Supplementary Financial
Information
Second Quarter of FYE Jan. 2023

02

Summary - Second Quarter of FYE Jan. 2023
Although the business environment remains challenging with sluggish growth in the number of light users
due to the rapid depreciation of the yen and the impact of rising listing prices and declining consumer
sentiment toward overseas imports due to in ation overseas, we are making progress in building afoundation for medium- to long-term growth through internal measures and investment in personnel
expansion that will lead to increased recognition and evolving customer experience.

FYE 2023/1
Q2

FYE 2022/1
Q2(Reference Info.)
Applying New AccountingStandards FYE 2022/1 Q2(Reference Info.)
Applying New AccountingStandards YoY

GMV*Includes fees forsettlement of payment

29,295 million

31,348 million

31,348 million

93.5%

Sales

3,215 million

3,583 million

3,500 million

91.9%

Gross margin

2,569 million

2,896 million

2,813 million

91.3%

SG&A

1,962 million

1,526 million

1,432 million

137.0%

Advertising expenses

944 million

674 million

579 million

162.8%

Personnel expenses

727 million

584 million

584 million

124.5%

Operating income

607 million

1,369 million

1,381 million

44.0%

Ordinary income

618 million

1,377 million

1,389 million

44.5%

Net Pro t

431 million

932 million

940 million

45.9%(Unit: JPY)

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Cash ow

Although investment CF was ▲675 million yen due to an increase in investment projects and nance CF was▲785 million yen due to dividend payments and the acquisition of treasury stock, cash and cash equivalents

at the end of July 2022 remained high compared to the monthly transaction volume, at 11.8 billion yen.

(Unit：100 million yen)

140

120

100

80

60

40

20

0
Cash and cash
equivalents atthe beginning of
periodOperatingCF

Investment
CF

FinanceCF

E ect ofexchange ratechange on cash
and cashequivalents

Cash and cash
equivalents at theend of period

Monthly average
trading volume( rst half)

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04

Review of the rst half of FYE January 2023

BUY, SELL, SERVICE INFRA cross-functional team entered its second year of operation.
Company-wide promotion of data utilization has progressed, creating a foundation
for growth in the second half of the year and beyond.

BUY Buyer side
‣ Improved UI of search re nement screen and built personalized searches utilizing scores that predict
the best-selling items by gender x age x product ID‣ Progress has been made in deepening the analysis of factors leading to continued purchases through the useof data. Completed setting of KPI to be followed to improve repeat purchase rate

SELL Seller side

BUYMA

‣ Steady expansion of partnerships with specialty stores overseas by strengthening sales and development
capabilities‣ Strengthened sales promotion support by expanding the scope of sellers who are granted time sale privileges
based on data analysis

SERVICE INFRA‣GLOBAL
BUYMA

N ew serv ice s/busi ne ss

Launched 3D Secure (credit card identity authentication service) ver. 2.0. Enhanced payment security
by reducing the attrition rate arising from credit card authentication failures‣ Reinforced registration of GLOBAL BUYMA exclusive sellers‣ Increased the number of keywords that appear at the top of searches by promoting keyword optimization‣ Increased the conversion rate (CVR) by enhancing size and review information‣ BUYMA TRAVEL team re-launched in preparation for travel market recovery‣ Invested in SHAREDINE CO., LTD., which operates a chef matching platform business

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E ects of measures to improve recognition

TV commercials aired on agship stations and in major cities from June 24th to July 17th.

YouTubeExposure via TV

Instagram

Awareness of BUYMATwitter etc.

Style House and YouTube ads
were also run during the same
period to strengthen
engagement with BUYMA
from multiple perspectives.

Results of post-commercial awareness survey*

Awareness, intention to use, and usage rate all increased as a result of the commercials.
In particular, awareness increased 132% compared to the pre-commercial period.

