FYE January 2017

Presentation Material

01Company Profile
Company Name

Enigmo Inc.

Main Business

Management of social shopping site "BUYMA"

Location

Juko Bldg. 7F, 1-26-1 Minami Aoyama, Minato-ku, Tokyo

Date of Establishment

February 10th, 2004

Representative

Representative Director and Chief Executive Oﬃcer Shokei Suda

Capital381.9 million yen

Number of Employees

90 people ( consolidated, 72: non-consolidated ) ( As of end of January, 2017 )Accounting Period

January 31stMajor Shareholder

Executive oﬃcers & Sony Corporation

Audit firm

Ernst & Young ShinNihon LLC

02

FYE (13th Period) Highlights

・Significant growth this fiscal year by leveraging the effect of the previous year’s mass campaigns
・Total transaction amount (value), revenue, and profits were all at a record high・Revenue growth rate, operating profit margin, ROE, all exceeded 40%
・Acquired 996,000 new members; total membership numbers are now close to 4 million
・For GLOBAL BUYMA, items exhibited, number of visits to the site,
and CVR are all growing favorably

03

FYE (13th Period) Highlights

KPIs

Financial Figures（Consolidated)）
Total Trading Amount33.27 billion yen(136.2% YoY)

Members

Revenue

4.14 billion yen(145.1% YoY)

Number of Personal Shoppers

90,000+（119.1% YoY）

Operating Income

1.76 billion yen(805.2 % YoY)

New Member Registration

996,000 （126.4% YoY）

Ordinary Income

360 million yen(812.7% YoY)

Net Income

1.14 billion yen(-%YoY)ROE

43.7% (-ptYoY)(-ptYoY)

3,998,041（133.1% YoY）

GLOBAL BUYMA Status
Number of organic influx ※1

285.9% YoY (The second half) (The first half : the second half 365.7%)

CVR ※2

153.1% YoY (The second half) (The first half : the second half 198.2%)※1 Number of traﬃc from search results excluding 「Search linked advertisement (Listing ads)」(Access number to the site)※２ Ratio of those who purchased items against the number of visits (traﬃc) to the site04

Earnings Results for FYE Jan 2017(13th Period)
Significantly exceeded the forecast at the beginning of the fiscal year, and achieved the revised forecast as well
Revenue was 145% YoY, Operating profit was 805％ YoY- grew significantly

13th Period January 2017 Forecast
FYE Jan 2017(13th Period)

Previous Year

Total trading
amount ※33,277million yen

24,440million yen

Revenue

4,147million yen

OperatingprofitYoY

13th Period January
2017 Forecast

Progress rate

136%

26,896million yen

124%

2,858million yen

145%

3,263million yen

127%

1,768million yen

219million yen

805%

1,001million yen

177%

Ordinary
profit

1,763million yen

216million yen

813%

1,001million yen

176%

Net profit

1,143million yen△180million yenー

606million yen

188%

54.92 yen

(8.48 yen)ー

29.14 yenーNet profit per share(yen)

Revised forecast（Announced
December 15th）

32,844million
yen

4,121million
yen

1,749million
yen

1,751million
yen

1,026million
yen

49.32 yen

Progress rate

101%

101%

101%

101%

111%

ー

※Total trading amount ：total settlement amount including the product price and settlement fees05

Revenue trend
Revenue surpassed 4 billion yen (145.1 % YoY) indicating significant businesses expansion

4,147

4,500

Non-consolidated

3,600

Consolidated

2,858
2,700

2,285

1,800

1,823
1,439

900

0
FYE

FYE

FYE

FYE

FYE

Jan.2013

Jan.2014

Jan.2015

Jan.2016

Jan.2017( Unit : ¥ Million Yen )06

Selling, General and Administrative Expenses (Consolidated)

Advertisement expenses were drastically reduced to 79.8 % YoY

FYE Jan. 2017 (Consolidated,cumulative period)

Previous year

YoY(%)

