Creema : Financial Results Briefing Report for 3Q, FY2022

Financial Results Briefing Report for 3Q, FY2022

CREEMA LTD. (TSE Mothers: 4017)

January 14, 2022

M I S S I O N

M a k e p e o p l e a n d t h e w o r l d h a p p y b y a c c o m p l i s h i n g

o u r w o r k w i t h l o v e

V I S I O N

A n e w b i g c o n g l o m e r a t e l e a d i n g t h e 2 1 s t c e n t u r y

C o r p o r a t e S t a t e m e n t

L e t ' s c r e a t e a h u g e r o u n d e r a !

Business structure and "Creema economic zone"

We are expanding our business into various service areas that support the activities of creators with Japan's largest handmade marketplace "Creema" as the main axis, and we are striving to expand the "Creema economic zone", where all services are dynamically linked.

Creator empowerment business

• Marketplace service (Japan / Taiwan / Hong Kong)

• KPIs of our business model		(Work listing)
−	Registered creators	220 thousand people
Creators	Transaction		(Purchase)	Users
−	Registered works	12 million items
Revenue
(Sellers)		Payment	(Buyers)
−	App downloads	12 million DL
	Transaction
−	GMV (FY22 forecast)	16.2 billion/year
	fees

• • Platform services
• Internal advertising (Advertising for creators)
• External advertising (Advertising for companies and local governments)
• Membership services
  (Daily remittance service, etc.)

• Events and Stores

• Events
• • HandMade In Japan Fes' (Tokyo Big Sight), etc.
• Stores
• • Creema Store

• • New service group
• Crowdfunding service
• • Creema SPRINGS

• Fulfillment service

• Lesson video platform
• • FANTIST
• Other new services in preparation, etc.

Copyright ©2022 CREEMA LTD.

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3Q, FY2022 Company-wide results

[Company-wide] 3Q and cumulative results

3Q sales landed at 557 million yen (115% YoY) and operating profit at 49 million yen.Sales for 3Q cumulative landed at 1.6 billion yen (109% YoY) and operating profit at 237 million yen (73% YoY). At the end of 3Q, the progress rate of operating profit to the annual budget trended well at 75%.

Consolidated Income Statement

Unit: million yen		3Q		Cumulative (1Q ~ 3Q)
Results			YoY		Results		YoY
			114%			103%
(Ref.) GMV		3,948	11,764
			Excluding		Excluding
					masks: 121%				masks: 120%
			115%			109%
Sales		557	1,666
			Excluding		Excluding
					masks: 120%				masks: 123%
Sales Cost		32	1832%	40	1212%
Gross profit		525	108%	1,625	107%
SG&A		475	116%	1,388	116%
Operating profit		49	65%	237	73%
Ordinary Profit		48	75%	232	76%
Net income		57	469%	204	82%

Topics

[3Q]

• Sales were 115% YoY in reaction to the surge in demand which arose in the previous fiscal year due to the spread of COVID-19.
• SG&A expenses were 116% YoY as a result of expanding growth investments such as new business investments as planned.
• As a result, operating profit was 65% YoY.
• Nonetheless, sales were 120% YoY if excluding mask- related sales, which surged due to the impact of COVID-19. Growth has continued in the main.

[3Q cumulative]

• Despite continuing to be hit by the impact of COVID-19 in businesses in the offline field, sales were 109% YoY due to business growth in the online field, making steady growth (sales strongly grew 123% YoY if excluding mask- related sales).
• SG&A expenses were 116% YoY mainly due to TV commercials, large-scale development investments, and new business investments.
• Consequently, operating profit for the first nine months was 73% YoY.
• The progress rate of operating profit to the annual target was 75% as of 3Q.

Copyright ©2022 CREEMA LTD.

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