June 12, 2020
For the attention of all interested parties
Company name: Enigmo Inc.
Name of representative: Shokei Suda, representative director and chief executive officer(TSE, 1st Section: 3665)
Enquiries: Yoichi Kaneda, Director and General Manager of Corporate Operations
TEL. 03-6894-3665

Notification concerning the Impacts of the Novel Coronavirus (COVID-19)
on our Business Performance
We would like to begin by expressing our deepest sympathies to all those affected by the novel
coronavirus (COVID-19) and their families. Also, we wish to express our utmost respect and gratitude
to those frontline medical professionals devoting themselves to treating people and saving lives, aswell as the many other people caught up in the fight against this virus.
Many people throughout the world have been infected with COVID-19, and efforts to curtail thespread of the virus are ongoing, making the situation highly unpredictable. Amidst these circumstances,
we have been continuing our business activities with the support of customers around the world. In
doing so, we have placed utmost priority on ensuring the safety of all our employees.
The business environment in the current first quarter remains highly changeable, and there are someaspects which we cannot convey through our regular financial statements alone. As such, the followingpress release provides details on how we have been affected by COVID-19 and the responses we havetaken.
Details
1. Regarding business operations
When we published of our financial results on March 16, 2020, Italy and Spain were already in astate of lockdown. Following this, a series of lockdowns were enforced in cities in many of BUYMA’smain purchasing countries, including the whole of Europe, the United Kingdom and the United States.
However, local personal shoppers found a variety of ways to cope with the situation, and switched topurchasing from locations other than physical stores, thanks to which the impacts of the lockdown
were limited.
On the other hand, our services were greatly affected by the suspension of international mail fromvarious countries. This uncertainty surrounding delivery created a sense of hesitancy amongpurchasers, meaning that personal shoppers were unable to receive orders. What is more, the Tokyo
Metropolitan Government and Government of Japan both issued states of emergency, leading tohesitancy among purchasers to buy some items, especially those worn when going outside. As a result,the overall trading volume for April dropped by around 80% compared with the previous year.

The suspension of international logistics was a crisis for BUYMA. However, the distribution
networks of private logistics companies were still functioning normally, so we encouraged sellers toswitch to this alternative method of delivery. Increased delivery costs proved to be an impediment tothis switchover, however, so we negotiated with several firms to provide BUYMA users with delivery
services at a lower cost than usual. This enabled us to successfully restore the distribution chain in part.
Furthermore, we made an appeal to shops in Japan unaffected by international logistics problems
and convinced them to hold a time-limited sale, enabling us to ascertain the kinds of items that werein demand. As demand for items used outside the home dropped, we were able to substantially increase
orders by coming up with a lineup of items including, among other things, comfortable clothing for in
the home, fashionable items that would make the wearer appear more photogenic during online
meetings, etc.
As a result of the above, the overall trading volume for May recovered to 103% YoY, and the overall
trading volume for June, too, has been rapidly recovering. In terms of our total performance as of June
10, our growth rate in overall trading volume is 130% YoY.
The fact that we were able to respond to changes in the environment caused by COVID-19 in such ashort period of time is because we have many personal shoppers around the world, and were able to draw
on the strengths of BUYMA – i.e. its diverse product lineup and decentralized business model.
Everyone in the company came together and worked to overcome the challenges presented by thevirus. BUYMA evolved in the course of our efforts, and we were able to sow the seeds for achieving
new growth. For example, we expanded our delivery network by providing services through private
courier companies early on, acquired companies in Japan, established new methods of runningpromotions, and achieved growth in the lifestyle category, such as furniture. Going forward, we willcontinue to build highly adaptable business foundations enabling us to respond to changes in theenvironment.
2. Regarding the financial impacts of COVID-19
In terms of finances, our profit structure is such that we are able to secure profit as long as our growthrate in overall trading volume does not fall below 50% YoY, and we possess cash equivalents
amounting to around 8.2 billion yen. Therefore, we are not in a critical situation. However, as the way
ahead remains uncertain, we have strengthened our defenses by taking measures such as limiting hiringand scaling down nonessential and non-urgent fixed costs, while actively making investments invariable costs essential for future growth, such as by allocating budgets to highly cost-effective
advertising.
3. Regarding the outlook for FYE January 2021
While we are currently performing well, we are carefully assessing as to whether this is simply due
to a reaction among people to having to stay at home for a long period of time, or whether it is due toa more intrinsic upward shift, such as an irreversible move to more widespread use of EC or an increasein demand for our services as a shopping intermediary due to a decrease in overseas travel.
What is more, it is still not certain how COVID-19 will affect policies and consumption patterns
from hereon in. Therefore, our forecasts for the whole term shall continue to remain pending.
End