ASKUL : 【Delayed】Summary of Consolidated Performance for 3Q FY5/2021

Summary of Consolidated Performance for 3Q FY5/2021

Profit Already Broke Previous Full-year Record during 3Q

Shift to E-commerce Expanded Customer Base,

Leading to Further Growth

March 16, 2021

ASKUL Corporation

1

Note:

This material contains the ASKUL Group's current plans and performance outlook. These plans, forecasts, and other forward-looking statements represent ASKUL's plans and forecasts based on information that is currently available.

Actual performance may differ from these plans and forecasts due to a variety of conditions and factors that could occur in the future. This material does not represent promises or guarantees regarding the achievement of these plans.

This material has not been audited by certified public accountants or auditing firms.

For the purpose of this material, LOHACO refers to the online mail-order business for general consumers launched in October 2012 in alliance with Yahoo Japan Corporation.

B-to-B refers to business-to-business transactions. B-to-C refers to business-to-consumer transactions.

MRO refers to Maintenance, Repair and Operation, and in this material primarily refers to indirect materials consumed at work sites by companies.

PJ Trylion (Project Trylion) is a project that integrates websites for small and medium-sized enterprises, and mid-level and large corporations to build a new website. This name contains its aim of reaching sales of 1 trillion yen.

Since the presentation of the overview of consolidated financial statements for the fiscal year ended May 20, 2016, ASKUL has been reporting its operating performances by dividing its organization into the segments of the E-commerce business, Logistics business, and Other. The E-commerce business deals with sales of OA and PC supplies, stationery, office living supplies, office furniture, foods, alcoholic beverages, pharmaceuticals, cosmetics, etc. The logistics business refers to logistics and package transport services that target corporations.

This material occasionally uses abbreviations, referring to ASKUL Logi PARK as ALP, ASKUL Value Center as AVC, Demand Management Center as DMC, and Digital Transformation as DX.

Reproduction or reprinting in any form of all or part of this material (including trademarks and images) without the permission of ASKUL is prohibited.

I Consolidated Performance for 3Q FY5/2021

• II FY5/2021 Consolidated Financial Forecasts

• III B-to-B

• IV B-to-C

• V ESG Initiatives

3Q FY5/2021 Consolidated Performance

(¥million)	Cumulativeresultsfor 3Q FY5/2020	Cumulativeresultsfor 3QFY5/2021
Actual	Actual
Net Sales	299,439	100.0	313,003	100.0	+4.5
GrossProfit	71,002	23.7	77,565	24.8	+9.2
Selling, General and Administrative Expenses	64,666	21.6	67,279	21.5	+4.0
Operating Profit	6,335	2.1	10,286	3.3	+62.3
Ordinary Profit	6,248	2.1	10,236	3.3	+63.8
Profit Attributable to Owners of Parent	4,116	1.4	6,150	2.0	+49.4

• ➢ Net sales: 104.5%

  Broke the Previous Record

• ➢ Gross profit margin:

  YoY change: Up 1.1 points

• ➢ Operating profit, ordinary profit and profit attributable to owners of parent:

  Profit already renewed a full-year record high in 3Q

Comparison of Consolidated Performance in 3Q FY5/2021 (By Business)

(¥billion)	FY5/2020	FY5/2021
1Q	2Q	3Q	4Q	1Q	2Q	3Q	YoY Change	YoY Change %
B-to-B business LOHACO B-to-C business (including Charm) E-commerce business	79.5	84.4	82.9	82.1	81.1	87.7	87.4	4.4	+5.4
12.3	11.7	11.3	13.2	12.9	12.7	13.1	1.8	+16.5
16.0	15.6	14.9	16.7	16.8	16.8	17.1	2.2	+15.0
95.5	100.1	97.8	98.8	98.0	104.6	104.5	6.7	+6.9
Logistics business and other	2.3	1.5	1.9	2.0	2.1	1.6	2.0	0.0	+1.3
Consolidated total	97.8	101.7	99.8	100.9	100.1	106.2	106.5	6.7	+6.7
B-to-B business LOHACO B-to-C business (including Charm) Performance-linked bonuses (including provision) E-commerce business	3.0	3.7	4.6	4.0	4.7	5.1	5.6	1.0	+22.4
(1.7)	(1.7)	(1.4)	(1.1)	(1.2)	(1.1)	(0.9)	0.5	-
(1.8)	(1.7)	(1.5)	(1.2)	(1.2)	(1.1)	(0.9)	0.5	-
-	-	-	(0.0)	-	(0.8)	(0.1)	(0.1)	-
1.2	2.0	3.1	2.7	3.4	3.1	4.5	1.4	+47.1
Logistics business and other	0.2	(0.0)	(0.2)	(0.2)	(0.4)	(0.2)	(0.2)	0.0	-
Consolidated total	1.4	1.9	2.8	2.4	2.9	2.9	4.3	1.4	+52.0

