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AJOT

Beenos • Q4 2024

Beenos (3328) – Notice of tender offer at +19% premium

Beenos, an operator of E-commerce platforms allowing overseas consumers to purchase Japanese products, was the largest contributor over the quarter, adding +372bps to performance as its share price rose +50%.

A significant portion of Beenos’ profits is derived from its Global E-commerce platform. This is primarily centred around a service called ‘Buyee’, which enables overseas customers to purchase items from popular e-commerce sites in Japan, such as Yahoo! Japan, Mercari and Rakuten. Buyee’s gross merchandise value has experienced robust growth at an annual rate of +31%.

During the quarter, Beenos received an advance notice of a tender offer bid of Y4,000 per share from LY Corporation at a +19% premium to the undisturbed closing price on 18th December 2024, boosting AJOT’s NAV by +1.7%.

As a large shareholder owning close to 10% of the voting rights of Beenos, we have engaged extensively with the Board of Beenos on ways to enhance sustainable long-term corporate value. Beenos serves as another example of how AJOT’s concentrated portfolio of asset-backed small to mid-caps can benefit from AVI’s active engagement strategy against a backdrop of rapidly increasing corporate activity in Japan.

We added Beenos to the portfolio in January 2024, and at month-end it is now the largest holding, accounting for 10.6% of AJOT’s NAV. The investment has generated an ROI of +125% for an IRR of +188%.

AJOT

Beenos • November 2024

Beenos (3328) – Strong earnings growth with activists prominent

Beenos, now the largest position in the portfolio accounting for 9.7% of NAV, was the largest contributor over the month, adding +256bps to performance as its share price soared +28.9% higher.

Nearly all of Beenos’ revenue is derived from ‘Buyee’, an E-Commerce site which allows overseas customers to purchase from Japanese sites, such as Yahoo! Japan, Mercari and Rakuten. The more than 40% combined stake held by activist investors leaves Beenos positioned for constructive engagement focused on driving corporate reform.

During the month, Beenos disclosed its Q4 earnings results, with EBIT growing +153% YoY and revenue up +22%. The announcement also included a dividend payout guideline of 30% for the first time, with a total shareholder return target ratio also included in the mid-term plan along with an increased ROE target of 20%.

We took advantage of the temporary share price weakness at the beginning of November, strategically adding to our position to support our engagement agenda.

We added Beenos to the portfolio in January 2024 and have generated an ROI of +106% for an IRR of +186% to month-end. We see substantial remaining upside to the current share price, with Beenos’ 9.7% position in AJOT reflective of our conviction.

AJOT

Beenos • Q3 2024

Beenos, an operator of E-commerce platforms allowing overseas consumers to purchase Japanese products, was the second largest contributor, adding +138bps to performance as its share price rose +10.9%. Beenos’ share price bounced back +31%, having fallen -16% to its lowest point on August 5 th amidst the period of volatility.

A significant portion of Beenos’ profits is derived from its Global E-commerce platform. This is primarily centred around a service called ‘Buyee’, which enables non-Japanese living abroad to purchase items from popular e-commerce sites in Japan, such as Yahoo! Japan, Mercari and Rakuten. Buyee’s gross merchandise value has experienced robust growth at an annual rate of +31%.

Beenos continues to accumulate net cash and securities, which now cover 58% of its market cap compared to 11% in 2019 over a period in which its market cap has increased +120%. Beenos has also grown earnings at an annual rate of +27% over the past five years, highlighting the quality of the business and its ability to attract users.

We added Beenos to the portfolio in January this year, and is now the fourth largest holding, accounting for 7.5% of AJOT’s NAV, such is our conviction. The investment has so far generated an ROI of +49%. Trading at an EV/EBIT multiple of 4.4x, we anticipate an additional +115% upside to the current share price.

AJOT

Beenos • August 2024

Beenos, an operator of E-commerce platforms allowing overseas consumers to purchase Japanese products, was the largest contributor, adding +69bps to performance as its share price rose +9.4%. Beenos’ share price bounced back +37% during the month, having fallen -20% to its lowest point on August 5th. Beenos derives a significant portion of its profits from its Global E-commerce platform.

This is primarily centred around a service called ‘Buyee’, which enables non-Japanese living abroad to purchase items from popular e-commerce sites in Japan, such as Yahoo! Japan, Mercari and Rakuten. Buyee’s gross merchandise value has experienced robust growth at an annual rate of +31%. Beenos continues to accumulate cash and net cash and securities now cover 55% of its market cap compared to 11% in 2019 over a period in which its market cap has increased by +127%.

