Slides
Page 1
FY2026.6 Q2
Page 2
2 Group Mission Circulate all forms of value to unleash the potential in all people Financial Results Presentation Material
Page 3
Table of Contents FY2026.6 Q2 Financial Overview 1 2 Appendix Financial Results Presentation Material 3
Page 4
4 FY2026.6 Q2 Financial Overview
Page 5
Consolidated Highlights 1 Group Policy/Major InitiativesConsolidated Results Forecast (Full Year) Revenue 200.0–210.0B JPY ● Make preparations for FY2027.6 ● Essentially aim for top-line growth that will lead to increased profits ● Expand businesses centered around Group synergy Core operating profit1 28.0–32.0B JPY Objectives Raised at Start of FY2026.6 Marketplace and US both achieved double-digit GMV growth due to enhancements to the core experience of the products, as well as successful initiatives such as investments into marketing to accelerate growth. Fintech also achieved high growth with consolidated revenue reaching +15% YoY. Core operating profit continued high growth at +54% YoY despite a strengthened focus on investments. 56.8B JPY (+15% YoY) 10.9B JPY (+54% YoY) 1. Core operating profit is defined as IFRS operating profit excluding other income/expenses, etc. Q2 Highlights Marketplace initiatives to enhance the product’s core experience translated to results earlier than anticipated and were the primary contributing factor leading to an upward revision in forecasted revenue and core operating profit. Core Operating Profit Revenue 5 Financial Results Presentation Material
Page 6
Upward Revision of Forecast Results1 ■ We increased our consolidated results forecast in conjunction with revising the full-year guidance for Marketplace upward 200.0–210.0B JPY 28.0–32.0B JPY 210.0–220.0B JPY 32.0–36.0B JPY GMV growth rate Core operating profit +3–5% YoY 32.0–36.0B JPY +5–10% YoY 35.0–39.0B JPY Forecast at start of period Revised forecast Revenue Core operating profit Marketplace Fintech US Core operating profit 5.0–7.5B JPY 5.0–7.5B JPY (no change) GMV growth rate Positive YoY growth Guidance at start of period Revised guidance Core operating profit Break even Positive YoY growth (no change) Break even (no change) Consolidated Per Business 6 Financial Results Presentation Material
Page 7
Consolidated Results (Quarterly) Revenue Core Operating Profit2 (Billion JPY) Impact of a change in accounting methods such that a portion of point-related expenses is now deducted from revenue figures.1 (Impact in Q2 was 2.3B JPY, YoY growth before deductions: +19%) +15% YoY 1. In compliance with accounting standards, from FY2024.6 Q4, a portion of point-related expenses (attributed to advertising costs) is deducted from revenue figures. 2. Core operating profit is defined as IFRS operating profit excluding other income/expenses, etc. (Billion JPY) +54% YoY ■ Driven by strong Marketplace growth and the steady performance of our three core businesses, we achieved record-high revenue and core operating profit 1 7 Financial Results Presentation Material
Page 8
KPI Summary Marketplace Fintech US Core Operating Profit 329.1B JPY (+11% YoY) excluding Mercari Hallo 300.7B JPY (+41% YoY) 196M USD (+12% YoY) 10.6B JPY (+2.3B JPY YoY) 11.3B JPY excluding Mercari Hallo 0.6B JPY (+0.8B JPY YoY) 1. Aggregate transaction value after adjusting for cancellations (includes transaction value of Mercari NFT). Excludes Mercari Hallo. 2. Core operating profit is defined as IFRS operating profit excluding other income/expenses, etc. Starting in FY2026.6 Q1, the Group has discontinued adjustments based on internal transactions between Marketplace/Fintech and now discloses (unadjusted) core operating profit. GMV 1.8B JPY (+0.6B JPY YoY) Core Operating ProfitCore Operating Profit2 GMV1 1 Credit Balance 8 Financial Results Presentation Material
Page 9
Progress Toward Becoming AI-Native 1 1. The percentage of Group employees (excluding employees on leave, employees with confirmed resignations, and Kashima Antlers employees) who use any of the major AI tools (ChatGPT, Gemini, Claude Code, Cursor, LiteLLM, and Notion AI) as of January 31, 2026 2. The per-engineer development output in Mercari Group, calculated by dividing the amount of code changes between FY2025.6 Q2 and FY2026.6 Q2 by the number of engineers employed at the time 3. Calculated by dividing the cumulative number of users who use the internal AI agent for data analysis as of January 15, 2026, by the total number of employees Results Product innovation Organizational change ■ With the AI Task Force at the helm, we have broken down our operations and created new workflows powered by AI ■ We have decided to continue the AI Task Force in Q3 and beyond, concentrating on focus areas ■ We have broken down our operational processes to visualize where AI can be applied, and have established new foundational frameworks, including AI governance ■ 100%1 of employees now use AI-powered tools ■ Development output per engineer is 1.9 times what it was last year2 ■ We developed and published an internal AI agent that enables members to analyze data through natural language input without depending on specialist