FY2017Financial Results Briefing

Koji NakamuraVice President and Group CFO

Annual Financial Results

October 2016～September 2017

1

Highlights for FY2017

➢ Exceeded last year’s numbers and this year’s forecast in all categories

➢ Recorded all-time highs in sales and profits

➢ Cross Border Business Operating Income increased 158.6%

3

Results YoY Actual/Forecast

GMV 42.37 Bil JPY +2.1% +14.5%

Net Sales 20.71 Bil JPY +7.7% +3.6%Operating Income 1.50 Bil JPY +25.6% +7.7%

Ordinary Income 1.55 Bil JPY +28.2% +10.9%Profit Attributable to Owners of Parent

1.01 Bil JPY +7.5% +34.9%

Consolidated GMV

➢ Resulted in a 2.1% increase despite forecasting a decreaseat the beginning of the year

4

YoY+2.1%

（Unit: million JPY）

*1 The amounts represent the total of the merchandise of the Group companies. For businesses recording merchandise prices as sales, the GMV is the total amount of sales. For businesses recording only commissions as sales, the sum of merchandise, shipping charges, and consumption tax are recorded as GMV. Only sales through the internet were recorded in GMV, but the sales through other channels such as distribution and event sales on site in the Retailing and Licensing Business have become more prevalent that we have decided to include those into the GMV as well. We have adjusted previous years’ GMV to reflect these inclusions. The additions per year are as follows (million JPY):FY2014：910 FY2015：1,242 FY2016：1,474 FY2017：2,266

*2 There are sales made from pre-monetized businesses in the Incubation business beyond FY2015, but the amount is so small it is not displayed on the graph.

Retailing and Licensing

Value Cycle

Cross Border

Incubation※2

5

Consolidated Net Sales

19,226

12,599

16,936

20,711YoY

+7.7%

➢ All-time high in net sales. Every EC business saw increases（Unit: million JPY）

Retailing and Licensing

Value Cycle

Cross Border

Incubation

6

Gross Profit Ratio and SG&A

➢ Gross Profit Ratio increased due to the income from the Incubation Business

※Bonuses are included in other fixed costs on a quarterly basis and labor costs on an annual basis, including this chart.※A portion of the Retailing and Licensing Business’s Other Fixed Costs have been switched to Variable costs as of FY2017 due to its high conjunction with sales

（Unit: million JPY）

7

Operating Income

➢ Cross Border Business led the Group with a 158.6％ increase➢ 25.6％ increase in the Group as a whole

Adjustments

YoY+25.6%

（Unit: million JPY）

Retailing and Licensing

Value Cycle

Cross Border

Incubation

Adjustments

Retailing and Licensing

Value Cycle

Cross Border

Incubation

8

Forecast vs. Results for FY2017

➢ Exceeded forecasts due to the increase in the Cross Border Business

GMV Net Sales Operating Income

Achievement

114.5％ Achievement（Consolidated）

107.7％

E-Commerce

123.0％

Incubation

92.1％

Achievement

103.6％

9501,168

（Unit: million JPY）

Forecast ResultsForecast ForecastResults Results

Unit:Million yen FY2017 FY2016 YonY

Current Asset 13,013 11,787 1,226 Cash and deposite 6,542 6,307 234 Account Receivable 841 914 △73 Operational Investment Securities 2,568 1,605 963 Products 1,109 1,187 △78 Fixed Assets 1,735 1,308 427 Tangible Assets 253 211 42 Intangible Assets 254 179 74 Investment etc. 1,227 916 311 Current Liabilities 5,255 4,830 424 Account Payables 440 395 45 Short-term Loan 1,118 914 203Current Portion of Long-term Loans Payable 29 20 8

Fixed Liabilities 254 238 15 Net Asset 9,240 8,025 1,214 Total Asset 14,749 13,095 1,654

9

Annual Consolidated Balance Sheet

・Investments：+951 Mil.

・Sales：△25 Mil.

・Appraised Loss：△148 Mil.

・FX Fluctuation：+185 Mil.

Quarterly Financial Results

July 2017 ～ September 2017

2

11

Quarterly Consolidated GMV

➢ Decrease QoQ due to seasonal trends, but +2.7％ YoYYoY

+2.7%

*1 The amounts represent the total of the merchandise of the Group companies. For businesses recording merchandise prices as sales, the GMV is the total amount of sales. For businesses recording only commissions as sales, the sum of merchandise, shipping charges, and consumption tax are recorded as GMV. Only sales through the internet were recorded in GMV, but the sales through other channels such as distribution and event sales on site in the Retailing and Licensing Business have become more prevalent that we have decided to include those into the GMV as well. We have adjusted previous years’ GMV to reflect these inclusions.*2 There are sales made from pre-monetized businesses in the Incubation business beyond FY2015, but the amount is so small it is not displayed on the graph.

