Supplementary
Financial Information
for the Second Quarter of FYE Jan. 2024

￼02

Summary - Second Quarter of FYE Jan. 2024

Although BUYMA struggled to recover its top line due to the still challenging external environment,
the implementation of promotional measures and improved cost-effectiveness of coupons,
time-limited sales, and points costs enabled the company to build a foundation for earnings
recovery in the second half and beyond.
FYE 2024/1
Q2
GMV* Includes fees forsettlement of payment

FYE 2023/1
Q2

YoY

27,593million

29,295million

94.2%

Net sales

3,014million

3,215million

93.7%

Gross pro t

2,356million

2,569million

91.7%

SGA

1,966million

1,962million

100.2%

Advertising expenses

733million

944million

77.7%

Personnel expenses

900million

727million

123.7%

Operating income

389million

607million

64.2%

Ordinary income

397million

618million

64.3%

Net proft

275million

431million

63.8%(Unit: JPY)

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Although investment CF was ▲942 million yen due to an increase in investment projects andnancing CF was ▲481 million yen due to dividend payments, cash and cash equivalents at
the end of July 2023 remained high compared to monthly trading volume at 10.1 billion yen(Unit：million yen)

14,000

1,294

12,000
10,316-942

10,0001

10,188

-481

8,000

6,000
5,131

4,000

2,000

0
Cash and cash
equivalents atthe beginning of
periodOperatingCF

Investment
CF

Finance
CF

Effect ofexchange ratechange on cash
and cashequivalents

Cash and cash
equivalents at theend of period

Monthly average
trading volume(End of rst half)

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Cash ow

Review of the rst half of FYE January 2024

While the BUYMA business remained in a challenging environment, the GLOBAL BUYMA business recovered and the BUYMATRAVEL business continued to grow. In addition, a policy of focusing on new businesses and M&A was also decided, andthe company made steady progress in building a revenue base from businesses other than the BUYMA business.

Gained high-quality recognition/improved the quality of customer experience

BUYMA
business‣

Enhanced the system for appealing to safety and security by collaborating with external organizations (AACD, Yamato, TRUSTDOCK)‣

Implemented BUYMA’s unique sales featuring products that cannot be purchased elsewhere and that have a price advantage‣

Released an Account Health Score page for sellers as a function to improve customer satisfaction‣

Increased the number of items purchased from Korea in response to the Korean fashion boom‣

Expanded the number of sellers eligible for concierge service for loyal customers

Improvements/issues‣

Improved cost-effectiveness by reviewing coupons, time-limited sales, and points used for costs in relation to GMV‣

Number of sessions decreased due to a return of customers to physical stores and price hikes of imported goods from overseas‣

Increased the number of registered exclusive sellers for GLOBAL BUYMA (PS Elite)

GLOBAL BUYMA
business‣

Selected and concentrated on advertising media by reviewing advertising strategy‣

Adopted SEO measures and updated product detail pages, etc., resulting in a strong conversion rate (CVR) of 117%
in the first half of the fiscal year

BUYMA TRAVEL‣

Travel demand recovery continued to drive growth in bookings at 183% in QoQ

New business/
M&A‣

Implemented Proof of Concept (PoC) for new businesses‣

Started full-scale expansion into new business areas‣

Launched a new sustainability page on the website‣

Identified materiality and four key initiatives

ESG/SDGs

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BUYMA BIG DEAL DAYS (BBDD) Sales

Maximized sales during the period and fostered the branding that BUYMA represents
great value by extensively promoting a product lineup with a price advantage

With BUYMA BIG DEAL DAYS, we unveiled for the first time an unbelievable BUYMA sale
where shoppers could save on an amazing lineup of items, including classic items from
popular brands that rarely go on sale.

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Cost-effectiveness of domestic BUYMA coupons, time-limited sales, and points

Improved cost-effectiveness of BBDD sales and coupons, time-limited sales,and points costs, achieving growth of over 110% YoY in GMV while keeping costs under control.

YoY change in GMV and cost using coupons,
time-limited sales, and points
160%

150%

145%

140%

130%

120%

117%

115%

115%
110%

110%

112%
107%

100%

85%

90%

80%
Q3

Q4
Second half of FYE January 2023

GMV (YoY)￼*GMV here refers to the GMV using coupons, time-limited sales, and points.
Also, cost is the total cost of using coupons, time-limited sales, and points.