knowledge. Approximately half of all employees3 utilize this agent Create a service based on AI that ensures safety and security and ease of use, all while being intuitive for every user even without a learning curve Shift to AI-powered HR and knowledge management for faster and higher-quality decision-making ■ Revamp the user experience by developing an AI agent that helps users buy and sell ■ Improve the quality of our customer service through better and faster responses to user inquiries ■ Make development starting from AI the norm to improve plan accuracy and speed up the hypothesis validation cycle, ultimately facilitating faster decisions ■ Elevate the recognition of AI-Native professionals who leverage AI to create value, and improve the accuracy and fairness of hiring and evaluation operations ■ Create an AI-readable knowledge base through transferring and consolidating all company knowledge into one knowledge management tool From Q3 9 Financial Results Presentation Material
Page 10
FY2026.6 Business Objectives 10 Efforts to create a safe and secure transaction environment and dramatically improve the user experience have boosted the Marketplace growth rate, with a major contributor being the “Super Mercari Market Days” campaign2 in December. This campaign greatly improved GMV to +17% YoY for December, allowing Marketplace record its highest ever MAU at 24M users. As a result, Q2 GMV landed at +11% YoY, and we achieved double-digit growth for the first time since FY2024.6 Q2. Marketplace—Summary ■ While prioritizing enhancing the product’s core experience, also emphasize strengthening crossborder transactions to lay the foundation for accelerating GMV growth in FY2027.6 and beyond ■ Aim for GMV growth rate of +3–5% YoY and core operating profit1 of 32.0B–36.0B JPY The effects of enhancing the core product experience have contributed to business results earlier than expected, and we anticipate these effects to continue in Q3 and Q4 as well. For that reason, we have revised our guidance for the GMV growth rate and core operating profit upward. Core operating profit reached 10.6B JPY (+2.3B JPY YoY), maintaining strong profit growth despite investments to drive growth beyond FY2027.6, such as those to enhance the core product experience and strengthen marketing. 1. Core operating profit is defined as IFRS operating profit excluding other income/expenses, etc. 2. The Super Mercari Market Days campaign was held from November 27 to December 16, 2025, and featured initiatives such as discounts on shipping fees and chances to earn points for selling and buying during the campaign period 1 Financial Results Presentation Material 10
Page 11
Marketplace—Results (Quarterly) 1. Aggregate transaction value after adjusting for cancellations (includes transaction value of Mercari NFT); does not include Mercari Hallo 2. Quarterly average number of registered users who browsed our service (app or web) at least once during a given month, both domestically and internationally 3. The business results of Mercari Hallo are included starting in FY2025.6 Q4 (The Mercari Hallo service was discontinued on December 18, 2025) GMV1/MAU2 Revenue3 (Billion JPY) +11% YoY +4% YoY +13% YoY GMV (Billion JPY) MAU (Million users) 1 ■ Highest ever GMV/MAU/revenue Financial Results Presentation Material 11
Page 12
Marketplace—Results (Quarterly) (Billion JPY) Core operating profit Core operating margin +29% YoY +4 ppts YoY 1. Core operating profit is defined as IFRS operating profit excluding other income/expenses, etc. 2. Outsourcing expenses, depreciation, land rent, etc. 1 2 Core Operating Profit/Margin1 Profit and Cost Composition Excluding Mercari Hallo: Core operating profit: 11.3B JPY Core operating margin: 35% Financial Results Presentation Material 12
Page 13
1 Marketplace—Synergy of Enhancements to the Core Product Experience and Marketing Initiatives ■ Safety and security ● Updated our Marketplace Principles1 to better address items that could significantly impair the safety and security of the marketplace ● Established the Mercari Appraisal Center2, which resulted in a +225% YoY increase in the number of appraised items in Q2 and contributed to eliminating counterfeit items ● Partially rolled out chat support for customer service inquiries to facilitate speedy resolution ■ Product initiatives ● Improved the user/item match rate by enhancing personalization through leveraging AI on the home screen and in searches ● Addressed factors affecting user churn, such as by improving the success rate of re-login attempts, to increase retention rates ■ The ”Super Mercari Market Days” campaign recorded the highest number of participants ever, likely due to user familiarity with the campaign across the two previous versions ■ The synergy of enhancing the core product experience and marketing initiatives contributed to our highest ever GMV and MAU Enhancements to the Core Product Experience Marketing Initiatives 1. Established a policy to address items considered likely to significantly impair safety and security, including banning listings, at Fifth Advisory Board meetings held in July and September 2025 2.Established the Mercari Appraisal Center, which is operated by Mercari, in September 2025. Previously, we provided appraisal services in collaboration with external parties 1 Financial Results Presentation Material 13
