Ｈａｍｅｅ（3134） – Financial results briefing materials for the third quarter of the fiscal year ending April 2022

Hamee Corp.Q3 FY04/22Results briefing materialsReference onlyIn case of any discrepancies between Japanese version and English version,Japanese Language version shall prevail.TSE Part 1, Securities Code 3134March 14, 2022Highlights・Next Engine clients was 5,236 at the end of Q3(up 143 clients compared to Q2) Platform Business・Sales in December exceeded JPY200 million.・Promoting server investment in cloud infrastructure.・ Sales continued well because of consulting sales with big companies.Commerce Businessbegan contributing to sales.・Strong performance remained firm as the new iPhone sales continued and theyear-end sales entered. Sales of iFace series continued well because of salespromotion of old models by mobile carriers.・Won the Genre Award at the Rakuten Shop of the Year 2021,3 years straight.・Pixio which had been affected by a worldwide shortage of semiconductors・Cosmetics business, which was launched on January 13, was strong, and weactively engage in advertising, including through tie-up videos with YouTuber.・By strengthening product planning and organizational strength, launchedlocalized items and expanded sales. All categories, iFace, music toys and lowrebound general merchandises, increased sales by 105.7% year-on-year.New Businessesby contract municipalities. Contract municipalities’ donations greatly increased by・Promote the development of returned goods, leading to an increase in donations35.5% year-on-year, reaching a record high in quarterly sales.2022 Hamee Corp. All Rights Reserved | 2I. Financial ResultsII. Business SummaryAppendix・Company Profile・Business OverviewIII. FY04/22 Year End Estimate・Reference information2022 Hamee Corp. All Rights Reserved | 3I. Financial Results2022 Hamee Corp. All Rights Reserved | 4Q3 FY04/22 Overview(Millions of yen)2021/42022/4[Reference] 2022/4Net sales and Operating Finacial statementQ3 results Q3 results% YoYIncrease/DecreaseFull-year results% YoYincomeAchieved increased sales and profits on consolidated results.Net sales3,4334,03059817.4%9,97910.2%Gross profit2,1422,50937017.3%6,41114.3%Operating income6617397811.8%1,87413.3％Net Profit attributableto owners of parent473504316.6%1,44826.5%2022 Hamee Corp. All Rights Reserved | 5Q3 FY04/22 OverviewCommerce Business・Strong performance remained firm as the new iPhone sales continued and the year-end sales entered.・Significant increases in profits insales and profits in the U.S.・Decreased in profits due to a temporaryincrease in SG&A expenses and in advertising expense(JPY58 million) with the launch of Cosmetics business.Platform Business・Record-high monthly sales in December.・Server investment in cloud infrastructure is underway.Others・Hometown Tax Payment SupportService performed well, resulting in a segment profit.Profit ratio24.4%19.9%△4.6%―23.7%―(Millions of yen)2021/4Segment Finacialstatement2022/4Increase/DecreaseQ3 results Q3 results% YoYNet sales2,6693,045Commerce BusinessSegment profit651604Profit ratio42.9%42.0%△0.9%72830525661602258161△6―Profit ratio23.8%3,4334,03059617.4%9049717.4%Platform BusinessOthers※1Net salesSegment profitNet salesSegment profitNet salesSegment profitAdjusted amount ※2Operating income[Reference]2022/4Full-year results% YoY7,5321,7836.2%△4.9%2,05121.4%85019.6%41.5%394△90―9,9792,544△66918.8%45.6%10.2%5.5%―――――376△47125479467―67107814.1%△7.2%20.9%18.2%58.4%―――――Consolidated△242△ 23166173911.8%1,87413.3%Profit ratio19.3%18.4%△0.9%※1 New services that cannot be clearly classified into either the Commerce Business or the Platform Business are described as “Others.“※2 Adjustments: Back office administrative expenses.2022 Hamee Corp. All Rights Reserved | 6II. Business summary2022 Hamee Corp. All Rights Reserved | 7II. Business summaryプラットフォーム事業Platform Business2022 Hamee Corp. All Rights Reserved | 8Platform Businessプラットフォーム事業HighlightsSales (Q3)Operating income(Q3)JPY728 million(up 20.9% YoY)42.0%(down 0.9% YoY)Number of clients(Q3)GMV(Q3)※15,236 clients(up 723 clients YoY)JPY307.5 billion(up 21.3% YoY)ARPU(Q3)※2Monthly churn rate (Q3)※3JPY37,077(up 0.3% YoY)0.96%(up 0.1% YoY)※1 GMV・・・ Gross Merchandise Value = transaction amount processed through Next Engine.