ラクーンホールディングス（3031） – FY 4/2022 (Ended April 2022)Financial Results

FY 4/2022 (ended April 2022)Q4 Financial ResultsJune 10, 2022RACCOON HOLDINGS, Inc. Code: 3031 TSE Prime MarketFY 4/2022 Q4 Results© 2000 RACCOON HOLDINGS, Inc.2Executive Summary (1)H O LD I N GS FY 4/2022 started with a low growth rate compared to FY 4/2021, a year that saw a rapid growth in sales thanks to special demand due to COVID-19. The number of users, however, increased steadily owing to continued high demand for each service, assuring a digital shift is continuing to take place in BtoB transactions. From the second half of the year, with the recovery of the domestic economy, growth in sales showed a positive trend, resulting in a 9.7% increase in net sales year on year. Net sales excluding net sales derived from the GMV of masks and sterilization goods in the EC business increased 12.2% year on year, recording double-digit growth. The domestic gross merchandise value of SUPER DELIVERY is steadily increasing with the recovery of the domestic economy. The gross merchandise value of business operators other than retailers rose sharply, accounting for a larger portion. As the value of transactions per customer of these operators is low, the overall value of transactions per customer slightly decreased from Q3 to Q4, which is viewed positively as expansion of the user base. SUPER DELIVERY overseas has enjoyed continuous growth in GMV backed by demand for the service, which outweighed factors that could hinder growth in the short term such as delays in deliveries due tocontainer shortages and higher shipping costs owing to surging crude oil prices, as well as the situation in Ukraine and lockdowns of major cities in China.© 2000 RACCOON HOLDINGS, Inc.3Executive Summary (2)H O LD I N GS For Paid in the Financial business, the value of transactions of member companies grew and the number of member companies increased from the second half of the year on the back of recovery in the domestic economy. As a result, the value of transactions and net sales increased 19.4% and 16.7% year on year, respectively, achieving a very positive result. The number of defaults in the Financial business continued to rise gradually due to the relaxation of credit screening criteria as the domestic economy returns toward normal but remained far lower than pre-pandemic levels. The number of URIHO projects continued to increase steadily. Sales increased 56.4% year on year. Operating income decreased 5.9% year on year as a result of higher selling, general and administrative expenses comprising an increase in advertising expenses (+19.9% YoY) due to the strengthening of promotion and higher personnel expenses (+11.0% YoY) due to an increase in the number of staff. We recorded an impairment loss of goodwill of 147 million yen as extraordinary losses, as a result of reviewing future plans of RACCOON RENT, Inc., a consolidated subsidiary providing a rent guarantee business, in light of the deterioration of the external environment caused by the prolonged COVID-19 pandemic and other factors.© 2000 RACCOON HOLDINGS, Inc.4Trends in Consolidated Net Sales (1)H O LD I N GSConsolidated net sales excluding net sales derived from the GMV of masks and sterilization goods in the EC business increased 12.2% year on year, recording double-digit growth(Unit: Million Yen)Net sales derived from the GMV of masks and EC事業のマスク・除菌グッズのGMVに由来した売上高（概算）sterilization goods in EC business (estimate)4,789 4,364 3,477 2,980 2,546 1,932 2,056 2,229 2,359 4,173 4,684 1,806 1,613 1,306 1,381 5,0004,5004,0003,5003,0002,5002,0001,5001,0005000FY 4/2010 FY 4/2011 FY 4/2012 FY 4/2013 FY 4/2014 FY 4/2015 FY 4/2016 FY 4/2017 FY 4/2018 FY 4/2019 FY 4/2020 FY 4/2021 FY 4/202222/416/420/418/419/421/414/417/415/413/410/411/412/4Q4Q4Q4Q4Q4Q4Q4Q4Q4Q4Q4Q4Q4© 2000 RACCOON HOLDINGS, Inc.5Trends in Consolidated Net Sales by Quarter (1)H O LD I N GSFrom the second half of the year, the growth rates of both the EC business and the Financial business continued to rise, recording a year-on-year increase of 13.5% in Q41,084 1,065 1,096 1,118 1,134 1,161 1,270 1,224 464 491 810 817 818 