OperatingProfit

Net Sales

(¥billion)

3Q FY5/2021 Consolidated Performance (B-to-B Business)

2,600 260

Net sales

2,000

3,291

2,400 240

2,200 220

Cumulativeresultsfor 3QFY5/2020

(¥billion)

2200

Cumulativeresultsfor 3QFY5/2020

Operating profit

11550

Cumulativeresultsfor 3QFY5/2021

1100

550

0

Cumulativeresultsfor 3QFY5/2021

➢ Net sales

Up 3.8% YoY

In addition to the strong trend of infection-prevention products, demand for office supplies is recovering

➢ Operating profit

Up 35.2% YoY

Continued significant profit increase by maintaining strong gross profit margin

B-to-B Business YoY Change in Monthly Net Sales

(adjusted for the number of operation days)

(%)

Impact of special demand from the last-minute surge in demand before the consumption tax increase in the previous year

60

40

20

Jun.	Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May	Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb.
FY5/2020	FY5/2021

Although there is the impact of the declaration of a state of emergency,

the growth trend remained firm

FY5/2021 B-to-B Net Sales Quarterly Growth Rate (before the adjustment for the number of operation days)

(%)

110

Initial planActual

3Q Results

105

100

Initial plan continued to be exceeded

95

90

1Q

2Q

3Q

4Q

FY5/2021 Quarterly B-to-B Net Sales by Item

(¥billion)	FY5/ 2020 1Q Composition ratio %	FY5/20202Q Composition ratio %	FY5/2020 3Q Composition ratio %	FY5/2021 1Q Composition ratio %	FY5/2021 2Q CompositionYoYchange ratio % %	FY5/2021 3Q Composition YoYchangeratio YoYchange % %
OA & PC	23.3	31.9	25.3	32.7	24.2	32.3	21.9	29.4	23.9	29.8	-5.6	24.0	30.3	-0.2	-1.2
Stationery	10.3	14.1	11.1	14.4	10.6	14.2	9.5	12.8	10.1	12.7	-8.9	10.1	12.8	-0.5	-5.1
Living supplies	20.6	28.2	20.3	26.2	19.4	25.9	20.3	27.3	20.5	25.6	1.3	19.4	24.6	0.0	0.0
Furniture	5.0	6.9	5.1	6.6	4.8	6.5	4.5	6.1	5.1	6.4	0.3	5.4	6.9	+0.5	11.7
MRO	8.1	11.2	8.9	11.5	8.5	11.3	8.3	11.2	9.0	11.3	1.2	9.0	11.5	+0.5	6.8
Medical	4.0	5.5	4.6	6.0	5.3	7.1	8.2	11.1	9.3	11.7	102.2	9.0	11.5	+3.7	70.2
Others	1.6	2.3	2.0	2.6	1.9	2.6	1.5	2.1	2.0	2.5	-1.3	1.9	2.5	0.0	-0.6
Total	73.2	100.0	77.6	100.0	75.1	100.0	74.5	100.0	80.3	100.0	3.5	79.2	100.0	+4.0	5.4

In addition to the strong trend of infection-prevention products, office supplies are recovering

3Q FY5/2021 Consolidated Performance (B-to-C Business)

(¥billion)

600 60 5050 4040

300

(¥billion)

-2-02

-4-04

0

-5.0

-3.3

Net sales

Cumulativeresultsfor 3QFY5/2020 Cumulativeresultsfor 3QFY5/2021

Operating profit

-6-06

Cumulativeresultsfor 3QFY5/2020

Cumulativeresultsfor 3QFY5/2021

➢ Net sales

Up 9.3% YoY

Growth accelerated through strengthened cooperation with Softbank and Yahoo Japan

➢ Operating profit

Up ¥1.6 billion YoY

Improved as planned through higher gross profit margin and reduction of fixed costs

3Q FY5/2021 Consolidated Performance

(¥billion)

606

404

202

0

5.9

5.7

Cumulativeresultsfor 3QFY5/2020

(¥billion)

0.2

-0-.2

-0-.6

--1.0

Net sales

(Logistics Business and Others)

➢ Net sales

Down ¥0.1 billion YoY Decrease in the number of consolidated subsidiaries

Cumulativeresultsfor 3QFY5/2021

Cumulativeresultsfor 3QFY5/2020 Cumulativeresultsfor 3QFY5/2021

Operating profit

➢ Operating profit

Down ¥0.8 billion YoY

Made progress as planned with thelaunch of Miyoshi Center (3PL business)

Profits will improve in the next fiscal year

Impact of the Earthquake off Coast of Fukushima (February 13)

Damage was caused to some products and facilities in the Sendai logistics center (Sendai DMC).

