EU Marketing Feedback - Internet

Research evidence excerpt

EU Marketing Feedback - Internet

Japan | Internet EquityJuneResearch29, 2026

Chart 1 - Valuation comparison basd on theEU Marketing Feedback - Internet

next 12 month EPS

Using EPS from FY12/27, FY9/27,

Just returned from a one-week Europe marketing trip. The top three stocks FY5/27,FY3/27, FY6/27, FY7/27

30x (PER)discussed were Recruit, Mercari, and CyberAgent. Interest in Recruit has 27.1

25.0

25xpicked up, particularly with the share price recovering to the ¥11,000 level. 22.7 22.7 23.3

19.2 20.2We also received inquiries on GMO Payment Gateway and MonotaRO. 20x 17.6 21.2

15.1

13.9Overall, sector interest is gradually coming back after two years of lagging 15x

11.5 12.5

performance. 10x

5x

Overall sector interest rising: We observed improving investor interest in the sector during this

trip. After ~2 years of underperformance, with many stocks now trading at low valuation levels, 0x 30x (PER)

attention toward the Japanese internet space is picking up. While discussions were previously 25x . 19 2 20.2 21.2

centered on AI-driven de-rating, we are now seeing investors begin to reclassify certain names Source: Jefferies, FactSet (6/26/2026 closing price)

as AI-positive or AI-neutral—Recruit being a key example. At the same time, stocks with steady

fundamentals, such as Mercari and MonotaRO, are also gaining attention.

Recruit HD (6098 JP) – Investor interest returning: Investor interest has rebounded. During

our Europe trip in October last year, interest was limited as the stock was labeled “AI-negative.”

Recruit has since effectively communicated the AI-positive impact on Indeed, including

potential earnings upside, alongside share buybacks and solid results. This combination

has supported the share price recovery. Recruit has effectively set a benchmark for how to