Befo re CM

Aft e r C M

132%
Awareness

41 .9 %

55.1%
107%

Intention to use

11 .5 %

12. 3%
113%

Browsing within 6 months

12 .0%

13. 6%
110%

Purchase within 6 months

flff*Source: Survey of EC users within six months conducted by an advertising agency

3. 9 %

4. 3%

06

Evolution of the customer experience

We are enhancing measures to "deliver good products with a good experience," ensuringthat we adhere to the standards that buyers expect from e-commerce services,and providing a valuable purchase experience unique to BUYMA.

Authenticity

We have further enhanced the quality of authenticity checks by systematizing the con rmation of information
on where sellers purchase items.
We provide an appraisal service (authenticity guarantee) as standard for all transactions, and full compensation grantedin the event where the item turns out to be a fake. The probability of customers receiving a fake item is less than 0.001%.

Delivery

We prohibit the use of shipping services with a long delivery time. We have increased the use of private-sector delivery
services, which have reduced delivery times, resulting in shorter delivery times for customers.

We have banned variable pricing that had been practiced on some products. Also, we have stepped up our e orts
to monitor for sellers who charge additional fees a er a purchase.

Price

Premium
experience

We have expanded the scope of our concierge services for loyal customers, and are working to build trusting
relationships with very high-ranking customers through dedicated teams.

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Opened a show room

We opened a show room in Shibuya in August 2022.
In addition to being used as a dedicated studio, it will serve as a new touch point for experiencing
the world of BUYMA, providing a purchasing experience that is linked to real-life experiences.

Roles of the show room

Enhancement ofspecial features

Use as a dedicated studio to create more attractive
images for special features

Distribution of
information via
social media

Also use as a space to distribute information via social
media, which more and more people are using

Point of contact
with customers

Serve as a touchpoint where customers can try out
products not yet released in Japan, check productdetails on terminals, signage, and even place orders

08

Overview of
BUYMA business09

Transitions in major KPI

Number of members (Unit: person)

Number of active members (Unit: person)
1,373,243
10,113,655

1,316,185

1,208,262

9,106,307

1,128,313
1,024,889

7,920,172
6,695,861
5,504,196

FYE Jan.
2019 Q2FYE Jan.
2020 Q2FYE Jan.
2021 Q2FYE Jan.
2022 Q2FYE Jan.
2023 Q2

GMV (total) (Unit: million yen)FYE Jan.
2019 Q2FYE Jan.
2020 Q2FYE Jan.
2021 Q2FYE Jan.
2022 Q2FYE Jan.
2023 Q2

Number of transactions handled (Unit: no. of transactions)
1,467,608

31,34829,2951,225,751

25,6081,303,172

1,292,290

1,132,379

23,08019,644FYE Jan.
2019 Q2FYE Jan.
2020 Q2FYE Jan.
2021 Q2FYE Jan.
2022 Q2FYE Jan.
2023 Q2*GMV: Amount of account settlements including such things as payment for goods and fees for settlement of payment in contracted transactions*Number of active members: members with a purchase history within the past year

FYE Jan.
2019 Q2FYE Jan.
2020 Q2FYE Jan.
2021 Q2FYE Jan.
2022 Q2FYE Jan.
2023 Q2

10GMV

Despite the ongoing depreciation of the yen and a continued di cult external environment,
YoY results were on par with the rst quarter, con rming that demand is robust.

GMV(million yen)

18,00016,000YoY 97%
YoY 93%14,00012,00010,000

8,000

6,000

4,000

2,000

0
FYE Jan. 2020

FYE Jan. 2021

FYE Jan. 2022

FYE Jan. 2023

Q1

FYE Jan. 2020

FYE Jan. 2021

FYE Jan. 2022

FYE Jan. 2023

Q2

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Unique users (UU) and ARPU

Growth trend continued for ARPU.Number of unique users (UU) remained at around 90% YoY.

Number of UU(person)

ARPU
(yen)

500,000

50,000400,000

40,000300,000

30,000200,000

20,000100,000

10,00000
FYE Jan. 2020

FYE Jan. 2021

FYE Jan. 2022

Q1
UU (le axis)

FYE Jan. 2023

FYE Jan. 2020

FYE Jan. 2021

FYE Jan. 2022

FYE Jan. 2023

Q2

ARPU (right axis)ft

12

GMV for superior members

While the GMV for rst-time buyers continued to be sluggish, the GMV for superior members(those who purchased more than ¥500,000 in the previous scal year), who accountfor about 10% of the GMV, continued to grow at a high rate (more than 110% in Q2).

