#1FY2022.6 Q2 PRESENTATION MATERIAL mercari#2Financial Results Presentation Material mercari Table of Contents 1 New Management Execution Structure 2 Summary 3 Financial Highlights 4 Appendix 2#3New Management Execution Structure 3#4Financial Results Presentation Material 1 Strengthed the Management Structure Starting in Jan. 2022, strengthened the management structure for further growth of Mercari Group. Will accelerate global expansion and strengthen synergy among businesses in the Japan Region. Global Expansion Senior Vice President, Senior Vice President, Global Strategy/CEO of Mercari, Inc. (US) Representative Director, Global Expansion Hirohisa Tamonoki John Lagerling 1. Leading cooperation in the Japan Region as the SVP promoting Japanese business mercari CEO Shintaro Yamada Japan Region Senior Vice President, Japan /CEO of Mercoin, Inc. Naoki Aoyagi 4#5Financial Results Presentation Material 1 Mercari Group Structure Created the new Japan Region designation to accelerate synergy between businesses. Planning to further promote marketing plans, product updates, and strengthening of the security environment across the Japan Region. mercari Mercari, Inc. Established Activities Representative Representative of Mercari JP February 1, 2013 Planning, development, and operation of the Mercari marketplace app Shintaro Yamada Jeff LeBeau Established Activities Representative MERCARI Mercari, Inc. (US) January 2014 Planning, development, and operation of the US version of Mercari John Lagerling souzoh Souzoh, Inc. January 28, 2021 Planning, development, and management of internet services Yuki Ishikawa merlogi merpay mercoin Merlogi, Inc. Merpay, Inc. Mercoin, Inc. October 28, 2021 Planning, development, and management of logistics services Tomoyuki Shindo November 20, 2017 Financial-related businesses Masato Yamamoto April 28, 2021 Cryptoasset- and blockchain-related services Naoki Aoyagi mercari Japan Region Kashima Antlers F.C. Co., Ltd. October 1, 1991 Management of a soccer club Fumiaki Koizumi 5#6Financial Results Presentation Material 1 Established the ESG Committee . Established an ESG committee to advise the company's Senior Executive Committee, which carries out management discussions and decision-making for Mercari Group. Appointed Mercari CEO Shintaro Yamada as chairperson. Involved company officers in business-related management decisions from an ESG perspective, allowing Mercari to balance its businesses and ESG initiatives with respect to the company's materiality, in an effort to ensure a structure that will allow Mercari to swiftly implement and promote these initiatives. ESG Committee Structure Board of Directors Advises Nomination and Remuneration Advisory Committee 1. Established on December 13, 2021 mercari Reports to Senior Executive Committee Subcommittees of the ESG Committee D&I Council Reports to Approves ESG Committee Advisory Board on the Ideal Mercari JP Mercari US Merpay Form of a Marketplace Kashima Antlers Souzoh ESG officer appointed from each business division Mercoin Merlogi 0#7Financial Results Presentation Material 1 ESG-Initiatives in Q2 for Each Material Topic Material Topic Creating a Circular 1 Economy/Mitigating Climate Change Initiatives in Q2 • Submitted a commitment letter to SBT (Science Based Targets)] • Launched a limited-time "Sustaina Store," which allows people to experience sustainability through buying used items 5 2 Diversity & Inclusion 3 Local Empowerment 4 Safe, Secure, and Fair Transactions • Awarded Gold on the "PRIDE Index 2021," which recognizes companies for their work on LGBTQ+ initiatives • Started the "Mercari Restart Program," aimed at helping people return to the workforce after pausing their careers to focus on such things as childcare or nursing care ⚫ Kicked off the full rollout of Mercari Shops, a service that helps businesses start offering online sales and establish their own online shops Helped the town of Yamada (Iwate Prefecture) open an online shop on Mercari Shops and start listing the equipment of a closed school (a first in Japan) Formed partnership agreements between Souzoh and the communities of Unzen and Hokuto • Entered a comprehensive partnership agreement with USJ to build an environment for safe and secure transactions Entered a comprehensive partnership agreement with 7-Eleven, FamilyMart, and