MonotaRO Co., Ltd.Masaya SuzukiPresident & CEO

March 2, 2016

Contents1:  About US2:  Our Business‐1 Domestic Direct Marketing Business     ‐2 Procurement Management Solution Business

for Large Accounts‐3 Oversea Business

3:  Our Future

1‐1: About US

Founded in 2000Listed on TSE Mothers in 2006Listed on TSE 1st section in 2009

Locates in Amagasaki, Hyogo

We areselling  MRO products to business users through Internet

1‐2: About US /MRO Products-Safety

-Packing, Material handling, Cleaning

-Cutting Tools, Abrasives ,Product Processing Tools

-Hand tools, Power tools, Pneumatics

-Chemicals, Adhesive, Welding

-FA, Mechanical Parts

-Fasteners

-Electrical

-Auto/Cargo Truck Maintenance & Parts

-Motor Bike/Bicycle Maintenance & Parts

-Construction, Painting/Interior

-Air conditioning/Electric Facilities, Piping, Plumbing

-Laboratory

-Office supplies

-Agricultural equipment & supplies

-Kitchen equipment & supplies

-Medical & Nursing equipment & supplies

1‐3: About US/Our Solution for the Current Inefficient Market 

Fragmented demand

More cost for process than products

Scale & Aggregationthrough the Internet

Efficient & Simple Purchase Platform

1‐4: About US / Our Differentiation

Most Efficient MRO procurement platform

Big dataCustomerProductTraffic

TechnologySearch EngineData mining

Domestic Direct Marketing Business

Procurement Management Solution for Large Accounts

Overseas Business

FY2015 Result FY2016 PLAN

（Million Yen） Amount Ratio to Sales Amount Ratio to

Sales YonY

Sales 57,563 71,076 +23.5%GrossProfit 17,327 30.1% 21,746 30.6% +25.5%

SGA Exp. 10,239 17.8% 12,446 17.5% +21.5%OperatingIncome 7,087 12.3% 9,300 13.1% +31.2%CurrentIncome 7,120 12.4% 9,295 13.1% +30.5%NetIncome 4,439 7.7% 6,051 8.5% +36.3%

1‐5: About US /2015 Result & 2016 Plan

Contents1:  About US2:  Our Business‐1 Domestic Direct Marketing Business     ‐2 Procurement Management Solution Business

for Large Accounts‐3 Oversea Business

3:  Our Future

2‐1‐1:Domestic Direct Marketing-Safety

-Packing, Material handling, Cleaning

-Cutting Tools, Abrasives ,Product Processing Tools

-Hand tools, Power tools, Pneumatics

-Chemicals, Adhesive, Welding

-FA, Mechanical Parts

-Fasteners

-Electrical

-Auto/Cargo Truck Maintenance & Parts

-Motor Bike/Bicycle Maintenance & Parts

-Construction, Painting/Interior

-Air conditioning/Electric Facilities, Piping, Plumbing

-Laboratory

-Office supplies

-Agricultural equipment & supplies

-Kitchen equipment & supplies

-Medical & Nursing equipment & supplies

0

50

100

150

200

250

300

350

0

2,000

4,000

6,000

8,000

10,000

12,000

Product lineup

No. of inventory sku

Product lineup & Inventory2‐1‐2:Domestic Direct Marketing

Product Lineup/Thousand skus Inventory/Thousand skus

2‐1‐3:Domestic Direct MarketingEfficient New Customer Acquisition

9 million products

20 million keywords for SEM

Potential customers’ search

Name recognition

Our Service

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100

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450

No. of Customers acquired in a year2‐1‐4:Domestic Direct Marketing

Thousand accounts 

2‐1‐5:Domestic Direct MarketingOur Growth Cycle

More Products

More Customers

More TrafficMore Order

Scale↑⇒Convenience↑

Leverage Big Data to search next demand

2‐1‐6:Domestic Direct Marketing

Sophisticated Search Engine

Well targeted promotion

1.8 million customers

9 million products

250,000 SKU Inventory

Private Label Brand products

68,639

0

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30,000

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80,000

Sales

No.of Registered customers

2‐1‐7:Domestic Direct Marketing

No. of customer/Thousand accounts Sales/Million Yen

Continuous Growth of Customer Base and Sales

1

1.1

1.2

1.3

1.4

1.5

1.6

1.7

1.8

1.9

2008 2009 2010 2011 2012 2013 2014 2015

Customers registered in 2008Customers registered in 2009Customers registered in 2010Customers registered in 2011Customers registered in 2012Customers registered in 2013Customers registered in 2014Customers registered in 2015

Registered Customers’ Sales Growth History2‐1‐8:Domestic Direct Marketing

31.0%

17.1%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

GP rate SG&A cost rate

Profitability2‐1‐9:Domestic Direct Marketing

Contents1:  About US2:  Our Business‐1 Domestic Direct Marketing Business     ‐2 Procurement Management Solution Business

for Large Accounts‐3 Oversea Business

3:  Our Future

2‐2‐1:Procurement Management Solution for Large Accounts

0

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40

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120

Easy to control Difficult to control

Only MonotaRO covers this wide range 

We have  PRODUCTSPurchase volum

e 

Cost saving simulation

2‐2‐2:Procurement Management Solution for Large Accounts

We save customers’ purchase process cost.

Example:  No. of purchase orders/month : 1,000Hourly wage of purchase persons : Yen2,500

Before After SaveTime(hour) 2,793 300 ‐2,493

Cost(yen) 6,984,167 750,000 ‐6,234,167

0

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0

1,000

2,000

3,000

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5,000

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2010 2011 2012 2013 2014 2015 2016(P)

SalesNo.of companies

2‐2‐3:Procurement Management Solution for Large Accounts

Sales /million Yen  No. of  companies 

Contents1:  About US2:  Our Business‐1 Domestic Direct Marketing Business     ‐2 Procurement Management Solution Business

for Large Accounts‐3 Oversea Business

3:  Our Future

2‐3‐1:Overseas Business

We know Website managementEfficient new customer acquisition

Product Lineup developmentSupply chain development

Own Local business business

Advisory business Export business

Navimro(South Korean subsidiary) Sales

0

5,000

10,000

15,000

20,000

25,000

30,000

2013 2014 2015 2016(P)

Million won

2‐3‐2:Overseas Business

Contents1:  About US2:  Our Business‐1 Domestic Direct Marketing Business     ‐2 Procurement Management Solution Business

for Large Accounts‐3 Oversea Business

3:  Our Future

Oversea Business

57.5 B yen 100～150 B yen

3‐1: Our Future

DomesticDirect Marketing Business

ProcurementManagement Solution Business

2015 2018〜2020

We value  

3‐2: Our Future

“Respect each other”

“Constant small trial for Innovation”

“Innovation based on  the results  of the trial”

Thank you. 

Contact Us

E-mail：pr@monotaro.comTEL: 81-6-4869-7190

Cautionary Statement Concerning Forward-looking StatementsThis presentation may include forward-looking statements relating to our future plans, forecasts, objectives, expectations and intentions. Actual results may differ materially, for a wide range of possible reasons. In light of the many risks and uncertainties, you are advised not to put undue reliance on these statements.

IR information: www.monotaro.com/main/ir/english/