RACCOON : FY 4/2022 (Ended April 2022)Financial Results

FY 4/2022 (ended April 2022)

Q4 Financial Results

June 10, 2022

RACCOON HOLDINGS, Inc. Code: 3031 TSE Prime Market

FY 4/2022 Q4 Results

© 2000 RACCOON HOLDINGS, Inc.	2

Executive Summary (1)

HO LDI N GS

• FY 4/2022 started with a low growth rate compared to FY 4/2021, a year that saw a rapid growth in sales thanks to special demand due to COVID-19. The number of users, however, increased steadily owing to continued high demand for each service, assuring a digital shift is continuing to take place in BtoB transactions.
• From the second half of the year, with the recovery of the domestic economy, growth in sales showed a positive trend, resulting in a 9.7% increase in net sales year on year. Net sales excluding net sales derived from the GMV of masks and sterilization goods in the EC business increased 12.2% year on year, recording double-digit growth.
• The domestic gross merchandise value of SUPER DELIVERY is steadily increasing with the recovery of the domestic economy. The gross merchandise value of business operators other than retailers rose sharply, accounting for a larger portion. As the value of transactions per customer of these operators is low, the overall value of transactions per customer slightly decreased from Q3 to Q4, which is viewed positively as expansion of the user base.
• SUPER DELIVERY overseas has enjoyed continuous growth in GMV backed by demand for the service, which outweighed factors that could hinder growth in the short term such as delays in deliveries due to container shortages and higher shipping costs owing to surging crude oil prices, as well as the situation in Ukraine and lockdowns of major cities in China.

© 2000 RACCOON HOLDINGS, Inc.	3

Executive Summary (2)

HO LDI N GS

• For Paid in the Financial business, the value of transactions of member companies grew and the number of member companies increased from the second half of the year on the back of recovery in the domestic economy. As a result, the value of transactions and net sales increased 19.4% and 16.7% year on year, respectively, achieving a very positive result.
• The number of defaults in the Financial business continued to rise gradually due to the relaxation of credit screening criteria as the domestic economy returns toward normal but remained far lower than pre- pandemic levels.
• The number of URIHO projects continued to increase steadily. Sales increased 56.4% year on year.
• Operating income decreased 5.9% year on year as a result of higher selling, general and administrative expenses comprising an increase in advertising expenses (+19.9% YoY) due to the strengthening of promotion and higher personnel expenses (+11.0% YoY) due to an increase in the number of staff.
• We recorded an impairment loss of goodwill of 147 million yen as extraordinary losses, as a result of reviewing future plans of RACCOON RENT, Inc., a consolidated subsidiary providing a rent guarantee business, in light of the deterioration of the external environment caused by the prolonged COVID-19 pandemic and other factors.

© 2000 RACCOON HOLDINGS, Inc.	4

Trends in Consolidated Net Sales (1)

HO LDI N GS

Consolidated net sales excluding net sales derived from the GMV of masks and sterilization goods in the EC business increased 12.2% year on year, recording double-digit growth

(Unit: Million Yen)

5,000
		Net sales derived from the GMV of masks and
4,500		sterilization goods in EC business (estimate)
4,000

4,789

4,364

3,500																													3,477
																									2,980
3,000
																						2,546
2,500																				2,359
													2,056		2,229																4,684
2,000											1,932																		4,173
					1,613	1,806
1,500				1,381
1,306
1,000
500
0
		FY 4/2010			FY 4/2011			FY 4/2012		FY 4/2013		FY 4/2014			FY 4/2015			FY 4/2016		FY 4/2017			FY 4/2018			FY 4/2019		FY 4/2020		FY 4/2021		FY 4/2022
		Q4			Q4			Q4		Q4		Q4		Q4		Q4	Q4	Q4	Q4	Q4	Q4	Q4

© 2000 RACCOON HOLDINGS, Inc.	5