※2 ARPU・・・Average Revenew Per User = the averages of sales per Next Engine clients.※3 monthly churn rate・・・Figures are calculated by dividing the number of contracted clients end of Q4 from the average number of cancellations during thequarterly period.2022 Hamee Corp. All Rights Reserved | 9Platform Businessプラットフォーム事業Q3 FY04/22 resultsNext Engine・Record high sales in December.・Server investment in cloud infrastructure is underway.Hamee Consulting・Record high for quarterly salesbig companies.(Millions of yen)2021/4Platform BusinessQ3 results Q3 results% YoY2022/4Increase/decrease[Reference] 2022/4Full-year results% YoYNet sales12520.9%2,05121.4%18.8%1,70617.5%Next EngineHamee ConsultingOperating incomeNext Engine6025069625825807286011263052987Operating profit ratio42.9%42.0% △0.9%Next Engine51.0%49.6% △1.4%Hamee Consulting0.3%5.8%5.5% ―9530474031.9%18.2%15.5%――34444.9%85019.6%84117.1%41.5%49.3%2.8%ーーーー2022 Hamee Corp. All Rights Reserved | 10because of consulting sales withHamee Consulting7 2615.7%9Platform Businessプラットフォーム事業Net Sales (Accounting Period)Next EngineーQ3 FY04/22 Sales(Millions of yen)・Monthly sales exceeded JPY200million in December and continueto grow.02022 Hamee Corp. All Rights Reserved | 11Platform Businessプラットフォーム事業Next EngineーQ3 FY04/22 Operating Income(Millions of yen)Operating Income (Accounting Period)(Millions of yen)・Strengthen personnel (development and fresh graduates) as planned and investment in cloudinfrastructure. Income improved year-on-yearbecause of the achievement of sales expansion to cover those costs.・If the sum of “growth” and “profitability” advocated by the U.S. venture capital firm”BatteryVentures” 0exceeds 40%, we will greatly satisfy the “40% Rule” of sustainable growth※.※Calculated as the sum of the sales growth rate and the operating income margin.2022 Hamee Corp. All Rights Reserved | 12Platform Businessプラットフォーム事業Operating Income Analysis (Accounting Period)Next EngineーOperating Income Analysis(Millions of yen)Fixed costs: Strengthen personnel (development and fresh graduates) as planned and invest in cloud infrastructure.Variable costs: Accelerate customer acquisition through partners (distributors).・Advertising expenses・Outsourcing costs(Customer referralsIncluding commissions)2022 Hamee Corp. All Rights Reserved | 13Number of clients(clients)2020/4Average quarterly net increase 94 clients2021/4Average quarterly net increase 186 clients2022/4(Q3)Average quarterly net increase 166 clientsPlatform Businessプラットフォーム事業Next EngineーTrends in number of clients・Next Engine clients increased at the same speed as last year.・The total number of clients is expected to be close to the target of the medium-term management plan of more than5,500.2022 Hamee Corp. All Rights Reserved | 14Platform Businessプラットフォーム事業Next EngineーChurn rate trends・Continuously staying at a low level.・ Cancellations occurred by clients who tried to expand multiple stores after COVID-19 but couldn’t. We will continue to strengthen customer success.Churn rate2020/4Average monthly churn rate※0.98%2021/4Average monthly churn rate※0.87%2022/4(Q3)Annual average monthlychurn rate※0.91%0※ Annual average monthly churn rate: Figures calculated by dividing the number of contracted clients as of the end of the quarter from the average number of cancellations for each quarterly period are simple averages.2022 Hamee Corp. All Rights Reserved | 152020/4Average ARPU ※JPY34,8032021/4Average ARPU ※JPY36,5392022/4(Q3)Average ARPU ※JPY36,248(Yen)Significant impact of COVID-19Platform Businessプラットフォーム事業Next EngineーARPU Trends・Growth trend although seasonal fluctuations※.※Next Engine sales correlate withclient transactions,Q3 performance, when the EC marketis booming such as X’mas salesetc, tends to be the highest in ayear.ARPU0※ Annual average ARPU: Simple average of ARPU calculated for each quarterly period.2022 Hamee Corp. All Rights Reserved | 16II. Business summaryCommerce Business2022 Hamee Corp. All Rights Reserved | 17Commerce Businessコマース事業Q3 FY04/22 results・Sales of iFace series remained firm as thenew iPhone sales continued and the year-end sales entered.・Pixio which had been affected by aworldwide shortage of semiconductors began contributing to sales and sales exceeding over JPY70 million in January.