Slide 1: Results of Operations for the Fiscal Year Ended April 30, 2021
Results of Operations for the Fiscal Year Ended April 30, 2021 (16th Period) May 1, 2020 – April 30, 2021 Smaregi, Inc. Securities code: 4431
Slide 2: Contents
Contents 2 P3 Impact of COVID-19 P4 FY4/21 Financial Summary P19 Business Summary P33 Business Plan for FY4/22 P40 Medium-term Plan P42 Appendix
Slide 3: Impact of COVID-19
Impact of COVID-19 3 Third declaration of a state of emergency in Japan (Started on April 25, 2021) Effect on Number of Transactions Effect on Number of Meetings with Prospective Customers Economic activity was restricted during declarations of a state of The number of sales meetings continues to cl
Slide 4: FY4/21 Financial Summary
4 FY4/21 Financial Summary May 1, 2020 – April 30, 2021
Slide 5: FY4/21 Financial Highlights
FY4/21 Financial Highlights 5 • Achieved our eighth consecutive year of higher sales and earnings. • Despite the negative effects of COVID-19, sales were ¥3,324 million, 102.2% of the fiscal year plan. • The operating margin was a record-high 25.4% as SG&A expenses were held down due to the uncertai
Slide 6: Financial Highlights
Financial Highlights FY4/21 Financial Summary 6 Sales were 2.2% higher than the plan despite challenges created by the prolonged COVID-19 crisis. Operating profit was 24.6% above the plan and 12.6% higher than in FY4/20 even though the prior fiscal year included one-time demand due to a tax rate rev
Slide 7: Balance Sheet
Balance Sheet FY4/21 Financial Summary 7 Net assets increased 10.7% from one year earlier due to strong performance. The equity ratio remains high at 81.7% after a small decrease caused by the repurchase of stock in October 2020. Current liabilities increased because of advances received due to stro
Slide 8: Statement of Income
Statement of Income FY4/21 Financial Summary 8 SG&A expenses increased only 4% as recruiting and advertising expenditures were held down because of the COVID-19 crisis. Sales and earnings increased even though the prior fiscal year included one-time demand due to a tax rate revision. FY4/21 (Million
Slide 9: Cash Flows
Cash Flows FY4/21 Financial Summary 9 Operating cash flows increased because of higher sales and earnings and cash used in financing activities increased because of the purchase of ¥315 million of treasury shares. YoY change (Millions of yen) FY4/21 FY4/20 (May 2020 - Apr. 2021) (May 2019 - Apr. 202
Slide 10: Changes in Net Sales, Operating Profit and Operating Margin
Changes in Net Sales, FY4/21 Financial Summary Operating Profit and Operating Margin 10 The operating margin was a record-high 25.4% as recruiting and advertising expenditures were held down due to the uncertain outlook created by COVID-19. The strong growth of operating profit continued despite the
Slide 11: Quarterly Changes in Net Sales, Operating Profit and Operating Margin
Quarterly Changes in Net Sales, FY4/21 Financial Summary Operating Profit and Operating Margin 11 The operating margin fell to 5.8% in 4Q FY4/20 because of business investments but quickly returned to the 20% level. (Millions of yen) Operating margin Net sales Operating profit 1,250 40% 1,000 30.2%
Slide 12: Changes in Sales Composition FY4/21
Changes in Sales Composition FY4/21 Financial Summary 12 Despite the negative effects of COVID-19, subscription sales (monthly fees for cloud services) increased steadily. (Millions of yen) Monthly fees for cloud services Products for cloud services Others FY4/21 1,250 Subscription sales ratio 2 3 1
Slide 13: Annual Recurring Revenue (Subscription Sales)
Annual Recurring Revenue (Subscription Sales) FY4/21 Financial Summary 13 The number of fee-paying stores is increasing even during the COVID-19 crisis. ARR increased 30.3% from one year earlier. ARR at end of quarter*2 YoY +30.3% (Millions of yen) ARR 2,000 QoQ +8.2% 2,076 3 ¥2.07 billion 1,919 4 1
Slide 14: Analysis of Changes in Operating Profit (YoY)
Analysis of Changes in Operating Profit (YoY) FY4/21 Financial Summary 14 Growth of subscription sales (Millions of yen) 60 (56) 66 2 Advertising • Number of fee-based contracts increased Lower (17) expenses Rent (47) 73 cost of Personnel Logistics • Subscription sales increased, mainly resulting sa
Slide 15: Quarterly Changes in SG&A Expenses
Quarterly Changes in SG&A Expenses FY4/21 Financial Summary 15 Business investments peaked in 4Q FY4/20, after which the SG&A ratio returned to the 30% level. SG&A expense Others Depreciation Rent Advertising Logistics cost Personnel (Millions of yen) ratio expenses expenses 500 1,216 57.1% 1,168 36
Slide 16: Growth in Number of Employees
Growth in Number of Employees FY4/21 Financial Summary 16 The number of employees decreased slightly from the previous year in part because recruiting activities were temporarily suspended in the first half. Currently recruiting activities are resumed. The average age is 32.8 and the workforce avera
