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Financial Results for the Second Quarter of the Fiscal Year Ending May 2025 December 13, 2024 ASKUL Corporation
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[Disclaimer] This material is an English translation of the original Japanese version and provided for reference purpose only. In the event of and discrepancy between the Japanese original and this English translation, the Japanese original shall prevail. This material contains the ASKUL Group’s earnings forecasts and other forward-looking statements. These forecasts and other forward-looking statements are based on the information ASKUL has obtained to date and on certain assumptions it considers reasonable. As such, these forecasts and statements are not intended as a commitment by the Company to achieve them. Note also that actual results and other future events may differ materially from these forecasts and statements due to a variety of factors. This material has not been audited by certified public accountants or auditing firms. [Segment] ✓ ASKUL is reporting its operating performances by dividing its organization into three segments: E-commerce Business, Logistics Business, and Other. E-commerce Business deals with sales of OA and PC supplies, stationery, office living supplies, office furniture, foods, alcoholic beverages, pharmaceuticals, cosmetics, etc. Logistics Business refers to logistics and small-cargo transportation service to companies. ✓ Subject to inclusion in the results of each segment are indicated as follows: [Fiscal Year] Fiscal year runs from May 21 of each year to May 20 of the following year, month runs from 21st of each month to 20th of the following month. [Other] Reproduction or reprinting in any form of all or part of this material (including trademarks and images) without the permission of ASKUL is prohibited. 2 Segment Subsegment Main services, major subsidiaries E-commerce business ASKUL business ASKUL, SOLOEL ARENA, SOLOEL, New ASKUL Website LOHACO business LOHACO Group companies, etc. AlphaPurchase Co., Ltd., BUSINESSMART CORPORATION, SOLOEL Corporation, FEED Corporation, ASKUL LOGIST Corporation, charm Co., Ltd *Including consolidation eliminations Logistics business ASKUL LOGIST Corporation (sales to customers outside of the Group) Others TSUMAGOI MEISUI CORPORATION
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3 Executive Summary Earning Results for the Second Quarter of FY5/2025 ✓ Sales increased; however, profit decreased primarily due to a decline in the gross profit margin caused by the impact of exchange rates. ✓ From the second half onward, we will focus on driving sales growth while recovering exchange positions and improving logistics cost ratio. Challenge and Countermeasures for Sales Growth (ASKUL Business) ✓ The number of customers have declined due to intermittent price adjustments and revision of free shipping threshold amid an inflationary environment. ✓ We aim to recover growth by strengthening price competitiveness and increasing advertising and sales promotional expenses. Progress of Business ✓ The transition of SOLOEL ARENA customers to the New ASKUL Website is progressing as planned. ✓ ASKUL Kanto DC is progressing smoothly toward the start of operations at the beginning of FY5/26. Copyright © ASKUL Corporation. All Rights Reserved.
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Ⅰ Earning results for the Second Quarter of the Fiscal Year Ending May 2025 Ⅱ Challenge and Countermeasures for Sales Growth Ⅲ Progress of Business Ⅳ ESG Ⅴ Appendix 4Copyright © ASKUL Corporation. All Rights Reserved.
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% of net sales % of net sales YoY change % % % Net Sales 231,288 100.0 237,932 100.0 +2.9 Gross Profit 57,631 24.9 57,182 24.0 -0.8 Selling, General and Administrative Expenses 50,388 21.8 51,153 21.5 +1.5 Operating Profit 7,242 3.1 6,028 2.5 -16.8 Ordinary Profit 7,104 3.1 5,920 2.5 -16.7 Profit Attributable to Owners of Parent 4,637 2.0 3,739 1.6 -19.4 ActualActual FY5/2024 Q2 FY5/2025 Q2 FY5/2025 Q2 Cumulative Earnings Results 5Copyright © ASKUL Corporation. All Rights Reserved. ✓ Net sales YoY +2.9% Renewed the previous record ✓ Gross profit margin YoY down 0.9 point ✓ Operating profit YoY -16.8% ✓ Profit YoY -19.4% (¥million) Consolidated
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Decrease in profit primarily due to a decline in the gross profit margin caused by the impact of exchange rates. FY5/2025 Q2 Factors for Increase / Decrease in Operating Profit 6 (1.7) Copyright © ASKUL Corporation. All Rights Reserved. 0.4(0.4) 1.1 0.2 0.1 0 (1.0) 7.2 6.0 （億円） FY5/2024 Q2 (cumulative) FY5/2025 Q2 (cumulative) Note: Figures in the graph are rounded down to the nearest 100 million yen. Decline in gross profit margin Increase in logistics cost with sales growth Decrease in other expenses Improvement of profitability in Logistics Business and Others Increase in gross profit with sales growth Decrease in logistics cost due to improved efficiency Improvement of profitability in the Group companies ASKUL Kanto DC, core system replacement, new business related E-commerce Business Breakdown of Fixed Cost Increase ⚫ASKUL Kanto DC -710 million <breakdown> Rent -680 million Start-up expenses -30 million ⚫Core system replacement -360 million ⚫New business related -10 million (¥billion) Consolidated
