Buy the World, Change the World

Materials for Financial
Results Briefing
FYE January 2020

03
02Company Profile

Company Name

Enigmo Inc.

Main Business

Management of social shopping site "BUYMA"

Location

NMF Aoyama itchome Bldg. 6F 8-1-22 Akasaka, Minato-ku, Tokyo

Date of Establishment

February 10th, 2004

Representative

Representative Director and Chief Executive Oﬃcer Shokei Suda

Capital381.9 million yen

Listed Market

Tokyo Stock Exchange First Section (Ticker：3665)

Number of Employee

104 people

Accounting Period

January 31stMajor Shareholder

Executive oﬃcers & Sony Corporation

04

History
February 2004

“Period of foundation” – 1st stage of foundation

Commencement of BUYMA services

Number of members:
0 – 100,000 people– Founded in February 2004
– BUYMA released in February 2005, the following year, under the theme of “It has value, no matter where
you are”

February 2006

“Period of expansion” – 2nd stage of foundation

Increase of capital / diversification of lines of business

Number of members:
100,000 - 800,000 people– February 2005 - March 2006 Implementation of capital increase through third-party allocation– BUYMA, which had achieved a positive balance on a monthly basis in 2008, grows into our company’s
main line of businessFebruary 2012

“Period of transition” – 3rd stage of foundation

Structural reforms

Number of members:
800,000 – 1.7 million people– 2012 - Heavy concentration of management resources on BUYMA– July 2012 - Listing of company on TSE Mothers

February 2014
Japanese, English and Korean
language versions of the site

“Period of globalization” – 4th stage of foundation

Commencement of global expansion /path to becoming the “No. 1 overseas online retailer”– December 2013 - Release of BUYMA Korea, the Korean language version of the site

Number of members:
1.7 million – 7.3 million people(as of the end of January 2020)– February 2015 - ROCKET VENTURE, a service which administers media aimed at young women, is
acquired as a subsidiary company (liquidated in January 2018)– October 2015 - Release of BUYMA, the English language version of the site
– March 2016 - BUYMA KOREA is acquired as a subsidiary company (liquidated in September 2017)– July 2018 – Release of BUYMA TRAVEL– April 2019 - Listing in the First Section of the Tokyo Stock Exchange05

Structure of business operationsoftr

List item

2
Point

Point
Purchasing after
the order has
been received

3

Purchase

4

item

pa

e

1

t
en of
m
)
le % - icett
r
se t (5 n p
rfo en tio
c
e
ym sa
an

of
th

SHOP

Fe

F
co ee
un
n
tr tra dean ctrsa (5 ag
c t % re e
io 〜
m
n
7
pr % ent
ic oe) f the

Japanese and English
language versions of the site

Order item
Original payment
systemDispatch item

Personal shoppers

Buy e rs

(sellers)

Turnover generated from fees paid by both parties involved in the transaction
Buyers: Around 5% of the item price (+ other optional fees)
Personal shoppers: Brokerage fee of 5% – 7% of the item price (depending on the status of the item)

Premium personal shoppers：

Shops：

Those among excellent personal shoppers who have cleared certain criteria andresponded to our invitation

Business operators that have met the criteria for selling items through BUYMA

Premium members：
Determined according to the amount of purchases made during the past 6 months. Platinum stage members: (total purchase amount of 300,000 yen or more)/Gold stage members: (totalpurchase amount of between 150,000 yen and 300,000 yen)/Bronze stage members: (total purchase amount of between 70,000 yen and 150,000 yen)

06

BUYMA (Japanese language version) – Content of businessA specialty marketplace that brings individuals and companies from around the world
together and provides them with a special purchasing experience and limitlessencounters with fashion items
Number of items listed

