Mercari, Inc. · TSE:4385

Mercari — Q4 2025 Earnings Presentation

55 slides from Mercari's earnings presentation, Aug 5, 2025

1. Slide 1: Mercari Presentation Material FY2025.6

   mercari Presentation Material FY2025.6

2. Slide 2: Group Mission

   Group Mission Financial Results Presentation Material Circulate all forms of value to unleash the potential in all people 2

3. Slide 3: Table of Contents

   Table of Contents 1 FY2025.6 Summary 2 Progress Toward Mid-Term Policy for FY2027.6 Financial Results Presentation Material 3 FY2025.6 Financial Overview 4 FY2026.6 Financial Forecast/Business Objectives 5 Financial Policy 6 Appendix 3

4. Slide 4: FY2025.6 Summary

   FY2025.6 Summary 4

5. Slide 5: Achievement Status of Consolidated Business Forecast

   1 Achievement Status of Consolidated Business Forecast ■ Achieved record core operating profit for a landing that exceeded business forecasts ■ Achieved record revenue in spite of not reaching our revenue target due to a slowdown of growth rates in the Marketplace and US businesses Revenue Core Opera

6. Slide 6: FY2025.6 Summary

   1 FY2025.6 Summary Business Objectives ● Essentially aim for top-line growth that will lead to increased profits at the Start of FY2025.6 ● Expand businesses centered around Group synergy Expanded Group Synergy by Achieved Record-Breaking Profits Future Challenges Financial Results Presentation Materi

7. Slide 7: Progress Toward Mid-Term Policy for FY2027.6

   Progress Toward Mid-Term Policy for FY2027.6 7

8. Slide 8: No Change to Mid-Term Policy for FY2027.6

   2 No Change to Mid-Term Policy for FY2027.6 Aim essentially for top-line growth associated with increased profitability Consciously balance growth and profitability Revenue: Prioritize high top-line growth Double-digit Financial Results Presentation Material (Billion JPY) CAGR growth1 187.4 192.6 172.

9. Slide 9: FY2027.6—Mid-Term Objectives of Main Businesses (Updated)

   2 FY2027.6—Mid-Term Objectives of Main Businesses (Updated) Group-wide Mid-Term Objectives ■ Work with external partners to realize an ecosystem ■ Promote global expansion by growing our US business and strengthening crossborder transactions ■ Create a borderless organization where talent from all o

10. Slide 10: Drivers of Revenue Growth

    2 Drivers of Revenue Growth その他事業 Other business US Get back on track for growth Ensure steady growth Financial Results Presentation Material Other business Fintech of credit business centered on Mercard US Fintech Stimulate transactions by strengthening the core product experience Increase the supp

11. Slide 11: Our Innovations in AI and Evolution into an AI-Native Company

    2 Our Innovations in AI and Evolution into an AI-Native Company Dramatically change our organization and product with AI at the base of all our operations to establish a firmer competitive advantage Established dedicated AI team Launched a team specializing in generative Started improving our user ex

12. Slide 12: Our Efforts to Become an AI-Native Company

    2 Our Efforts to Become an AI-Native Company ■ We are already seeing dramatic improvements in productivity due to AI ■ We will continue to advance product innovation and organizational reform Product innovation Current Progress on AI Financial Results Presentation Material Utilization Integrate AI in

13. Slide 13: FY2025.6 Financial Overview

    FY2025.6 Financial Overview 13

14. Slide 14: FY2025.6 Achievement Status of Consolidated Results

    3 FY2025.6 Achievement Status of Consolidated Results Forecast and Guidance for each Business ■ Core operating profit landed at 27.5B JPY, exceeding the maximum amount of the financial forecast and firmly strengthening the Group’s profitability Financial Forecast Results Financial Results Presentation M

15. Slide 15: Consolidated Results (Full Year)

    3 Consolidated Results1 (Full Year) Revenue Core Operating Profit3 (Billion JPY) (Billion Impact JPY) where a portion of point-related expenses is of change (Billion JPY) now deducted from revenue2 (Impact in FY2025.6 was 3.13B JPY; impact in FY2024.6 was 1.22B +46% Financial Results Presentation Mat

16. Slide 16: Consolidated Results (Quarterly)

    3 Consolidated Results1 (Quarterly) Revenue Core Operating Profit3 Impact of change where a portion of point-related expenses is now deducted from revenue2 (Impact in FY2025.6 Q4 was 1.75B JPY; impact in FY2024.6 Q4 was (Billion JPY) 1.22B JPY. YoY growth before deductions: +5%) (Billion JPY) 39% Fin