（Unit: million JPY）

Retailing and Licensing

Value Cycle

Cross Border

Incubation※2

12

Quarterly Consolidated Net Sales

➢ Increase in sales due to the sale of Operating InvestmentSecurity in the Incubation Business

YoY+16.8%

（Unit: million JPY）

* The figure for the Incubation Business includes a decline of 4 million yen in sales due to exchange losses during FY2016 2Q.

Retailing and Licensing

Value Cycle

Cross Border

Incubation

13

Progress of GMV in the Cross Border Business

➢ Decrease QoQ due to seasonal trends but From Japan increased 16.4% YoY due to the depreciation of the yen

YoY+16.4%

YoY-5.1%

From Japan

To Japan

（Unit: million JPY）

14

From Japan Net Sales and Take Rate

➢ Take Rate increased due to the shift in user composition to the more profitable proxy purchasing service（Buyee）

YoY+16.4%

YoY+20.7%

GMV

Net Sales

（Unit: million JPY）

15

To Japan Net Sales and Take Rate

➢ GMV and net sales decreased YoY due to the depreciation of the yen

GMV

Net Sales

YoY-18.7%

YoY-5.1%

※ 流通総額は毎月の平均レートで円換算した合計金額であるのに対し、売上高は会計基準により期初からの平均レートで円換算しているため、為替変動の状況によって換算額に差が生じます。その結果FY2016 4QについてはTake Rateが高くなっております。

（Unit: million JPY）

16

Quarterly Gross Profit Ratio and SG&A

➢ SG&A decreased on a quarterly basis due to the Value Cycle businessholding back on advertising expenses

YoY+2.9%

（Unit: million JPY）

※Bonuses are included in other fixed costs on a quarterly basis※A portion of the Retailing and Licensing Business’s Other Fixed Costs have been switched to Variable costs as of FY2017 due to its high conjunction with sales

17

Quarterly Operating Income by Business Segment

➢ Incubation recorded sales on Operational Investment Securities

Adjustments

YoY15.6x

（Unit: million JPY）

E-Commerce

Incubation

* The adjustment includes the income and expenses of group companies that have not been distributed to subsidiary companies.

The income of BEENOS Inc. mainly comes from fees collected from subsidiaries.

The expenses of BEENOS Inc. are mainly incurred for the management of subsidiaries.

18

Quarterly Operating Income in the E-Commerce Business

➢ All divisions saw a YoY increase except for Retailing and Licensing➢ 118.3％ increase YoY in the E-Commerce Business

YoY+118.3%

（Unit: million JPY）

Retailing and Licensing

Value Cycle

Cross Border

Business Sector Review3

Shota NaoiPresident and Group CEO

20

Our Mission

We aim to be at the frontier in being the platform to make and connect new markets on a global scale

To become theGlobal Platform Frontier

BEENOSPlatform

Foreign Malls

Existing Global Platform Concept Diagram

Japan Cross Border The World

① Boost ② Connect ③ Expand

Licensing and Productsin the Entertainment Field

ECIncreasedAwareness

In-StoreSales

ProductPlanning

Experience in Cross BorderBtoC, CtoC

Customs Shipping

LanguageTrade

21

Highlights by Segment

22

Cross Border

Value Cycle

Retailing and Licensing

Incubation

Decrease in income due to netprice’s struggles

All-time High in Annual Sales and Operating Income

All-time High in Annual Sales and Operating Income

Recorded sales through foreign investment securities

4.1 Bil （＋8.2％）

Net Sales

YoY Comparison in parentheses

21.3 Bil （△1.0％）

GMV

673 Mil （＋158.6％）

Operating Income

10.5 Bil （＋9.2％）

Net Sales

439 Mil （＋36.0％）

Operating Income

5.0 Bil （＋11.2％）

Net Sales

10.5 Bil （+2.0％）

GMV

56 Mil （△64.3％）

Operating Income

977 Mil （△18.7％）

Net Sales

737 Mil （△4.6％）

Operating Income

FY2017 Highlights Cross Border Business

GMV Net Sales Operating Income

GMV leveled out, but Sales and Income increasedOperating Income increased 158.6％

20,86821,561 21,326

3,099

3,8394,153

424

260

673

（Unit: Million JPY）

23

24

FY2017 Highlights Cross Border Business（tenso）

Annual GMV by Country

36％

25％ 19％China

Other

• Successfully decreasing dependency on China• Creating a service structure that won’t be

directly impacted by China

64％ 75％ 81％

60％

40％

40％

60％

30％

70％

Annual GMV by Service

Strategically switching users to BuyeeProfits have increased as Buyee has a better return rate

