PRESENTATIONMATERIALAPR.2020–JUN.2020

FY2020.6 Q4

ESG & Closing

Appendix

Table of Contents

1 FY2020.6 Summary

3

FY2021.6 Business Objectives4

2

FY2020.6 Financial Highlights/Results

5

6

Medium-Term Vision

3

FY2020.6 Summary

FY2020.6 Business Objectives Announced at Earnings Results Meeting for FY2019.6 Q4 Consolidated: Establish the 3 pillars of Mercari JP, Merpay, and Mercari US in this crucial year to set the foundation to achieve the mission with continuous investment for further growth

Mercari JP: Grow further by expanding listing Merpay: Obtain an unchallenged position in the cashless market Mercari US: Achieve monthly GMV of 100 million USD

1 FY2020.6 Summary—Highlights

Summary and Highlights Consolidated: Delivered solid growth in each business to establish the 3 pillars, and turned profitable for a time in Q4 Mercari JP: Reaccelerated GMV growth rate with listing initiatives and the impact of COVID-19, and recorded a full-year adjusted operating margin of 32% Merpay: Moved forward with credit business and business alliances, and shifted gears to enhance monetization Mercari US: Achieved monthly GMV of 100 million USD with the impact of COVID-19 among other factors, and decided to continue the business with the path to profitability in sight

4

Announced business alliances with DOCOMO and

Shinkin Central Bank

FY2020.6 Summary—Initiatives of the 3 Businesses1

● Invested actively to pursue future growth and worked to establish the 3 pillars in this crucial year

Mercari JP

Merpay

Mercari US

Achievedmonthly GMV of100 million USD

Fully launched business alliances, includingID integration with

DOCOMO, etc.

Strengthened marketing campaigns focused onbranding and growth

Improved the balance between listing and buying and

improved GMV growth rate

Strengthened marketing campaigns to encourage

recognition and use

Merged with Origami

Strengthened initiatives to enhance

listing

Q1 Q2 Q3 Q4FY2020.6

Impact of COVID-19

5

Strengthening Listing

GMV 625.9 billion JPY

(YoY +28%)

Adjusted Operating Margin

32%

FY2020.6 Summary—Mercari JP1

● Reaccelerated the GMV growth rate before being impacted by COVID-19 by improving the balance between listing and buying

● Reaccelerated both listing and buying with the impact of COVID-19● Created a more solid foundation supporting growth of the Mercari Group

1. Mercari Workshops canceled due to COVID-19

Product Initiatives Offline Initiatives

Marketing Initiatives Business Alliances

● Inventory List● Catalog Listing

● Mercari Workshops1

● Mercari Station● Sales of packaging materials

at convenience stores, etc.● TsutsuMer Spots

● Promotions aimed towards listers

● Business alliances with DOCOMO, etc.

6

7

Aim to become a payment service used in people’s everyday life by expanding users and merchants

Upfront InvestmentPhase

1

Phase

2Synergy with Mercari

● Build more trust with accumulated transaction data and provide added value to individuals and organizations

● Launch fixed-amount payment (installment payment) service

Profitable MerpayPhase

3

Phases to focus in FY2020.6

● Expand listing on Mercari byusing Merpay

● Enhance Merpay SmartPayments

1

Shift gears to enhance monetization in FY2021.6 and beyond

FY2020.6 Summary—MerpayCarried out upfront investment actively to acquire users in order to become a payment service used in people’s everyday life in H1, and shifted gears to enhance monetization in H2

+ Changes in external environment

FY2020.6 Summary—Mercari US1● Accelerated growth with marketing/product initiatives helped by changes in the external

environment, and achieved the monthly GMV target of 100 million USD, as well as an MAU of4.2+ million

● Will continue the US business next fiscal year and beyond

8

+

Awareness- Approx. 1.8 times increase in

awareness1 due to strengthened brand marketing

- New shipping option- Same-day delivery (Mercari Now)

- Authenticity- Price suggestion

Focus areas

Making Selling Easy

Price Confidence

1. As of February 2020. Based on a survey conducted by Mercari to approximately 1,000 smartphone users between ages 18 and 54 in January 2019 and February 2020. Survey assessed awareness of 11 companies providing online marketplaces for users to buy and sell used items, including The RealReal, Mercari, Poshmark, and LetGo. Respondents were allowed to select multiple choices.