Lawson to build an environment for safe and secure transactions Welcomed the Japan Association of Music Enterprises to Mercari's Intellectual Property Protection Program Corporate Governance/ Reorganized the company's authority rules based on our new management structure Compliance 1. Greenhouse gas emission reduction targets to be set by companies for the next 5-15 years, consistent with the levels required by the Paris Agreement. mercari 7#8Financial Results Presentation Material 1 ESG―Revitalizing Local Communities Through Mercari Shops mercari Helping to revitalize local communities, promote the circular economy, and address social problems through Mercari Shops. ○ Approx. 60% of shipped items are from outside of Japan's major cities]. о Began working with local governments² to provide support for businesses, etc. that have not been able to utilize e-commerce in the past. ○ Will expand initiatives to circulate equipment from closed schools to other communities in Japan, like the town of Yamada, Iwate Prefecture, which is the first municipality to use Mercari Shops to list items from a closed school. A first for local governments ショップ 9:41 Q なにをお問 スト おすすめ ショップ カテゴリー The town of Yamada listed items from a closed school on Mercari Shops! 1. Survey period: August 1, 2021-August 31, 2021. Definition of urban areas: Tokyo and surrounding areas (Tokyo, Kanagawa, Chiba, Saitama), Aichi, Osaka 2. Funabashi, Seto, Yamada, Unzen, Hokuto, etc. Shops メルカリに、あなたのお店を作りませんか? おすすめの商品 MOVE v3,000 V3,000 V2,250 V1,600 v2,000 V1,900 8#9Summary 6#10Financial Results Presentation Material 2 FY2022.6 Q2 Progress & Highlights Consolidated Promoted the establishment of a business foundation that enables mid- to long-term growth with actions that include strengthening our management structure and recruiting aggressively. • Progress toward the initial targets of GMV +20% or higher YoY (JP/US) and adjusted operating margin of 30% or higher (JP) is behind schedule, but there is no change to the initial targets at the moment. Continued to promote identity verification and product development to further establish a safe and secure usage environment that will contribute to future growth. Mercari JP .GMV achieved a new record and continues to grow at a high rate • Promoted services that can be easily and securely used by a wide range of generations through personalization and . web enhancement Souzoh Strongly increased the number of shops and listings after the full rollout on Oct. 7 Proactively implemented marketing initiatives to maximize the selling experience Merpay • The outstanding balance of fixed-amount payments exceeded 35 billion JPY and is growing steadily • Aiming for continuous growth using Merpay's original and unique credit Merlogi Established Merlogi in Oct. 2021 • Began a POC using Mercari Post in Tokyo's Setagaya ward Mercoin Mercari US Thanks to strategic marketing initiatives carried out in the holiday season, MAU increased, and as a result the GMV growth rate was +17% YoY Achieved a record high 5.3 million MAU for a single month in December Cryptoassets: Working to acquire the license for handling cryptoassets with the goal of starting the business in FY2023.6 NFT: Aiming to use blockchain technology in 2022 or after 1. Amount before recording internal transactions between Mercari and Merpay as a result of transferring settlement to Merpay (outsourced payment processing fees) mercari Kashima Antlers For the 30th anniversary year, promoted the new management vision, "Vision KA41," that was updated for the first time in 10 years 10#11Financial Results Presentation Material 2 FY2022.6 Q2 KPI Summary Net Sales 37.5 Excluding the impact of changes to accounting policies on sales Consolidated billion JPY (YOY +44%) 31.6 (YoY +22%) billion JPY Operating 2.6 Income billion JPY (YoY -3.6 billion) Mercari JP GMV YOY +15% Adjusted Operating Margin 26% (YOY-7 ppts) Merpay Number of Users² 12.1 million Mercari US GMV1 YOY +17% MAU³ 5.1 million (YoY +21%) 1. Aggregated transaction value after adjusting for cancellations (the GMV of Mercari JP does not include the GMV of Mercari Shops) 2. Aggregated number of unique users who have registered for Merpay Electronic Money or used QR Code Payments, Online Payments, or Merpay Smart Payments (lump-sum payment or fixed-amount payment), etc. as of the end of December 2021. 