FY2021 1Q HIGHLIGHTS

OVERVIEW OF THE FY20211Q

OVERVIEW OF EACH QUARTER

INCREASE-DECREASE ANALYSIS OF OPERATING PROFIT(YoY COMPARISON)

CONSOLIDAYED BALANCE SHEET

CAPITAL INVESTMENT

CASH FLOWS

FY2021 1Q ZOZO,Inc. CONSOLIDATED BUISINESS RESULTS

ROE AND NET PROFIT MARGIN

DIVIDENDS PER SHARE AND PAYOUT RATIO

GROSS MERCHANDISE VALUE

GROSS MERCHANDISE VALUE(QUARTERLY)

NET SALES

NET SALES(QUARTERLY)

OPERATING PROFIT AND

OPERATING PROFIT MARGIN

2

SELLING, GENERAL AND

ADMINISTRATIVE(SG&A) EXPENSES

Overview

  • Gross Merchandise Value : 116,812 million yen (+22.5%,YoY)

OPERATING◯ Gross Merchandise Value (excludingPROFITother GMV) AND: 106,700 million yen (+11.9%,YoY)

YoY growth rate declined slightly, as the 1st quarter of the previous fiscal year was the quarter with strong positive impact (digital shift) due to COVID-19.OPERATONGThough the high hurdle from the last year PROFITresults, we managed to secureMARGIN(QUARTERLY)a double-digit YoY growth from successful user attraction measures such as

TV commercials, healthy growth of PayPay Mall etc.

  • Operating Profit : 12,591 million yen (+ 20.8,YoY)

Operating profit increased as an increase of gross profit in tandem with GMV growth and advertisement business growth and a decrease in expenses (logistics-related expenses and commission of payment collection).

SELLING, GENERAL AND ADMINISTRATIVE

Gross Merchandise Value

(SG&A)EXPENSES(QUARTERLY)

◯ ZOZOTOWN BUSINESS

◯ PayPay Mall : 9,805 million yen (+124.3%,YoY)

Gross Merchandise Value : 90,648 million yen (+6.6%,YoY)

◯ BtoB Business : 6,246 million yen (+4.8%,YoY)

Consignment sales : 87,346 million yen (+6.0%,YoY)

◯ Others* : 10,111 million yen

OVERVIEW OF SG&A BY EACH QUARTER

Outright Purchase / Production & ales : 720 million yen (+39.7%,YoY)

◯ Average Order Value : 7,501 yen (+1.2%,YoY)

USED sales : 2,581 million yen (+23.3%,YoY)

◯ Average Retail Price : 3,490 yen (+1.4%,YoY)

NUMBER*1 From the 3rd quarter of the fiscalOFyear ended MarchTOTAL2021, GMV for ZOZO OptionBUYERSstores at PayPay Mall are recorded.

ZOZO Option: Option contracts which enables fashion category stores outside of ZOZOTOWN PayPay Mall, to participate special events produced by ZOZO and enjoy merits such as sales support

*2 From the fiscal year ending March 2022, we are disclosing the GMV and net sales in new business segmentation. For detail, please refer "Change of business segments" in P.34.

3

NUMBER OF SHOPS ON ZOZOTOWN

Profitability

◯ACTIVEOperating profit margin*MEMBER(to the total gross DISTRUBUTIONmerchandise value) : 11.8% (10.9% for FY2020 1Q）

・Factors improving profitability : Improvement of gross profit margin due to the growth of advertisement business etc., a decline in logistics-related expenses ratio from improvement of operation efficiency improvement in logistics bases and a decline in payment collection commission due to the change of the vendor.

ANNUAL・Factors worsening profitabilityPURCHASE: An increase in advertisingAMOUNTexpenses from an increase of user attraction measures such as TV commercials and ZOZOGLASS distribution

AND*Operating profitPIECESmargin is calculated byPERoperating profitACTIVEdivided by the gross merchandiseMEMBERvalue (excluding other GMV)

Topic

  • The first adoption of a new delivery method"EAZY"by Yamato Transports, in Japan. Decrease risks of personal information

ANNUALleakage from packagePURCHASEdrop service and meet diversifiedAMOUNTneeds of ZOZO OWN users (May 2021) ◯"Salvatore Ferragamo"opened its shop in ZOZOVILLA (May 2021)

◯ANDPre-order ofPIECESthe face color measurementPERtoolEXISTING"ZOZOGLASS"exceededACTIVEa million. The numberMEMBERof measured users reached 800 thousand in 3 months (June 2021)

◯"DIOR"opened its shop in ZOZOCOSME on June 28, with lineups of 272 marketable items of makeup, skin care and flagrance. 14 foundation related items are supported by the ZOZOGLASS (June 2021)

◯"ZOZOSALE"started from June 18 and TV commercial of Ms. Tsubasa Honda started on the same day (June 2021)

◯NUMBERThe grand opening of"CHANEL"OF SHIPMENTSin ZOZOCOS E. 100 years anniversary of"CHANEL N°5"collections were available for a limited time only (July 2021)

4

AVERAGE RETAIL PRICE

AVERAGE ORDER VALUE

CONSOLIDATED BUSINESS FORCAST AND DIVIDEND FORECAST FOR FY2022

CHANGES IN BUSINESS SEGMENT

FY2022 TARGET BY BUSINESS SEGMENT

5

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Start Today Co. Ltd. published this content on 29 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2021 06:06:18 UTC.