Overview・Total transaction value : 56.0billion yen (+ 13.1% increase / Yoy) Operating Profit 6.0 billion (+11.1% increase / Yoy).・For Operating Profit, we have over achieved our corporate plan (not disclosed).

Total Transaction Value・Mall business Total transaction value : 48.3billion yen ( + 12.0% / Yoy).

Purchased Stock Business (Selected Items) : 370 million yen (-88.6% / Yoy)Purchased Stock Business (Used Clothing): 1.4 billion yen( + 55.2% / Yoy)

・Consignment business :46.5 billion (+ 19.5% / Yoy)・E-commerce Consulting Business Total Transaction Value : 7.7billion yen (+ 20.3% / Yoy).

Profitability・Operating profit margin (to total transaction value) : 10.8% (11.0% for FY2013).・Positive factors : Control over promotion strategies as well as increase in gross profit due to change in the sales mix・Negative factors : New logistics facilities caused an increase in fixed cost burden.

Topics・Merged Girl’s fashion site “LABOO” into ZOZOTOWN.(2014, end of July)・We have linked “Beauty Navi” to WEAR, introducing more than 800 salon staff as coordinators. (September)・Launched WEAR in 21 countries including the U.S. , U.K., Singapore, Malaysia. (September)・Having the first major update for WEAR, ~the Recommend Function~. (October)・Updating shipping cost policies, as well as offering free same day shipping, starting from October 1st . (October)

FY2014 Corporate Plan・Total transaction value : 132.4billion yen (+15.5% increase / Yoy) Operating profit: 13.71billion yen + (10.7% increase / Yoy)・The renewal for ZOZOTOWN, which we plan to have during the second half of the fiscal year will play an important roll.

1

Item FY2014 2Q FY2013 2Q YoY Change(%) Target ProgressRate(%)

Transaction value 56,073 49,572 +13.1% 132,400 42.4%

Net sales 17,620 17,467 +0.9% 41,700 42.3%

Gross profit 16,796 14,438 +16.3% - -

(% Transaction Value) 30.0% 29.1% +0.9% - -

SG＆A 10,753 8,996 +19.5% - -

(% Transaction Value) 19.2% 18.1% +1.1% - -

Operating profit 6,043 5,441 +11.1% 13,710 44.1%

(% Transaction Value) 10.8% 11.0% -0.2% 10.4% -

Recurring profit 6,082 5,454 +11.5% 13,720 44.3%

Net income 3,913 3,467 +12.9% 8,430 46.4%

(million)

3

Improvement in gross margin ratio

＋0.4bn

Profit increase effect ＋1.8bn

Increased SG&A costs due to growth in

Transaction Value▲1,1bn

Operating expenses for new logistics facilities

▲0,6bn Others ＋0.05bn

Operating Profit 6,0bn

Operating Profit5,4bn

Transaction Value

FY2013 1Q：24,300mn

FY2014 1Q：56,000mn

FY2013 2Q FY2014 2Q

4

(million)

FY2013FY2014 2Q

(as of September 30, 2014)

FY2013FY2014 2Q

(as of September 30, 2014)

Current assets 26,970 27,640 Current liabilities 12,710 11,011

cash and deposits 17,711 18,639 Deposit received for

consignment sales 7,071 6,274

Merchandize inventory 321 509 Noncurrent liabilities 1,250 1,317

Noncurrent assets 6,217 6,177 Total liabilities 13,961 12,329

Tangible assets 3,232 3,123 Shareholders' equity 18,695 21,000

Intangible assets 1,150 995 Treasury stock -3,276 -3,276

Investments and other assets 1,834 2,058 Total net assets 19,227 21,488

Total assets 33,188 33,818 Total liabilities and net assets 33,188 33,818

5

(million)

Item FY2014 2Q FY2013 2Q YOY Reasons for the Changes

Cash flows fromoperating activities 3,001 3,517 -516 Increase in corporation tax and

others (current term)

Cash flows frominvesting activities -412 -2,065 1,652 Investment in the new logistic

facilities (preceding term)

Cash flows fromfinancing activities -1,607 -1,067 -539 Increase in payout dividend

（current term)

Cash and cash equivalents

at the end of year18,639 12,613 6,025

Gross transaction value of new shops opened in FY2014 2QOnline mall business ( purchased stock & consignment sales ) : ¥ 430 million, (accounts for 0.9% of the total)

