TSE Mothers (Code: 3665)

11th Period

Results for the Fiscal Year Ending January 31st, 2015

Presentation Material

January 17st, 2015
Enigmo Inc.
(C) 2015 ENIGMO,INC. All rights reserved.

01

Company Outline
Name of the Company

Enigmo Inc.

Main Business

Operation of social network-type shopping website, “BUYMA”

Address

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

Date of Establishment

10th February, 2004

Representative Director

Representative Director and CEO Shokei Suda

Capital Stock￥381,500,000

No. of Employee

47 (As of January 31st, 2015)

End of Fiscal Year

January 31

Major Shareholder

Sony Corporation, board members

AuditorErnst & Young Shin-Nihon LLC(C) 2015 ENIGMO,INC. All rights reserved.

02

Highlights from FYE Jan. 2015
BUYMA
Business has been growing robustly, with increased sales and profits
Operating and Ordinary profits have both exceeded initial forecasts
Total Trading Amount : 20.68 Billion Yen (120.9%yoy)

Operating Profit : 1.19 Billion Yen (140.4% yoy)

(Total Trading Amount includes Trading Fee)

Ordinary Profit : 1.2 Billion Yen (140.3% yoy)

Revenue!

: 2.28 Billion Yen (125.4% yoy)

Net Profit: 0.7 Billion Yen (135.3% yoy)

Membership numbers have also grown steadily
Membership : 2.23 million (132% yoy)

No. of Personal Shoppers : Over 650 thousand (123.5% yoy)

Expand recognition
Test marketing through collaboration between TV exposure and service events in the regional (non-metropolitan)
areas Expand TV exposure on a wide scale in FY 2016

Personal shopper initiatives
Elevate the function of the exhibitors from mere buyers to “Personal Shoppers”, and strengthen service
capability to suit each customer, in a strategic manner
By improving the attractiveness of items and increasing the number of Personal Shoppers, elevate the item lineup of the site as well as theservice provided, and improve customer satisfaction

Improve convenience
Start to provide iPhone apps/ improve search functions/ start Premium Members service/ Start goods-return
warrantee system(C) 2015 ENIGMO,INC. All rights reserved.

03

Earnings results for FYE January 2015
Revenue, Operating Profit and Ordinary Profit all hit record high levels( Unit:¥MM)

Results for FYE
Jan. 2015

Total Trading amountResults for last
year

yoy

Forecast for full
fiscal year━

difference
from forecast━% complete

20,684

17,115120.9%

Revenue

2,285

1,823

125.4%

2,379

△93

96.1%

Operating profit

1,196

852

140.4%

1,000

195

119.5%

Ordinary profit

1,200

855

140.3%

1,000

200

120.0%

708

523

135.3%

616

92

114.9%Net profit━(NOTE)NOTE : Total Trading Amount includes
Trading Fee(NOTE)

Note; As the forecast of FYE Jan.2015 was not included transaction fee, the difference between actual figures and % achievement is not written.
Total transaction amount (including transaction fee) for FYE Jan. 2016 is estimated to be 21,872 million yen.

(C) 2015 ENIGMO,INC. All rights reserved.

04

Revenue
Revenue was 125.4% yoy and exceeded 20 Billion Yen.
Consecutive increase for 4 fiscal years.
BUYMA

Advertising Business(Unit:¥MM)

2,500
2,285

2,000
1,823

1,500

1,439

1,000

920
281

851
47

636

804

500

n
Ja

.2 FY
01 E
5

n
Ja

.2 FY
01 E
4

n
Ja

.2 FY
01 E
3

n
Ja

.2 FY
01 E
2

n
Ja

.2 FY
01 E
1

0

(C) 2015 ENIGMO,INC. All rights reserved.