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Changes in Gross Profit Margin 7 24.3 23.6 24.9 24.9 24.0 22.0 22.5 23.0 23.5 24.0 24.5 25.0 25.5 26.0 First half Second half First half Second half First half FY5/2025 Q2 YoY change: Down 0.9 points A decline caused by the deterioration of exchange positions. Improvement expected in the second half (%) FY5/2024FY5/2023 FY5/2025 Copyright © ASKUL Corporation. All Rights Reserved. Consolidated
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ASKUL Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Unit Sales Price per Box Copyright © ASKUL Corporation. All Rights Reserved. Revision of free shipping threshold on November 1, 2023 (Yen) FY5/2023 FY5/2024 FY5/2025 FY5/2025 Q2 YoY change: +5.2% 400-million-yen worth of delivery cost reduction in Q2 period Continued improvement expected 8 Non- Consolidated
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84.4 89.8 88.0 90.9 353.3 88.3 89.9 0 +0.1 8.8 8.6 8.8 9.7 36.1 9.5 8.5 (0.1) -1.6 17.5 17.3 19.6 18.4 72.8 18.3 18.8 1.4 +8.6 110.8 115.8 116.5 119.1 462.3 116.2 117.2 1.4 +1.2 2.2 2.3 2.2 2.4 9.3 2.1 2.2 (0) -4.1 113.0 118.2 118.7 121.6 471.6 118.3 119.5 1.3 +1.1 (0.2) (0.2) 0.1 (0.1) (0.5) 0.1 0.1 0.3 - 2.8 4.4 5.2 4.4 17.0 2.5 3.4 (0.9) -21.3 (0) (0) (0) (0) (0.1) 0 (0) (0) - 2.8 4.4 5.2 4.4 16.9 2.5 3.4 (0.9) -21.8 Q4 YoY change YoY change % Full-year FY5/2024 FY5/2025 Q1Q1 Q2 Q3 Q2 Operating Profit Consolidated Total Net Sales ASKUL Business Logistics Business and Other Group Companies, etc. E-commerce Business LOHACO Business Performance-linked Bonuses (including provision), etc. Consolidated Total E-commerce Business Logistics Business and Other FY5/2025 Q2 Earnings Results [Quarterly, By Business] 9Copyright © ASKUL Corporation. All Rights Reserved. (¥billion) Consolidated
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0 50 100 150 200 250 300 350 400 FY5/2021 Q2 (cumulative) FY5/2022 Q2 (cumulative) FY5/2023 Q2 (cumulative) FY5/2024 Q2 (cumulative) FY5/2025 Q2 (cumulative) 0 50 100 150 200 250 300 FY5/2021 Q2 (cumulative) FY5/2022 Q2 (cumulative) FY5/2023 Q2 (cumulative) FY5/2024 Q2 (cumulative) FY5/2025 Q2 (cumulative) 1,200 1,300 1,400 1,500 1,600 1,700 1,800 FY5/2021 Q2 (cumulative) FY5/2022 Q2 (cumulative) FY5/2023 Q2 (cumulative) FY5/2024 Q2 (cumulative) FY5/2025 Q2 (cumulative) Copyright © ASKUL Corporation. All Rights Reserved. 10 154.8 FY5/2025 Q2 Earnings Results: E-commerce Business Net Sales 155.6 164.3 174.3 178.2 25.6 26.5 25.4 17.4 18.1 22.1 22.2 25.7 34.8 37.1 ASKUL Business YoY +2.3% LOHACO Business Group Companies, etc. YoY +3.6% YoY +6.7% (¥billion) (¥billion) (¥billion) 180 170 160 150 140 130 120 30 25 20 15 10 0.5 0 40 35 30 25 20 15 10 0.5 0 Consolidated
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0 10 20 30 40 50 60 70 80 FY5/2021 Q2 (cumulative) FY5/2022 Q2 (cumulative) FY5/2023 Q2 (cumulative) FY5/2024 Q2 (cumulative) FY5/2025 Q2 (cumulative) 11 FY5/2025 Q2 Earnings Results: E-commerce Business Operating Profit 6.6 7.3 Copyright © ASKUL Corporation. All Rights Reserved. 6.7 6.8 6.0 (¥billion) 8 7 6 5 4 3 2 1 0 YoY -17.4% Impact of the deterioration in exchange positions. An improvement in the exchange positions and the unit sales price per box is expected in the second half. Consolidated
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△ 8 △ 6 △ 4 △ 2 0 FY5/2021 Q2 (cumulative) FY5/2022 Q2 (cumulative) FY5/2023 Q2 (cumulative) FY5/2024 Q2 (cumulative) FY5/2025 Q2 (cumulative) 0 10 20 30 40 50 FY5/2021 Q2 (cumulative) FY5/2022 Q2 (cumulative) FY5/2023 Q2 (cumulative) FY5/2024 Q2 (cumulative) FY5/2025 Q2 (cumulative) FY5/2025 Q2 Earnings Results: Logistics Business and Others 12Copyright © ASKUL Corporation. All Rights Reserved. (0)3.7 4.6 4.7 (0.7) 4.6 4.3 Aiming to achieve profitability for the full year. Net Sales Operating Profit YoY -5.4% YoY change +0 billion Sales continued to be on par with the same period of the previous year. 5 4 3 2 1 0 0 (0.2) (0.4) (0.6) (0.8) (¥billion) (¥billion) (0) (0) (0) Consolidated
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0 50 100 150 200 250 300 FY5/2021 FY5/2022 FY5/2023 FY5/2024 FY5/2025 Trends in EBITDA 13Copyright © ASKUL Corporation. All Rights Reserved. Impact of profit decline Aiming for improvement in the second half 2Q 2Q 2Q 2Q 2Q 30 25 20 15 10 5 0 (¥billion) Consolidated
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15 14 15 17 17 16 12 5 5 11 10 10 10 10 9 4 26 29 29 29 25 3 6 8 8 8 17 17 17 17 0 20 40 60 80 100 120 FY5/2022 FY5/2023 FY5/2024 FY5/2025 FY5/2026 FY5/2027 FY5/2028 FY5/2029 Trends in Depreciation / Amortization Expenses 14 ✓ An increase began in FY5/24 due to the launch of the new ASKUL website and other factors. ✓ Depreciation expense is expected to increase further in FY5/26 with the operation of the ASKUL Kanto DC and the core system replacement but is expected to decrease thereafter. ✓ By FY5/29, the depreciation of major investments, such as the new ASKUL website and material handling equipment at AVC Kansai, is expected to be completed, resulting in a reduction in depreciation expense. New ASKUL Website ASKUL Tokyo DC ASKUL Kanto DC Core System Replacement AVC Kansai Other The current Medium- Term Management Plan began (¥billion) Figures estimated based on investment plans already formally approved as to date. 12 10 8 6 4 2 0 The final year of the current Medium-Term Management Plan Non- Consolidated Copyright © ASKUL Corporation. All Rights Reserved.
