Askul 140120120726083237 e

Disclaimer This is an English translation of the captioned release. This translation is prepared and provided for the purpose of the reader’s convenience. All readers are recommended to refer to the original version in Japanese of the release for complete information

News Release dated: July 4, 2012

To whom it may concern: Company Name: ASKUL Corporation

(Code No.: 2678, TSE First Section) Representative: Shoichiro Iwata

(President and Chief Executive Officer) Contact Person: Tuguhiro Tamai

(Executive Officer, Finance & Corporate Communication Unit)

Phone: (03) 4330-5130

FY5/2012 Full-Year Performance (Consolidated financial summary for fiscal year ended May 2012)

ASKUL Corporation (hereinafter referred to as the “Company”) herewith attach the “FY5/2012

Full-Year Performance” (Consolidated financial summary for fiscal year ended May 2012) to

provide supplementary information with respect to the “Summary of Consolidated Financial

Results for Fiscal Year Ended May 2012 (Japanese GAAP).”

These supplementary materials include forward-looking statements concerning current plans

and the outlook for operating results. These statements are based on plans and forecasts that

use currently available information. Forward-looking statements are not promises or guarantees

about the future because actual operating results may differ from the Company’s outlook for a

variety of reasons.

These supplementary materials are unaudited and have not been reviewed by certified public

accountants or auditors.

FY5/2012 Full-Year Performance (July 4, 2012)12/7/26 10時9分

Copyright(c) 2012 ASKUL Corporation. All rights reserved. 1

0

FY5/2012 Full-Year Performance

July 4, 2012

ASKUL Posts Highest Ever Net Sales, Profit Growth Turns Positive in FY5/2012

Move from Stable to Significant Growth through Alliance with Yahoo Japan

⎯Reallocating Business Resources through Prioritized Selection of and Focus on New Businesses⎯

DisclaimerThis is an English translation of the captioned presentation material. This translation is prepared and provided for the purpose of the convenience of non-Japanese-speaking people. All readers are recommended to refer to the original version in Japanese of the presentation material for complete information.

1

Notes:This material contains ASKUL Group’s current plans and performance outlook. These plans, forecasts, and other forward-looking statements represent ASKUL’s plans and forecasts based on information currently available. Actual performance may differ from these plans and forecasts due to a variety of conditions and factors that could occur in the future. This material does not represent promises or guarantees regarding the achievement of these plans and forecasts. This material has not been audited by certified public accountants or auditing firms.

For the purposes of this material, the term “new businesses” refers to SOLOEL Enterprise, ASMARU, and Shanghai ASKUL. YASKUL (tentative name) refers to the online mail-order business for general consumers to be launched in alliance with Yahoo Japan Corporation. The term “existing businesses” refers to the rest of ASKUL’s businesses.

B-to-B refers to business-to-business transactions, while B-to-C refers to business-to-consumer transactions.



2

I. FY5/2012 Results

II. Towards New Growth Strategy

III. Background of Decision-making on Business and Capital Alliance

IV. Striving for Significant Growth

V. FY5/2013 Outlook

3

Net sales exceeded ¥200.0 billion for the first time on the back of AlphaPurchase acquisition and expansion of web-only products lineup,increasing 8.0%, or ¥15.8 billion, on year.

Though the consolidation of AlphaPurchase, which had an earnings structure different from ASKUL, and the incentives to agents to ensure future growth had an impact on gross profit margin, gross profit was highest ever.

A wide range of cost-saving activities resulted in a 0.7 p.p. improvement in ratio of SG&A expenses to net sales on year, and operating income increased 23.5% from FY5/2011, an improvement of 0.4 p.p.

ASKUL posted net income, after a loss in FY5/2011, in a full recovery after the earthquake disaster, despite a temporary increase of ¥0.7 billion in total income taxes (a negative factor on profit).

New businesses improved their operating income on year.

FY5/2012 Consolidated Performance Summary

Full recovery from the earthquake disaster; net sales rose to highest ever and profit growth turned positive

Strictly adhered to operating income plan; actively invested for growth



(%)

197,070 100.0 212,932 100.0 +8.0 220,000 -3.2

44,663 22.7 47,490 22.3 +6.3 50,000 -5.0

39,306 19.9 40,873 19.2 +4.0 43,500 -6.0

5,357 2.7 6,617 3.1 +23.5 6,500 +1.8

5,275 2.7 6,504 3.1 +23.3 6,400 +1.6

474 0.2 6,270 2.9 +1,221.3 − −

-1,015 -0.5 2,301 1.1 − 2,700 -14.8

Plan(¥ million)

Vs. Plan

4

FY5/2012 Consolidated Performance Overview

Stock issuance-related expenses, unbudgeted promotion expenses, etc.: ¥0.5 billion in total

Temporary increase in total income taxes: ¥0.7 billion (a negative factor on profit)(Change to tax rates: ¥0.38 billion; asset impairment of a subsidiary: ¥0.32 billion)

Incentives to agents: ¥0.8 billion

Extraordinary loss resulting from the earthquake disaster: ¥2.6 billion

Net Sales

Gross Profit

Selling, General and Administrative Expenses

Operating Income

Ordinary Income

Income Before Income Taxes

Net Income

FY5/2011 FY5/2012YoY

change (%)

Amount(¥ million)

Amount(¥million)

% of sales

% of sales

5

95%

100%

105%

110%

115%

６月９月 12月３月６月９月 12月３月６月９月 12月３月６月９月 12月３月2009年 2010年 2011年

Lehman Brothers collapse

2008年

Impact of AlphaPurchase consolidation

wears off

2012年

Great East Japan Earthquake

Start of AlphaPurchase consolidation

ConsolidatedMonthly Net SalesMonthly net sales YoY growth (consolidated; adjusted for business days)

June Sep. Dec. Mar. June Sep. Dec. Mar. June Sep. Dec. Mar. June Sep. Dec. Mar.

