ZOZO : FY2021 Q3 Consolidated Business Results

FY2021 3Q ZOZO, INC. CONSOLIDATED BUSINESS RESULTS

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Overview

• Gross Merchandise Value : 375,506 million yen (+23.4%,YoY)
• Gross Merchandise Value (excluding other GMV) : 341,587 million yen (+13.6%,YoY)

The number of active members increased as a result of steady growth in the traffic and acquisition of new members. YoY growth rate was maintained at over 10%. Regardless of the recovery of people's mobility, brands continued to proactively sent us inventories.

• Operating Profit : 38,779 million yen (+14.8%,YoY)

Operating profit increased due to an increase in gross profit resulting from growth in gross merchandise value and advertising business, as well as cost reductions (mainly in logistics-related expenses and payment collection commission), although the advertising activities, such as TV commercial and point promotion, were more actively conducted on YoY basis.

Gross Merchandise Value

• ZOZOTOWN BUSINESS

Gross Merchandise Value : 289,572 million yen (+8.0%,YoY)

Consignment sales : 277,644 million yen (+7.6%,YoY)

Outright Purchase / Production & Sales : 2,147 million yen (+53.6%,YoY)

USED sales : 9,779 million yen (+14.4%,YoY)

• PayPay Mall : 31,568 million yen (+95.7%,YoY)
• BtoB Business : 20,447 million yen (+23.0%,YoY)
• Others* : 33,919 million yen
• Average Order Value : 8,592 yen (+0.9%,YoY)
• Average Retail Price : 4,167 yen (- 3.1%,YoY)

*1 From the 3rd quarter of the fiscal year ended March 2021, GMV for ZOZO Option stores at PayPay Mall are recorded.

ZOZO Option: Option contracts which enables fashion category stores outside of ZOZOTOWN PayPay Mall, to participate special events produced by ZOZO and enjoy merits such as sales support

*2 From the fiscal year ending March 2022, we are disclosing the GMV and net sales in new business segmentation. For detail, please refer "Change of business segments" in P.34.

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Profitability

• Operating profit margin* (to the total gross merchandise value) : 11.4% (11.2% for FY2020 3Q）

・Factors improving profitability : Improvement of gross profit margin due to the growth of advertisement business etc., a decline in logistics-related expenses ratio from improvement of operation efficiency improvement in logistics bases and a decline in payment collection commission due to the change of the vendor.

・Factors worsening profitability : Sponsorship of PGA TOUR tournament（held in Japan with limited spectators), an increase in expenses for measures to attract customers such as TV commercial and point promotion.

*Operating profit margin is calculated by operating profit divided by the gross merchandise value (excluding other GMV).

Topic

• PGA TOUR tournament "ZOZO CHAMPIONSHIP" was held in Japan for the first time in 2 years, and Mr. Hideki Matsuyama won the tournament (October, 2021)
• The company received the highest rating"Gold"in PRIDE Index 2021,

which evaluates LGBTQ initiatives in the workplace (November 2021)

• The company sponsored the founder of ZOZO, Inc, Mr. Yusaku Maezawa's（the｠ first｠ Japanese space tourist） project to stay at the ISS (November 2021)
• ZOZOTOWN participated in"LINE GIFT"which enables users to use ZOZO Point (November 2021)
• Ms. Christine Edman was appointed as a new executive director (December 2021)
• The number of total buyers exceeded 10 million (December 2021)
• The company announced the transfer to"Prime Market"which is the new market segment by Tokyo Stock Exchange (January 2022)

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