GMV of First-time buyers/Superior members
GMV (YoY)YoY 120%
120%

100%

YoY 86%80%

60%
February 2022

Superior member

March 2022

April 2022

June 2022

July 2022

First-time buyers*Describes transitions related to BUYMA in Japan

13
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May 2022

Lifestyle category

With the removal of restrictions on movement and changes in consumer behavior,
demand for interior-related products has run its course, but outdoor and travel-related
products continued to be strong, resulting in a YoY 107% (2-year CAGR of 137%).

GMV(million yen)YoY 107%2-year CAGR 137%

1,200

1,000

800

600

400

200

0
FYE Jan. 2021 Q2

FYE Jan. 2022 Q2

FYE Jan. 2023 Q2

14

GLOBAL BUYMAIn addition to a slowdown in the growth rate of the U.S. e-commerce market due to the impact of in ation,
the number of sessions declined owing to the impact of curbing the amount of advertising due to rising CPAs.
Although YoY growth was negative due to the high growth rate of the previous year, internal measures areprogressing well, with an increase in the number of exclusive sellers, enhanced SEO, and improved CVR.

GMV
(million yen)

Number ofsessions

250

Progress in the rst half of the year

4,000,000

PS Elite

Exclusive seller registrations up 159% YoYDeveloped new features on the dedicatedDashboard to improve the convenience of listing
activities

SEO

Achieved continued and enhanced Keyword
Optimization, resulting in 133% YoY in top-ranked
search keywords

CVR

Enhanced information for buyers (Universal Size Guide,
Reviews, etc.), resulting in 128% YoY CVR via organic
search3,500,000
200
3,000,000

2,500,000

150

2,000,000
100

1,500,000

1,000,000
50
500,0000
FYE Jan.
2021 Q1FYE Jan.
2022 Q1FYE Jan.
2023 Q1

GMV

Number of sessionsFYE Jan2021 Q2FYE Jan.
2022 Q2FYE Jan.
2023 Q2

0

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M&A and alliances

We made three investments in Q2 of FYE Jan. 2023 and beyond,and actively pursued M&A and alliances.

Personal Chef Platform

Digital Fashion(investment made in Jul. 2022)(investment made in May. 2022)

SHAREDINE CO., LTD. operates a chef matching platformbusiness. This service can be used not only by those whowant to experience something out of the ordinary, but also
by those who want to enjoy food prepared by a chef on
their dining table.
As a result of this investment, we expect to see businesstie-ups in the food sector in the future.

Sen Virtual Fashion Inc. was established in the U.S. in May
2022 a er signing a letter of agreement at the time of theannouncement of nancial results in March 2022.

So ware for Cross-border e-commerce(investment made in Aug. 2022)

Unicode, Inc. develops logistics infrastructure tools essential
for e-commerce operations. This collaboration with Unicode
will allow us to strengthen our network with cross-border
e-commerce businesses, which will simplify the work ow
of cross-border e-commerce operations.

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Policies for the second half of FYE January 2022

We aim to increase revenues by maximizing the e ectiveness of our fall/winter mass campaign
while improving its value as a platform through the following internal measures.

BUY Buyer side‣

Implement TV commercials and other campaigns for the fall/winter sales season‣

Retain good customers based on data analysis & e cient incentive granting‣

Enhance search UI and recommendation logic to improve turnover rate and CVR

SELL Seller side

BUYMA

‣

Acquire corporate sellers with highly competitive prices‣

Strengthen information provision activities to nd products that sell, such as supply and demand forecasts‣

Improve resistance to changes in the external environment through measures to support sellers that help
improve their purchasing power

SERVICE INFRAGLOBALBUYMA

New services/businesses‣

Enable API integration with shipping services & additional development‣

Improve the identity authentication process at the time of purchase to increase the order rate‣

