Supplementary Financial
Statement
for the Second Quarter of FYE January 2021

02

Highlights forthe first half of the year

03

Highlights for the first half of the year – Transactions

Overall trading volume for April decreased suddenly (78% YoY) due to the impact of
the coronavirus (COVID-19), but from May onward made a V-shaped recovery
From June onward, overall trading volume exceeded 130% YoY,
with this high rate of growth continuing
140%

130%

120%

110%

100%

90%

80%

70%FebMar
1Q

YoYAprMayJun2QJulAug
3QTotal YoY04

Highlights for the first half of the year – Business performance

During the second quarter alone, growth in terms of both turnover andoperating profit accelerated (exceeded 120% YOY)

Accounting period for the first quarter( Feb - Apr )Accounting period for the second quarter( May - Jul )TurnoverTurnover1.34 billion JPY

1.62 billion JPY(YoY 98%)(YoY 122%)

Operating profit

Operating profit

476 million JPY

650 million JPY(YoY 79%)(YoY 123%)05

Highlights for the first half of the year – Review of the first half of the year

Took measures to respond promptly to changes in the business environment
caused by COVID-19
Achieved a high level of growth by avoiding the negative impacts
and benefiting from favorable conditions for EC•Distribution became affected by COVID-19, so we promoted andnormalized the switch to private courier services•

Implemented effective MD measures, and benefitted from favorable
conditions in the form of an increasing EC ratio, leading to a major
growth in trading volumes, both domestic and global•Measures underway to improve cooperation with corporate sellers•More widespread use of Marketing Automation tools•Made new investments in line with the Specialty Marketplace strategy*,
improved furniture business, and commenced wine business•Temporarily suspended TRAVEL business in view of the COVID-19
situation

BUYMA business

New services /businesses*See p. 30 - 32

06

Highlights for the first half of the year – Summary of business performance

As a result of a strong business performance during the accounting period for thesecond quarter, the total overall trading volume recovered from delays experienced in
the accounting period for the first quarter, to 111% YoY
Operating profit also recovered to the same level as the previous year

FYE January 2021
Period total for the second quarter(actual results)

FYE January 2020
Period total for the second quarter(actual results for the previousperiod)

Overall trading volume *Includes fees
for settlement of payment

25.6 billion yen

23.08 billion yen

111.0%

Turnover2.96 billion yen

2.69 billion yen

110.0%

Selling and administration costs

1.29 billion yen

1.08 billion yen

119.5%Of which is labor costs

545 million yen

473 million yen

115.1%Of which is advertising costs

519 million yen

431 million yen

120.3%

Operating profit

1.12 billion yen

1.13 billion yen

99.5%

Ordinary profit

1.12 billion yen

1.11 billion yen

101.1%

Profit

783 million yen

774 million yen

101.1%

YoY*Includes costs associated with temporary workers, outsourced work, etc.

07Highlights for the first half of the year – Transitions in major KPI

Major KPI remained strong
Number of BUYMA members (unit: people)
7,302,929
6,139,853
4,987,585
3,998,041

Number of active BUYMA members (unit: people)
7,920,1726,695,861

1,098,542
885,308

5,504,196

969,641

1,024,889

1,153,475
1,128,313

1,208,262

933,472

769,542

4,452,434

3,486,313

FYE January
2017

FYE January
2018

FYE January
2019

FYE January
2020

Second quarterof FYE January
2021

BUYMA overall trading volume (unit: million yen)FYE January
2017

FYE January
2018

2,374,841

FYE January
2017

Second quarterof FYE January
2021

2,544,540

2,058,758

45,533

14,828FYE January
2020

BUYMA number of transactions handled (unit: no. of transactions)

53,27633,727FYE January
2019

1,853,817

37,10916,673FYE January
2018

19,644FYE January
2019

23,080FYE January
2020

25,608875,893

Second quarterof FYE January
2021

FYE January
2017

1,001,996

FYE January
2018

1,132,379

FYE January
2019

1,225,751

FYE January
2020

1,303,178

Second quarterof FYE January
2021

Performance for the second quarter of FYE January 2021

*Overall trading volume: Includes fees for settlement of payment, etc.; active members: Number of members who have made one purchase or more within the past year08