Achieved monthly GMV of100 million USD

284 million USD in Q4 (YoY +183%)

Q1 Q2 Q3 Q4

Medium-Term Vision

9

10

Become indispensable to the creation of a circular economy

Medium-Term Vision— Build a Circular Economy by Integrating Primary and Secondary Distribution

2

11

The circular economy Mercari strives for

● Primary distribution (manufacturers, retailers, etc.)● Secondary distribution (Mercari)

Ex: Optimize production plans by providing user purchasing and preference data from Mercari

Ex: Make it easy for users to list items on Mercari using purchase history from primary distribution players

● Provide primary distribution players (manufacturers, retailers, etc.) with a secondary distribution player’s (Mercari’s) user purchasing and preference data1, enabling primary distribution players to utilize data in product development, optimize processes from production to sale, and accurately forecast demand　

1. Considerations made for personal information2. “Upcycle” refers to converting scrap material and items that are no longer used into new material and better products to increase their value

Supply Manufa-cturing

Sales

Transportation, Distribution

Consumption, Use

Collection

ShareProductdesign Transportation,

Distribution

Reuse,Repair,

Upcycle2

Residualwaste

Medium-Term Vision—Continuous Investment in AI2

Mercari’s Evolution into an AI Tech Company

12

2 Medium-Term Vision—Core Investment Areas

● Develop talent internally

● Invest in measures to strengthen D&I1

● Integrate primary and secondary distribution

● Strengthen efforts to make Mercari safe and secure

● Further topline growth, turning US business profitable

1. “Diversity & Inclusion”

TechnologyTalent Global

13

2 Medium-Term Vision—Summary

強固な3本柱の飛躍

Consolidated:- Become indispensable to the creation of a circular economy- Further build up the Group’s 3 pillars and create footholds towards global expansion

Mercari JP: - Continue to integrate primary and secondary distribution, simplify the listing process, and

implement initiatives to address 36 million untapped listers- Aim for adjusted operating margin of 40% or higher, while marking continued growth in GMV

Merpay:- Build trust and enhance monetization by expanding from payment services to

next-generation financial services- Strengthen synergy between Mercari and Merpay

Mercari US:- Secure a position differentiated from competitors, as the easiest and safest selling app- Aim for profitability by continuing to grow top line while managing investment

14

FY2020.6 Financial Highlights/

Results

15

3 FY2020.6 Full Year (July–June) KPI Summary

Consolidated

76.2 billion JPY(YoY +48%) (YoY -7.1 billion JPY)

Mercari JP

GMV1, 2

Adjusted Operating Margin

YoY +28%

32% (YoY +11ppts)

Merpay Mercari US

GMV1

681 million USD (YoY +88%)

4.2+ million (YoY +112%) MAU5

16

1. Aggregated transaction value after cancellation 　 2. CARTUNE included 　 3. Aggregated number of unique users registered for Merpay Electronic Money, or used either QR Code Payments, Online Payments, or Merpay Smart Payments (formerly Merpay Deferred Payments) as of June 2020 　 4. Merchants scheduled to implement Merpay included. The number of merchants (iD/QR) as of FY2020.6 Q3 was 1.7 million including overlaps. From now on, we plan to announce the number excluding overlaps　5. Average MAU from April to June 2020 including Web

-19.3 billion JPY

Number of Users3

Number of Merchants (iD/QR)4

Net Sales Operating Income

7+ million

(Excluding overlaps)

1.61 million

17

3Financial Highlights—(Consolidated) Q4 (Apr–Jun)Net Sales and Operating Income

YoY +60%

● Increased net sales due to listing initiatives and the impact of COVID-19, turning profitable at the operating level

