Company Outline
Company Name

Enigmo Inc.

EstablishedFebruary 10, 2004

Business Description

Operating “BUYMA.com” The Largest Social e-Commerce
Website in Japan

Number of Employees

44

Major Shareholders

Executive Oﬃcers So-net Corporation (Aﬃliate company of SONYCorporation)

Audit Firm

Ernst & Young ShinNihon LLC(C)2014 ENIGMO,INC. All rights reserved.

02

HIGHLIGHTS in FY2014
BUYMAAchieved increase in Revenue and Proﬁt
Trading Volume¥16,100 Million

Revenue¥1,800 Million

Operating Proﬁt¥850 Million

Steady Growth in Membership
Membership 1.69 Million Buyer 55 Thousand in more than 100 countries

BUYMA - Global
English Version of “BUYMA” - AVENUE・K
Launched Beta Version in Jul.

Launched to the public in Dec.

Korean Version of “BUYMA” ‒ BUYMA Korea
Launched Bata Version in Dec.

STULIO - Resale Market
Resale Application - Pivot Launch in Oct. ʼ13(C)2014 ENIGMO,INC. All rights reserved.

03

Corporate Earnings
Almost achieved the forecast
FY2014FY2013%YoY(Unit：¥MM)

FY2014
Forecast

Transaction
Volume16,057

12,843125.0%

17,063

Revenue

1,823

1,439

126.7%

1,900

Operating proﬁt

852

597

142.5%

827

Ordinary proﬁt

855

592

144.5%827

Net proﬁt523

377

138.8%509(C)2014 ENIGMO,INC. All rights reserved.

04

Revenue
YoY126.7%Steadily Increasing
Advertising
Business(Unit：¥MM)

BUYMA

2,000
1,823
1,750
1,439

1,500

1,250

1,000

920
851
47750

656

500

336

281

804
250

636

304

3
13cn
Ja

On
Jat.

.2

200

12
10n
Ja.2

n
Ja.2.200

1

1100(C)2014 ENIGMO,INC. All rights reserved.

05

Selling General & Administrative Expenses
YoY 114.8% Efficiently Managed(Unit：¥MM)

FY2014FY2013%YoY

Personal Expenses319332

104.0%

Advertisement87117

133.2%

Depreciation cost

11983.7%

Other

112

151

134.2%

Total

532

610

114.8%(C)2014 ENIGMO,INC. All rights reserved.

06

Operating Proﬁt, OPM
Operating Profit : YoY 142.5%
Profit Margin: 46.7% : keeping steady increase(Unit：¥MM)

OPM

1,000

50%

46.7%
41.5%

852
40%

800
24.1%

30%

597

600

20%

9.3%

400

10%

205

2000%

85
△20.0%

0-200-20%

△131

Ja

n.2

010Jan,2011Jan.2012
Jan,2013Jan.2

014(C)2014 ENIGMO,INC. All rights reserved.

07

Business OverView of BUYMA(C)2014 ENIGMO,INC. All rights reserved.

08

What’s BUYMA.com
C2C fashion e-commerce platform

RegisteredMembership

1,693,994人

Newly Exhibited
Items
Registered Buyers

Countries

More than

7,000items/day
55,000
Buyers reside over107countries(C)2014 ENIGMO,INC. All rights reserved.

09Registered Members
Increased in the Pace of Membership Acquisition(Unit：Person)

1,800,000

1,693,994

1,500,000※1 Cumulative Membership as of Oct 31,2012※2 Cumulative Membership as of Oct 31,2013
1,190,574

1,200,000900,000

819,886

614,834

600,000
463,866

300,000

432n
Ja.2n
Jann
JaaJn
Ja.2001110.2.2.20011100(C)2014 ENIGMO,INC. All rights reserved.

10

Active Members(Unit：Person)

500,000

281,104

449,620400,000

304,816300,000

200,000

174,797
125,568
105,114100,000

432.2nn
Jaan
JaJn
Ja.2001110.2n
Ja.2.20011100

Active Member : Members who bought items at BUYMA within 1 year(C)2014 ENIGMO,INC. All rights reserved.

11

Transaction Volume
YoY 125%(Unit：¥MM)

18,00016,057

15,00012,843

12,000

9,000
7,555

6,000

4,952
3,722

3,000

1300naJn
Ja.2.20n
Ja.20.2n
Ja

12
1110
10.2n
Ja

40(C)2014 ENIGMO,INC. All rights reserved.

12Number of Transactions
Exceeded 1 Million (YoY 145%)(Unit ：Case)

1,200,000

1,004,528

1,000,000

800,000
693,099

600,000

402,758

400,000
292,283
240,613200,000

43n
Jann
JaaJn
Ja.2.20011210n
Ja.2.2.20011100(C)2014 ENIGMO,INC. All rights reserved.

