Ｈａｍｅｅ（3134） – FY2022 financial results briefing materials

Hamee Corp.FY04/22Results briefing materialsReference onlyIn case of any discrepancies between Japanese version and English version,Japanese Language version shall prevail.TSE PRIME, Securities Code 3134June 13, 2022I. Financial ResultsII. Business SummaryAppendix・Company Profile・Business OverviewIII. Estimates for the year・Reference information2022 Hamee Corp. All Rights Reserved | 2I. Financial Results2022 Hamee Corp. All Rights Reserved | 3FY04/22 Overview(Millions of yen)2021/42022/4Total trading transactions Finacial statementFull-year resultsFull-year resultsIncrease/Decrease% YoYand trading income・Consolidated sales and profits increased while investing in new businesses.Net sales12,36313,4131,0498.5%Gross profit7,5618,52195912.7%Operating income2,1792,202221.0%Net Profit attributableto owners of parent1,5561,74318712.0%2022 Hamee Corp. All Rights Reserved | 4Net Sales (Full Year)(Millions of yen)FY04/22 OverviewNet Sales analysisNextEngineOthersHameeConsultingConsolidation adjustments(Month-lagged settlementAdjustment)OverseasDomestic ECDomestic commerce(Real)+1,04902021/42022/42022 Hamee Corp. All Rights Reserved | 5Operating Income (Full Year)(Millions of yen)FY04/22 OverviewOperating income analysisCommerceAdjusted amount(Head Office Expenses)HameeConsultingOthersNextEngine+2202021/42022/42022 Hamee Corp. All Rights Reserved | 6(Millions of yen)2021/4Consolidated Segment SummaryFull-year resultsFull-year results% YoYOverview of FY04/22Commerce Business・Sales of the mainstay iFace series grewsteadily by 4%.・Because of organizational restructuringat the beginning of the fiscal year, expenses in the design department were transferred from the adjustment amount to mainly the Commerce Business (approx. JPY100 million).・An investment of approximately JPY200 million in conjunction with the release of the cosmetics business.Platform Business・Steady growth, with the value of ordersprocessed exceeding JPY1 trillion per year.Others・Sales and profits increased because of significant growth in Hometown Tax Payment Services.Commerce BusinessPlatformBusinessOthers(New Businesses)※1Net salesOperating incomeProfit ratioNet salesOperating incomeProfit ratioNet salesOperating incomeProfit ratioNet salesSegment profitTotalAdjusted amount ※2Operating income9,7262,49825.7%2,30895441.4%329△273ー12,3633,180△1,0002,17917.6%2022/4Increase/Decrease462△311△4.2%△0.1%46118912441ー1,049△801032210,1892,18621.5%2,7691,14441.3%454△231ー13,4133,099△8972,2024.8%△12.5%20.0%19.8%37.9%8.5%△2.5%1.0%ーーーーーー2022 Hamee Corp. All Rights Reserved | 7Profit ratio16.4%△1.2%※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.FY 04/22 Overview(Millions of yen)Total trading transactions and trading income・Sales grew, but business sale declined, partly due to investment in advertising in Finacial statement% YoY2021/4Q4 results(Accounting Period)Q4 results(Accounting Period)2022/4Increase/DecreaseNet sales3,3073,4341263.8%the Cosmetics Business.Gross profit1,9512,1101588.1%Operating income524327△196△37.5%Net Profit attributableto owners of parent411295△112△27.4%2022 Hamee Corp. All Rights Reserved | 8FY 04/22 OverviewCommerce Business・Sales of iFace series grew・Pixio also steadily contributedsteadily.to sales.・Profit decreased compared tothe previous fiscal year due inpart to more than JPY100million investments associatedwith the cosmetics business.Platform Business・Steady growth, with thetransaction marketcapitalization exceeding JPY1trillion per year.・Promoting server investment incloud infrastructure.Consolidated Segment Summary% YoY2021/4Q4 results(Accounting Period)Q4 results(Accounting Period)2022/4Increase/Decrease(Millions of yen)Commerce BusinessPlatformBusinessOthers(New Businesses)※1Net salesOperating incomeProfit ratioNet salesOperating incomeNet salesOperating incomeProfit ratioNet salesSegment profitTotalAdjusted amount ※2Operating incomeProfit ratio39.4%40.8%△1.4%2,63162323.7%61824358△98ー3,307767△2425242,65640315.2%717293△14159ー3,434555△2273279.6%251.0%△219△35.3%△8.5%99491△42ー126153.8%△212△27.7%△194△37.5%16.1%20.4%2.3%ーーーーーー※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.Profit ratio15.9%△6.3%2022 Hamee Corp. All Rights Reserved | 9II. Business Overview2022 Hamee Corp. All Rights Reserved | 10II. Business Summaryプラットフォーム事業Platform Business2022 Hamee Corp. All Rights Reserved | 11プラットフォーム事業Platform BusinessHighlightsSales (Q4)Operating income(Q4)JPY717 million(up 16.1% YoY)40.8%(up 1.4% YoY)Number of clients(Q4)GMV(Q4)※15,417 clients(up 678 clients YoY)JPY284.4 billion(up 16.0% YoY)ARPU(Q4)※2Monthly churn rate (Q4)※3JPY35,638(up 0.5% YoY)0.90%(±0 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 | 12Next Engine:Net salesプラットフォーム事業Platform BusinessFY04/22 results・Steady growth, with thevalue of orders processed exceeding JPY1 trillion in ayear.