17. Slide 17: Marketplace—Summary

    3 Marketplace—Summary1 ● Aim for a GMV growth rate of around +10% YoY and an adjusted1 core operating margin2 of 37–42% through strong growth of crossborder transactions and B2C, in FY2025.6 addition to steady growth of the C2C business Business ● Mercari Hallo: Establish an environment enabling the

18. Slide 18: Marketplace—Results (Full Year)

    3 Marketplace—Results (Full Year) 3 Adjusted5 Core Operating GMV1/MAU2 Revenue Profit6/Margin Impact of change where a portion of point-related expenses is now (Billion JPY) Excluding Mercari Hallo: GMV (Billion JPY) +0.3% deducted from revenue 4 (Impact in FY2025.6 was 1.5B JPY; impact in FY2024.6 w

19. Slide 19: Marketplace—Results (Quarterly)

    3 Marketplace—Results (Quarterly) GMV1/MAU2 Revenue3 GMV (Billion JPY) (Billion JPY) Impact of change where a portion of point-related expenses is MAU (Million users) now deducted from revenue4 (Impact in FY2025.6 Q4 was 360M JPY; FY2024.6 Q4 was 1.22B. +0.3% YoY growth before deductions: +4%) YoY F

20. Slide 20: Marketplace—Results (Quarterly)

    3 Marketplace—Results (Quarterly) Adjusted1 Core Operating Profit2/Margin Profit and Cost Composition (Billion JPY) Excluding Mercari Hallo: Adjusted core operating profit Adjusted core operating profit: 12.1B JPY Adjusted core operating margin Adjusted core operating margin: 43% 3 4 Financial Results P

21. Slide 21: Fintech—Summary

    3 Fintech—Summary Transition to a phase of continuously increasing profit through steady FY2025.6 accumulation of credit balance; aim for core operating profit1 of 3.0B JPY Business Objectives or higher Financial Results Presentation Material Achieved high growth of both sales and profits, with core op

22. Slide 22: Fintech—Results (Full Year)

    3 Fintech—Results1 (Full Year) Revenue Core Operating Profit3 Impact of change where a portion of point-related expenses is now deducted from revenue2 (Billion JPY) (Impact in FY2025.6 was 1.3B JPY; YoY revenue growth before (Billion JPY) deductions: +18%; adjusted YoY revenue growth before deduction

23. Slide 23: Fintech—Results (Quarterly)

    3 Fintech—Results (Quarterly) Revenue Breakdown of Revenue Impact of change where a portion of point-related expenses is now (Billion JPY) deducted from revenue2 (Billion JPY) (Impact in Q4 was 1.1B JPY; YoY revenue growth before deductions: +19%; adjusted YoY revenue growth before deductions: +31%)

24. Slide 24: Fintech—Results (Quarterly)

    3 Fintech—Results (Quarterly) Core Operating Profit1 Advertising Costs (Billion JPY) Core operating profit (Billion JPY) Adjusted core operating profit2 Financial Results Presentation Material 1. Core operating profit is defined as IFRS operating profit excluding other income/expenses, etc. 24 2. Profit af

25. Slide 25: Fintech—Expansion of Credit Balance

    3 Fintech—Expansion of Credit Balance Credit Balance1 and Collection Rates2 (Billion JPY) +32% Financial Results Presentation Material YoY Smart Money Lump-sum payment/installment payment (2 installments)3 Fixed-amount payment/installment payment (3 or more installments)3 11-month collection rates +

26. Slide 26: US—Summary

    3 US—Summary FY2025.6 Commit to breaking even and aim to get back on track for growth Business Objectives Financial Results Presentation Material In addition to continuing as Group CEO, Shintaro Yamada has also assumed the role of US CEO from H2. As a result of placing focus once again on strengthen

27. Slide 27: US—State of the Business

    3 US—State of the Business ■ Under the new leadership beginning in H2, YoY GMV growth rate reversed direction as a result of reviewing strategies ■ Profit and cost structure improved significantly GMV Continued to Trend Upward Successfully Broke Even Financial Results Presentation Material ■ YoY GMV g