Q1

Q2
First half of FYE January 2024

Cost YoY07

Account Health Score for personal shoppers

Are we providing a good service to BUYMA sellers?
Visualize each indicator to make it easier for sellers to judge forthemselves and to improve their listing activities.

Factors that have a significant impact
on satisfaction, as determined throughanalysis of purchaser usage andsurveys, are disclosed to each personal
shopper (PS) as an Account Health
Score.

Enable gap analysis for scores of PS
that are newly starting activities oraiming to strengthen their selling
capacity, and visualize the growthpotential for score improvement.

Help improve customer satisfaction
among BUYMA users by addressing
the score gap.

￼*The above image of the Account Health Score may differ from the actual values and design displayed on the personal shopper’s usage screen.

08

Overview of
BUYMA business

￼

09

￼

Transitions in major KPI

Number of BUYMA members (Unit: person)

Number of active BUYMA members (Unit: person)

10,939,445

1,373,243

10,113,655

1,316,185

1,208,262

9,106,307

1,173,004

1,128,313

7,920,172
6,695,861

FYE Jan. 2020
Q2

FYE Jan. 2021
Q2

FYE Jan. 2022
Q2

FYE Jan. 2023
Q2

FYE Jan. 2024
Q2

FYE Jan. 2020
Q2

FYE Jan. 2021
Q2

FYE Jan. 2022
Q2

FYE Jan. 2023
Q2

BUYMA GMV (Unit: million yen)

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

31,3481,467,608
29,29527,59425,6081,225,751

1,303,172

1,292,290
1,097,365

23,080FYE Jan. 2020
Q2

FYE Jan. 2024
Q2

FYE Jan. 2021
Q2

FYE Jan. 2022
Q2

FYE Jan. 2023
Q2

FYE Jan. 2024
Q2

FYE Jan. 2020
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. 2021
Q2

FYE Jan. 2022
Q2

FYE Jan. 2023
Q2

FYE Jan. 2024
Q2

10

ARPU continued to rise due to the impact of in ation and other factors.
Number of unique users (UUs) remained at around 90% YoY.
ARPU (yen)No. of UU (persons)

500,000

50,000400,000

40,000300,000

30,000200,000

20,000100,000

10,00000
FYE Jan. 2021
Q2
UU (left axis)

FYE Jan. 2022
Q2

FYE Jan. 2023
Q2

FYE Jan. 2024
Q2

ARPU (right axis)

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BUYMA - unique users (UU) & ARPU

As in Q1, continued to struggle to improve the number of sessions due to a return ofcustomers to physical stores and a sharp rise in the price of merchandise.

120,000,000

100,000,000

YoY 91%
4 years CAGR102%

80,000,000

60,000,000

40,000,000

20,000,000

0FYE Jan. 2020
Q2

FYE Jan. 2021
Q2

During the COVID-19 pandemic period in Tokyo*

FYE Jan. 2022
Q2

FYE Jan. 2023
Q2

FYE Jan. 2024
Q2

Outside of the COVID-19 pandemic period*Indicated in reference to Efforts of the Of ce of the Governor for Policy Planning on COVID-19 by the Of ce of the Governor for Policy Planning, Tokyo Metropolitan Government

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BUYMA - Transition in the number of sessions

￼

Administration of social media

Despite a decline in the number of X (formerly Twitter) impressions,
YoY it remained steady, increasing by about 3.5 times.

Number of impressions on major social media sites
100,000,000

90,000,000

80,000,000

Increased by 3.5 times YoY

70,000,000

60,000,000

50,000,000

40,000,000

30,000,000

20,000,000

10,000,000

0FYE Jan. 2023
Q2
X (formerly Twitter)FYE Jan. 2023
Q3
Instagram

TikTokFYE Jan. 2023
Q4

FYE Jan. 2024
Q1

FYE Jan. 2024
Q2

YouTube13

￼

GLOBAL BUYMA

Achieved a V-shaped recovery of 115% YoY in GMV in July, thanks to tuning work on our ad
distribution strategy undertaken since April, as well as ongoing measures to expand the number of
exclusive sellers (PS Elite), SEO measures, and other initiatives.