Personnel expenses ※1

953million yen

585million yen

162.8%

Advertisement expenses

558million yen

1,315million yen

42.4%

19million yen

12million yen

156.0%

Other

183million yen

234million yen

78.2%

Total

1,715million yen

2,148million yen

79.8%

Depreciation※1 Includes temporary employees and outsourcing expenditure

07

Operating Profit and Margin

Operating profit was a record high, margins also improved sharply
Non-consolidated

consolidated

2,000

1,768

52.3%

42.6%

46.7%

1,500

41.5%
1,196
1,000

852
597

500

219

0

FYE

FYE

FYE

Jan.2013

Jan.2014

Jan.2015(Unit : ¥Million Yen)

Operating Proﬁt

7.7%

FYE

FYE

Jan.2016

Jan.2017

OP Margin

08

Cash Flow Trend（Consolidated）

As operating profit was a record high,Fiscal year end cash (and equivalent) increased to 3,823 million
yen（2,139 million yen increase YoY）
Cash & Cash Equivalent
Exchange Diﬀerences

1 million yen
Investing C/F
263 million yen

営業C/F△533million yen
Operating C/F
1,873 million yen

Ending Balance
3,823 million yen

Beginning Balance
1,684 million yen

09

ROE

Through share buybacks and net profit growth, ROE exceeded 40%

40.0%

Consolidated

Non-consolidated

50.0%

1,143

43.7%

38.8%
32.7%

1200

960

31.3%
708

30.0%

720

523
20.0%

480

377

10.0%

240

0.0%

0

-7.7%

-10.0%

-180

-240

FYE

FYE

FYE

FYE

FYE

Jan.2013

Jan.2014

Jan.2015

Jan.2016

Jan.2017(Unit : ¥Million Yen)

Net proﬁt

ROE

10Overview of
BUYMA’s Business

11

Profile of Business

BUYMA is a social shopping site that offers a unique shopping
experience with unlimited fashion merchandise by connecting
individuals of the world through its own unique “C to C” services

Membership

3,998,041 people

Number of items on display

17,500+ per day

Number of Personal Shoppers

90,000 people
Number of countries where
Personal Shoppers reside

135 countries※As of January month-end 201712

Trend of the number of BUYMA Registered Members

Registration numbers steadily growing and reached 4 million,(YoY at 133.1 %) while cutting the advertising costs

3,998,041

4,200,000

3,500,000

3,004,769
2,800,000

2,235,261
2,100,000

1,693,994
1,400,000

1,190,574

700,000

0

FYE

FYE

FYE

FYE

FYE

Jan.2013

Jan.2014

Jan.2015

Jan.2016

Jan.2017(Unit : Person)※Includes English Version from FYE Jan. 2016, and Korean Version from FYE Jan. 201713

Trend of the number of active BUYMA members

Members gained efficiently transformed to active members resulting
in a significant increase(YoY at 139.6%)

885,308

900,000

634,152
600,000

514,989449,620300,000

0304,816

FYE

FYE

FYE

FYE

FYE

Jan.2013

Jan.2014

Jan.2015

Jan.2016

Jan.2017(Unit : Person) ※Active Number of Members：purchase history of members during the this past year.
※Includes English Version from FYE Jan. 2016, and Korean Version from FYE Jan. 201714

Total Transaction Amount

Total transaction amount exceeded 33 billion yen posting asignificant increase (YoY at 136.2%)

33,27735,00030,00024,44025,00020,68420,00017,11515,00013,642

10,000

5,000

0

FYE

FYE

FYE

FYE

FYE

Jan.2013

Jan.2014

Jan.2015

Jan.2016

Jan.2017(Unit : ¥Million Yen) ※Total Transaction amount：product price and settlement fees are included in the bill after the transaction's completion.
※Includes English Version from FYE Jan 2016, and Korean Version from FYE Jan. 201715

Total Number of Transactions

The number of transactions exceeded over 1.85 million significantly
increasing with our YoY at 141.5%

1,853,817

2,000,000

1,600,000

1,309,714
1,200,000

1,125,819
1,004,528

800,000

693,099

400,000

0

FYE

FYE

FYE

FYE

FYE

Jan.2013

Jan.2014

Jan.2015

Jan.2016

Jan.2017(Unit : Case)※Includes English Version from FYE Jan 2016, and Korean Version from FYE Jan. 201716