FY2017 Highlights Cross Border Business（tenso）

25

tenso

26

FY2017 Highlights Cross Border Business

→Implementing independently developed recommendation and personalization features

▼Event in Taiwan▼Cooperate with leadingTaiwanese Girls Media Outlet (Released October)

FY2016 FY2017

Increase the number of domestic partners

1,420 Sites → 1,690 Sites

tenso Strengthening domestic and international PR

→Attended event in Taiwan→Partner with major credit card company (Taiwan) and

major bank (Hong Kong)

Shop Airlines Providing accurate product information to users

27

FY2017 Highlights Value Cycle Business (Defactostandard)

Sell

Purchase

SG&A

Establish foreign sales framework

Drawing in new users in masses

Incorporating low cost apparel

→Cut costs by outsourcing the listing process toworkers at home

→Cut costs by developing own selling channel

→20% increase in new users due to thesuccess of new TV advertisement

→Developing a tool to sell items on eBay

28

FY2017 Higihlights Retailing and Licensing Business

monosense Securing promising contents to strengthen distribution

Master License

ECONECO SWATi

Re-branding Product Development Creating EC Sites Marketing Events

Sub-license

Brand designed by Illustrator ECONECO

Planning and Sales of Interior Goods including Candles

29

FY2017 Highlights Retailing and Licensing Business

Though monosense increased in sales,netprice’s losses resulted in a decrease in operating income

8,348

monosense

netprice

4,174

4,556

5,067

167159

56

10,33610,538

GMV Net Sales Operating Income

（Unit: Million JPY）

Retailing and Licensing Business（netprice）

BEENOS to sell all shares of its BtoC online shopping business (Retailing and Licensing Business), netprice, Ltd. to Aucfan Co., Ltd.

◆Background of the Transfer of SharesAs the Group’s focus have shifted to Cross Border E-Commerce, we found that Aucfan could better synergize with netprice and continue to grow under Aucfan’s business strategy

◆ScheduleDate of Transfer of Shares: 1 December 2017

◆Forecastnetprice will no longer be a BEENOS subsidiary

30

BEENOSPlatform

Foreign Malls

Existing Global Platform Concept Diagram

Japan Cross Border The World

① Boost ② Connect ③ Expand

Licensing and Productsin the Entertainment Field

ECIncreasedAwareness

In-StoreSales

ProductPlanning

Experience in Cross BorderBtoC, CtoC

Customs Shipping

LanguageTrade

31

New Global Platform Concept Diagram

Japan Cross Border The World

① Discover ② Advance ③ Expand

Cross BorderBtoB

Amplify the

Entertainment Field

Expand into

Subculture Regions

Key Points

Product Arbitrage

Fixed Shipping Module

Vertical Framework

Key Points

Foreign Malls

BEENOSPlatform

32

Strategies for FY2018 Cross Border Business

Provide consumers worldwide with a service that provides

the lowest price of a product in the world

using our Cross Border EC database and AI Technology

Image

Customs Shipping

PriceFXetc.

Product Arbitrage

CheapestPrice

AIData of

Purchasing Trends

Product Arbitrage

33

34

Strategies for FY2018 Cross Border Business

Currently・・・・We are not able to finalize the price of International shipping and customs until theproduct reached our warehouseThe best we were able to do was to give them a ballpark figure using previous references

Once the Fixed Shipping Module is complete・・・・Customers could pay for all S/H fees at the time of initial purchaseImplement the module for other services as well

Fixed Shipping Module

Strategies for FY2018

Aim for a “Specialized Shopping Site” that will meet theneeds of audiences based on category

Vertical Framework

35

UI／UXCreativity in

ShippingTrade

Options

Cars

Subculture

Fashion Game

etc．

AnimeElectric Appliances

36

Strategies for FY2018 Cross Border BtoB

Begin Cross Border BtoB to increase the circulation of Japanese contents and products to companies worldwide→First installment is Taiwanese company

“Nichiyaku Hompo”（Released 16 OCT）

JapaneseContents and Products

Companies Worldwide

ExperienceIn

Cross BorderBusiness

Discover andDevelop Japanese

Products

Cross Border BtoB

FY2017 Highlights (Incubation Business)

37

▼Semiannual GMV trend

2017年2016年2015年

DroomIndia’s largest online automobile transaction marketplace, “Droom”, flourishes

・ BEENOS has invested in Droom since 2014. Hold a 5～10％ share・Online marketplace to deal with new and used vehicles, motor cycles, etc..・Creating comprehensive ecosystem for customers such as price DB based on an original algorithm, inspection

network throughout the country, used car historical management system, used car loan, etc..