05

Selling, General and Administrative Expenses
SG&A was only 112.9% yoy ; by containing increases in expenses,
we have been able to achieve efficient growth( Unit:¥MM)

Results for FYE Jan.2015

Results for last year

yoy

Personel Expenses

372

332

112.2%

Advertisement expenses

160

117

137.5%

9

9

98.3%

Other

145

151

96.3%

Total

689

610

112.9%

Depreciation cost(C) 2015 ENIGMO,INC. All rights reserved.

06

Operating profit, Operating profit margin
Operating profit was 140.4% yoy, and OP margin rose to 52.3%.
Keeping Steady Growth
OPM( Unit:¥MM)

60.0%!

1,500!
52.3%
46.7%

1,196

1,200!

48.0%!

41.5%

900!

36.0%!

852

24.1%
597

600!

300!

24.0%!

9.3%

12.0%!
205

85
0%!

n
Ja

.2 FY
01 E
5

n
Ja

.2 FY
01 E
4

n
Ja

.2 FY
01 E
3

n
Ja

.2 FY
01 E
2

n
Ja

.2 FY
01 E
1

0

(C) 2015 ENIGMO,INC. All rights reserved.

07

Transitions of ROE
Keeping high ROE after IPO
ROE

800

Net Profit

60%!
709

700

50%!

600

40%!

500

524

38.81%

30%!
32.71%

400

31.33%
20%!

377

0%!

100

-10%!

0

-20%!

n

n

n

Ja

Ja

Ja

.2 FY
01 E
5

200

.2 FY
01 E
4

10%!

.2 FY
01 E
3

300

(C) 2015 ENIGMO,INC. All rights reserved.

08

Cash Flow
( Unit:¥MM)

Increasethrough
contribution of
proﬁts fromthe BUYMA
business

Cash ﬂows
fromoperatingactivities

1,124

Cash andcash equivalents
at the beginningof the period

Cash ﬂows
from investing
activities-245
Decrease frominvestment to
subsidiaries/
aﬃliated
companies

Cash ﬂows
from ﬁnancing
activities

Increase fromexercising
share options

34

1

Increase fromexercising
share options

Cash andcash
equivalents
at the end of
the period

2,933

2,019

(C) 2015 ENIGMO,INC. All rights reserved.

09

Overview of BUYMA business(C) 2015 ENIGMO,INC. All rights reserved.

10

What’s BUYMA
A Social-Network Fashion shopping website that generates encounters with infinite fashion items
and provides special shopping experiences through our unique “C to C” service that connects
individuals worldwide

Membership

2,235,261 members

Items provided

over 8,700 items/ day

Personal Shoppers

Personal Shoppers resideover 65,000

in 115 countries※as of July 31st, 2015

(C) 2015 ENIGMO,INC. All rights reserved.

11Number of registered Members
Membership numbers exceeded 2.2 million, 132% yoy(Unit:Person)

2,500,000
2,235,261

2,000,000
1,693,994
1,500,000
1,190,574
1,000,000
819,886
614,834
500,000

n
Ja

.2 FY
01 E
5

n
Ja

.2 FY
01 E
4

n
Ja

.2 FY
01 E
3

n
Ja

.2 FY
01 E
2

n
Ja

.2 FY
01 E
1

0

(C) 2015 ENIGMO,INC. All rights reserved.

12Number of active Members
Increasing steadily Active membership numbers exceeded 510 Thousand(Unit:Person)

600,000

281,104

514,989449,620400,000

304,816200,000

174,797
125,568

n
Ja

.2 FY
01 E
5

n
Ja

.2 FY
01 E
4

n
Ja

.2 FY
01 E
3

n
Ja

.2 FY
01 E
2

n
Ja

.2 FY
01 E
1

0

Active members → Number of members who have shopped in the past year(C) 2015 ENIGMO,INC. All rights reserved.