Page 14
Capital and Business Collaboration with Suruga-ya ■ Through initiatives such as promoting online and offline integration, we announced a capital and business alliance with Suruga-ya to strengthen inventory in the high-demand Entertainment & Hobbies category for crossborder transactions and to accelerate global expansion. ■ This collaboration combines Suruga-ya’s product catalogue data, inventory, and domestic and international network of stores with Mercari’s technology to provide users with one of the most extensive Japan-based product selections available together with a safe and secure transaction environment. Initiatives Focused on Acquiring New Overseas Users Marketplace—Crossborder Transactions ■ To further grow our crossborder business, we implemented large-scale marketing initiatives in Taiwan and Hong Kong to commemorate “Singles' Day”1 on November 11, resulting in new overseas user acquisition and steady crossborder GMV growth. 1 1. Held annually on November 11, ”Singles’ Day” is one of the world’s largest physical retail and online sales events centered mainly on Chinese retailers. Financial Results Presentation Material 14
Page 15
Saw the growth of payments both inside and outside of Mercari, resulting in the steady growth of credit balance2 by 41% YoY and revenue of 15.5B JPY (+20% YoY). Promoted new initiatives such as starting to offer a BaaS feature3 to enhance the convenience of our products. Fintech—Summary 1. Core operating profit is defined as IFRS operating profit excluding other income/expenses, etc. 2. Merpay Deferred Payment (lump-sum payment, fixed-amount payment, or installment payment) and Smart Money credit balance at the end of the quarter (excludes debt converted into bankruptcy reorganization debt) 3. On December 18, 2025, Mercari launched a new service, in partnership with Minna Bank, Ltd., that allows users to withdraw their Mercari sales balance (or Merpay balance) quickly and without service fees. Core operating profit increased steadily to 1.8B JPY (YoY +0.6B JPY) as we actively invested mainly to acquire Mercard holders, making good progress toward our business objectives. Planning to continue active investments mainly in initiatives to acquire Mercard holders and to expand the range of Merpay users in Q3 and beyond; anticipating core operating profit to land close to the upper limit of our guidance. ■ Establish the foundation to become a product that is chosen by users for all payment/credit use cases ■ Aim for core operating profit1 of 5.0–7.5B JPY 1 FY2026.6 Business Objectives Financial Results Presentation Material 15
Page 16
■ The widespread adoption of Mercard1 and the release of Mercard Gold2 contributed to the total transaction value outside of Mercari increasing 2.9 times over the last three years. ■ Mercard awarded 1st place in three categories of the Oricon Customer Satisfaction® survey3 ■ Going forward, will aim for growth by expanding inside usage associated with the GMV growth of Marketplace and with Mercard as a driver of outside usage Increase in Transactions Outside of Mercari Leading Growth Fintech—Expanding Outside Usage of Credit Services Trends in transaction value outside Mercari 1. Launched on November 8, 2022 2. Launched on March 17, 2025 3. Ranked no. 1 in three categories of the Oricon Customer Satisfaction® Survey for credit cards with no yearly membership fees: “Ease of applying for card,” “Ease of use of website or app,” and “Range of payment methods” 1 2.9x increasein three years Launch of Mercard GoldLaunch of Mercard Financial Results Presentation Material 16
Page 17
+20% YoY Fintech—Results (Quarterly) Revenue +46% YoY Breakdown of Revenue (Billion JPY) (Billion JPY) Others2 Payment Credit3 1. Starting in FY2025.6 Q3, a portion of point-related expenses (attributed to advertising costs) mainly related to Mercard Gold is deducted from revenue figures 2. Includes revenue of Mercoin, Inc., bank withdrawal fees, expiration and seizure of sales balance, and Mercard reissuance fees, etc. 3. The annual effective interest rate for new credit of fixed-amount payment was revised to 18% effective January 1, 2025. The annual effective interest rate for new credit of installment payment (three installments or more) was also revised to 18% effective January 1, 2026. Impact of change where a portion of point-related expenses is now deducted from revenue1 (Impact in Q2 was 1.6B JPY; YoY revenue growth before deductions: +33%) 1 17 Financial Results Presentation Material
Page 18
Fintech—Results (Quarterly) (Billion JPY) Advertising Costs2 (Billion JPY) Core Operating Profit1 1. Core operating profit is defined as IFRS operating profit excluding other income/expenses, etc. Starting in FY2026.6 Q1, discontinued adjustments based on internal transactions between Marketplace and Fintech; accordingly, stopped disclosure of adjusted core operating profit. We will continue to disclose adjusted figures in our data sheet. 2. In addition to advertising expenses for such things as TV commercials and online advertising, the cost of free points, including regular point-back rewards, are also included in advertising costs 1 +51% YoY Financial Results Presentation Material 18