171. Numbers are rounded down to the billion, and coupon amount for FY2020.6 Q1–Q3 is indicated as zero.

Operating IncomeNet Sales1

(Billion JPY)(Billion JPY)

Primary Factors Behind the Consolidated OperatingIncome in Q4 (Apr–Jun) (QoQ)

● Delivered a temporary consolidated operating income in Q4 (Apr–Jun) because of increase in net sales due to the impact of COVID-19 among other factors, and a decrease in promotion costs and SG&A expenses as part of the move to control investment as the impact of COVID-19 was uncertain

3

Factors Behind Improvements to Operating Income

18

(Billion JPY) 0.9

調整後営業利益率

3 Impact of COVID-19 in Q4—Summary

Consolidated Mercari JP

Merpay Mercari US

● In Q4, moved to control investment as the impact of COVID-19 was unclear

● Saw decrease in ticket sales, etc. for Kashima due to suspended J.League games

● Had concerns about how the strong call for people to self-isolate would impact the number of transactions and transaction value at merchants in Q4, but saw no major negative impact

● Boosted listings and GMV after the state of emergency declaration on April 7 and through Golden Week; have been observing the post-state of emergency effects since mid-May

● Observed a shift from outdoor to indoor categories due to lifestyle changes

● Increased number of transactions since the lockdown

● Observing the effects of lockdowns relaxing in some states

19

調整後営業利益率 調整後営業利益率 調整後営業利益率

Impact of COVID-19 in Q4—Shift in User Activity3

Mercari JP Merpay Mercari US

● Increase in ARPU1 (per buyer)Transaction unit price: flat YoYNumber of transactions: increasing YoY

● Increase in new registered

users, as well as users with past transaction experience returning to Mercari

● No major negative impact to GPV (gross payment volume), number of payments, etc., but will continue to monitor trends going forward

● Increase in ARPU1 (per buyer)Transaction unit price: flat YoYNumber of transactions: increasing YoY

● Increase in new registered

users, as well as users with past transaction experience returning to Mercari

(Trends overall similar to Mercari JP)

201.. Average revenue per user

3 Impact of COVID-19 in Q4—Category Shift● Observed shift in GMV breakdown by category, with indoor categories comprising a larger proportion

than outdoor due to lifestyle changes, while also seeing signs of recovery in the Women’s category in the latter half of the quarter

Mercari JP Mercari USSaw QoQ increase in Entertainment and Hobbies and Electronics in Q4 overall, while also seeing signs of recovery in the Women’s category in the latter half of the quarter

Saw increase in Electronics and Toys in Q4 overall, while also seeing signs of recovery in the Women category in the latter half of the quarter similar to Mercari JP

FY2020.6 Q3

FY2020.6Q4

21

FY2020.6 Q3

FY2020.6Q4

22

YoY+29%

YoY+40%

(Billion JPY)

(Million users)

3 FY2020.6 Results—Mercari JP: Q4

● Achieved GMV YoY growth rate of +40% in Q4 due to listing initiatives and the boosting effects of COVID-19

23

YoY+29%

YoY+11ppts

YoY+95%

3 FY2020.6 Results—Mercari JP: Full Year (Jul–Jun)

YoY+28%

● Saw increase in number of users as well as YoY increase in the high single digits percent for average amount spent per user

(Billion JPY)

GMV/MAU(Billion JPY)

Adjusted Operating Income1

1. Graph reflects retroactive adjustment made from FY2019.6 Q3 to the amount before recording internal transactions between Mercari and 　Merpay as a result of transferring settlement to Merpay (outsourced payment processing fees)

241. Outsourcing expenses, rent, and taxes and dues

1

3FY2020.6 Results—Mercari JP: Cost Structure against Net Sales

● Achieved adjusted operating margin of 42% as a result of restricted hiring, implementation of a cost reduction project, and decrease in promotion costs (QoQ -1.1 billion JPY) as part of the move to control investment, while top line grew due to COVID-19