3. Quarterly average number of users who browsed our service (app or web) at least once during a given month. mercari 11#12FY2022.6 Q2 Financial Highlights 12#13Financial Results Presentation Material 3 Financial Highlights -Consolidated Net Sales & Operating Income In addition to the steady growth of the three pillars, net sales increased mainly due to the impact of the change in accounting policy for new sales recognition of Mercari US. О Excluding the impact of the change in accounting policy, which was 5.9 billion JPY, sales in Q2 were 31.6 billion JPY (YOY +22%). Recorded a consolidated operating loss as a result of strengthening investment in marketing that will contribute to the future growth of each business. mercari Net Sales (Billion JPY) 37.5 YOY +44% 33.6 5.9 4.7 28.6 29.2 31.6 26.0 28.8 22.9 22.1 (Excluding the impact of the change in accounting policies) 20.3 18.4 YOY +22% 14.5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY2020.6 FY2021.6 FY2022.6 Operating Income 3.6 (Billion JPY) 0.9 1.0 0.8 0.3 0.1 Q1 Q2 03 Q4 Q1 Q2 Q3 Q4 Q1 02 FY2020.6 FY2021.6 FY2022.6 -6.3 -6.8 -7.0 -2.6 1. Due to the adoption of the new sales recognition standards under J GAAP, as of FY2022.6 Q1-Q2 Mercari US shipping revenue and costs are to be calculated based on gross results instead of net results. Net sales increased mainly due to this change. The gross results for Mercari US are nearly double those of the net results. 13#14Financial Results Presentation Material 3 mercari Talent Supporting Mercari's Growth Continued to hire aggressively and steadily increased our headcount. Number of Employees Q1 Q2 Q3 FY2016.6 795 712 596 555 462 376 Q4 70 Q1 1,140 1,014 1,357 1,7861,8261,8621,8271,860 1,891 1,792,752 1,1 1,829 1,730,7091,752 1,639 22 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2017.6 FY2018.6 FY2019.6 Q1 70 22 Q2 Q3 FY2020.6 70 Q4 Q1 Q2 Q3 FY2021.6 60 Q4 Q1 Q2 FY2022.6 14#15Financial Results Presentation Material mercari 3 Mercari JP-GMV/MAU² Steadily expanded the user base through the acquisition of new users and CRM initiatives to revitalize existing users, resulting in GMV achieving a new record in Q2. GMV growth rate was lower than expected due to a decrease in the number of listings and purchase frequency as a result of the end of the state of emergency in October. GMV/MAU YOY (Million +13% users) GMV (Billion JPY) MAU (Million users) 19.820.4 18.0 19.0 19.5 17.417.5 YOY 226.8 16.5 208.6 (Billion +15% 15.3 208.2 JPY) 14.5 197.0 203.4 13.5 180.4 12.9 164.1 170.6 12.3 11.3 154.4 128.9 133.929.26.8 9.6 10.310.7 86.793.896.199.0 9.0 8.4 7.2 6.5 5.9 5.2 4.5 65.169.470.2 3.7 54.9 3.1 38.339.642.4 31.9 22.7 Q1 FY2014.6 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2015.6 Q1 Q2 Q3 Q4 Q1 FY2016.6 FY2017.6 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY2018.6 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY2019.6 FY2020.6 FY2021.6 FY2022.6 1. Does not include the GMV of Mercari Shops. 2. Quarterly average number of users who browsed our service (app or web) at least once during a given month. 15#16Financial Results Presentation Material 3 Mercari JP-Net Sales/Adjusted Operating Income The adjusted operating margin was flat QoQ as a result of continued aggressive investment in expanding the user base, the source of sustainable growth. Will continue to further strengthen investments that will contribute to future growth. Net Sales 12.0 Q1 (Billion JPY) 20.2 19.0 16.8 15.9 15.3 14.4 19.8 19.4 21.8 YoY +15% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY2020.6 FY2021.6 FY2022.6 Adjusted Operating Income/Margin (Billion JPY) 42% 30% 32% 18% 32% 34% 33% YOY 29% 26% 26% -7ppts Adjusted Operating Income Margin 2.1 7.1 4.6 4.6 4.5 6.8 6.6 6.1 5.1 5.6 YOY Q1 Q2 03 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY2020.6 FY2021.6 FY2022.6 1. From FY2022.6 Q1, to compare business results (YoY) exclusively for C2C transactions, the net sales shown here represent only the C2C results. mercari -9% 16 16#17Financial Results Presentation Material 3 Mercari JP-Cost Structure Against Net Sales No major changes QoQ. Advertising expense ratio increased YoY due to aggressive investment in Q2 to acquire new users for mid- to long-term growth. ■Adjusted operating income 18% ■Promotion 32% 30% 29% 26% 26% 32% 34% 33% 42% 24% Other SG&A 