Macromill : FY6/2021 Q3 Financial Results Presentation Material

2

Notes for this entire material

1. EBITDA = Operating Profit + Depreciation and Amortization + Loss on Retirement of Non-current Assets + Impairment Loss (For Segment EBITDA, applied Segment Profit instead of Operating Profit)
2. Revenue of each segment and region is shown using gross value including intersegment / interregional revenue, and the total amount of revenue of both segments or regions does not match the consolidated revenue (the difference is the amount of intersegment / interregional elimination)
3. Constant FX figures are calculated by applying the rate of the current fiscal year to the financial results of the same period of the previous fiscal year. We present financials results on a constant currency basis because we believe that this provides a framework for assessing how Macromill's business and, in particular, overseas businesses including MetrixLab and Macromill EMBRAIN, performed without taking into account the effect of the fluctuations between the euro and the yen since the same period in the prior year, but please note , it only excludes the effect of currency exchange between the Euro/Yen and the Won/Yen, but not exclude the effects of currency exchange on all local currencies (for example, between the Euro/USD).Please see the following table for the actual exchange rate applied.

	Q3 YTD (9 months)		Q3 Standalone (3 months)
	FY6/2020 QYTD	FY6/2021 Q3YTD	FY6/2020 Q3 Standalone	FY6/2021 Q3 Standalone
1 Euro =	120.34	125.37	120.56	127.91
1 KRW =	0.0917	0.0925	0.0911	0.0966

FY6/2021 Q3 Key Takeaways	3

• Q3 Standalone (3 Months) Revenue growth rate expanded and OP recovery trend continues
• • Revenue 12.06 bn JPY (YoY +2% / +1% in CFX) , and Operating Profit 2.30 bn JPY (YoY -6% /-6% in CFX)
  • Following the Japan and Korea Business Segment, the Overseas (ex-Korea) Business Segment Revenue turned to positive growth
• Q3 YTD (9 Months) results eradicate most of the Covid-19 adverse impact
• • Revenue 33.10 bn JPY (YoY -1% /-2% in CFX) , OP 5.14 bn JPY (YoY -15% /-15% in CFX)
  • Recovery in Profits is slower than Revenue due to an increase in Outsourcing Expenses and Total Employee Expenses as a results of high capacity utilization from client demand recovery
• Revise the Initial Guidance and dividend estimates upward, and conduct 0.8 bn JPY share buyback
• • Realizing recovery from the impact of Covid-19 with faster-than-expected return of client demand
  • Revised Guidance: Revenue 42.5 bn JPY (+6.3% vs. Initial Guidance), and OP 4.7 bn JPY (+38.2 % vs. Initial Guidance)
  • Additionally, the expected dividend per share is revised from 11.00 JPY to 13.00 JPY, and a 0.8 bn JPY share buyback is to be conducted based on the steady growth trend clearly in sight
• Re-defineJapan business strategy as the shift from "Recovery" to "Growth" occur in the largest part of our business
• • Transform our business from a Marketing Research Company into a Professional Marketing Services Company to help support clients solve their marketing issues through data utilization
  • Targeting the next 3 years as a transformation phase, accelerate the strategic up-front investment in talent to increase our service value to our clients while also promoting the work-style reform
  • Although the investment will impact the profit margin, we will proceed with a strong will in order to grow our Enterprise Value
  • At the same time, the capital allocation policy is re-prioritized, and the shareholder return is enhanced
• Maintain the basics of the Mid-term Business Plan, but aim to update the contents in near future
• • Continue to pursue further growth and aspire to be "Global Top 10" and "No.1 in Japan & No.1 in Asia" Marketing Research
    Company, but re-state the target timing
  • Plan to set Global strategy and consolidated financial target KPI for the next 3 years in the next earnings announcement

FY6/2021 Q3 : Consolidated Results - Summary	5

The impact of Covid-19 continues to shrink, and YoY positive growth in Revenue has continued since Q2 Revised Initial Guidance upward since the recovery in client demand was faster than the initial estimates

Revenue		Operating Profit (OP)
Consolidated (IFRS)	Consolidated (IFRS)
(JPY in Millions)	(JPY in Millions)

YoY Growth Full year :	+13%	+11%	-7%	+3%
Q3 YTD:	+11%	+12%	-2%	-1%
				Revised
		44,279		Guidance
				42,500
	40,024		41,270		YoY Growth
		10,025	-23%		-1%	Q3
35,514			7,718	9,396	YTD

YoY Growth Full year :+11%	+2%	-95%		+1,084%
Q3 YTD: +9%	+7%		-11%	-15%

7,6077,751

	9,542		33,552	33,105
Q4	8,148		-2%	+2% Q3
		12,072	11,784	12,068

11,578

Q3 9,992

				+1%	+0%	Q2
			11,792	11,885	11,939
		10,124
	9,250
Q2
				-5%	-8%	Q1
Q1	8,122	8,779	10,388	9,882	9,097
	FY6/2017	FY6/2018	FY6/2019	FY6/2020	FY6/2021

Q4	6,825		927
1,232
	973
Q3			2,809
	1,893	2,692
				Impairment
				loss of
				Goodwill
Q2				(5,280)
	2,390	2,283	2,428
Q1	1,569	1,398	1,586	396
	FY6/2017	FY6/2018	FY6/2019	FY6/2020

FY6/2020	YoY Growth
Q Breakdown
6,049	Revised	-15%	Q3
YTD
Guidance
		4,700
	-13%	5,147
2,441			-6%	Q3
		2,300
	-1%
2,395		-10%	Q2
		2,164
	-24%	-44%	Q1
1,212
		682
		(446)
Q4		FY6/2021
(5,653)	-140%

Pro-forma Actual

(373)

(w/o Impairment loss)

Q3 YTD	21.4%	20.9%	19.9%	18.0%	15.5%
OP Margin