・Released cosmetics business on January 13. Aggressive advertising and promotion.・Strengthening organizational strength enough to develop localized products, iFace increased sales by 82% year-on-year. All categories, iFace, music toys andlow rebound general merchandise, increased sales by 105.7% year-on-year.（Millions of yen）2021/42022/4[Reference] 2022/4Commerce BusinessQ3 results Q3 resultsIncrease/decrease% YoYFull-year results% YoYNet sales2,6693,04537614.1%7,5326.2%EC（retail）1,7211,8481277.4%4,3066.8%Real (wholesale)1,0341,14711311.0%3,18110.7%Consolidatedadjustments※1△8649135―44ーOperating income651604△47 △7.2%1,783△4.9%Operating profit ratio24.4%19.9% △4.6%―23.7%ー※2 Consolidation adjustments: Arise from differences of closing month between HQ and subsidiaries at the time of consolidation are presented.2022 Hamee Corp. All Rights Reserved | 18・First Class・ReflectionCommerce Businessコマース事業Product development・Look in Clear・Reflection Pale BlueFull Clearance developed from user feedbackNew color products that match new iPhoneiPhone 13 Pro(Sierra Blue)×Reflection(Pale Blue)iManstayProductsldeveopmentProduct DomesticOverseas(US)Music toys2022 Hamee Corp. All Rights Reserved | 19Commerce Businessコマース事業Brand achievementRakuten SHOP OF THE YEAR 2021Genre Award and Double Year Award in the smartphones, tablets and peripheral equipment section2022 Hamee Corp. All Rights Reserved | 20Commerce Businessコマース事業Category extensions・Pixio businessBegan contributing to sales despite the impact of a shortage of semiconductors. Monthly sales exceeded JPY70 million and achieved profitability in January.・Cosmetics businessLoanched on January 13. Sales in January were strong at around JPY11 million despite around half a month. Aggressive advertising activities are underway, centered on web.Advertising investment will be JPY 142 million in this term.Pixio BusinessCosmetics Business2022 Hamee Corp. All Rights Reserved | 21Commerce Businessコマース事業Net Sales (Accounting Period)(Millions of yen)Q3 FY04/22 sales・As a result of strong domesticsales and expansion in US, both EC(retail) and Real(wholesale) increased YoY.・Record high for quarterly salesfor the entire Commerce business.2022 Hamee Corp. All Rights Reserved | 22Commerce Businessコマース事業Q3 FY04/22Sales analysis(YoY)・In EC, although other companies’ purchased products (toys, etc.) were challenging, sales of iFace series were strong and remained at the same level as the previous fiscal year.・Real also remained firm despite the spread of COVID-19.・U.S. market: By strengthening organizational strength of EC sales, music toys mainly large increase in orders. In addition, strengthening organizational strength of product planning made development of low rebound general merchandise progressed. Strengthening character development in low rebound general merchandise gained support from consumer. Character development in iFace also increased sales.Net Sales (Accounting Period)(Millions of yen)Consolidation adjustmentsIncrease overseasDecrease in domestic ECDecrease indomesticcommerce(Real)+24602021/4 Q32022/4 Q32022 Hamee Corp. All Rights Reserved | 23Commerce Businessコマース事業Operating profit ratio(Accounting Period)Q3 FY04/22Operating IncomeEarn the same level of profit as the same period of the previous year in existing businesses. Advertising investment in Cosmetics business lunched in January, profit decreased year-on-year.(Millions of yen)2022 Hamee Corp. All Rights Reserved | 24Commerce Businessコマース事業Q3 FY04/21Operating incomeanalysis(YoY)・Personnel expenses①Due to the planned organizational changes at the beginning of the fiscal year, a portion of personnel expenses, which was included in “Adjustments” inthe previous quarter, was borne by the Commerce segment.②Impact of an increase in personnel at a subsidiary in South Korea with development and production functions based on the initial plan.・Advertising expensesIncreased in advertising because of the loanch Cosmetics business.