849 863 395 409 423 416 436 446 (Unit: Million Yen)ECECFinancialフィナンシャル669 682 243 257 364 351 362 377 386 200425 425 446 466 455 472 476 946 387 558 1,4001,2001,0008006004000688 655 673 702 697 714 760 778 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4FY 4/201919/4FY 4/202020/421/4FY 4/2021FY 4/202222/4© 2000 RACCOON HOLDINGS, Inc.6Trends in Consolidated Operating Income by Quarter (1)H O LD I N GSDue to an increase in selling, general and administrative expenses as a result of investing advertising expenses and personnel expenses, operating income decreased 5.9% year on year, and operating margin came to 23.5%.(Unit: Million Yen)Operating 営業利益incomeOperating 営業利益率margin7.9%9.1%8.7%102 125 140 10.0% 12.8%247 181 1,4001,2001,000800600400200023.5%30.0%27.4%17.7%18.4%20.3%1,126 16.3%17.8%17.2%1,196 15.0%336 393 420 437 706 548 35.0%25.0%20.0%10.0%5.0%0.0%16/4FY 4/2010 FY 4/2011 FY 4/2012 FY 4/2013 FY 4/2014 FY 4/2015 FY 4/2016 FY 4/2017 FY 4/2018 FY 4/2019 FY 4/2020 FY 4/2021 FY 4/202214/419/420/417/422/415/418/421/412/413/411/410/4Q4Q4Q4Q4Q4Q4Q4Q4Q4Q4Q4Q4Q4© 2000 RACCOON HOLDINGS, Inc.7Trends in Consolidated Operating Income by Quarter (2)H O LD I N GSAdjustments tend to increase in Q4 every year due to the recording of new graduate recruiting costs. Quarterly consolidated operating income was down 11.8% quarter on quarter, but up 23.1% year on year.(Unit: Million Yen)500ECECFinancialフィナンシャルAdjustment調整額Partially reversed allowances added in the preceding Q4 (22 million yen)Reversed allowances added in the preceding Q4 (18 million yen)M&A brokeragefees133 37 137 41 Operating income on settlement of 154 accounts45 175 73 149 26 17 167 164 186 196 186 201 203 Additional 41 million yen recorded for allowances189 75 161 46 344 22 97 317 149 Operating income on settlement of accounts333 220 41 267 296 18 137 330 291 236 259 245 113 98 97 116 103 283 258 273 266 252 325 333 -71 -68 -81 -87 -84 -87 -88 -8 -80 -107 -115 -118 -134 -123 -111 -108 -140 4003002001000-100-200Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4FY 4/201919/420/4FY 4/202021/4FY 4/202122/4FY 4/2022© 2000 RACCOON HOLDINGS, Inc.8FY 4/2022 ResultsH O LD I N GSNet income decreased 55.7％ year on year due to the recording of a loss on valuation of investment securities caused by poor performance at some investment targets and an impairment loss of goodwill of a subsidiaryFY 4/2022FY 4/2021YoYEarnings forecastsAchievement rateNet salesGross profitSelling, general and administrative expenses- Advertising and sales promotion expensesEBITDAOperating incomeOperating marginOrdinary incomeNet income attributable to owners of parent4,7893,9512,8256101,2681,12623.5%1,13535450819.9%4,3643,7142,5181,3391,19627.4%1,2169.7%6.4%12.2%-5.3%-5.9%-3.9pt-6.7%(Unit: Million Yen)4,759100.7%ーーー1,2301,09022.9%1,080ーーーー103.1%103.3%105.1%800-55.7%44080.6%© 2000 RACCOON HOLDINGS, Inc.9Trends in Results (Quarterly Basis)H O LD I N GSGross profit increased 3.0% quarter on quarter due to higher net sales, and operating margin was 22.9% due to an increase in selling, general and administrative expenses(Unit: Million Yen)FY 4/2021Q4FY 4/2022Q1Q2Q3Q41,1181,1341,161Net salesGross profitSelling, general and administrative expenses- Advertising and sales promotion expensesOperating incomeOrdinary incomeNet income attributable to owners of parent946709188236260170948689135259257169958713154245237-1711,2241,0076761513303282991,2701,03774516829131158Operating margin21.1%22.9%21.1%27.0%22.9%© 2000 RACCOON HOLDINGS, Inc.10Factors Behind Change in EBITDA (Year-on-Year Comparison)H O LD I N GSEBITDA was 1,268 million yen (a decrease of 5.3% year on year) due to a gradual increase in the rate of cost of sales in the previous fiscal year, which had remained at a level lower than past years, coupled with a 188 million yen increase in cost of sales, as well as increases in advertising expenses and personnel expenses(Unit: Million Yen)425 Increase innet sales188 Increase incost of sales101 Increase inadvertisingexpenses144 Increase inpersonnelexpenses61 Increase inotherexpenses1,339 1,268 2,0001,8001,6001,4001,2001,0008006004002000FY 4/20212021年4月期EBITDAEBITDANet