2009 2010 20112008 2012

Notes: • There is no adjustment for business days in January 2011 (due to year-end and New Year holidays).• For the purposes of this material, the term “month” refers to a fiscal month that ends on the 20th of each month, commencing on the 21st of the preceding month.

We fully recovered from the impact of the earthquake disaster and achieved double-digit growth in 4Q (three months).



-15%

-10%

-5%

0%

5%

10%

15%

6

Number of customers

Average customer spendLarge

price cuts

Both number of customers making purchases and average customer spend made a fully recovery from the impact of the earthquake.The rate of growth in average customer spend turned positive reflecting the widened product range.

Great East Japan Earthquake

Note: From March 2010 to February 2011, the preceding year’s results do not include Pochitto ASKUL’s data.

Non-consolidated

Number of Customers Making Purchases / Average Customer Spend

2009 2010

Jun JunJunSep SepDec Dec MarMar Sep Dec Mar

The impact of one fewer business day

YoY growth in average customer spend

YoY growth in the number of customers making purchases

2011 2012

7

0

500

1,000

1,500

2,000

2,500

FY5/2011 (actual)Consolidated net sales

¥197.0 billion

FY5/2012 (actual)Consolidated net sales ¥212.9 billion

YoY change +¥15.8 billionYoY growth +8.0%

Incr

ease

in n

et sa

les f

rom

mak

ing

Alph

aPur

chas

e in

to a

subs

idia

ry

Incr

ease

in n

et sa

les f

rom

SO

LOEL

ARE

NA a

nd

ASKU

L AR

ENA

Incr

ease

in n

et sa

les f

rom

exi

stin

g bu

sines

ses,

etc.

+7.4

+0.4+8.0

Existing businesses, etc.Consolidated net sales

¥147.9 billionYoY change +¥0.4 billionYoY growth +0.3%

SOLOEL ARENA, etc.Consolidated net sales


Net sales exceeded ¥200.0 billion thanks to AlphaPurchase acquisition and sales expansion of SOLOEL ARENA

Main Factors Affecting FY5/2012 Consolidated Net Sales

200

100

50

150

250(¥billion)

AlphaPurchaseNon-consolidated net sales

¥13.1 billionYoY change +¥8.4 billionConsolidation adjustments

-¥1.1 billion

0



8

0

200

400

600 FY5/2011 (actual)Consolidated net sales

¥51.9 billion

Incr

ease

in n

et sa

les f

rom

mak

ing

Alph

aPur

chas

e in

to a

subs

idia

ry

Incr

ease

in n

et sa

les f

rom

SO

LOEL

AREN

A an

d AS

KUL

AREN

A

Incr

ease

in n

et sa

les f

rom

exi

stin

g bu

sines

ses,

etc.

+0.4

+2.2+2.9

Existing businesses, etc.Consolidated net sales


AlphaPurchaseNon-consolidated net sales

¥3.8 billionYoY change +¥1.1 billionConsolidation adjustments

-¥0.7 billion

SOLOEL ARENA, etc.Consolidated net sales


Significant recovery in existing businesses in 4Q (three months)The strategy to widen product lineup contributed to net sales to

small- to medium-sized offices

Main Factors Affecting FY5/2012 4Q Consolidated Net Sales(Three Months)

(¥billion)

60

20

40

FY5/2012 (actual)Consolidated net sales ¥57.5 billion

YoY change +¥5.6 billionYoY growth +10.9%

0

ASKUL ARENA

9

161

1227

57

83 103128

192229

0

50

100

150

200

04/５月 05/５月 06/５月 07/５月 08/５月 09/５月 10/５月 11/５月 12/５月

SOLOEL ARENA Progressing Faster Than Plan

0

100

200

300

400

500

600

04/５期 05/５期 06/５期 07/５期 08/５期 09/５期 10/５期 11/５期 12/５期 13/５期

(¥billion)

FY5/2013 target:

¥57.9 bn4.28.5

14.922.4

29.734.5

38.745.1

Exceeded 20,000

companies

YoY +17.8%

53.457.9

Shift from ASKUL ARENA has been smooth with more than 70% completed as of the end of June (on a user basis)

SOLOELARENAMedium-sized

companies

Large-sized companies

Small- to medium-sized

offices

SOLOELEnterprise

ASKULInternet

Shop

ASMARUIndividuals

(thousand companies)

SOLOEL ARENA + ASKUL ARENA Sales Trend

40

30

20

10

0

50

20

15

10

5

60

Cumulative total of registered companies at SOLOEL ARENA + ASKUL ARENA

FY5/04 FY5/05 FY5/06 FY5/07 FY5/08 FY5/09 FY5/10 FY5/11 FY5/12 FY5/13

19.2

16.1

12.810.3

8.3

5.7

2.71.2

22.9

5/2007 5/2008 5/2010 5/2011 5/20125/20055/2004 5/2006 5/2009



10

Widening of Product Range

Growing beyond the framework ofoffice supply mail order service

Office supplies Office

supplies

All MRO supplies

Overall office products Office

products

Office work products

Scientific supplies

Medical supplies

11


Growing beyond the framework ofoffice supply mail order service


supplies

All MRO supplies


products


Scientific supplies

Medical suppliesAs of June 2012, the number of products offered

by the Internet shop has expanded to more than260,000 SKUs



12

Starting tie-ups with suppliers (AS ONE/TRUSCO NAKAYAMA) Next day delivery of about 120,000 SKU MRO supplies fromApril 2012*

Start of Next Day Delivery of Non-stock Items

*Product images used are for illustrative purposes only.There are some areas/products that are not covered by the collaborating suppliers.