✓ Extraordinary loss of 240 million yen due to damage to products, etc., was estimated and recorded in 3Q

Planned to make earthquake insurance claim (100 million yen is deductible from damage)

✓ Other logistics centers are filling in for the damaged one to deliver shipments to affected areas, and full recovery is expected by the end of April

(¥billion)

16106 14104 12102 1010 808 606

Trend of EBITDA

404 202

0

Broke the Previous Record

Cumulative	Cumulative	Cumulative	Cumulative
results for 3Q	results for 3Q	results for 3Q	results for 3Q
FY5/2018	FY5/2019	FY5/2020	FY5/2021

I Consolidated Performance for 3Q FY5/2021

II FY5/2021 Consolidated Financial Forecasts

• III B-to-B

• IV B-to-C

• V ESG Initiatives

Regarding Upward Revision of FY5/2021 Full-Year Financial Forecasts

Against Background of Two Points below,

Financial Forecasts were Revised Upward

• (1) In 3Q as well, net sales, gross profit margin, and logistics cost ratio in the B-to-B business remain better than planned.

• (2) The profitability of 3Q is expected to be maintained throughout 4Q, although no optimism is allowed over the spread of the novel coronavirus.

Investment is planned in 4Q with an eye on growth in the following fiscal years (600 to 700 million yen).

FY5/2021 Consolidated Financial Forecasts [By Business]

FY5/2020 Actual	FY5/2021
(¥	b	il	lion)	Previousplan (Publicized in 2Q)	YoYchange %	Revised plan (Publicized in 3Q)	Change from the previous plan	YoYchange %
B-to-Bbusiness LOHACO B-t o-Cbusiness(including Charm) E-commerce business	329.0	339.2	+3.1	345.2	6.0	+4.9
48.6	49.7	+2.2	49.7	－	+2.2
63.3	64.3	+1.5	64.3	－	+1.5
392.4	403.5	+2.8	409.5	6.0	+4.4
Logisticsbusinessand other	7.9	6.5	-18.4	6.5	－	-18.4
Consolidated total	400.3	410.0	+2.4	416.0	6.0	+3.9
B-to-Bbusiness LOHACO B-to-Cbusiness(including Charm) Performance-linked bonuses (including provision) E-commerce business	15.4	16.8	+8.6	19.1	2.3	+23.5
(6.1)	(4.4)	－	(4.4)	－	－
(6.2)	(4.3)	－	(4.3)	－	－
(0.0)	(0.8)	－	(0.9)	(0.1)	－
9.1	11.7	+27.3	13.9	2.2	+51.3
Logisticsbusinessand other	(0.3)	(0.9)	－	(0.9)	－	－
Consolidated total	8.8	10.8	+22.4	13.0	2.2	+47.4

OperatingProfit NetSales

Revised BtoB business ➢ Net sales plan

B-to-B business ¥345.2 billion

Up ¥6.0 billion from the previous plan

➢ Operating profit plan

B-to-B business ¥19.1 billion

Up ¥2.3 billion from the previous plan

FY5/2021 Consolidated Financial Forecasts

a record high

On track forin profits

Shareholder Return

FY5/2016 FY5/2017 FY5/2018 FY5/2019 FY5/2020 FY5/2021

FY5/2021 Dividend (Planned)

 Year-end dividend per share: 25 yen

(Annual dividend of 44 yen)

Increase of 6 yen from the previous forecast

Dividend will be increased in accordance with profit growth

Plan

Retirement of Treasury Stock

A retirement of treasury stock is planned as follows because there is no purpose for using them at the moment, and with the aim of raising the ratio of tradable shares in the stock market.

(1) Class of shares to be retired	Common stock of the Company
(2) Number of shares to be retired	4,000,000 shares
(7.2% of total number of shares issued before retirement)
(3) Scheduled date of retirement	March 31, 2021

The ratio of tradable shares, which is a standard of a new stock market classification (the prime market), is expected to increase from over 37%

to over 40%.

