Makuake, Inc. · TSE:4479
Makuake — FY2021 Earnings Presentation
65 slides from Makuake's earnings presentation, Oct 26, 2021
Slide 1: FY2021 Materials for Financial Results Presentation
Makuake FY2021 Materials for Financial Results Presentation Makuake, Inc. (Securities code: 4479)
Slide 2: The World Makuake Aspires For
The World Makuake Aspires For * Guided by our vision and mission, we are striving for society enriched through the connection of the "new" that consumers seek and the "new" that companies wish to introduce to the world _ Create a world where worthy things Vision can come to be, grow and endure Lo. C
Slide 3: Makuake's Business Model
Makuake's Business Model * Companies can pre-sell their new products and services still in planning phase on Makuake, while consumers can pre- purchase the products of interest through “support” buying. In exchange, we receive a 20% commission from the companies 2 -em- 20% commission Project Owners
Slide 4: Ecosystem Created by Makuake-Related Services
Ecosystem Created by Makuake-Related Services + By supporting everything from new product and service planning to market launch, and to sales expansion after mass- production, we can accumulate a variety of market data, give hints to companies about the next new product, and continue to provide new
Slide 5: Makuake: Bringing About Sustainable Development and Society
Makuake: Bringing About Sustainable Development and Society + By expanding our business, we are providing equal opportunities to launch new products domestically and overseas, and contribute to value improvement of enterprises that use us, to the creation of revolutionary technologies, and to sustai
Slide 6: Partnerships to Bring About Sustainable Development and Society
Partnerships to Bring About Sustainable Development and Society + In order to bring about sustainable development and society, we believe that it is important to work together with all society constituents and, for that reason, we proactively entered into partnerships with local government bodies, n
Slide 7: Financial Results
Financial Results
Slide 8: Overview of FY2021
Overview of FY2021 While the gross amount of “Support" orders (GMV) came in 2% below the plan, it grew a significant 46.9% YoY With name recognition rising due to various promotion initiatives, our key indicators - the number of published new projects, up 70%, and access UU, up some 50% - have both
Slide 9: Overview of FY2021
Overview of FY2021 * The gross amount of "s' support, buying (GMV) and sales have continued to grow - by a factor of some 1.5 following the surge in business performance last fiscal year. While operating profit declined some JPY 200 J million YoY due to upfront investment mainly in advertising and p
Slide 10: Overview of FY2021 (vs Plan)
Overview of FY2021 (vs Plan) * While GMV came in below the plan impacted by work to strengthen quality assurance system in the first half of the year anda revamp of the project creation framework centered mainly on the curators division in Q4, profits came ahead of the plan due to cost improvements
Slide 11: • 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% -1.0% 10 -2.0% 5 -3.0% 0
• 45 6.0% 40 5.0% 4.0% 35 3.0% 30 2.0% 25 1.0% 20 0.0% 15 -1.0% 10 -2.0% 5 -3.0% 0 -4.0% 2018年９月期 2019年９月期 2020年９月期 2021年９月期
Slide 12: Progress of Key Drivers of GMV Growth (1) Project Publishing System
Progress of Key Drivers of GMV Growth (1) Project Publishing System * Curator consulting serves as a trigger for GMV growth but as a result of explosive growth in the second half of FY2020 coupled with the strengthening of quality assurance system in the first half of FY2021, the second half of the
Slide 13: Progress of Key Drivers of GMV Growth (1) Project Publishing System
Progress of Key Drivers of GMV Growth (1) Project Publishing System + In Q4, we focused on revamping our project publishing system in order to reduce curator workloads and, at the same time, raise the number of curators. We expect to see improvements from the first half of FY2022 Decline in Workload