18% 25% 26% 19% 22% 22% 22% 21% 12% 13% 11% Commission fees 11% 11% 10% 15% 8% 11% 9% 9% 10% 14% 13% 13% 13% 13% 13% 14% 13% 13% 23% 20% 17% 17% 15% 15% 14% 14% 15% 14% 9% 7% 7% 8% 8% 8% 8% 9% 9% 9% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY2020.6 FY2021.6 FY2022.6 1. Outsourcing expenses, rent, and taxes & dues mercari Personnel expenses (cost of sales and SG&A) Other cost of sales 17#18Financial Results Presentation Material 3 Mercari JP-Evolution of Personalization To increase ARPU, we developed real-time personalization that displays engaging content for each individual user. As a result, the purchase ratio of items recommended on the home screen continues to improve. 9:41 9:41 2019 ○ なにをお探しですか? 2020 Q なにをお探しですか? 保存した検索条件 おすすめ 新名 カテゴリー 115 [ピックアップ $455 マイリスト P300円もらえる Recommended Items SOLD V3,300 ¥1,900 ¥980 ¥700 ¥442,600 ¥2,780 SOLD ¥2,000 ฟร 9:41 .l 2021 ○ なにをお探しですか? アップ マイリスト おすすめ ショップ 必P300 もらえる 残高 ¥6,300 > Recommendations based on user history Brand A Ladies SOLD Watch Mens ¥3,800 ¥820 ¥4,600 ¥1,600 ¥21,000 ¥1,110 ¥999 ¥2,120 15 おすすめの商品 Timeline feed of recommended items Images are for illustrative purposes only and may differ slightly from the content actually displayed on Mercari. Personalized content with recommended items based on keyword/major category pairings [必 P300 もらえる 残高 ¥6,300> Recommendations based on user history Brand A Handbag Ladies > Bag すべて見る > ¥20,000 ¥10,000 ¥4,300 ¥5,630 Brand A Leather Jacket Ladies > Jacket / Outer すべて見る > ¥4,600 ¥1,100 ¥2,700 ¥2,120 Algorithm-driven home screen displays personalized content Recommendations based on improved catalog of keyword/detailed category pairings 18#19Financial Results Presentation Material 3 Mercari JP-Strengthening Mercari Web Second Entrance after App To diversify the user base and improve UX, we continued to add features to Web that were only available on the app previously. As a result, the rate of new buyers from Web and the ratio of GMV coming from Web have both increased. mercari 2 3 Improved Functionality Enhanced search functionality 1 - Display keyword suggestions - Sort by recommended order Enhanced payment options - Support for coupon use Personalization Display recommended items on the home screen 3% Ratio of GMV from Web Q1 Q2 Q3 FY2020.6 8% 40 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY2021.6 FY2022.6 19#20Financial Results Presentation Material 3 Mercari JP-Entering the NFT Market Started the new service "Pacific League Exciting Moments ẞ"1 in partnership with Pacific League Marketing Corporation, allowing users to purchase video content as our first step to entering the NFT market. Plan to launch new features that use blockchain technology starting in 2022 or after. 2nd STEP 3rd STEP Create an open marketplace that anyone can easily use to exchange not only goods and credit, but various forms of value through Mercari Group synergy Leverage blockchain technology to provide content management, resale features, etc. 1st STEP Sell digital content ahead of the future popularization of NFTS FY2022.6 2022- 1. Launched on December 23, 2021 mercari 20 20#21Financial Results Presentation Material 3 Souzoh―Mercari Shops Business Condition Good after Full Rollout Mercari Shops has been progressing well after all businesses (individuals and companies) were able to open shops starting on Oct. 7. Even though the features are limited, KPIs that will lead to future growth, such as the number of shops and listings, increased significantly in Q2 due to proactive marketing initiatives. We will continue to aggressively implement marketing initiatives in addition to functional improvements in order to create a selling experience for businesses. Increasing awareness for businesses TV Commercial メルカリにあなたのお店を! M Shops メルカリショップス a 771-S App Store Google 9:41 ショップページ カックンファーム メルカリ Shops ショップ Creating a selling experience Promotions No selling fees* メルカリ Shopsの 販売手数料が 無料 ※売上10万円まで *Up to 100,000 yen in sales 30-50% points back for buyers メルカリ Shops のお買い物で 50% ※上限P1000/回(上限合計P4000) 21 221#223 Souzoh―Mercari Shops Product Initiatives • Plan to offer a feature that allows users to create stand-alone websites for their shops outside of the Mercari app. Outside the Mercari app Individuals Sole proprietors Companies On the Mercari app Allows users to set up a stand-alone website for their