* The ratio is based on the number on the record date of November 20, 2020.

Stock Split

A stock split is planned for the purpose of enhancing the marketability and liquidity of the Company's shares and expanding the investor base.

(1) Record date	May 20, 2021
(2) Effective date	May 21, 2021
(3) Split ratio	One share is split into two shares

• I Consolidated Performance for 3Q FY5/2021

• II FY5/2021 Consolidated Financial Forecasts

III B-to-B

• IV B-to-C

• V ESG Initiatives

B-to-B Targeting offices

B-to-B Business Net Sales

Toward continued and steady growth

FY5/2002 FY5/2004 FY5/2006 FY5/2008 FY5/2010 FY5/2012 FY5/2014 FY5/2016 FY5/2018 FY5/2020

B-to-B Business Steady Expansion of Customer Bases

(Millions of cases)

4

3

2

* New means the number of customers who registered in each quarter. Already registered is the number of customers calculated by excluding new customers from the total number of customers from whom ASKUL, SOLOEL ARENA, etc., can receive orders as of the end of each quarter.

More big data will accumulate through expansion of the customer base

Speed up

1-to-1 based marketing

B-to-B Business: Growth of Customers Newly Registered between

4Q of Previous Fiscal Year and 1Q of Current Fiscal Year

Trend in average number of

30

20

10

(Item)

purchased items*

0

Up to 30	Up to 60	Up to 90	Up to 120	Up to 150	Up to 180
days	days	days	days	days	days

OthersMedicalMROFurnitureLiving suppliesStationeryOA & PC

* Average number of items purchased by customers who newly registered with

ASKUL between 4Q FY5/2020 and 1Q FY5/2021 by product item (cumulative)

Buy a variety of products just like existing customers

Further growth through more customers buying more

B-to-B Business 3Q FY5/2021 (3 Months)

Factors for Increase in Net Sales

1Q Up 7.5%  2Q Up 4.8%

YoY

Up 5.4%

1Q Up 1.8%  2Q Up 3.5%

The number	Growth becomes moderate
of purchasing	but remains on an upward
customers	trend.
YoY
Up 2.5%

Sales per purchasing customer

YoY

Up 2.8%

Sales per purchasing customergrew due to a recovery in demand for office supplies in addition to infection-prevention products.

1Q Down 5.2%  2Q Down 1.3%

B-to-B Business Conceptual Presentation of Product Strategy

Salesvolumes

Number of items

Maximize opportunities on both axes to win customers and ensure purchase

B-to-B Business Further Expansion of Original Products Non-consolidated

February FY5/2018

February FY5/2019

February FY5/2020

February FY5/2021

*1 Original products include products exclusive to ASKUL.

*2 Number of original products newly introduced at the time of publication of the ASKUL Catalog for 2021

B-to-B Business Growth through Expanding the Number of Products Available

FY5/1995

As of February 20

Around 8.3 million items

For a diverse customer base,

strengthen product

lineup

Growth in net sales

FY5/1996

FY5/1997

FY5/1998

FY5/1999

FY5/2000

FY5/2001

FY5/2002

FY5/2003

FY5/2004

FY5/2005

FY5/2006

FY5/2007

FY5/2008

FY5/2009

FY5/2010

FY5/2011

FY5/2012

FY5/2013

FY5/2014

FY5/2015

FY5/2016

FY5/2017

FY5/2018

FY5/2019

FY5/2020

FY5/2021

B-to-B Business Expand Share of Long-tail Products Non-consolidated

Cumulative	Cumulative	Cumulative	Cumulative	Cumulative	Cumulative
results for	results for	results for	results for	results for	results for

3Q FY5/2016 3Q FY5/2017 3Q FY5/2018 3Q FY5/2019 3Q FY5/2020 3Q FY5/2021

Long-tail products sales

3Q FY5/2021 Net Sales (YoY)

Up 20%

1Q

2Q

3Q

Up 12% Up 19% Up 27%

Provide Reliable Services to All Workplaces as a Lifeline for People

Working There

• I Consolidated Performance for 3Q FY5/2021

• II FY5/2021 Consolidated Financial Forecasts

• III B-to-B

IV B-to-C

V ESG Initiatives

B-to-C Targeting consumers

LOHACO improving profitability steadily On track to turn profitable by FY5/2023

LOHACO Roadmap for Turning Profitable by FY5/2023

Further improve the marginal profit rate during FY5/2021 and slash costs, mainly fixed costs, from FY5/2022 onward.

