Main business is BtoB that is commission of Web site development & operation of apparel brand EC

No.10Reference : START TODAY HP

Corporate Outline

Company START TODAY CO., LTD.

Foundation 1998

CEO Yusaku Maezawa

Stock 1,359 Million Yen 　 (March 2015)

Distribution Base Narashino city Chiba prefecture in Japan

Headcount 642 　 (March 2015)

Business

-B to B business　 Commission of Web site development & operation of apparel brand EC online shop- Media business　 Fashion coordinate service “WEAR”

Main business model

No.10Reference : START TODAY IR

It is main business model that earn commission feeby operating other apparel brand EC.

Apparel goods

ZOZOTOWN

$(Charge)

ZOZOTOWN

Commissioned shop

Purchase shop

Apparel goods Apparel goods

$ $

$

CommissionOperation

Platform

Apparel brand User

Released many apparel site and expanded overseasbut shifted apparel EC business.

No.10Reference : OKA-Lab made from START TODAY HP

Service history ‘98 ‘00 ‘02 ‘04 ‘06 ‘08 ‘10 ‘12 ‘14 ‘16

STMonline (CD EC site)

ZOZOTOWN (Apparel EC site)

ZOZOTOWER (EC site)

ZOZORESIDENCE (SNS)

ZOZONAVI (Shop search)

ZOZOQ&A (Q&A site)

ZOZOGALLERY (Idle screen)

ZOZOPEOPLE (Information site)

ZOZOVILLA (Highend EC)

ZOZOOUTLET (Outlet)

ZOZOTOWN.COM (Global site)

ZOZOTOWN CHINA (China site)

Open store at eBay (Korea)

ZOZOUSED (Used clothing EC)

LA BOO (Girls EC)

WEAR (Coordinate App)

Apparel free market App

End

ZOZOTOWNEPROZE

End

End

End

End

End

End

94%

6%

Apparel Other

Number of goods handled at ZOZOTOWN

No.10

* Number of searched goods at 26 March 2016 Other category includes interior, dish / kitchen, chandlery / hobby / sports, cosmetic / perfume and BGM / book / magazine.

START TODAY Handles mainly apparel goods.

747,681

47,662

Reference : OKA-Lab made from START TODAY HP

No.10

Sales (million yen) Operating profits (million yen)Line chart : operating profit margin (%)

7 8 9 10 11 12 13 14 150

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

7 8 9 10 11 12 13 14 150

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

Sales growth rate steady a little and Operating profitsgrows largely.

Reference : START TODAY IR

No.10

Cost rate / selling rate / Operating profit margin (%)

Operating profit margin grows by cut down cost rate largely.

Reference : START TODAY IR

7

8

9

10

11

12

13

14

15

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Cost rate Selling rate Operating profit margin

Segment sales (million yen)

No.10

START TODAY cuts down cost rate by shifting to commissioned shop business that do not have stock.

Reference : START TODAY IR

7 8 9 10 11 12 13 14 150

5,00010,00015,00020,00025,00030,00035,00040,00045,000

Commissioned shop Purchase shopEC consultant Other

Reference : “Ranking of EC sales (2014)”, Japan net economic journal each corporate IR

Corporate EC Sales (million yen, 2014)

No.10

In apparel EC sales, START TODAY leads largely competitors.

*START TODAY date is 2015 sales

START TODAY

Fast Retailing

MARUI

TSI HD

AdastriaUNITED

ARROWSWORLD

BAYCREW'S

MAGA SEEK

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000

Apparel company sales (million yen)

No.10

In apparel, START TODAY operating profit is large comparatively but sales is small.

Operating profit (million yen)

Reference : each corporate IR

Fast Retailing

WORLD

Wacoal

ＡＯＫＩ HD

TSI HD

UNITED ARROWS

CROSS COMPANY

Right On

KONAKA

HONEYS

SACS BAR

LOOK

START TODAY

0 500,000 1,000,000 1,500,000 2,000,000

0 40,000

80,000

120,000

160,000

No Date

No Date

No Date

Company EC sales (million yen)

No.10

Sales of other EC like Total EC & HE is big and company sales is also bigger than START TODAY.

Company sales (million yen)

Reference : “EC sales ranking (2014)”, Japan net economic journal each company IR

* START TODAY date is 2015 sales Yahoo date is 2015 consumer segment sales, Rakuten date is 2015 Japan EC segment sales

Amazon Japan(all)

Rakuten(all)

Askul(desk equip.)

Yahoo Japan(all)

SENSHUKAI(all)

YODOBASHI(HE)

NISSEN(all)

Dinos Cecile(all)

JOSHIN DENKI(HE)

ITOYOKADO(all)

Japanet TAKATA(HE)

MonotaRO （ construction ）KITAMURA(HE)

START TODAY(apparel)

Big Camera(HE)

BE FORWARD(car)

DHC(cosmetic/healthcare)

0 1000 2000 3000 4000 5000 6000 7000 8000 9000 0 500,000 1,000,000 1,500,000

Reference : EC trade field survey (1998-2014), Ministry of Economy, Trade and Industry

Japan EC market size (100 million yen)Line chart : E-commerced rate (%)

No.10

98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 140

20000

40000

60000

80000

100000

120000

140000

0.02.04.06.08.010.012.014.016.018.020.0

Japan EC market size is growing but E-commerced rate is 4% and low yet.

Reference : EC trade field survey (2014), Ministry of Economy, Trade and Industry

Segment market size of Japan EC (100 million yen)

No.10

Other Japan EC market size is also growing.

ApparelHE

Food & DrinkChandlery & Interior

Book / Movie / MusicCosmetic & Drug

AutomobileDesk equip.

Other

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000

'14 年 '13 年

[Company]-Released many apparel site and expanded overseas but shifted apparel EC business.-Handles only apparel goods-cuts down cost rate by shifting to commissioned shop business that do not have stock.

[Competitor]-In apparel, START TODAY sales is smaller yet.-Total EC and HE EC sales is big.

[Customer]-Japan EC market size is growing but E-commerced rate is 4% and low yet.-Other Japan EC market size is also growing.

[Problem]

Handles only apparel goods and problem is diversification of business.

START TODAY problem

No.10

ProductExisting New

Market

Existing

-Increase inflow from other EC site by joining T-point and electronics mass merchant point.

-Increase handling overseas brands.

Handle other goods (home electronics, cosmetic, healthcare food and interior etc.)

New

-Expand to apparel real mall business

-Expand to overseas apparel EC (M&A of overseas company)

-

START TODAY diversification of business

No.10

Problem solving direction

AEON segment sales(million yen)

No.10

(Ref.)AEON Developer business earns stable profit and profit margin is also high.

Reference : AEON IR(2015)

-40,000 -20,000 0 20,000 40,000 -40.0 -30.0 -20.0 -10.0 0.0 10.0 20.0

Operating profit(million yen)

Operating profit margin(%)

SM ・ DS

GMS

Service & Shop

Drug retail

Overseas

Small shop

Financial service

Developer

Other

0 2,000,000 4,000,000

TUTAYA book shop

No.10

(Ref.) Pull in more customers by luxury and comfortable shop concept.

TUTAYA electrics