13

Total Transaction AmountExceeded 20 Billion Yen, 120.9% yoy(Unit:¥MM)

22,00020,684

17,115
16,50013,642

11,000

7,977

5,500

5,211

n
Ja

.2 FY
01 E
5

n
Ja

.2 FY
01 E
4

n
Ja

.2 FY
01 E
3

n
Ja

.2 FY
01 E
2

n
Ja

.2 FY
01 E
1

0

NOTE : Total Trading Amount includes Trading Fee(C) 2015 ENIGMO,INC. All rights reserved.

14

Number of Transactions
Exceeded 1.1 million transactions
Expanding steadily(Unit:Case)

1,200,000
1,125,819

1,004,528

1,000,000

800,000
693,099
600,000

402,758

400,000
292,283
200,000

n
Ja

.2 FY
01 E
5

n
Ja

.2 FY
01 E
4

n
Ja

.2 FY
01 E
3

n
Ja

.2 FY
01 E
2

n
Ja

.2 FY
01 E
1

0

(C) 2015 ENIGMO,INC. All rights reserved.

15

ARPU
Recovered to 40 thousand Yen(Unit: Yen)

50,00045,64044,76041,50240,16640,00038,06730,00020,00010,000

n
Ja

.2 FY
01 E
5

n
Ja

.2 FY
01 E
4

n
Ja

.2 FY
01 E
3

n
Ja

.2 FY
01 E
2

n
Ja

.2 FY
01 E
1

0

ARPU → Total Trading Amount includes Trading Fee / Active members
NOTE : Total Trading Amount includes Trading Fee(C) 2015 ENIGMO,INC. All rights reserved.

16

To achieve medium term targets(C) 2015 ENIGMO,INC. All rights reserved.

17

medium term targets
In order to achieve an operating profit of 3 billion yen in FYE Jan.2017, and 5 bilion yen in FYE Jan.2019

FYE Jan.2016 will be a period for INVESTMENT
operating proﬁt(Unit:¥MM)

6,000

5,000

5 billion

4,000

3,000

3 billion

investment
2,000

1,000

336
0

1200
milionFYE
Jan.2015

700
milionFYE
Jan.2016

FYE
Jan.2017

FYE
Jan.2018

FYE
Jan.2019

Forecast for Advertisement costs in FYE Jan.2016
1200 million Yen ( 140 million Yen FYE Jan.2014 ）(C) 2015 ENIGMO,INC. All rights reserved.

18

Plans and measures to achieve medium term target

Current

Objectives

FYE Jan.2015

FYE Jan.2017

FYE Jan.2019

20.6 Billion YEN

44 Billion YEN

72 Billion YEN

Revenue

2.3 Billion YEN

5 Billion YEN

8.2 Billion YEN

Operating proﬁt

1.2 Billion YEN

3 Billion YEN

5 Billion YEN

Active Members

510,000

1,100,000

1,800,000

40,166YEN

40,000YEN

40,000YEN

Total Trading amount
NOTE : Total Trading Amount includes Trading Fee

ARPU(C) 2015 ENIGMO,INC. All rights reserved.

19

Plans to achieve our medium term target and responding measures
TWO MAIN MEASURES
To achieve the target number of active membershipTo achieve target ARPUFYE Jan.2015

FYE Jan.2017

FYE Jan.2019

FYE Jan.2015

FYE Jan.2017

FYE Jan.2019

500 thousand

1.1 milion

1.8 milion

40,166 yen

40,000 yen

40,000 yen

Membership
acquisition measures

High ARPU
achieving measures(C) 2015 ENIGMO,INC. All rights reserved.

20

Measures to acquire membership / target users
The number of Female fashion EC (e-commerce) users-BUYMA’s main customer- amounts to 12.74 million(expected to grow further with the increase in percentage of EC users)

Femalepopulation(ages 18-59 ) ※1

31.84million

Femaleinternet
usage※2

Percentage
of Fashion EC
site usage

95.7%

※3

41.8%

※1 Ministry of Internal Affairs and Communications, Bureau of statistics “2013 estimated population”※2 Ministry of Internal Affairs and Communications, Survey on use/mode of communication, the trend in use of the internet according to gender and age※3 Own survey “Survey on EC site (conducted 2015.1.30-2.1), the percentage of those who browsed through fashion related shopping sites in the past 6 months(C) 2015 ENIGMO,INC. All rights reserved.