FY5/2019

(Actual)

FY5/2020

(Actual)

FY5/2021

(Plan)

From FY5/2022

(two years to go)

Increase in sales per box

Reduction of sales promotion expenses

Reduction of delivery costs (Utilization of B-to-B logistics infrastructure and promotion of unattended delivery)

Revision or abolition of services and functions

Utilization of Yahoo Japan's system infrastructure

Grossprofit margin

Variablecost ratio

-¥9.2 billion

-¥6.1 billion

(An improvement of ¥3.1 billion YoY)

Marginal profit rate

-¥4.4 billion

(An improvement of ¥1.7 billion YoY)

Fixed cost ratio

Turn profitable by

FY5/2023

LOHACO Net Sales

(¥100 million)

(%)

CYBER SUNDAY (from February 27 to March 28)

Super PayPay Festival (Scheduled to be held from March 24 to 1:59 on March 29 in LOHACO)

Aiming for further growth in 4Q through large-scale sales promotion

LOHACO Gross Profit Margin

(%)

28.0%

26.0%

24.0%

22.0%

20.0%

18.0%

16.0%

14.0%

12.0%

1Q 2Q 3Q 4Q	1Q 2Q 3Q 4Q	1Q 2Q 3Q 4Q	1Q 2Q 3Q 4Q	1Q 2Q 3Q 4Q	1Q 2Q 3Q
FY5/2016	FY5/2017	FY5/2018	FY5/2019	FY5/2020	FY5/2021

3Q FY5/2021 cumulative results

YoY change: Up 1.8 points

Improvement in product gross margin

Up 1.3 points

Decrease in large-lot transactions

Up 0.5 points

LOHACO Advertising Fee Income

(Yen)

30

千万

25

20

15

10

5

0

Advertising fee income

Advertising image

Impacts of the novel coronavirus pandemic

YoY Change 100.4%

1Q 2Q 3Q 4Q	1Q 2Q 3Q 4Q	1Q 2Q 3Q
FY5/2019	FY5/2020	FY5/2021

Steady growth Further expansion in 4Q

LOHACO Variable Cost Ratio

9.0%(%)

7.0%

1.0%

7.0%

5.0%

3.0%

9.0%

5.0%

1Q 2Q 3Q 4Q	1Q 2Q 3Q 4Q	1Q 2Q 3Q 4Q	1Q 2Q 3Q 4Q	1Q 2Q 3Q
FY5/2017	FY5/2018	FY5/2019	FY5/2020	FY5/2021

3Q FY5/2021 results

A rise in labor costs in warehouses was absorbed by an increase in sales per box.

Progress as planned

LOHACO Increase in Sales per Box

(Yen)

0

0

0

0

0

0

LOHACO (domestic) sales per box

Start of one-box eco in JulyRevision of free shipping charge in January

Fire impactImpacts of the novel coronavirus pandemic, etc.

1Q 2Q 3Q 4Q	1Q 2Q 3Q 4Q	1Q 2Q 3Q 4Q	1Q 2Q 3Q 4Q	1Q 2Q 3Q
FY5/2017	FY5/2018	FY5/2019	FY5/2020	FY5/2021

Improved due to successful sales promotion

(Yen)

LOHACO Reduction of Fixed Costs

00,000

LOHACO's Fixed Costs

00,000

00,000

YoY Change

00,000

Down

00,000

¥850

million

00,000

00,000

0

Cumulative resultsfor 3Q Cumulative resultsfor 3Q

FY5/2020 FY5/2021

By strengthening alliance with Yahoo,

Reduce

sales promotion expenses, personnel and operational costs, etc.

• I Consolidated Performance for 3Q FY5/2021

• II FY5/2021 Consolidated Financial Forecasts

• III B-to-B

• IV B-to-C

V ESG Initiatives

"Award for Good Practices in Consumer-Oriented Management" for 2020*

Bestowed Consumer Affairs Agency Commissioner's Award (special frame) in December 2020

Consumer-oriented management

✓ The Company built and has operated a system to supply necessary supplies to medical personnel in cooperation with administrative authorities in the face of the novel coronavirus pandemic.

✓ The Company made a data base from consumer voices from the perspective of quality management and utilizes it for purposes including product design and improvement and provision of information to business partners.