28. Slide 28: US—Results (IFRS/Full Year)

    3 US—Results (IFRS1/Full Year) GMV2/MAU3 Revenue Core Operating Profit4 GMV (Million USD) (Billion JPY) (Billion JPY) MAU (Million users) Financial Results Presentation Material -17% YoY -17% YoY -20% YoY 1. Adopted IFRS in FY2024.6 and disclosed IFRS numbers for FY2023.6 as well to enable YoY compar

29. Slide 29: US—Results (IFRS/Quarterly)

    3 US—Results (IFRS1/Quarterly) GMV2/MAU3 Revenue Core Operating Profit4 GMV (Million USD) (Billion JPY) (Billion JPY) MAU (Million users) Financial Results Presentation Material -17% YoY -13% YoY -17% YoY 1. Transitioned to IFRS notation starting FY2024.6 2. Aggregate transaction value after adjustin

30. Slide 30: FY2026.6 Financial Forecast/Business Objectives

    FY2026.6 Financial Forecast/Business Objectives 30

31. Slide 31: Changes to Disclosure Policy

    4 Changes to Disclosure Policy Discontinuation of Discontinuing adjustments based on internal transactions Adjusted Operating with Marketplace/Fintech2; will disclose guidance and results Profit1 based on (unadjusted) core operating profit going forward Capitalization of Capitalizing development labor

32. Slide 32: FY2026.6 Consolidated Financial Forecast

    4 FY2026.6 Consolidated Financial Forecast ■ For revenue, while the revenue growth rate for FY2026.6 is expected to be in the single-digit range, our mid-term policy for FY2027.6 to aim for double-digit CAGR growth driven by Fintech and crossborder transactions has not changed; core operating profit

33. Slide 33: FY2026.6 Business Objectives

    4 FY2026.6 Business Objectives Consolidated 連結 Guidance Policy/Major Initiatives ● Make preparations for FY2027.6 Revenue Core operating profit1 ● Essentially aim for top-line growth that will lead to increased profits 200.0–210.0B JPY 28.0–32.0B JPY Financial Results Presentation Material ● Expand bu

34. Slide 34: Marketplace—Business Objectives

    4 Marketplace—Business Objectives Objectives ● While prioritizing enhancing the product’s core experience, also emphasize strengthening crossborder transactions to lay the foundation for accelerating GMV growth in FY2027.6 and Financial Results Presentation Material beyond ● Aim for GMV growth rate

35. Slide 35: Marketplace—Enhancing the Product's Core Experience

    4 Marketplace—Enhancing the Product’s Core Experience ■ We will prioritize enhancing the product’s core experience, which supports the growth of C2C, B2C, and crossborder transactions, and establish Mercari as a safe and secure marketplace that is easy for anyone to use Establishing a Safe and Secur

36. Slide 36: Marketplace—Accelerating Growth with Crossborder Transactions

    4 Marketplace—Accelerating Growth with Crossborder Transactions ■ The Toys, Figurines & Merchandise category makes up 60% of crossborder transactions on Mercari, with items unique to Japan particularly popular ■ The market size of the Entertainment & Hobbies category, which is Mercari’s strength, wa

37. Slide 37: Marketplace—On-Demand Work

    4 Marketplace—On-Demand Work ■ Improve profitability by establishing fees as a source of revenue and carrying out disciplined investments ■ Optimize crew acquisition by polishing the product and carrying out effective marketing Crew Acquisition Partner Acquisition Financial Results Presentation Materi

38. Slide 38: Fintech—Business Objectives

    4 Fintech—Business Objectives Objectives ● Establish the foundation to become a product that is chosen by users for all Financial Results Presentation Material payment/credit use cases ● Aim for core operating profit of 5.0–7.5B JPY Increasing Users Increasing Usage Leveraging Partnerships Through Me

39. Slide 39: Fintech—Focus Areas

    4 Fintech—Focus Areas Increasing Mercard Increasing Usage Partnerships Holders Amount ■ The number of issued ■ Leverage partnerships to realize ■ Aim to increase everyday usage Mercards exceeded 5 million as flexible feature expansion; of payment/credit services Financial Results Presentation Materia

40. Slide 40: US—Business Objectives

    4 US—Business Objectives Objectives ● Continue to break even while aiming for positive full-year GMV growth YoY by Financial Results Presentation Material enhancing the product’s core experience and distinguishing us from our competitors by using category-specific strategies Distinguishing Mercari fr