Beenos has also grown earnings at an annual rate of +27% over the past five years, highlighting the quality of the business and its ability to attract users. Beenos was added to the portfolio in January this year, and is now the third largest holding, accounting for 7.9% of AJOT’s NAV, such is our conviction. The investment has so far generated an ROI of +54%, adding +360bps to NAV in total. Trading at an EV/EBIT multiple of 5.8x, we anticipate an additional +70% upside to the current share price.

AJOT

Beenos • Q1 2024

BEENOS was our largest purchase, accounting for 5.2% of NAV by the quarter end. Beenos operates a global ecommerce platform, primarily focused on a service called ‘Buyee’, which enables customers living abroad to purchase items from popular Japanese e-commerce sites, such as Yahoo! Japan, Mercari and Rakuten. Over the past eight years, Buyee’s gross merchandise value has grown at an annual rate of 31.3%. At the time of our purchase, Beenos was trading at a modest 2.9x EV/EBIT multiple, with net cash and securities comprising over 79% of its market cap. Due to the persistent undervaluation, investment in non-core businesses, and a lacklustre share price, an increasing number of shareholders have expressed opposition to the CEO’s reappointment. We see significant upside if management can simplify the structure, exit loss making business lines and return excess cash to shareholders.

AJOT

Beenos • February 2024

We initiated a small position in Beenos, building it to a 4.3% weight by the end of the month. Beenos operates a global e-commerce platform, primarily focused on a service called ‘Buyee’, which enables customers living abroad to purchase items from popular Japanese ecommerce sites, such as Yahoo! Japan, Mercari and Rakuten. Over the past eight years, Buyee’s gross merchandise value has grown at an annual rate of 31.3%. At the time of purchase, Beenos was trading at a modest 2.9x EV/EBIT multiple, with net cash and securities comprising over 79% of its market cap. Due to the persistent undervaluation, diworsification1 from the core e-commerce business, and a lacklustre share price, investors frustration is growing. This is evidenced by a rising number of shareholders opposing the CEO’s reappointment. The market seemed to welcome AVI as a shareholder, anticipating increased pressure from our presence, with the share price rising by +17% the day following our 5% declaration. In just a month, our investment has increased by 34%, and we still see significant upside potential.

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Disclaimer

The content of this website is issued by Asset Value Investors Limited (“AVI”), 2 Cavendish Square, London W1G 0PU.  AVI is authorised and regulated by the Financial Conduct Authority of the United Kingdom (the “FCA”) and is a registered investment adviser with the Securities and Exchange Commission of the United States. While the Investment Manager is registered with the SEC as an investment adviser, it does not comply with the Advisers Act with regard to its non-U.S. clients.

To the extent that material on this website is issued in the UK, it is issued for the purposes of the Financial Services and Markets Act 2000

Intended Audience
The information on this website is provided to you for informational purposes only and should not be regarded as an offer or solicitation of an offer to buy or sell any investments or related services that may be referenced on this website. The information on this website is subject to change without notice.

It is your responsibility to observe all applicable laws and regulations of any relevant jurisdiction.

This website is primarily intended for United Kingdom (“UK”) residents. It is not intended for distribution to, or use by, any U.S. persons or persons in any other country where such distribution, publication or use would be contrary to local law or regulation or in which AVI does not hold any necessary licence or registration. Individuals or entities in respect of whom such prohibitions apply, must not access or use the AVI website.

No Tax or Legal Advice
Nothing on this website constitutes investment, legal, tax or other advice nor should it be relied upon in making an investment decision.

Money Laundering
As a result of money laundering regulations, additional documentation for identification purposes may be required when you make your investment. Full details are contained in the relevant subscription documents.

Investment Decisions
As with all financial or investment matters, you should exercise great care in using the information provided on this website or available through links from this website. You should research the facts, opinions and strategies mentioned in this website before making any financial investment decisions. If you are unsure about the meaning of any information provided please consult your financial adviser or other professional adviser.

No Warranty; Limitation on Liability
Whilst all reasonable care has been taken in the preparation of this website, AVI cannot guarantee the accuracy or completeness of such information, either expressly or implied.

Neither AVI, any of its directors, officers or employees, nor any third party vendor, will be liable or have any responsibility of any kind for any loss or damage that you incur in the event of any failure or interruption of this site, or resulting from the act or omission of any other party involved in making this site or the data contained therein available to you, or from any other cause relating to your access to, inability to access, or use of the site or these materials, whether or not the circumstances giving rise to such cause may have been within the control of AVI, or of any vendor providing software or services support.