* The Consumer Affairs Agency, Government of Japan, awards companies for practicing "Consumer-oriented management" that aims to build a sustainable and desirable society through business activities with a focus on consumers.

February 2021: Concluded SDGs Collaboration Agreement with City of Tsushima

Materiality: Realize a resource circulation system

Cooperation and collaboration to deal with the problem of marine plastic waste that the city of Tsushima faces

(Left) Akira Yoshioka, President of the Company, (Right) Naoki Hitakatsu, Mayor of the City of Tsushima

Activation of the circular economy

✓ Sale of "Charity shopping bags that protect oceans"

(containing biomass)

✓ Part of the proceeds will be donated to the city of Tsushima for activities such as collection of marine plastic waste.

Promotion of measures against marine plastic waste

ASKUL Moving to

"Ethical E-Commerce"

Sustainable services that consider environmental conservation and solving social issues

Appendix

3Q FY5/2021 Net Sales by Item

(¥billion)	Cumulative results for 3Q FY5/2020	Cumulative results for 3QFY5/2021
OA & PC	74.7	+3.4	71.7	(2.9)	-4.0
Stationery	32.8	+1.5	30.6	(2.2)	-6.8
Living supplies	89.7	+1.5	92.2	2.5	+2.8
Furniture	15.4	-2.4	15.6	0.2	+1.4
MRO	26.2	+7.8	27.3	1.0	+4.0
Medical	16.2	+16.6	29.4	13.1	+81.0
Others	6.0	+3.4	5.8	(0.1)	-2.4
Total	261.3	+3.3	272.9	11.5	+4.4

Medical driving

growth

3Q FY5/2021 Factors Affecting Consolidated Net Sales

Cumulative results for 3Q

FY5/2020 (Actual)Net sales: YoY Change: YoY Change:

¥299.4 billion Up ¥10.9 billion

Up 3.8%Cumulative results for 3Q

FY5/2021 (Actual)Net sales: YoY Change: YoY Change:

¥313.0 billion Up ¥13.5 billion

Up 4.5%

+4.3

+9.3

-0.1

(¥billion)

B-to-C businessB-to-B business

3Q FY5/2021 Factors Affecting Consolidated Operating Profit

(¥billion)
(¥billion)	10.2
6.3
Cumulative results for 3Q FY5/2020	Cumulative results for 3Q FY5/2021
Operating profit (Actual)	Operating profit (Actual)
¥6.3 billion	¥10.2 billion 49

Cumulative results for 3Q FY5/2020	Cumulative results for 3Q FY5/2021
(Actual)	(Actual)
Net sales Up 3.8% YoY	Net sales Up 4.5% YoY
Gross profit margin 23.7%	Gross profit margin 24.8%
SG&A expense ratio 21.6%	SG&A expense ratio 21.5%
△4
-0.9
+4.0
82

Results of SOLOEL ARENA and others

FY5/2004 FY5/2005 FY5/2006 FY5/2007 FY5/2008 FY5/2009 FY5/2010 FY5/2011 FY5/2012 FY5/2013 FY5/2014 FY5/2015 FY5/2016 FY5/2017 FY5/2018 FY5/2019 FY5/2020 FY5/2021

Net sales value for SOLOEL ARENA and

(1,000 companies)

60

50

Number of registered/active customer companies of SOLOEL ARENA

56

56

52

40

30

20

10

0

62

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

May May May May May May May May May May May May May May May May May Feb.50

3Q FY5/2021 Consolidated Gross Profit and SG&A Expenses

Gross profit: ¥77.5 billion YoY change: Up ¥6.5 billion

Gross profit margin: 24.8% YoY change: Up 1.1 points ➢ Improvement of gross profit margin through reduction in cost of sales and changes in category mix

SG&A expenses: ¥67.2 billion YoY change: Up ¥2.6 billion Ratio of SG&A expenses to net sales: 21.5% YoY change: Down 0.1 points

Breakdown of major YoY change factors in SG&A expenses

• • Personnel costs (Including provision for bonuses) Up ¥1.0 billion

• • Delivery costs Up ¥0.9 billion

• • Rents Up ¥0.4 billion

• • Advertising and sales promotion expenses Down ¥0.4 billion 51

3Q FY5/2021 Consolidated Capital Expenditures Capital expenditures ¥7.4 billion (Annual plan: ¥11.8 billion)

Related to the New Tokyo Distribution Center	¥1.8 billion
Related to ASKUL Miyoshi Distribution Center	¥1.6 billion
Related to the B-to-B new website (PJ Trylion)	¥1.0 billion

