1

PRESENTATIONMATERIALJAN.2020–MAR.2020

Table of Contents

Financial Highlights

Status of Businesses

- Mercari JP

- Merpay

- Mercari US

Summary

Initiatives as a Public Platform for Society

Appendix

2

3

Summary

FY2020.6 Business Objectives Disclosed at Earnings Results Meeting for FY2019.6 Q4 Consolidated: Establish the 3 pillars of Mercari JP, Merpay, and Mercari US in this crucial year to set the foundation to achieve the mission with continuous investment for further growth

Mercari JP: Grow further by expanding listing Merpay: Obtain an unchallenged position in the cashless market Mercari US: Achieve monthly GMV of 100 million USD

FY2020.6 Business Objectives and Q3 Summary

Progress and Highlights in Q3　Consolidated: Operating loss peaked out for now and decreased due to growth acceleration in Mercari JP and positive impact of business alliances　Mercari JP: Accelerated GMV growth rate and improved balance between listers and buyers　Merpay: Achieved steady progress one year after launch and prepared to enhance monetization with the cost optimization effects of business alliances　　Mercari US: Achieved growth with increased marketing investment starting at the end of December and further expedited growth

4

Net Sales

20.3(YoY +49.8%)

1. Aggregated transaction value after cancellation 　 2. CARTUNE included 　 3. Aggregated number of unique users registered for Merpay Electronic Money, or used either QR Code Payments, Online Payments, or Merpay Smart Payments (formerly Merpay Deferred Payments) as of January 2020 　 4. Merchants scheduled to implement Merpay included 　5. MAU as of March 2020 excluding Web

GMV1, 2

YoY +23%Adjusted Operating Margin

30% (YoY +6ppts)

Number of Users3

6+ millionNumber of Merchants4

GMV1

YoY +55%MAU5

3.4+ million (YoY +77%)

Mercari JP Merpay

1.7 million

Mercari US

Consolidated

FY2020.6 Q3 (January–March) KPI Summary

Operating Income

-6.3(YoY -4.0 billion JPY)

5

Impact of COVID-19—Summary

調整後営業利益率

Consolidated Mercari JP

Merpay Mercari US

●●

●

●

●

●

●

●

●

6

April 2020Week 3

Impact of COVID-19—Category ShiftObserved shift in category breakdown in GMV terms from outdoor to indoor categories due to lifestyle changes with the global spread of COVID-19

　　

Mercari JP Mercari US

March2020

Saw increase in buying demands in Books and Games (Entertainment and Hobbies), Handmade, and Electronics for people to enjoy staying home after the state of emergency declaration in early April, and large increase in listings in Ladies, Books, and Games

Saw gradual growth in Electronics and Toys after lockdown began in mid-March, further diversifying categories and users

April 2020Week 3

March 2020Week 1

7

8

Financial Highlights

Net Sales(Billion JPY)

1. Under the former user policy, costs related to discount coupons were included as part of promotion costs. 　Since we changed the user policy, costs related to discount coupons are deducted from net sales after January 2018.2. Numbers are rounded down to the billion, and coupon amount for FY2020.6 Q1–Q3 is indicated as zero.

Operating IncomeYoY +49.8%

(Billion JPY)

Change in accounting method1

2

Financial Highlights—(Consolidated) Q3 Net Sales and Operating Income

-7.0 -6.8-6.1

18.4

20.3

-6.3

9

● Achieved record-high quarterly GMV again in Q3 with continued high growth rate● Grew GMV YoY growth rate by optimizing balance between listing and buying● See good signs of achieving full-year GMV YoY growth rate target of +mid-20% range, yet will closely

monitor external factors going forward

YoY+27.5%

YoY+23.4%

10

(Billion JPY)

(Million users)

Mercari JP

YoY+26.7%

YoY+6ppts

11

YoY+57.6%

Adjusted Operating Income/Margin3Net Sales

1. Under the former user policy, costs related to discount coupons were included as part of promotion costs.　 Since we changed the user policy, costs related to discount coupons are deducted from net sales after January 2018.2. Numbers are rounded down to the billion, and coupon amount for FY2020.6 Q1–Q3 is indicated as zero.3. Graph reflects retroactive adjustment made from FY2019.6 Q3 to the amount before recording internal transactions between Mercari and 　Merpay as a result of transferring settlement to Merpay (outsourced payment processing fees)

(Billion JPY) (Billion JPY)

Change in accounting method1

Mercari JP—Q3 Net Sales and Adjusted Operating Income● Achieved record-high net sales and adjusted operating income again in Q3● Expect full year adjusted operating margin to be approximately 26-28% and will closely monitor

external factors going forward

2

YoY+27.5%

YoY+22.5%

12

YoY+53.9%

Mercari JP—Q3 Aggregated Key Financial Indicators

YoY+23.4%

(Billion JPY) (Billion JPY)