BUYMA(Japanese language version)09

Japanese language version – Overall trading volume

Overall trading volume levelled off during 1Q due to the impacts of a slump in
consumption and disruption to distribution networks caused by COVID-19, butbounced back to high growth during 2Q as a result of measures taken to address thesituation and the effects of a general shift to EC
15,000Growth of123% YoY
12,50010,000

7,500

5,000

2,500

01Q
(Unit: million yen)FYE Jan. 2020

2Q
FYE Jan. 2021

10

Japanese language version – Unique users (UU) and ARPU

Unique users (UU) 120% YoY during 2Q
Growth trend for ARPU during both 1Q and 2Q

Number of UU (people)

ARPU (yen)500,000

40,000400,000
30,000300,000
20,000200,000

10,000100,0000

FYE Jan. 2020

FYE Jan. 2021
1Q

Number of UU (left axis)

FYE Jan. 2020

FYE Jan. 2021

02Q
ARPU (right axis)

11

Japanese language version – New members (status of first-time purchases among new members)

Actively deployed measures to acquire new members
During 2Q, there was an increase in purchases of luxury brand products among firsttime buyers, and we cultivated a new class of EC users

Overall trading volume for luxury brands when
new members make a first purchase

Number of newly registered members
400,000

1,500

Growth of
122% YoY

Growth of145% YoY

300,000
1,000

200,000

500
100,000

001Q
No. of new members (people)

2Q
FYE Jan. 2020

FYE Jan. 2021

1Q
Overall trading volume (million yen)

2Q
FYE Jan. 2020

FYE Jan. 2021

12Japanese language version – Status of corporate sellers

Promoted a Specialty Marketplace strategy in which individuals and companies coexist*
Coordination with corporate sellers is improving, with the overall trading volume for items
listed by companies expanding rapidly during 2Q*See p. 30 - 32

Overall trading volume(million yen)

Ratio of items listed by companies(based on overall trading volume)

2,500

15%

2,000

10%
1,500

1,000
5%
5000

FYE Jan. 2020

FYE Jan. 2021
1Q

Overall trading volume

FYE Jan. 2020

FYE Jan. 2021

0%2Q
Ratio of items listed by companies

13

Measures for the second half of the year

Measures for the second half of the year

For buyers‣ Efficient and well-balanced marketing mix, from the acquisition of brandrecognition to measures to cultivate new users‣ Improvement of SNS marketing‣ Improvement of coordination with owned media (STYLE HAUS)‣ Improve LTV and optimize costs through the utilization of BigData/MA tools‣ Expansion of high-satisfaction low-cost product range

For sellers‣ Develop a stable distribution network‣ Improve coordination with appealing companies and major sellers around theworld‣ Develop and improve tools to help streamline the activities of personal
shoppers‣ Find and nurture sellers who will focus on categories which will form newbusiness pillars

14GLOBAL BUYMA(English language version)

15

GLOBAL BUYMA – Overview

Focus on America
Number of registered members grew steadily (121% YoY)

Number of registered members

147,000SexFemale

60% Male 40%

Average price of items

56,645 yen
Breakdown of delivery countries

United States:

55%

Hong Kong:

13%

Australia:

3%

Singapore:

3%

Taiwan:3%

Canada:3%

Other:

20%*Total for the second quarter of FYE January 2021
(based on order amount)

16

GLOBAL BUYMA – Measures undertaken in the first half of the year

Redesigned the website and made improvements to product detail pages
CVR and average purchase price rose following the changes‣ Improved sense of uniformity and credibility through a
new localized layout and design aimed at NorthAmerica‣ Established routes leading to a smooth conversion byemphasizing the fact that BUYMA is a site wherepeople can buy authentic items, as well as ways inwhich to make use of BUYMA

Impressions of BUYMA*Luxury‣ The brand association of BUYMA = an excellent place

Aﬀordable

to purchase luxury items continues to take root amongusers of GLOBAL BUYMA

Cross-border
Other
0%

20%

40%60%*Source: Survey administered by this company (some questions had multiple answers)

