RACCOON : FY 4/2022 (ending April 2022)Q3 Financial Results

FY 4/2022 (ending April 2022)

Q3 Financial Results

March 4, 2022

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

FY 4/2022 Q3 Results

© 2022 RACCOON HOLDINGS, Inc.	2

Executive Summary (1)

HO LDI N GS

• During the third quarter under review, the growth in net sales for both the EC business and the Financial business recovered due to the re-opening of the economy in Japan, resulting in an 8.4% increase in net sales year on year.
• Growth in net sales is steadily continuing. However, there was weakness in the short-term due to the impact from the sixth wave of COVID-19 caused by the spread of the Omicron variant and results were lower than initial estimates.
• For SUPER DELIVERY in the EC business, both the number of buying customers and the value of transactions per customer related to domestic transactions increased amid recovery in the domestic economy owing to its reopening. Convinced of a continuous shift in business practices from temporary expansion of demand for contactless transactions under the pandemic seen in the previous fiscal year to a BtoB-EC digital shift, the Company expects long-term growth after the containment of COVID-19.
• In terms of overseas services for SUPER DELIVERY, demand is rising despite the impact of international logistics disruptions caused by container shortages and surging crude oil prices.
• • North America continued its steady growth.
  • In Greater China, gross merchandise value* declined reflecting a drop in the number of buying customers due to temporary effects such as elections and the Chinese New Year (recovery trend since the Chinese New Year).

• To better reflect the nature of transactions facilitated by the Company, what was referred to as "transaction value" in previous materials is now referred to as "gross merchandise value."

© 2022 RACCOON HOLDINGS, Inc.	3

Executive Summary (2)

HO LDI N GS

• For Paid in the Financial business, the recovery trend of the domestic economy helped boost the value of transactions of member companies（+18.7% YoY, +10.0% QoQ). Net sales rose 15.0% year on year due to an increase in the value of transactions, recording double-digit growth.
• • Paid was adopted as a payment method by nationwide AUTOBACS group stores (from November 2021)
  • In addition to VIVA HOME, Paid was introduced to the ARCLAND SAKAMOTO e-commerce site (from February 2022)
• The number of defaults in the Financial business was on a slight upward trend but still remained lower than pre-pandemic levels.
• The number of URIHO projects continued to increase steadily. Sales increased 57.3% year on year.
• Operating income decreased 13.0% year on year as a result of higher selling, general and administrative expenses due to the strengthening of promotion and an increase in the number of staff.
• The domestic economy was on a recovery track due to its reopening and steady growth in net sales continued. However, financial results were below initial estimates as a result of the impact of the spread of COVID-19 caused by the Omicron variant and international logistics disruptions. Earnings forecasts were revised as the outlook for containment is uncertain. Although there are negative factors in the short-term, the BtoB-EC digital shift is progressing, and furthermore, demand for the Company's services including the Financial business continues to increase. Therefore, it is the Company's understanding that the potential for medium- to long-term growth after the containment of COVID-19 is rising.

© 2022 RACCOON HOLDINGS, Inc.	4

Revisions to Earnings Forecasts for the Fiscal Year Ending April 2022

HO LDI N GS

Earnings forecasts were revised as the outlook of the impact of the spread of the Omicron variant and international logistics disruptions is uncertain, despite a recovery trend in the domestic economy

(Unit: Million Yen)	FY 4/2022	FY 4/2022
Full-year	FY 4/2021
	Full-year earnings		Achievement
	earnings	Full-year actual	YoY
	forecasts	forecasts	results		rate
	(after revision)
	(before revision)
Net sales	5,300	4,759	4,364	+9.0%	74.0%
EBITDA	1,580	1,230	1,339	-8.2%	76.4%
1,680
Operating income	1,430	1,090	1,196	-8.9%	76.6%
1,530
Operating margin	27.0%	22.9%	27.4%	ー	ー
28.9%
Ordinary income	1,430	1,080	1,216	-11.3%	76.3%
1,530
Net income	690
attributable to		440	800	-45.1%	67.4%
owners of parent	760

Although growth prospects of both the EC business and the Financial business are improving due to the reopening of the domestic economy, they are falling below assumptions made at the time of the Q2 earnings release and the future impact of the spread of the Omicron variant is unclear.

Overseas transactions in the EC business are affected by the international logistics disruptions caused by container shortages and surging crude oil prices. While these are temporary effects, it is not clear when the issues will be resolved.

No revisions were made to the dividend forecasts.

© 2022 RACCOON HOLDINGS, Inc.	5