(Reference) Depreciation and amortization of software: ¥4.4 billion (Annual plan: ¥5.7 billion)

Investment details

(¥ million)

Item	FY5/2020 3Q	FY5/2021 3Q
Amount	Amount	YoY Change
[Capital expenditures]	3,521	7,477	+112.3%
Property, plant and equipment	1,253	4,514	+260.2%
Intangible assets	2,267	2,962	+30.6%
Construction in progress (Note 2)	37	3,356	+8,788.6%
Software in progress (Note 2)	1,043	2,148	+105.8%

(Note 1) (Note 2)

Capital expenditure is stated on an accrual basis.

Construction in progress and software in progress above present balances at the end of the quarter under review, and partially include consumption and other taxes.

3Q FY5/2021 Share of Orders Placed on the Internet of Net Sales and Original Products

Share of orders placed on the Internet of net sales

3Q FY5/2020 cumulative total	3Q FY5/2020 cumulative total	YoY Change
Orders via the Internet	84.6%	86.0%	+1.4 points
Other	15.4%	14.0%	-1.4 points

Note 1: Percentages are based on orders placed.

ASKUL original products

(Items)

February of FY5/2020	February of FY5/2021	YoY Change
Number of original products	9,507	9,996	+489
Share of non-consolidated net sales (of which, share of B-to-B business)	29.8% (36.5%)	26.1% (32.7%)	-3.7 points (-3.8 points)

Note 1: Each figure includes the products listed in Health & Nursing Care Catalogs and Medical Pro Catalogs.

Note 2: The number of original products includes those with sales limited to ASKUL. Also, the calculation includes not only those items sold via catalogs but also items sold only via the Internet.

Note 3: The calculation of original products as a percentage of net sales includes original copy paper.

Note 4: From 4Q FY5/2018 onward, the calculation of B-to-B original products as a percentage of net sales uses B-to-B business inventory sales as the denominator.

ASKUL Environmental Policy

We, the ASKUL Group, strive with a shared sense of purpose to contribute to the realization of a sustainable society through the growth of our group as a company that supports our workplace, life, the planet and tomorrow.

Decarbonization

 "2030 CO2 Zero Challenge"

Reduce CO2 that is emitted by business sites and distribution down to zero by 2030

期 末期配末 当配 当

 "RE100"

Raise a group-wide renewable energy utilization ratio to 34% by FY5/2021 toward realizing 100% by 2030

 "EV100"

Replace delivery vehicles owned and used by ASKUL LOGIST 100% with electric vehicles by 2030

Resource recycling

 "1 box for 2 trees"

Confirm planting of two eucalyptus, double the amount of raw materials, by purchasing one box of original copy paper

 Reduce disposal of returned products

Reduce returned products that lead to their disposal

Remake returned products into salable products

Sell returned products as "imperfect ones" at a discount

 A recycling value chain of used plastic products

Create a value chain for recycling plastic resources and reduce CO2 emissions

Development and procurement of environmentally-friendly products

 Environmental response by original products

Development of original products by paying attention not only to quality and design but also to the environment

 Recycled paper bags "Come bag"

An FSC* certified product, comprised of 85% paper pulp and 15% recycled pulp from ASKUL catalogs

* The FSC® certification system certifies "responsible management of the world's forests"

Using FSC® certified products leads to forest conservation.

 Lineup of biomass shopping bags

The "Eco-First Company" is a company chosen by the Minister of the Environment as a

company that engages in "advanced, unique and industry-leading business activities" in environmental conservation activities, such as global warming countermeasures and waste and recycling measures

Companies included in "Climate Change A list" are ones selected as the highest rated by the international non-profit environmental organization Carbon Disclosure Project, CDP. If companies are taking excellent actions in response to climate change and disclosure of their information, they will be included in the list

2019 Selected as a "Climate Change A List" company by CDP ●

●

"SBT: Science Based Targets" are corporate targets to reduce global warming gas. The "Science Based Targets" organization, an international initiative, will approve them as targets that aim at scientifically based levels to achieve the "2ºC target

Efforts to keep the temperature well below 2ºC and bring it below 1.5ºC)" set out in ●

the Paris Climate Accord

United Nations Global Compact (UNGC) is a voluntary initiative by which companies and organizations act asgood members of society and participate in the creation of a global framework that realizes sustainable growth by demonstrating responsible and creative leadership

