Net Marketing : Financial Results for the Fiscal Year Ended June 30, 2021

Financial Results

for the Fiscal Year Ended June 30, 2021

Net Marketing Co. Ltd.

Stock Code 6175

Contents

0 1Financial Highlights for the Fiscal Year Ended June 30, 2021

0 2Earnings Forecast for the Fiscal Year Ending June 30, 2022

0 3Status of Business and Future Initiatives

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Topics for Fiscal Year Ended June 30, 2021

	‣ Demand for marriage matching services expanded, reflecting a situation in which people sought
		to find dependable partners, regardless of their age, due to the social uncertainty caused by the
		COVID-19 pandemic.
	‣ Improvements were made in the acquisition of new members, reflecting a rise in the level of
Media		recognition of the Omiai app due to industry-wide growth in demand, coupled with recognition
	measures that the Company started in the previous year.
Business	‣ A review was started for approval of IMS certification (The review is currently underway.)
	‣ Member information was partially leakeddue to unauthorized access from external sources in
		May.
	‣ Efforts were made to investigate the cause of the unauthorized access, prevent secondary
		damage and respond to inquiries from members, while suspending the placement of digital
		advertisements. (Establishment of an emergency countermeasure committee.)
	‣ Revenue from projects for the category of businesses with physical stores continued to
		decline in affiliate advertising after the fourth quarter of the previous fiscal year, reflecting the impact
		of the COVID-19 pandemic.
	‣ New orders received remained strong with respect to those from businesses types and categories
Advertising		that tend to be less affected by the COVID-19 pandemic, reflecting new sales activities that the
	Company resumed and strengthened in the fourth quarter of the previous fiscal year.
Business	‣ Efforts were made to develop projects related to the stay-at-homeadvisory, such as financial
		services in existing affiliate advertising projects.
	‣ Sales expanded as a result of efforts to strengthen programmatic advertising, a business area in
		which the Company is unable to obtain a reasonable market share.
	‣ As a result of the above, the project portfolio was optimized little by little and the impact of COVID-
		19's spread on the business declined gradually.

©2021 Net Marketing Co. Ltd. All right reserved.

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Financial Highlights for the Fiscal Year Ended June 30, 2021

Financial Results

Financial Highlights	Year on Year

Sales and income decreased year on year due to changes in the business environment such as the spread of COVID-19.

However, net sales recovered steadily after the fourth quarter of the previous fiscal year in which the COVID-19 pandemic, showing a gradual decline in the impact of the spread of COVID-19.

				(Million yen)
		2020.6	2021.6	Increase/
		Actual	Actual	Decrease (%)
	Net Sales	14,363	14,011	-2.5%
	Gross Profit	4,570	4,521	-1.1%
	Gross Profit Margin	31.8%	32.3%
	Operating Income	735	584	-20.5%
	Operating Income Margin	5.1%	4.2%
	Ordinary Income	747	592	-20.7%
	Net Income	509	336	-34.0%

©2021 Net Marketing Co. Ltd. All rights reserved.

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