Page 19
+39% YoY Fintech—Expansion of Credit Balance Credit Balance2 and Collection Rates3 (Billion JPY) 1. Started non-recourse funding in December 2025. This realized the non-recourse liquidation of Merpay Smart Payments (deferred, fixed-amount, and installment payments [three or more installments]) receivables and of Smart Money receivables. However, installment payments (two installments) were not securitized. 2. Merpay Deferred Payments (lump-sum payment, fixed-amount payment, or installment payment) and Smart Money credit balance at the end of the quarter (excludes debt converted into bankruptcy reorganization debt). 3. Weighted average rate of the quarterly cumulative collections completed within the past 11 months compared to the amount of Merpay Deferred Payments (lump-sum payment, fixed-amount payment, and installment payment) and Smart Money billed in the past 11 months (excludes bankruptcy reorganization debt). 4. Installment payment (two-installment payment only) can be used without incurring fees, so credit balance is disclosed together with lump-sum payment, which does not generate interest income. However, installment payment of three or more installments does generate interest income, and therefore, credit balance is disclosed together with fixed-amount payment. +41% YoY Smart Money Lump-sum payment/installment payment (2 installments)4 Fixed-amount payment/installment payment (3 or more installments)4 11-month collection rates 1 ■ Newly launched the liquidation of Merpay Smart Money receivables, achieving non-recourse financing across all major credit services1 Financial Results Presentation Material 19
Page 20
US—Summary ■ Continue to break even while aiming for positive full-year GMV growth YoY by enhancing the product’s core experience and distinguishing ourselves from our competitors by using category-specific strategies In addition to lifting the base growth rate by enhancing the core experience, successful marketing initiatives such as a Green Friday promotion and category-specific coupons resulted in double-digit GMV growth of +12% YoY While facing tougher YoY comparisons from Q3 onwards due to the impact of fee model changes in FY2025.6, we plan to strategically accelerate investments for top-line growth and remain committed to achieving our full-year guidance Landed at a core operating profit1 of 600M JPY by maintaining investment discipline even as we conducted marketing activities such as CRM and promotions during the peak season FY2026.6 Business Objectives 1 1. Core operating profit is defined as IFRS operating profit excluding other income/expenses, etc. Financial Results Presentation Material 20
Page 21
US—Results (Quarterly) Revenue (Billion JPY)GMV (Million USD) MAU (Million users) -4% YoY +12% YoY GMV1/MAU2 Core Operating Profit3 (Billion JPY) 1. Aggregate transaction value after adjusting for cancellations 2. Quarterly average number of users who browsed our service (app or web) at least once during a given month 3. Core operating profit is defined as IFRS operating profit excluding other income/expenses, etc. 1 +11% YoY Financial Results Presentation Material 21
Page 22
US—Synergy Between Core Product Experience Enhancements and Marketing Initiatives Marketing InitiativesEnhancing the Core Product Experience ■ Category-specific CRM measures ● Distributed coupons for use in certain categories (e.g. fashion) to capture specific target needs ■ Holiday promotion ● Launched a major promotion for Green Friday to encourage secondhand shopping ■ Promotion of purchases ● Enabled sellers to offer bundle discounts ● Piloted an exchange program for clothing, bags, and shoes ■ UI/UX improvements ● Added a feature that makes recommendations about items sellers should promote ● Redesigned layouts to optimize item discovery and conversion ■ Trust and safety ● Enhanced identity verification and expanded fraud prevention measures 1 ■ Saw continued strength in Entertainment & Hobbies and improved momentum in fashion categories, a focus area Financial Results Presentation Material 22
Page 23
Objectives for H2 ● Taking into account the positive state of mainly the Marketplace business, we have revised the full-year financial results forecast upwards; aiming for revenue of 210B–220B JPY and core operating profit of 32.0B–36.0B JPY ● We will continue to strengthen growth investments toward FY2027.6 and beyond By Business Segment Consolidated ● As the results of enhancing the product’s core experience have contributed to GMV sooner than anticipated, we have revised our guidance upwards; will aim for a full-year GMV growth rate of +5–10% YoY and a core operating profit of 35.0B–39.0B JPY ● Continue growth investments centered on enhancing the core experience and promoting crossborder transactions in Q3 and beyond ● Continuing from Q2, strengthen investments mainly to acquire Mercard holders ● Anticipating core operating profit to land near the upper bound of our guidance ● Continue to break even and aim for positive GMV growth YoY Marketplace Fintech US 1 Financial Results Presentation Material 23