GMV(Unit：million yen)

GMV

YoY

Progress in the first half of the fiscal year

140%

70

115%

60
103%

120%

PS Elite

103%
96%

50

Number of PS Elite up 171% YoY
GMV via PS Elite up 144% YoY

100%

80%
73%

40

80%

30

60%

20

40%

10

20%

0

0%
Feb.

GMV(left axis)

M a r.

A p r.

May

Jun.

SEO

Number of sessions via organic search up
106% YoY due to keyword optimization forbrands and categories

CVR

CVR up 117% YoY due to measures toincrease the number of PS Elite and SEO
measures, etc.

Jul.

YoY(right axis)

14

￼

BUYMA TRAVELTRAVEL booking amounts showed steady growth of 183% from Q1 to Q2

BUYMA TRAVEL booking amounts

Continued steady growthFeb.

M a r.
Q1

A p r.

M a y.

Jun.

Jul.

Q2

15

Aim to recover/grow each business by acquiring high quality recognition and improving
the quality of customer experience on BUYMA through the following measures.

Gain high-quality recognition/improve quality of customer experience‣ Improvement and exposure of product lineup with uniqueness and price advantage, independent of external environment‣ Introduction of a search function utilizing ChatGPT/release of a service that appeals for peace of mind through chatbots‣ Upgrading of the batch product listing function for personal shoppers‣ Launch of tax support (VAT refund, etc.) for personal shoppers residing overseas

BUYMA
business‣ Strengthening of appraisal services by increasing capacity for authenticity appraisals

Improve satisfaction of loyal customers/maximize LTV‣ Launch of BUYMA Concierge LINE account‣ Introduction of BUYMA-exclusive advance order system for VIPs

GLOBAL BUYMA
business‣ Increase registrations of GLOBAL BUYMA exclusive sellers (PS Elite)‣ Diversification of brands sold and expansion of the number of products available for same-day shipping‣ Improved web page functionality

BUYMA TRAVEL‣ Start of full-scale collaboration with MEGURU Co., Ltd.

New business / M&A‣ Consideration of M&A related to new business areas

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Policies for the second half of scal year￼

Sustainability

17

Identi cation of materiality and four key initiatives of focus

18
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Materiality

￼

Materiality

Aim for medium- to long-term corporate growth by setting out our vision in
relation to our four key initiatives along with contributing SDGs and KPIs.
Key initiatives

Establishment of new
business and portfolio

Enhancement ofquality of service/user experience

Materiality‣ Establishment of new
business and portfolio‣ Enhancement of customer
satisfaction‣ Compliance‣ Customer privacy‣ Data security

Vision✦ Stable earnings from existing

businesses and establish earnings
from non-existing businesses byinvesting in new businesses

Contributing SDGs

KPI

‣ Aim to achieve sales of 1
billion JPY or more outside
the BUYMA business by
FYE Jan. 2025.

✦ Customers want to continue to use

BUYMA services without anxiety✦ Customers continue to use BUYMA

services without anxiety in terms of
security‣ Continue to report zeroincidents of leakage of
personal information.

✦ Each employee feels that (s)he is

Talented resources andequal opportunities

Further expansion into
global markets‣ Enhancement of
employees’ competence‣ Diversity and equal
opportunities‣ Further expansion into
global markets

contributing to the company’s growthand improving individual abilities✦ The company can provide a place—

where a wide variety of people canplay an active role not only as
employees, but also as BUYMA
users✦ The company expands revenue fromoverseas business and becomesless dependent on the domestic
market*Overseas sales refer to sales of GLOBAL BUYMA and overseas sales of future new businesses or acquired companies.

‣ Aim to achieve overseas
sales of 1 billion JPY by
FYE Jan. 2028*

19￼Medium- to long-term
growth strategy

20

Both the market size and EC conversion rate continue to rise, and although the external
environment is affecting the BUYMA business in the short term, there is signi cant room for
growth in the medium- to long-term.