Previous next-day delivery service

Launched in April 2012

About

30,000 SKUs ofoffice products

Expand MRO supplies

such as industrial tools,scientific supplies, etc.To make about

150,000 SKUsavailable for next day delivery

13

Sales of MRO Products Steadily Expanding

ASKUL Catalog Spring/Summer 2012

Weekly sales of AlphaPurchase products exceeded ¥25 millionthrough sales promotion using catalogues and next day delivery

AlphaPurchase ProductWeekly Net Sales Trend

May

12

–M

ay 2

3 –

Jun

6 –

Jun

20 –

Jul 4

–Ju

l 18

–Au

g 1

–Au

g 15

–Au

g 29

–Se

p 12

–Se

p 26

–O

ct 1

0 –

Oct

24

–N

ov 7

–N

ov 2

1 –

Dec

5 –

Dec

19 –

Jan

2 –

Jan

16 –

Jan

30 –

Feb

13 –

Feb

27 –

Mar

12

–M

ar 2

6 –

Apr 9

–Ap

r 23

–M

ay 7

–M

ay 2

1–Ju

n 4–



14

Web-only products contributed to sales of office supplies and office furnitureMedical (included in Others) had a strong showing reflecting synergy effects between widened product range and dedicated website

Net Sales by Product Category Non-consolidated

79,028 -0.5 79,399 +0.5

43,675 +2.1 46,530 +6.5

38,700 +5.2 40,985 +5.9

15,661 +9.4 17,455 +11.5

12,078 -7.4 13,306 +10.2

189,144 +1.5 197,677 +4.5

FY5/2011 FY5/2012

OA/PC supplies

Office supplies

Office amenities

Office furniture

Others

Total

Amount(¥ million)

Amount(¥ million)

YoY change(%)

YoY change(%)

15

Growth rate of all items accelerated in 4Q (three months)

38,705 -1.8 20,084 +0.9 20,609 +4.6

21,877 +2.5 11,499 +6.8 13,153 +13.7

20,408 +3.3 10,100 +6.3 10,475 +10.9

7,868 +6.6 3,897 +8.1 5,689 +21.6

6,229 +5.0 3,505 +8.5 3,571 +22.6

95,090 +1.3 49,087 +4.4 53,499 +10.7

FY5/2012 1H(six months)

FY5/2012 3Q(three months)

FY5/2012 4Q(three months)

OA/PC supplies

Office supplies

Office amenities

Office furniture

Others

Total

Net Sales by Product Category Non-consolidated

Amount(¥ million)

Amount(¥ million)

Amount(¥ million)

YoY change(%)

YoY change(%)

YoY change(%)



16

Gross profit: ¥47.4 billionGross profit margin: 22.3%

Difference from the plan: -0.4 p.p. YoY change: -0.4 p.p.

<Quarterly gross profit margin trend>1Q: 22.3% 2Q: 22.4% 3Q: 22.3% 4Q: 22.2%

The gross profit margin was affected by(1) The earthquake disaster’s impact on gross profit mix(2) Consolidation of AlphaPurchase, which had an earnings

structure different from ASKUL(3) Incentives for agents

Gross profit was highest ever as net sales expanded

FY5/2012 Consolidated Performance Highlights

17

Trend of Consolidated Gross Profit

24.0 %Gross profit margin

(*excl. the impacts of incentives for agents and the acquisition of

AlphaPurchase)

23.4 % 23.5 % 23.0 % 23.2 %

Gross profit was highest ever; basic gross profit margin is gradually recovering

350

370

390

410

430

450

470

490

08/５期 09/５期 10/５期 11/５期 12/５期

エージェント向けインセンティブ

売上総利益

Gross profit margin 24.0% 23.3 % 23.5 % 22.7 % 22.3 %

49.0

47.0

45.0

43.0

41.0

39.0

37.0

35.0

(¥billion)

FY5/2008 FY5/2009 FY5/2010 FY5/2011 FY5/2012

Incentives for agents

Gross profit



18

SG&A expenses: ¥40.8 billion Ratio of SG&A expenses to net sales: 19.2%YoY change: -0.7 p.p.; +¥1.5 billion Difference from the plan: -0.6 p.p.; -¥2.6 billion<Quarterly SG&A expenses ratio trend>

1Q: 19.7% 2Q: 19.2% 3Q: 18.5% 4Q: 19.4%<Breakdown of difference from the plan>

- A decline in variable cost as net sales fell short of the target -¥0.9 billion- Recording of incentives for agents as sales rebates -¥0.8 billion- Declines in depreciation and amortization of software -¥0.4 billion- Stock issuance-related expenses, unbudgeted promotion expenses +¥0.5 billion- Other, the outcome of the Cost Busters initiative -¥1.0 billion

Operating income: ¥6.6 billion (full-year plan: ¥6.5 billion)<Quarterly operating income to net sales ratio trend>

1Q: 2.6% 2Q: 3.2% 3Q: 3.8% 4Q: 2.8%- Operating income temporarily declined in 4Q due to payment of incentives and

occasional costs


19

18.0%

18.5%

19.0%

19.5%

20.0%

第１四半期（３ヶ月）第２四半期（３ヶ月）第３四半期（３ヶ月）第４四半期（３ヶ月）

売上高販管費比率

売上高販管費比率（第三者割当増資関連費用・予算外販促コストを除く）

Trend of Ratio of SG&A Expenses to Net Sales (Quarterly)

Although 4Q has catalog cost, the ratio was roughly in line with 3Q when occasional costs were excluded.

Ratio of SG&A expenses to net salesRatio of SG&A expenses to net sales (excl. Stock issuance-related expenses, unbudgeted promotion expenses)

1Q (3 months) 2Q (3 months) 3Q (3 months) 4Q (3 months)



20

Operating Income/Loss of New Businesses

-28

-24

-20

-16

-12

-8

-4

0１Ｑ累計２Ｑ累計３Ｑ累計４Ｑ累計

11/５期実績

12/５期計画

12/５期実績

Income improvement of Shanghai ASKUL was short of the plan. We will carry out selection of and focus on the new businesses

in FY5/2013.