sales売上高Cost of sales売上原価Advertising広告費expensesPersonnel人件費expensesOtherその他FY 4/20222022年4月期EBITDAEBITDA© 2000 RACCOON HOLDINGS, Inc.11Change in Composition of ExpensesH O LD I N GSDue to increases in advertising expenses and personnel expenses, selling, general and administrative expenses stayed at a high level(Unit: Million Yen)Otherその他Personnel 人件費expensesAdvertising広告宣伝費expenses519 57 294 470 58 278 414 44 415 46 258 257 637 132 608 102 563 85 495 61 503 61 519 519 73 79 298 306 299 297 313 336 336 709 689 188 135 713 154 676 151 745 168 327 369 371 334 382 112 112 167 133 135 135 146 142 164 169 168 193 184 186 190 194 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q420192020202120228007006005004003002001000© 2000 RACCOON HOLDINGS, Inc.12Financial PositionH O LD I N GSNon-current assets (intangible assets) decreased due to the recording of a loss on valuation of investment securities caused by poor performance at some investment targets and an impairment loss of goodwill of a subsidiaryFY 4/2022FY 4/2021DifferenceCurrent assetsNon-current assets- Property, plant and equipment- Intangible assets- Investments and other assetsCurrent liabilitiesNon-current liabilitiesNet assetsTotal assets11,7962,2641,4363364907,6291,0665,3649,8722,5791,4604636555,8591,2505,34214,06012,452(Unit: Million Yen)Compared with the end of the previous fiscal year1,923119.5%-315-23-127-1641,770-184221,60887.8%98.4%72.6%74.9%130.2%85.3%100.4%112.9%© 2000 RACCOON HOLDINGS, Inc.13Cash FlowH O LD I N GSCash flows from operating activities increased because the irregularly early payment of accounts payable-trade made at the end of the previous fiscal year due to the consecutive holidays in April –May, which caused accounts payable-trade to temporarily decrease significantly, was normalized(Unit: Million Yen)FY 4/2022FY 4/2021DifferenceCash flows from operating activitiesCash flows from investment activities1,856-197184-43Cash flows from financing activities-1,128-1,9721,671-153844Increase/decrease in cash and cash equivalents531-1,8312,362Cash and cash equivalents at end of period5,3334,802531© 2000 RACCOON HOLDINGS, Inc.14Summary by Segment© 2000 RACCOON HOLDINGS, Inc.15EC BusinessFY 4/2022 Q4 SummaryH O LD I N GSSegment sales2,950 million yen＋ 8.5% Segment profit1,178 million yen＋ 2.6% YoYYear-on-year comparison excluding masks and sterilization goods＋ 1.5％＋ 8.2％＋ 39.3％＋ 38.8％Domestic gross merchandise valueOverseas gross merchandise valueTotal gross merchandise value: 21,687,918,000 yen(+9.2% YoYExcluding masks and sterilization goods+14.9%）YoYIn terms of sales In Japan, with a gradual decrease in cases of the Omicron variant, restrictions were relaxed in stages. An increase in the number of buying customers was led by business operators other than retailers. As the value of transactions per customer of these operators is low, the overall value of transactions per customer in Japan dropped quarter on quarter, while gross merchandise value increased steadily. Overseas, both the number of buying customers and the value of transactions per customer increased, achieving a quarter-on-quarter increase in gross merchandise value,despite many negative factors such as shipping costs that remained high, delays in deliveries due to container shortages, and a deterioration in overseas conditions.In terms of expenses Advertising expenses increased by 17.3% year on year due to ongoing proactive development of promotions. Personnel expenses increased by 12.7% year on year due to the ongoing increase in the number of staff associated with business expansion.