovered in FY22 with thesignificant decrease in mask-related sales. Unit price in 2Q was highest ever.
Number of listings

App DL

Unit: 10,000

Average transaction unit price (Japan)

Unit: 10,000

Unit: Yen

1,245
1,131

5,161

1,186

1,189

The proportion of mask sales
to total sales has declined,
and unit price has recovered

1,120 1,154

4,948

5,086

5,110

5,078

973
866

837

694

4,732

654

529

4,410

467

Unit price temporarily fell
due to an increase in volume
of low-priced mask sales

357

FY17

FY18

FY19

FY20

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FY21

1Q
FY22

2Q

FY17

FY18

FY19

FY20

FY21

1Q
FY22

2Q

FY17 FY18 FY19 FY20 FY21

1Q
FY22

2Q
PAGE 18

[ Platform] Main initiatives and sales trends
In addition to the significant acceleration of orders and deliveries of items in external advertising (advertising for companies andlocal governments), users of internal advertising (advertising for creators) continued to be steady. As a result, sales of theplatform service landed at 118 million yen (124% YoY). Sales for the first half landed at 284 million yen (152% YoY).

Main initiatives• In external advertising(advertising forcompanies and local governments),
collaboration projects with major
manufacturers and various companies
as well 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 betaken in various campaigns, additionsof functions, etc. to promote the use ofadvertising services.

Sales trends
Quarter
Unit: million yen

YoY: 124%

YoY: 152%
284

165
130
90
52

2Q

84

90

95

4Q

1Q
FY21

2Q

186

118

113

1Q
FY20
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First Half

143

60

3Q

3Q

4Q

1Q
FY22

2Q

First
Half
FY20

First
Half
FY21

First
Half
FY22
PAGE 19

[Ref.] Example of external advertising - Idea-seeking Contest
To further have the attractiveness of Kumamoto Prefecture's traditional craftworks become widely known, an idea-seeking
contest was held for “Creema,” inviting creators who will create works together and share ideas on product development andimprovement.

Copyright ©2021 CREEMA LTD.

PAGE 20

[Events & stores] Main initiatives and sales trends
No events were held in 2Q. As for stores, in addition to the limitation on the number of operating days and hours due to thedeclaration of a state of emergency, etc., a two-store-base operation system was taken, three stores less than the previous
fiscal year. As a result, 2Q sales were 52% YoY and sales for the first half were 66% YoY.

Main initiatives• Due to the impact of COVID-19, eventswere again not held in FY22 as in theprevious fiscal year. Large-scale
events are scheduled to be held from
3Q (November) of FY22.
• Store performance fell below that ofthe previous fiscal year. This was dueto the limitation of operations imposedfrom the continued declaration of astate of emergency/priority preventive
measures, in addition to the two-storebase system that was three less than
the number in the same period of theprevious year.

Sales trends
Quarter
Unit: million yen
178
118

116
YoY: 52%

YoY: 66%

59

41
26
14
1Q
FY20

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First Half

2Q

3Q

4Q

1Q
FY21

2Q

24

3Q

41

19

4Q

13

13

1Q
FY22

2Q

27

First
Half
FY20

First
Half
FY21

First
Half
FY22
PAGE 21

Announcement: Large-scale events will be held successively from 3Q
Outdoor music and craft festival “Creema YAMABIKO FES 2021” will be held at Gotemba Kogen from November
6 to 7, 2021. Cultural aspects such as craft city, sauna village, and outdoor areas will all gather mainly around theoutdoor music stage where live performances of 12 groups can be enjoyed against the backdrop of Mt. Fuji.

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PAGE 22

[Ref.] New service group
In addition to the crowdfunding service and lesson video platform, we intend to successively add newservices in the future to promote the construction of the “Creema economic zone” while increasing value
provided to creators and users.
Services released to dateServices to be released in the future

Crowdfunding

Lesson video platform, etc.

Introduction of other new services

Utilizing the huge membership base of"Creema" , which supports theactivities of creators, we operate aplatform where creators can raise
funds.