(¥billion) Quarterly accumulation

1Q 1H 9 months Full year

FY5/2011 results

FY5/2012 plan

FY5/2012 results

-0.4

-0.8

-1.2

-1.6

-2.0

-2.4

-2.8

0

21

Extraordinary income: ¥0.8 billionGain on reversal of loss on disaster ¥0.60 billionGain on reversal of subscription rights to shares ¥0.23 billion

Extraordinary loss: ¥1.0 billion (full-year plan: ¥0.5 billion)Impairment loss on noncurrent assets ¥0.95 billion

Net income: ¥2.3 billion (full-year plan: ¥2.7 billion)⇒The impact of temporary increase in total income taxes of ¥0.7 billion

(a negative factor on profit)

Capital expenditures: ¥2.6 billion (full-year plan: ¥3.3 billion)Next-generation web development ¥0.64 billionMaterial handling system (DCM center) ¥0.45 billion

(Ref.) Depreciation and amortization of software: ¥3.0 billion (full-year plan: ¥3.4 billion)




22

ＢtoＢ事業は

第２成長期が

スタート

95/5期 96/５期 97/５期 98/5期 99/５期 00/5期 01/5期 02/5期 03/5期 04/5期 05/5期 06/5期 07/5期 08/5期 09/5期 10/5期 11/5期 12/5期

Number of products

Net sales

Number of customers

Introduction of business integration

system

e-line

*e-line denotes the evolution from catalog business to Internet-based business

B-to-B business

enters the 2nd

growthphase

FY5/95 FY5/96 FY5/97 FY5/98 FY5/99 FY5/00 FY5/01 FY5/02 FY5/03 FY5/04 FY5/05 FY5/06 FY5/07 FY5/08 FY5/09 FY5/10 FY5/11 FY5/12

23

I. FY5/2012 Results




V. FY5/2013 Outlook



24

Return existing business to a growth path by enhancing Web-based services.

Boost new businesses to return to double-digit growth.

FY5/1993 FY5/2011

Busin

ess e

xpan

sion

Rapid growth by a catalog business model

Sustained growth

New growth phase

(fiscal years)

Existing business growth

New business growth

Source: 1H FY5/11 earnings material

MRO

(mai

nten

ance

, rep

air, a

nd

oper

atio

ns) s

uppl

ies

Existing Growth Strategy

25

Direction of New Businesses

ASMARU• Ended the alliance with netprice.com on July 4• Eying an integration into YASKUL (tentative name) within 2012 by

leveraging accumulated know-how and expertise

Expansion in Asia• Drastic business reconstruction is being considered for Shanghai ASKUL• AlphaPurchase have embarked on MRO supplies purchasing service in

China through a collaboration with SOLOEL Enterprise

SOLOEL Enterprise• Expected to post single month profit within FY5/2013 by strengthening

joint purchase efforts• Spin-off into a separate company in FY5/2013 is being considered to

accelerate business expansion by ensuring neutrality

Real

loca

te b

usin

ess r

esou

rces

thro

ugh

prio

ritiz

ed se

lect

ion

and

focu

s



26

Present

Busin

ess e

xpan

sion

Shift focus to e-commerce by leveraging the capability of field staffLive up to the expectations of all stakeholders from a medium- to

long-term perspective

New Growth Strategy

B-to-Bbusiness

fiscal years

(tentative name)

27

I. FY5/2012 Results




V. FY5/2013 Outlook



28

e-commerce to overtake department and convenience stores:

Market size second to supermarkets

Total distribution amount for 2010(¥trillion)

About ¥14.5 trillion by 2016

Supermarkets Convenience Stores

e-Commerce Department Stores

Source: 2012 Nikkei Industry Map, 2012 IT Navigator

29

On April 23, 2012, Amazon of US launched MRO supply sales website called AmazonSupply.comIt offers more than 500,000 items spread over 14 categories including Janitorial & Sanitation, Lab & Scientific, Occupational Health & Safety, Office, Test, Measure & Inspect and various tools categories

Moreover, AmazonSupply.com introduced new service factors that were not available in the existing Amazon model1) Dedicated customer service staff2) Accepts orders not only online but also via phone and facsimile3) Extends credit

In addition to make a full entry into the B-to-B business, AmazonSupply.com challenges the major players in the US MRO market including Staples (office MRO supplies), Home Depot (home MRO supplies), Grainger and MSC (industrial MRO supplies)

29



30

One who controls logistics controls the market

“Internet Mail-Order Services

Compete on Delivery”

Morning edition of

Nihon Keizai Shimbun

June 23, 2012

30

31

Trend towards consolidation of B-to-B and B-to-C

“Offense” is the best “Defense”

ASKUL to ensure further advantageby expanding market share

at an ultimate speed31



32

= Japan’s No.1

×Largest Product RangeLowest PricesFastest Distribution SystemBest Customer Support

Best Customer AppealBest Settlement

32smart commerce

Establishment of new

Customer Support

DistributionSettlementPriceProductRange

Customer Appeal

3333

Expansion of customer baseto accelerate growth of

B-to-B business, including MRORecover double-digit growth

for B-to-B business

Jump-StartNew Smart Commerce

as core tenant of Yahoo! Shoppingthrough partnership with

Yahoo! JAPANMake B-to-C become

a profit-creating businessat par with B-to-B within 5 years

Increase market share for product categories and

volume with B-to-B and B-to-CDrastic profitability improvement byinput cost reduction + distribution

cost efficiency

Four Goals of Alliance with Yahoo Japan

Launch fulfillment business bysecuring entrustment of

distribution/delivery function forexisting shops of Yahoo! Shopping

and Yahoo! AuctionsSecure a new profit source utilizing

ASKUL's strength and increaseddistribution centers

(1) (2)

(3) (4)