21

Measures to acquire membership / target users
The number of BUYMA target users is

10 million (female only)

100%!

BUYMA recognizing group ※１

50%!

25%!

Fashion EC user

75%!

A . has experience in buying from EC site
27.9%

BUYMA non-recognizing group

75.0%

B . has never bought from EC site,
but would like to if there is anything appealing
29.4%

target users

25.0%

10 milion

C . do not know of EC site that may be interesting/appealing
9.5%

12.7 milion

D . do not wish to buy(do not wish to buy such products on the internet)
33.2%
0%

Fashion EC user

Notion of those who do not know BUYMA(on buying import brands on EC sites) ※2※1 Own survey “Survey on EC site (conducted 2015.1.30-2.1, those surveyed- BUYMA site viewers)/ Survey on BUYMA recognition※2 Own survey “Survey on EC site (conducted 2015.1.30-2.1, those surveyed- BUYMA site viewers)/ Survey on notion towards buying import brands on EC sites (for those who did not know BUYMA)(C) 2015 ENIGMO,INC. All rights reserved.

22

Measures to acquire membership / Measures to reach 10 million people ①
Short-term measure

10 million potential customers

Conduct a mass campaign to theCampaigns such as TV commercials Move into an expansionary phase fromtargeting core fans to “the mass”
BUYMA active members(FYE Jan.2019)
Approx. 1.8 million

Target users
10 million

BUYMA active members(FYE Jan.2017)
Approx. 1.1 million

1.8 milion
1.1 milion

BUYMA active members(FYE Jan.2015)500
thousandApprox. 500 thousand(C) 2015 ENIGMO,INC. All rights reserved.

23

Measures to acquire membership / Measures to reach 10million people ②
Medium-term measure

Acquired “Rocket Venture”, a company operating a curation media for women・Famous models (curators) write articles
・By using four-framed articles, it is a media specialized in Smart phones
・Native advertisement s with a focus on quality

Curation media for young females

A curation media for home makers and mothers

To those women in their 20s- 30s

Moms and “pre-moms”

who are sensitive to the most recent trends

who are sensitive to stylish items and wish to stay cute and stylish(C) 2015 ENIGMO,INC. All rights reserved.

24

Measures to acquire membership / Measures to reach 10million people ②
Medium-term measure

4meee! and 4yuuu! achieved monthly visits of 6 million,
and PV of 70 million without special promotion
Expected to reach the December 2016 target of 30 million ahead of schedule(Unit：No. of visitors)

7,000,000

6,000,000

X 6.6 Growth within 2 Months
5,000,000

4,000,000

3,000,000

2,000,000

1,000,000

0
3 months ago

2 months ago

the last 1 months
Acquired Rocket Venture(Feb. 10, 2015)(C) 2015 ENIGMO,INC. All rights reserved.

25

Measures to acquire membership / Measures to reach 10million people ②
Medium-term measure

A continuous inflow path that is not dependent on advertisements
In addition to the customers we have been acquiring through SEO and Ad Tech (those who came to the EC sitewith a specific purpose), Collaborate with media catering to females (4meee!/ 4yuuu! – these sites aim to have

30 million visitors by December 2016) so that BUYMA can reach its target of 10 million potential customers.
Media by Rocket Venture, which attracts users
in different stages of their lives and with different hobbies

Media forwomen in their 20s- 30s

Media forMedia for mothers,
mothers to be (“pre-moms”)

The many curators from these two websitesthat have different perspectives will rediscover
the attractiveness of BUYMA’s extensive productlineupPotential customers
who are keen
about fashion trends,
with varying tastes
and from different
age groups

Customersof objective
buyng

SEO
Ad
Technology

applicationinteroperability(C) 2015 ENIGMO,INC. All rights reserved.