Page 24
24 Appendix
Page 25
1. Selected by internal voting among Independent Directors, the Lead Independent Director takes the role of leading the administration, etc. of the Independent Directors’ executive sessions and facilitating the enhancement of collaboration and building of relationships between Independent Directors. If necessary, this role also includes collecting the opinions of Independent Directors and holding discussions with the Chairperson of the Board of Directors, the Representative Executive Officer and CEO, and executive officers. Financial Results Presentation Material Board of Directors Structure 2 12 Directors Directors (4) Shintaro Yamada Representative Executive Officer and CEO Fumiaki Koizumi President / CEO of Kashima Antlers F.C. Co., Ltd. Takuya Kitagawa Shiho Konno Chair of the Audit Committee Makiko Shinoda Chair of the Compensation Committee Kumi FujisawaMayumi Umezawa Kikka Hanazawa Masahiro Kotosaka (new) Independent Directors (8) Sayaka Eda Executive Officer, Senior Vice President of Corporate, and CFO Mayumi Tochinoki ■ Appointing Independent Directors with a wealth of knowledge and experience in a variety of areas to realize a transparent and highly diverse organization ■ In September 2025, established the Lead Independent Director1 role to further enhance the independence and strengthen the highly effective supervision of the Board of Directors Kazuhiko Toyama Lead Independent DirectorChair of the Nominating Committee 25
Page 26
Financial Results Presentation Material Governance Structure (Independent Directors)2 • The Long-Term Credit Bank of Japan, Limited (currently SBI 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 Tokyo Itoi Shigesato Office (currently Hobonichi Co., Ltd.) • Director of YeLL Inc. (current position) • Professional knowledge and deep experience in I&D, sustainability, finance, etc. Makiko Shinoda Chair of the Compensation Committee • Boston Consulting Group • Representative Director and President of Corporate Direction Inc. • Senior Representative Director (COO) of Industrial Revitalization Corporation of Japan • Representative Director, CEO of Industrial Growth Platform, Inc. • Outside Director of Panasonic Corporation (currently Panasonic Holdings Corporation) • Outside Director of Tokyo Electric Power Company Holdings, Inc. • Chairman of Industrial Growth Platform, Inc. IGPI Group (current position) • Outside Director of Kuroda Precision Industries Ltd. (current position) • Representative Director, Chairman of Japan Platform of Industrial Transformation, Inc. (current position) • Extensive knowledge and deep insight in the areas of management and corporate governance • Deep experience in promoting innovation to solve social issues • Audit and Supervisory Board Member of Yahoo Japan Corporation (currently LY Corporation) • Auditor of Advanced Softmaterials Inc. (currently ASM Inc.) • Member of the Committee on Realization of a Gender-Equal Society at the Japan Federation of Bar Associations (current position) • Auditor of Japan Corporate Governance Network • Shiho Konno Habataki Law Office, Lawyer (current position) • Outside Director of Watami Co., Ltd. • Outside Director of Kakaku.com, Inc. • Outside Director of Alfresa Holdings Corporation • Outside Audit & Supervisory Board Member of Shinsei Bank, Limited (currently SBI Shinsei Bank, Limited) • Outside Director of Monex Group, Inc. • Outside Director of LIXIL Corporation (current position) • Outside Audit & Supervisory Board Member of Pegasus Tech Holdings, Inc. (current position) • Specialized expertise in the areas of corporate legal affairs and corporate governance • Extensive knowledge and profound insight in the areas of risk management and compliance Shiho Konno Chair of the Audit Committee Background Kazuhiko Toyama Lead Independent DirectorChair of the Nominating Committee Reasons for Selection as Independent Directors 26
Page 27
27 Financial Results Presentation Material 2 Mayumi Umezawa • Specialized expertise in the fields of finance and accounting • Profound insight into the fields of risk management, compliance, and corporate governance • Joined the Tokyo office of Tohmatsu & Co. (currently Deloitte Touche Tohmatsu LLC) • Umezawa Accountant Office (currently Mayumi Umezawa CPA Office) (current position) • Joined McDonald’s Company (Japan), Ltd. • Finance Manager of Disney Store Department at The Walt Disney Company (Japan) Ltd. • Director of Accounting Labo (currently Accounting Labo Co., Ltd.) (current position) • Outside Audit & Supervisory Outside Director (Audit and Supervisory Committee Member) of Retty Inc. • Supervisory Director of Japan Hotel REIT Investment Corporation • Outside Director of Wellness Communications Corporation • Outside Director (Audit and Supervisory Committee Member) of ROYAL HOLDINGS