52.2 Mil USD（SEP 2017）

・Monthly Visitors：Over 30 Million・App Downloads：6.5 Million・Sellers：Over 200K・Listed Items：180K・Monthly GMV：52.2 Mil USD・Operating Area: Over 500 cities in India

・India’s motor vehicle market ranks 3rd in the world・Internet penetration ratio is 0.5% → has potentialto become a mega market

【Ref：Key market numbers in India】（※Source: Droom）

【Latest Numbers】as of SEP 2017

FY2017 Highlights (Incubation Business)

38

DroomIndonesia based E-Commerce company, Tokopedia announced $1.1 in fundraising from Alibaba and existing investors（AUG 2017）

Tokopedia

Incubation Business ResultsNet Sales：977 Mil JPY Operating Income：737 Mil JPY

Tokopedia continues to grow as Indonesia’s largest online marketplace. BEENOS invested in Tokopedia in 2012 and holds a 1～5% share.

FY2017

39

Strategies for FY2018 Incubation Business

◆Established BeeCruise Inc. to develop new businesses

→Actively creating new businesses and services

◆ Actively invest in domestic companies focused on the Inbound market

→Create partnerships with current businesses to mutually expand our markets

◆ Sell operational investment securities at the appropriate time

Forecasts and

Redistribution of Profits

4

➢ Will not disclose forecast beginning FY2018➢ GMV disclosed as a reference

・Not logical to forecast the timing and amount of sales of operational investment securities

・Need to be flexible in regards to timing and amount to invest innew business

41

GMV Forecast for FY2018

GMV netprice

（Unit：100 Million JPY）

Forecast growth despite the decrease from the

sale of netprice

399

Retailing and Licensing

Value Cycle

Cross Border

Incubation

Results Results Results Results Forecast

42

Share Repurchase

Board resolved to repurchase its own shares in order to pursue a timely and flexible capital policy in response to changes in the operating environment（released 1 November 2017）

Total number of shares issued

（excluding treasury stock）12,294,882 shares

Number of treasury stock shares 37,718 shares

（Reference）Treasury stock held as of 30 September 2017

Class of shares to be repurchased Common Stock

Total number of shares to be

repurchased

100,000 shares

（0.81％ of the total number of shares issues

[excluding treasury stock]）

Total repurchase cost 150,000,000 JPY

Repurchase period 2 November 2017 to 31 January 2018

◆Details

43

FY2018 Dividend Forecast

Forecast to the same amount of dividend minus the commemorative dividends in FY2017

※TSE First Section Listing Commemorative Dividend

※

End of2nd Quarter

Year-end Total

FY 2017

Commemorative

Dividend

5.0013.00 18.00 29.3%

Dividend per share (JPY)Payoutrat io

FY 2018(Forecast)

0.00 13.00 13.00 -

Reference Materials5

BEENOS continues to invest in emerging countries in Asia other than China that are

expected to grow in the futureB2C Online marketplace January 2013

Online marketplace for secondhand cars July 2014

E-commerce solution October 2014

Price comparison service April 2015

Mobile fashion marketplace December 2015

Online C2C real estate marketplace February 2016

In-home physical examination marketplace

August 2016

Online B2B industrial goods marketplace December 2016

C2C Online marketplace April 2012

Online payment service January 2012

Online B2B industrial goods marketplace June 2016

Price comparison service May 2013

Online payment service June 2013

Online marketplace (Vietnam) December 2014

Online payment service (the Philippines) January 2015

Online remittance service (the Philippines)

July 2014

Mobile money (African countries) January 2014

Fashion marketplace (Thailand) August 2016

Mobile payment service (Bangladesh) June 2017

Incubation Business Overview

China

India

Indonesia

Other

Markets that

follow China

(NEXT CHINA) are the

main targets

45

Investment Date

List of Main Investments (in order of investment ratio)

Great Britain

US

Indonesia The Philippines

Turkey The Philippines

VietnamMultiple

African CountriesIndia

TurkeyIndia

India

Japan

Japan

Emerging Countries US, Japan, etc.