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Shareholder Return 15Copyright © ASKUL Corporation. All Rights Reserved. 期 末 配 当 中 間 配 当 中 間 配 当 期 末 配 当 0 10 20 30 40 FY5/2022 FY5/2023 FY5/2024 FY5/2025 (Yen) Forecast Annual dividends per share FY5/25 Interim Dividend ✓ dividend per share: ¥19 (Initial Plan: Interim dividend ¥19 and Year-end dividend ¥19) Increased interim dividend by ¥1 as planned at the beginning of the term ✓ Acquiring treasury stock based on the shareholder return policy Interim dividend Year-end dividend Consolidated
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Ⅰ Earning results for the Second Quarter of the Fiscal Year Ending May 2025 Ⅱ Challenge and Countermeasures for Sales Growth Ⅲ Progress of Business Ⅳ ESG Ⅴ Appendix 16Copyright © ASKUL Corporation. All Rights Reserved.
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ASKUL 95 100 105 110 From Nov. 21, 2021 to Nov. 20, 2022 From Nov. 21, 2022 to Nov. 20, 2023 From Nov. 21, 2023 to Nov. 20, 2024 Unit price per purchasing customer growth rate Sales growth rate Number of purchasing customers growth rate FY5/2025 Factors Behind a Decline in Sales Growth 17Copyright © ASKUL Corporation. All Rights Reserved. Due to price increase and revision of free shipping threshold, the number of customers has declined 1 The minimum order amount for which the Company bears the basic shipping fee has been changed from 1,000 yen to 2,000 yen (i ncluding tax). 2 Number of unique customers who made purchase during the period. Revision of free shipping threshold (Nov. 1, 2023~) *1 Intermittent product price adjustments (due to inflation and rising costs) *2 (%) Notes: Non- Consolidated
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ASKUL Composition ratio Composition ratio Composition ratio Composition ratio Composition ratio Composition ratio Composition ratio YoY change % % % % % % % % OA & PC 24.2 29.2 24.1 28.6 26.2 29.3 26.2 29.9 26.4 29.1 24.9 28.2 25.8 28.8 (0.3) -1.5 Stationery 10.1 12.2 9.8 11.7 10.9 12.2 11.2 12.8 13.1 14.5 10.8 12.3 11.5 12.9 0.5 +5.3 Living Supplies 24.5 29.5 27.6 32.7 27.6 30.8 25.9 29.5 26.0 28.6 29.1 33.0 28.0 31.2 0.3 +1.3 Furniture 4.5 5.5 4.9 5.9 5.1 5.8 5.2 5.9 6.6 7.3 4.7 5.3 4.7 5.3 (0.3) -7.6 MRO 10.4 12.5 10.3 12.2 11.1 12.4 10.9 12.4 10.9 12.0 10.6 12.0 11.2 12.5 0.1 +1.0 Medical 7.3 8.8 5.6 6.7 6.1 6.8 6.0 6.9 5.6 6.2 6.3 7.1 6.1 6.8 0 +0.6 Others 1.9 2.3 1.8 2.2 2.4 2.7 2.2 2.5 2.0 2.2 1.7 2.0 2.2 2.5 (0.2) -8.6 Total 83.1 100.0 84.4 100.0 89.8 100.0 88.0 100.0 90.9 100.0 88.3 100.0 89.9 100.0 0 +0.1 YoY change Q4 FY5/2024 FY5/2025FY5/2023 Q2 Q1 Q2 Q3 Q1 Q2 Quarterly Net Sales by Item Category 18Copyright © ASKUL Corporation. All Rights Reserved. 1. Some products in the Living Supplies category have been reclassified to the Furniture category from the beginning of the fiscal year ended May 2024. 2. From February of the fiscal year ended May 2024, due to changes in the agent system, there has been a positive impact on the Stationery and Other categories, but there are also categories with negative impacts. Therefore, the overall impact on sales in the ASKUL businessis minimal. Notes: (¥billion) Non- Consolidated
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ASKUL 0 5 10 15 20 25 30 Aug. Nov. Feb. May Aug. Nov. Feb. May Aug. Nov. Feb. May Aug. Nov. 0 4 8 12 16 Aug. Nov. Feb. May Aug. Nov. Feb. May Aug. Nov. Feb. May Aug. Nov. Expansion of Product Assortments (Number of Products, Products In-Stock) 19Copyright © ASKUL Corporation. All Rights Reserved. Steadily expanded next-day delivery products. Products Handled In-Stock Products ✓ Q2 period: increased 28,000 items increased in all categories ✓ Q2 period: increased 574,000 items over 367,000 new items introduced Continue to work on improving utilization rate. (million items) (10 thousands of items) 14.95 million items 311,000 items FY5/2022 FY5/2023 FY5/2024 FY5/2025 FY5/2022 FY5/2023 FY5/2024 FY5/2025 Non- Consolidated
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ASKUL 10 15 20 25 30 35 40 45 FY5/2022 Nov. FY5/2023 Nov. FY5/2024 Nov. FY5/2025 Nov. 6,000 7,000 8,000 9,000 10,000 11,000 12,000 Aug. Nov. Feb. May Aug. Nov. Feb. May Aug. Nov. Feb. May Aug. Nov. Expansion of Product Assortments (ASKUL Original Products*1) 20Copyright © ASKUL Corporation. All Rights Reserved. Strengthening profitability through an increased sales composition ratio. Number of Items Composition to Net Sales (Sales of in-stock products) (items) (%) Note: Original products includes products exclusive to ASKUL Excluding original products exclusive to LOHACO 39.4%11,539 items FY5/2022 FY5/2023 FY5/2024 FY5/2025 Non- Consolidated
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ASKUL Enhancing Product Assortment and Original Products FY5/2025 Measures for Sales Growth 21Copyright © ASKUL Corporation. All Rights Reserved. Strengthening Price Competitiveness Reviewing Customer Acquisition Methods and Measures to Improve Retention Rates Improving Sales Promotion Accuracy Evolving into an Easy-to-Navigate Site Increasing Advertising and Promotional Expenses ✓ Enhancing the site's ease of use and purchasing experience through search algorithm optimization and functional improvements based on customer feedback. Strengthening Product Capability Strengthening Attracting Customers, Enhancing User Interface (UI) and User Experience (UX) Non- Consolidated ✓ After conducting a Proof of Concept (POC) for Merchandising DX, prices are being revised, focusing on products with high purchase frequency among customers. ✓ Marketing lab has also been launched in the ASKUL business. Collaborating with suppliers to enhance product assortment through data utilization. ✓ Strengthening original products by establishing a dedicated product development department. ✓ Recovering customer numbers through increased traffic and enhanced brand awareness. ✓ Reallocating and increasing advertising and promotional expenses targeting existing customers. ✓ Strengthening customer acquisition methods targeting customers who are likely to become loyal customers through data utilization and implementing measures to retain customers after registration. ✓ Automating site exposure of enhanced product assortments and bargain items and optimizing the recommendation engine to propose desired products to customers.