Co., Ltd. (current position) • General Manager, Itochu Fashion System Co., Ltd. New York office • Vice President of Marketing, Cygne Designs, Inc. • CEO of CYGNE INTERNATIONAL • Director of Strategic Planning, Link Theory Holdings Co., Ltd • CEO of VPL • President of Fashion Girls for Humanity (current position) • Co-founder of Yabbey • Director of Columbia University (current position) Kikka Hanazawa • Extensive experience in business management, primarily in the US, tackling social issues through businesses • Profound expertise in the field of sustainability Takuya Kitagawa • Director of Rakuten Data Marketing, Inc. • Co-founder and Director, Public Interest Well-being for Planet Earth Foundation (current position) • Managing Executive Officer, Chief Data Officer of Technology Division of Rakuten, Inc. • President and Director of QuEra Computing (current position) • Representative Director, President of QuEra Computing Japan, Inc. (current position) • Expert knowledge in technology areas such as AI and data science • Extensive experience and profound insight in AI and data usage for business creation and social issue resolution Background Governance Structure (Independent Directors) Reasons for Selection as Independent Directors
Page 28
28 Financial Results Presentation Material 2 • Joined McKinsey & Company, Inc. • Associate Professor of College of Business Administration, Ritsumeikan University • Outside Director of Appirits Inc. • External Audit & Supervisory Board Member of Uzabase, Inc. • Outside Corporate Auditor of RAKSUL INC. • External Director of Euglena Co., Ltd. (current position) • External Director (Audit & Supervisory Committee member) of Uzabase, Inc. • Outside Director (Audit & Supervisory Committee Member) of RAKSUL INC. (current position) • Outside Director (Audit & Supervisory Committee Member) of SRE Holdings Corporation (current position) • Professor of Faculty of Policy Management, Keio University (current position) • Extensive experience in corporate management and expertise in business strategy • Profound expertise and insight into the fields of risk management, compliance, and corporate governance Masahiro Kotosaka (new) • Joined KOKUSAI Investments Trust Management Co., Ltd. • Joined Schroder Investment Management (Japan) Limited • Representative Director of IFIS JAPAN LTD. • Vice Chair of the Investment Trusts Association, Japan • Governor of the Japan Securities Dealers Association (current position) • Outside Director of The Shizuoka Bank, Ltd. • Representative Director of SophiaBank • Outside Director of the Board of Toyota Tsusho Corporation • Outside Director, Member of the Board of Creek & River Co., Ltd. • Outside Director of CellSource Co., Ltd. • Outside Director of Net Protections Holdings, Inc. • Chairperson of Institute for International Socio-Economic Studies (current position) • Outside Director of Shizuoka Financial Group, Inc. (current position) • Outside Director of Toyota Motor Corporation (current position) Kumi Fujisawa • Extensive experience in promoting innovation to address social issues • Extensive expertise and profound insight in global business, corporate governance, and other fields Background Reasons for Selection as Independent Directors Governance Structure (Independent Directors)
Page 29
Financial Results Presentation Material Business Segments2 Japan Business Marketplace US Other Fintech Adjustments Other Bets 1. Renamed Japan Region to Japan Business in FY2026.6 Q1 2. Service discontinued on December 18, 2025 ■ Starting FY2026.6, we moved MVNO from Marketplace to a new segment under Japan Business1 called “Other Bets,” established based on nature of profitability C2C (Mercari) Crossborder B2C (Mercari Shops) On-demand work2 (Mercari Hallo) Payment (Merpay) Credit (Merpay) Crypto (Mercoin) C2C (Mercari) Kashima Antlers India Center of Excellence Company-wide expenses Consolidated adjustments MVNO (Mercari Mobile) 29
Page 30
Financial Results Presentation Material 2 Approach to Capital Allocation (Excerpt from FY2025.6 Q4 Presentation Materials) ■ Alongside our transition to a phase of profit growth, we expect retained earnings to become positive in FY2026.6 if progress goes according to our plans Internal Reserve Levels ■ Gradually build up equity capital with the expansion of Fintech and other businesses to ensure stable financing capabilities ■ Boost financing efficiency by enhancing external ratings, etc. and prioritize debt financing for the funds necessary for the credit business Capital Allocation Priorities ■ For cash other than internal reserves, compare the following options and prioritize carrying out capital allocation that will contribute to long-term profit growth 1. Growth investment in existing businesses and new businesses (including M&As) 2. Investment in Mercari, centered around stock buybacks ■ For shareholder returns, prioritize stock buybacks over dividends from the perspective of maintaining flexibility to make quick decisions 30
Page 31