・ Commissions paidIncreased because of sales growth inPixio business and an increase in EC sales in US.Changes in Operating Income (Accounting Period)(Millions of yen)Increase inGross profitIncrease in personnel expensesIncrease in advertisingexpensesIncrease in commissions paid△47Decrease in logistics costsIncrease inOther SG&A expenses02021/4 Q32022/4 Q32022 Hamee Corp. All Rights Reserved | 25II. Business summaryNew BusinessesTo utilize the capabilities of the 2 mainbusinesses, create innovative newbusinesses. Same time, these supportthe evolution and growth of existingbusinesses2022 Hamee Corp. All Rights Reserved | 26新規事業New BusinessQ3 FY04/22 results(Millions of yen)2021/42022/4[Reference]2022/4New Businesses※1Q3 resultsQ3 resultsIncrease/Decrease% YoYFull-year results% YoYNet salesOperating income161△6256619458.4%39445.5%67—△90—Significant increase in profit mainly because of an increase in donations from Hometown Tax Payment Support Service※ 1. Results in the “Others” Segment.Hometown Tax Payment Support ServicePromoting the development of returned goods and the amount of donations lead to an increase. Amount of donations from contracted municipalities was up 35.5%(YoY)Record high sales in this quarter which hometown tax payments are most concentrated in the year.Hamic developed based on feedback from current customers. Promote verification of issues.Continuing to work on upcycling and RUKAMO Zero.2022 Hamee Corp. All Rights Reserved | 27III. FY04/22 Year End Estimate2022 Hamee Corp. All Rights Reserved | 28Estimate for FY04/22 Segment(Millions of yen)2021/42022/4Forecasts (Segments)ResultsEstimate% YoYIncrease/DecreaseCompositionratioProfit ratio25.7%24.2%△1.5%Commerce BusinessNet salesOperating incomePlatformBusinessNet salesOperating incomeOthers(New Businesses)※1Net salesOperating incomeProfit ratioNet salesSegment profitAdjusted amount ※29,7262,4982,308954329△273ー12,3633,18010,5502,5502,7501,050700△250ー14,0003,3508.5%2.1%ー19.2%10.1%ーー13.2%5.3%824524429623ー1,637170△100Profit ratio41.4%38.2%△3.2%371112.8%△8.4%△7.5%Total△1,000△1,10010.0%△32.8%Operating income2,1792,250713.2%Profit ratio17.6%16.1%△1.5%ー※1 Others: New services that cannot be clearly classified into either the Commerce Business or the Platform Business are described as “Others.”※2 Adjusted amount: Back office administrative expenses.75.4%76.1%ー19.6%31.3%ー5.0%ー100.0%100.0%ーー2022 Hamee Corp. All Rights Reserved | 29Progress rate in FY04/22(Millions of yen)Progress rate2022/42022/4EstimateQ3 cumulative resultsProgress rateCommerce BusinessPlatformBusinessNet salesSegment profitNet salesSegment profitProfit ratioProfit ratioOthers(New Businesses)※1Net salesSegment profitProfit ratioTotalNet salesSegment profitAdjusted amount ※2Operating incomeProfit ratio10,5502,55024.2%2,7501,05038.2%700△250－14,0003,350△1,1002,25016.1%7,5321,78323.7%2,05185041.5%394△90ー9,9792,544△6691,87418.8%71.4%69.9%74.6%81.0%56.3%36.0%ーーー71.3%75.9%60.8%83.3%ー※1 Others: New services that cannot be clearly classified into either the Commerce Business or the Platform Business are described as “Others.”※2 Adjusted amount: Back office administrative expenses.2022 Hamee Corp. All Rights Reserved | 30APPENDIX2022 Hamee Corp. All Rights Reserved | 31Company Profile2022 Hamee Corp. All Rights Reserved | 32New BusinessesHamicIR TopicsIgnite own creative soul, continue to evolve and grow the 2 main businesses, create innovative new businesses in peripheral areas, and ignite the creative soul of customers.New BusinessesPixioNew BusinessesByURCommerce Business“iFace” No.1※ in recognition rateEC (Retail) + Real (wholesale)New BusinessesHometown tax payment support serviceNew BusinessesRUKAMOPlatform BusinessNo.1※ market share industry leader Next EngineTransaction data by more than 5,236 clients※Base on in-house research2022 Hamee Corp. All Rights Reserved | 33HistoryThoughts at the time of the company’s establishmentFounder Higuchi was a university student at the time. Windows95 was released and he infered the Internet will become a social foundation in the future. Conscious of the distribution revolution through the Internet, it was difficult to handle fresh products, though the Internet supermarket business was examined. Therefore, focusing on the natural stone that he saw in the travel destination, he considered selling straps and bracelets using natural stone, and Establishment the firm.Establishment MacrowilCo., Ltd, sell and e-commerce mobile-related accessories at OdawaraCity, Kanagawa Prefecture. Sales of straps using natural stones, etc. This is