Total Annual Amount of Purchases

Although we have experienced an influx of new members total value
amount of purchases remained steadily with a slight decrease with ourYoY at 97.5%
50,00044,76040,00038,06740,16638,53937,58830,00020,00010,000

0

FYE

FYE

FYE

FYE

FYE

Jan.2013

Jan.2014

Jan.2015

Jan.2016

Jan.2017(Unit : ¥Yen)

17

Overview on measures implemented duringFYE Jan. 2017 (13th Period)

18

Overview on measures implemented during FYE Jan. 2017 (13th Period)

Utilizing high recognition gained through mass campaign conducted in
the previous fiscal year, measures such as gaining membership,
increasing active ratio, and maintaining ARPU were all efficiently achieved
while reducing advertising expenditures
Results of the ﬁrst half FYE Jan. 2017

Membership

Active ratio

ARPU

133% YoY

105% YoY

98% YoY※Includes English Version from FYE Jan. 2016, and Korean Version from FYE Jan. 201719

Overview on measures implemented in FYE Jan. 2017 (13th Period) −ARPU (Total Annual Amount of Purchases) breakdown

In light of an increased new member acquisition unit price dropped
slightly, but the number of transactions saw a slight increase with YoY at
101% leveraged by internal measures implemented

ARPU
98% YoY※The ﬁrst half (February ‒ July) of FYE Jan. 2016

Average per
one purchase

Average purchase number
per person

Unit Price

Number of Transactions

96% YoY

101% YoY(The ﬁrst half of FYE Jan.
2016 YoY at 94%)

(The ﬁrst half of FYE Jan.
2016 YoY at 100%)slightly decreased

unchanged※Includes English Version from FYE Jan. 2016, and Korean Version from FYE Jan. 201719

Overview on measures implemented during FYE Jan. 2017 (13th Period)

Boosted by an efficient growth of membership and active ratio total trading
amount surpassed our expectationsFYE Jan. 2017

Brand recognition
rate
Number ofmembers

Percentage ofactive users

ARPU

Total trading
amountPrevious year

YoY (%)

Assessment

Measures to raise

41.1%

40.0%

102.8%

recognition were not
implemented this fiscal year

3,998,041

3,004,769

133.1%

22.2%

21.1%

105.0%

37,588yen

38,539yen

97.5%

33,277million yen

24,440million yen

136.2%The results exceeded
our expectations

Posted a steady growth

Challenge Picked upcomparing to 94% of
the ﬁrst half of FYEJan. 2017

The results exceeded
our expectations

21

Highlights of measures implemented in FYE Jan. 2017 (13th Period)CCCC

Taking advantage of our increased brand recognition of 41% (as of Feb. 2017),
new members were gained through search linked advertisements and media
Enhancing user migratory through numeral contact points such as owned media
and applications the activation rate increased with synergistic effects
FYE Jan. 2016
Implemented
mass campaign

FYE Jan. 2017
Measures to gaining
new members

Measures for raising active
ratio and a high ARPU

Owned media suchas POST and
STYLE HAUS

Owned
media

Recommendfunction

Acces

Search linked
advertisement forsearch engine andSNS (Increase thePotential customers who
know of BUYMA but are
not yet members

number of application

Application
downloads
User
migration

downloads)

22

Highlights of measures implemented in FYE Jan. 2017 (13th Period) - Owned media 【POST/STYLE HAUS】

New membership and total trading amount gained through owned media
showed a stable growth
Member registration numbers
through owned media

1Q

2Q

3Q

4Q

FYE Jan. 2015

New membership gained
through STYLE HAUS

1Q

2Q

3Q

FYE Jan. 2016

4Q

1Q

2Q

Total trading amount generated
by owned media

3Q

FYE Jan. 2017

New membership gained
through POST

4Q

1Q

2Q

3Q

4Q

1Q

FYE Jan. 2015

2Q

3Q

FYE Jan. 2016

4Q

1Q

2Q

3Q

4Q

FYE Jan. 2017

Total trading amount

Total trading amount

generated by STYLE HAUS

generated by POST

23

Highlights of measures implemented in FYE Jan. 2017 (13th Period) – application

The number of application downloads and total trading amount have been growing
steadily boosted by limited SALE campaign provided for application users