We entered into the EdTech via M&A
with FANTIST Co., Ltd, providing
creator's lesson video platform, andstarted offering fulfillment service fromphoto-taking to shipping.

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

1) FANTIST results will be reflected in the consolidated income statement from 2Q of FY22 (1Q balance sheet has been consolidated).
Copyright ©2021 CREEMA LTD.

PAGE 23

[Ref.] Introduction of Creema SPRINGS Project - ENLIGHT2021
Through ENLIGHT2021, a project implemented by a crowdfunding service Creema SPRINGS tosimultaneously exhibit public arts nationwide, public arts by Creema creators are being exhibited
successively in Fukuoka Prefecture (Itoshima), Kanagawa Prefecture (Yokohama), Toyama Prefecture(Toyama), etc.

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PAGE 24Others: SDGs project - Sales of upcycle works using “nunomimi”, waste thread generated fromweaving process
Enshu textile is a local industry in the Enshu region of Shizuoka Prefecture. Creema creators were asked to submit works using
nunomimi (waste thread) which is industrial waste generated from the weaving process of Enshu textiles, and 25 upcycle works
were commercialized. We will continuously aim to realize a sustainable world where new value will be created from scrap
through the power of crafting.

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PAGE 25

FY2022 Forecast

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PAGE 26

Medium-term management policy
In FY22, we will utilize the platform base expanded and strengthened in FY21 and the current financial
basis, achieve further growth of existing sectors, and expand our new service group.
Company-wide• Utilizing the platform which was significantly enhanced in FY21, realize further growth of existing businesses, and expand our new
service group and make strategic investments for non-consecutive growth in the medium- to long term.
• In FY22, we aim for sales of 2.4 billion yen (YoY: 119%) and operating income of 315 million yen (YoY: 140%).

Marketplace• Polishing the system and products of our main service “Creema”.
• Polishing various merchandising and campaign measures.
• Driving overall growth in the “Creema economic zone” by strengthening a collaboration with Hello Circus, crowdfunding and otherservices.

Platform• In Internal advertising (advertising for creators), we plan to evolve it into a more valuable advertising service by continuing function
development and campaign measures.
• In External advertising (advertising for companies and local governments), we are strengthening proposals centered on our own
online advertising products such as tie-up advertorials and creator collaboration projects.
• In addition, we will focus on the online seminar service and others in which creators can play an even more active role.

Events・Stores• Partially resume large-scale events, such as “HandMade In Japan Fes’” & “Creema YAMABIKO FES”.
• Rebuild the "Creema Stores" by strengthening merchandising considering changes in trends and consumption.

By Service

New service
group

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• Full-scale expansion of various new services started from FY21, focusing on the crowdfunding service.
• Development of new services centered on areas that have synergies with our platform (including M&A)

PAGE 27

Growth of Creema GMV (1/2)

Due to the impact of the COVID-19, the GMV of mask-related products has increased significantly
since March 2020, but as of the end of FY21, the ratio to the GMV was small. While the ratio keeps
declining, the GMV excluding mask-related products is expected to grow steadily after 3Q of FY22.
Unit: million yen

3,133
3,136
3,187

3,759

3,985

196
4Q

187
1Q
FY22

3,522

2,515
1,122
4Q
FY20

1Q
FY21

604
2Q

279
3Q

Mask-related GMV

120
2Q

Other GMV

Note: The mask-related GMV refers to the GMV of traded products that contain the word “mask” in the titles of works on Creema. Such works are among those traded during a relevant period under
Creema’s categories other than food. In regard to the mask-related GMV disclosed on April 14, since the GMV was calculated based on titles of works extracted at the point when the disclosed material was
prepared and not when works were traded, in some cases, titles have been changed from when traded. By revising the extraction method in detail this time, the total annual mask-related GMV in FY21
increased slightly more than the mask-related GMV disclosed on April 14, while the GMV excluding mask-related products in FY22 disclosed on July 13 decreased slightly.
Copyright ©2021 CREEMA LTD.

