December 15, 2015

Company Name
Representative
Director

Enigmo Inc.
Representative
Director
Shokei Suda
CEO（Code No.：3665 Tokyo Stock Exchange, Mothers）
Inquiries
Director
CorporateOperation Yoichi Kaneda
Department
TEL. 03-6894-3665
Notice regarding revision to financial results forecasts (non-consolidated)
and recognition of extraordinary loss

Based on a review of the recent trends in our operating performance, we have revised ourprojection for FYE January 31st 2016 (announced on March 17th 2015) as follows:
１．

Revision of the financial results forecasts for FYE January 31st, 2016
Revenue

Previous forecasts（Ａ）
Revised forecasts（Ｂ）
Difference（Ｂ－Ａ）
Rate of change（％）(Reference)
Consolidated financial results of thefiscal year ended January 2015

OperatingProfitOrdinary
ProfitNet IncomeNet Income pershare

Mil.yen
3,436
2,665
△771
△22.5

Mil.yen
702
233
△468
△66.7

Mil.yen
702
235
△466
△66.4

Mil.yen
432
38
△393
△91.0

yen/share
20.27
1.83
――

2,285

1,196

1,200

708

33.64

２．Reasons for the revision（１）
Our main business of “BUYMA”, the social shopping site, has reached a total of
2,731,875 members as of end Q3 (130.6% yoy). The new members (registrations) since the end of
Q1 grew by a steady 367,470, which was 138.5% compared to the number of members added for thesame period of the previous year. We are also unfolding mass promotional campaigns in Q4,continuing to acquire new members. Given the steady increase in the number of registered members,
our total transaction amount increased to 16,366 million yen (111.1% yoy). Regarding the trend intransaction amounts in relation to those of the previous year were as follows: Q1:5,175 million yen(99.2% yoy), Q2:5,373 million yen (112.8% yoy), Q3: 5,818 million yen (122.5% yoy). They havepicked up pace in their growth which had been dampened by fluctuations in the exchange rate.
However, the acquisition of new members, taking into account the positive effects from masscampaigns to the maximum extent possible, is lagging behind schedule, and transaction amounts up
to Q3 add up to only 51.9% against the initial expected total transaction amount for the full fiscalyear (FYE January 2016) of 31,529 million yen. It is therefore expected that revenue for the full year
will not reach the level of our initial forecast (non-consolidated basis). Also, given the characteristicof our business, there will be no major change in the level of selling, general and administrative(SG&A) expenses associated with the shortfall in our revenue.

（２）On the recognition of extraordinary losses
As it has been confirmed that Image Network Inc., the company to which we own shares, will end
the operation of its services and dissolve the company, we have recognized appraisal losses of 123million yen on those investment securities. This has been accounted for as extraordinary loss in Q3of FYE January 2016, and the effect on overall earnings has been explained in the FYE January 2016
Q3 financial statements (Japan GAAP) (consolidated results).
（３）Forecast to recognize further extraordinary losses
Stulio Inc., to which we also own shares, has also decided to end the operation of their services, aswell as to dissolve the company. As a result, it is expected that there will be appraisal losses of 135
million yen on those investment securities, and this will be accounted for during Q4 of FYE January
2016.
For the reasons explained in (1)～(3), revenue, gross profit, operating profit, ordinary profit and net
income are all expected to be below the full year earnings forecast (non-consolidated); therefore wehave revised our forecast as above.

Note: The forecast shown above is prepared based on information available as of the issuing date ofthis report. Actual results may differ from these forecasted figures due to various unknown factors.