Message to investors

GMO Pepabo, Inc.  Representative Director and CEO

We wish to express our sincere appreciation of all of our shareholders for the continued support you have shown.

In the fiscal year ended December 31, 2021, we posted record-high net sales due to the steady performance of recurring-type services such as Lolipop! and Color Me Shop, although gross merchandise value (GMV) did not reach the target in non-recurring-type services such as SUZURI and minne due to the saturation of the market created by stay-at-home demand. In addition, operating expenses including personnel expenses increased because we began to reinforce the structure for EC-related services in the second half of the previous year.

As a result, consolidated net sales increased 7.9% year on year, to 11,800 million yen, and operating profit declined 4.2% year on year, to 880 million yen.

In the fiscal year ending December 31, 2022, we aim to increase the profitability of recurring-type services and increase the GMV of EC-related services with a focus on non-recurring-type services. Further, the plan is to enable FREELANCE in the Financial Support business to move into black.

Reflecting the above, our targets are consolidated net sales of 11,400 million yen and operating profit of 1,140 million yen.

We will continue striving to expand our business by strategically investing in EC-related services and other services, with continuous revenues from recurring-type services as the foundation of the business, in our efforts to enable the business to grow.

*We are applying the Accounting Standard for Revenue Recognition, effective from the beginning of the first quarter of the fiscal year ending December 31, 2022. The forecast figures are after the application of the standard. For figures and other information after the application of the standard, please check Results Presentation for Fiscal Year 2022 First Quarter of GMO Pepabo, Inc.

Finally, of the new market segments of the Tokyo Stock Exchange that were introduced in April 2022, we plan to be listed on the Prime Market. As a company that has selected the Prime Market, we will push forward with the achievement of sustainable growth and increase of corporate value, so that our shareholders can invest in us with a sense of security. Your continued guidance and cooperation are very much appreciated.

GMO Pepabo, Inc.
Representative Director and CEO
Kentaro Sato