All information and content on this website is, subject to applicable statutes and regulations, furnished “as is”, without warranty of any kind, express or implied, including but not limited to implied warranties of merchantability, fitness for a particular purpose or non-infringement. We make no warranty as to the operation, functionality or availability of this website, that the website will be error-free or that defects will be corrected.

In no event shall AVI be liable to any indirect, incidental, special or consequential damages arising out of or in connection with the use of this website, the inability to use this site or any products or services obtained or stored in or from this website, whether based on contract, tort, strict liability or otherwise. These limitations also apply to any third party claims against users.

Intellectual Property
Everything on this website is the valuable intellectual property of Asset Value Investors Limited, or their respective suppliers. We protect our intellectual property rights to the full extent of the law.

Copyright Policy
No permission is granted to copy, distribute, modify, post or frame any text, graphics, video, audio, software code, or user interface design or logos.

Hyperlinks
The existence of hyperlinks should not be construed as an endorsement, approval or verification by AVI of any content available on third party sites. By providing access to other websites, we are not recommending the purchase or sale of products or services provided by the website’s sponsoring organization. We do not review any of these third party sites. AVI reserves the right to require written consent for, or request the removal of, any links to our website.

AVI disclaims all responsibility and liability for the content on third party sites.

Security
For your protection, we require the use of encryption technologies for certain types of communications conducted through this website. While we provide those technologies and use other reasonable precautions to protect confidential information and provide suitable security, we do not guarantee or warrant that information transmitted through the Internet is secure, or that such transmissions will be free from delay, interruption, interception or error. You acknowledge and agree that users of this website and users, owners, or managers of third party websites may not: (i) collect or store personal data about other users of this website or (ii) upload, e-mail or otherwise transmit any material that contains viruses or any other computer code, files or programs that might interrupt, limit or interfere with the functionality of any computer software, hardware, database or file, or communications equipment that is owned, leased or used by AVI.

Privacy Policy
We encourage you to read AVI’s Privacy Policy which can be obtained by clicking the Privacy Policy button found on the Homepage.

General Terms
Deliberate misuse of any element of this website including, without limitation, hacking, introduction of viruses or similar code, disruption or excessive use or any use in contravention of applicable law, is expressly prohibited and we reserve the right to terminate your access to the website, and at our discretion, pass information to the legal authorities.

We reserve the right at any time on giving notice to change or modify these terms and conditions or to impose new conditions in respect of this website or to change or discontinue any aspect or feature of this website. We shall be entitled to terminate your access to this website at any time on giving notice to you and in any event if you commit any breach of these terms and conditions. We shall have no liability to you for such termination. Notices may be served by any reasonable method including posting on this website.

You shall indemnify us from and against all actions, claims, proceedings, costs and damages (including any damages or compensation paid by us on the advice of its legal advisors to compromise or settle any claim) and all legal costs or expenses arising out of your use of this e webSite, any breach of any applicable law, statute, ordinace, regulation or third party rights and any breach by you of the software licenses and service agreements governing the software made available to you in connection with this website.

These terms and conditions shall be governed by and construed in accordance with the laws of England without regard to conflicts of law principles. Nothing in these Terms and Conditions will exclude or restrict any duty or liability we may have under applicable rules or regulations.

AVI Global Trust – General Risk Factors
AVI Global Trust plc is a public company listed and traded on the London Stock Exchange. Past performance should not be seen as an indication of future performance. The price of investments and the income from them may fall as well as rise and investors may not get back the full amount invested. The trust uses gearing techniques (leverage) which will exaggerate market movements both down and up which could mean sudden and large falls in market value. Please refer to the Key Features Document for further details effecting your investment.

Applications to invest in AVI Global Trust referred to on this website, must only be made on the basis of the current Key Features Document, or other applicable terms and conditions. Past performance should not be seen as an indication of future performance. Market and exchange rate movements may cause the value of a fund to rise or fall and an investor may not get back the amount invested.

As a result of money laundering regulations, additional documentation for identification purposes may be required when you make your investment. Details are contained in the relevant application documents.

If you are unsure about the meaning of any information provided please consult your financial adviser or other professional adviser.

By agreeing to these terms, you agree that we may contact you by post, fax, email, SMS messaging or by other forms of electronic media to inform you of our products and services that we believe you might be interested in.