26

Measures to raise ARPU / perception of people towards BUYMA
People do not know the extensive product lineup of BUYMA
People have a perception that BUYMA only provides special items such as those notintroduced in Japan or those already sold out , and do not recognize that there aremany items that are affordable and for daily use
Perception of people towards BUYMA ※１80%
A . can buy items not introduced in Japan

73.1%

73.1%

B . can buy items that have already been sold out in Japan 31.7%

60%

40%
31.7%

C . can buy the new releases of that brand

29.1%

D . is less expensive than the domestic price tag

23.7%

E . can buy luxury brands cheaper

22.6%

F . there is an extensive lineup of “in-trend” items

19.8%

G . there is an extensive lineup of affordable items

13.4%

H . there is an extensive lineup of items for daily use

7.2%

29.1%
23.7%

22.6%
19.8%

20%

13.4%
7.2%

336
0%

A

B

C

D

E

F

G

H

※1 Own survey “Survey on EC site (conducted 2015.1.30-2.1, those surveyed- BUYMA site viewers)/ Survey on BUYMA recognition(C) 2015 ENIGMO,INC. All rights reserved.

27

Measures to raise ARPU / on BUYMA’s product lineup
Many items of various price ranges are exhibited in BUYMA
Actual numbers of exhibited items in FYE Jan.2015
Less than 10 thousand Yen

10 to 20 thousand yen

20 to 40 thousand yen

40 to 100 thousand yen

More than 100 thousand yen

900 thousand over

850 thousand over

600 thousand over

450 thousand over

250 thousand over

Petiteprice
brandsUNRELEASEDBRANDSIN JAPAN
FROM BUYMA

Trend
items

LUXURY
BRANDS

Accessible
brandsRare
items(C) 2015 ENIGMO,INC. All rights reserved.

28

Measures to raise ARPU / increase conversion
In addition to conveying messages through mass campaigns,
we set up a fashion media website “STYLE HAUS”
The CVR of the users visiting BUYMA from the STYLE HAUS website was 4.5 times the CVR of all of theviewers coming to BUYMA

Comparison of CVR towards BUYMA(Unit：times)

5.0※Magnification of the comparison of the conversion rate from user flow
※Term:February.2015

4.5

4.0

3.0

2.0

1.0

1.0

0.9
0.8

0.8

searchengine

Ads

336
0.0

BUYMA
Total

Blog

STYLE HAUS

(C) 2015 ENIGMO,INC. All rights reserved.

29

Measures to raise ARPU / Enrich merchandizing capabilities
Low price items not performing as favorably because of weak Yen
Increase handling of high-quality but inexpensive items in FY2016
Low price items will contribute to acquiring
new members (51% of new members purchase less than 10 thousand yen items)
Breakdown of the number of items by price range
Price rangeyoyLess than 10 thousand Yen

84.9%

10 to 20 thousand yen

118.5%

20 to 40 thousand yen

106.8%

40 to 100 thousand yen

104.4%

More than 100 thousand yen

113.5%

Composition ratio of the purchase amountof the first user
(Results for FYE Jan. 2015)
40 to 100 thousand Yen

6.87%

More than
100 thousand yen

2.23%

20 to 40thousand Yen

15.38%

10 to 20
thousand Yen

23.84%

Less than
10 thousand Yen

51.69%(C) 2015 ENIGMO,INC. All rights reserved.

30

Measures to raise ARPU / raise repeat %Implemented various measures for members to increase their buying frequency"Returned Goods Compensation" system"Premier Members" service

Services to guarantee the wrong size or large difference between thecustomers imagined and the real items

Service program to provide additional point and special services tothe members categorized into 3 types depends on the total purchaseamount(C) 2015 ENIGMO,INC. All rights reserved.