© 2000 RACCOON HOLDINGS, Inc.16EC Business(Reference)Trends in SUPER DELIVERY Gross Merchandise Value (1)H O LD I N GSThe gross merchandise value of masks and sterilization goods remained steady, causing almost no impact year on year for Q4. The quarterly gross merchandise value of apparel and miscellaneous goods steadily increased by 3.8% quarter on quarter and 12.8% year on year. Total quarterly gross merchandise value hit a new record highアパレル・雑貨Apparel andmiscellaneous goodsマスク・除菌グッズMasks and sterilization goods5,127 5,140 5,072 5,170 4,915 4,669 5,821 5,623 3,0002,672 2,674 2,852 3,044 2,927 2,957 3,069 3,854 2,667 2,666 2,835 3,031 2,919 2,946 2,968 3,228 4,245 4,261 4,579 4,936 4,837 4,932 5,363 5,567 (Unit: Million Yen)6,0005,0004,0002,0001,0000Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q42019202020212022© 2000 RACCOON HOLDINGS, Inc.17EC BusinessTrends in SUPER DELIVERY Gross Merchandise Value (2)H O LD I N GSAchieved record-high gross merchandise value for both in Japan and overseas.Overseas gross merchandise value increased by 8.9% quarter on quarter despite various impacts such as soaring shipping costs, delays in deliveries due to container shortages, and a deterioration in overseas conditions.(Unit: Million Yen)Domestic国内Overseas total海外2…403 2,674 429 2,852 452 3,044 541 2,927 2,957 529 485 3,069 562 1,0002,269 2,245 2,399 2,503 2,397 2,471 2,506 3,854 835 3,018 6,0005,0004,0003,0002,00005,127 935 4,915 1,049 4,669 937 5,140 5,072 5,170 1,137 1,405 1,413 5,821 5,623 1,356 1,477 4,192 3,731 3,866 4,002 3,666 3,757 4,266 4,343 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q42019202020212022© 2000 RACCOON HOLDINGS, Inc.18EC BusinessNo. of Buying Customers and Value of Transactions Per CustomerH O LD I N GSThe ratio of business operators other than retailers, which have low value of transactions per customer, increased, causing a slight decrease in value of transactions per customer Value of transactions 客単価per customer236,340 237,608 Number of 購入小売店数retailers260,512 230,109 225,808 220,969 217,113 213,749 232,411 231,592 228,457 224,072 212,228 210,912 222,688 221,389 (Unit: Stores)30,00025,00020,00015,00010,0005,0000(Unit: Yen)300,000250,000200,000150,000100,00050,0000Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q42019202020212022© 2000 RACCOON HOLDINGS, Inc.19EC Business(Reference)Breakdown of No. of Buying CustomersH O LD I N GSThe number of first-time purchasers recovered. Growth in the number of repeat purchasers overseas was flat due to soaring shipping costs, while those in Japan increased smoothly, steadily accumulating higher purchaser numbers overall(Unit: Store)Repeat リピートpurchaserFirst-time 初回purchaser25,00020,00015,00010,0005,0000Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q42019202020212022* First-time purchasers are business operators who made purchases for the first time during the quarter. Those who made additional purchases during the same quarter after their initial purchase are counted as first-time purchasers.© 2000 RACCOON HOLDINGS, Inc.20EC Business(Reference)Change in Number of Participating CompaniesH O LD I N GSThe number of participating companies continued to steadily increase3,019 3,083 3,171 2,904 2,633 2,278 2,032 2,112 1,5001,313 1,360 1,369 1,853 1,744 1,419 1,508 1,623 (Unit: Company)3,5003,0002,5002,0001,0005000Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q42019/4FY 4/20192020/4FY 4/20202021/4FY 4/20212022/4FY 4/2022© 2000 RACCOON HOLDINGS, Inc.21EC Business(Reference)Impact of Change in Fee System of Participating CompaniesH O LD I N GSThe take rate remained flat as it will take some time for the gross merchandise value of participating companies with high rates to grow(Unit: Million Yen)System usage salesシステム利用料売上Take rateテイクレート700600500400300200100013.0%12.5%12.0%11.5%11.0%10.5%10.0%9.5%9.0%Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q42019202020212022* Take rate = System usage sales/gross merchandise value© 2000 RACCOON HOLDINGS, Inc.22EC BusinessTrends in “SUPER DELIVERY” SalesH O LD I N GSSystem usage sales increased due to the increase in gross merchandise valueSystem usage sales accounted for over 80% of sales(Unit: Million Yen)Participating 出展企業向け売上company salesMember retailer 会員小売店向け売上salesSystem usage salesシステム利用料売上423 423 89 61 87 60 444 88 60 463 88 61 452 90 61 469 473 91 61 95 62 272 275 294 314 300 316 316 555 94 62 398 685 92 63 669 85 69 651 102 66 698 693 81 72 79 75 709 77 77 755 72 80 774 71 79 529 483 514 544 538 555 602 622 9008007006005004003002001000Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q42019202020212022* System usage sales = fees calculated by charging a certain rate to GMV and collected