・Promoting server investment in cloud infrastructure.Hamee Consulting:・Profits declined slightly inthe accounting period, but achieved a profit for the full fiscal year.(Millions of yen)2021/42022/4[Reference] 2022/4Platform BusinessQ4 results(Accounting Period)Q4 results(Accounting Period)Increase/decrease% YoYFull-year results% YoY16.1%2,76920.0%15.8%2,30617.1%17.8%46236.9%Next EngineHamee Consulting6185171002432420717599118293293△09981174950Operating income20.4%1,14419.8%Next Engine20.8%1,13418.1%Hamee Consulting△0 ―Operating profit ratio39.4%40.8%1.4%Next Engine46.9%48.9%2.0%Hamee Consulting0.6% △0.2% △0.8% ―――941.3%49.2%2.1%ーーーー2022 Hamee Corp. All Rights Reserved | 13プラットフォーム事業Platform BusinessNet Sales (Accounting Period)Next EngineーFY04/22 4Q sales(Millions of yen)・Achieved the same level of sales as 3Q, the busiest season, and increased significantly YoY.02022 Hamee Corp. All Rights Reserved | 14Operating Income (Accounting Period)(Millions of yen)(Millions of yen)プラットフォーム事業Platform BusinessNext EngineーFY04/22 4QOperating Income・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 | 15プラットフォーム事業Platform BusinessOperating Income Analysis (Accounting Period)(Millions of yen)Next EngineーOperating Income Analysis・Fixed costs: Invested in strengthening personnel (development and recruitment) and converting to cloud infrastructure as planned in the fiscal year under review.600550500450400350300250200150100500485460430238 220176393 385 397146 147 15633 40 41 42 42 46 46 553 551506 517275 267242258601 599298 29346 38 39 39 41 214 198 200 212 205 194 202 229 240 245 264 265 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q42020/42021/42022/4OperatingIncomeVariableCostFixed Cost・Advertising expenses・Outsourcing costs(Customer referralsIncluding commissions)2022 Hamee Corp. All Rights Reserved | 16プラットフォーム事業Platform BusinessNumber of clients(clients)Next EngineーTrends in number of clients・The number of acquisitions remained at a high level compared to before COVID-19.2020/4Average quarterly net increase 94 clients2021/4Average quarterly net increase 186 clients2022/4Average quarterly net increase 170 clients2022 Hamee Corp. All Rights Reserved | 17プラットフォーム事業Platform BusinessNext EngineーChurn rate trend・Continuously staying at a low level.Churn rate02020/4Average monthly churn rate※0.98%2021/4Average monthly churn rate※0.87%2022/4Average monthly churn rate※0.91%※ 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 | 182020/4Average ARPU ※JPY34,803Significant impact of COVID-192021/4Average ARPU ※JPY36,5392022/4Average ARPU ※JPY36,095プラットフォーム事業Platform BusinessNext EngineーARPU Trends・Achieved the same levelas the previous year, when there was specialdemand from COVID-19.ARPU(Yen)0※ Annual average ARPU: Simple average of ARPU calculated for each quarterly period.2022 Hamee Corp. All Rights Reserved | 19II. Business SummaryCommerce Business2022 Hamee Corp. All Rights Reserved | 20コマース事業Commerce BusinessQ4 FY04/22 results・Sales of iFace series remained steady.・Pixio firmly contributed to sales.・Investment of just over JPY100 millionfrom the cosmetics business.・Increase in personnel expenses due to organizational restructuring at the beginning of the fiscal year and an increase in personnel at subsidiaries.・Wholesale low rebound general merchandise(squeezes) expanded significantly.・In addition, with the rollout of music toys(otamatone) and localized products,sales in the U.S. up by 40.3% QoQ.