Disclaimer

The content of this website is issued by Asset Value Investors Limited (“AVI”), 2 Cavendish Square, London W1G 0PU.

AVI is authorised and regulated by the Financial Conduct Authority of the United Kingdom (the “FCA”) and is a registered investment adviser with the Securities and Exchange Commission of the United States. While the Investment Manager is registered with the SEC as an investment adviser, it does not comply with the Advisers Act with regard to its non-U.S. clients.

Intended Audience
The information on this website is provided to you for informational purposes only and should not be regarded as an offer or solicitation of an offer to buy or sell any investments or related services that may be referenced on this website.The information on this website is subject to change without notice.

This website is primarily intended for UK residents. It is not intended for distribution to, or use by, any U.S. persons or persons in any other country where such distribution or use would be contrary to local law or regulation.

It is your responsibility to observe all applicable laws and regulations of any relevant jurisdiction.

No Tax or Legal Advice
Nothing on this website constitutes investment, legal, tax or other advice nor should it be relied upon in making an investment decision.

Money Laundering
As a result of money laundering regulations, additional documentation for identification purposes may be required when you make your investment. Full details are contained in the relevant subscription documents.

Investment Decisions
As with all financial or investment matters, you should exercise great care in using the information provided on this website or available through links from this website. You should research the facts, opinions and strategies mentioned in this website before making any financial investment decisions. If you are unsure about the meaning of any information provided please consult your financial adviser or other professional adviser.

No Warranty; Limitation on Liability
Whilst all reasonable care has been taken in the preparation of this website, AVI cannot guarantee the accuracy or completeness of such information, either expressly or implied. Neither AVI, any of its directors, officers or employees, nor any third party vendor, will be liable or have any responsibility of any kind for any loss or damage that you incur in the event of any failure or interruption of this site, or resulting from the act or omission of any other party involved in making this site or the data contained therein available to you, or from any other cause relating to your access to, inability to access, or use of the site or these materials, whether or not the circumstances giving rise to such cause may have been within the control of AVI, or of any vendor providing software or services support.

All information and content on this website is, subject to applicable statutes and regulations, furnished “as is”, without warranty of any kind, express or implied, including but not limited to implied warranties of merchantability, fitness for a particular purpose or non-infringement. We make no warranty as to the operation, functionality or availability of this website, that the website will be error-free or that defects will be corrected.

In no event shall AVI be liable to any indirect, incidental, special or consequential damages arising out of or in connection with the use of this website, the inability to use this site or any products or services obtained or stored in or from this website, whether based on contract, tort, strict liability or otherwise. These limitations also apply to any third party claims against users.

Intellectual Property
Everything on this website is the valuable intellectual property of Asset Value Investors Limited, or their respective suppliers. We protect our intellectual property rights to the full extent of the law.

Copyright Policy
No permission is granted to copy, distribute, modify, post or frame any text, graphics, video, audio, software code, or user interface design or logos.

Hyperlinks
The existence of hyperlinks should not be construed as an endorsement, approval or verification by AVI of any content available on third party sites. By providing access to other websites, we are not recommending the purchase or sale of products or services provided by the website’s sponsoring organization. We do not review any of these third party sites. AVI reserves the right to require written consent for, or request the removal of, any links to our website.

AVI disclaims all responsibility for the content of third party sites

Security
For your protection, we require the use of encryption technologies for certain types of communications conducted through this website. While we provide those technologies and use other reasonable precautions to protect confidential information and provide suitable security, we do not guarantee or warrant that information transmitted through the Internet is secure, or that such transmissions will be free from delay, interruption, interception or error.

You acknowledge and agree that users of this website and users, owners, or managers of third party websites may not: (i) collect or store personal data about other users of this website or (ii) upload, e-mail or otherwise transmit any material that contains viruses or any other computer code, files or programs that might interrupt, limit or interfere with the functionality of any computer software, hardware, database or file, or communications equipment that is owned, leased or used by AVI.

Privacy Policy
We encourage you to read AVI’s Privacy Policy which can be obtained by clicking the Privacy Policy button found on the Homepage.

General Terms
Deliberate misuse of any element of this website including, without limitation, hacking, introduction of viruses or similar code, disruption or excessive use or any use in contravention of applicable law, is expressly prohibited and we reserve the right to terminate your access to the website, and at our discretion, pass information to the legal authorities.