from participating companies Participating company sales = basic participation fees Member retailer sales = monthly membership fees (collected from domestic retailers only)© 2000 RACCOON HOLDINGS, Inc.23EC BusinessTrends in Sales by QuarterH O LD I N GSOverall quarterly net sales for EC increased by 10.8% year on year and 2.5% quarter on quarter688 655 673 702 697 714 760 778 425 425 446 466 455 472 476 558 (Unit: Million Yen)9008007006005004003002001000Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4FY 4/201919/4FY 4/202020/4FY 4/202121/4FY 4/202222/4© 2000 RACCOON HOLDINGS, Inc.24EC BusinessTrends in Segment Profit by QuarterH O LD I N GSQuarterly segment profit increased by 21.9% year on yearSegment profit margin remained flat at 42.9%(Unit: Million Yen)400350300250200150100500Segment profitセグメント利益Advertising 広告宣伝費expensesSegment profit marginセグメント利益率333 60.0%325 333 50.0%267 283 273 266 258 252 40.0%196 186 186 201 203 167 164 114 114 105 122 108 110 20.0%80 71 30.0%10.0%0.0%Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q419/4FY 4/201920/4FY 4/202021/4FY 4/202122/4FY 4/2022© 2000 RACCOON HOLDINGS, Inc.25Financial BusinessFY 4/2022 Q4 SummaryH O LD I N GSSegment salesSegment profit2,074 million yen431 million yenGuaranteePaymentIn terms of salesThe guarantee balance of URIHO increased 58.4% compared with the end of the previous fiscal year due to a steady increase in the number casesFrom the second half of the year, partly due to the recovery of the domestic economy, transaction volume continued to increase, resulting in a year-on-year increase of 19.4%Rent guaranteeThe guarantee balance continued to steadily accumulate* Comparison excluding internal salesYoY+11.8% -17.4% Substantial year-on-year comparison deducting the reversal of additional allowances from the segment profit for the previous fiscal year–10.3% YoY+2.9%+56.4%+16.7%-0.2%In terms of expenses The amount of guarantees provided increased moderately but remained lower than pre-pandemic levels.＋ Advertising expenses increased 32.4% year on year as a result of the strengthening of promotions＋ Personnel expenses increased 12.1% year on year due to the increase in the number of staff associated with the business expansionSegment profit margin dropped 6.9pt year on year to 20.8%.Segment profit was down 17.4% year on year.© 2000 RACCOON HOLDINGS, Inc.26Financial BusinessTrends in Sales by QuarterH O LD I N GSNet sales excluding inter-segment transactions increased by 5.7% quarter on quarter and 18.1% year on year, recording double-digit growth364 351 362 377 386 387 395 409 423 416 491 464 436 446 (Unit: Million Yen)243 257 6005004003002001000Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q419/4FY 4/201920/4FY 4/202021/4FY 4/202122/4FY 4/2022* Inter-segment transactions are excluded.© 2000 RACCOON HOLDINGS, Inc.27Financial BusinessTrends in Segment Profit by QuarterH O LD I N GSQuarterly segment profit margin remained around 24% throughout the year, higher than pre-pandemic levels, despite a gradual increase in default costs and calculated increases in personnel expenses and advertising expenses(Unit: Million Yen)Reversed allowances added in year-earlier Q4 (18 million yen)Segment profitAdvertising expenses Segment profit marginPartially reversed allowances added in year-earlier Q4 (22 million yen)Recorded M&A brokerage fees of 26 million yenOperating income on settlement of accountsAdditional 41 million yen recorded for allowancesOperating loss on settlement of accountsFY 4/2019FY 4/2020FY 4/2021FY 4/2022* Segment profit margin calculated excluding Inter-segment transactions.