13

ARPU
(Unit：Yen)

50,00043,224

42,13639,43940,00035,71335,40930,00020,00010,000

0n
Ja.2

12n
Ja.2013401

10.2

1.2n
Ja0n0a.21J

J

an0ARPU-> Annual Amount of Purchase per Active Member(annual trade volume)/(Active Membership)(C)2014 ENIGMO,INC. All rights reserved.

14

Countermeasures for depreciation of JPY and ARPU
Factor Analysis
External environment

Rapid
depreciationof JPYEvents occurred in FY2014

Price Increase
Buyers priced
in further
progress of“weak JPY”

ResultSense of expensive
especiallyluxury items*

decline ofARPU

Steady sales oflow-price items(currently, recovering due to theprice increase in Japan)

Countermeasures

Average Price Increase

Raise Frequency

・Enforcement of compensation program

・Release of Smartphone Application

・Expansion of Hot/Rare items

・Expansion of items for younger generation

・Revitalization of premium buyers

・Increase attractive items not influenced by exchange rate

・Expansion of luxury items competitive in price・Increase efficiency of bulk purchase・Enforce “BUYER POST” for closer communication

Improvement of ARPU
Risk diversification by globalization(C)2014 ENIGMO,INC. All rights reserved.

15

For Accomplishment ofMedium Term Business Plan

(C)2014 ENIGMO,INC. All rights reserved.

16

CORPORATE VISION

Social Commerce No.1
・e-Commerce is the market for an extraordinary growthprospect・Establish a unique position in the e-commerce market byproviding our own values in regard to social networking(C)2014 ENIGMO,INC. All rights reserved.

17

Medium Term Target
Aiming to achieve ¥100 billion of transaction in Japanand ¥x0 billion in overseas in 5 years
Services
Existing

NewResale
Existing

Customers
Global Expansion
NewCategory Expansion

AVENUE・K
Korea(C)2014 ENIGMO,INC. All rights reserved.

18

Medium Term Target
AVENUE・K
Korea

Raise
Awareness
Current Customers
Boost Convenience
I N N O VAT O R
2.5％

E A R LY A D O P T E R
13.5％

CORE PRODUCTE A R LY M A J O R I T Y
34.0％

L AT E M A J O R I T Y
34.0％

WHOLE PRODUCTBUYMA is required to be a “WHOLE PRODUCT” andraise awareness for acquiring wider range of CUSTOMERS
Whole Product：

A whole product is a generic product augmented by everything that is needed for the customer to have a compelling
reason to buy.(With regard to BUYMA, the reason to use the service.)
The core product is the tangible product that the customer experiences. The whole product typically augments thecore product with additional elements required for the product to have compelling value to a customer.

(C)2014 ENIGMO,INC. All rights reserved.

19

Raise AwarenessProceed multifaceted expansion
for higher awareness

AVENUE・KKorea

・Proceed active SEM operation with an awareness of ROI・Strengthen alliance・Utilize iPhone application for further awareness・Increase targeting advertisement / sales promotion

TVRadiopublicationAlliance

iPhone App.

Targeting Ad./SPSony Mobile Communication

Launched in 27th Feb.
hovers ¥100 MM/month levelbudget is doubled in FY2015(C)2014 ENIGMO,INC. All rights reserved.

20

Product Line Enforcement
For the web site with large
selections users really want to buy

AVENUE・K
Korea

・34,000 brand names / 3 million items as of now
・Enforce market research function for deeper trend information
・Enforce Buyer finding/communication function
・Expand selections by enhancement of “BUYER POST”

Individual Needs
BUYER POST

Market Trend

Market Trend
Research+Buyers

Purchasers

BUYMADate(C)2014 ENIGMO,INC. All rights reserved.

21

Enforcement of Compensation System
For the most reliable place to buy

AVENUE・K
Korea

・Added “Initial Failure Compensation” to “ANSHIN (relief)
Compensation Program”
・Eliminated Upper Limit for “Lost Package Compensation”
・Modified optional fee structure (1.05%→1.4%)
・Effective in acquiring new customers
・Proceed further improvement for user-safety

ANSHIN (relief) Compensation Program

SEARCHHESITATEAuthenticity
Guarantee

PURCHASE

Lost Package
Compensation

DELIVERREVISIT

Initial Failure
Compensation(C)2014 ENIGMO,INC. All rights reserved.