Slide 14: Progress of Key Drivers of GMV Growth (2) Attracting Customers
Progress of Key Drivers of GMV Growth (2) Attracting Customers + We moved forward with providing new functionalities to make it easier for users visiting Makuake to encounter new products and services. Going forward, we will continue such development to further improve website/in-app "stickiness" (n
Slide 15: Progress of Key Drivers of GMV Growth (2) Attracting Customers
Progress of Key Drivers of GMV Growth (2) Attracting Customers * We are continuing the proactive development aimed at providing optimal customer experience and raising our website/in- app "stickiness" and visit frequency " Improved accuracy of Improved content extraction - _ Enhanced sear« ctionalit
Slide 16: Gross Amount of “Support” Orders: GMV
Gross Amount of “Support” Orders: GMV + 4Q GMV was up 10.6% YoY but down 1.9% QoQ as it was a revamp period for the project publishing system centered mainly on the curators division and we focused on transitioning to new operations (Unit: JPY million) YoY +10.6% 1,215 1,256 1,061 3 851 1Q 2Q 3Q 4Q
Slide 17: • 1,400 40.0% 35.0% 1,200 30.0% 1,000 25.0% 20.0% .0% 400 10.0% 200 5.0%
• 1,400 40.0% 35.0% 1,200 30.0% 1,000 25.0% 800 20.0% 600 15.0% 400 10.0% 200 5.0% 0 0.0%
Slide 18: • 1,200 90.0% 80.0% 1,000 70.0% 60.0% 50.0% 40.0% 0 30.0% 20.0% 200 10.0%
• 1,200 90.0% 80.0% 1,000 70.0% 800 60.0% 50.0% 600 40.0% 400 30.0% 20.0% 200 10.0% 0 0.0%
Slide 19: Selling, General and Administrative Expenses
Selling, General and Administrative Expenses * Costs rose in Q4 as we worked to raise brand recognition by running Web and in-app ads, in addition to TV ads in localities andin taxis in Tokyo Prefecture, and due to active recruitment of personnel. On the other hand, head office-related expenses ecli
Slide 20: • 5.0% 0.0% -5.0% -10.0% -15.0% -20.0% 30 -25.0% -20 -30.0% -70 -35.0% -120
• 330 5.0% 280 0.0% 230 -5.0% 180 -10.0% 130 -15.0% 80 -20.0% 30 -25.0% -20 -30.0% -70 -35.0% -120 -40.0%
Slide 21: Key Performance Indicators
Key Performance Indicators * The number of published new projects rose slightly from Q4 FY2020, when it surged on the back of TV commercials and similar factors, while the repeat "support" order rate remained high at 76%, up 2.2 pt YoY, thanks to improved CRM quality achieved via newsletters to memb
Slide 22: • 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000
• 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0
Slide 23: • 2,100 1,600 1,100 -400
• 160 2,100 140 120 1,600 100 1,100 80 60 600 40 100 20 0 -400
Slide 24: Major Projects Launched in Q4 FY2021
Major Projects Launched in Q4 FY2021 + In addition to increasing number of high-quality projects published by repeat project owners, kitchen items and restaurant/food categories are seeing continued popularity Desk work chair path eeed aielahaeclaes a posalaplletivea lashes J2(¢ 1 2HONBIKE [MADE IN
Slide 25: Major Projects Launched in Q4 FY2021 (Large Enterprises)
Major Projects Launched in Q4 FY2021 (Large Enterprises) * The projects co-produced by MIS serve as successful examples of using R&D capabilities of large enterprises and lead to active inquiries to us and increasing awareness of the services we provide for large enterprises —_ ONE WINE — wT EADS. —
Slide 26: SDGs-Related Projects Launched in Q4 FY2021
SDGs-Related Projects Launched in Q4 FY2021 * We are seeing more new product launches with sustainable development in mind with consideration given to sustainable consumption, production and climate change E 1% @ ma 7 TS ors OM DS IIE, DR, IBRD Sh BS Sh 1 be SLRAOMARAA OM, FRUITING Eco-friendly back
Slide 27: Topics: PR Releases (1)
Topics: PR Releases (1) Commenced 3rd Wave of Commercials for "Support" Buying Service "Makuake" From June 19, 2021, we are running a 3rd wave of commercials - in Tokyo Prefecture on taxi signage and mainly TV commercials in 3 prefectures in Kyushu and Tokai Canon Marketing Japan and NANGA INC., who