34

Present

Busin

ess e

xpan

sion

Stable Growth of B-to-B Business + Alliance Impact

5-year TargetConsolidated net sales: ¥500.0 billion+

Consolidated operating income: ¥20.0 billion+EBITDA per share: ¥500+

fiscal years

34

B-to-B business

35

I. FY5/2012 Results




V. FY5/2013 Outlook35



3636

BtoC CompanyBtoB CompanyPr

oduc

t-ba

sed

busi

ness

uni

t (1)

COO

Implement major organizational changes to enable an organization that can achieve “net sales of ¥500.0 billion+ and

operating income of ¥20.0 billion+” at an ultimate speed

Web

Str

ateg

y &

Plan

ning

Bu

sines

s Uni

t

Prod

uct-

base

d bu

sines

s uni

t

Plat

form

Des

ign

Busin

ess

Uni

t

Efficient Customer Response (ECR) Unit (logistics, procurement, order, quality) e-Platform Business Unit Back-office operations

Organizational Change Towards Significant Growth

COO

…Prod

uct-

base

dbu

sine

ss u

nit (

2)

Area-based management

...

3737

Implement major organizational changes to enable an organization that can achieve “net sales of ¥500.0 billion+ and

operating income of ¥20.0 billion+” at an ultimate speed

Efficient Customer Response (ECR) Unit(logistics, procurement, order, quality) e-Platform Business Unit Back-office operations

Organizational Change Towards Significant Growth

BtoC CompanyBtoB Company COOCOO

Prod

uct-

base

dbu

sine

ss u

nit (

1)

…Prod

uct-

base

dbu

sine

ss u

nit (

2)

Area-based management

Web

Str

ateg

y &

Plan

ning

Bu

sines

s Uni

t

Prod

uct-

base

d bu

sines

s uni

t

Plat

form

Des

ign

Busin

ess

Uni

t

Introduce Chief Operating Officer (COO)Accelerate decision-making

Set sales bases based on area to strengthen local operations, actual

products, and capability of field staff

Specify profit-and-loss responsibility by business unitConsolidate contacts for both BtoB and BtoC based on

product

...



38

B-to-B Business StrategyB-to-B Business Strategy

Hitoshi YoshidaChief Operating Officer (COO)

BtoB Company

Dec 2000: Joined ASKUL

After serving as a merchandiser, served as manager of product division from 2008. The manager of ECR (logistics) since 2011 to date.

38

39

BtoB CompanyMission Statement

Enable next-day delivery of all MRO products to all offices at reasonable prices to enliven

Japanese workplaces

3939



40

Greater Customer BaseEnsure retention of customers accessing through

websites as guest users

Enhance customer contacts through community-based sales efforts

4040

4141

Sales activities by agents

Customer information registration

Catalog delivery

Fax and web-based orders

Product delivery

Monthly invoice/collection

Follow-up on proposals from agents

Customers search in Yahoo! JAPAN

Settlement through Yahoo! Wallet

Customer makes repeat orders

Product delivery

Basic B-to-B processes Newly added processes

Web-based orders

Appeal to guest users through expanded product range/search engine/simple settlementEstablish customer relationship with follow-up by agents

Recover double-digit growth for B-to-B business



42

Osaka

Sendai

Tokyo

OpenJune 12, 2012

To open inJuly 2012

Sales bases + establishment of showrooms • Strengthen relationships with area agents• Practice marketing that leverages each area’s characteristics• Strengthen the office furnishing business evolving around

showrooms

Establishment of Regional Bases⎯Strengthening of Local Operations, Actual Products, Field Staff Capability

42

43

Widening of Product RangeAim to realize one-stop shopping for all MRO

supplies

43



4444

We aim to expand into new markets to cater to customer needs.


supplies

All MRO supplies


products


Scientific supplies

Medical supplies


To expand the number of products offered by the Internet shop to more than

500,000 SKUsby the end of FY5/2013

45

Product DevelopmentTo introduce “MRO PB Series” in this fall

Development of products that reflect customer requirements

45



46

14% 20%Sales share of own-brand products

(excl. original copier paper)

Target for 2 years

Own-brand products in SKUs

(excl. original copier paper)

Present

3,602 5,000

Original design products

Collaboration with Disney and

a Swedish designer

Aim to improve profitability by expanding sales of own-brand products

Development of Own-brand Products Reconstruction assistance donation

project launched Kodomo Art Project /Reconstruction assistance project

Published a booklet to

introduce own-brand products

46

Launched own-brand product series that are linked with SNS

“I want something like this” Development Dept.

47

Simultaneous Next Day Delivery of All Products

Aim to enable next day delivery of 1 million SKU products from A to Z in one shot

47



48

オフィス用品

約３万SKU

工具・理化学品等のMRO商材を拡大

約15万SKUを

日配送

48

Starting tie-ups with suppliers (AS ONE/TRUSCO NAKAYAMA) Next day delivery of about 120,000 SKU MRO supplies fromApril 2012 *

Start of Next Day Delivery of Non-stock Items

*Product images used are for illustrative purposes only.There are some areas/products that are not covered by the collaborating suppliers.

Previous next-day delivery service

Launched in April 2012

About

30,000 SKUs ofoffice products

ExpandMRO supplies

such as industrial tools,scientific supplies, etc.

To make about

150,000 SKUsavailable for next day delivery

By further enhancing alliances with suppliers, We aim to enable next day delivery of

1 million SKUs+ simultaneous delivery

in 2 years

49

B-to-C Business StrategyB-to-C Business Strategy

Akira YoshiokaChief Operating Officer (COO)

BtoC Company

Jan 2001: Joined ASKUL

After serving at the business administration division, has been in charge of the medical business ever since its launch in 2003.