More than

4.14 million items

Number of personal shoppers

146,000 people

Countries of residence of personal shoppers

161 countries

Average purchase amount

20,938 JPY

Average age of users

33.0 years
Users by sex

Female:71.6% Male: 28.4%*as of the end of January 202007

Business performanceFYE January 2020

0802

Performance for FYE January 2020 – Highlights

A year in which we laid the groundwork for further growth while expanding
highly profitable business foundations‣ Achieved record highs in terms of trading volume, turnover and profits‣ ARPU for the year was 46,187 JPY, the highest value since our listing‣ In regard to profitability, we maintained a high level in terms of the rate of operating income (44.2%)
and ROE (28.9%)‣ Provide a commemorative dividend to celebrate our listing in the 1st Section of the Tokyo Stock
Exchange‣ Team reorganization for GLOBAL BUYMA aimed at North America‣ Grand opening of BUYMA TRAVEL‣ Established “Challenge 2025” as a new set of mid-term goals‣ Achieve operating profit of 5 billion JPY by 2025
‣ 5-year cumulative operating CF of 15 billion JPY‣ 5-year average ROE in excess of 25%‣ Redefined Mission/Vision/Value and improved organizational capabilities aimed at achieving targets‣ Began earnest consideration of M&A

09

Performance for FYE 2020 – Highlights

Overcame the impacts of the consumption tax increase, warm winter, etc.
to achieve record highs in terms of trading volume, turnover and profits

Rate ofachievement

FYE January 2019(results for the previous
period)Compared withthecorresponding
period of a year
earlier

52.53 billion yen

101.4%

45.53 billion yen

117.0%

6.09 billion yen

6.15 billion yen

99.0%

5.28 billion yen

115.4%

Operatingincome2.69 billion yen

2.46 billion yen

109.1%

2.14 billion yen

125.6%

Ordinary
income2.68 billion yen

2.45 billion yen

109.4%

2.14 billion yen

125.1%

Profit1.86 billion yen

1.70 billion yen

109.4%

1.53 billion yen

121.1%

44.68 yen

40.82 yen

109.4%

36.89 yen

121.1%FYE January 2020
(Performance)FYE January 2020
Performance(forecast)

Overall trading volume※

53.27 billion yen

Net Sales

Current net earnings per share(JPY)* Overall trading volume: Amount of account settlements including such things as payment for goods and fees for settlement of payment in contracted transactions.

10Performance for FYE 2020– Net sales

Net sales 6.09 billion yen, 115.4％YoY
Consolidated

Non-consolidated

6,097

7,000

6,000

5,283
5,000

4,492
4,147

4,000

3,000

2,858

2,000

1,000

0
FYE Jan. 2016

FYE Jan. 2017

FYE Jan. 2018

FYE Jan. 2019

FYE Jan. 2020

(Unit: million yen)
* FYE Jan. 2016 – FYE Jan. 2018 includes ROCKET VENTURE; second quarter of FYE Jan. 2017 – FYE Jan. 2018 includes ENIGMO KOREA

11

Performance for FYE Jan. 2020 ‒ Selling expenses

Overall selling and administration costs were 103% YoY
as a result of strategic cost controls Investments made in improving the recommend
function, MA tools, etc.
while adhering to disciplined investment policies involving our topline growth rate

FYE January 2020
(performance)FYE January 2019(reslusts for theprevious period)

YoY

Labor costs *979 million yen

915 million yen

107%

Advertising costs

926 million yen

965 million yen

96%

Write oﬀs

16 million yen

15 million yen

106%

Costs relating to systems

94 million yen

71 million yen

133%

Other

280 million yen

256 million yen

109%

Total

2,297 million yen

2,224 million yen

103%* Includes costs associated with temporary workers, outsourced work, etc.

12

Performance for FYE Jan. 2019 - Operating income / income ratio

Operating profit was 2.69 billion yen (125.6% YoY)
The operating profit ratio continued to rise, to 44.2%
Consolidated

Non-consolidated

3,000

2,692
42.6%

2,400

44.2%

40.6%

35%

1,768

1,800

45%
40%

2,143

35.1%

50%

1,574

30%
25%

1,200

Implementation ofmass media
campaigns

20%
15%

600

219

10%

7.7%

5%

0

0%
FYE Jan. 2016
(Unit: million yen)FYE Jan. 2017
Operating income

FYE Jan. 2018

FYE Jan. 2019

FYE Jan. 2020

Income ratio* FYE Jan. 2016 – FYE Jan. 2018 includes ROCKET VENTURE; second quarter of FYE Jan. 2017 – FYE Jan. 2018 includes ENIGMO KOREA

13

Performance for FYE Jan. 2020 ‒ Cash flow

The current credit balance at the end of the term increased to
8.18 billion yen due to an increase in operating CF
Also maintained a stable current credit level
when comparing average monthly trading volumes
90
80