Develop new customers by strengthening trending Korean brands‣

Strengthen SEO by increasing blog content and continuing keyword optimization‣

Put in place full-scale Recruiting & Onboarding for PS Elite, while developing features to reduce listing load‣

Strengthen marketing through new channels, such as Snapchat and TikTok‣

Build foundation for expansion of BUYMA TRAVEL business while monitoring market recovery‣

Promote M&A and alliances

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17

ESG・SDGs

18

ESG・SDGs

Business models that can coexist with society are in keeping with the times
from the perspective of ESG investment

Environment
1. On BUYMA, fashion items awaiting "buyers" are distributed across borders. BUYMA has solved the problem
of inventory disposal by matching supply and demand in the apparel industry around the world.
2. From March 2020, we shi ed to a remote work-based working style, which has allowed us to reduce
the amount of paper we use and become more energy e cient than before. We have also reduced our o ce spaceby half, helping us further reduce our carbon footprint.

Social
1. Approximately 200,000 personal shoppers in about 170 countries are active on BUYMA. We contributeto society by creating jobs around the world and providing people with satisfaction in work.
2. Around half of our employees are women, and we promote diversity. Proportion of women (excluding executives)in managerial posts is around 40%. In addition to women, men also take parental leave, creating a comfortableworking environment in which employees can enjoy long and rewarding careers.

Governance1. Our company has a system of audit and supervisory committees in place. Four of our seven directors are outside
directors, making for a highly independent executive structure.
2. We established our internal systems based on fundamental policies for the establishment of internal control systems.
In addition to emphasizing the importance of compliance with laws and regulations, we are focusing on enhancing
internal control functions such as internal audits, our internal reporting system, and the Risk Management Committee.

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ESG・SDGs

Realization of a sustainable society through the growth of BUYMABUYMA, a cross-border EC infrastructurethat can be freely accessed by all

Sellers in about 170 countries around the world,
enabling activities that transcend national borders

Reduction of waste loss by optimizing
inventory of fashion items around the world+ provision of services encouraging
the reuse of items

Providing opportunities forapproximately 200,000 sellers

Energy saving by reducing o ce space andpromoting remote work

About half of our employees are women.
Maternity and childcare leave systems
in place for women to maximize their abilities

Compliance with laws and regulations
Governance-oriented management

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ESG・SDGs

Our CO2 emissions (Scope 1&2) are very low,
and the energy saving e ect of halving the o ce spaces is also re ected in Scope 2.

FYE Jan. 2020

Item (Unit)

Electricity consumption (MWh)FYE Jan. 2021

FYE Jan. 2022

YoY

110

77

47

61.0%

37,49142,86343,243100.9%

Scope1 (t-CO2)

0

0

0

-

Scope2 (t-CO2)

50

34

21

61.1%

Scope3 (t-CO2)

37,44142,82943,222100.9%

1,163

1,429

1,816

127.1%

3-9 Transportation and delivery(downstream)

36,27841,401

41,407100.0%

CO2 emissions intensity( t-CO2/million yen)

0.00820.00480.0027

56.8%

Total CO2 emissions (t-CO2)

3-1 Purchased goods and services

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*1: The above data covers the energy used through the use of our headquarters o ce, the use of data centers through the BUYMA service, advertising, and delivery of goods between users.
*2: Scope 3 categories 3, 5, 6, and 7 are omitted because they are insigni cant in relation to total CO2 emissions. Other categories in Scope 3 are not considered to be relevant to our business.
*3: CO2 emissions intensity is calculated by dividing the total CO2 emissions of Scope 1 and 2 by sales per million yen.
*4: Totals may not match due to the rounding o of gures.

21

ESG・SDGs

Business model with low CO2 emissions intensity
and low environmental impact among e-commerce platforms

CO2 emissions intensity (t-CO2/million yen)
EnigmoCompany A

Company B

Company C

Company D

0.00000.00270.00810.05000.05590.10000.1020In c re a se inCO2 em iss io n s
p er un it o f s a l es

0.15000.20000.25000.30000.2991*The above graphs were calculated by us based on various publicly available information for companies engaged in the e-commerce business from FYE December 2021 to June 2022.
CO2 emissions intensity were calculated by dividing the total CO2 emissions of Scope 1 and 2 by sales per million yen.