online shop outside of the app as well (To be provided within 2022) Inflow from social media O f Allows users to set up an online shop even without technical knowledge or expertise m Shops Using just their smartphones, users can: Manage listings Manage shipping •Manage sales Displays shop operators' items on the app under the Shop tab and on the search screen Over 20 million monthly active users on the Mercari app mercari 22 22#23Financial Results Presentation Material 3 Merpay—A Single Wallet . A single wallet for payment, credit, and Growing Wallet. Payment Various payment methods available: iD payment, code payment, and virtual card Virtual Card Input a number メルベイスマート払い 1234 5678 9012 3456 01/23 CVC2 123 MERPAY MEMBER Credit Various services that utilize unique credit based on behavior history such as usage history on Mercari Lump-Sum Payment Pay for everyday purchases all at once the following month Fixed-Amount Payment Treat yourself now and pay over several months at a fixed amount of your choice Growing Wallet Started services allowing users to use their Merpay balance for asset management and more Asset Management mercari iD Payment Hold your phone over a reader Pay Code Payment Scan the code OXXO 回临 1,000 Smart Money Borrow when needed and repay flexibly: interest rates fluctuate depending on the borrower's usage of Mercari M Pay ¥ 23 23#24Financial Results Presentation Material 3 Merpay―Steady Growth of Fixed-Amount Payment Due to our ongoing product improvement and marketing strategies, the outstanding balance for fixed-amount payments has surpassed 35 billion JPY and is growing steadily. Raised the limit of liquidated fixed-amount payment receivables (30 billion JPY → 60 billion JPY)'. 1. Revised on December 23, 2021 mercari OVER 35 Billion JPY 24 24#253 Merpay―Our Unique Brand of Credit Utilizing the usage history of Mercari and Al technology, we provide the appropriate amount of credit to users. In doing so, we aim to realize a high collection rate and the creation of a safer, more secure environment. Mercari usage history, etc. + Al technology Financial Results Presentation Material mercari Usage history Offer the appropriate amount of credit High - Usage limit ΑΙ Unpaid rate Low Simulating a user's unpaid rate & credit amount Note: This graph represents one possible example. 25 25#26Financial Results Presentation Material 3 Mercari US-GMV/MAU Supported by marketing campaigns in the high-demand holiday season, successfully acquired new users and achieved a record high 5.3 million MAU for a single month in December. Due to the increase of MAU and AOV, the GMV growth rate was 17% +YoY. GMV/MAU 5.1 YOY 5.1 4.6 4.8 4.2 4.04.2 320 300 +21% 308 (Million users) 284 289 3.3 263 271 GMV (Million USD) MAU (Million users) 2.9 2.7 2.3 1.7 1.6 1.7 19 1.9 2.0 2.0 160 1.7 1.8 1.5 127 1.1 0.9 1.1 1.1 103 100 109 0.5 0.5 87 71 38 31 52 51 51 60 59 35 40 12 18 27 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY2015.6 FY2016.6 FY2017.6 FY2018.6 1. Quarterly average number of users who browsed our service (app or web) at least once during a given month. mercari FY2019.6 FY2020.6 FY2021.6 FY2022.6 YOY +17% (Million USD) 26 26#27Financial Results Presentation Material 3 Mercari US-Q2 Sales/Adjusted OP (US GAAP) Sustained positive YoY sales growth of 22% due to PPF adoption in the middle of FY2021.6 Q2. The adjusted operating profit decrease QoQ is mainly due to an increase in promotion costs and labor costs as we have been focusing on hiring. Net Sales Adjusted Operating Profit (Million USD) 40.8 33.5 26.7 26.2 28.9 22.7 18.6 73.3 76.0 78.1 (Million USD) (Million USD) 97.3 95.8 YOY 92.3 +22% 84.7 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY2019.6 FY2020.6 FY2021.6 FY2022.6 1. Adjusted operating profit after non-cash items (i.e., stock-based compensation and depreciation) are deducted. mercari 4.5 (Million USD) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY2019.6 FY2020.6 FY2021.6 -8.3 FY2022.6 -13.9 -15.3 -14.0 -18.9-19.9 -17.8 -19.5 -20.5 -20.1 -22.2 -27.3 -34.9 27 27#28Financial Results Presentation Material 3 Mercari US―Holiday Season Marketing Initiatives/Product Updates Successfully implemented an online coupon promotional campaign during the holiday season to capture seasonal demand and acquire new users, as well as to activate existing users. Although the impact on the total GMV is still small, Mercari Local and BNPL payment service continue to drive transaction volumes of high unit price goods and contribute to new user acquisition. Holiday season campaigns Contribution to new user acquisition MERCARI Deal Day: 12 Days of Gifting Uke terms Handbags Every hout the first 100 shoppers get o 530 coupon MERCARI 12 Days of Listing $20 Here's your coupon reward." 