the original business of the current commerce business.Launched e-commerce for mobile peripheral accessories on its website “Mobile Accessories Market”Opening Stores in Rakuten Ichiba.Smooth shift from mobile strap-centric sales to smartphone case-centric sales due to accurate understanding of the shift from traditional feature phones to smartphones.May 1998Aug 1998Jan 2000Nov 2007May 20082010Dec. 2013Background to Next Engine developmentThe Commerce business was steadily expanding, but as the company expanded in size, the frequency of e-mail contacts and inquiries related to inventory dispatch business, which had been handled by hand increased, and the burden on employees increased. In order to reduce the operational burden, the introduction of an external order management system was not suitable for operation. Therefore, the system is developed in-house.Started operation of Next EngineLaunched xternally provided of Next EngineLaunched Next Engine’s API as a platformSince it was a SaaS type system, it was available without the initial investment and the price setting of JPY10 thousand per month had a big impact on the market. This is the starting point for the current platform business.2022 Hamee Corp. All Rights Reserved | 34Net sales(Millions of yen)History (Growth Trajectory)Tokyo Stock ExchangeChanged to the First Section of the Tokyo Stock ExchangeTokyo Stock ExchangeListed on the Mothers market20152016Next EngineLaunched externallyNext EngineStart of operation2007EstablishmentYears2022 Hamee Corp. All Rights Reserved | 35Business Overview2022 Hamee Corp. All Rights Reserved | 36Business Overviewプラットフォーム事業Platform Business2022 Hamee Corp. All Rights Reserved | 37Platform Businessプラットフォーム事業Next EngineーMain functionsSaaS type EC Attractions to support the automation and streamlining of e-commerce site management operationsBasic fees (400 transactions included)JPY10 thousand per monthtransaction number401~1,001 ~3,001 ~5,001 ~7,001 ~unit priceJPY25JPY20JPY15JPY10JPY52022 Hamee Corp. All Rights Reserved | 38Platform Businessプラットフォーム事業Next EngineーClients・Next Engine supports clients in various categories※Partial posting2022 Hamee Corp. All Rights Reserved | 39Platform Businessプラットフォーム事業Next EngineーClientsNeversey Never Inc.https://neversaynever.jp/Product: Women’s Fashion and ApparelMADE IN EARTHhttps://madeinearth-store.jp/Product: Organic cotton products,Soap, furnitureInternational Swan Grouphttps://swan-group.net/Product: Clothing, fashion accessories, etc.THE BODY SHOP JAPANhttp://www.the-body-shop.co.jp/shop/Product: Natural cosmeticsWARAI MIRAIhttp://waraimirai.com/Product: Suites, Fruits, Gifts2022 Hamee Corp. All Rights Reserved | 40※Partial postingPlatform Businessプラットフォーム事業Next EngineーStrengthsBorn from EC operationIn No1 marketNumber of contracted clients ※Resilient CustomizationServices born from Strong trust backed by You can customize and opinions of “I want to industry No.1 by add features in the Apps. enjoy work more ” of our continued support from Available consistently to EC operationsEC businesses※Base on in-house researchuse regardless of changes in size of business or social environment2022 Hamee Corp. All Rights Reserved | 41Platform Businessプラットフォーム事業Next EngineーStrengthsCart Number of domesticpartnerships: 40 or moreNo 1 in the industry*SaaS type Date platformCustomizationPromotion(Partially listed)LoansAccountingPayment★ RecruitmentMain functionAPIconsultingCBEClSaes Management POS LogisticsCustomer management※ In house research, as of the end of October 20212022 Hamee Corp. All Rights Reserved | 42GMV(Billions of yen)Compared to the EC market sizeBy more than doubleGrowth rate2021/4 CAGR24.6%※1Platform Businessプラットフォーム事業Next EngineーGMV trendsNext Engine growth ratemore than double that of The domestic EC market.EC market size(Trillions of yen)JPY7.2 trillion2021/3 CAGR11.1%※2JPY12.2 trillion※1 Average annual growth rate. Calculated assuming FY04/16 as the first year.※2 In the Survey of E-Commerce conducted by the Ministry of Economy, Trade and Industry, deemed fiscal March 2016 (fiscal 2015) as the first year Calculated by us from “Market Size of BtoC-EC in the Data Sales Field.” 