22

ESG・SDGs

Sumitomo Mitsui Banking Corporation granted us an SDGs Promotion Loan*in recognition of the potential contribution we can make to the achievementof SDGs goals through our business activities.

Main SDGs targets
to which we conform

12.5 By 2030, substantially reduce waste
generation through prevention, reduction,
recycling and reuse

Points on which we were evaluated‣ By expanding the market for products worldwide through our platform, we aremaking it easier to nd buyers for dead stock products in Japan and overseas,
thereby reducing the amount of discarded products.
‣ Our ALL-IN service for the purchase and consignment sale of used goods contributes
to reducing the number of fashion items that are discarded by making e ective useof fashion items that people no longer use.

8.2 Achieve higher levels of economic
productivity through diversi cation,‣ In addition to BUYMA, we are also o ering BUYMA TRAVEL, a local guide service fortechnological upgrading, and innovation,international travelers, where people staying in various parts of the world can earn income
as sellers or local guides, thus presenting an unprecedented new business model.

including through a focus on high-value
added and labor-intensive sectors

5.5 Ensure women’s full and e ective‣ We are making progress in creating an environment in which women can work
comfortably, such as by providing babysitter subsidies.

participation and equal opportunities forleadership at all levels of decision-making‣ By enabling female employees to continue working while balancing work and childcare,
we expect to see an increase in the number of jobs and positions in which women are
active, with the ratio of female managers at around 40%.

in political, economic and public life

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*The SDGs Promotion Loan is one of the loan products o ered by Sumitomo Mitsui Banking Corporation. When the loan is executed, Sumitomo Mitsui Banking Corporation and the Japan Research Institute, Limited analyze the path (logic) tocontribute to the SDGs through the company's core business a er con rming the current status of the company's SDG initiatives, and provide advice on how to promote SDGs initiatives.

23

Growth potential

24Business model

Expand the economic sphere by adding product categories and new areas (e.g., travel)by leveraging customer insights accumulated through the operation of BUYMA.
Aim to become a global venture by o ering products domestically and internationally.

STYLE HAUS
Owned MediaO cial SNS

Over 6,430,000 items

198,000

Registered

In 168 Countries

PERSONAL
SHOPPERS

BeautyBaby Kids

Men’s & Ladies’

Lifestyle

10,110,000

SportsCUSTOMERS
Empower

Fake Detection
Transaction Monitoring
Fashion Trend Analysis

EngageData &
Technology
DrivenSEO ExpertiseLTV Forecast
Churn Rate Management

So ware for Shoppers

MA Tool

API Program

Personalized Recommendation

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Growth potential

Much room for growth in the BUYMA business, both in Japan and overseas.
The EC conversion rate is expected to increase and we will continue to maintain growth.

Results of FYE Jan. 2022
GMV 67.6 billion yen

Fashion EC
US market size:
12.7 trillion yen
GMVInterior goods EC domestic
market size: 2.1 trillion yen(EC conversion rate 26.0%)(EC conversion rate 46.0%)

Fashion EC domestic market size:
2.2 trillion yen(EC conversion rate 19.4%)

Overseas optional tours
and activities
Market size*3

260 billion yen(EC conversion rate 20.0%)fi*1: E-Commerce Market Survey, Ministry of Economy, Trade and Industry*2: External statistical data
*3: Estimated by our company based on the nancial results of travel industry companies

26

Share Buybacks

27

Share Buybacks

We had repurchased 0.49 billion yen worth of treasury stockby the end of August amid continued undervalued stock price levels.

Purchase amount

Number of shares purchased

Amount repurchasedby the end of August

0.49 billion yen

892,900

Planned repurchase*

1.5 billion yen

2,500,000*March 2022 to February 28, 2023

28

This document is intended to provide an understanding of the company and isbased on actual results and current plans. The plans are subject to change in the
future due to various uncertainties inherent in them.