49



50

BtoC CompanyMission Statement

Offer a new type of e-commerce, which for the first time adds a

pleasant surprise to the mundane act of grocery purchase

50

51

Web DevelopmentTo develop a one-of-a-kind B-to-C website

(tentative name) YASKUL

Coming soon… 51



52

Recap ASKUL’s strengthsProgress of the project

52

Industry Leader with more than 260,000 SKUsforecast as of end of June 2012

Customer AppealProduct Range Price Settlement Distribution

Customer Support

Sales of household goods: About ¥40.0 billion

Winning Structure:Direct transaction with approx. 800 manufacturers

Customer Appeal Product Range

Price Settlement Distribution Customer Support

ManufacturerManufacturer






CustomersCustomers

Sendai

TokyoYokohama

NagoyaOsakaFukuoka

Distribution Network that realizes

“Same Day” and “Next Day” Delivery

Further evolution of fastest distribution system

Present In 5 years (plan)As of announcement on April 27, 2 012

Customer AppealProduct Range

Price Settlement DistributionCustomer Support

HDI Customer Service Benchmarking*

The only three stars rating in the industry

Customer AppealProduct Range

Price Settlement DistributionCustomer Support

*By HDI Japan (Help Desk Institute), a member of world’s largest support service industry organization

From “call center” to “customer service desk”Handling multiple channels including SNS

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54

1. Steering Committee meetings1st meeting: May 13; No. of participants: 14

Meeting details: Discussion on concept (mission, philosophy)

2nd meeting: May 26; No. of participants: 26Meeting details: Discussion on service name, core strategy

Finalization of sub-committee membersDrafting of schedule

3rd meeting: June 11; No. of participants: 23Meeting details: Discussion of target market (customers, products)

Confirmation of service levels and system requirements

4th meeting: June 27; No. of participant: 36Meeting details: Unofficial decision on service name; discussion on

medium-term business plan

2. Organizational setupOn July 1, 16 Yahoo Japan employees joined on dispatch.

Carrying out personnel exchange with an eye on the business integration with ASMARU

Jump-Start of YASKUL (tentative name): Status

Participants of the 1st Steering Committee meeting*CEO of ASKUL, Mr. Iwata, and CEO of Yahoo Japan Corporation, Mr. Miyasaka, are 2nd and 3rd from left in the front row

CEOs of both companies attended

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55

3. Study of grand design for B-to-C businessEstablish six subcommittees⎯(1) Attracting customers, (2) Marketing, (3) Merchandising, (4) Customer Service, (5) Distribution, and (6) Design

Each sub-committee to carry out detail design for jump-start of YASKUL (tentative name)Overall optimization will be controlled by the steering committee mentioned earlier

4. Start of tie-up with Yahoo! JAPANLinks to be displayed on the top pages of websites of both companies

Jump-Start of YASKUL (tentative name): Status

55



56

Development of Logistics Platform

Achieve both improvement in service levels and streamlining of logistics

56

57

B-to-Cbusiness

Share the infrastructure and expertise gained in B-to-B

Take advantage of economy of scale by

expanding B-to-C business

Continuous reduction of logistics costs and evolution of service

y gImprove competitiveness and profitability through B-to-B and B-to-C interaction

Fulfillmentservice

Basic Policy for Development of Logistics Platform

B-to-B business

Entire business

57



58

Handling of jump-start

Maintaining and improving the level

of service

Improving profitability

(Reducing logistics cost)

Strengthen the functions of existing distribution centers

Utilize existing supply-chain management system

Utilize existing delivery network

Expand areas under same-day delivery and products available for same-day or next-day delivery category by establishing new regional bases and increasing the size of key basesExpand resource-saving delivery service by using own delivery networkAchieve quick delivery by reviewing operation time

Take advantage of scale and improve operational efficiency by fully utilizing the existing logistics infrastructure (review of material handling equipment, etc.)

Reduce delivery costs by setting up regional bases

Streamline supply chain by collaborating with manufacturers

Three Key Points Upon Development of Logistics Platform

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59

Distribution Platform Development Investment Plan (Draft)

59

(¥billion)Contract

basisAcquisition

basis

29.5 15.0 - 14.5 - - 29.5

5.0 5.0 - - - - 5.0

2.0 2.0 2.0 2.0 - - 4.0

2.2 2.2 - - - - 2.2

- - 2.0 2.0 1.0 1.0 3.0

- - - - 8.0 8.0 8.0

38.7 24.2 4.0 18.5 9.0 9.0 51.7Total

Metropolitan area expansion

Existing center upgrade

FY5/2013plan

Existing center revamp

New regional bases construction

Distribution system upgrade

FY5/2014plan

FY5/2015 onwardsplan

Total

Key center acquisition

Contract basis

Contract basis

Acquisitionbasis

Acquisitionbasis



60

B-to-B + B-to-C synergies, once again

Increase market share for product categoriesand volume handled

Drastic profitability improvement byinput cost reduction + logistics cost efficiency

60

61

Live up to the expectations of all stakeholders through increased sales and profits

Course of Action for Achieving Goals Five Years from Now

61

FY5/2012actual

¥212.9 billion ¥239.0 billion ¥300.0 billion+ ¥400.0 billion+

Of which, YASKUL (tentative name) − ¥18.0 billion Drastic growth Drastic growth

¥6.6 billion ¥7.3 billionStable

profit increaseHighest ever

− Profit secured Profit increaseDrastic

profit increase

¥3.0 billion ¥3.4 billion Doubling Slight decline

Before dilution

¥308 ¥198 ¥300+ Drastic increase ¥500+EBITDA per share

Consolidated net sales

¥500.0 billion+

¥20.0 billion+

Depreciation/ amortization

FY5/2013forecast

FY5/2014direction

FY5/2015–FY5/2016direction

FY5/2017target

Consolidated operating income

Of which, YASKUL (tentative name)



62

Ongoing Environment-related InitiativesOngoing Environment-related Initiatives

62

63

Supplier ASKUL Customer

Sales of energy-saving

products

Effective use of returned goods

Expand Internet-based

orders

Collectionservice

Recycling ofwaste

Introduce energy-saving

equipment

Promotemodal shift

Environment-friendlyvehicles

Cross dock

20haProject

ECO-TURN

: “Low-carbon”-related measures

: ”Resource circulation”-related measures

: “Green procurement”-related measures

Plan, develop environment-friendly

products

Environmental compliance of

original products

As an entity that links suppliers and customers, we have been implementing various environmental measures tied to the operations at each level of the distribution platform