31

Plan and measures to achieve medium term target
Measures toacquire members

Measures toincrease ARPU

Continue to strive to reach 10 million

Sustain a high ARPU by increasing
the numberof transactions

short term

Convey the message that there is extensive product lineup

Mass campaigning

STYLE HAUS

medium term

Collaboration with 4 meee! and 4 yuuu!
to induce those users (targeting 20
million) to come to the BUYMA site

Enrich MD

low-price items
measures to increase purchase frequency(high repeat)

Return-guarantee service
Premium members

Total Trading Amountincludes Trading Fee

Target Active Members

Target ARPU

11th Period,
at FYE Jan.2015

510 thousand members

40,166 yen

20.6= trillion
yen

13th Period,
at FYE Jan.2017

1.1 million members

40,000 yen

44= trillionyen

15h Period,
at FYE Jan.2019

1.8 million members

40,000 yen

72= trillion
yen(C) 2015 ENIGMO,INC. All rights reserved.

32

GLOBAL
In 2015, you can buy and sell on BUYMA, anywhere in the world(C) 2015 ENIGMO,INC. All rights reserved.

33

GLOBAL / market size of the global fashion market
Global fashion market will reach 325 trillion yen by 2020

※1

Start implementing measures to respond to the rapidly growing English/Chinese speaking market
102 trillion yen for English speaking market (a 27 trillion yen increase), 11.03 trillion yen for Chinese speaking market (a 60.2 trillion yen increase)(Unit：trillion yen)

350.0!
325 trillion yen

English speaking market

300.0!

.5

8

English speaking market(USA, GBR, etc…)

102.0

1

250.0!

Start theBUYMA Global site206.1 trillion yen

6Chinese speaking market

1.3

200.0!
English speaking market

Chinese speaking market(USA, GBR, etc…)

75.0(CHN, HKG, TWN, etc…)

110.3

2

Chinese speaking market
100.0!

.20

150.0!

Develop business in the
Chinese market by utilizing
the 4 meee! Chinese website(CHN, HKG, TWN, etc…)(JPN, KOR, RUS, FRA, etc..).3

Others

1

50.0!

8

50.1
Others(JPN, KOR, RUS, FRA, etc..)

112.0

81.1
0.0
2013

2020

※1 Ministry of Economy, Trade and Industry “Report on performance of the fashion industry and the quantitative analysis of the spillover paths and effects related to trend setting by Cool Japan”(C) 2015 ENIGMO,INC. All rights reserved.

34

GLOBAL / BUYMA GLOBAL (for English speaking market)
Even though we only have a Japanese site, because of our wide range of products and the high SEO
effect, there are already inquiries from overseas users accessing our site, and sales of several hundred
million yen is expected. (76.3％ of Personal Shoppers can communicate in English ) ※1

Breakdown of non-Japanese users who wish to use BUYMA ※2

Inquiries from overseas customers
hi, I really like a coat on the buyma website. do you ship
to uk? and is there a version of the website in english?

!

Others 35%

I would very much like to purchase some paule ka
clothes and was wondering do you ship to Australia
and is there a version of your website available in
English please?

English 48%
Korean 4%

Chinese 13%

Dear, I am interested to purchase the following product but
I do not speak Japanese therefore I don't know if you
have it in stock. Details are as follows; / Model: Moncler
Grenoble ALBI / Color: Dark Navy (with burgundy red lining
details) / Size: 48 (2)Strategic steps for the BUYMA GLOBAL site!

“acquire” those nonJapanese users alreadyvisiting the Japanese site

Grasp customers’needs
and conduct SEO measures
for the English speaking
market on a full scale

Choose target countries
among those in the
English speaking market

Expand success cases
to other countries※1 Own survey “Survey on EC sites (Conducted January 30th －February 1st, to BUYMA exhibitors, on what language they can communicate in※2 Own survey “Survey on BUYMA (conducted Dec 17, 2013－May 15, 2014, Target: overseas residents accessing the BUYMA site, Percentage of people replying “yes” to the question“would you use the BUYMA site if there is an English version”)(C) 2015 ENIGMO,INC. All rights reserved.