（Millions of yen）2021/42022/4[Reference] 2022/4Commerce BusinessQ4 results(Accounting Period)Q4 results(Accounting Period)Increase/decrease% YoYFull-year results% YoYNet sales2,6312,656251.0%10,1894.8%EC（retail）1,4571,59613810.7%5,9027.5%Real (wholesale)1,0851,144585.4%4,3269.3%Consolidatedadjustments※188△83△172―△38ーOperating income623403△219 △35.3%2,186 △12.5%Operating profit ratio23.7%15.2% △8.5%―21.5%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 | 21・First Class・Reflectionコマース事業Commerce BusinessProduct development・Look in Clear・CardinaiManstayProductsProduct ldeveopmentFull Clearance developed from user feedbackFlip Case developedfrom user feedback2022 Hamee Corp. All Rights Reserved | 22コマース事業Commerce BusinessiFace 10 anniversary・We celebrated our 10thanniversary with the continued support of many customers for not only functionality, but also design features, such as color variations, and the development of various series.aThanks to all of you, iFace marks 10th anniversary2022 Hamee Corp. All Rights Reserved | 23コマース事業Commerce BusinessCategory extensionsーPixio business(Gaming Accessories Business)・Sales for the full fiscal year ended April 31, 2022 amounted to JPY395 million, contributing to sales. In addition to the start of operations at Amazon1 stores this fiscal year, we opened a PayPay mall store in May. We plans to open multiple stores in the future.2022 Hamee Corp. All Rights Reserved | 24コマース事業Commerce BusinessCategory extensionsーCosmetics BusinessSince the release in January, wholesales have steadily expanded the number of stores handling the product, partly because of theresults of new sales.On the other hand, it posted an operating loss of more than JPY100 million in Q4 due to advertising investment and other factors.2022 Hamee Corp. All Rights Reserved | 25コマース事業Commerce BusinessNet Sales (Accounting Period)Q4 FY04/22 sales(Millions of yen)・Increased sales by about JPY196 million yoy.・Domestic sales in Pixiocontributed to EC(retail).・Expansion of Real (wholesale) sales in the U.S. contributed.2022 Hamee Corp. All Rights Reserved | 26コマース事業Commerce BusinessQ4 FY04/22Sales analysis(YoY)・EC expanded significantlyyear on year, partly becausePixio began contributing to sales.・Real also remained firm.・U.S. market: Expand wholesaleof low rebound general merchandise(squeezes).Net Sales (Accounting Period)(Millions of yen)Increase inoverseasConsolidation adjustmentsIncrease indomesticcommerce(Real)Increase in domestic EC+250Q4 2021/4Q4 2022/42022 Hamee Corp. All Rights Reserved | 27コマース事業Commerce BusinessNet sales (cumulative period)(Millions of yen)Increase inoverseasConsolidation adjustmentsNet Sales analysis(YoY)・In EC, Pixio steadily contributed tosales from the second half of the year. Despite difficult conditions for products purchased by other companies (toys, etc.), sales expanded because of solid performance in iFace series.・Real exceeded the previous year’s level.・U.S. market: Sales of music toys(otamatone) and low rebound general merchandise(squeeze) expanded. iFace also significantly expanded sales by developing characters tailored to low rebound general merchandise.Increase indomesticcommerce(Real)Increase indomestic EC+46202021/42022/42022 Hamee Corp. All Rights Reserved | 28コマース事業Commerce BusinessOperating Income (Accounting Period)(Millions of yen)FY04/22 4Q Operating Income・Profit decreased partly due to investment of more than JPY100 million in the cosmetics business.2022 Hamee Corp. All Rights Reserved | 29コマース事業Commerce BusinessOperating incomeanalysis(YoY)・Personnel expenses①Due to the planned organizational changes at the beginning of the fiscal year, a portion of personnel expenses for design functions,which was included in “Adjustments” in the 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 due to the loanch Cosmetics business.Operating Income (Accounting Period)(Millions of yen)Increase ingross profitIncrease in personnel expensesDecrease in commissions paidIncrease inOther SG&A expensesIncrease in advertising expenses△2190Q4 2021/4Q4 2022/42022 Hamee Corp. All Rights Reserved | 30コマース事業Commerce BusinessOperating incomeanalysis(YoY)・Personnel expenses①Due to the planned organizational changes at the beginning of the fiscal year, a portion of personnel expenses for design functions,which was included in “Adjustments” in the 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 due to the loanch Cosmetics business.・ Commissions paidIncreased because of sales growth inPixio business and an increase in EC sales in USOperating Income (Cumulative Period)(Millions of yen)Increase ingross profitIncrease in personnel expensesIncrease in commissions paidIncrease inOther SG&A expensesIncrease in advertising expenses△31102021/42022/42022 Hamee Corp. All Rights Reserved | 31II. 