PAGE 28

Growth of Creema GMV (2/2)
After FY22, it is anticipated that the mask-related demand, which increased sharply the previous year, will
settle down. We are aiming for a GMV of 16.2 billion yen, which is up 121% YoY excluding mask sales.
Unit: million yen

Growth rate
(excluding masks): 121%
Growth rate (overall): 106%

15,41924,307
19,763
16,27924,142

13,216

15,94919,5972,203

FY21(Results)

FY22(Forecast)
Mask-related GMV

FY23(Forecast)

FY24(Forecast)Other GMV

Note: The mask-related GMV refers to the GMV of traded products that contain the word “mask” in the titles of works on Creema. Such works are among those traded during a relevant period under
Creema’s categories other than food. In regard to the mask-related GMV disclosed on April 14, since the GMV was calculated based on titles of works extracted at the point when the disclosed material was
prepared and not when works were traded, in some cases, titles have been changed from when traded. By revising the extraction method in detail this time, the growth rate of the GMV excluding maskrelated products increased to 121% from 120%.
Copyright ©2021 CREEMA LTD.

PAGE 29

Sales growth image
In FY22, we plan to launch several new businesses with the aim of expanding existing businesses basedon the management base strengthened by FY21, realizing the vision, and achieving non-consecutive
growth. We will accelerate business growth after FY23.
4,186

Unit: million yen

3,281

Sales growth rate (excluding masks): 131%
Sales growth rate (overall): 119%

2,446
2,062

4,169
3,264

1,840

2,413

221
FY21
(Results)

FY22(Forecast)

FY23(Forecast)
Mask-related

FY24(Forecast)OthersNote: Mask-related sales refers to those associated with sales from trading of works that contain the word “mask” in the product names. Such works are among those that completed trade during a relevant
period under Creema’s categories other than food.
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PAGE 30

[Ref.] Forecast of changes in sales composition by service
Due to the impact of the COVID-19, event & stores services shrank significantly in FY21, while theproportion of the marketplace service increased. After FY22, our service ratio is expected to be graduallybalanced back to normal, and the new service group will be progressively growing.
Marketplace

22%

1%
4%
21%

Platform

Events & Stores

2%
7%

58%

FY20
(Results)
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FY21
(Results)

8%
9%

13%

23%

22%

60%

57%

FY23
(Forecast)

FY24(Forecast)

24%

19%

74%

New service group

67%

FY22
(Forecast)

7%

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FY22 company-wide earnings forecast
To be able to further strongly back up the activities of creators, in FY22 we aim to achieve sales of 2.4
billion yen, operating profit of 315 million yen, and net income of 293 million yen by expanding the “Creema
economic zone”, where various services are dynamically linked.
FY22 Sales Forecast
by Major Services

Company-wide earnings forecast
Unit: million yen

Sales(Ref.) FY21

FY22

YoY

2,062

2,446

119％

Unit: million yen

Marketplace

Sales cost

5

88

1689％

Gross profit

2,057

2,357

115％

SG&A

1,831

2,042

112％

Operating profit

226

315

140％

Ordinary profit

204

307

150％

Net income
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178

293

164％

1,628
YoY: 106%(Ref.) YoY without masksales: 121%

Platform

590
YoY: 137%

Events &Stores171
YoY: 200%

New service
group

55
YoY: 382%
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Reposted: Earnings progress
A bottoming out in 2Q and a gradual increase in 3Q and 4Q is expected under the business plan. Progress regarding theearnings forecast is following a steady trend in all key indicators. No change is made from the plan set at the beginning of theterm, and steady growth will also be made in the second half.
Key financial indicators

Progress as of 2Q against full-year earnings forecast (million yen)
Full-year earnings
forecast

GMV

2Q results

16,2797,816⇒ Progress rate (as of 2Q): 48%

Full-year earnings
forecast

Sales

2Q results

2,446
1,109
⇒ Progress rate (as of 2Q): 45%

Full-year earnings
forecast

Operating profit

2Q results

315
187⇒ Progress rate (as of 2Q): 60%

Copyright ©2021 CREEMA LTD.

