News Release: Estore Corporation(4304 TSE JASDAQ)
November 12, 2020

Notice of Formulation of Medium-Term Management Plan
We have formulated the medium-term management plan named "Dynamic Ascension”,
which ends in fiscal year 2024.
In the previous fiscal year, we acquired two companies and significantly strengthened
our group management base as a medium-to large-scale e-commerce support
provider. In addition, given the recent rapid paradigm shift in society, we believe that
we also need to make a paradigm shift and actively take dynamic actions that are
discontinuous with conventional wisdom and change the dimensions. This is why wehave redefined ourselves as the new Estore Group and formulated a medium-term
management plan named "Dynamic Ascension" that summarizes the direction we aimto take.
For an overview, please refer to the attached materials.

Estore Group
Mid-term Management Plan 2020 - 2024
Overview
Details of the medium-term management plan are scheduled to be announced in late November
on our corporate website.

1. Current Status after M&A (simple total as of the end of FY2019, excluding consolidation
adjustments, amortization of goodwill, etc.)

Before M&A

After M&A

Net sales
Operating income

4.93 billion yen
470 million yen

10.88 billion yen
640 million yen

Business Partners

8,534 companies

9,545 companies

85.3 billion yen

405.3 billion yen

Large-scale PaaS

0.0%

16.6%

Medium-scale SaaS

74.8%

34.1%

Marketing

25.2%

49.3%

GMV
Business portfolio*The above figures are not based on new accounting standard from fiscal 2021, but based on a current
accounting standard basis until fiscal 2020.

2. Objectives and Background of the Medium-Term Management Plan
Due to the three factors of population decline, deflation, and the digital society, management
reform is required in all industries. The fact that 20 years have passed since the spread of theInternet and 10 years have passed since the spread of smartphones overlaps with this, and as
the name "paradigm shift" implies, corporate management is required to undergo rapid anddiscontinuous major changes.
Therefore, DX (Digital Transformation), which is the largest corporate IT movement in the past,
has started, and this trend is expected to continue for the time being, it is important for any
company to respond to and promote e-commerce, which can be said to be the center of DX. At
the same time, we need to make efforts that differ from those to date, when the method is also
shifting paradigm.
The basis of this strategy is not the addition of the growth of each individual business such assystems sales, sales promotion, and distribution, but rather the multiplication of total efficiency
on a series of flows. In our company, we judged that the formation of a synergy group would
make the greatest contribution to the management of our client companies by providing themwith a larger, more advanced, and faster comprehensive e-commerce environment. Based on
this, we have launched a business strategy that begins with the recent M&As.

3. Medium-Term Management Plan Targets and Goals
In the five years of the medium-term management plan, we aim to double sales to 10 billion yen
and quadruple operating income to 2 billion yen, compared to the current level in fiscal year
2020, and we will establish a level of performance and governance that will allow for transfer inthe stock market and listing of subsidiaries.
* When compared to the new accounting standards, operating income will not change, but the method ofaccounting for sales will be changed, and the currently published forecast for fiscal 2020 sales of 9.6 billion yen
will be 5.1 billion yen. In addition, one-time expenses include office integration expenses through M&A.

FY2020

FY2024

Operating
Net sales
Profit ratio
incomeNet sales

Operating
Profit ratio
incomeLarge-scale PaaS

19.0

1.2

6%

44.0

6.0

15%

Medium-scale SaaS

24.0

4.9

20%

26.0

8.0

30%

Marketing

7.0

0.1

1%

16.0

2.0

12%

---

15.0

5.0

34%

51.0

6.2

12%

101.0

21.0

21%

5.0

10%

20.0

20%

Hands-on DX
Total(before goodwill)
After amortizationof goodwill
After one-time
expenses

4.0

4. Overview of Strategies of the Medium-Term Management Plan
EC Support Business (Expanded Existing Businesses)
The entire group has redefined itself as an "e-commerce business platform provider" and willcontinue to provide comprehensive services such as systems, marketing, fulfillment, andpayment, to develop high-quality, rapid EC support business in the era of fierce competition
where the world is becoming increasingly DX demand.
Over the past decade, systems, marketing, etc. have been offered and used individually. Now
that advertising and other IT methods are extremely developed and consumers' psychologicalconditions are also being strongly called out for, such as information monitoring. Our customers,
e-commerce merchants, require a high level of operation, analysis, and responsiveness in adigital world where sales, promotion, and distribution are fully aligned with the customer(consumer). We have a solid team to fill that portfolio.

Hands-on DX business (new business)
In addition to the EC support business mentioned above, we will leverage the knowledge andknow-how we have cultivated over 20 years to enter the EC business, where we are theoperator. This will start from the current medium-term management plan, but it is positioned asa long-term strategy.
The reason for positioning this business as a long-term strategy is to help prepare for the easy
prospect that ARPPU and LTV will become the mainstay of business operations beyond thismedium-term plan period, given the increasingly deepening demographic decline, deflation, anddigital society that are expected to occur in the future. For companies that have excellent
products and customer base, but are not able to leverage their superior business assets due tolack of e-commerce know-how, operational personnel or funds, we provide all the necessary
solutions in a hands-on, invested manner.