8.18
billion yen

1.75
billion yen

70
60

6.45
billion yen

50

4.43
billion yen

40
30
20
10
0
Current balanceof deposits
at beginning ofterm

OperatingCF

Investment
CF

Finance
CF

Translation
diﬀerence
pertaining tocash and cash
equivalents

Current balanceof deposits
at end of termMonthly average
trading volume(end of term)

14Performance for FYE January 2020 – Shareholder returns

In order to express our gratitude to all shareholders
for their ongoing support, we are planning
to provide a commemorative dividend of 7 yen per shareto celebrate our listing in the 1st Section of the Tokyo Stock Exchange[ F u t u re d ivid en d p o licy]

In order to be in a continual state of growth, we have made investments in growth our top priority (this includes not only M&A and capital tieups but also investments in human resources and strategic marketing investments that lead to growth in turnover).
In regard to the dividend for the next term onward, while in some cases there may be no dividend payout depending on investments in growth
and the present demand for funds, we will adopt a policy of striking a balance with internal reserves while giving comprehensive consideration
to such factors as transitions in our performance, financial circumstances, and future business & investment plans.

Operating CF

Internal reserves

Investments (including M&A)
or dividends

15

Overview of
BUYMA business operations

16
13

Performance for FYE 2020 – Highlights

Improvement of marketing‣ Fully-fledged commencement of data-driven marketing‣ Stimulation of SNS marketing‣ Shift from mass advertising to more personalized advertising

Improvement of convenience (from the side of purchasers)‣ Made improvements to search functions to make it easier for purchasers to find their desired products‣ Continued to focus on improving the recommend function to entice people to make purchases‣ Increase in users of the purchasing service ALL-IN, thus stimulating the purchasing cycle

Improvement of product lineup (from the side of sellers)‣ Improved coordination with personal shoppers. Reduced the risk of items selling out through the application of bulk
listing tools, etc., thus ensuring the availability of popular product lines‣ Put in place a more appealing lineup of products by improving the transmission of a range of information, such as
trends, best-selling items, and advance notices of campaigns‣ Achieved a record high in terms of trading volume during the Black Friday sale17Performance for FYE Jan. 2020 - Number of members

Number of members reached 7.3 million (119% YoY)

7,302,929

Number of members

8,000,000
7,000,000

6,139,853
6,000,000

4,987,585

5,000,000

3,998,041

4,000,000
3,000,000

3,004,769

2,000,000
1,000,0000FYE Jan. 2016

FYE Jan. 2017

FYE Jan. 2018

FYE Jan. 2019

FYE Jan. 2020

(Unit: Person)*Including the English language version from FYE January 2016; including the Korean language version from the 2nd quarter of FYE January 2017 to the 3rd quarterof FYE January 201818

Performance for FYE Jan. 2020 ‒ Number of active members

The number of active members exceeded
1.15 million people (105% YoY)

Number of active members
1,250,000

1,098,542

1,153,475

969,641

1,000,000

885,308

750,000

634,152

500,000

250,0000
FYE Jan. 2016

FYE Jan. 2017

FYE Jan. 2018

FYE Jan. 2019

FYE Jan. 2020

(Unit: Person)*Number of active members: members with a purchase history within the past year
*Including the English language version from FYE January 2016; including the Korean language version from the 2nd quarter of FYE January 2017 to the 3rd quarterof FYE January 201819

Performance for FYE Jan. 2020 - Overall trading volume

Overall trading volume was 53.2 billion yen (117% YoY)

53,27660,000Overall trading volume
50,00045,53340,00037,10933,27730,00024,44020,00010,0000
FYE Jan. 2016

FYE Jan. 2017

FYE Jan. 2018

FYE Jan. 2019

FYE Jan. 2020

(Unit: million yen)*Overall trading volume: Amount of account settlements including such things as payment for goods and fees for settlement of payment in contracted transactions*Including the English language version from FYE January 2016; including the Korean language version from the 2nd quarter of FYE January 2017 to the 3rd quarterof FYE January 201820

Performance for FYE Jan. 2020 - Number of transactions handled

The number of transactions handled was 2.54 million (107.1% YoY)