Topics• In the first half, both GMV and sales
progressed in line with the forecast.
✓ In 2Q, the GMV of the marketplace
service is planned to bottom out.
✓ From 3Q onward, the GMV of themarketplace service will enter agrowth trend and large-scale
events, etc. will be held.
Accordingly, sales are expected to
grow further in the second half.
• Operating profit temporarily saw a slightly
favorable variance due to a decision madenot to strategically use a portion of thebudget in 1Q.
• Progress is favorable for all key indicators,
including GMV, sales, and operating profit.
No change is made from the plan set atthe beginning of the term, and will further
grow in the second half.
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Appendix

Copyright ©2021 CREEMA LTD.

PAGE 34

① Marketplace service (Japan / Taiwan / Hong Kong)
At "Creema," which acts as the core of the “Creema economic zone”, 12 million works produced by 220
thousand creators are listed. The GMV of FY21 exceeded 15.4 billion yen, and we have established aposition as one of the largest global handmade marketplaces in Japan and Asia.

Copyright ©2021 CREEMA LTD.

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[Ref.] Various work categories that are handled by Creema
At "Creema", you can purchase original works of various genres, from fashion items, interior art, and food.

Copyright ©2021 CREEMA LTD.

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② Platform services
Utilizing the “Creema” user base, communicability, and platform, we provide such platform services as
Internal advertising (advertising for creators) that allows them to publicize their works and External
advertising (for companies and local governments). This way we promote multi-layering of business.
Internal advertising(Advertising for creators)
An advertising service on "Creema" that enables
creators to list and promote their own works on
our website and app.

External advertising(Advertising for companies and local governments)
PR service for companies

Regional revitalization

We have developed a diverse advertising menu,
Utilizing the user and platform infrastructure ofsuch as advertorials that introduce attractive"Creema", such as DX support for the traditional
products and services of client companies ascraft industry, local products PR, and production of"reading material" and collaboration projects inpromotional events to showcase thewhich creators create products for client companies. attractiveness of local cities, we are developing
PR services in the area of regional revitalization.

37

Copyright ©2021 CREEMA LTD.

PAGE 37

③ Events and Stores (1/2) - Events
Various handmade craft events are held all over Japan, including "HandMade In Japan Fes' (Tokyo Big
Sight)", one of the largest festivals of creators in Japan, which mobilizes 50,000 visitors per event.
• Held at Tokyo Big Sight, since 2013.
HandMade
In Japan Fes’

• Established a position as one of the largest festivals
for creators in Japan.
− Exhibitors: about 3,000 people− Visitors: about 50,000 people

CreemaCraft Party• Held at INTEX Osaka, since 2014.
• Established a position as one of the largest craft
events in western Japan.
− Exhibitors: about 1,500 people− Visitors: about 13,000 people

Marunouchi Street
Market• The craft market "Marunouchi Street Market by
Creema" is regularly held on Marunouchi Nakadori.

Note: The number of exhibitors and visitors for each event is the result of the most recently held event. In 2020, those events were not held due to the influence of COVID-19.
Copyright ©2021 CREEMA LTD.

PAGE 38

[Ref.] Photos and sceneries from HandMade In Japan Fes’

Copyright ©2021 CREEMA LTD.

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③ Events and Stores (2/2) - Stores
The editorial shops "Creema Store", which sell the works of creators registered in "Creema", are open in
Shinjuku and Sapporo.
Creema Store (LUMINE Shinjuku 2)

Copyright ©2021 CREEMA LTD.

Creema Store (Sapporo Stellar Place)

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④ New service group - Crowdfunding service, etc.
We plan to develop various new services that respond to the challenges and thoughts of creators. As a firststep, in the previous fiscal year we launched “Creema SPRINGS,” a crowdfunding service that allows
creators to raise funds for projects they want to realize.

Copyright ©2021 CREEMA LTD.