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Ⅰ Earning results for the Second Quarter of the Fiscal Year Ending May 2025 Ⅱ Challenge and Countermeasures for Sales Growth Ⅲ Progress of Business Ⅳ ESG Ⅴ Appendix 22Copyright © ASKUL Corporation. All Rights Reserved.
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ASKUL Progress of the New ASKUL Website 23Copyright © ASKUL Corporation. All Rights Reserved. Continue to prioritize customer support while carefully proceeding with the transition. ✓ According to the revised plan in Q4 of the FY5/2024, the transition is progressing as planned. ✓ In Q2 period, about 20% of customers have completed the transition. Status of SOLOEL ARENA Customer Transition FY5/2025 Q1 56% FY5/2025 Q2 76% FY5/2025FY5/2024 FY5/2026 and beyond Transition of customers In operation Transition of customers Full-scale operation Complete Integration Now ▼System launch Integration into the new ASKUL website Progress of the New ASKUL Website Functional migration of ASKUL site Rate of progress 76%* Note: Percentage of companies that have completed the transition to the total number of companies using SOLOEL ARENA. Transition of SOLOEL ARENA customers Transition of ASKUL customers SOLOEL ARENA site ASKUL site New ASKUL Website Integration into the new ASKUL website <Progress> Non- Consolidated
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ASKUL Kanto DC 24Copyright © ASKUL Corporation. All Rights Reserved. FY5/2025 FY5/2026 FY5/2027 June 2024 Start of lease Reorganization of existing logistics base Material handling installation periods Scheduled start of operation Notes: 1 GTP = Goods to person. A robot that transports goods directly to the locations where workers are responsible for picking 2 AGV = Automated guided vehicle. Image shown above are from AVC Kansai. The installation of the material handling system is progressing as planned toward the start of operation at the beginning of FY5/2026. GTP*1 Shelf rack transport AGV*2
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LOHACO 25 FY5/2025 Measures for Sales Growth Strengthening collaboration with LYC to accelerate sales growth in the second half. Copyright © ASKUL Corporation. All Rights Reserved. Directing Customers to Original Products Collaboration Coupons with Other Stores Implemented pathways on product detail pages to guide customers toward original products. Distributing collaborative coupons with other stores on Yahoo! Shopping to drive mutual customer referrals. *Scheduled to be implemented during the FY5/2025 National Brand (NB) products Other Store Customer referral (coupons) Example) Recommending ground coffee to customer purchasing coffee makers. Example) Proposing original products as alternatives to national brand tissue paper. Original Products Facial Tissue 150 sheets (5 boxes) 1 set (2 packs) ¥670 (including tax) Even more affordable boxed tissue Original Facial Tissue 150 sheets (5 boxes) 1set (2 packs) ¥590 Customer referral (coupons)
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Ⅰ Earning results for the Second Quarter of the Fiscal Year Ending May 2025 Ⅱ Challenge and Countermeasures for Sales Growth Ⅲ Progress of Business Ⅳ ESG Ⅴ Appendix 26Copyright © ASKUL Corporation. All Rights Reserved.
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ESG 27Copyright © ASKUL Corporation. All Rights Reserved. ✓ ASKUL will support participating suppliers (two companies) to measure CO2 emissions, set reduction targets, and implement reductions activities. ✓ Plans to share insights gained from this model projects with 93 companies, which are subjected to engagement. September 2024 Selected for the Ministry of the Environment’s Model Project for Promoting Decarbonization Across the Entire Value Chain ✓ Messages from the CEO, COO, CFO, and CHO, along with a dialogue between the CDXO and external experts (covering topics such as strengthening DX in the value chain and transitioning to data-driven thinking to envision ASKUL’s future), a roundtable discussion with independent outside directors, strategies for product development, and messages from various department heads and employees are featured. December 2024 Integrated Report “ASKUL Report 2024” Issued ESG ✓ Two recipients: Fukuoka Prefecture Governor’s Award for Outstanding Workers with Disabilities ✓ One recipient: Director’s Award for Excellence in Effort, Outstanding Workers with Disabilities from the Japan Organization for Employment of the Elderly, Persons with Disabilities and Job Seekers ✓ One recipient and ASKUL LOGIST: Long-Term Service and Cooperation Award for Persons with Disabilities from Shinjuku City, Tokyo ✓ Continue employing individuals with disabilities as key contributors and expand employment practices across logistics centers nationwide December 2024 Four logistics center staff members with disabilities were recognized as Outstanding Workers and received awards across three different categories.