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 | 32新規事業New BusinessQ4 FY04/22 results(Millions of yen)2021/42022/4[Reference]2022/4New Businesses※1Q4 results(Accounting Period)Q4 results(Accounting Period)Increase/Decrease% YoYFull-year results% YoYNet sales585912.3%45437.9%Operating income△98△141△42—△231—※ 1. Results in the “Others” Segment.Hometown Tax Payment Support Service・Promoting the development of returned goods and the amount of donations lead to an increase. Amount of donations from contracted municipalities was up 19.9%(YoY)・Hamic developed based on feedback from current customers. Promote verification of issues.・Continuing to work on RUKAMO Zero.2022 Hamee Corp. All Rights Reserved | 33III. FY04/23 Year End Estimate2022 Hamee Corp. All Rights Reserved | 34・Please refer to the materials that explain the medium-term management plan for the outlook for the future business, including the forecast for the next fiscal year.(Millions of yen)2022/4ForecastsForecastsForecasts% YoY2023/4Increase/DecreaseEstimate for FY04/23SegmentNet salesOperating income10,1892,18612,3112,0262,122△16020.8%△7.3%Commerce BusinessPlatformBusinessOthers※1Profit ratio21.5%16.5%△5.0%Net salesOperating income2,7691,1443,6201,40785126330.7%23.0%Profit ratio41.3%38.9%△2.4%Net salesOperating incomeProfit ratioNet salesSegment profitAdjusted amount ※2454△231ー13,4133,099ーーー15,9323,432ーーー2,519333△242Total△897△1,13927.0%△33.2%Operating income2,2022,293914.1%Profit ratio16.4%14.4%△2.0%ー※1 Others: In order to revise the reportable segment in the fiscal year ending April 2023, the forecast value for “Other” is set to “-“.※2 Adjustment amount: Expenses related to administrative divisions2022 Hamee Corp. All Rights Reserved | 35Compositionratio77.3%59.0%ー22.7%41.0%ーーーーー18.8%10.7%100.0%100.0%ーーーーーーAPPENDIX2022 Hamee Corp. All Rights Reserved | 36Company Profile2022 Hamee Corp. All Rights Reserved | 37New 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 5,417 clients※Base on in-house research2022 Hamee Corp. All Rights Reserved | 38HistoryThoughts 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 | 39Net 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 | 40Business Overview2022 Hamee Corp. All Rights Reserved | 41Business Overviewプラットフォーム事業Platform Business2022 Hamee Corp. All Rights Reserved | 42プラットフォーム事業Platform BusinessNext EngineーMain functionsSaaS type EC Attractions to support the automation and streamlining of EC 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 | 43プラットフォーム事業Platform BusinessNext EngineーClients・Next Engine supports clients in various categories※Partial posting2022 Hamee Corp. All Rights Reserved | 44プラットフォーム事業Platform BusinessNext 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 | 45※Partial postingプラットフォーム事業Platform BusinessNext 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 | 46プラットフォーム事業Platform BusinessNext 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 | 47GMV(Billions of yen)Compared to the EC market sizeBy more than doubleGrowth rate2021/4 CAGR24.6%※1プラットフォーム事業Platform BusinessNext EngineーGMV trends・Next Engine growth rate ismore than double that ofdomestic EC marketEC market size(Trillions of yen)7.2 trillion yen2021/3 CAGR11.1%※212.2 trillion yen※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 | 48Automation of advertising operationsプラットフォーム事業Platform BusinessExamples of upsell measures・Based on the findings of test marketing in Criteo and advertising operation automation, it is being operated unofficial. Aim for official release.2022 Hamee Corp. All Rights Reserved | 49プラットフォーム事業Platform BusinessCharacteristics of Japan’s EC MarketA MallB MallC MallPrenty of EC malls competing each other, which hasdifferent consumers behind.