E-commerce consulting

Purchased stock

Consignment sales

21.5

36.6

56.1

80.2

95.8

114.6

132.4

0

100

200

300

400

500

600

700

800

900

1000

1100

1200

1300

1400

1500

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 2Q

27.3%

68.8%

3.9%

73.5%

19.0%

7.5%

78.1%

12.8%

9.1%

69.5%

30.5%

79.1%

9.1%

11.8%

（¥ bil）

56.079.9％

6.7％

13.4％

13.8%3.2%

83.1%

7

E-commerce consulting

Purchased stock

Consignment sales

YOY＋14.2%

19.1

21.6

27.2 27.8

24.3 25.2

31.5 33.5

27.2

0

20

40

60

80

100

120

140

160

180

200

220

240

260

280

300

320

340

FY2012 1Q FY2012 2Q FY2012 3Q FY2012 4Q FY2013 1Q FY2013 2Q FY2013 3Q FY2013 4Q FY2014 1Q FY2014 2Q

11.8%

79.6%

8.6%

10.6%

79.6%

9.8%

12.6%

79.0%

8.4%

12.1%

78.4%

9.5% 12.1%

79.2%

8.7%

13.8%

78.1%

8.2%

14.3%

79.7%

6.0%

13.4%

81.9%

4.7%

82.7%

14.7%

2.7%

（¥ bil）

28.8

12.9%

3.7%

83.4%

8

E-commerce consulting

Purchased stock

Consignment sales

Others

6,563 10,014 10,701 10,282 8,716

7,667

1,790

3,540

6,147

10,635

16,943 20,968 25,324

13,045

338

1,065

1,917

2,976

4,016

1,997

591

657

1,397

2,662

2,389

1,573

785

10,696

17,159

23,801

31,806

35,050

38,580

17,620

0

3,000

6,000

9,000

12,000

15,000

18,000

21,000

24,000

27,000

30,000

33,000

36,000

39,000

42,000

45,000

09/03 10/03 11/03 12/03 13/03 14/03 15/03 2Q

41,700

（¥ ｍil）

9

YOY＋3.2%

E-commerce consulting

Purchased stock

Consignment sales

Others

1,646 2,122 2,290 2,657

1,987 2,195 1,899 1,584 723 1,067

4,210

4,684

5,972 6,101

5,249 5,531

6,902 7,640

6,289 6,756

596

608

891

879

881 819

1,153 1,161

1,032

965

738

771

531347

417385

352417

356

429

7,191

8,186

9,686 9,985

8,536 8,931

10,308 10,804

8,401

9,218

0

2,000

4,000

6,000

8,000

10,000

12,000

FY2012 1Q FY2012 2Q FY2012 3Q FY2012 4Q FY2013 1Q FY2013 2Q FY2013 3Q FY2013 4Q FY2014 1Q FY2014 2Q

(¥ mil)

2,201 3,236

5,851

7,704 8,529

12,388

6,043

10.2%

8.8%

10.4%

9.6%

8.9%

10.8% 10.8%

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0.16

0.18

0.2

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 2Q

(¥ mil)

13,710

Item

FY2014 2Q FY2013 2Q YoY change

Increase decrease factorsAmount %Transaction

value Amount %Transactionvalue

%Transactionvalue

Payroll(*) 2,861 5.1% 2,452 4.9% 0.2% The number of employees in our group has grown from 580 to 618（ September, 2014.）

Shipping 2,169 3.9% 1,719 3.5% 0.4% Decreased unit price per shipment ( -3.7% / Yoy) . Same day shipping.

Payment collection 1,382 2.5% 1,173 2.4% 0.1%

Promotionrelated expenses 720 1.3% 816 1.6% -0.3%

Advertising 266 0.5% 498 1.0% -0.5% Promoting our buying services, using TV comercials. (June, 2014)

Reward pointsrelated expenses 454 0.8% 317 0.6% 0.2%

Outsourcing 1,193 2.1% 1,273 2.6% -0.5% Change in outsourcing scope caused budget transfer to personnel fees, also endingsublease had impact.

Rent expense 847 1.5% 351 0.7% 0.8% Annual lease expense for new logistics facilities, 1.25 billion yen (Accrues from Sep 2013)

Depreciation 375 0.7% 167 0.3% 0.4% Increase of depreciation burden due to the new logistics facilitie's operation

Others 1,201 2.1% 1,042 2.1% 0.0%

Total SG&A 10,753 19.2% 8,996 18.1% 1.1%

※Payroll includes salaries, bonuses, legal welfare expenses, welfare expenses, provision for retirement benefits, provision for bonuses, provision for directors' retirement benefits and subcontracting payroll

Operating profit margin （％ transaction value)