Results of FYE Jan. 2023
GMV 63.2 billion yen

Fashion EC
US market size:
18.1 trillion yen
GMVInterior goods EC domestic
market size: 2.3 trillion yen*1(EC conversion rate 29.5%)(EC conversion rate 42.2%*2)

Fashion EC domestic market size:
2.5 trillion yen*1(EC conversion rate 21.5%)*1： E-Commerce Market Survey, Ministry of Economy, Trade and Industry*2： External statistical data

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Potential for growth￼Growth strategy

Create N new “BUYMAs” in order to step into a new growth stage
while working on the sustainable growth of BUYMA.

Specialty Marketplace
Group Strategy（Aiming to become No.1 by bundling N specialized marketplaces）

22

Marketplace-type business is characterized by high pro tability, with cumulative ordinary
income of approximately 18 billion yen through FYE Jan. 2023 (19th period), and a pro t
margin of approximately 40% since IPO.
Cumulative ordinary income（million yen）

Ordinary income（million yen）

Profit transition since inception

18,0004,500

Cumulative ordinary income
Approx. 18 billion yen
3,500

14,000*At the end of the 19th period (as of the end of
Jan. 2023)

10,000

2,500

6,000

1,500

External capital acquired until
the company turned profitable(7th period): approx. 900 million yen
2,000

500

(500)

1st
period2nd
period3rd
period4th
period5th
period6th
period7th
period8th
period9th
period10th
period11 t hperiod12th
period13th
period14th
period15th
period16th
period17th
period18th
period19th
period(2,000)(IPO)

Ordinary income（left axis）

Major
TV Commercial

Cumulative ordinary income（right axis）

Major
TV Commercial

23
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*Accumulated capital acquired: Accumulated capital invested since before the company turned pro table (7th period: FYE Jan. 2011)fi

￼Growth strategy

￼

Growth strategy – Specialty

Over the past 10 years, BUYMA has acquired specialties related to fashion (knowledge
and human resources) and the ability to construct and operate a marketplace, and will
expand this structure horizontally.

Fashion Marketplace

🟰

Ability to constructand operatea marketplace×

Specialties
related to fashion

24

Creation of a new B/C to C type marketplace in the fashion industry, where traditional supply
chains are still prevalent, by making full use of IT and data.
The ability to construct this marketplace is Enigmo’s core competence.

Ability to constructand operate amarketplace

Ability to construct and operate a marketplace cultivated through BUYMA①【Expertise in products/services handled】②【Product procurement capability】‣ Excellent MD with data-driven product selection
capabilities‣ Unparalleled product procurement capability through a
network of 210,000 sellers in 177 countries, including
overseas companies and professional buyers, which noother company can match‣ Expertise of 210,000 sellers in 177 countries③【Marketplace development capabilities】④【Ability to attract customers】‣ Sophisticated design that is among the best in the EC
industry‣ Web marketing with a thorough understanding of SEO‣ Customer support to enhance the satisfaction of bothsellers and buyers‣ Monitoring system to ensure the health of themarketplace‣ Data utilization team responsible for analyzing millions
of transactions per year

‣ Web advertising management with high acquisitionef ciency‣ Highly productive team utilizing marketing automation,AI, etc.
‣ Content marketing through social media and owned
media

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Ability to construct and operate a marketplace

Specialties in new business areas are not acquired organically over a 10-year period, as in
the case of fashion, but rather ef ciently through M&A, investments, and other means.

Specialty
X

New
Specialty 🟰
Marketplace

Ability to constructand operatea marketplace×

Specialty
Y

Specialty
Z

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Acquisition of specialties￼Specialty
Part 1

Travel domain

27

￼Overview of BUYMA TRAVELBUYMA TRAVEL is growing steadily,riding the wave of recovering demand for travel

Features of BUYMA TRAVEL

Marketplace for private tours with a network of guides from around the world【Business model】
Marketplace type business model similar to BUYMA, matching sellers who act as guides withtravelers and earning commissions (5.5% of the product price each from both parties)【Characteristics of seller guides】
BUYMA sellers with local expertise + BUYMA TRAVEL’s own private guides【Characteristics of users】
People who travel overseas frequently and want to enjoy special trips that cannot be
experienced through package tours

28

MEGURU Co., Ltd., in which we hold 49.9% of voting rights, is a spin-off from Shobunsha Holdings, Inc.,a major travel media company that produces travel information magazines such as MAPPLE.
We aim to expand our travel business by promoting collaboration with MEGURU, which is well versed in
the travel industry.