• ● 2017 Joined RE100 and EV100

• ● Zero

2016 Signed up for the "United Nations Global Compact" and announced the "2030 CO2

Challenge"

• ● 2013 Formulated Medium-

  Term Environmental Targets

• ● 2003 Formulated ASKUL Environmental Policy

2020 Selected as a "Climate Change A List"

company by CDP ●

2019 Announced support for "TCFD recommendations"

"TCFD recommendations" are international propositions, compiled by the Task Force on Climate-related Financial Disclosures ("TCFD"), concerning how corporations should voluntarily disclose information for the purpose of identifying and disclosing the financial impacts of risks and opportunities caused by climate change

2018 Obtained "Eco-First company" and "SBT" Certification

"RE100" is an international business initiative, participated by companies that publicly aim to operate their business with 100% renewable energy

"EV100" is an international business initiative, participated by companies that publicly aim to replace all of their business-purpose vehicles with electric vehicles

Initiatives for Society

Together with colleagues

•  Diversity-oriented management

  ASKUL's Declaration of Diversity (2015)

   Utilize diverse human resources

  Declared the target of making female managers account for 30% of the total by 2025  Promote diverse work styles

  Promote active female participation and enhance the ratio of female managers

  Systems for leave and shorter working hours for nursing care

  Holding of nursing care seminars

  Telework system: Abolished the limit on the number of times telework allowed per month Flextime system: Abolished the core time Office where employees can work with peace of mind (Thorough preventive measures against infection)

•  ASKUL LOGIST: Offer free lunches

  Promotion of health-oriented management by providing free lunches to employees working in logistics, distribution, and headquarters so that they can work in good physical and mental health

•  ASKUL LOGIST Fukuoka Distribution Center's efforts to employ persons with disabilities in cooperation with local communities

Legal employment ratio at 23.7%*

(Legal employment ratio of private companies is

2.2%)

* Legal employment ratio calculated in units of business

sites as of February 20, 2021)

Together with customers

 Improvement activities starting with customer voices  Share customer voices and responses to them on a real-time basis  Operation of "Customer Satisfaction

Improvement Committee"

PDCA activities based on customer voices, chaired by the CEO

 Activities of ASKUL CS Week

Initiatives to enhance the motivation of concierge service communicators (CSC) engaged in customer relations and to promote their mutual communication

Conduct commendation ceremonies for CSCs who have received words of appreciation from customers on many occasions, and certificate awards ceremonies for "super communicators" as role models to aspire to and give awards for long service for CSCs

Initiatives with business partners

 Declaration of support and voluntary action for the "White Logistics" promotion campaign

A movement to resolve the shortage of truck drivers and work to realize a more employee friendly working environment in which productivity in truck transportation is improved, efficiency in logistics is raised, and some kinds of drivers, such as women and people over the age of 60, will find it easy to work

 Supply Chain CSR Survey

Investigate the status of suppliers'

corporate efforts in areas such as "consumer problems," "efforts toward the environment," and "labor practices"

and actively communicate with suppliers

Social contribution activities

 Supporting East Japan

Reconstruction through Impact

Investment and Donations

The ASKUL Group has changed the format of support ten years after the Great East Japan Earthquake.

Utilizing the platform of impact Investments of Music Securities, Inc., the ASKUL Group has started a sustainable and new form of support that combines investment in business operators in Iwate Prefecture, Miyagi Prefecture, and Fukushima Prefecture, and donations thereto in cooperation with manufacturers.

 Project for looking into air and water environments

In a joint project with S.T. Corporation, the

ASKUL Group donates part of sales of "S.T. Toilet Deodorant and Deodorant Spray,"

exclusive for sale by ASKUL, to associations that are engaged in improving air and water environments, thereby supporting their activities.

 Paper cups for social contribution

A portion of sales is donated to support activities for assisting disaster victims, support for "Pink Ribbon Activities (Raising Awareness of Breast Cancer Screening)" and support for "Kids Earth Funds"

Publication of New Catalog

"ASKUL Catalog for 2021"

Focus on E-commerce and publish it once a year

Total number of pages	1260
Number of goods	Approx. 39,000 items
Number of new goods	Approx. 2,400 items
Number of original goods	Approx. 7,300 items
Number of eco-friendly goods	Approx. 14,000 items

Outline of 2020 Spring/Summer (previous edition)

Total number of pages: 1,288

Number of goods: Approx. 39,500 items

Number of original goods: Approx. 7,600 items

Published in February 2021