Operating profit

1,635

1,254

2,574

3,064 2,873

2,568

3,198

3,748

2,883 3,160

8.5%

5.8%

9.4%11.0%

11.8%

10.2%10.1% 11.2% 10.6%

11.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

FY2012 1Q FY2012 2Q FY2012 3Q FY2012 4Q FY2013 1Q FY2013 2Q FY2013 3Q FY2013 4Q FY2014 1Q FY2014 2Q

(¥ mil )

Promotion related expense（% transaction value）

SG & A （Quarterly）

(¥ mil)

4,130

5,268 5,291 4,939

4,183

4,813

5,945 6,122

5,167 5,585

4.6%

7.1%

5.4%

3.4%

1.3% 2.0%2.5% 2.2%

1.2% 1.3%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

FY2012 1Q FY2012 2Q FY2012 3Q FY2012 4Q FY2013 1Q FY2013 2Q FY2013 3Q FY2013 4Q FY2014 1Q FY2014 2Q

Number of total buyers = Active members and guest buyers who made at least one purchase within a yearGuest buyers = Unique buyers who made a purchase without registering as a memberActive members = Members who have made at least one purchase within a year

Guest buyers

Active members

1,564,519 1,662,132 1,738,669 1,776,099 1,848,888 1,901,165 1,962,371 2,036,803 2,127,592 2,217,050

494,012 571,937

613,519 713,815

808,579 901,080

1,037,802 1,178,934

1,278,527 1,305,525

2,058,531 2,234,069

2,352,188 2,489,914

2,657,467 2,802,245

3,000,173

3,215,737 3,406,119

3,522,575

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

FY2012 1Q FY2012 2Q FY2012 3Q FY2012 4Q FY2013 1Q FY2013 2Q FY2013 3Q FY2013 4Q FY2014 1Q FY2014 2Q

(members)

399430 451 452 474

517543

605 627 642

40

3939 40

40

3938

1618

17

439469

490 492514

556581

621645 659

0

100

200

300

400

500

600

700

FY2012 1Q FY2012 2Q FY2012 3Q FY2012 4Q FY2013 1Q FY2013 2Q FY2013 3Q FY2013 4Q FY2014 1Q FY2014 2Q

（shops)

Purchased stock

Consignment sales

WOMEN59％

MEN41％

WOMEN59％

MEN41％

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

0 20 40 60 80 100

Average age 31.8

（members）

■Gender ratio ■Geographical distribution ■Age distribution

Overseas 0.7％

Kyushu/Okinawa 9.0％

Kinki/Tokai 27.3％

Hokuriku/Koshinetsu 6.0％

Hokkaido 3.8％

Tohoku 6.0％

Kanto39.5％（Tokyo16.4%)

Chugoku/Shikoku 7.8％

43,620 42,960 42,608 43,163 43,406 43,700 43,646 44,154 43,405 42,972

6.4 6.7 6.7

6.9 7.1

7.2 7.3 7.5 7.4 7.5

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

FY2012 1Q FY2012 2Q FY2012 3Q FY2012 4Q FY2013 1Q FY2013 2Q FY2013 3Q FY2013 4Q FY2014 1Q FY2014 2Q

（¥）

Annual purchase piecesAnnual purchase amount

Average purchase amount per shipment = Transaction value / Number of shipments

Average retail price

Average purchase amount per shipment

12,522 11,842

13,421

10,629 10,201 9,376

12,389

10,674 9,791

9,031

6,210 5,244

7,624

5,955 5,677

5,011

7,089

5,773 5,444 4,742

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

FY2012 1Q FY2012 2Q FY2012 3Q FY2012 4Q FY2013 1Q FY2013 2Q FY2013 3Q FY2013 4Q FY2014 1Q FY2014 2Q

（￥）

YOY- 5.4%

YOY- 3.7%

YOY+17.5％

1,347,913

1,636,004 1,774,060

2,302,530

2,054,821

2,367,837

2,183,933

2,720,874

2,372,373

2,782,854

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

FY2012 1Q FY2012 2Q FY2012 3Q FY2012 4Q FY2013 1Q FY2013 2Q FY2013 3Q FY2013 4Q FY2014 1Q FY2014 2Q

（shipments）

58.8% 60.2%56.5%

52.8% 52.2% 50.5%

47.1%

44.9% 43.5% 42.8%

13.9%10.8%

7.9% 6.3%4.6% 3.6% 2.8% 2.4% 1.9% 1.7%

27.3% 29.0%

35.6%40.9%

43.2% 45.9%

50.1%52.7%

54.6% 55.5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY2012 1Q FY2012 2Q FY2012 3Q FY2012 4Q FY2013 1Q FY2013 2Q FY2013 3Q FY2013 4Q FY2014 1Q FY2014 2Q