20% 10% Implemented daily campaigns specifically for high-demand categories during the holiday season 1. BNPL (Buy Now, Pay Later): Service started in September 2021 in partnership with Zip mercari About 20% of BNPL buyers are first-time Mercari buyers About 10% of new users choose "Mercari Local only" when listing for the first time 28 28#29Financial Results Presentation Material 3 Mercari US―New Marketing Initiatives Aired a new TV commercial tie-up with the movie "Sing 2" in December to improve brand awareness. Launched our first pop-up shop on December 29 in San Francisco, targeting shoppers who received unwanted gifts during the holidays and educating them about how easy it is to sell secondhand and unused items, as well as showing them the positive impact reselling has on the planet. mercari ILLUMINATION PRESENTE SING 2 SEE THE MOVIE For you Saved searches My likes View in cart View in cart MERCARI TV commercial tie-up with "Sing 2" Video: https://www.youtube.com/watch?v=4ba8m9dBius MERCARI San Francisco pop-up shop Open: Dec 29, 2021-Feb 12, 2022 Customers can receive up to $100 ($30 maximum per item) on the spot via Venmo or PayPal by engaging directly with on-site experts who will assess the value of each item, allowing them to skip the online listing and shipping process. 29 29#30mercari Financial Results Presentation Material 3 H2 Focus Areas Consolidated Mercari JP Merpay Mercari US Create solid results by advancing Global Expansion and generating synergy through enhanced cooperation between our business in the Japan Region Continue aggressive investment in H2 to maximize future profits Carry out marketing, online initiatives, and product initiatives while taking into consideration the efficiency of investments, and create a business structure that allows for future growth Further establish a safe and secure usage environment Continue to establish a safe and secure usage environment, as well as take on product enhancements and marketing initiatives to expand the user base for further growth of the credit area leading to enhanced profitability Aim for growth by expanding our user base through the leveraging of services like Mercari Local to simplify the listing process, strengthening CRM initiatives, and continuing with marketing in Q3 and beyond 30 30#31Appendix 54 31#32Financial Results Presentation Material mercari 4 Board of Directors Structure Aiming to globalize our business, we have invited a new director with expertise in global management to serve as one of the independent outside directors. 5 Directors Directors (2). Shintaro Yamada (Re-appointment) Chief Executive Officer Fumiaki Koizumi (Re-appointment) President CEO of Kashima Antlers F.C. Co., Ltd. -Independent Outside Directors (3)- Ken Takayama (Re-appointment) Makiko Shinoda (Re-appointment) Norio Murakami (New appointment) 32 32#33Financial Results Presentation Material 4 Strong Governance Structure (Independent Outside Directors) Ken Takayama The Industrial Bank of Japan, Limited (currently Mizuho Bank, Ltd.) Chief Financial Officer of Rakuten, Inc. Outside Director of STAR FESTIVAL INC. Outside Director (Audit and Supervisory Committee Member) of TECHMATRIX CORPORATION (current position) Outside Director (Audit and Supervisory Committee Member) of Metaps Inc. Outside Board Member of MEDIA DO Co., Ltd. • Makiko Shinoda Background The Long-Term Credit Bank of Japan, Limited (currently Shinsei Bank, Limited) McKinsey & Company, Inc. Novartis Pharma K.K. Head of Finance of Nestlé Nutrition K.K. (currently Nestlé Health Science) Director CFO of Hobonichi Co., Ltd. Director of YeLL Inc. (current position) . Norio Murakami Hitachi Electronics Corporation (now Hitachi Kokusai Electric Inc.) Chairman Emeritus of Google Japan, Inc. (currently Google Japan G.K.) External Director, V-cube, Inc. (current position) External Director, Weathernews Inc. Chairman and Representative Director, ENERES