10％<

5～10％

1～5％

<1％

Japan

as of 30 September 2017

タイ バングラデシュ

46

Copyright © 2017 BEENOS Inc. All rights reserved

47

tenso

ショップエアライン 世界最大のオークションサイトeBayとの提携により、世界中の商品を日本にいながら購入できる「セカイモン」を運営。

デファクトスタンダード

モノセンス

ネットプライス

BEENOS Asia

BEENOS Partners

オープンネットワークラボ

BEENOS Plaza

Tokopedia インドネシアにおけるオンラインマーケットプレイス事業。 Akakce トルコにおける価格比較サービス事業。

Midtrans インドネシアにおけるオンライン決済サービス事業。 Iyzi Payments トルコにおけるオンライン決済サービス事業。

ShopClues インドにおけるオンラインマーケットプレイス事業。 Ayannah フィリピンにおけるオンライン送金サービス事業。

Citrus Pay インドにおけるオンライン決済サービス事業。 Nearex アフリカ諸国におけるモバイルマネー事業。

KartRocket インドにおけるオンラインストアソリューション。 Sendo ベトナムにおけるオンラインマーケットプレイス事業。

Buyhatke インドにおける価格比較サービス事業。 Paynamics フィリピンにおけるオンライン決済プラットフォーム事業。

Droom インドにおける中古車売買オンラインマーケットプレイス事業。 Duriana マレーシア・フィリピンにおけるスマートフォンフリマアプリ事業。

海外居住者向けに、日本の商品を海外発送代行するサービスを展開。現段階では、日本語・英語・中国語・韓国語に対応。日本語が読めないユーザー向けに代理購入サービス「Buyee」も展開。

連結子会社

持分法適用会社

主な海外の出資先

ブランド、時計、アパレル、アクセサリーなどを、お客様からネットを通じて買取り、メンテナンス後、ネットオークション等のチャネルを通じてセカンダリー販売。CtoBtoCモデル。

タレントのライセンスを用いた「商品企画」「商品プロモーション」「販路・流通の拡大」をサポートするサービスを提供。アーティストグッズの販売サイトも展開。

お客様・パートナーと「いいことおしえあう」ネットショッピングサイト「ネットプライス」を運営。

新興国市場への投資及び統括の拠点とするシンガポール現地法人。

米国のスタートアップ企業に対する投資事業を展開。

世界進出を視野に入れグローバルに活躍することを目標にインターネットを利用したビジネスでの起業を志すエンジニアや起業家を育成・支援。

インドネシアのスタートアップ企業に投資を行う現地法人。インドネシアで間接資材マーケットプレス事業を展開する「Ralali」などに出資。

Group Companies Profile

47

Asia

Partners

Plaza

Online marketplace business in Indonesia

Online payment service business in Indonesia KartRocket E-commerce store solution in India

Ayannah Online remittance service in the Philippines

Nearex Mobile money service in African countries

Sendo Online market place business in Vietnam

Paynamics Online payment service in the Philippines

Open Network Lab, Inc. Startup Accelerator program for startups intending to expand their business in the world

Investment in startup companies in USA

Overseas forwarding service for people living outside of Japan. With website in 4 languages (Japanese, English, Chinese and Korean), Tenso.com also runs another proxy purchasing service “Buyee” for customers who cannot read Japanese.

ShopAirlines, Ltd.

Defactostandard, Ltd.

Shop Airlines runs “Sekaimon” which enables Japanese customers to buy items around the world smoothly by tying up with the largest auction website “eBay”Defactostandard runs an online consignment store, “Brandear”. Brandear purchases items from customer via internet and sell the items at internet auction sites after maintenance. (C to B to C business model)

monosense, Ltd.

Monosense provides services creating successful tie-up products with various supports such as product planning and merchandise promotion for extending the market. Also runs various official artist's online shops.

netprice, Ltd Netprice runs internet shopping websites “netprice.” The service is based on customer reviews with the concept “telling a good thing each other”.

Investment in emerging countries. A Singapore based subsidiary.

Consolidated Subsidiaries

Affiliated Companies

Overseas Investments

Buyhatke Price comparison service in India

Droom Online market place for second hand cars

Investment in startup companies in Indonesia

voonik

NoBroker Online C2C real estate marketplace

tenso, inc.

Healthians In-home physical examination marketplace

Akakce Price comparison service in Turkey

Iyzi Payments Online payment service in Turkey Mobile fashion marketplace

Ralali Online B2B industrial goods marketplace

SureCash Mobile payment service in Bangladesh