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Ⅰ Earning results for the Second Quarter of the Fiscal Year Ending May 2025 Ⅱ Challenge and Countermeasures for Sales Growth Ⅲ Progress of Business Ⅳ ESG Ⅴ Appendix 28Copyright © ASKUL Corporation. All Rights Reserved.
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LOHACO ASKUL 29Copyright © ASKUL Corporation. All Rights Reserved. FY5/2025 Net Sales by Item Category FY5/2024 Q2 (cumulative) FY5/2025 Q2 (cumulative) Composition ratio % YoY change % Composition ratio % YoY change YoY change % OA & PC 51.1 26.7 +7.0 51.5 26.2 0.3 +0.7 Stationery 21.1 11.0 +5.5 22.7 11.6 1.5 +7.4 Living Supplies 70.3 36.7 -1.9 72.4 36.9 2.1 +3.0 Furniture 10.5 5.5 +13.4 9.9 5.1 (0.6) -5.9 MRO 21.8 11.4 +5.5 22.2 11.3 0.4 +2.1 Medical 12.3 6.4 -28.2 13.5 6.9 1.1 +9.7 Others 4.4 2.3 +46.5 3.9 2.0 (0.4) -10.4 Total 191.8 100.0 +1.1 196.4 100.0 4.5 +2.4 (¥billion) Non- Consolidated
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ASKUL 42 85 149 224 297 345 387 451 534 616 710 820 973 1,090 1,189 1,287 1,361 1,418 1,483 1,618 1,740 1,873 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 FY5/2004 FY5/2005 FY5/2006 FY5/2007 FY5/2008 FY5/2009 FY5/2010 FY5/2011 FY5/2012 FY5/2013 FY5/2014 FY5/2015 FY5/2016 FY5/2017 FY5/2018 FY5/2019 FY5/2020 FY5/2021 FY5/2022 FY5/2023 FY5/2024 FY5/2025 1 2 5 8 10 12 16 19 22 26 31 37 42 47 52 56 56 62 65 69 72 74 0 10 20 30 40 50 60 70 May 2004 May 2005 May 2006 May 2007 May 2008 May 2009 May 2010 May 2011 May 2012 May 2013 May 2014 May 2015 May 2016 May 2017 May 2018 May 2019 May 2020 May 2021 May 2022 May 2023 May 2024 Nov. 2025 Results of SOLOEL ARENA and others 30Copyright © ASKUL Corporation. All Rights Reserved. Mid-tier and larger companies Large corporations Small and medium-sized enterprises Sole proprietors (1,000 companies) (¥100 million) Net sales value for SOLOEL ARENA and others Number of registered/active customer companies of SOLOEL ARENA FY5/2025 Q2 Cumulative Results ¥88.4 billion YoY Up 3.2% FY5/2024 Q2 Cumulative Results ¥85.6 billion (Plan) Non- Consolidated
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FY5/2025 Q2 Cumulative Capital Expenditures 31 Item FY5/2024 Q2 FY5/2025 Q2 Amount Amount YoY Change [Capital expenditures] 4,137 5,206 25.8% Property, plant and equipment 1,565 2,145 37.0% Intangible assets 2,571 3,060 19.0% Construction in progress (Note 2) 2,009 7,841 290.2% Software in progress (Note 2) 1,804 3,916 117.0% (¥ million) Capital expenditures ¥5.2 billion (Annual plan: ¥18.0 billion) Investment details ASKUL Kanto DC ¥1.5 billion Core System Replacement ¥1.1 billion (Reference) Depreciation and amortization of software: ¥4.6 billion (Annual plan: ¥9.4 billion) Notes 1. Capital expenditure is stated on an accrual basis. 2. Construction in progress and software in progress above present balances at the end of the quarter under review and partially include consumption and other taxes. Consolidated Copyright © ASKUL Corporation. All Rights Reserved.
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FY5/2025 Q2 Original Products 32 Nov. of FY5/2024 Nov. of FY5/2025 YoY Change Number of original products 15,561 18,046 +2,485 Non-consolidated net sales composition (of which, ASKUL business) 33.7% (39.8%) 33.8% (39.4%) +0.1pt (-0.4pt) Notes: 1. The number of original products includes those with sales limited to ASKUL. 2. The sales composition ratio of original products is calculated, including original copy paper. 3. From Q4 of FY5/2018 onward, the sales composition ratio of original products in the ASKUL business has been calculated using the inventory sales of the ASKUL business as the denominator. (Unit: item) Copyright © ASKUL Corporation. All Rights Reserved. Non- Consolidated
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FY5/2025 Q2 Gross Profit and SG&A Expenses 33 Gross profit: ¥ 57.1 billion YoY change: Down ¥ 0.4 billion Gross profit margin: 24.0% YoY change: Down 0.9 points ✓ Due to the impact of exchange position SG&A expenses: ¥ 51.1 billion YoY change: Up ¥ 0.7 billion Ratio of SG&A expenses to net sales 21.5% YoY change: Down 0.3 points Item FY5/2024 Q2 FY5/2025 Q2 Amount (million yen) Ratio to Sales (%) Amount (million yen) Ratio to Sales (%) YoY Change (%) Personnel expenses 12,879 5.6 12,459 5.2 96.7 Shipment expenses 11,214 4.8 10,991 4.6 98.0 Subcontract expenses 2,450 1.1 3,040 1.3 124.1 Business consignment expenses 5,670 2.5 5,781 2.4 102.0 Rents 5,551 2.4 6,227 2.6 112.2 Provision of allowance for doubtful accounts 29 0.0 14 0.0 50.8 Depreciation 1,908 0.8 2,116 0.9 110.9 Amortization of software 2,322 1.0 2,503 1.1 107.8 Other expenses 8,362 3.6 8,016 3.4 95.9 Total 50,388 21.8 51,153 21.5 101.5 Details of Selling, General and Administrative Expense (as shown in Financial Statements) Consolidated Copyright © ASKUL Corporation. All Rights Reserved.