Slide 28: Topics: PR Releases (2)
Topics: PR Releases (2) Makuake Concluded Business Cooperation "Makuake Award 2021" Prize-giving Ceremony by Agreement with Kobe City "Makuake" Conducted Online ~~] @® Makuake Award 2021 \ | KOBET. = @Makuake | UNESCO City of Design ae From September 7, 2021, we will partner and On September 11, 202
Slide 29: Growth Strategy for FY2022
Growth Strategy for FY2022
Slide 30: Full-Year Forecasts for FY2022
Full-Year Forecasts for FY2022 + Will raise overall business performance, including the gross amount of "support" orders, by a factor of 1.4 (Units: Millions of yen) FY 2021/9 Change Percentage change Gross Amount of “Support” Orders: GMV 21,536 30,000 +8,463 +39.3% (Taxincluded) neal 4,621 +1578 +3
Slide 31: Growth Strategy for FY2022
Growth Strategy for FY2022 * In FY2022, we will diligently work on raising Makuake's media value and operational excellence Increase the Number of High-Quality Projects Raise the Number of Customers fh Raise CVR Copyright © Makuake, Inc. All Rights Reserved 31
Slide 32: FY2022 Growth Strategy (1) Increase the Number of High-Quality Projects
FY2022 Growth Strategy (1) Increase the Number of High-Quality Projects * We will move forward with raising the number of published new projects by acquiring high-quality projects in mainline genres while fully operating our project publishing system, and through further reinforcement of hiring Acqu
Slide 33: FY2022 Growth Strategy (2) Raise the Number of Customers
FY2022 Growth Strategy (2) Raise the Number of Customers * We will continue to raise the number of Makuake's customers by both generating new customer inflow through increased exposure to consumers, and by encouraging user revisits throug functionalities Raise the Number of Customers through Initi a
Slide 34: FY2022 Growth Strategy (3) Raise CVR
FY2022 Growth Strategy (3) Raise CVR + In order to achieve higher user satisfaction - and that includes project owner users - with Makuake, we will pursue operational excellence, including improvements to website functionality Raising User Activity Rate and Improving CVR through Higher User Satisfac
Slide 35: FY2022 Upfront Investment Plan (1) Service Assets
FY2022 Upfront Investment Plan (1) Upfront Investment in Accumulation of Service Assets * We believe that raising brand awareness is an extremely important factor in building brand assets and, for that reason, we will continue with aggressive upfront investments in various advertising initiatives th
Slide 36: FY2022 Upfront Investment Plan (2) Human Assets
FY2022 Upfront Investment Plan (2) Upfront investment in Accumulation of Human Assets * By recruiting and training - in advance - curators and screening/monitoring staff members in line with our growth plans for the number of project listings, we will further strengthen human assets involved in proj
Slide 37: FY2022 Upfront Investment Plan (3) Ecosystem Assets
FY2022 Upfront Investment Plan (3) Upfront Investment in Accumulation of Ecosystem Assets + We are planning to roll out 4 new services to broaden Makuake’s ecosystem which supports new products and services from their planning to launch, and through sales expansion after the start of mass production
Slide 38: Outline of New Services (1) Makuake Global
Outline of New Services (1) Makuake Global + Makuake Global, the global version of Makuake that accepts "support" buying from overseas, commenced full operations on August 31, 2021 om © Commission fee: 30% M r] k Ud k O Supporters bear customs tariff an Global international shipping charges Project
Slide 39: Outline of New Services (2) “Support” Purchase Service for Buyer
Outline of New Services (2) “Support” Purchase Service for Buyer + “Support® Purchase Service for Buyer which will allows Buyers inside and outside Japan to place purchase orders on the Web while checking on how just-launched products are selling, represents an innovation of sales channels for tradi
Slide 40: Outline of New Services (3) Renewal Version of Makuake Store