2022 Hamee Corp. All Rights Reserved | 43Platform Businessプラットフォーム事業Mechanism of “AI Auto Recommendation” appExamples of Up-Sell MeasuresData-based marketing solutions・Started test marketing in Criteo and advertising operations automationNo.1 in the industryTransaction dataUser behaviorPurchasing data analysisBehavior and purchasing dataFor new usersTo repeat customersSales UP also automatedRecommendation Mail GenerationAutomatic mail deliveryRecommendation Mail Delivery DetailsAutomatic operation of e-mail magazinesAutomation of advertising operations2022 Hamee Corp. All Rights Reserved | 44Platform Businessプラットフォーム事業Characteristics of Japan’s EC MarketA MallB MallC MallPrenty of EC malls competing each other, which hasdifferent consumers behind.D Mall・・・ConsumersStore openingsStore openingsStore openingsStore openingsOwn Stores(Shopify,BASE)Store openingsMultistore operation is effective for EC merchants’ business expansion.EC merchantsEC merchants in Japan face difficulties when start ・More complicated to manage orders, inventories, items at multistore in different EC malls who have original program each others.2022 Hamee Corp. All Rights Reserved | 45Platform Businessプラットフォーム事業Hamee consultingーBusiness ActivitiesHamee consultingEC consultingManagement agencyC o n s u l t a n t s i n c h a r g ef o r m u l a t e s t r a t e g i e s ,improve customer attractionthrough SEO and advertising,and provide support from av a r i e t y o f p e r s p e c t i v e s ,including repeat and higherspending per customer.O p e r a t e s E C s i t e s t h a tg e n e r a t e c o m p l i c a t e doperations from upstream todownstream, acting on behalfof customers in response totheir requests.EC store opening and construction consultingUnderwrote consulting, includingthe selection of malls and thedesign of websites and pages, tobusinesses considering openingnew EC stores in an integratedm a n n e r ,f r o m a c t u a l s i t eproduction.2022 Hamee Corp. All Rights Reserved | 46Business OverviewCommerce Business2022 Hamee Corp. All Rights Reserved | 47Commerce Businessコマース事業Commerce BusinessSupply ChainIn iFace, we have established a system that can cover planning, manufacturing, and sales in-house.2022 Hamee Corp. All Rights Reserved | 48Commerce Businessコマース事業Source of Commerce CompetitivenessMaximize EC know-how・Efficient operations by making full use of Next Engine・Store management・Customer Satisfaction・Warehouse linkage, etc.Variety of sales channels・Maximize product sales・Improve profitability through in-house planned products・Continued growth even in COVID-19Supply ChainManagement・Consumer Voices are reflected to products speedily・Expansion of product categories・Incorporation of production profits from in-house productionproductionWith iFace brandingLeveraging Growth・First Class・Reflection・New series・Peripheral accessories・Color, character developmentLaunch new brand by using brand management that gained in the process of growth iFace・Salisty、AndmeshOver the past 20 years, the Domestic Commerce Business has maintained an increasing trend in sales.2022 Hamee Corp. All Rights Reserved | 49Commerce Businessコマース事業Continuous growthAchieve continuous growth even in the mature smartphone market.Operating Income (Full Year)(Millions of yen)Even in mature marketsContinued growth2021/4 CAGR12.0%※12,498 2,198 1,780 1,637 Domestic smartphone shipments ※22018/42019/42020/42021/4(ten thousand units)3,2582021/3 CAGR0.2%※33,2763,0002,8002,6002,4002,2002,0001,8001,6001,4001,2001,00000※1 Average annual growth rate. Calculated using 2018/4 as the first year.※2 We compiled a graph based on survey data from MM Research Institute, Ltd.※3 Calculated by assuming 2018/3 (fiscal 2017) as the first year based on survey data from MM Research Institute, Ltd.2022 Hamee Corp. All Rights Reserved | 50Commerce Businessコマース事業iFaceーStrengthsDesignBrandYounggenerationThe design takes intoaccount not onlyfunctionality such as impactresistance, but also theexpressions of personalitysuch as unique curve andIts reliability is also high due toAmong young ※smartphonethe strength and usability of itsproducts,anditsbrandrecognition is 71% high amongmen and women in their 20s.