Number of apps DL

1Q

2Q

3Q

FYE Jan. 2015

Number of apps DL

4Q

1Q

2Q

3Q

FYE Jan. 2016

4Q

1Q

Total trading amount generated by apps DL

2Q

3Q

FYE Jan. 2017

4Q

1Q

2Q

3Q

FYE Jan. 2015

4Q

1Q

2Q

3Q

FYE Jan. 2016

4Q

1Q

2Q

3Q

4Q

FYE Jan. 2017

Total trading amount generated by apps DL

24

Highlights of measures implemented in FYE Jan. 2017 (13th Period) – application

Component ratio of total trading amount via application increased

Component ratio of total trading amount by device
100%

80%

60%

40%

20%

0%
1Q

2Q

3Q

4Q

1Q

FYE Jan. 2015

PC

SP(smart phone)/ FP(feature phone)

2Q

3Q

FYE Jan. 2016

4Q

1Q

2Q

3Q

4Q

FYE Jan. 2017

APP

excluding application

25

Highlights of measures implemented in FYE Jan. 2017 (13th Period) –Recommend function

Trading amount via Recommend function showed a stable growth
Trend of trading amount via Recommend function
Im pleme nted
Androi d a pps
Dec. 20 16

I m pl eme nted
i OS a pp s Apr. 2 01 6

2Q

3Q

FYE Jan. 2016

4Q

1Q

2Q

3Q

4Q

FYE Jan. 201726

Our services elevate to the next stage27

Our services elevate to the next stage –Current BUYMA

A wide range of items were exhibited with an increasing needs accompanied
by business expansion
BUYMA Platform「Number and characteristic of exhibited items」
Now

At the start of the business(exhibitors of a wide range of generations,(mainly female)

male/female)

No. of PS 3,800 people /Residing countries 35 ＊1

No. of PS 90,000 people /Residing countries 135 ＊2

Individual
PS※3
Variety of items・
Top trend・Rare※１

Individual PS※3
Variety of items・
Top trend・Rare※1 As of January month-end 2006

Specialized
tradingcompanies※2 As of January month-end 2017

Price

※3 PS:Personal Shopper

Premium PS※3
(In addition to characteristicof individual PS)

Trust・Price

SHOP

Brand・Maker

Standard items・
Stock・ Price

Trust

27
28

Our services elevate to the next stage – Current BUYMAStreamline a variety of items to more sophisticated selections, anddeliver them to most appropriate users with sense of safety

BUYMA Platform「BUYMA」

BUYMA MDBUYMA AI

A wide range of items such as
standard and rare
items be delivered
with an integrated image

Diversified items be delivered tomost appropriate users

BUYMA
GUARANTEEBUYMA guarantees exhibited items,
enabling user transactions
with sense of safety16
29

Our services elevate to the next stage – Current BUYMATransform to NO.1 Platform that enables users to find what they wantfrom all over the world and purchase items with sense of safety
BUYMA Platform
A wide range of items were exhibited toStreamline a variety of items to more

fulﬁl a variety of needs as a wide range of

sophisticated selections,exhibitors participated along with ourand deliver them to most appropriate users

business expansion

with sense of safety

Individual PS ※1
BUYMA MD
Premium PS ※1
BUYMA AISHOPBUYMA GUARANTEESpecialized trading companies
Brand・Maker

Exhibiting number and characteristic※1 PS:Personal Shopper

BUYMA
30

Our services elevate to the next stage – Current BUYMAProviding a wide range of items led to an expansion of shoppers’ categories
BUYMA’s trading amount has been mainly generated by F1 segment, but
recently trading amount expanded particularly in the segment of male,teenagers, and those over fifty years old
Total trading amount in male category

7,481

8,000

Total trading amount in 10s
2,000

Total trading amount over 50 years old
4,000

1,735
3,155

6,000

1,500

3,000

2,307

4,457
4,000

1,000

2,000

924

1,649

2,993
604
2,000

500

1,000

0

0

0

FYE Jan. 2015

FYE Jan. 2016

FYE Jan. 2017

FYE Jan. 2015

FYE Jan. 2016

FYE Jan. 2017

FYE Jan. 2015

FYE Jan. 2016

FYE Jan. 2017

(Unit : ¥ Million yen) ＊Numerical value from Japanese version only31

Our services elevate to the next stage – Current BUYMA

While maintaining unique brand image of BUYMA our services evolved fromlimited one to the new stage where a wide range of users can enjoy