Number of transaction handled
3,000,000

2,500,000

2,374,841

2,544,540

2,058,758
2,000,000

1,500,000

1,853,817

1,309,714

1,000,000

500,0000
FYE Jan. 2016

FYE Jan. 2017

FYE Jan. 2018

FYE Jan. 2019

FYE Jan. 2020

(Unit: no. of transactions)*Including the English language version from FYE January 2016; including the Korean language version from the 2nd quarter of FYE January 2017 to the 3rd quarterof FYE January 201821

BUYMA(Japanese language version)

22
21

BUYMA (Japanese language version) – Initiatives taken in FYE Jan. 2020

Stimulation of PDCA cycle for marketing measuresthrough the use of Marketing Automation tools
Improve marketing measures that help increase the rate of active users
by delving deeper into hypothesis testing

New marketing mix

Improve level ofrecognition
Video ads/SNS measures
Increase the number ofmembers

Take measures toincrease the number oftransactions handled

Capture more users
through increased
online advertising

Increase the average
number of purchases perpersonImprove the ratio ofactive users

BIG
DATA

PersonalizeAI

23

BUYMA (Japanese language version) – Review of FYE Jan. 2020 – Increase in the number of active members

Number of new registered members reached 1.16 million
Stable growth of over 1 million people for 2 consecutive terms

Number of new members
1,400,000

1,157,634

1,200,000

1,000,000

800,000

977,739

987,195

FYE Jan. 2017

FYE Jan. 2018

1,161,878

787,913600,000

400,000

200,0000
FYE Jan. 2016

FYE Jan. 2019

FYE Jan. 2020

(Unit: people)

24

BUYMA (Japanese language version) – Review of FYE Jan. 2020

In addition to a steady increase in the number of active users,
achieved a trading volume of 117.0% YoY
thanks to the implementation of strategic MD
intended to improve the level of customer satisfactionFYE January 2020

Numberof active members

ARPU

YoY

YoY

105%

111.5%

25

BUYMA (Japanese language version) – Review of FYE Jan. 2020 – Improved ARPU

Bolstered BUYMA’s renowned lineup of high added-value products
while maintaining the existing product lineup
The level of customer satisfaction rose due to the provisionof a high-quality purchasing experience

Purchase amountper person

Average purchaseper transaction

Average unit
price per transaction

YoY

YoY

YoY

111.5%

102.1%

109.2%* Average unit price is uncontrollable due to trends,
fluctuations in the exchange rate and other factors

26

BUYMA (Japanese language version) – Review of FYE Jan. 2020 – Improved ARPU

Average number of purchases per year continued to show an upward trend

Average number of purchases per year

1Q

2Q

3Q

FYE Jan. 2017

4Q

1Q

2Q

3Q

FYE Jan. 2018

4Q

1Q

2Q

3Q

FYE Jan. 2019

4Q

1Q

2Q

3Q

4Q

FYE Jan. 2020

27

BUYMA (Japanese language version) – Review of FYE Jan. 2020

Steady growth of purchase unique user numbers by quarter throughout the year
due to the active implementation of new marketing mix policies

Unique users by quarter
500,000
450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,0000
1Q(Unit: people)

FYE Jan.2016

2Q
FYE Jan.2017

FYE Jan. 2018

3Q
FYE Jan. 2019

4Q
FYE Jan. 2020

28

BUYMA (Japanese language version) – Review of FYE Jan. 2020

Growth of men’s category continuously as a result of a fuller lineup of superior
products and increased recognition of lineup in the market

Transitions in composition ratio by category

36.6%

FYE Jan. 2020

57.8%

32.4%

FYE Jan. 2019

61.7%

26.8%

FYE Jan. 2018

FYE Jan. 2016

10%

5.8%

71.2%

18.2%

0%

5.9%

67.4%

22.6%

FYE Jan. 2017

5.6%

6.2%

75.4%

20%

30%

Men’s overall trading volume composition ratio

40%

50%

6.4%

60%

Ladies overall trading volume composition ratio

70%

80%

90%

100%

Other overall trading volume composition ratio

29

BUYMA (Japanese language version) – Review of FYE Jan. 2020

Total number of app downloads exceeded 5 million
Improvements made to app functions and personalization
Also a steady increase in trading volume via the app

Transitions in the total number of application downloads

Transitions in overall trading volume via the application

124.6% YoY

133.7% YoY

1Q 2Q 3Q 4Q

1Q 2Q 3Q 4Q

1Q 2Q 3Q 4Q

1Q 2Q 3Q 4Q

1Q 2Q 3Q 4Q

1Q 2Q 3Q 4Q

1Q 2Q 3Q 4Q

1Q 2Q 3Q 4Q

1Q 2Q 3Q 4Q

1Q 2Q 3Q 4Q

1Q 2Q 3Q 4Q

1Q 2Q 3Q 4Q

FYE Jan.

