September 13, 2017
For the attention of all interested parties
Company name: Enigmo Inc.
Name of representative: Shokei Suda, representative director and chief executive officer(TSE Mothers: 3665)
Enquiries: Yoichi Kaneda, executive and head of Corporate Operations Headquarters
TEL. 03-6894-3665

Notification concerning the revision of our consolidated performance
forecast and calculation of extraordinary losses
This is to notify that, at a meeting of the board of directors held today, the decision was made to revise our consolidated
performance forecast for the whole financial year (February 1, 2017 – January 1, 2018) published on March 15, 2017.
This decision was made based on recent trends in our business results.
Details
1. Regarding revisions to our consolidated performance forecast
Revisions to the figures in our consolidated performance forecast for the whole financial year ending January 2018
(February 1, 2017 – January 1, 2018)

Previous forecast (A)Revised forecast (B)Increase or decrease (B-A)
Rate of increase ordecrease (%)
Performance for theprevious period (reference)(January period, 2017)

TurnoverOperatingprofit

Mil. JPY4,9774,418△558

Mil. JPY
1,966
1,423
△542

Mil. JPY
1,966
1,426
△539

Current netearnings
belonging toshareholders
Mil. JPY
1,342539
△803

△11.2

△27.6

△27.4

△59.8-

4,147

1,768

1,763

1,143

54.92

Ordinary
profitCurrent net earnings
per share
Yen Sen
64.49
25.90
-

2. Regarding forecasts for extraordinary losses and reasons for the revisions(1) Regarding forecasts for extraordinary losses
i. Regarding shares in ROCKET VENTURE INC., one of our consolidated subsidiaries, the ongoing drop inrevenue resulting from market confusion which broke out in the media market at the end of 2016 has led toincreased uncertainty with the achievement forecasts set out in our mid-term profit forecasts, which werecalculated at the time of acquisition of shares in this company. As a result, we judged that it would be necessary
to make strategic revisions to these and forecast an impairment loss from shares in this company in the region of
435,000,000 JPY in the 3rd quarter.
ii. Enigmo Korea Inc., our consolidated subsidiary in South Korea, operates BUYMA KOREA, a social shoppingwebsite in South Korea. Following its establishment, this subsidiary worked earnestly to develop its business
operations. We have been considering ways to optimize our group’s business investments in view of the future
as part of our efforts to select and bring together our management resources as we seek to develop and expand
our overseas businesses. As a result, the decision was made to consolidate BUYMA KOREA with BUYMA. US,
another of our consolidated subsidiaries, and to dissolve and liquidate BUYMA KOREA. Because of this, wepredict an amount of loss resulting from the dissolution of Enigmo Korea Inc. in the region of 18 million JPY in
the settlement of accounts for January, 2018.

(2) Regarding reasons for the revisions
i. Regarding the revisions to our turnover, operating profit and ordinary profit
The drop in revenue resulting from market confusion which broke out in the media market at the end of 2016means that the media business operated by ROCKET VENTURE INC., one of our consolidated subsidiaries, is
not expected to achieve the forecast turnover set out in our consolidated performance forecast for the wholefinancial year ending January 2018.
In addition, the social shopping website BUYMA, our core business, had 4,452,434 registered members as of theend of the 2nd quarter, 127.7% on the same period in the previous year, as well as 933,472 active users, 121.3%
on the same period in the previous year, showing a steady rise on both fronts. Meanwhile, the number of new
registered members in the total period for the 2nd quarter stood at 454,393 people, 94.4% on the same period in
the previous year, meaning that we are moving to an estimated trading level 8% lower than the estimates set out
in our consolidated performance forecast for the whole financial year ending January 2018.
In light of these circumstances, we decided to revise our performance forecast (consolidated) for turnover,
operating profit and ordinary profit for the whole financial year.
ii. Regarding the revisions to our current net earnings belonging to shareholders in our parent company
As mentioned above, we are predicted to make an impairment loss from shares in ROCKET VENTURE INC.
and losses relating to the dissolution of Enigmo KOREA Inc.. Therefore, we decided to revise our performance
forecast (consolidated) for current net earnings.
End