※Base on in-house surveySurvey period: April, 2021users,iFace users (includingexperienced users) account formore than 40%, earning a highlevel of loyalty, enabling us tosecure a diverse range of salesabundant color valuations.Number of surveyed: 13,718destinations.Survey method:Internet survey※Focuses on women aged 15Target:Men and women agedto 24 (Our survey April 2021)15-39 (smartphone users)2022 Hamee Corp. All Rights Reserved | 51Brand Recognition (Women in their late teens)iFaceCompetitor ACompetitor BCompetitor CCompetitor DBrand Awareness (Women in their early 20s)Commerce Businessコマース事業iFaceーRecognitionOverwhelming recognition among women in their late teens and early 20s compared to other companies’ brands※Our SurveySurvey period: April, 2021Number of researchers: 1195 women in their teens/1307 women in their early 20sSurvey method: Internet surveyTarget: Women aged 15-24 (smartphone users)iFaceCompetitor A Competitor BCompetitor CCompetitor D2022 Hamee Corp. All Rights Reserved | 52High designability + Series expansion + Peripheral accessories development・First Class・ReflectionCommerce Businessコマース事業iFaceーSeries developmentVoices of iFace userwere commercialized・Look in ClearIn a web-based survey, “Full Clear Case,” which was the strongest demand, was commercialized as an item to be used in iFace.Main productsNew series・Look in Clear・CardinaDevelop peripheral accessories・Finger Ring Holder・Compact Wallet・Grip On Silicone Case2022 Hamee Corp. All Rights Reserved | 53Business OverviewNew BusinessesTo utilize the capabilities of the 2 mainbusinesses, create innovative newbusinesses. Same time, these supportthe evolution and growth of existingbusinesses2022 Hamee Corp. All Rights Reserved | 54新規事業New BusinessesHamic POCKETWhen childrentake asmartphone…・Functional designs children’s use safety(Smartphones with functional restrictions)Wish ofParents・Functions that help ensure the safety of children・Free from parent’s mobile contractWish ofchildrenparents)(In Japan “SIM LOCK” is common, see next slide)・Designs children want to brag to friends・Variety of apps such as video functions(Smartphones with functions similar to・Secure communication functions with dedicated・Apps can be downloaded from Google・Check usage and history by kids・Use highly designed iFacePlayMain functions of・Checking GPS dataHamic POCKET・Burglar alarm function・Can be purchased without regard to parent’sappscareerEtc.Parent-child “Safety”Elementary school students “Enjoyable”Educate smartphone and IT “Literacy”2022 Hamee Corp. All Rights Reserved | 55新規事業New BusinessesHamee Hometown Tax Payment Support Service2022 Hamee Corp. All Rights Reserved | 56新規事業New BusinessesRUKAMO-For Sustainable Society-We will deliver sustainable servicesthat fulfill SDGs goal of 12,”Responsibilities to make productsand services.“50% points buck on every purchaseReduce slow moving and disposal.2022 Hamee Corp. All Rights Reserved | 57Reference information2022 Hamee Corp. All Rights Reserved | 58(Millions of yen)(Millions of yen)Q3 FY04/22 Balance Sheet2021/4 2022/4 Q3■Fixed assets ■Current assets(Millions of yen)2021/4 2022/4 Q3■Net assets ■Non-current liabilities ■Current liabilities2022 Hamee Corp. All Rights Reserved | 59Next Engine indicatorsFiscal YearNumber of clientsNumber of stores2020/42021/4Q1Q2Q3Q4Full yearQ1Q23,7183,7903,8493,9973,9974,1794,35128,81429,37630,03430,83530,83531,77133,114GMV (Billions of yen)159169185209722237208ARPU (yen)35,26433,89134,31635,74034,80338,48934,902Monthly churn rate1.00%1.06%0.87%0.98%0.98%0.82%0.88%Transaction number processed (ten thousand)2,2482,1332,3022,8649,5473,3942,876LTV(Lifetime Value) (yen)3,543,5833,184,6503,923,2313,662,8943,578,589 4,684,866 3,961,527Fiscal YearNumber of clientsNumber of storesGMV (Billions of yen)ARPU (yen)Monthly churn rateTransaction number processed (ten thousand)2021/42022/4Q2Q3Q4Full yearQ1Q34,5134,7394,7394,9495,0935,23634,46136,00436,00437,76539,13440,19225336,9490.86%24535,8150.90%94436,5390.87%26336,5250.81%26835,1410.95%30837,0770.96%LTV(Lifetime Value) (yen)4,275,7173,978,0154,225,0314,519,0893,702,8953,857,0323,3643,32112,9553,5433,3353,909※GMV and the number of orders processed are the totals at the end of each quarter. Monthly churn rate’s figures are calculated by dividing the number of contracted clients end of Q4 from the average number of cancellations during the quarterly period.2022 Hamee Corp. All Rights Reserved | 60Next