Characteristics of MEGURU Co., Ltd.

(Expertise)
Knowledge ofthe travel industry

Has members with extensive experience in the travel industry (travel agencies, travel media,
customer service in overseas activities, etc.), and also operates its own activity facilities (Guamand Hawaii), meaning that is also has expertise on the supplier side as well.

(Procurement capabilities)
Supplier network

Possesses a strong network of activity tour companies, including 15,000 registered activity tours
prior to the COVID-19 pandemic.

(Development capabilities)
Travel matching and marketplaceadministration

Operates a travel matching marketplace that matches travelers with domestic and international
suppliers.

(Ability to attract customers)
Social media
Owned media

Provides information through owned media in cooperation with Shobunsha
The number of official accounts it has on Instagram is 25,000 (Top class among
activity specialists).

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Overview of MEGURU, an af liate accounted for using the equity method￼Construction of travel marketplace

We aim to build the No.1 travel marketplace byintegrating the resources of the two companies

Ability to constructand operatea marketplace×

Specialties
related to travel

30

Set up GATE and manage processes. The rst phase is the TRAVEL domain.
The next new domain, X, passed GATE 2 and the selection of alliance partners and development began.
Y, which will be the next X, is currently in the process of PoC in multiple domains and is under scrutiny.
For the time being, we assume that the pace of reviews will be about 1 or 2 items passing through GATE2 every year.

Specialty1
TRAVEL

Commercialization（Grand Open）

GATE3

Preparations for commercialization

Specialty
X（Pre-Launch)
GATE2

Specialty
Y1

Specialty
Y2

Specialty
Y3

Hypothesis testing（PoC）

GATE1Specialty
Z

Specialty
Z

Specialty
Z

Specialty
Z

Specialty
Z

Hypothesis building

31
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Future Specialty Marketplace building process

Even if we limit ourselves to the overseas Tabinaka market (optional tours and activities), the market size is480 billion yen, and by combining inbound demand, hotel and ight reservations, etc., the market size thatcan be reached by the travel business will expand to several trillion yen, making it an attractive domain.

Results of FYE Jan. 2023
GMV 63.2 billion yen

Fashion EC
US market size:
18.1 trillion yen

GMV(EC conversion rate 42.2%*2)

Interior goods EC domestic
market size: 2.3 trillion yen*1(EC conversion rate 29.5%)

Fashion EC domestic market size:
2.5 trillion yen*1(EC conversion rate 21.5%)

Japanese overseas
travelersMarket size*3
4.8 trillion yen

Japanese overseas travelers
Tabinaka market size*3
480 billion yen(EC conversion rate: lessthan 10%)*1： E-Commerce Market Survey, Ministry of Economy, Trade and Industry*2： External statistical data
*3： Estimated by our company based on the external statistical data

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Potential for growthWe plan to invest approximately 3-4 billion yen to acquire the specialties (expertise, procurement capabilities,etc.) necessary to build new specialty marketplaces.
We will start building marketplaces by utilizing cash and cash equivalents of 10 billion yen.

BUYMA

Capital investment

Return on investment

Approx. 900 million yen *1

Cumulative profit
Approx. 18-20 billion yen *2

Specialty 1: TRAVELSpecialty X

Implement M&A/allianceswith an approximate
value of 3 to 4 billion yen

Create N new revenue streams
comparable to BUYMA fromwithin new areas
Total return
20 billion yen × N

Specialty Y

Specialty Z*1: Cumulative amount of fundraising from the start of the company’s business to before it became pro table (7th period).
*2: The total pro t of the Group is approximately 18 billion yen, but if investments in new businesses such as GLOBAL BUYMA and BUYMA TRAVEL are taken into account, the cumulative pro t of the BUYMA business is approximately 20 billion yen.

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Image of investment amounts

These presentation materials are provided solely for the purposeof better understanding of our company and are not intended forthe purpose of solicitation.
Forward-looking projections and forecasts contained within thisdocument are made based on information available as of today.
Actual business performance may differ from projections due torisks and uncertainties in the future.