January 17, 2018
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 Transfer of our Consolidated Subsidiary(Transfer of Stocks) and the Transition to Non-consolidated Accounts

This is to notify that, at a meeting of the board of directors held on January 17, 2018, we made the decision
to transfer all of our stocks in Rocket Venture Inc. (Hereafter, “Rocket Venture”), our consolidated subsidiary,
to Interspace Co., Ltd. (hereafter, “Interspace”), the details of which are as follows. Note that as a result of thistransfer of stocks, Rocket Venture will no longer be our consolidated subsidiary.
Details
1. Reasons for the transfer of stocks
Under our mission of “creating currents that will change the world”, we have used the Internet as aplatform to expand our business operations with the aims of creating networks which bring together theindividual talents of general consumers, creating new values that have not existed before, and changing theworld for the better. In particular, our core operations focus on the “social commerce industry”, centering
on BUYMA, a social shopping website that goes beyond national borders to provide products to a rangeof countries worldwide, from overseas to Japanese and between different overseas countries. RocketVenture, a media business provider, runs the media services “4meee!”, which targets women in their 20s,and “4yuuu!”, which targets highly receptive housewives and mothers, and has expanded its revenue
mainly through advertorials.
Our group turned the above company into a consolidated subsidiary from February 2015. As a result,
we were able to provide a platform for a new kind of shopping experience in which users can not only
obtain real time information on the latest trends and personal favorites, but also find the things they reallywant according to their own preferences. However, as owned media of BUYMA, STYLE HAUS continues
to improve its functions.
As the situation stands, the business operations of the company have recently become a non-core elementof our group’s portfolio. In light of this, while searching for a new stockholder for the company – one witha prospect to bring in a sense of business synergy as an independent media service – we determined thatthe company could achieve further business growth by integrating the know-how on media services aimed
at women possessed by Rocket Venture with the media business of Interspace, and thus made the decision
to transfer all of our stockholdings to Interspace.

2. Overview of the subsidiary to be transferredRocket Venture Inc.
Shindaiso Building No. 2 4F
2-10-7 Dogenzaka, Shibuya-ku, Tokyo, Japan(3) Name and position of Makoto Tatsukawa, Representative Director(1) Name(2) Address

representative(4) Content of business(5) Capital funds(6) Date of establishment(7) Major shareholders
and ratio of shareholding(8) Relationship between

Rocket Venture Inc.
(the listed company) andAdministration of media services aimed at women
157,747,000 JPY
December 13, 2013
Enigmo Inc.: 100%
Capitalrelationship
Personnel
relationship

Rocket Venture Inc. is funded 100% by Enigmo Inc.
3 executives from Enigmo Inc. serve on the board of directors of Rocket
Venture Inc.

Enigmo Inc.

Businessrelationship

There are no other business relations between Enigmo Inc. and Rocket
Venture Inc. worthy of note.
(9) Recent performance and financial conditions of Rocket Venture Inc.
FYE
FYE
FYE
FYE January 2018
Fiscal term
NovemberNovemberJanuary(up until the 3rd20152016
2017quarter)
122,137
152,686
146,996
88,202
Net worth (thousand JPY)
155,799
200,267
179,384
120,889
Gross worth (thousand JPY)
177
221
213
127
Net worth per share (thousand JPY)
125,217
291,996
34,849169,982
Turnover (thousand JPY)
34,676△155,332△5,688△58,758
Operating profit (thousand JPY)
34,787△154,794△5,641△58,576
Ordinary profit (thousand JPY)
30,548△157,440△5,690△58,794
Current net earnings (thousand JPY)
44
△228
△8
△85
Current net earnings per share(thousand JPY)
Dividend per share (JPY)* Fractions smaller than one thousand JPY omitted. Net worth per share and current net earnings per share are calculatedusing the number of shares at the end of the term.
* For FYE January 2017, an anomalous calculation of 2 months’ duration was used due to a change in fiscal term.

3. Overview of the company to which shares are being transferredInterspace Co., Ltd.
Shinjuku NS Building 8F
2-4-1 Nishi-Shinjuku, Shinjuku-ku, Tokyo, Japan(3) Name and position of representative Shinichiro Kawabata, President and Representative Director(4) Content of business
Administration of online advertising business, media business(5) Capital funds
984,653,000 JPY(6) Date of establishment
November 8, 1999
Capital(7) Relationship between Interspace
Not applicable.
(1) Name(2) AddressCo., Ltd. (the listed company) andEnigmo Inc.

relationship
Personnel
relationship
Businessrelationship
Other pertinentcircumstances
pertaining to therelated parties

Not applicable.
There are no other business relations between
Enigmo Inc. and Interspace Co., Ltd. worthy of note.
Not applicable.

4. Number of shares to be transferred, value of transfer and number of shares held following the transfer(1) Number of shares owned before
690 shares
the transfer(Proportion of voting rights held: 100%)(2) Number of shares to be transferred 690 shares(Proportion of voting rights held: 100%)(3) Value of transfer60,030,000 JPY(4) Number of shares held following
0 sharesthe transfer(Proportion of voting rights held: 0%)

5. Timeframe(1) Decision made at meeting of theboard of directors(2) Contract concluded to transfershares(3) Date of transfer of shares(4) Date of settlement for shares

January 17, 2018
January 17, 2018
January 29, 2018 (scheduled)
January 29, 2018 (scheduled)6. Outlook for the future
In regard to the impact of this transfer on our consolidated performance for the current term, we forecast aloss on sale from these shares in the region of 28 million JPY. In addition, we expect that the amount of corporate
tax we pay for the current term will decrease as a result of this sale of shares. We are currently conducting a
careful investigation of the situation and will provide prompt notification of our findings in the event we predict
this transfer will have a major impact on our operations.
Note that as a result of this transfer of stocks and the dissolution of Enigmo Korea Inc. announced on
September 13, 2017, from FYE January 2019, we will switch from consolidated financial statements tounconsolidated financial statements.