Outline of New Services (3) Renewal Version of Makuake Store + We are getting ready for a "renewal open" (post-renewal opening) of the store for which we plan expanded functionalities under the new concept of EC Select Shop for New Products @® Makuake STORE Selling new products in their mass-product
Slide 41: Medium-Term Business Plan
Medium-Term Business Plan 4l
Slide 42: Environment Surrounding Makuake
Environment Surrounding Makuake * We take such trends as digital transformation (DX) of venues for new product launches, globalization of sales channels, growing needs for products and services emphasizing diversity, and global demand expansion for ethical consumption as an opportunity to connect th
Slide 43: Medium-Term Management Policy
Medium-Term Management Policy + In order to maximize our attractiveness as a marketplace, we will work to simultaneously strengthen acquisition of project owners and supporters, and retention of users n Desired state @ Makuakeis an interesting marketplace where many new products are launched every d
Slide 44: Medium-Term Goal for Gross Amount of “Support” Buying (GMV)
Medium-Term Goal for Gross Amount of “Support” Buying (GMV) * With expanding GMV at an annual growth rate of 50-70% set as our internal traget, we are aiming to reach JPY 100 billion by 2025 Medium-term goal for GMV 100 billion yen 22 billion yen IN IS is = IN IS IS In IN is} D< Copyright © Makuake,
Slide 45: Envisioned Progress Towards Medium-Term P&L Goals
Envisioned Progress Towards Medium-Term P&L Goals + We will give top priority to the maximization of GMY, which is a leading indicator of net sales, and enhance upfront investment mainly in promotion, recruitment, and development ‘of functionalities, with the internal target of increasing annual sal
Slide 46: Medium-Term KPI Targets
Medium-Term KPI Targets + Here are our respective KPIs for increasin their targets set to achieve GMV of JPY 100 Many inquiries about attractive projects J No. of new projects 2,000/month Vv gue number of new project owners and supporters, as well as retaining users, with illion Plenty of projects t
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• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Slide 48: Vision of Long-Term Growth
Vision of Long-Term Growth * By expanding and strengthening Makuake's ecosystem and consequently acting as part of social infrastructure, we help connect the diverse power of people and businesses around the world, and support creation and spread of new products and services ® Makuake MIS Imaginatio
Slide 49: Progress Towards Medium-Term Goals
Progress Towards Medium-Term Goals + In order to increase GMV to JPY 100 billion, which is a KGI in our medium-term growth strategy, we will implement growth strategies aiming for an annual growth of 50-70% Fiscal Year See am onlos Percent Change FY2018/9 3,902 +80.2% FY2019/9 5,480 +40.4% FY2020/9
Slide 50: Current KPIs vs Medium-Term Targets
Current KPIs vs Medium-Term Targets + As of FY2021, the progress to medium-term targets is good, with Access UU already exceeding 50% of the goal Medium-Term No. of new projects No of access UU No. of “support” orders Trouble (issue) rate* Goals 2,000/month 30 million/Qtr 2.5 million/Qtr 0.1% A noes
Slide 51: Risks Accompanying Growth and Countermeasures
Risks Accompanying Growth and Countermeasures + We will grasp, analyze, and evaluate risks that may emerge as we execute our medium-term growth plan, implement countermeasures and control these risks Possible risks Leakage of personal information through hacking, etc. Issues with projects, such as d
Slide 52: ESG and Sustainability
ESG and Sustainability
Slide 53: Initiatives for ESG and Sustainability (1)
Initiatives for ESG and Sustainability (1) + We recognize that ESG initiatives and sustainable business operation are crucially important; for implementing our mid-term growth plan. Accordingly, all aspects of our ESG initiatives incorporate the viewpoint of sustainability Copyright © Makuake, Inc.