N o.1 ov erse as
on-line shopp ing site

A t t heb e gi n ning

In no v a t or
fa s hi on - co n sc iou sw omen in their
2 0s -30 s

E a rl ya d ap t er

Main stream

Cur re nt
BUYMA

Pe ople who purchaseimport fas hion
( Me n & Wo m en 1 6 ‒6 9 y ea r s o l d )3231

Our services elevate to the next stage – Redefining the number of target users

To redefine our target users (those who consider buying import brands on
EC sites) to “10 million females” to “40 million males and females”
Current BUYMA
Target users (Female only)

New BUYMA target users

40million people

10 million people①

Population※1(Male/
Female 16-69 years)

④

②

③

Internet usage rate※2

Internet usage rate ofpurchasing goods /85.25 million
people（Of those who are ③ and meet the condition stated at ※4）services ※3

91.9%

Those who are considering to purchaseimport brand at EC ※5(% of new BUYMA target users)

56.0%

91.1%

※1 “Population Projections 2016 (Fixed value September 2016)” by Ministry of Internal Aﬀairs and Communications, Bureau of statistics※2 “Communication Usage Trend Survey in 2016 / Internet usage by group of age/gender(calculated by usage rate of each age group)” by Ministry of Internal Aﬀairs andCommunications※3 “Communication Usage Trend Survey in 2016 / The functions, services and purposes used in the past year /Including using for purchasing goods & services, (sum of) trading”
by Ministry of Internal Aﬀairs and Communications※4 In-house survey : “BUYMA brand recognition ＊5 + people who do not know BUYMA and considering to purchase import brand” (in-house survey ＊6)※5 In-house survey : “Survey on EC site / BUYMA brand recognition”Survey target: Male & Female of 12-59 years old who browsed through fashion related shopping sites in thepast 6 months Survey period: Jan. 27 ‒ Jan. 31, 2017
※6 In-house survey : “Survey on EC site / import brand purchase survey for people who do not know BUYMA”Survey target: BUYMA visitors(Survey period: Jan. 30 ‒ Feb. 1, 2015)33

Measures for FYE January 2018

In delivering satisfaction for a wide range of users we will further enforce
infrastructure, settlement platform, as well as realizing measures from a year earlier
Measures for FYE January 2018

Measures for
gaining newmembers

Measures forincreasing active
member rate

Maintaining ARPU

Example measures

Example measures

Example measures‣ Search linked

advertisement‣ Owned media‣ Enhance application

function→Strengthen
personalization for Push
function‣ Improve Recommend‣ SEO

function‣ Enhance functions for
Personal Shoppers→Regularly distributeinformation on popular
items to raise exhibiting
item quality→Provide tools for
professional users‣ Increase items for men‣ Add categories of‣ Enhance functions for

returning goods‣ Introduce measures for‣ Delivery function‣ Introduce measures forpurchasers

point system
coupon‣ Introduce measures forbulk shopping

Enforce infrastructure and settlement platform
34

GLOBAL BUYMA(English Version / Korean Version)

34

GLOBAL BUYMA – FYE January 2017 achievements

Membership registration numbers have steadily increased,
and countries shipped have also increased from 26 countries
in 1H of the fiscal year to 62 countries in 2H
Registered membership

GLOBAL BUYMA image

Shipment made outside Japan :Average Unit Price : ¥34,101

62 countries

Average Age : 34.3

Breakdown of shipment by country

Gender : 71.3% Female,

Korea : 67.6%

28.7% MaleHong Kong : 13.5%(As of end of January, 2017)

US : 7.2%

1Q

2Q

3Q

FYE Jan. 2015

4Q

1Q

2Q

3Q

FYE Jan. 2016

4Q

1Q

2Q

3Q

4Q

FYE Jan. 2017

Taiwan：2.3%
Singapore : 1.9%

English Version

Korean Version

Australia：1.1%
England：1.0%
Other Countries : 5.3%

35
36

GLOBAL BUYMA – FYE January 2017 achievements

Expanded number of exhibited items to the same level of theJapanese version of BUYMA
Increased trading amount by raising the number of influx and CVR
FYE January 2017 achievements