© 2000 RACCOON HOLDINGS, Inc.28Financial BusinessTrends in the Rate of Cost of SalesH O LD I N GSRate of cost of sales is increasing gradually due to the relaxation of credit screening criteria, but remained lower than the pre-pandemic levels35.1%9.6%Rate of cost of sales on settlement of accounts31.1%Additional recording of allowancesPartial reversal of allowances added in the preceding Q429.5%28.6%27.0%26.5%24.6%4.9%Rate of cost of sales on settlement of accounts32.6%Partial reversal of allowances added in the preceding Q43.9%18.5%22.2%19.6%23.4% 24.3%14.0%20.8%Rate of cost of sales on settlement of accounts17.1%45.0%40.0%35.0%30.0%25.0%20.0%15.0%10.0%5.0%0.0%Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q42019/4FY 4/20192020/4FY 4/20202021/4FY 4/20212022/4FY 4/2022© 2000 RACCOON HOLDINGS, Inc.29Financial BusinessTrends in “Paid” Transaction ValueH O LD I N GSTransactions of member companies continued to increase steadily, causing external transactions to increase by 7.3% quarter on quarter and 21.2% year on yearExternal transactions外部取引（グループ外の取扱高）Internal transactions内部取引(EC事業での取扱高）8,139 7,911 8,101 9,584 2,477 9,053 2,429 6,586 6,604 6,605 2,276 2,063 2,080 7,302 7,429 2,408 2,242 7,773 2,271 5,971 1,701 5,602 1,624 5,225 1,637 6,245 6,220 1,757 1,670 1,737 1,713 1,802 3,977 4,270 3,588 4,488 4,549 4,848 4,891 4,802 4,894 5,186 5,501 5,862 5,847 6,021 6,623 7,107 (Unit: Million Yen)10,0009,0008,0007,0006,0005,0004,0003,0002,0001,0000Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q42019202020212022© 2000 RACCOON HOLDINGS, Inc.30Financial BusinessTrends in the Credit Guarantee BalanceH O LD I N GSThe guarantee balance of URIHO increased by 14.7% quarter on quarter and 58.4% year on year, contributing to the accumulation of the total guarantee balance (a year-on-year increase of 33.3%)30,755 27,656 26,046 24,328 23,076 20,865 18,029 18,403 18,835 13,609 14,073 16,011 15,093 11,403 12,193 10,311 (Unit: Million Yen)35,00030,00025,00020,00015,00010,0005,0000Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q42019202020212022© 2000 RACCOON HOLDINGS, Inc.31Financial BusinessTrends in the Rent Guarantee Balance (Actual Basis)H O LD I N GSThe pace of growth in guarantee balance picked up for both residential properties and businesses6,265 6,049 6,546 5,435 5,622 5,832 6,801 6,941 6,851 6,735 6,923 7,018 7,220 7,539 (Unit: Million Yen)8,0007,0006,0005,0004,0003,0002,0001,00001,224 1,252 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q42019202020212022* The figures indicate the actual guarantee balance calculated by the formula of guarantee balance / guarantee period x average implementation period. Accordingly, the figures differ from the balances indicated in the relevant Summary of Financial Results and Securities Report.© 2000 RACCOON HOLDINGS, Inc.32Earnings Forecasts for the Fiscal Year Ending April 2023© 2000 RACCOON HOLDINGS, Inc.33Earnings Forecasts for the Fiscal Year Ending April 2023H O LD I N GSFY 4/2023 (Forecast)FY 4/2022(Actual)Net salesEBITDAOperating incomeOrdinary incomeNet income5,5001,4501,3001,300810(Unit: Million Yen)YoY+14.8%+14.3%+15.4%+14.5%+128.4%4,789 1,268 1,126 1,135 354 Net income per share36.76 Yen15.97 Yenー© 2000 RACCOON HOLDINGS, Inc.34FY 4/2023 Earnings ForecastsH O LD I N GSNet salesProfit growth rateAs the digital shift in B2B transactions has been progressing, it is expected that the business environment for the Company’s services will continue to be favorable.Although the impact of COVID-19 is unpredictable, the impact on special demand products such as masks and sterilization goods will be roughly the same as in FY 4/2022 in the EC business.Cost of salesDefaults in the Financial businessTo steadily capture opportunities for business expansion brought about by the ongoing favorable business environment and the normalization of economic activity, the Company will more actively offer credit lines compared to the previous fiscal year. Therefore, a slight increase in the default rate is anticipated. Operating margin is projected to be flat due to higher costs to achieve growth in net sales, along with increases in advertising expenses and personnel expenses.Increase in advertising expensesContinue to strengthen promotion activities. The Company will also strengthen sales promotion aimed at improving customer LTV for SUPER DELIVERY in the EC business. As such, advertising expenses are assumed to increase by slightly over 25% year on year.Increase in personnel expensesActively hire engineers and designers, while decreasing recruitment in other positions. As such, personnel expenses are assumed to increase by slightly less than 15% year on year.For system development, we will consider the use of system engineering services and other outsourcing contractors. An increase in associated costs is therefore projected.