Slide 54: Initiatives for ESG and Sustainability (2)
Initiatives for ESG and Sustainability (2) + We recognize that ESG initiatives and sustainable business operation are crucially important for implementing our mid-term growth plan. Accordingly, all aspects of our ESG initiatives incorporate the viewpoint of sustainability Environment Governance + Su
Slide 55: Appendix
Appendix
Slide 56: Business Results Summary: YoY, Full-Year
Business Results Summary: YoY, Full-Year (Units: Millions of yen) Gross Amount of “Support” Orders: GMV (Tax included) Net Sales Gross Profit Operating Profit Ordinary Profit Net Income FY2020/9 14,664 3,225 2,656 510 512 369 Change YoY +6,872 +1,396 +1,149 Alg1 A185 A123 Percent Change YoY +46.9% +
Slide 57: Business Results Summary: YoY, standalone quarter
Business Results Summary: YoY, standalone quarter (Units: Millions of yen) Gross Amount of “Support” Orders: GMV (Tax included) Net Sales Gross Profit Operating Profit Ordinary Profit Net Income FY2020/9 Q4 5,252 1,132 937 A20 A18 14 Change YoY Percent Change YoY +10.6% +13.7% +10.1% +725.2% 57
Slide 58: Business Results Summary: QoQ, standalone quarter
Business Results Summary: QoQ, standalone quarter FY2021/9 (Units: Millions of yen) Q3 Gross Amount of “Support” Orders: GMV 5,917 (Tax included) Net Sales 1,232 Gross Profit 1,035 Operating Profit 137 Ordinary Profit 137 Net Income 89 Change QoQ A110 +55 A3 AQ All +27 Percent Change QoQ A1.9% +4.5%
Slide 59: KPIs: YoY, Full-Year
KPIs: YoY, Full-Year No. of New Projects Project Owners Repeat Rate (%)"! Repeat “Support” Order Rate (%)'2 No. of Access Unique Users No. of Members No. of “Support” Orders Copyright © Makuake, Inc. All Rights Reserved FY2020/9 4,631 Bia, 71.8 29,003,751 1,262,758 1,494,777 ‘months rt” order pacedi
Slide 60: KPIs: YoY, standalone quarter
KPIs: YoY, standalone quarter FY2020/9 Q4 No. of New Projects 1,559 Repost Rate) 40.2 Repeat Suppo order 71.4 Unique Users 10,585,274 No. of Members 1,262,758 No. of “Support” Orders 499,418 Copyright © Makuake, Inc. All Rights Reserved ‘months rt” order pacedin the last 12 months to tot Change Perc
Slide 61: KPIs: QoQ, standalone quarter
KPIs: QoQ, standalone quarter FY2021/9 Q3 No. of New Projects 2,213 Repost Rate) 45.2 Repeat Suppo order 73.2 Unique Users 13,650,096 No. of Members 1,735,354 No. of “Support” Orders 515,757 Copyright © Makuake, Inc. All Rights Reserved ‘months rt” order pacedin the last 12 months to tot Change Perc
Slide 62: Dividend Policy
Dividend Policy As the company is currently in a state of growth, we believe that by retaining profits and prioritizing investment in expanding business size and improving earning power will lead to maximization of our corporate value and a continuous stream of profit return to shareholders. As to f
Slide 63: Disclaimer and Caution Regarding Future Outlook
Disclaimer and Caution Regarding Future Outlook @ While the content of this document has been prepared based on generally-recognized economic and social conditions as of October 26, 2021 and certain assumptions deemed reasonable by Makuake, Inc., it may change without notice due to shifts in busines
Slide 64: Inquiries about IR
Copyright © Makuake, Inc. All Rights Reserved Inquiries about IR |[email protected] 64
Slide 65: Makuake
@® Makuake