FY2020.6 Results—Mercari JP: Initiatives to Strengthen Listing

3

Mercari Station

● Strengthened listing and shipping UX by creating more touchpoints for users

Inventory List2/Category Listing

Sales of packaging materials at convenience stores, etc.Mercari Workshops1

TsutsuMer Spots

1. Mercari Workshops currently suspended due to COVID-192. Image below shows the Inventory List

Learn List Pack ShipLearn

List

Pack

Pack

25

FY2020.6 Results—Merpay3

● Carried out campaign initiatives to become a payment service used in people’s everyday life● Strengthened the credit business, which will serve as the foundation for enhancing

monetization, and formed business alliances with external partners such as DOCOMO and Shinkin Central Bank

26

Strategically carried out campaigns to acquire new users and promote use of Merpay

Completed Origami merger and formed business alliances with Shinkin Central Bank and DOCOMO

● Set new records for both number of buyers and listers in Q4

FY2020.6 Results—Mercari US3

● Achieved 100 million USD/month

● Reached YoY growth of +183% in Q4

● Improved LTV/CAC (Saw a particular increase in number of transactions of existing users, and an increase in influx of new users)

Profitability● Enhanced monetization with

a monthly GMV of more than 100 million USD

● Continued to invest in marketing with an eye towards continuous growth

Unit economics improvements

● Improved the cost structure of shipping

● Recorded earnings contribution from Instant Pay

GMV MAU

681 million USD(YoY +88%)

4.2+ million(YoY +112%)

27

FY2021.6 Business Objectives

28

FY2021.6 Business Objectives—Summary4

Consolidated:- Continue to "stay strong" during the COVID-19 pandemic by controlling investment and further cutting costs.

In the event of anticipated growth from investment, may prioritize growth, resuming investment and possibly recording loss.

- Improve soundness of service, contribute to society, and evolve into a service beloved by wide groups of people

Mercari JP:- Integrate primary and secondary distribution to enhance catalog and other features, thereby further

strengthening listings- Amplify impact from business alliances by encouraging purchases using ID integration with DOCOMO, etc.- Expecting YoY GMV growth rate of +20% or higher and adjusted operating margin of 30% or higher

Merpay:- Enhance monetization through expansion of credit services such as fixed-amount payment, providing flexibility

to users by allowing fixed-amount repayment on a monthly basis- Further strengthen synergy between Mercari and Merpay through fixed-amount payment and other features

Mercari US:- Make Mercari an even easier to use marketplace where users can safely sell their items- Continue to aim for YoY GMV growth rate of +50% or higher while assessing impact from COVID-19

29

FY2021.6 Business Objectives—Mercari JP4

● Integration with primary distribution players1 to further improve lister UX

ID integration (Inventory List)Streamline listing process using purchase history

with primary distribution players

Catalog data integrationData integration allows for easier listing/searching

Mercari Primary distribution player

Mercari Primarydistribution player

Easy listing Purchase history

Linked topurchase history

ID integration

Data on user preferences/purchases within Mercari app

Simpler listing/search features

Visualizes item trendsfor the secondary market

Utilizes data in promotions/product planning

Item catalog data

30

Data integration

(Ex; Size, color, etc.)

1. “Primary distribution players” refers to manufacturers, retailers, etc.

FY2021.6 Business Objectives—Mercari JP: Strategy for Coping with COVID-19

4

Initiatives to Accelerate Initiatives to AdjustInitiatives to Focus

● User acquisition- New lister YoY +50% or higher in Q4

● Mercari Post- Increased demand for no-contact shipping- Lighten burden on convenience stores/post offices

● Link to primary distribution players1

1. “Primary distribution players” refers to manufacturers, retailers, etc.