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ASKUL Number of Business Days 34Copyright © ASKUL Corporation. All Rights Reserved. Q1 Q2 First half Q3 Q4 Second half Full-year Weekdays Saturdays Weekdays Saturdays Weekdays Saturdays Weekdays Saturdays Weekdays Saturdays Weekdays Saturdays Weekdays Saturdays FY5/2025 64 13 62 13 126 26 58 15 58 12 116 27 242 53 FY5/2024 63 13 63 12 126 25 59 15 59 12 118 27 244 52 Difference +1 0 -1 +1 0 +1 -1 0 -1 0 -2 0 -2 +1
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期 末 配 当 期 末 配 当 Realizing a Carbon-Neutral Society Building a Resource-Recycling Platform Conserving Biodiversity Initiatives for Sustainability (Environment) 35Copyright © ASKUL Corporation. All Rights Reserved. Development and procurement of environment-friendly products ASKUL Environmental Policy We, the ASKUL Group, are committed to passing on a better global environment to future generations through our business activities as a company that continuously brings delight to our workplace, life, the planet and tomorrow. ⚫2050 Net Zero Achieve net zero CO2 emissions across the entire supply chain by 2050 ⚫“2030 CO2 Zero Challenge” Reduce CO2 that is emitted by business sites and distribution down to zero by 2030 ⚫“RE100” Raise a group-wide renewable energy utilization ratio to 100% by 2030 Realized 64.8% as of May 2024 ⚫“EV100” Replace delivery vehicles owned and used by ASKUL LOGIST 100% with electric vehicles by 2030 As of May 2024, a total of 20 EVs are in operation. ⚫Reducing CO2 Emissions throughout the Supply Chain Started with calculation of ASKUL original products using a tool for visualizing CO2 emissions in the supply chain Working towards achieving SBT Supplier Engagement ⚫Reduce disposal of returned products Reduce returned products that lead to their disposal Remake returned products into salable products Sell returned products as “imperfect ones” at a discount ⚫ASKUL Resource Recycling Platform ASKUL Recourse Recycling Platform is established and begins operation after Ministry of the Environment’s demonstration project. Promoting initiatives that do not throw away resources n cooperation with all entities in the value chain. In April 2024, 2 wastebasket items made from used clear plastic folders were released as Matakul, an original product series. ⚫ASKUL Catalog Recycle “Flowerpot” Launched an eco-friendly flowerpot made from 20% recycled paper from ASKUL catalogs and 80% recycled cardboard. ⚫“1 box for 2 trees” Confirm planting of two eucalyptus trees, double the amount of raw materials, by purchasing one box of original copy paper ⚫ASKUL Product Environmental Standard Began to publish on product pages an independent score for the environmental friendliness level of each products. Promoting development of environmentally friendly products while working together with manufacturers and suppliers to improve scores. ⚫Forest Maintenance Partnership Agreement with TsumagoiVillage In August 2023, ASKUL, TSUMAGOI MEISUI, and T sumagoi Village signed a Forest MaintenancePartnership Agreementfor the purpose of jointly implementing activities to conserve T sumagoiVillage's forest resources. Started local tree-planting in May 2024 ESG
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Initiatives for Sustainability (Environment) 36 2003 Formulated ASKUL Environmental Policy 2013 Formulated Medium-Term Environmental Targets 2016 Signed up for the “United Nations Global Compact” Announced the “2030 CO2 Zero Challenge” 2018 Obtained “Eco-First company” and “SBT” Certification 2019 Announced support for “TCFD recommendations” Selected as a “Climate Change A List” company by CDP 2017 Joined RE100 and EV100 2020 Selected as a “Climate Change A List” company by CDP “RE100” is an international business initiative, participated by companies that publicly aim to operate their business with 100% renewable energy “EV100” is an international business initiative, participated by companies that publicly aim to replace all their business-purpose vehicles with electric vehicles United Nations Global Compact (UNGC) is a voluntary initiative by which companies and organizations act as good members of society and participate in the creation of a global framework that realizes sustainable growth by demonstrating responsible and creative leadership The “Eco-First Company” is a company recognized by the Minister of the Environment as a company that engages in “advanced, unique and industry-leading business activities” for environmental conservation, such as global warming countermeasures and waste and recycling measures “SBT: Science Based Targets” are corporate targets to reduce greenhouse gas. The “Science Based Targets” organization, an international initiative, will approve them as targets that aim at scientifically based levels to achieve the “2ºC target Efforts to keep the temperature well below 2ºC and bring it below 1.5ºC)” set out in the Paris Climate Accord “TCFD recommendations” are international propositions, compiled by the Task Force on Climate-related Financial Disclosures (“TCFD”), concerning how corporations should voluntarily disclose information for the purpose of identifying and disclosing the financial impacts of risks and opportunities caused by climate change Companies included in “Climate Change A list” are ones selected as the highest rated by the international non-profit environmental organization Carbon Disclosure Project, CDP. If companies are taking excellent actions in response to climate change and disclosure of their information, they will be included in the list 2021 Selected as a “Climate Change A List” company by CDP 2022 Selected as a “Climate Change A- List” company by CDP 2023 Participated in “GX League” Selected as a “Climate Change A List” company by CDP The GX League calls on enterprises to actively work for GX; to strive for GX through cooperation in government, academia, and business; and to serve as a forum for discussing the transformation of the entire economic and social system and creating new markets accordingly. 2024 Participated in “TNFD Forum” Obtained “Net Zero Certification” from SBT TNFD is an international initiative that establishes a framework for companies and financial institutions to appropriately assess and disclose risks and opportunities related to natural capital and biodiversity. ESG Copyright © ASKUL Corporation. All Rights Reserved.