Smart PhonesPC Feature Phones

Business Plan for FY2014 YoY change(%)

　Transaction value （\million） 132,400 15.5

　Net sales　（\million） 41,700 8.1

　Operating profit　（\million） 13,710 10.7

　Recurring profit　（\million） 13,720 10.4

　Net income　（\million） 8,430 8.1

　Earnings per share （\） 78.6 -

　Estimated dividends per share （\） 28 -

23

（％）

36.6

56.1

80.2

95.8

114.6

132.4

8.8

10.4 9.6 8.9

10.8 10.4

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

0

20

40

60

80

100

120

140

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014（Target）

（¥ bil）

Operating Profit Margin （% transaction value）

Transaction value

24

Start Today

Group Total Transaction Value Target : ¥132,400 million (＋15.5％ year on year)

Mall BusinessTransaction Value Target : ¥114,900 million (＋15.8％ year on year)

・Consignment Sales Business: ¥110,000 million ( +20.1%, yoy), Purchased Stock Business ¥4,900million (-36.1% yoy)

・ Improving availability of inventories･Expanding our ZOZOUSED Business (Sales target: 4,000 million yen)

E-Commerce Consulting BusinessTransaction Value Target : ¥17,500 million (＋13.5％ year on year)

･Improving the satisfaction level of existing partners・EC will not include the impact of Stores.jp PRO Business

Operating Profit MarginThe ratio of consolidated operating profit : 10.4 %(to the total transaction value, FY2013 10.8%)

・Increase of fixed cost burden arising from new logistics facilities operation・Increase in personnel (37 new graduates)･Investment relating to promotional activities is planned to be 2.0% of the total transaction value・Investing in fulfillment and system to enrich website functions

Start Today’s mid to long-term target

FY20XX term

Transaction value

Operating profit

36.6 56.1

80.2 95.8

114.6

132.4

500.0

0

50

100

150

200

250

300

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014(Target) FY20XX

（¥ bn）

500 billion

50 billion

Mid to long-term transaction value target

Transaction value

27

While ZOZOTOWN will continue to focus on the fashion e-commerce market,

we will expand the depth and breadth of the areas of fashion we cover

by continuing to offer e-commerce support to fashion brands.

28

・We have linked “Beauty Navi” to WEAR. (September,2014)

・Having the first major update for WEAR, ~the Recommend Function~. (October, 2014)

. 4 million downloads. (October, 2014)

Acquired 100% ownership of YAPPA Corporation

We have acquired 100% ownership of YAPPA Corporation, welcoming it as a wholly owned company. (2014, October)

30

・Launched in March, 2014

・STORES.jp PRO enables anyone to develop an online shopping

website easily, at a low cost.

・All fulfillment functions are operated at our warehouse “ZOZOBASE”

(Enabling the brands to have central control over their own site’s inventory, along with

ZOZOTOWN inventory)

・We are currently operating 10 sites.

3.■

total buyers

ZOZOTOWN http://zozo.jp/

Japan's Largest Online Retailer of Apparel and Accessories - ZOZOTOWN

・One of Japan’s largest online shopping site that offers fashion items.

・659 stores offering 2,355 brands. At any given time, more than 210,000 items are available with an average of 1,300 new items added each day.

・System, Design, to fulfillment, we have all functions built in house.

Purchased StockWe operate 17 original stores within ZOZOTOWN, which offer products we purchase from brands. Purchased stock business also includes our consolidated subsidiary CROWN JEWEL’s vintage clothing store “ZOZOUSED”, which offers products we purchase from customers.

Sales include = Transaction value generated by each store

Consignment SalesWe operate 642 shops as consignment sales businesses. This business model allows us to carry a certain amount of products from the brands, while giving us low inventory risk.

Sales include = Transaction value of each store x commission rate

B to B BusinessWe help develop and operate online shops on behalf of various brands, such as “Onward” and “United Arrows”. We currently provide back-end service to 29 stores.

Sales include = Transaction value of these online shops x commission rate

*Our total sales volume consists from the 3 types of businesses above, along with fee revenues from “ZOZOPREMIUM”

(premium membership based services), and “ZOZOCARD” (partner credit card fee revenues)

B to B Business 13.4％

Store Planning &Development Business

6.7%

Store Operation & Administration Business

79.9％

(Transaction value for FY2013)

This material has been created for the sole purpose of introducing the company’s business activities, and not for soliciting investments. The business forecasts and the future outlook described in the material is based on information currently available. The forecast includes uncertainties such as sudden changes, therefore actual results may differ.