Net Marketing : Financial Results for the Fiscal Year Ended June 30, 2022

Financial Results

for the Fiscal Year Ended June 30, 2022

Net Marketing Co. Ltd.

Stock Code 6175

[Forward-looking statements]

This material was prepared by Net Marketing Co. Ltd. (hereinafter referred to as "the Company") to increase understanding of the current status of the Company. The information contained in this material is derived from various sources including knowledge within the Company and public information available to the Company and the Company makes no guarantee of the accuracy of such information. The actual performance of the Company may differ due to a variety of factors.

[Representation of net sales in this material]

The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29) applies to the financial statements for the fiscal year ended June 30, 2022 and subsequent fiscal years. Accordingly, net sales of the Advertising Business segment are stated in net amounts, not in total amounts as in the statements for the past fiscal years.

For the purpose of comparison with past years' results, some slides in this material display net sales in total amounts.

0 1

Financial Highlights for the Fiscal Year Ended June 30, 2022

Executive Summary

Executive Summary

Fiscal year ended
June 30, 2022	Net Sales	Operating Income

Company-	5,168 million yen	404 million yen
wide results
Change YoY	+8.1%*	-30.8%
Media Business	Net Sales	Operating Income
Actual	3,750 million yen	389 million yen
Change YoY	-21.7%	-43.2%
Advertising	Net Sales	Operating Income
Business	1,428 million yen	748 million yen
Actual
Change YoY	+21.8%*	+34.6%
Earnings forecast	Net Sales	Operating Income
for the fiscal year ended
June 30, 2022	5,785 million yen	500 million yen
(figures announced in
August 2021)

• Comparison figures are calculated using figures before application of the Accounting Standard for Revenue Recognition.
  Actual results include adjustments (internal sales and corporate expenses).

Company-wide

• Net sales under the conventional standard increased 8.1% year on year, reaching the highest net sales in two fiscal years, but operating income declined 30.8% year on year.
• Although the performance of the Advertising Business remained strong and it significantly contributed to earnings, the Media Business fell short of the full-year earnings forecast due to a delay in the recovery of the Media Business.

Media Business

• Decrease in the number of Omiai paying members and point purchases by existing Omiai members compared to the initial plan
• Lower-than-expectedaccumulation of memberships in the fourth quarter, which is usually a busy season, resulted in lower net sales and income year on year.

Advertising Business

• Sales strategy was successful, and net sales under the conventional standard increased year on year. Operating income significantly increased by 34.6%.
• Financial projects centered on foreign exchange trading and cryptocurrency remained strong throughout the year and made a significant contribution to the earnings.

© 2 0 2 2 N e t M a r k e t i n g C o . L t d . A l l r i g h t s r e s e r v e d .

4

Financial Results

Financial Highlights Year on Year

Net sales under the conventional standard increased 8.1% year on year, reaching the highest net sales in two fiscal years. Operating income decreased by 30.8%.

				(Million yen)
	2021.6	2022.6		Increase/Decrease
		(%)
	Actual	Actual	(Reference: Under the
	(Under the conventional
			conventional standard*)	standard)
Net Sales	14,011	5,168	15,143	+8.1%
Gross Profit	4,521	3,906	3,906	-13.6%
Gross Profit Margin	32.3%	75.6%	25.8%
Operating Income	584	404	404	-30.8%
Operating Income Margin	4.2%	7.8%	2.7%
Ordinary Income	592	426	426	-28.0%
Net Income	336	326	326	-3.0%

* Figures show those for the case in which the Accounting Standard for Revenue Recognition (ASBJ Statement No.29) is not applied.

© 2 0 2 2 N e t M a r k e t i n g C o . L t d . A l l r i g h t s r e s e r v e d .

5