Engine Global expansion”Next Engine Korea” ・Next Engine Korea compatible a number ofKorean EC malls(clients)・Net increase slowed in Q3and cancellations increased due to the influence of clients who have a short-term duration among the clients acquired in Q2.To establish subscription model in oversea market based on mid term strategy”Next Engine Korea” compatible EC malls(As of the end of April 2021/Partial excerpt)Next Engine Korea Number of clients as of December 2021960 clients2022 Hamee Corp. All Rights Reserved | 61Shareholder ReturnsーDividend per shareDividend amount(Yen)・Dividend payout ratio was 10% until FY04/21・In FY04/22, we expects adividend payout ratio of20% to increase substantially in order to achieve its medium-term management plan.(forecast)2022 Hamee Corp. All Rights Reserved | 62CORPORATE DX & SDGs～DX and SDGs that set fire to their own creative spirits~2022 Hamee Corp. All Rights Reserved | 63Fostering a corporate cultureBecause of VUCA,We are fostering on aflexible organizationalculture that celebratesinnovative challenges,that is, fostering aculture the creativespirit burns.2022 Hamee Corp. All Rights Reserved | 64Work style DX・Full telework has been introduced, and the personnel system also has been refurbished.・ Both in-house meetings and brain storming succeeded in bringing almost all communications online.・ Started the express commuting system “Flexible commuting to HQ” to make it easier for teleworkemployees to come offices.Renovation of the personnel systemAdoption of toolsRemote work -Preparation-allowancesRemote work allowancesOnline conferencing toolsOnline WhiteboardMedia platform”Allowances for Odawara living””Flexible commutingto HQ”2022 Hamee Corp. All Rights Reserved | 65Workplaces DXIntegrated Hamee Consulting & Tokyo Sales OfficeOdawara Head Office Renovation・Since July 2020, we have instituted a new normal work style that allows employees to freely select office work and remote work, and we have been promoting a work style DX.・On the other hand, we believe that ideas born from real communication are also important, and in June 2021, we renewed the Odawara Head Office with the aim of revitalizing such communication.2022 Hamee Corp. All Rights Reserved | 66Sustainable managementSocialBuilding Strong Infrastructure in the EC MarketSupporting Children’s ICT Education with Safe and Secure IT ProductsSupporting Hometown Tax Payment ManagementNext EngineHamic businessHometown Tax Payment Support ServiceHometown Tax Payment SupportSustainableManagementEnvironmentGovernanceSustainable Ethical ECRUKAMOCorporate Governance Report2022 Hamee Corp. All Rights Reserved | 67Disclaimer■ This document includes the outlook for our company, future plans, and managerial goals. These forward-looking statements are based on current assumptions regarding future events and trends, and there is no guarantee that the assumptions are correct. There is a possibility that actual results will be different from those mentioned in this document for various reasons.■ Unless otherwise specified, the financial data in this document are indicated in accordance with the accounting principles that are generally recognized in Japan.■ Regardless of future events, the company will not necessarily revise our announcements about future outlooks, etc. unless required to do so in accordance with disclosure regulations.■ Information about other companies is based on publicly available data.■ This document is not intended for promoting the acquisition of securities, sale or purchase ofsecurities (hereinafter “soliciting”). This document does not support soliciting, or serve as the grounds for any contract or obligation.■ All company names, system names, product names and trademark or registered trademarkby other companies are basically trademark or registered trademark under other company.This document doesn’t show 「™」 or 「®」 to make clear■ Wordings of any translated versions of this document, the meaning and wording of the Japanese Language version shall prevail.2022 Hamee Corp. All Rights Reserved | 68For inquiries about this material and IR, please contact the following.Corporate Planning Department, Hamee Corp.TEL: +81 465 42 9181 Website: https://hamee.co.jp/2022 Hamee Corp. All Rights Reserved | 69