Net Sales/Adjusted Operating Income1GMV/MAU

1. Graph reflects retroactive adjustment made from FY2019.6 Q3 to the amount before recording internal transactions between Mercari and 　Merpay as a result of transferring settlement to Merpay (outsourced payment processing fees)

131. Outsourcing expenses, rent, and taxes and dues

Mercari JP—Cost Structure against Net Sales

1

● Achieved adjusted operating margin of 30% with cost-effective promotions and restricted hiring

FY2020.6 Full-Year Earnings Forecast● Consolidated—Net sales: 73–75 billion JPY, Operating loss: ▲25–▲23 billion JPY● Mercari JP —Net sales: 57–58 billion JPY (+23–25% YoY)

　 Adjusted operating margin: 26–28%Q4 Earnings Forecast Consolidated: Upwards trend, potentially instantaneously, for JP and US due to the increased demand for e-commerce, possible headwind for Merpay (centered around offline payments), initiatives to cut promotion costs and SG&A expenses, and decrease in consolidated OP loss after peaking outMercari JP: GMV growth rate to steadily recover (+25–30%) and external factors. Adjusted OPM to be approximately 30% with further cost reduction.Merpay: Decreased loss in the near term with cost reduction while gradually shifting from user acquisition to credit business in order to enhance monetizationMercari US: GMV growth rate acceleration due to investments made in Q3. With rise in stay-at-home spending demand, changes seen for other e-commerce players, and government stimulus package, progressing toward the monthly GMV target of 100 million USD. Decreased loss vs. Q3 with uncertainty of COVID-19 impact.

FY2020.6 Full-Year and Q4 Earnings Forecast

14

15

Status of Businesses

16

Mercari JP— Optimizing Balance between Listing and Buying

● Saw favorable results from initiatives to enhance listing continuing from Q2 and further optimized the balance between listing and buying

● Further accelerated growth of number of new listers

Lister/Buyer Ratio New Lister IndexBenchmark against FY2018 Q4

Rolled out initiatives for

buyers

Strengthened initiatives for

listers

17

Mercari JP—Business Alliance with DOCOMO

● Launched d POINT point-back campaign for users using d Barai on Mercari● Plan to continue well-received point-back campaign in Q4 also to further boost GMV

● Increased GMV by increasing the number of new users

● Optimized promotion costs

● Doubled the number of users using d Barai for the first time

● Allowed users to utilize unused d POINTs

×

Aim to become a payment service used in people’s everyday life by expanding users and merchants

Upfront InvestmentPhase

1

18

Phase

2Synergy with Mercari

● Build more trust with accumulated transaction data and provide added value to individuals and organizations

● Launch fixed-amount payment (installment payment) service

Profitable MerpayPhase

3

Phases to focus in FY2020.6

● Expand listing on Mercari byusing Merpay

● Enhance Merpay SmartPayments

Merpay—Business Objectives

Shift gears to enhance monetization in FY2021.6 and beyond

Merpay—One Year After Launch Becoming a Payment Service Used in People’s Everyday Life

1. Verified users: Merpay users who have completed identity verification through eKYC or by connecting their bank account

● Launched service in February 2019, achieved more than 20 million payments per month made outside of Mercari as of March 2020, and exceeded 5 million users (aggregated) who have undergone identity verification1

19

Number of payments per

month

20 million

Aggregated number of

verified users

5 million

20

Jan–Mar 2020

New user acquisition initiatives

Initiatives to make using Merpay a habit

Oct–Dec 2019Jul–Sep 2019Apr–May 2019

50% Off Golden Week

Campaign

Recommend Merpay

Merpay Smart Payments

● Merpay Fever● Merpay Sunday

Merpay—Main Campaign Initiatives in the Past Year● Launched campaigns strategically; launched user promotion campaign after new user

acquisition campaign

● 50% Off Golden Week Campaign: Point-back campaign to acquire new Merpay users● Recommend Merpay: Referral promotion to acquire new Merpay users● Merpay Smart Payments: Point-back campaign to promote Merpay Smart Payments (deferred payment) and buying on Mercari● Merpay Fever: Point-back campaign to promote buying using Merpay● Merpay Sunday: Point-back campaign to promote buying using Merpay

● Achieved accelerated growth in GMV and MAU by strengthening marketing efforts ● Recorded the highest GMV and MAU ever

Mercari US

MAU (in Mar 2020)

3.4M (YoY +74%)

YoY+55%160

21

● Focused especially on enhancing brand awareness ● Aided awareness1 of Mercari, which increased approximately 1.8 times from Jan 2019

to Feb 2020, catching up to some competitors● Achieved high growth in new registered users and new listers, contributing to GMV

growth

Mercari US—Marketing Initiatives

Awareness (%)1 New Registered Users/New Listers

1. Based on a survey conducted by Mercari to approximately 1,000 smartphone users between ages 18 and 54 in January 2019 and February 2020. Survey assessed awareness of 11 companies providing online marketplaces for users to buy and sell used items, including The RealReal, Mercari, Poshmark, and LetGo. Respondents were allowed to select multiple choices.