41. Slide 41: US—Category-Specific Strategies

    4 US—Category-Specific Strategies ■ To firmly distinguish Mercari from our competitors in fashion categories, which have the highest GMV share, we will offer competitive shipping options and carry out initiatives such as a proof-of-concept of a clothing exchange program in FY2026.6 ■ In the mid-to-long

42. Slide 42: Financial Policy

    Financial Policy 42

43. Slide 43: Approach to Capital Allocation

    5 Approach to Capital Allocation ■ Alongside our transition to a phase of profit growth, we expect retained earnings to become positive in FY2026.6 if progress goes according to our plans Internal Reserve Levels Capital Allocation Priorities Financial Results Presentation Material ■ For cash other th

44. Slide 44: Dividends from US Subsidiary

    5 Dividends from US Subsidiary ■ We published a timely disclosure on the same date that we released the FY2025.6 Q4 financial results Recording of Corporate Income Tax Expense (Benefit) ■ As the amount of equity required to be held according to US laws has decreased and our US business has recorded a

45. Slide 45: Appendix

    Appendix 45

46. Slide 46: Board of Directors Structure

    6 Board of Directors Structure ■ Appointing Outside Directors with a wealth of knowledge and experience in a variety of areas to realize a transparent and highly diverse organization 12 Directors Directors (4) Independent Outside Directors (8) Financial Results Presentation Material Shintaro Yamada

47. Slide 47: Governance Structure (Independent Outside Directors)

    6 Governance Structure (Independent Outside Directors) Financial Results Presentation Material Makiko Shinoda Takuya Kitagawa Daiken Tsunoda Chair of the Compensation Chair of the Audit Committee Committee Background • The Long-Term Credit Bank of Japan, Limited (currently SBI Shinsei • Managing Exe

48. Slide 48: Governance Structure (Independent Outside Directors)

    6 Governance Structure (Independent Outside Directors) Financial Results Presentation Material Kazuhiko Toyama Shiho Konno Kumi Fujisawa Chair of the Nominating Committee Background • Boston Consulting Group • Audit and Supervisory Board Member of Yahoo Japan Corporation • Joined KOKUSAI Investments

49. Slide 49: Governance Structure (Independent Outside Directors)

    6 Governance Structure (Independent Outside Directors) Financial Results Presentation Material Mayumi Umezawa Kikka Hanazawa Background • Joined the Tokyo office of Tohmatsu & Co. (currently Deloitte Touche • General Manager, Itochu Fashion System Co., Ltd. New York office Tohmatsu LLC) • Vice President

50. Slide 50: FY2025.6—ESG Summary

    6 FY2025.6—ESG Summary ■ The greenhouse gas emission reduction targets set by our Group was approved as a science-based target by the Science Based Targets initiative (SBTi) ■ In addition to Mercari’s inclusion in five of the six ESG indices featuring Japanese companies adopted by GPIF, we responded

51. Slide 51: Major Itemization of Consolidated BS

    6 Major Itemization of Consolidated BS ■ We will continue to leverage various methods of financing and appropriately control our balance sheet to maintain a sound financial foundation CB + borrowings Convertible bonds and long-term (excluding funds financed by liquidating borrowings Primarily deposits

52. Slide 52: Approach to Financing for Credit Services

    6 Approach to Financing for Credit Services ■ We plan to expand and diversify financing in sync with the growth of our credit services centered on non-recourse1 receivable liquidation, in which financing is based on confidence in the actual credit receivable for Merpay Smart Payments Financial Results

53. Slide 53: Business Segments

    6 Business Segments ■ We moved MVNO from Marketplace to a new segment under Japan Business1 called “Other Bets,” established based on nature of profitability Japan Business1 Financial Results Presentation Material New Marketplace Fintech Other Bets US Others Adjustments C2C Payment MVNO C2C Kashima A

54. Slide 54: Marketplace—Cost Composition (Quarterly)

    6 Marketplace—Cost Composition (Quarterly) (Billion JPY) Financial Results Presentation Material 1 2 J GAAP IFRS 1. In accordance with accounting standards, starting in FY2024.6 Q4, a portion of point-related expenses (attributed to advertising costs) is deducted from revenue figures and advertising

55. Slide 55: Disclaimer

    Disclaimer This material is compiled for the purpose of providing information only, and is not intended to solicit readers to purchase securities in the Company. This material has been prepared based on information gathered at the time of its preparation and is not in any way intended as a commitmen

Mercari — Q4 2025 Earnings Presentation on 6ix