We aim to deliver in “the most ecological format”

1 box for2 trees

Environmental Measures Across the Entire Distribution Platform

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64

Promoting efficient procurement

For FY5/2012, we reviewed the procurement method for some imported items, switching to direct delivery by ship to the port nearest to the distribution centers in various parts of the country

Significant reduction in vehicular delivery in JapanReduction in procurement cost andCO2 emissions

[Before reforms]

[After reforms]

Introduction of energy-saving light fixtures

Level 1 of Osaka DMC

[Before introduction – Mar 2012] [After introduction – May 2012]

About 40% reduction in electricity usage

We actively switched to energy-saving light fixtures such as LED lamps as part of measures to slash electricity use at distribution centers

LED lights at Osaka DMCApr 2012: Installed 760 lightsAug–Sep 2012: Plan to install about 2,000 more

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65

ECO-TURN Delivery

Started in April 2009 with the aim of enhancing the service to customers and to reduce environmental impact

Achieved 25% reduction in usage of packing materials per box in 3 years

25%reduction in packing

material per box

ECO-TURN SUPPLY(Collection service for toner and ink cartridges)

This is a service that collects toner and ink cartridges for free for reuse and recycling.

This contributes not only to 3R (reduce, reuse, recycle) initiatives at customer’s officebut also to cost reduction.

Achieves both differentiation as well as reduction of environmental burden

Supplier ASKUL Customer

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A project that is aimed at revitalizing the local community and preserving biodiversity through reforestation efforts in Indonesia.The project was launched in December 2011 in cooperation with an Indonesian NGO and the local community to plant Jelutong, a local Indonesian species.

Started in December 2011

Jelutong Area under planting

23,585,659 trees(total as of February 2012)

Project where ASKUL takes the responsibility in checking the raw materials for copier papers in the future by carrying out industrial planting of 2 or more trees for each box of original copier paper made in Indonesia.

Status of tree planting available on exclusive website

Responsibility as the Leader in Copier Paper Sales in Japan

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6767

I. FY5/2012 Results




V. FY5/2013 Outlook



68

We plan to achieve double-digit growth in net sales through the steady growth in B-to-B business fueled by the impact of enhanced product range as well as through increased revenue from B-to-C business (year-on-year growth of ¥26.0 billion, or 12.2%).

We expect the gross profit margin to rise on the back of growth in B-to-C direct sales format. We will continue with the incentives to agents that delivered a certain level of success (¥1.0 billion).

SG&A expenses are expected to increase by ¥7.8 billion due to costs for jump-starting B-to-C (sales promotion, campaigns, etc.).

We expect double-digit growth in operating income by securing profits at YASKUL (tentative name) and through stable growth in B-to-B business.

We expect a significant rise in excess of 80% year-on-year in net income as the one-time increase in total income taxes (which has a negative impact on profits) is eliminated.

We plan to achieve profitability at YASKUL (tentative name) from the first year and expect double-digit growth in sales and profits

based on the stable growth in B-to-B business

Summary of FY5/2013 Consolidated Performance Outlook

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69

FY5/2013 Consolidated Performance Outlook

69

212,932 100.0 239,000 100.0 +12.2

47,490 22.3 56,000 23.4 +17.9

40,873 19.2 48,700 20.4 +19.1

6,617 3.1 7,300 3.1 +10.3

6,504 3.1 7,200 3.0 +10.7

2,301 1.1 4,300 1.8 +86.8

Net Sales

Gross Profit


Operating Income

Ordinary Income

Net Income

Amount(¥million)

Amount(¥million)

% of net sales

% of net sales

YoY change

%

FY5/2012 full year (actual) FY5/2013 full year (plan)



70

Consolidated Performance Outlook for 1H and 2H FY5/2013

70

111,000 100.0 +8.5 128,000 100.0 +15.8

25,400 22.9 +10.9 30,600 23.9 +24.5

22,200 20.0 +11.9 26,500 20.7 +26.3

3,200 2.9 +6.3 4,100 3.2 +13.7

3,200 2.9 +7.6 4,000 3.1 +13.3

1,400 1.3 +33.1 2,900 2.3 +132.0

1H FY5/2013

Net Sales

Gross Profit


Operating Income

Ordinary Income

Net Income

Amount(¥million)

Amount(¥million)

% of net sales

% of net sales

YoY change

%

YoY change

%

2H FY5/2013

71

0

500

1,000

1,500

2,000

2,500

(¥billion)

FY5/2012 (actual)Consolidated net sales:

¥197.0 billion

FY5/2013 (forecast)Consolidated net sales: ¥239.0 billion

YoY change: +¥26.0 billionYoY growth: +12.2%

Incr

ease

in n

et sa

les f

rom

YASK

UL (t

enta

tive

nam

e)

Incr

ease

in n

et sa

les f

rom

SO

LOEL

ARE

NA a

nd

ASKU

L AR

ENA

Incr

ease

in s

net a

les f

rom

exi

stin

g bu

sines

ses

(incl

udin

g Al

phaP

urch

ase)

+18.0+3.6+4.5

Existing businesses, etc. (forecast)Net sales: ¥163.0 billionYoY change: +¥3.6 billionYoY growth: +2.2%

SOLOEL ARENA, etc. (forecast)Net sales: ¥57.9 billionYoY change: +¥4.5 billionYoY growth: +8.4%

YASKUL (tentative name) (forecast)

Net sales: ¥18.0 billionYoY change: +¥18.0 billion

Main Factors Affecting FY5/2013 Consolidated Net Sales Forecast

71

250.0

200.0

150.0

100.0

50.0

o



72

0

50

100

150

FY5/2012 operating income (actual): ¥6.6 billion

(¥billion)