© 2000 RACCOON HOLDINGS, Inc.35Reference: Appendix© 2000 RACCOON HOLDINGS, Inc.36Trends in Consolidated Net Sales by QuarterH O LD I N GS(Unit: Thousand Yen)201720181Q2Q3Q4Q1Q2Q3Q4Q392,285393,391409,310416,992411,858422,816429,159431,392177,263182,555189,081198,432200,454204,346218,443227,608569,548575,946598,391615,424612,313627,162647,603659,000201920201Q2Q3Q4Q1Q2Q3Q4Q425,150425,472446,243466,189455,214472,263476,792558,665243,873257,229364,526351,713362,899377,467386,461387,906669,023682,702810,769817,902818,113849,730863,254946,571202120221Q2Q3Q4Q1Q2Q3Q4Q688,464655,525673,588702,650697,548714,229760,062778,836395,763409,649423,019416,060436,585446,940464,588491,1921,084,2271,065,1751,096,6071,118,7101,134,1331,161,1691,224,6511,270,028ECFinancialTotalECFinancialTotalECFinancialTotal© 2000 RACCOON HOLDINGS, Inc.37Trends in Consolidated Operating Income by QuarterH O LD I N GS201720181Q2Q3Q4Q1Q2Q3Q4Q139,203140,305154,643150,387150,866159,467165,583169,22713,87813,67914,97913,47026,95219,23525,0165,055-58,634-48,480-51,960-60,661-71,758-72,556-68,443-70,95794,448105,504117,662103,197106,060106,146122,156103,325(Unit: Thousand Yen)201920201Q2Q3Q4Q1Q2Q3Q4Q167,308164,168186,450196,600186,422201,232203,865267,60237,53341,63817,83945,82373,97975,58946,154-8,196-71,567-68,219-81,257-87,592-84,626-87,353-88,140-80,443Total133,274137,587123,032154,831175,775189,468161,878178,963202120221Q2Q3Q4Q1Q2Q3Q4Q333,001283,910258,746273,772266,643252,695325,573333,849119,745149,092156,60997,068116,433103,780113,02398,347Adjustment-107,999-115,067-118,415-134,296-123,752-111,402-108,200-140,909Total344,748317,936296,940236,544259,324245,073330,395291,287ECFinancialAdjustmentTotalECFinancialAdjustmentECFinancial© 2000 RACCOON HOLDINGS, Inc.38EC: Trends in “SUPER DELIVERY” SalesH O LD I N GS(Unit: Thousand Yen)201720181Q236,04561,3622Q238,41662,4423Q252,67161,8544Q260,82461,9861Q254,91161,5382Q267,00661,3423Q275,82361,0504Q277,46561,00294,18191,49693,79392,98694,27393,14190,78591,183391,589392,354408,319415,797410,722421,490427,659429,651Gross merchandise value2,373,6042,364,0002,504,8252,592,0732,540,1722,607,7752,704,5722,731,729201920201Q272,08261,1702Q275,30160,7123Q294,52460,8884Q314,23961,0701Q300,68461,8142Q316,37761,8013Q316,32162,3154Q398,84662,28589,90387,31288,61088,41590,06691,21395,09294,418423,155423,326444,023463,724452,564469,392473,730555,550Gross merchandise value2,672,9492,674,9292,852,1573,044,7162,927,6202,957,3073,069,0193,854,776202120221Q529,04063,1292Q483,69666,1473Q514,32969,6784Q544,55272,3201Q538,44675,7022Q555,52077,2663Q602,57880,1364Q623,73779,74892,962102,08785,78781,77279,19977,07272,79371,656685,132651,931669,794698,644693,347709,859755,507774,141Gross merchandise value5,127,9354,669,6054,915,7255,140,6815,072,6755,170,7065,623,3235,821,213System usage salesMember retailer salesParticipating company salesTotalSystem usage salesMember retailer salesParticipating company salesTotalSystem usage salesMember retailer salesParticipating company salesTotal© 2000 RACCOON HOLDINGS, Inc.39EC: No. of Buying Customers That Purchased Via “SUPER DELIVERY” and Value of Transactions Per CustomerH O LD I N GSNo. of buying customers (stores)Value of transactions per customer (yen)No. of buying customers (stores)Value of transactions per customer (yen)No. of buying customers (stores)Value of transactions per customer (yen)No. of buying customers (stores)Value of transactions per customer (yen)1Q2Q3Q4Q1Q2Q3Q4Q8,7598,6628,7968,9378,9198,7638,8759,027263,338275,998273,161272,449254,966268,478270,505283,6231Q2Q3Q4Q1Q2Q3Q4Q9,0779,1299,3189,6549,82910,21010,49711,046261,496258,955268,815268,497258,436255,413257,651247,3041Q2Q3Q4Q1Q2Q3Q4Q11,61611,84612,06812,81413,24913,62114,35816,586230,109225,808236,340237,608220,969217,113213,749232,411201520172019202120162018202020221Q2Q3Q4Q1Q2Q3Q4Q19,68420,16321,51722,94223,90224,51625,25226,294260,512231,592228,457224,072212,228210,912222,688221,389© 2000 RACCOON HOLDINGS, Inc.40Financial: Trends in “Paid” Transaction ValueH O LD I N GS(Unit: Thousand Yen)1Q2Q3Q4Q1Q2Q3Q4QInternal transactionsExternal transactionsTotal1,598,3981,735,5271,703,6911,750,5671,637,7971,699,1681,733,0221,869,146728,416839,188980,7241,157,9491,355,8571,539,2871,681,1441,888,8492,326,8152,574,7162,684,4162,908,5172,993,6543,238,4553,414,1673,757,9961Q2Q3Q4Q1Q2Q3Q4QInternal transactionsExternal transactionsTotal1,652,2251,672,8281,741,9221,767,5141,682,3721,724,5561,751,2251,737,6942,000,2912,311,5752,597,6372,841,2592,829,9132,920,3733,105,2373,297,5113,652,5163,984,4034,339,5604,608,7744,512,2854,644,9304,856,4625,035,2051Q2Q3Q4Q1Q2Q3Q4QInternal transactionsExternal transactionsTotal1,637,8801,624,8831,701,8401,757,2361,670,5171,737,9781,713,4161,802,9433,588,0143,977,4564,270,1154,488,1594,549,9494,848,6324,891,3034,802,1975,225,8945,602,3405,971,9556,245,3956,220,4676,586,6116,604,7196,605,141201520172019202120162018202020221Q2Q3Q4Q1Q2Q3Q4QInternal transactionsExternal transactionsTotal2,408,0862,242,3422,271,9792,276,4932,063,1592,080,5012,429,4342,477,3094,894,5635,186,7385,501,0805,862,7135,847,9466,021,3416,623,7957,107,0727,302,6507,429,0817,773,0598,139,2067,911,1058,101,8439,053,2309,584,381© 2000 RACCOON HOLDINGS, Inc.41Financial: Trends in the Credit Guarantee BalanceH O LD I N GS(Unit: Thousand Yen)1Q2Q3Q4Q1Q2Q3Q4Q5,241,8705,447,7125,629,3596,267,9805,803,4435,895,6845,689,8266,158,8191Q2Q3Q4Q1Q2Q3Q4Q6,785,0087,743,6938,583,3159,907,80310,311,38411,403,71712,193,95813,609,4621Q2Q3Q4Q1Q2Q3Q4Q14,073,46515,093,30816,011,59718,029,76818,403,59918,835,71620,865,44923,076,7941Q2Q3Q4Q24,328,30726,046,10327,656,97430,755,223© 2000 RACCOON HOLDINGS, Inc.422016201820202022201720192021Financial: Trends in the Rent Guarantee BalanceH O LD I N GS(Unit: Thousand Yen)1Q2Q3Q4Q1Q2Q3Q4Q117,323170,098221,702267,139340,143402,415458,777594,5191Q2Q3Q4Q1Q2Q3Q4Q737,035857,787979,3091,113,4851,224,8711,252,8705,435,6865,622,0521Q2Q3Q4Q1Q2Q3Q4Q5,832,2746,049,0216,265,8116,546,0846,801,6846,941,1436,851,2406,735,3931Q2Q3Q4Q6,923,9837,018,4017,220,8757,539,978* The figures indicate the actual guarantee balance calculated by the formula of guarantee balance / guarantee period x average implementation period. Accordingly, the figures differ from the balances indicated in the relevant Summary of Financial Results and Securities Report.© 2000 RACCOON HOLDINGS, Inc.432016201820202022201720192021ESG Information© 2000 RACCOON HOLDINGS, Inc.44ESG Information: Basic Sustainability PolicyH O LD I N GSCorporate PhilosophyMaking corporate activities more efficient and convenientProviding business infrastructure to support a wide range of transactionsBasic PolicySolving social issues through businessWe will strive to improve corporate value by appropriately managing and minimizing risks inherent in our business operations and maximizing business opportunitiesFurthermore, we will contribute to the realization of a sustainable global environment and society together with our stakeholders© 2000 RACCOON HOLDINGS, Inc.45ESG Information: 5 Priority ThemesH O LD I N GSIdentify materiality (important issues) to conduct specific actions and formulate KPIsEnvironmentSolving Social Issues Through Business• Actions for climate change• Fair & equitable trading environment• Regional revitalization• Sustainable consumptionSocialGovernanceEstablishment of Pleasant Work Environment• Diverse work styles• Ensuring occupational health and safety• Respect for employees’ human rightsEngagement with Communities/Society• Volunteering• Joining industry associationsFair Business Practices• Compliance• Corporate governance• Risk management• Assuring a reliable business infrastructurePromotion of Diversity• Graduate, mid-career & foreign national employee ratios• Maternity and childcare leave acquisition rates• Gender ratio of managers, etc.© 2000 RACCOON HOLDINGS, Inc.46DisclaimerOpinions and estimates contained in this document are based on the judgement of the Company at the time of preparation and may include inaccuracies.Actual decisions and results may differ due to various changes in the business environment.© 2000 RACCOON HOLDINGS, Inc.