RACCOON : FY 4/2022 (ending April 2022) Q1 Financial Results

FY 4/2022 (ending April 2022)

Q1 Financial Results

August 31, 2021

RACCOON HOLDINGS, Inc. Code: 3031 TSE 1st Section

Executive Summary (1)

HO LDI N GS

Key Points

Business environment continued to improve amid the continuous respread of COVID-19

Demand for services continued

to increase

EC Business: The number of members of "SUPER DELIVERY," the number of retailers and the number of participating companies continued to increase steadily

Confirmed steady penetration of BtoB digital shift

Modulation of economic activities by

domestic companies

Impact of the frequent deceleration of

a state of emergency

(twice during the first quarter)

＋

Impact of usual seasonal variation

(transaction value decreased from Q4 to Q1)

Financial business: The number of member companies of "Paid," the number of operating companies and the number of contracted companies of URIHO also continued to increase steadily

The value of transactions per customer for domestic services of "SUPER DELIVERY" in the EC business and "Paid" in the Financial business decreased

Continued to conduct measures eyeing recovery (increase) of value of transactions per customer after the normalization of economic activities in Q2 onward

Strengthening acquisition of new users through proactive investments of promotion costs

Improvement of convenience and efficiency of systems for the purpose of promoting continuous use

© 2000 RACCOON HOLDINGS, Inc.	2

Executive Summary (2)

HO LDI N GS

		YoY
Net sales	1,134 million yen	+4.6%
Operating income	259 million yen	-24.8%

• Net sales increased moderately by 4.6% year on year as the preceding Q1 was particularly impacted positively by the special demand due to COVID-19. The substantial net sales excluding the net sales derived from the GMV of masks and sterilization goods in the EC business increased by 11.7% year on year, recording a double-digit growth.
• Net sales by segment increased by 1.3% year on year in the EC business with a high hurdle caused by the special demand due to COVID-19 in the preceding Q1 and by 10.3% year on year in the Financial business, and revenue increased for both businesses.
• The amount of guarantees provided in the Financial business remained at a low level, and the rate of cost of sales remained at a low level from the previous year.
• Due to the continuous strengthening of promotion and the increase in the number of staff, advertising expenses and personnel expenses increased. Selling, general and administrative expenses increased by 22.4% year on year and operating income decreased by 24.8% year on year. However, the transient positive impact of net sales in the EC business caused by the special demand due to COVID-19 and the transient decrease in cost of sales due to the reversal of additional allowances at the end of the previous quarter in the Financial business as well as the irregular factors also had a strong impact on operating income in the preceding Q1, and it is recognized that the increase in essential operating income is continuing.

© 2000 RACCOON HOLDINGS, Inc.	3

Trends in Consolidated Net Sales by Quarter (1)

HO LDI N GS

Achieved net sales exceeding that for the previous quarter when remarkable progress was made with the impact of the special demand due to COVID-19(year-on-year increase of 4.6%)

(year-on-year increase of 11.7% when excluding net sales derived

from the GMV of masks and sterilization goods)

(Unit: Million Yen)

1,200																																1,084	1,134
										Net sales derived from the GMV of masks and
				Net sales
1,000										sterilization goods in EC business (estimate)
																												818
800
																						612	669
600
															490	533	569										993	1,109
											426	463
400										378
321		324
200
0
	FY 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 4/2022
		Q1				Q1	Q1		Q1			Q1		Q1		Q1			Q1			Q1			Q1			Q1		Q1		Q1

© 2000 RACCOON HOLDINGS, Inc.	4

Trends in Consolidated Net Sales by Quarter (2)

HO LDI N GS

Net sales in the EC business decreased quarter on quarter due to the decrease in the value of transactions per customer of domestic retailers (the impact of usual seasonal variation + the impact of careful purchasing activities due to the state of emergency declared twice in Q1) but was covered by the Financial business, and both a year-on- year increase and quarter-on-quarter increase in revenue was achieved

(Unit: Million Yen)

1,200
																1,084			1,096	1,118	1,134
1,000				EC			Financial								946	1,065	436
								849	863	416
								395	423
						810	817		818	409
800
669			682										387
								377	386
							364	351		362
600
243			257
400
															558	688	655	673	702	697
							446	466		455	472	476
200	425			425
0
Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4		Q1
						FY 4/2019						FY 4/2020					FY 4/2021				FY 4/2022

© 2000 RACCOON HOLDINGS, Inc.	5