Incr

ease

in in

com

e du

e to

sa

les g

row

th

+58

FY5/2013 operating income (forecast): ¥7.3 billion

FY5/2012 (actual)Sales growth YoY: +8.0%Gross profit margin: 22.3%SG&A expense ratio: 19.2%

Incr

ease

in in

com

e du

e to

hig

her

gros

s pro

fit m

argi

n

Decr

ease

in in

com

e du

e to

hi

gher

SG&

A ex

pens

es

+26

FY5/2013 (forecast)Net sales growth YoY: 12.2%Gross profit margin: 23.4%SG&A expense ratio: 20.4%

△78

Factors Affecting FY5/2013 Consolidated Operating Income Forecast

Increase in variable costs on increased net sales: ¥3.6 billion

Policy cost for YASKUL (tentative name): ¥2.1 billion

Others (include fixed costs of YASKUL(tentative name): ¥1.9 billion

72

5.0

10.0

15.0

+5.8

+2.6 -7.8

0

73

Net sales ¥239.0 billion (YoY change: +¥26.0 billion; +12.2%)

We aim to achieve double-digit growth through the steady growth in B-to-B business fueled by the impact of expansion of product range and enhancement of own-brand products in addition to increased revenue from B-to-C business.

• YASKUL (tentative name) net sales target: ¥18.0 billion (YoY change: +¥18.0 billion)

• SOLOEL ARENA, etc. net sales target: ¥57.9 billion (YoY change: +¥4.5 billion)

• Existing businesses, etc. net sales target: ¥163.0 billion (YoY change: +¥3.6 billion)

Gross profit margin: 23.4% (YoY change: +1.1p.p.)- We expect an increase in gross profit margin through expanded sales from B-to-C

business, which takes a direct sales format. - We will continue with the incentives for agents which had a certain measure of success (¥1.0 billion).


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74

SG&A expense ratio: 20.5% (YoY change: +1.3 p.p.) +¥7.8 billion

Capital expenditure ¥27.4 billion[Main items]• Distribution center investments (described earlier) ¥24.2 billion• B-to-C website construction ¥0.5 billion• Additional development for SOLOEL ARENA ¥0.2 billion

(Reference) Depreciation and software amortization: ¥3.4 billion (YoY change: +¥0.4 billion)

We anticipate an increase of ¥7.8 billion after factoring in the cost for jump-start of B-to-C (sales promotion, campaign, etc.)

• YASKUL (tentative name) policy cost (sales promotion, campaign, etc.) ¥2.1 billion• Variable cost increase following net sales increase ¥3.6 billion


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Returning Profit to Shareholders: Dividend

Basic policy on allocation of earnings

Allocate earnings based on the comprehensive assessment of various factors, striking a good balance between two goals⎯namely, “securing sufficient internal reserves for financing capital expenditures to increase the corporate value over a mid- to long-term period” and “pursuing a dividend policy as a means to deliver appropriate returns to meet the expectations of shareholders”⎯while ensuring strong cash flows and sound financial position.

FY5/2012 dividends (plan)

The total number of outstanding shares rose due to the issuance of new shares through third-party allocation, while we have secured funding for ensuring sound financial position and capital expenditures for the time being. At the same time, in addition to the tie-up with Yahoo Japan Corporation, we expect a significant increase in net income from the impact of prioritizing and focusing on business from FY5/2013 onwards. Based on the above policy, we therefore intend to make a stable payment of dividends from surplus to shareholders as planned at the beginning of the period.

Annual dividend of ¥30 (an interim dividend of ¥15 and a fiscal year-end dividend of ¥15) per share

FY5/2013 dividends (forecast)Annual dividend of ¥30 (an interim dividend of ¥15 and a fiscal year-end

dividend of ¥15) per share75



76

ASKUL: Evolving for

Our Customers

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Appendix

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(2) ASKUL original productsMay 2012

(single month)YoY change

May 2011 (single month)

Number of original products 3,602 +258 3,344

Ratio of Green Products: SKU basis

100.0%(75.9%)

+5.7 p.p.(-0.2 p.p.)

94.3%(76.1%)

Share in net sales 14.1% +0.9 p.p. 13.2%

(SKUs)

<Appendix>

Notes:1. The figures above are the results for the month of May each year.2. The ratio of Green Products is computed after excluding national brand products sold exclusively at ASKUL. Further, a new standard that also

includes products from an environmental perspective other than Green Mark has been adopted since 2Q of FY5/2012. The figures in parenthesis above are the ratios of Green Products based on the previous standard.

3. Net sales of original products used as the numerators in calculating the shares in net sales do not include net sales of original copier paper. 4. The figures above include the products listed in Medical & Care Catalogs and Medical Pro Catalogs.

(1) Share of orders placed on the Internet in net sales

FY5/2012 YoY change FY5/2011

Orders via the Internet 67.9% +4.1 p.p. 63.8%

Other 32.1% -4.1 p.p. 36.2%

Notes: 1. The percentages above are based on orders placed. 2. The figures above are results at the parent for each year.

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Construction in progress 8 -63.8% 23

Software in progress 87 -74.7% 344

(¥million)

(Reference)

ItemFY5/2012 FY5/2011

Amount YoY change Amount

[Capital expenditures] 2,621 +14.2% 2,296

Property, plant and equipment 1,086 +99.3% 545

Intangible assets 1,534 -12.4% 1,750

(3) Capital expenditures

Notes:1. Capital expenditures are stated on an accrual basis and do not reflect reductions.2. Construction in progress and software in progress partially include consumption and other taxes. 3. Major capital expenditure items for FY5/2012 were as follows.

Next-generation web development ¥0.64 billion

Material handling equipment system (DCM Center) ¥0.45 billion

<Appendix>

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Askul 140120120726083237 e

Business

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