● Shift focus from mobile to web implementation

● Cross-border initiatives

● Mercari Workshops- Shift to holding online

● Mercari Station- Currently adjusting strategy

31

FY2021.6 Business Objectives—Merpay4

● Aim to materialize impact from business alliances, strengthen credit service, and enter phase of enhanced monetization

● Bolster credit business by starting to provide a fixed-amount payment service as part of Merpay’s Smart Payments

● Strengthen collaboration with DOCOMO and other external partners

QR code sharing to be enabledfrom September

Fixed-amount payment (installment payment) service started on July 7

32

FY2021.6 Business Objectives—Mercari US4

● COVID-19 has boosted online transactions within the US keeping the shift to online shopping high

● Control costs given uncertainty of the future and aim for +50% or higher in YoY GMV growth rate for the full year

● Remain flexible about advertising investment by monitoring traction

Mercari US

GMV

YoY +50% or higher

33

FY2021.6 Business Objectives—Mercari US4

AutomationStrengthen price suggestion feature to reduce pricing difficulty

● Promote usage among existing users by further improving ease of use● Focus on improving brand awareness and acquiring new users to expand market

Increasing Recognition/Acquiring New UsersContinue to invest with a focus on ROI

Shipping Innovation ● Expand regions for same-day

delivery (Mercari Now)● Make further innovations in

shipping

34

FY2021.6 Business Objectives—Kashima4

35

● Season suspended due to COVID-19; remain cautious about games with spectators by abiding with J.League policy

● Implement new digital measures leveraging Mercari Group’s expertise

Initiatives which allow participating spectators to support athletes through gifting

Crowdfunding “Smart Stadium”

ESG/ClosingBecoming Essential to

the Creation of the Circular Economy

36

37

Mercari’s ESG Initiatives

Change in percentage of people who, when asked about items which still have utility but which they no longer need, answered that they would reuse them by listing them on a marketplace app or through some other method

+3.9pt1

(June 2019/38.3% ⇨ June 2020/42.2%)

Fostered the Growth of the Reuse Market

Approx 70%2

of users said that they reused the Eco Pack they received from a previous Mercari purchase

Creating an Environment for Safe, Secure, and Fair Transactions

88.6%3 (+10pt YoY) of users said that Mercari provides a platform for safe, secure, and fair transactions.

5

Environmental Social

1. From a survey conducted by a research company in June 2020 targeting the general public (Respondents: 2,400 people)2. From a survey targeting 4.96 million Mercari users in March 2020 (Respondents: 238,000 people) 3. From a survey targeting 50 thousand Mercari users in 2020 (Respondents: 1,936 people).

● Used technology to accurately address listings and accounts in violation of the terms of use

● Convened a committee to set criteria for prohibited items and behaviors

● Interviewed experts in preparing to establish an expert panel to discuss the ideal marketplace

Continued Distribution of the Mercari Eco Pack

5

Governance

Introduce Incentive RemunerationSeparate Supervision and Execution in Business Management

● Improve performance by investing in our people and take on appropriate level of risk

Nomination and Remuneration Committee

(independent outside directors asa majority)

● Revise the board of directors structure, focused on outside directors in particular● Introduce Senior Vice President system● Improve agility by turning more authority over to the divisions responsible for

business execution● Disciplinary rules to be drafted by the Nomination and Remuneration Committee,

a non-mandatory advisory body

Mercari’s ESG Initiatives

Directors: 6 Outside Directors: 2

Directors: 2 Outside Directors: 3 Senior Vice Presidents: 8

Board of Directors (Supervision)

Executive Committee(Execution)

Candidate Proposal

Shintaro Yamada(Chief Executive Officer)

Fumiaki Koizumi(President)

Ken Takayama

Masashi Namatame

Makiko Shinoda

Proposes selection/removal of candidate directors, remuneration systems, etc. 38

39

ESG—Recognition by External Organizations

● Began carrying out ESG initiatives and communications in June 2019● Included as a constituent of the MSCI Japan ESG Select Leaders Index in November

2019

This index is composed of companies recognized for significant achievement in addressing environmental, social, and governance-related issues, chosen from the MSCI Japan IMI Top 700 index by MSCI. It has already been selected for inclusion among the ESG indices used in the Japan Government Pension Investment Fund (GPIF)'s asset management.