17

GLOBAL BUYMA – Transitions in overall trading volume

While trading volume decreased in April due to the impact of COVID-19, it shot up fromMay onward due to the effects of improvements to UI/UX beginning to be felt, such as theredesign of the website, as well as the success of various campaigns and other measures

GLOBAL BUYMA overall trading volume

2020/2

2020/32020/42020/52020/62020/718

Status of M&A19M&A Policies

Continue to give proactive consideration to M&A proposals that will revitalize BUYMA andhelp us gain a foothold for participation in new growth markets

Challenge 2025 - Positioning Map

Extraordinary

D2C specialist EC

Specialty Marketplace
Brand direct
sales EC

Brand-intensive
EC

Limitedproduct lineup

Diverseproduct lineup

Marketplaces based on
general mall-type model(Rakuten, Amazon)

Ordinary20

M&A performance

Make inroads into new categories and improve growth categories through investments
Expand the Specialty Marketplace* while controlling risks*See p. 30 - 32Minority investment, April 2020 (third party allocation of newshares): Made a minority investment in Liaison Co., Ltd., acompany which imports and sells wine

‣ Wine became available to purchase on BUYMA from June 2020

Minority investment, August 2020 (transfer of shares and third
party allocation of new shares): Made a minority investment inSubsclife Inc., a company which plans, develops andadministers subscription services for furniture‣ Aim to expand share in the furniture market using

Subsclife’s strengths in to B and our strengths in to C21

Forecast22

FYE January 2021 – Forecast for the whole year

Regarding forecasts for the full year
The overall trading volume in our social commerce business during the accounting
period for the second quarter of FYE January 2021 was 123.3% YoY, with the overall
trading volume for the accounting period also recovering from the slump experienced in
the first quarter (111.0%), and now remains at a robust level.
However, uncertainty remains as to when the spread of the novel coronavirus(COVID-19) will begin to subside, and major changes are taking place in consumer
behavior in line with people’s new lifestyles.
In contrast to the accounting period for the first quarter, the overall trading volume rose
greatly during the accounting period for the second quarter, and turnover and profits at
all stages also greatly exceeded the previous year. However, given the difficulty ofcalculating accurate and logical forecasts for trends in demand from the third quarter
onward, we have decided to continue postponing the publication of our forecast for FYE
January 2021 until a later undecided date.
We will issue our forecasts for FYE January 2021 when it becomes possible to makereasonable predictions based on the data at hand.

23

These presentation materials are provided solely for the purpose of better
understanding of our company and are not intended for the purpose ofsolicitation.
Forward-looking projections and forecasts contained within this document
are made based on information available as of today.
Actual business performance may differ from projections due to risks anduncertainties in the future.

24

Appendix

25

BUYMA – Content of business

A Specialty Marketplace that brings individuals and companies from around the world
together and provides them with a special purchasing experience andlimitless encounters with fashion items
Number of items listed

More than

5.08 million items

Number of personal shoppers

158,000 people
Countries of residence of personal shoppers

163 countries
Average purchase amount

19,650 JPY
Average age of users

34.0 years
Users by sex

Female:70.9% Male: 29.1%*As of the end of July 202026

Company Profile

Company Name

Enigmo Inc.

Main Business

Management of social shopping site "BUYMA"

Location

NMF Aoyama itchome Bldg. 6F 8-1-22 Akasaka, Minato-ku, Tokyo

Date of Establishment

February 10th, 2004

RepresentativeRepresentative Director and Chief Executive Officer Shokei Suda

Capital381.9 million yen

Listed Market

Tokyo Stock Exchange First Section (Ticker：3665)

Number of Employee

108 people *As of the end of July 2020

Accounting PeriodJanuary 31stMajor Shareholder

Executive officers & Sony Corporation

27

Company ProfileFebruary 2004

“Period of foundation” – 1st stage of foundation

Commencement of BUYMA services

Number of members:
0 – 100,000 people– Founded in February 2004
– BUYMA released in February 2005, the following year, under the theme of “It has value, no matter whereyou are”

February 2006

“Period of expansion” – 2nd stage of foundation

Increase of capital / diversification of lines of business

Number of members:
100,000 - 800,000 people– February 2005 - March 2006 Implementation of capital increase through third-party allocation– BUYMA, which had achieved a positive balance on a monthly basis in 2008, grows into our company’s
main line of businessFebruary 2012