Financial Results Presentation Material Increase to Issuer Ratings2 Issuer Rating(Previous) Rating(as of Dec. 2025) Rating Outlook Mercari BBB- BBB Stable Merpay BBB- BBB Stable ■ Acquired a rating of BBB (Stable) for both Mercari and Merpay from Rating and Investment Information (R&I) ‐ This is an increase of one rank from BBB-, which we acquired in FY2025.6 ■ Rationale ‐ Mercari: Mercari has enhanced its profitability by leveraging its user base in Japan to strengthen the revenue base of its financial businesses and has improved its financial balance ‐ Merpay: In addition to functioning as a method for users to use the sales balance they gain on the Mercari marketplace app, Merpay significantly contributes to promoting transactions within Mercari; given the integrity with the rest of Mercari Group, Merpay is worthy of the same rating as Mercari 31
Page 32
Financial Results Presentation Material 2 FY2027.6—Mid-Term Policy (Excerpt from FY2025.6 Q4 Presentation Materials) 1. CAGR from FY2024.6 2. Following the transition to IFRS as of FY2024.6, disclosure is conducted based on IFRS beginning with the business results for FY2023.6. 3. In the event an opportunity arises for significant growth that will contribute to the future growth of the company, a temporary loss may be incurred resulting from making a flexible investment, but the company will explain the investment if this occurs. Prioritize high top-line growth Consciously balance growth and profitability Aim essentially for top-line growth associated with increased profitability Revenue: Double-digit CAGR growth1 Core operating profit: CAGR of 25% or higher (Billion JPY) 35.7 51.6 76.2 106.1 147.0 172.0 187.4 192.6 27.5 18.816.7 5.1 -4.4 -12.1 -19.3 -3.7 32
Page 33
Financial Results Presentation Material 2 FY2027.6—Mid-Term Objectives of Main Businesses (Updated) (Excerpt from FY2025.6 Q4 Presentation Materials) Marketplace Fintech US 1. The underlined items indicate additions/modifications to the mid-term objectives announced in FY2024.6 Q4 2. Removed the items regarding the on-demand work business in accordance with the discontinuation of the Mercari Hallo service Group-wide Mid-Term Objectives ■ Work with external partners to realize an ecosystem ■ Promote global expansion by growing our US business and strengthening crossborder transactions ■ Create a borderless organization where talent from all over the world can thrive and strengthen I&D ■ Create an AI-Native company Objectives Objectives Objectives Focus Areas Focus Areas Focus Areas ■ In addition to the stable growth of C2C, lead the market with high growth of crossborder transactions and B2C ■ Expand Group synergy ■ Lift core operating profit to over 10B JPY and establish Fintech as the second pillar of Mercari Group ■ Establish an independent position by distinguishing our product clearly ■ Realize sustainable growth while essentially continuing to break even - Strengthen the core experience of the product - Redesign UI/UX using AI/LLMs - Crossborder transactions/B2C - Ads - Expand payments and credit balance focused on the loyalty program - Maintain and enhance AI credit accuracy and collection rates - Expand usage situations and types of cryptoassets - Enhance the product’s core experience - Use AI to innovate our UI/UX - Differentiate Mercari from our competitors with category-specific strategies 33
Page 34
Financial Results Presentation Material 2 FY2026.6—Business Objectives (Excerpt from FY2025.6 Q4 Presentation Materials) Policy/Major Initiatives ● Make preparations for FY2027.6 ● Essentially aim for top-line growth that will lead to increased profits ● Expand businesses centered around Group synergy Consolidated Guidance Core operating profit1 28.0–32.0B JPY Revenue 200.0–210.0B JPY GMV growth rate: Approx. +3–5% Core operating profit1: 32.0–36.0B JPY Guidance Policy/Major Initiatives - Enhance the product’s core experience - Promote direct crossborder transactions2 - Strengthen business listings in B2C Core operating profit1: 5.0–7.5B JPY Guidance Policy/Major Initiatives Break even3 Positive full-year GMV growth YoY Guidance Policy/Major Initiatives Marketplace Fintech US - Acquire Mercard holders - Make Mercard users’ main card - Differentiate Mercari from our competitors with category-specific strategies - Enhance the product’s core experience 1. Core operating profit is defined as IFRS operating profit excluding other income/expenses, etc. 2. People overseas register as Mercari users, which allows them to purchase items in their local language and with prices shown in the local currency, while sales and payments are handled through a third-party company, creating a smooth user experience 3. Envisioning break-even based on IFRS core operating profit 34
Page 35