PAGE 41

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

79

1Q
FY20

2Q

98

101

3Q

4Q

95

93

94

95

96

100

1Q
FY21

2Q

3Q

4Q

1Q
FY22

2Q

Note: Employees are the total of regular employees, contract employees, and part-time employees, excluding executives.
Copyright ©2021 CREEMA LTD.

PAGE 42

Take rate trends

In FY21, GMV increased due to the spread of COVID-19, but the sales of events & stores services fell
sharply, resulting in a significant decrease in take rate. After FY22, the events & stores will gradually
recover and our new service group will be created, so the take rate is expected to improve again.
16.9%
16.6%

14.6%

17.2%

15.0%
14.2%
13.4%
12.4%

As the effects of COVID-19 gradually ease,
the take rate is expected to increasingly
improve to the level it should be.

The take rate temporarily declined
due to a significant decline in sales of
events & stores services and asignificant growth in GMV.

FY18
(Results)

FY19(Results)

FY20(Results)

FY21(Results)

FY22 2Q
accum.
(Results)

FY22
full-year(Forecast)

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 ©2021 CREEMA LTD.

PAGE 43

Investment policy for new services
Development of new services will proceed from areas synergistic with the platform built through the creator
empowerment business. After that, the competitive advantage will be further strengthened by thecooperation between old and new services, and the “Creema economic zone” will be expanded.
“Creema economic zone” expansion process
Build a solid platform
and a financial basethrough businessexpansion

Business expansion
through the highcustomer value

Expansion of the“Creema economiczone”
Improving customer value
throughout the “Creema
economic zone” bystrengthening acollaboration between old
and new services
Copyright ©2021 CREEMA LTD.

Sequential launch of
new services utilizing
the platform

Creema platform infrastructureand new businesses①Creator base centered on professionals andsemi-professionals②A huge user base of over 20-30 million visits
per month, mainly by women in their 20s to
40s③A website / app as a medium with transmission
power and community base that goes beyond"just an EC website" (the total number offollowers on social media is about 900,000)④Business 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 44

Expansion of new services
We steadily expand the service areas by utilizing the platform. We acquired FANTIST Co., Ltd. in 1Q of
FY22 to be fully prepared to enter into the EdTech domain in FY22.
Service area expansion
Before FY20FY21: New service sectors scheduled for FY22FY22Something new (In preparation): New service sectors entered in FY21
EdTech (FANTIST Co., Ltd.): Already established service sectors

Fulfillment
Crowdfunding
Fulfillment
Crowdfunding
Ad network
Ad network (Internal advertising)Media (External advertising)
Offline Biz (events & stores)
C to C Marketplace

Copyright ©2021 CREEMA LTD.

Ad network

Media

Media
Offline Biz (events & stores)
Offline Biz (events & stores)
C to C Marketplace

C to C Marketplace

PAGE 45

Investment in new services
Aiming for operating income of 140% YoY, while accelerating strategic investments in the new service
group in FY22 to further accelerate growth. FANTIST Co., Ltd. was acquired in 1Q of FY22 and investment
in new services has begun.
Trends in operating profit
Unit: million yen

FANTIST Co., Ltd. was acquiredin 1Q of FY22 and investment in
new services has begun.

163
57
226

315

48
FY19 (Results)

FY20 (Results)

FY21 (Results)

FY22 (Forecast)▲ 366
Operating profit
Copyright ©2021 CREEMA LTD.

Investment in new services (profit potential)
PAGE 46

C R E E M A LT D .
The Company's plans, business outlooks, strategies, etc. contained in this material are

based on the Company's management decisions obtained from the information available
as of the date of the announcement. It is just a forecast for the future, and there are various
risks such as "intensifying price competition in the market", "fluctuations in trends ineconomic activities surrounding the business environment", "fluctuations in exchange
rates", "significant fluctuations in market prices in the capital markets", etc. Please notethat the actual business performance may differ due to uncertainties mentioned above.

< Contact information >CREEMA LTD. Corporate Div.
https://www.creema.co.jp/contact/index.html

Copyright ©2021 CREEMA LTD.

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