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⚫ ASKUL LOGIST Fukuoka Distribution Center’s efforts to employ persons with disabilities in cooperation with local communities Legal employment rate at 33.1%* (Legal employment rate of private companies is 2.5%) *Legal employment ratio calculated in units of business sites as of Nov. 20, 2024 Together with colleagues Together with customers Initiatives with business partners Social contribution activities ⚫ Diversity-oriented management ASKUL’s Declaration of Diversity (2015) ◼ Utilize diverse human resources Promote female active participation and enhance the ratio of female managers Declared a target of raising the ratio of female managers to 30% by 2025 Participated in 30% Club Japan Participated in Male Leaders Coalition for Empowerment of Women ◼ Promote diverse work styles Systems for leave and shorter working hours for childcare Systems for leave and shorter working hours for nursing care Teleworking system: Abolished the limit on the number of times per month for teleworking Flextime system: Eliminated the core time Learning support system to assist proactive learning Secondary work system Club activity system ⚫ Cultivating Corporate Culture and Awareness ◼ Share customer feedback Distribute internally opinions, requests, and suggestions received from customers to all employees. ◼ VOC (voice of customer) Seminar Regularly hold seminars inviting lecturers from other companies to learn improvement activities based on customer feedback. ◼ Meeting to listen to customers’ feedback Create opportunities to think and act from the customer's perspective by listening to audio recordings of customer service. ⚫ Improvement Activities Based on Customer Feedback ◼ Quality KPI Improvement Activities PDCA cycle is implemented for the purpose of "enhancing customer satisfaction by improving the quality of products and services.” Customer feedback is reported to and shared with management, and related department heads, and discussions are made regarding the evolution of products and services. ⚫ Customer Satisfaction Management Systems ◼ Declared Conformity to ISO10002 Declared conformity to ISO 10002, the international standard for customer satisfaction management systems. Customer service-related documents and regulations were created and organized, and construction and operation of management system is implemented. ⚫ Declaration of support and voluntary action for the “White Logistics” promotion campaign A movement to resolve the shortage of truck drivers and work to realize a more employee friendly working environment in which productivity in truck transportation is improved, efficiency in logistics is raised, and certain groups of drivers, such as women and people over the age of 60, will find it easy to work ⚫ Concluded SDGs Collaboration Agreement with City of Tsushima There are many points in common between Tsushima City’s SDGs Future City Plan and ASKUL’s approach to and direction of resource circulation. Therefore, the SDGs Collaboration Agreement was concluded in February 2021 to promote joint activities that make effective use of the resources and know-how of both sides to achieve the SDGs targets. ⚫ Project for looking into air and water environments In a joint project with S.T. Corporation, the ASKUL Group donates part of the sales of “S.T. Toilet Deodorant and Deodorant Spray,” exclusively sold by ASKUL, to associations that are engaged in improving air and water environments, thereby supporting their activities. The second case will be donated to approved specified NPO, Habitat for Humanity Japan. ⚫ ASKUL LOGIST: Provide free lunches Promotion of health-oriented management by providing free lunches to employees working in logistics, delivery, and headquarters so that they can work in good physical and mental health ⚫ Sustainable Procurement Policy Formulated in April 2021. The policy considers the environment, safety, human rights, and other issues aimed at striking a balance between the fulfillment of social responsibilities and sustainable development throughout the supply chain to ensure the sustainable provision of safe and reliable products to customers. Initiatives for Sustainability (Society) 37 ⚫ Supply Chain CSR Survey / Audits Based on Sustainable Procurement Policy, from July to October 2021, conducted a survey regarding the status of efforts of suppliers concerning the six areas: environment; worry-free and safe products; legal compliance and fair trade; human rights; the working environment; and response to risks and changes. In addition, CSR audits of factories of private brand manufacturer begun in April 2022. ⚫ Supporting East Japan Reconstruction through Impact Investment and Donations The Group supports projects in three prefectures in the Tohoku region that are intended to solve social problems and revitalize local communities. It does so with the aim of offering cyclical support through donations and impact investing in cooperation with manufacturers. The seventh recipient of the support has been selected as Hop Japan Co., Ltd. (Tamura City, Fukushima Prefecture), a company that brews craft beer using locally sourced hops. ESG Copyright © ASKUL Corporation. All Rights Reserved.