Financial Results Presentation Material ■ We will continue to leverage various methods of financing and appropriately control our balance sheet to maintain a sound financial foundation Cash on hand and in banks 159.0B JPY Trade and other receivables 309.6B JPY Deposits received 230.8B JPY Other: 68.5B JPY Total equity 111.2B JPY CB + borrowings (excluding funds financed by liquidating receivables) 55.9B JPY Other: 46.5B JPY Total assets at end of FY2026.6 Q2: 615.1B JPY Guarantee deposits 42.8B JPY Borrowings from liquidating receivables 170.6B JPY Of borrowings, non-recourse2 financing 146.6B JPY Of receivables, credit receivable balance 300.7B JPY 1. Within non-current assets, under other financial assets, 30.0B JPY corresponds to government bonds pledged as collateral, and 5.0B JPY corresponds to segregated assets in trust 2. A method of financing in which the amount collected from the credit is the only source of repayment, and the repayment obligation is not borne by Mercari Primarily deposits of funds and investment securities related to user funds With regard to preservation of user funds, we act in accordance with laws regarding funds transfer services, etc., and in addition to deposits of funds, we pledged government bonds as collateral in FY2025.6 Q4 and carried out asset segregation in FY2026.6 Q2. We have also concluded a guarantee contract for security deposits for providing funds transfer services with financial institutions. Credit balance from Merpay’s credit services Mainly credit from transactions within Mercari, items under “Trade accounts receivable”, items under “Allowance for doubtful accounts”, etc. Funds financed by liquidating receivables Liquidated lump-sum payment, fixed-amount payment, and installment payment (three installments or more) receivables for Merpay Deferred Payments, as well as Merpay Smart Money receivables. Starting FY2023.6, we have carried out non-recourse2 financing for a portion of liquidated receivables. Convertible bonds and long-term borrowings Long-term borrowings, including convertible bonds but excluding funds financed by liquidating receivables In September 2024, purchased approximately 21B JPY worth of the total 50B JPY euro-yen denominated convertible bonds issued in July 2021 (25B JPY maturing in 2026, 25B JPY maturing in 2028) Mainly Mercari sales balance (including US) and wallet balance from users adding funds from banks Government bonds pledged as collateral 30.0B JPY 2 Segregated assets in trust 5.0B JPY Major Itemization of Consolidated BS 35
Page 36
Financial Results Presentation Material As of December 31, 2025 Fintech—Liquidation of Receivables Receivable credit ■ Began liquidation of receivables for Merpay Smart Money, achieving non-recourse financing for all major credit services ■ We will continue to expand and diversify financing in sync with the growth of our credit services centered on non-recourse receivable liquidation Financing carried out up within range of the maximum amount Carrying out non-recourse financing with ratings; simultaneously carrying out supplemental financing within range of the maximum amount until we reach a certain level of credit balance Other funds used Liquidation of lump-sum payment receivables Max. 50.0B JPY Liquidation of fixed-amount payment/ installment payment (three installments or more) receivables 97.4B JPY (External rating acquired) + Max. 34.0B JPY ■ Began liquidation of receivables for Merpay Smart Money ■ Secured a method of financing installment payments, which are continuing to grow, by including installment payment (three installments or more) in eligible receivables for liquidation ■ Diversified risks through financing with different arrangers/investors for each service 2 Liquidation of Smart Money receivables Max. 50.0B JPY (External rating acquired) Started Dec. 2025 Financing carried out up within range of the maximum amount Q2 Topics 36
Page 37
Financial Results Presentation Material Marketplace—Cost Composition (Quarterly) 1. Outsourcing expenses, depreciation, land rent etc. １ (Billion JPY) 2 37
Page 38
Financial Results Presentation Material Kashima Antlers—2025 Meiji Yasuda J1 League Champions2 ■ In the 2025 Meiji Yasuda J1 League, Kashima Antlers achieved their 9th league championship and 21st title ■ We are continuing our commitment to the Antlers’ hometown, the Rokko region of Ibaraki, with actions such as giving Kashima Stadium the new official nickname “Mercari Stadium” in June 2025 ■ Going forward, we will aim to create further synergy by leveraging offline touchpoints with stadium crowds to enhance emotional connections through the energy at live games, as well as Mercari Group’s brand power, while continuing to focus on strengthening the club 38
Page 39
Financial Results Presentation Material Disclaimer This material is compiled for the purpose of providing information only, and is not intended to solicit readers to purchase securities in Mercari. The forward-looking statements, including the financial results forecast, contained in these materials have been prepared based on information gathered at the time of its preparation and certain assumptions deemed reasonable by Mercari and are not in any way intended as a commitment to future implementation. Actual financial results may differ from our future outlook due to various factors such as changes in economic conditions, changes in the competitive landscape, and trends in the services we offer. 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 FY2026.6 Q3 financial results are scheduled to be released at 15:30 or later on May 11, 2026. 39