FYE Jan.

FYE Jan.

FYE Jan.

FYE Jan.

FYE Jan.

FYE Jan.

FYE Jan.

FYE Jan.

FYE Jan.

FYE Jan.

FYE Jan.

2015

2016

2017

2018

2019

2020

2015

2016

2017

2018

2019

2020

30

BUYMA (Japanese language version) – Review of FYE Jan. 2020

App share was at 51.5% (5.7pt up YoY)
More personalized, high-contact measures
have stimulated transactions made through our accessible app

Distribution ratio of overall trading volume by device

100%

80%

60%

51.5%
44.8%

40%

20%

0%
1Q

2Q

3Q

FYE Jan. 2015
PC

4Q

1Q

2Q

3Q

4Q

FYE Jan. 2016

1Q

2Q

3Q

4Q

FYE Jan. 2017

SP (smartphone) / FP (feature phone) * Excluding application

1Q

2Q

3Q

4Q

FYE Jan. 2018

1Q

2Q

3Q

4Q

FYE Jan. 2019

1Q

2Q

3Q

4Q

FYE Jan. 2020

App(application)

31

BUYMA (Japanese language version) – Review of FYE Jan. 2020 – Improvement in ALL-IN - & Sokuwari
Use of purchasing services rose steadily
Encouragement of new consumption through the use of BUYMA points and discounts
A simple brand purchasing service in which users hand overitems in the comfort of their own homes

More than 6,600
qualifying brands

Accurate andspeedy valuations

No postage
or handling fees

Earn
BUYMA points

Transitions in the number of applications

On the spot discount service through trade in scheme

First half ofJan. 2017

ALL-IN

Select an item to trade infrom your BUYMA
purchase history

Purchase the item you
want at a discountSend your item to be
traded in at a later date tocomplete the transaction

Second half ofJan. 2017

First half ofJan. 2018

Second half ofJan. 2018

First half ofJan. 2019

Second half ofJan. 2019

Sokuwari

32

GLOBAL BUYMA(English language version)

33
21

GLOBAL BUYMA ‒ Business performance for FYE Jan. 2020

Number of registered members
grew steadily ( 141% YoY ) Deployed promotions
in target countries, especially the US and Hong Kong
Number of registered members

135,000

Average price of items

48,561 yen
Users by sex
women

67% men 33%

Number of countries delivered to76countries

Ratio of delivery destinations by country
USA : 46.9%

Singapore : 2.3%

Hong Kong : 14.1%

Korea : 2.3%

Australia : 4.5%

Taiwan : 2.3%

Canada : 4.5%

France : 1.4%

UK: 3.8％

Other : 15.7%

Germany : 2.4％

34

GLOBAL BUYMA ‒ Business performance for FYE Jan. 2020
From the second half of the year, reorganized our global team and shored up ourmanagement structure
Implemented a range of measures centering on upstream fields with the aim of increasing
value throughout the whole Customer Journey

Visit
BUYMA.us

Search
Products

Motivate to
Purchase

Transition in the number of organic arrivals

Checkout

Shipping / Receiving

Main initiatives carried out in FYE
January 2020
‣ The number of organic arrivals grew due to afocus on SEO measures‣ Revisions made to the ways in which paid
adverts are administered‣ Utilized SNS advertising, such as adverts on
Facebook and Pinterestnd
Ja half
n.
20 of
20

co

‣ Improved coordination with personal
shoppers (appointment of some overseas
local personal shoppers outside Japan)Se