“Period of transition” – 3rd stage of foundation

Structural reforms

Number of members:
800,000 – 1.7 million people– 2012 - Heavy concentration of management resources on BUYMA– July 2012 - Listing of company on TSE Mothers

February 2014
Japanese, English and Korean
language versions of the site

“Period of globalization” – 4th stage of foundation

Commencement of global expansion /path to becoming the “No. 1 overseas online retailer”– December 2013 - Release of BUYMA Korea, the Korean language version of the site

Number of members:
1.7 million – 7.3 million people(as of the end of January 2020)– February 2015 - ROCKET VENTURE, a service which administers media aimed at young women, isacquired as a subsidiary company (liquidated in January 2018)– October 2015 - Release of BUYMA, the English language version of the site
– March 2016 - BUYMA KOREA is acquired as a subsidiary company (liquidated in September 2017)– July 2018 – Release of BUYMA TRAVEL– April 2019 - Listing in the First Section of the Tokyo Stock Exchange

28

Structure of business operationsofSHOP

1

List item

2
Point

Point
Purchasing after
the order has
been received

3

Purchaseitem

4t
en ofm - e)tle % ricet (5 pr s t on
fo en tie m acFe pay ansrof e tthFco eent unr
tra act derns( aac 5% gretio 〜 em7 enpr % ntoice) f theJapanese and English
language versions of the site

Order item

Original payment
systemDispatch item

[Sellers][Buyers]

Personal shoppers
Premium personal shoppers
Shops

Regular members
Premium members

Turnover generated from fees paid by both parties involved in the transaction
Buyers: Around 5% of the item price (+ other optional fees)
Sellers: Brokerage fee of 5% – 7% of the item price (depending on the status of the item)

Premium personal shoppers：

Shops：

Those among excellent personal shoppers who have cleared certain criteria andresponded to our invitation

Business operators that have met the criteria for selling items through BUYMA

Premium members：
Determined according to the amount of purchases made during the past 6 months. Platinum stage members: (total purchase amount of 300,000 yen or more)/Gold stage members: (totalpurchase amount of between 150,000 yen and 300,000 yen)/Bronze stage members: (total purchase amount of between 70,000 yen and 150,000 yen)29

Specialty Marketplace – Definition (1/2)

We have redefined BUYMA as aSpecialty Marketplace

A Marketplace which constructs a platform breaking down the boundaries between
companies and individuals by giving full play to a diverse range of expertise in
specialized categories, and which creates special experiences for both sellers andbuyers in a whole new way.

Product genres of all kinds
C2C / B2C

Specialty Marketplace(UBER, Airbnb, etc.)(Malls, flea markets, classified ads, etc.)

Transition from an “all-genre” to a specialty market place
C’s expertise increases, resulting in coexistence between C and B30

Specialty Marketplace – Definition (2/2)

BUYMA is not suited to mass produced products of a kind used on a day to day basis.
Rather than easily available items that one can obtain anytime, anywhere, BUYMA targets
special items inhabiting the realm of the extraordinary, such as sought after brands, things
which are a joy to obtain, and other products which people crave to own.
Today fashion, tomorrow travel… As a Specialty Marketplace, BUYMA aims to inhabit aunique position in this realm of the extraordinary, providing a broad range of items andservices from around the world.

Realm of the everyday

Realm of the extraordinary

As the realm of the everyday becomes more convenient, people tend to spend moremoney and time exploring the realm of the extraordinary31Specialty Marketplace – Strategy

1 Based on the concept of BUYMA as a Specialty Marketplace, provide a diverse range of options and special items /experiences from all corners of the world in fashion, travel and the realm of the extraordinary, and help people achieve
new lifestyles through a formidable product lineup found nowhere else.
[Expansion in scale]2

Improve profitability through the provision of related services that possess value for many BUYMA users.
[Improvement of profitability]

3

Expand BUYMA overseas to become a much-loved brand among people around the world.
[Growth in the medium and long term]

TravelFashionOverseas
expansion

New32