Increased
number of
items
Exceeded
over 3 million items

Increased
number of organic
inﬂux＊1
YoY the second half at
285.9%(the ﬁrst half : the second half at
365.7%)

Increase CVR＊2
YoY the second half
at153.1%(the first half : the second half at
198.2%)＊１ Number of traﬃc from search results excluding「search linked advertisement (listing advertisement)」(Access number to the site)＊２ Number of inﬂux : Purchase number

37

GLOBAL BUYMA – Measures Planned for FYE January 2018 (14th Period)

Continue to aiming at increasing trading amount with increased numberof influx and CVR as well as to establishing worldwide BUYMA brand of“You can buy the world”
Measures Planned for FYE January 2018

Organic
inﬂux UP

Increase CVR

Add Japanese items (Capture inbound demands)
Initiate marketing activities for each target country
Open the BUYMA doors to non-Japanese Personal Shoppers

37
38

Full-Year Earnings Forecast for
FYE Jan. 2018 (14th Period)Full-Year Earnings Forecast for FYE Jan. 2018 (14th Period) [Consolidated]

By making appropriate investments for future growth,
forecasting double digit growth

FYE Jan. 2018 Forecast

FYE Jan. 2017 Results

Growth Rate

Total trading amount
40,965million yen

33,277million yen

123.1%

Revenue

4,977million yen

4,147million yen

120.0%

Operating profit

1,966million yen

1,768million yen

111.2%

Ordinary profit

1,966million yen

1,763million yen

111.5%

Ordinary profit

1,342million yen

1,143million yen

117.4%Net income per share

64.49yen

54.92yenーNet income per share

ー

ー

ー

( BUYMA Only )※Settlement fees included

40Medium-Term Strategy

Medium-Term Strategy – BUYMA Ecosystem
BUYMA

Ecosystem

Encounter and purchase an item on BUYMAThen re-sell items one no longer needs…

RelatedBusiness

Providing a one-stop service from encounterto disposal
Establish a BUYMA Ecosystem

Generate Related Businesses further from BUYMA
Ecosystem and expand the market size

Generate continuously high profits
domestically, and invest in GLOBAL BUYMA
Nurture BUYMA into a global brand, andaim for a “home-run” in large scale
markets such as the United States andrapidly growing markets such as Asia andthe Middle East.

Encountering
new items

Sel lin g item s
no lo nger usedMedia
(Curation)

Resale42

Medium-Term Strategy – BUYMA Ecosystem【Resale】
ALL-IN
Trading amount status (February 2016 ‒ January 2017)
Q1 : 18 million yen , Q2 : 22 million yen, Q3 : 32 million yen, Q4 : 49 million yen【Media】(Curation)
Rocket Venture
Achieved full year proﬁt
Sales

287 million yen (209.4 % YoY)

Operating proﬁt

38 million yen ( -% YoY)43

Medium-Term Strategy – Medium-Term Targets

By constantly increasing revenue and profit, we are aiming for an
operating profit of 5 billion yen
BUYMA
GLOBALMedia business /Related businessResale businessMedia business / Related businessResale business

BUYMA GLOBAL ( English Version・Korean Version )BUYMA ( Japanese Version )We will properly reinvest towards long-term growthwith the continuing expansion of BUYMA's ecosystem.
FYE Jan. 2015

FYE Jan. 2016

38
44

VisionNo.1 in Social Commerce
E-Commerce is a rare market with “extraordinary" growth prospects
Among the various transaction styles,
the C to C transaction of BUYMA is an area which is attracting
much attention
as the commerce for the next generation
Enigmo will, in this rapidly expanding e-commerce market,
Provide value through unique services thatleverage the power of the individual through C to C transactions,and establish its position as No. 1 in “Social Commerce”

45

Mission Statement

Creating Change

46This presentation material is provided solely for the purpose of
better understandingof our company and its business and is not intended forsolicitation purposes.
Forward-looking projections contained are made based onassumptions and plans
available as of today. Actual business performance may differ
from projections due torisks and uncertainties in the future.