Co., Ltd. Outside Director, CellSource Corporation (current position) Specialized knowledge and extensive experience in the financial business and managing internet services companies. mercari Reasons for Selection as Outside Directors Professional knowledge and deep experience in D&I, ESG, finance, etc. Management experience and technical knowledge of global companies 33 33#34Financial Results Presentation Material mercari 4 Consolidated BS (Million JPY) FY2020.6 Q4 FY2021.6 FY2022.6 Q4 Q2 Total current assets 169,277 227,926 272,846 Cash and cash equivalents 135,747 171,463 193,404 Other receivable 15,612 47,001 70,199 Total fixed assets 28,736 34,603 54,163 Total assets 198,014 262,529 327,010 Total liabilities 162,645 222,516 286,438 Other payables 16,206 17,775 20,880 Deposits received 83,954 117,099 137,071 Short-term debt 900 55,000 40,114 Long-term debt¹ 51,547 16,148 26,048 Convertible-bond-type 50,000 bonds with stock Total net assets 35,368 40,013 40,571 Total liabilities and net assets 198,014 262,529 327,010 1. Includes long-term borrowings planned to be repaid within 1 year. 34#35Financial Results Presentation Material 4 Consolidated P&L (Million JPY) FY2021.6 Q2 FY2022.6 Q1 FY2022.6 Growth Q2 YOY QoQ Net sales 26,057 33,634 37,556 +44.1% +11.7% 1 EBITDA 1,238 1,049 -2,431 Margin (%) 4.8% 3.1% -6.5% Operating income 1,006 849 -2,624 Margin (%) 3.9% 2.5% -7.0% Loss attributable to owners of parent -169 -119 -2,609 1. Operating income + Depreciation and Goodwill amortization mercari 55 35#36Financial Results Presentation Material mercari 4 Mercari JP P&L (Billion JPY) FY2021.6 Q2(Oct-Dec) FY2022.6 Q1(Jul-Sep) FY2022.6 Q2(Oct-Dec) GMV 197.0 203.4 226.8 YOY 27.5% 19.3% 15.1% Net sales 19.0 19.4 21.8 as % of GMV 9.7% 9.6% 9.6% Operating income 3.9 2.8 3.1 Margin(%) 21.0% 14.7% 14.3% Adjusted operating income 6.1 5.1 5.6 Margin (%) 32.3% 26.2% 25.7% 1. From FY2022.6 Q1, to compare business results (YoY) exclusively for C2C transactions, the net sales shown here represents only the C2C results. 2. Excludes internal transactions with Merpay (outsourced payment processing fees) 36 36#37Financial Results Presentation Material 4 Mercari US PL¹ (Million USD) FY2021.6 Q2(Oct-Dec) FY2022.6 Q1(Jul-Sep) FY2022.6 Q2(Oct-Dec) GMV 263 271 308 YoY 107.3% -6.4% 17.2% Net Sales 78 84 95 as % of GMV 29.7% 31.2% 31.0% Operating income -11 -16 -23 Margin (%) -14.6% -19.6% -24.3% 2 Adjusted operating income Margin (%) -8 -14 -20 -10.7% -16.5% -21.1% 1. Based on US GAAP. Different in booking method from the figures of Mercari US included in Consolidate PL (J GAAP). 2. Adjusted operating profit after non-cash items (i.e., stock-based compensation and depreciation) are deducted. mercari 37 32#38Financial Results Presentation Material 4 Mercari JP-Q2 Cost Structure The increase in promotion costs was due in large part to investments to acquire new users for future growth. (Billion JPY) 5.7 4.7 4.4 4.2 4.2 2.8 3.4 2.4 2.9 2.8 2.2 2.2 1.8 2.0 1.7 1.8 1.5 1.3 1.4 1.6 Promotion 3.0 2.6 Other expenses 21 2.1 2.4 2.5 2.5 2.2 1.7 2.0 1.9 ■Commission fees 1.6 1.5 1.5 1.5 1.6 1.6 Personnel expenses 1.3 1.1 1.2 1.3 (SG&A) Personnel expenses 1.3 1.3 1.3 1.2 1.5 1.3 1.3 1.2 1.3 1.4 (cost of sales) Other cost of sales 1.0 1.0 1.1 1.2 1.2 1.5 1.6 1.7 1.7 1.8 Q1 Q2 Q3 Q4 1] FY2020.6 Q1 Q2 Q3 Q4 Q1 Q2 FY2021.6 FY2022.6 1. Outsourcing expenses, rent, and taxes and dues mercari 38 38#39Financial Results Presentation Material mercari 4 Q2 (Oct-Dec)-Category Shift M Mercari JP Toys increased YoY M Mercari US Toys, including trading cards, grew significantly YoY Others Kids 10% 4% Toys Others 10% Kids Other 5% Other Kids 5% Kids Home 4% Sports and Leisure 7% FY2021.6 23% Home 4% 3% Toys 25% Beauty 4% 5% Women 25% Beauty 4% 5% Women 25% Sports and collection 5% collection 5% Leisure 7% Beauty 7% Q2 Beauty 6% FY2022.6 Q2 Home 8% FY2021.6 Home 8% 2Q FY2022.6 2Q Electronics Women 20% 9% Men 17% Men Women Electronics 10% 19% 10% Men 16% Toys Men 10% 16% Electronics 21% Toys 20% Electronics 18% 39 39#40Financial Results Presentation Material 4 Merpay-Credit Volume of Deferred Payment in the EC Market' Amount of deferred payments in the EC market is growing. A rate of high market growth is forecast for the future. 