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Most Significant Strategies in Medium-term Management Plan from FY5/2022 to FY5/2025 38 Medium-Term Growth Scenario (From “From FY5/2022 to FY5/2025 Medium-Term Management Plan” announced in July 2021) 2. Strategic industries and expansion of product assortments 3. Synergies with Z Holdings Group 4. Reform of the platform 1. Establishment of the most powerful B-to-B EC website FY5/2021 FY5/2022 FY5/2023 FY5/2024 FY5/2025 Reform of the platform Synergies with Z Holdings Group Strategic industries and expansion of product assortments Establishment of the most powerful B-to-B EC website Expand product lineups centered on specialized products for customers in the two major industries of medical and nursing care, and manufacturing. The plan to double the number of items handled (18 million), quadruple in-stock products (330,000) and increase original products by 1.4 times (12,000), compared with those in May 2021. The two measures of the launch of the new ASKUL website and expansion of product assortments will drive double-digit B-to-B growth for FY5/2025. The Group will further concentrate its resources on its strengths of products, logistics and CRM by fully utilizing the infrastructure of Z Holdings in terms of attracting customers, site platform and payment systems. Strengthen cooperation with the Z Holdings Group to achieve regrowth after turning profitable. “Yahoo! mart by ASKUL,” a joint fast delivery business with the Z Holdings Group, was launched in January 2022. * Z Holdings Corporation reorganized the group on October 1, 2023, merged with Yahoo Japan Corporation, LINE Corporation, and other companies, and changed the corporate name to LY Corporation The plan to evolve the high-speed logistics, which is ASKUL’s strength, then realize “Delivering Tomorrow” for long-tail products through measures, such as structural reform of distribution centers, integration of B-to-B and B-to-C logistics, and application of DX to value chains. “ASKUL Tokyo DC,” the most advanced core center in eastern Japan, which will play an important role in realizing this plan, has begun operating in November 2022. The two EC websites, ASKUL for small and medium-size businesses and SOLOEL ARENA for mid- level and large corporations, are integrated into one. Aim to become the most powerful B-to-B EC website by not only combining the features of the two sites but also deploying the function to respond to the need from teleworking. In this way, increase the frequency of customers’ purchasing and the purchase amount per customer and enhance the customer retention rate by consolidating purchases. From [Financial Results for the Fiscal Year Ended May 2023 ] presentation material Copyright © ASKUL Corporation. All Rights Reserved.
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ASKUL Expansion of Product Assortments Enriching product information New ASKUL Website Pre- release of Some Function Enhancing navigation from search engines New Askul Website Evolution of UI/UX FY5/2022 FY5/2023 FY5/2024 FY5/2025 Number of Products Products in Stock Original Products 11.79 million 129,000 8,700 12.47 million 166,000 9,600 ⚫ASKUL Tokyo DC begins operations Growth Strategies of Medium-Term Management Plan 39Copyright © ASKUL Corporation. All Rights Reserved. The new Medium-Term Management Plan is scheduled to be announced during the current fiscal year. Increase Awareness of handling products for strategic industries Non- Consolidated ⚫Expansion of product information by DX ⚫Expand buying-around by opening of SOLOEL ARENA to public ⚫Strengthen online sales promotion such as listing ads ⚫Start of rebranding program ⚫Rollout of mass advertising ⚫New ASKUL Website goes live, the evolution of UI/UX ⚫Improvement and enhancement of ASKUL site (for SMEs) functions 14.08 million 258,000 11,010
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Products handled 18 million items Transformation from Office Supplies Mail Order Further Enhancement of Corporate Value Employees Small and medium-sized enterprises Sole proprietor Start-ups Medium-sized enterprises Large enterprises Manufacturing In-stock products (Kanto) 330,000 items Service Part 1 Advertising business for manufacturers+ Medical care and nursing care For manufactures For Medical care and nursing care Direct shipment from manufacturersIn-stock products (Kansai) 330,000 items ・・・ ・・・ B-to-B Medium-to Long-Term Growth Vision 40 To industry targeting Expansion of product assortments for strategic industries Expand into service areas Achievement Medium-Term Management Plan is a milestone and further enhance corporate value Fastest and most convenient purchase experience ✓ Create route that customers can purchase smoothly from external search ✓ 1-to-1 (personalized) marketing by utilizing Data x AI Deliver products quickly and reliably ✓ Significant expansion of in-stock products ✓ Improve delivery time accuracy for products shipped directly from manufacturers Have all the products that all customers need ✓ Expand product assortment to 18 million items ✓ Expansion of products for the 2 major strategic industries Value to be realized Specific InitiativesGrowth scenario Establishment of the most powerful B-to-B EC website Reform of the platform Strategic industries and expansion of product assortments Non- Consolidated Part 2 SaaS business for SMEs From [Financial Results for the Fiscal Year Ended May 2023 ] presentation material Copyright © ASKUL Corporation. All Rights Reserved.
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Glossary 41 B-to-B B-to-B stands for business to business and indicates transactions between companies B-to-C B-to-C represents business to consumer (customer) and refers to transactions between companies and consumers MRO MRO stands for Maintenance, Repair and Operations, and primarily refers to materials that serve as secondary materials (indirect materials), which used in the frontline operations of factories, construction sites, and other locations ASKUL Name of the internet mail-order service (accepts orders via facsimile) for small and medium-sized enterprises SOLOEL ARENA Name of the internet mail-order service for mid-tier and larger companies LOHACO Name of the internet mail-order service for general consumers launched in October 2012 in partnership with Yahoo Japan Corporation (currently LY Corporation) New ASKUL Website A new e-commerce site that integrates two sites; ASKUL for small and medium-sized enterprises, SOLOEL ARENA for mid-tier and larger companies. Full-scale operation started in July 2023, with SOLOEL ARENA customers gradually transitioning to the new ASKUL website over a period of approximately one year Advertising Business Service for manufacturers to place advertisements on our e-commerce site, etc. Distribution center abbreviations ASKUL Logi PARK as ALP, ASKUL Value Center as AVC, Demand Management Center as DMC, Demand Chain Management as DCM, ASKUL Tokyo Distribution Center as ASKUL Tokyo DC, and ASKUL Kanto Distribution Center as ASKUL Kanto DC Copyright © ASKUL Corporation. All Rights Reserved.
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Continuously Bringing Delight to Our Workplace, Life, the Planet and Tomorrow