st
Ja half
n.
20 of
20

Fir

nd
Ja half
n.
20 of
19

co
Se

st
Ja half
n.
20 of
19

Fir

nd
Ja half
n.
20 of
18

co
Se

st
Ja half
n.
20 of
18

Fir

nd
Ja half
n.
20 of
17

co
Se

Fir

st
Ja half
n.
20 of
17

‣ Brushed up search functions and productdetails page

35

GLOBAL BUYMA ‒ FYE January 2020 performance

Directionality of rebranding for North America①Appointment of talent with a proven track record‣ Appointment of project managers and designers withexperience in the field of Luxury & Fashion overseas toconstruct strategies for the North American market, renew
designs, and improve UI/UX② D e ve lo p m e n t o f a “ S p e c ia lt y ” Ma rk e t p la c e‣ Create major tides as a global marketplace through theestablishment of “Specialties” of a kind not seen on
Amazon(Reference: Retail Without Borders Conference 2020)③ D raw i ng up o f b rand gui del i nes‣ Move toward administration that emphasizes trends, brandPhoto is an impression of the site following renewal

stories, and discoveries

36

BUYMA TRAVEL

2137

BUYMA TRAVEL - Grand opening of the new site

Grand opening of the new BUYMA TRAVEL site
Fully-fledged participation in the travel market
through a C2C modelThrough BUYMA, administer sales
EC under the concept of“Buy the World, Change the World”

Through BUYMA TRAVEL,
provide new values in the form of“buying ‘experiences’from around the world”

38

BUYMA TRAVEL - Service guide

WHAT I S

A private tour reservation service which utilizes BUYMA’s extensive networkof personal shoppers spanning over 160 countries around the world

Features of BUYMA TRAVEL① Specialization in private tours
Optimal experiences tailored to the requests of individuals,
something not possible in group tours② Highly unique products
Listing of a broad range of products unavailable at travel agencies, from the latest fashionable spots
recommended by personal shoppers to drone experiencesat photo spots③ Japanese-speaking guides for peace of mind
All private guides are vetted and approved by the BUYMA TRAVEL office
Dependable guides travelers can communicate with smoothly in Japanese

39

FYE January 2021

40
21

FYE January 2021 – Measures for this term

Focus on expanding existing businesses and creating new businesses

BUYMA
of high-satisfaction low-cost‣ Expansion
product rangeof coordination between‣ Improvementcompanies and major personal shoppers‣ Improvement of SNS marketingin the ratio of active users through the‣ Increase
utilization of MA tools and streamlining ofadvertising costsof loyal customers among younger‣ Creation
people‣Improvement of coordination with owned media(STYLE HAUS)

of the purchasing cycle by enticing‣ Stimulation
customers to use ALL-IN and Sokuwari

GL O B A L B U Y M A‣ Enhancements to services and technologies aimed at improving
convenience for purchasers, such as search functions‣ Realization of listing prices that appeal to purchasers‣ Strategic utilization of coupons and other promotional oﬀers‣ Introduction of payment and delivery solutions for North America

B U Y M A T RAV E L‣‣

Improve recognition of this service
Bolster the number of travel plans and guides

NEW BUSINESS‣‣

Participate in new markets through M&A
Creation of new businesses derived from existing businesses

41

FYE January 2021 – Forecasts for the whole year

Regarding forecasts for the full year

The overall trading volume in our social commerce business during the first quarter of FYE
January 2021 is forecast to remain robust at a level of around 110% YoY. At the present
time, we are not seeing any major impacts of the new coronavirus (COVID-19) on our
performance, but the extent to which it will aﬀect our operations is unclear, as this depends
on the speed and scale of the global spread of pneumonia infections. Given the diﬃculty ofcalculating accurate and logical forecasts at the current stage, we have decided topostpone publishing forecasts until a later undecided date. We will issue our forecasts for
FYE January 2021 when it becomes possible to make reasonable predictions based on thedata at hand.

42Mid-term targets

21
43

Management Philosophy - Mission Vision Value（MVV)

Redefine value and clarify MVV
Elicit the commitment of all employees to carry out
consistent organizational management aimed at achieving the mid-term targets

MissonVisionValue

Creating Change
Specialty Market Place
1.Self-Starter
2.Out-Performer
3.Team-Builder
44

Challenge 2025 - Overview

New mid-term targets：Challenge 2025

‣ Construction of business foundations that will enable theachievement of operating income of 5 billion JPY by FYE January2025‣ Index for 5-year total operating CF of 15 billion JPY or more
‣ Aim at 5-year average ROE of 25% with efficiency in mind