Approx. 2X

Approx.1.8X

Approx. 1.5X

Right: Feb 2020Left: Jan 2019

YoY growth rate● New Registered Users● New Listers

+97%

+49%

22

Authenticity

Price Suggestion

Media/User Acquisition Boost

SEO

User Acquisition/CRM RevampInstant Pay

Shipping InovationInventory Recognition and Management

Shipping Innovation

$100M GMV/month

Holistic Marketing

Product/ Service

Awareness

Making Selling Easy

Price Confidence

End of Q3

Mercari US—Roadmap

23

Mercari US—Product Update

24

Authenticity

- Attained higher AOV (approx. over 500 USD) - Saw that authenticated designer items are

typically twice as likely to sell1- Expanded to designer shoes category

Digital Goods

- Enabled users to buy and sell digital gaming assets

- Established a trustworthy marketplace to buy and sell digital items

1. Selling performance based on sell-through rate of authenticated items compared to non-authenticated items since November 18, 2019 as of March 4, 2020.

25

Initiatives as a Public Platform

for Society

Recent Initiatives as a Public Platform for Society

26

Stay Home & Share Smiles:Mercari to donate 10 JPY for every single listing1, 2, 3, 4

1. For one month from April 27 to May 27, 2020.2. A committee with external expert(s) will be established to decide recipient(s) of donations.3. Recipient(s) and total donation amount will be announced on our corporate website.4. Maximum donation amount is 50 million JPY.

Online ESG educational programs: provide learning opportunities to children who cannot go to school

Mercari JP Mercari US

Donate 50% of proceeds from selling fees on all handmade masks1, 2

1. Until May 31, 20202. The donation will be made to First Responders Children’s Foundation, which provides support to first responders and their families enduring hardships during the coronavirus pandemic.

Initiatives to Improve Governance—Establishing Nomination and Remuneration Committee

27

● Established Nomination and Remuneration Committee as a non-mandatory advisory committee of Mercari’s Board of Directors on April 30, 2020

● Independent board directors make up a majority of committee members● Strengthen fairness, transparency, and objectiveness of decisions related to

nomination and remuneration of executives, and others

Board of Directors

Nomination and

Remuneration Committee(independent

outside directors as a majority)

Appointment and dismissalof executives

Remuneration system, etc.

Advice

Proposals

28

29

1. Operating income + Depreciation and Goodwill amortization

1

Consolidated P&L—Quarterly

30

1. A part of liabilities to users, which has been recorded as Other payables, is recorded as Deposits received retroactively for FY2019.6 Q1 in order to better reflect the actual business activities.2. Includes long-term borrowings planned to be repaid within 1 year.

1

1

2

Consolidated BS

1

31

1. Excludes internal transactions with Merpay (outsourced payment processing fees)

Mercari JP P&L

32

Number of Employees

● Continuing to hire highly specialized engineers in FY2020.6● Slight increase in Q3 due to the merger with Origami

Talent Supporting Mercari’s High Growth

33

Men’s

Electronics

Cosmetics and Beauty

Sports and Leisure

● Entertainment and Hobbies category contributes most to GMV

FY2020.6Q3

GMV Category Breakdown

FY2019.6Q3

Women’s

Entertainment and Hobbies

Men’s

Electronics

Cosmetics and Beauty

Sports and Leisure

Babies and Children

Others Others

Babies and Children

Entertainment and Hobbies

Women’s

Mercari JP—Category Breakdown

34

1. Only a breakdown of cost of sales and sales, general, and administrative expenses, and does not include non-operating and extraordinary profit and loss2. Outsourcing expenses, rent, taxes and dues3. Includes engineers’ personnel expenses

2

Cost Structure Breakdown1

(Billion JPY)

Mercari JP—Cost Structure

3

Promotion Costs/Net Sales

35% 23% 22%

Merpay—Generating Synergy between Mercari and Merpay● Monthly GMV of deferred payment users on Merpay higher than that of non-users by slightly

over 10%● New Mercari users coming from Merpay contribute to increase in GMV

Increased number of

listers

Increased willingness to buy & sell on Mercari

IncreasedGMVIncreased

number of buyers

Increased usage of deferred

payments and credit line

Increased transaction volume on Merpay

Increased balance on Merpay

35

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 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 FY2020.6 Q4 financial results are scheduled to be released at 15:00 or later on August 6, 2020.