5

THE INCLUSION OF Mercari, Inc. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF Mercari, Inc. BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

Appendix

40

41

Independent Outside Directors (3)

4 New Board of Directors Structure

5 Directors

Directors (2)

Shintaro Yamada(Re-appointment)

Chief Executive Officer

Fumiaki Koizumi(Re-appointment)

President CEO of Kashima Antlers F.C.

Co., Ltd.

Ken Takayama(Re-appointment)

Masashi Namatame(Re-appointment)

● Plan to shift to a new Board of Directors composition focused on transparency and objectivity in business management, subject to resolution at the General Meeting of Shareholders in September 2020

Makiko Shinoda(New appointment)

42

4

• The Long-Term Credit Bank of Japan, Limited (currently Shinsei Bank, Limited)

• McKinsey & Company, Inc.• Novartis Pharma K.K.• Head of Finance of Nestlé Nutrition K.K.• CFO of Tokyo Itoi Shigesato Office (currently

Hobonichi Co., Ltd.)• Director of YeLL Inc. (current position)

• Experience in financial institutions, and specialized knowledge and extensive experience as CFO of business companies

• Extensive experience ranging from large companies to startups

Makiko ShinodaKen Takayama Masashi Namatame

Background

• The Industrial Bank of Japan, Limited (currently Mizuho Bank, Ltd.)

• Chief Financial Officer of Rakuten, Inc.• Outside Director of STAR FESTIVAL INC.(current

position)• Outside Director (Audit and Supervisory

Committee Member) of TECHMATRIX CORPORATION (current position)

• Outside Director (Audit and Supervisory Committee Member) of Metaps Inc. (current position)

• Outside Board Member of MEDIA DO HOLDINGS Co., Ltd. (current position)

• The Long-Term Credit Bank of Japan, Limited (currently Shinsei Bank, Limited)

• Executive Director of Morgan Stanley Japan Limited (currently Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.)

• Managing Director of Investment Banking Division, Deutsche Securities Inc. Head of Public Sector Group/Financial Institutions Group

• Head of Business Development of Visa Worldwide Japan Co., Ltd.

• Member of the Board of directors, Managing Director, BlackRock Japan Co., Ltd.

• Executive Officer of Tokio Marine Holdings, Inc. (current position)

Reasons for Selection as Outside Directors

• Specialized knowledge and extensive experience in the banking, securities, and investment industries.

Strong Governance Structure (Independent Outside Directors)

• Specialized knowledge and extensive experience in the financial business and managing internet services companies.

43

Number of Employees

● Developing talent internally and strengthening D&I　

6 Talent Supporting Mercari’s High Growth

44

6 Consolidated P&L—Full Year

1

1. Operating income + Depreciation and Goodwill amortization

45

6 Mercari JP P&L—Quarterly

1

1. Excludes internal transactions with Merpay (outsourced payment processing fees)

46

6 Consolidated BS

1

2

1. A part of liabilities to users, which has been recorded as Other payables, is recorded as Deposits received retroactively for FY2018.6 in order to better reflect the actual business activities.2. Includes long-term borrowings planned to be repaid within 1 year.

47

1. Only a breakdown of cost of sales and sales, general, and administrative expenses, and does not include non-operating and extraordinary profit and loss 2. Outsourcing expenses, rent, taxes and dues 3. Includes engineers’ personnel expenses

Promotion Costs/ Net Sales 35% 23% 19%

6 Mercari JP—Cost Structure

(Billion JPY)

Cost Structure Breakdown1

2

3

48

Disclaimer

This material has been prepared based on information gathered at the time of its preparation and is not in any way intended as a commitment to future implementation. Also note that information contained herein has not been audited by an independent certified public accountant or audit corporation, and includes financial information based on past financial statements or accounting documents as well as management figures not based on financial statements or accounting documents.This document is an English translation of the original Japanese language document and has been prepared solely for reference purposes. No warranties or assurances are given regarding the accuracy or completeness of this English translation. In the event of any discrepancy between this English translation and the original Japanese language document, the original Japanese language document shall prevail in all respects.

The FY2021.6 Q1 financial results are scheduled to be released at 15:00 or later on October 29, 2020.