22

STULIO
Resale × SNS Application“STULIO” launched in Oct. ‘13

AVENUE・K
Korea

Resale × SNS Application “STULIO”, targeting teenager and F1 (20 to35 female) users.
Participation of numbers of celebrities (e.g. fashion models, artists,entertainers) results in the increase of awareness and successful
enclosure of hi-end users.

(C)2014 ENIGMO,INC. All rights reserved.

23

Global BUYMA : “AVENUE・K” and “BUYMA Korea”Developed US and Korean
version of BUYMA

US version “AVENUE・K”
Jul., ‘13 Launched Beta Version
Oct., ’13 Opened to the public

AVENUE・K
Korea

Korean version “BUYMA Korea”
Dec., ‘13 Launched Beta Version
Mar., ‘14 Set to open to the public(C)2014 ENIGMO,INC. All rights reserved.

24

Shareholding Structure

Name of Service

Company
Name% of share

Image Network,Inc.

Company
Name

37.2%% of share

※1

※2

BUYMA

Enigmo Korea

CompanyName

14.53% (88.24%)% of share

STULIO, Inc.

※3

14.00% (98.84%)

Nation(City)

United States(Los Angels)

Nation(City)

Date ofInvestment24 / 12 / 2012

Date ofInvestment

13 / 6 / 2013

Date ofInvestment

19 / 7 / 2013

Name ofServiceAvenue K

Name ofService

BUYMA Korea

Name ofService

STULIO

Republic of Korea(Seoul)Nation(City)

Japan(Tokyo)

※1

※2

※3

US$1,200,000 in Preferred Stock

KRW 1,200,000 in Common Stock

14% in Common Stock

US$201,574 in Senior Stock

KRW 733,000,000 in Convertible Bond

¥50,000,000 in Preferred Stock(convertible into Common Stock)(convertible into Common Stock)(C)2014 ENIGMO,INC. All rights reserved.

25

New Business : BUYMA Books“BUYMA Books” to be launchedin April 2014

AVENUE・K
Korea

e-Book global distribution platform utilizing
Crowd Sourcing to translate the world-wide books①Data Registration⑦Purchase&Review

・English・Japanese・Other languages

・English・Japanese・Other languages⑧Royalty Payment⑥Distribution③Translator Selection⑤Translation Check⑧Royalty Payment②Registration④Translated Data・English・Japanese・Other languages(C)2014 ENIGMO,INC. All rights reserved.

26

Forecast of FY2015(C)2014 ENIGMO,INC. All rights reserved.

27

Orientation of FY2015

FY2014・Fulfillment ofOperating Staff・Increase
OrganizationalPowerGlobalOperations
New Business・Identify Business
Field to penetrate・Commercializationof each business

FY2015・Entrenchment of theoperation
・Capture the Achievements
・Take Actions for Furthergrowth・Strategic Investment toachieve medium term
term business plan・Monetization
・Strategy Assessment(C)2014 ENIGMO,INC. All rights reserved.

28

Earnings Forecast
Trading Volume: ¥20.5 Billion
Advertisement Costs: strategically increased aiming to raiseawareness for the achievement of Medium Term Business Plan
(Unit：¥MM)

FY2015
Forecast

FY2014%YoYTransaction Volume

20,51816,057127.8%

Revenue

2,379

1,823

130.5%

Operating proﬁt1,000852

117.4%

Ordinary proﬁt

1,000855

116.9%

616

523

117.8%

Earnings per share

150.90129.71-Dividend Per Share---Net proﬁt(C)2014 ENIGMO,INC. All rights reserved.

29

Medium Term Profit Plan
Operating Proﬁt(Unit : ¥ MM)

6,000¥5,000 MM

5,000

4,000

CAGR 43.32%¥3,000 MM

3,000281

2,000336¥827 MM

1,000¥1,000 MM

0Jan.2010

Jan.2011

Jan.2012

Jan.2013

Jan.2014

Jan.2015

Jan.2016

Jan.2017

Jan.2018

Jan.2019-1,000(C)2014 ENIGMO,INC. All rights reserved.

30

This material is prepared to gain the understanding of the investors by Enigmo Inc.
This material is based on the generally accepted social and economic conditions ,and on thepresupposition that we consider its rational as of February 19,2014.
But it is subject to change without notice for the change of the situation.

Please read through our prospectus and make investment based on investors` own judgements.
The forward-looking statements are included in these materials and information we announced.
These are based on forecast involving risks , and contain the uncertainty of the outcome.
The general conditions of industry and market ,interest rate and change in foreign exchange rates
are included in these risks or uncertainty.
We will not assume an obligation to update of the forward-looking statements , even if there are
events or new information in the future.

(C)2014 ENIGMO,INC. All rights reserved.

31

(C)2014 ENIGMO,INC. All rights reserved.

32