ASKUL : Announcement of Financial Results by Other Affiliated Company

Disclaimer

This is an English translation of the captioned release. This document has been prepared and provided solely for the purpose of the reader's convenience. In the event of any discrepancy between this English translation and the original Japanese release, the original Japanese document

shall prevail in all respects.

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August 3, 2022

To whom it may concern:

Company Name: ASKUL Corporation

(Code No.: 2678, Tokyo Stock Exchange Prime Market)

Representative: Akira Yoshioka

President and Chief Executive Officer

Contact Person: Tsuguhiro Tamai

Director and Chief Financial Officer

Phone: [phone]

Announcement of Financial Results by Other Affiliated Company

ASKUL Corporation (the "Company") hereby announces that there are some descriptions about the Company in the financial results briefing presentation materials for the first quarter of fiscal year 2022 announced today by Z Holdings Corporation (headquarters: 1-3 Kioicho, Chiyoda-ku, Tokyo; representative: Kentaro Kawabe, President and Representative Director, Co-CEO, hereinafter referred to as "Z Holdings"), a company defined as "other affiliated company" of the Company. Please refer to the appendix for the applicable page of the presentation materials.

In the attached material, there are descriptions of the ASKUL Group's revenue and cost of sales. Please note that the consolidated accounting periods of Z Holdings Corporation and the Company differ as shown in the table below, and therefore the figures described in the material do not match the financial results to be announced by the Company.

Consolidated
accounting	Z Holdings Corporation	Company
period
	From April 1, 2022 to June 30, 2022
	・Page 1 and 4
	B-to-B net sales placed via the internet in
First quarter	every quarter	From May 21, 2022 to August 20, 2022
・Page 2
	In the attached material, ASKUL Group's
	revenue and cost of sales are described as
	factors of increase and decrease of Z
	Holdings financial results.

Appendix: Z Holdings Financial Briefing Presentation Materials for Q1 (excerpt)

Note: Z Holdings holds 44.92% of the Company's outstanding shares as of May 20, 2022.

1

Business Overview (Domestic Merchandise Transaction Value)

Commerce Business

• Domestic merchandise transaction value: JPY731.6 B (YoY +5.9%) due to steady growth in shopping & reuse businesses.

Domestic Merchandise Transaction Value1	Domestic Merchandise Transaction Value1 - YoY Growth Rate

(JPY B)

		802.8	772.7			+20.8%	+21.1%
		11.3	731.6
		71.7	10.9	6.5
690.8	686.0		71.4	73.3
10.4		11.9
71.1	67.4	241.9					+15.1%
		238.9			+14.3%
			240.8
228.3	219.5
					+13.1%
					+5.7%	+8.8%	+10.3%
		477.8
380.8	387.0	451.4	410.9
					+0.4%
Q1'21	Q2'21	Q3'21	Q4'21	Q1'22	Q1'21	Q2'21	Q3'21

Shopping Business	Reuse Business		Overall		Shopping Business
ASKUL Online BtoB Business	Other Merchandise

+10.9%

+7.4% +7.9%

+5.9%

+5.2%+5.4%

Q4'21 Q1'22

Reuse Business

1. Please refer to page 26 of the Appendix for definition of transaction value.

1

FY2022 Q1 Factors of Change in Operating Income

Whole Group

(JPY B)		FY2022 Q1	YoY Difference	YoY		Major Factors of Change (JPY B)
						•	LINE +10.9
Revenue		390.5	+17.2	+4.6%	•	ASKUL Group +3.9
						•	ZOZO +3.7
Cost of sales		122.2	+2.6	+2.2%	•	ASKUL Group +2.7
SG&A		218.5	+16.1	+8.0%
(Major items)	Personnel expense	60.3	+6.8	+12.8%	•	LINE +4.4
•	Yahoo Japan +1.3
		Depreciation and amortization	34.3	+0.5	+1.7%	•	Yahoo Japan +0.8
		Business commissions	29.9	+3.8	+14.7%	•	LINE +1.5
		•	Yahoo Japan +1.0
		Sales promotion cost	29.9	+1.0	+3.6%	•	LINE +1.4
		•	PayPay Card +1.3
Other income & expenses	0	0	N/A
Operating income		49.7	-1.6	-3.2%

2

Mart ｜ Yahoo! JAPAN Mart by ASKUL

Commerce Business

• Rebranded to "Yahoo! JAPAN Mart by ASKUL" for full launch. Number of stores increased to 20.
• Efforts continue to speedily establish a system that can serve all 23 wards of Tokyo within FY2022.

Item	Status		Next Steps	Delivery Bases (Tokyo's 23 wards)1
Target area	Expanded to 20 stores		Speedily establish a system
• New store opened in	▶	that can serve all 23 wards of
(delivery bases)
Chiba Prefecture		Tokyo within FY2022
	Main customer segments:		Increase no. of users through
	• Male customers in their
		measures to raise recognition
Users	mid 20s - early 40s	▶
and implementation of user
	• Female customers in		incentives
	their mid 20s - 30s
				Coverage rate within
	Approx. 2,000 types		Expand brands and product	Tokyo's 23 wards1,2:
No. of		Approx. 80%
• Started handling fresh	▶	lineup utilizing ASKUL's product
products handled
fruits/vegetables		procurement capabilities

1.	As of August 3, 2022	3
2.	Based on the number of households

Business Results (P/L): Commerce Business			Commerce Business
(JPY Million)
FY2021 Q11	FY2022 Q11	YoY
Revenue	195,979	205,629	+4.9%
	Merchandise EC	160,006	166,824	+4.3%
		Shopping business	74,810	79,392	+6.1%
		Reuse business	14,034	14,052	+0.1%
		ASKUL online BtoB business	71,161	73,379	+3.1%
	Services EC	2,837	5,357	+88.8%
	Other	33,134	33,447	+0.9%
Cost of sales	85,223	88,961	+4.4%
Selling, general and administrative expenses	88,023	92,322	+4.9%
	Sales promotion cost + Advertising and promotional expenses	25,380	25,054	-1.3%
	Other selling, general and administrative expenses	62,643	67,268	+7.4%
Other revenue and expenses	-	-	N/A
Adjusted EBITDA (Margin)	35,514 (18.1%)	37,396 (18.2%)	+5.3%

1. From FY2022 Q1, LINE Corporation's services that had been recorded in Adjustments to each business segment. Figures have been retroactively revised from FY2021 Q1.

4