We reserve the right at any time on giving notice to change or modify these terms and conditions or to impose new conditions in respect of this website or to change or discontinue any aspect or feature of this website. We shall be entitled to terminate your access to this website at any time on giving notice to you and in any event if you commit any breach of these terms and conditions. We shall have no liability to you for such termination. Notices may be served by any reasonable method including posting on this website.

You shall indemnify us from and against all actions, claims, proceedings, costs and damages (including any damages or compensation paid by us on the advice of its legal advisors to compromise or settle any claim) and all legal costs or expenses arising out of your use of thise website, any breach of any applicable law, statute, ordinace, regulation or third party rights and any breach by you of the software licenses and service agreements governing the software made available to you in connection with this website.

These terms and conditions shall be governed by and construed in accordance with the laws of England without regard to conflicts of law principles. Nothing in these Terms and Conditions will exclude or restrict any duty or liability we may have under applicable rules or regulations.

AVI Global Trust – General Risk Factors

AVI Global Trust plc is a public company listed and traded on the London Stock Exchange.

Past performance should not be seen as an indication of future performance. The price of investments and the income from them may fall as well as rise and investors may not get back the full amount invested. The trust uses gearing techniques (leverage) which will exaggerate market movements both down and up which could mean sudden and large falls in market value. Please refer to the Key Features Document for further details effecting affecting your investment.

Applications to invest in AV Global Trust referred to on this Site, must only be made on the basis of the current Key Features Document, or other applicable terms and conditions. Past performance should not be seen as an indication of future performance. Market and exchange rate movements may cause the value of a fund to rise or fall and an investor may not get back the amount invested.

As a result of money laundering regulations, additional documentation for identification purposes may be required when you make your investment. Details are contained in the relevant application documents. If you are unsure about the meaning of any information provided please consult your financial adviser or other professional adviser.

By agreeing to these terms, you agree that we may contact you by post, fax, email, SMS messaging or by other forms of electronic media to inform you of our products and services that we believe you might be interested in.

Disclaimer

INVESTOR – Risk Warnings

It is very important that you read this warning and disclaimer before proceeding, as it explains certain legal and regulatory restrictions applicable to any investment services and products we provide.

The content of this website is issued by Asset Value Investors Ltd (“AVI”), 2 Cavendish Square, London W1G 0PU

AVI is authorised and regulated by the Financial Conduct Authority (“FCA”) in the United Kingdom.

This website is not directed at any person in any jurisdiction where it is illegal or unlawful to access and use such information. AVI disclaims all responsibility if you access any information in breach of any local law or regulation. All persons who access this website are required to inform themselves and to abide with all applicable local law, regulations and restrictions.

The information on this website is not directed at any person or entity in the United States, and this site is not intended for distribution or to be used by any person or entity in the United States unless those persons or entities are existing investors in funds managed by AVI and they have applicable US exemptions.

Nothing on this website constitutes investment, legal, tax or other advice nor should it be relied upon in making an investment decision.

The funds referred to in this website are alternative investment funds (“AIFs”). The promotion of such funds and the distribution of offering materials in relation to such funds is accordingly restricted by law.

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An application for shares in any of the funds referred to on this site should only be made having fully read fully the relevant prospectus and most recent financial statement and semi-annual financial statements published thereafter.

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AVI is not soliciting any action based on it and it does not constitute a personal recommendation or investment advice.

Should you have any queries about the investment funds referred to on this website, you should contact your financial adviser.

Past performance is not an indication of future performance. The value of investments and the income from them may go down as well as up and investors may not get back the amount invested.

The funds noted in this website may be subject to higher risk and volatility than other funds and may not be suitable for all investors. These funds are not regulated.

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The existence of hyperlinks should not be construed as an endorsement, approval or verification by AVI of any content available on third party websites. By providing access to other websites, we are not recommending the purchase or sale of products or services provided by the website’s sponsoring organization. We do not review any of these third party websites.

No permission is granted to copy, distribute, modify, post or frame any text, graphics, video, audio, software code, or user interface design or logos.

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Deliberate misuse of any element of this Website including, without limitation, hacking, introduction of viruses or similar code, disruption or excessive use or any use in contravention of applicable law, is expressly prohibited and we reserve the right to terminate your access to the Website, and at our discretion, pass information to the legal authorities.

We reserve the right at any time on giving notice to change or modify these terms and conditions or to impose new conditions in respect of this website or to change or discontinue any aspect or feature of this website. We shall be entitled to terminate your access to this website at any time on giving notice to you and in any event if you commit any breach of these terms and conditions. We shall have no liability to you for such termination. Notices may be served by any reasonable method including posting on this website.

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