35

GLOBAL / BUYMA GLOBAL (for Chinese speaking market)
Collaborate with 4meee! Chinese version to gain the booming Chinese fashion market
The EC purchase amount (cross border, Chinese buying from Japan) is expected
to reach 876.6 billion yen (230.4% increase) by 2020
Japan to China cross-border EC market
will reach 876.6 billion yen by 2020
Transition in amount of cross-border purchases ※1

Expansion in “explosive purchases” ofbrand items by Chinese people

There is high interest towards Japanesefashion－Japanese fashion magazines(in Japanese, non-translated)
are stacked in bookshops

Luxury brand markets in the world ※2（Unit：Bilion Yen）

2,000

7
2
2

1,600

.6

%

1,837.3

JPN→CHN
876.6

%

1,200
800

2

4

.7

Others
54%

2

807.2
JPN→CHN%.40
3

JPN→CHN

12 trillion
430 billion yen

USA→CHN
960.7

2

400

390.2

Chinese
46%

417.0

0

2013年

※filming location; bookshop in Hong Kong

2020年

Strategic steps for the Chinese speaking user site
Acquire potential customers
through expansion of the Chineseversion of a Japanese fashion info
providing site “4meee!”Start service of BUYMA to theChinese speaking market. Handle
brands from Japan in addition tobrands from othercountries

Expand recognition and capture
continuous inflow of users through4 meee! and SEO towards the
Chinese speaking market※1 Ministry of Economy, Trade and Industry “Market survey on E-commerce (FY 2013)”※2 Kyodo News(C) 2015 ENIGMO,INC. All rights reserved.

36

Global measures / KFS
To become a website that is selected by the affluent in emerging countries
and by choosy US and European consumers

The one and only C2C service in the world that combine 2KFSs

１

Overwhelming
amount of items

2

A sense of trustthat one can buy in a safe
and secure manner“fake/imitation items” is 0.001% or less.
Number of registered brands※If it happens, Enigmo will compensate on the damages.!

Goods return warranty

Compensation for loss

Payment after delivery

Initial defective items exchange

Price Range!

Authenticity guarantee

Personal shopper system

From petite price to luxury items“Patrol” by BUYMA’s “Safe and Secure transactions committee ”

approximately 6,000

Customers’ voices ※1
It’s really helpful because I can look for what I needwhenever I need them
It’s really fun because can I look for not only my own items
but also my husband’s and kid’s items.
You get hooked because you can browse through fancy items
that you wouldn’t find in Japan You can always find what you
are looking for!

Customers’ voices ※1
There is a rich lineup of items like no other site. The site ishighly trusted by those in the industry and I can feel comfortablebuying from the site as we almost hear of no incidents oftroubles. Information on the shoppers is also easy to recognize
and the site is user friendly, including its after-care service.
The No.1 reason why I buy at BUYMA is because I feel safe andsecure. There is higher incidence of fraud on internet shoppingsites (especially for luxury brand items). In that sense I can feelsafe because BUYMA has a solid system so that I could truly
enjoy shopping.

※1 Own survey “Survey on BUYMA (conducted Jan. 31, 2015 – Feb. 1, 2015, Target; BUYMA visitors, “Images for BUYMA” )(C) 2015 ENIGMO,INC. All rights reserved.