・・・ConsumersD MallStore 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 | 50プラットフォーム事業Platform BusinessHamee 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 integratedf r o m a c t u a l s i t em a n n e r ,production.2022 Hamee Corp. All Rights Reserved | 51Business OverviewCommerce Business2022 Hamee Corp. All Rights Reserved | 52コマース事業Commerce BusinessCommerce BusinessSupply ChainIn iFace, we have established a system that can cover planning, manufacturing, and sales in-house.2022 Hamee Corp. All Rights Reserved | 53コマース事業Commerce BusinessSource 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 | 54コマース事業Commerce BusinessiFaceーStrengthsDesignBrandYounggenerationThe design takes intoaccount not onlyfunctionality such as impactresistance, but also theexpressions of personalitysuch as unique curve andabundant color valuations.Its reliability is also high due toAmongyoung ※smartphonethe strength and usability of itsproducts,anditsbrandrecognition is 64% high amongmen and women in their early20s.※Base on in-house surveyusers,iFaceusers(includingexperienced users) accountformore than 40%, earning a highlevel ofloyalty, enabling us tosecure a diverse range of salesSurvey period:December, 2021destinations.Number of surveyed: 1,291※Focuses on women aged 20 toSurvey method:Internet survey24 (Our survey December 2021)Target:Men and women aged20-24 (smartphone users)2022 Hamee Corp. All Rights Reserved | 55Brand Recognition (Women in their late teens)iFaceCompetitor ACompetitor BCompetitor CCompetitor DBrand Awareness (Women in their early 20s)コマース事業Commerce BusinessiFaceーRecognitionOverwhelming recognition among women in their late teens and early 20s compared to other companies’ brands※Our SurveySurvey period: December, 2021Number of researchers: 599 women in their teens/638 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 | 56High designability + Series expansion + Peripheral accessories development・First Class・Reflectionコマース事業Commerce BusinessiFace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 | 57Business 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 | 58新規事業New BusinessesHamee Hometown Tax Payment Support Service2022 Hamee Corp. All Rights Reserved | 59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)・Variety of apps such as video functions(Smartphones with functions similar to・Designs children want to brag to friends・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 data・Burglar alarm functionHamic POCKET・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 | 60新規事業New BusinessesMechanism of RUKAMO-For Sustainable Society-We will deliver sustainable servicesthat fulfill SDGs goal of 12,”Responsibilities to make productsand services.“Art by upcyclingResearch and development of reprocessed plasticCosultinggarbage separationManufacturer/retailerIndustrial waste disposalDonationslow moving inventoryCollectionslow moving inventory2022 Hamee Corp. All Rights Reserved | 61Reference information2022 Hamee Corp. All Rights Reserved | 62(Millions of yen)Millions of yenQ4 FY04/22 Balance Sheet2021/4 Q4 2022/4 ■Fixed assets ■Current assets(Millions of yen)2021/4 Q4 2022/4■Net assets ■Non-current liabilities ■Current liabilities2022 Hamee Corp. All Rights Reserved | 63Next Engine indicatorsFiscal YearNumber of clientsNumber of storesGMV (Billions of yen)ARPU (yen)Monthly churn rateTransaction number processed (ten thousand)Fiscal YearNumber of clientsNumber of storesGMV (Billions of yen)ARPU (yen)Monthly churn rateTransaction number processed (ten thousand)2020/4Q32021/4Q1Q2Q4Full yearQ1Q23,7183,7903,8493,9973,9974,1794,35128,81429,37630,03430,83530,83531,77133,11415935,2641.00%16933,8911.06%18434,3160.87%20935,7400.98%72134,8030.98%23720838,48934,9020.82%0.88%LTV(Lifetime Value) (Yen)3,543,5833,184,6503,923,2313,662,8943,578,5894,684,8663,961,5272,2482,1332,3022,8649,5473,3942,8762021/42022/43QQ4Full yearQ1Q2Q3Q4Full year4,5134,7394,7394,9495,0935,2365,4175,41734,46136,00436,00437,76539,13440,19241,59541,59525336,9490.86%24535,8150.90%94436,5390.87%26336,5250.81%26935,1410.95%308285112437,07735,63836,0950.96%0.90%0.91%LTV(Lifetime Value) (Yen)4,275,7173,978,0154,225,0314,519,0893,702,8953,857,0323,939,7684,004,6963,3643,32112,9553,5433,3353,9093,73814,525※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 | 64Dividend amount(Yen)Shareholder ReturnsーDividend per share・Dividend payout ratio was 10% until FY04/21・FY04/22: 20% or moreDividend payout ratio of 20% or more, judged to be achieved under the medium-term management plan.(Forecast)2022 Hamee Corp. All Rights Reserved | 65Disclaimer■ 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 | 66For 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 | 67