1,880 billion JPY 440 billion JPY 882 billion JPY 2017 2018 2019 2020 Outlook 2021 Forecast 2022 Forecast 2023 Forecast 2024 Forecast 1. Source: E-commerce Payment Services (Payment Gateway) Market in Japan: Key Research Findings 2021. Survey by Yano Research Institute (notice: based on the transaction amount of deferred payment service providers) mercari 40 40#41Financial Results Presentation Material 4 Mercari US-US Reuse Market The US online reuse market has more than doubled since 2015 and is expected to reach approx. 200 billion USD by 2030. Key categories to watch include apparel and electronics, some of our strongest areas, while the data overall supports our strategy of continuing to strengthen our horizontal marketplace covering a wide range of demographics and categories to meet the growing market demand. US Online Reuse Market 2030 Forecast $196 billion 2015 $25 billion 2020 $56 billion 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Source: Mercari US "The Reuse Report" mercari 11 41#42Financial Results Presentation Material 4 Aiming for Planet Positive Contributing to solving environmental issues and helping to share the earth's limited resources among people and every living being on the planet for generations to come mercari By carefully using reused items with Mercari, users can contribute to carbon footprint reduction 42 442#43mercari Financial Results Presentation Material 4 ESG-Goals and Actions for Each Material Topic 1 Material Topic Creating a Circular Economy/Mitigating Climate Change 2 Diversity & Inclusion 3 Local Empowerment 4 • Maximize our positive impact • Minimize our negative impact Actions > Goals and Actions Awareness (ensure consumers know they have options other than throwing things away), education (provide an environment for consumers to learn about sustainable behavior), collaboration (create a circular economy throughout the entire value chain), etc. • Pursue ease of use for all users • Build an organization that provides fair opportunities to all employees Identify needs, improve the development organization, improve features, visualize structural inequalities, and build self-cleansing mechanisms and culture for equality, etc. Actions > Promote local economies and create opportunities for local empowerment Help to resolve issues by empowering individuals and companies Actions > Enter partnerships with local governments, support local governments through Mercari Donation, etc. • Increase the number of users who think of Mercari as a safe, secure, and fair service Safe, Secure, and Fair Transactions Corporate 5 Governance/ Compliance Actions > Use technology to create safe and secure mechanisms, update policies to match social changes, create a safe and secure environment with our customer service, etc. • Build stakeholders' trust in Mercari Group • Improve Mercari Group's resilience Actions > Establish measures and the appropriate structures to handle corporate governance, compliance and risk, security, and data privacy, etc. 43 43#44Financial Results Presentation Material 4 For Investors New to Mercari mercari Materials that cover basic information regarding Mercari Group M mercari FACT BOOK - Fact Book link https://speakerdeck.com/mercari_inc/mercari-fact-book-en M Pay OVERVIEW → Overview link https://speakerdeck.com/mercari_inc/merpay-overview-en 44#45Financial Results Presentation Material Disclaimer This material has been prepared based on information gathered at the time of its preparation and is not in any way intended as a commitment to future implementation. Also note that information contained herein has not been audited or reviewed by an independent certified public accountant or audit corporation, and includes financial information based on past financial statements or accounting documents as well as management figures not based on financial statements or accounting documents. This document is an English translation of the original Japanese language document and has been prepared solely for reference purposes. No warranties or assurances are given regarding the accuracy or completeness of this English translation. In the event of any discrepancy between this English translation and the original Japanese language document, the original Japanese language document shall prevail in all respects. The FY2022.6 Q3 financial results are scheduled to be released at 15:00 or later on April 28. mercari Mercari, Inc. TSE: 4385 45 45