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Global / BUYMA (South Korean Market)
Have established a high sense of trust
where you could purchase luxury brands safely
Relatively expensive items are selling well in the South Korean Market
where BUYMA’s secure system is highly appreciatedChanges in BUYMA KOREA’s transaction amountpurchase unit price 51,424yen（10KRW 1YEN）※Japan BUYMA 19,254YEN

Launched in April 2014

Apr

May

Jun

Jul

2014

Aug

Sep

Oct

Nov

Dec

Jan
2015

Voices from customers (periodic survey)국내에서 품절되어서 구하기 어려운 제품이었는데
관세까지 포함해도 저렴한 가격으로 구매해서 좋네요 ㅎ사이즈도 다행히 딱 맞고판매자 분께서 사소한 것 까지 신경 써주시는점에 일단 너무감사했습니다!다음에 또 방문하도록 하겠습니다 :)I was able to buy an item that was sold out in Korea
at a cheaper price, even including customs duty
(a Celine handbag)

Since I was able to discuss my shoe size with the personal shopper,
the sneakers I bought fit me perfectly (Sneakers from Prada)(C) 2015 ENIGMO,INC. All rights reserved.

38

Global / medium term target
The global fashion market will grow to a size of 325 trillion yen by 2020 ※1

325 trillion yen
in 2020206.1 trillion yen
in 2013
Medium to long term target!
global business!
!
100 billion yen
English speaking market+ Chinese speaking market+ Korean speaking market※１ Ministry of Economy, Trade and Industry “Report on performance of the fashion industry and the quantitative analysis of the spillover paths and effects related to trend setting by Cool Japan”(C) 2015 ENIGMO,INC. All rights reserved.

39

Group companies(C) 2015 ENIGMO,INC. All rights reserved.

40

Group companies / Rocket Venture
Among the 40 candidate companies,
Decided to acquire Rocket Venture in February 2015, to make it a subsidiary of ENIGMO

・Famous models (curators) write articles

Aim・By using a four-framed article, it is a media specialized in
Smart phones
・Native advertisement s with a focus on quality

Media forwomen in their 20s- 30s

Media forMedia for mothers,
mothers to be (“pre-moms”)

1.

To reach potential BUYMA
customers

2.

To accelerate BUYMA’s
development into the Asianmarket3.

To establish a new revenue
stream in media business(C) 2015 ENIGMO,INC. All rights reserved.

41

Forecasts of FYE January 2016(C) 2015 ENIGMO,INC. All rights reserved.

42

Earnings Forecasts
In FYE Jan. 2016, Enigmo Inc. will aggressively invest inadvertisements to increase the awareness of BUYMA.
(Unit:¥MM)

Forecast for the results of
FYE Jan.2016(Non-consolidated)※1

Results of
FYE Jan. 2015
(Non-consolidated) ※1

yoy

Total Trading amount

31,52920,684152.4%

Revenue

3,436

2,285

150.3%

Operating profit

702

1,196

58.7%

Ordinary profit

702

1,200

58.5%

Net profit

432

708

61.0%

20.27

33.64

NOTE : Total Trading Amount includes Trading Fee

Earnings per share（Yen)Dividend Per Share

━

━

━
━

※1 As we acquired Rocket venture on February 17, 2015, we would like to disclose consolidated figures, including the company’s earnings forecasts and the depreciation of goodwill of the company,
as soon as it is calculated by rational method.

(C) 2015 ENIGMO,INC. All rights reserved.

43

Medium term Commitment

FYE Jan.2019

Operating Profit :5 billion yen(Total trading amount is estimated at 72 billion yen)FYE Jan.2017

Operating Profit :3 billion yen(Total trading amount is estimated at 44 billion yen)

NOTE : Total Trading Amount includes Trading Fee(C) 2015 ENIGMO,INC. All rights reserved.

44

Corporate Vision

No.1 in Social Commercee-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 thecommerce 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 position as No. 1 in “Social Commerce”
And by doing so, will provide a new lifestyle to as many individuals all around the world(C) 2015 ENIGMO,INC. All rights reserved.

45

This reference material is provided in order for you to have a better
understanding of our business and is not intended for solicitation
purposes.
!
Information and projections of future performance include theCompany’s judgments premised on information available at thetime of preparations. Assumptions contain uncertainties and actual
results may differ from these projections due to a variety of factors.

(C) 2015 ENIGMO,INC. All rights reserved.

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