Operating incomeof 5 billion JPY
by FYE January

5-year total
operating CF
of 15 billion JPY

5-year average
ROE of 25%

2025

45

Challenge 2025 - Operating income target

Operating income of 5 billion JPY by FYE January 2025

Operating income
5,000

4,000

3,000

2,692
2,143

2,000

1,768

1,574

1,000

219
0

FYE Jan.
2016

FYE Jan.
2017

FYE Jan.
2018

FYE Jan.
2019

FYE Jan.
2020

FYE Jan.
2025(Unit: million yen)46

Challenge 2025 - Operating CF

Cash flow allocation in Challenge 2025

Operating CF (total)

Investments (includingM&A) or dividends

Internal
reserves

15billion JPY
or more(Actual result)

5.7billion JPY

FYE Jan.2016〜FYE Jan.2020

FYE Jan.2021〜FYE Jan.2025

47

Challenge 2025 - ROE

Aim at 5-year average ROE of 25%

Transitions in ROE

incomeROE

1,800

Aim at 5-year average
ROE of 25% to continue
securing highprofitability

1,400

50%

40%

30%

Average of 24% for
the past 5 terms

1,000

20%

10%

600

0%
200

-200

-10%

-20%
FYE Jan.
2016

FYE Jan.
2017

FYE Jan.
2018

FYE Jan.
2019

FYE Jan.
2020(Unit: million yen)48

Challenge 2025 - Policies

Measures aimed at purchasers

Maximization of LTV through the full operation of
MA tools and the utilization of SNS

LTV

Repeat purchase

Repeat purchase

Repeat purchase

Repeat purchaseIn terms of products, facilitate initialand repeat purchases,
and expand product lineup

Member registration
Initial arrival
Time

Acquire new members

Encourage members
to become more active

Encourage loyalty
among members

49Challenge 2025 - Policies

Policies aimed at personal shoppers① S tre amlin in g o f lis t in g a c tivitie s‣ Implement support measures to bolster product listing capabilities centering on leading
personal shoppers (PS)‣ Continue to release new versions of streamlining tools and increase the number of PS withthe capability to use these② In cre as e t h e rat io o f co mpa nie s‣ Improve coordination with stores around the world that provide a wide range of attractive
products with a high CVR‣ Selectively open up the ratio of corporate sellers, which currently account for around 10%of the trading volume, to around 30%, and promote the Specialty Market Place strategy③ R e in fo rcemen t o f s u b ca te gorie s‣ Develop subcategories to form new business pillars following on from the ladies andmen’s categories

50

Challenge 2025 - M&A

Proactive utilization of M&A
Proactively implement M&A and investments in alliances to accelerate
the pace of growth of the Specialty Market Place

Leverage M&A to acquire business assets
with the potential to create synergy withthe aims of expanding BUYMA’s businessfoundations and penetrating new highgrowth markets

2025

Present
IPO

51

Challenge 2025 - M&A

Policies for M&A and alliances
In addition to participating in growth markets by utilizing existing core competencies,
gain and improve on new core competencies through M&A

Core competencies
Experience in administering C2C
platforms for over 15 years
SEO know-how and data
analysis capabilities

Revitalizationof BUYMA

PS network encompassing 161
countries and over 140,000 people
Customer base in excess of
7 million people

Acquisition/improvement of
new core competencies

Participationin new growthmarkets52

Challenge 2025 - Positioning Map

Extraordinary
D2C Specialist EC

Specialty Market Place
Brand
direct sales EC

Brandintensive EC

Limitedproduct
lineupDiversproduct
lineupMarket places
based on general mall-type model(Rakuten, Amazon)

Ordinary53

New Topics

21
54

New Topics - Revamp of corporate website

Fresh grand design for the corporate website
We will continue to improve the content of our website
with the aim of providing a user-friendly website to all stakeholders.

55New Topics - Revamp of corporate website

Release of a branding movie
Permeation of the Specialty Market Place concept

h t t ps://www.you t u be.com/wat ch ?v =v uF x rPF LnB 4& f eat ure=y o ut u.b e

56

New Topics - Launch of BUYMA CARD

57

These presentation materials are provided solely for the purpose of better
understanding of our company and are not intended for the purpose of solicitation.
Forward-looking projections and forecasts contained within this document are madebased on information available as of today.
Actual business performance may differ from projections due to risks anduncertainties in the future.