Slide 17: Main Shareholders
Main Shareholders FY4/21 Financial Summary 17 Ownership mainly by overseas institutional investors increased. Smaregi, Inc. 0% 0.8% 4.0% 3.3% Venture Capital 5.3% 8.4% Trust banks 9.3% Institutional investors 1.6% Foreign companies, etc. 15.5% 1.6% 23.9% 10.4% 1.7% 0.5% 3.8% Financial instruments fi
Slide 18: Dividend Policy
Dividend Policy FY4/21 Financial Summary 18 The basic policy of Smaregi is to pay a dividend that reflects results of operations and the current financial condition. As Smaregi is still in the growth phase of its operations, there has been no dividend since the company’s inception in order to retain
Slide 19: Business Summary
19 Business Summary
Slide 20: Smaregi KPI (May 2020 - Apr. 2021)
Smaregi KPI (May 2020 - Apr. 2021) Business Summary 20 ARR ARPA ARPU Avg. stores per contract 2.07 billion yen 17,480 yen 7,389 yen 2.37 stores YoY +30.3% YoY +2.1% YoY +0.1% YoY +2.2% CAC LTV Unit economics MRR churn LTV/CAC 96,297 yen 761,473 yen 7.9 0.66% YoY -2.3% YoY -0.37% YoY +2.0% YoY -0.07%
Slide 21: Smaregi Time Card KPI
Smaregi Time Card KPI (May 2020 - Apr. 2021) Business Summary 21 ARR ARPA 247 million yen 5,460 yen YoY +16.1% YoY -7.0% Registered businesses Registered employees 100,273 stores 1,760,775 YoY +18.0% YoY +31.1% ARR (Annual recurring revenue from monthly Smaregi Time Card utilization fees) is April 2
Slide 22: FY4/21 Topics
FY4/21 Topics Business Summary 22 Apr. 2021 • Eight winners announced in the Smaregi App Contest with a ¥10 million prize • Smaregi is a diamond sponsor of the U-22 Programming Contest • Business and equity alliance with KMW, provider of the Hata Luck ® store management tool Mar. 2021 • Announcement
Slide 23: New Product Development Activities in FY4/21
New Product Development Activities in FY4/21 Business Summary 23 There were 124 updates during FY4/21 in order to respond to requests for users, add functions, and for other improvements and progress. 71 Updates 21 32 Updates Updates Smaregi Smaregi Waiter Smaregi Time Card • Opened the Smaregi App
Slide 24: Smaregi App Market Progress
Smaregi 4 Progress Business Summary 24 30.6% QoQ increase in the number of app development partners! A marketplace with a steady stream of new apps that unite the diverse needs of stores with the ability of developers to supply the best possible solutions. App Development Partners (as of April 30, 2
Slide 25: Winners of the Smaregi App Contest
Winners of the Smaregi App Contest Business Summary 25 Smaregi held an app contest with a grand prize of ¥10 million, an unusually large amount. Eight apps from 56 entries were selected as prize winners. Overall, the contest helped invigorate the Smaregi App Market. Cleeean By Taiko Partners Co., Lt
Slide 26: Composition of Plan Categories with Fees
Composition of Plan Categories with Fees Business Summary 26 Smaregi continued to sign up new stores even during the prolonged COVID-19 crisis. As a result, the share of these stores increased 1.2 pct. points to 20.3%. 96,313 92,824 Pct. of fee-paying Fee-paying No-fee stores 89,554 stores stores 86
Slide 27: Share of Active Stores (Including Stores Paying No Fee)
Share of Active Stores (Including Stores Paying No Fee) Business Summary 27 Smaregi is using many activities to increase the pct. of active stores with the goal of providing a service stores use every day. The active store ratio increased 2.3 pct. points from the previous year to 25.7%. 39.5% Number
Slide 28: Composition of Plan Categories with Fees
Composition of Plan Categories with Fees Business Summary 28 The growth rate of users of fee-based plans slowed because of the decline in economic activity, including shorter store operating hours and other COVID-19 precautions. Nevertheless, there were net increases in all plan categories and 22.3%
Slide 29: Analysis of Change in MRR (Only Smaregi monthly fee)
Analysis of Change in MRR (Only Smaregi monthly fee) Business Summary 29 MRR was affected by downgrades and cancellations due to the prolonged impact of states of emergency on economic activity. (Millions of yen) 200 9 (11) (32) 150 53 MRR expansion MRR MRR New MRR downgrade churn 100 145 126 50 0 F
Slide 30: Attrition Rate
Attrition Rate Business Summary 30 The FY4/21 average attrition rate fell to a new all-time low of 0.66%. The low rate even during the COVID-19 crisis is the result of measures to improve the customer experience (better customer services and other actions). 5% Attrition Attrition Attrition Attrition
Slide 31: Average Revenue per Account and User (ARPA/ARPU)
Average Revenue per Account and User (ARPA/ARPU) Business Summary 31 The goal is to raise ARPU/ARPPU by leveraging a large app market for customer success. Average revenue per account Average revenue per user = Average of revenue for each contract ID (only for plans with fees) = Average of revenue f
Slide 32: Monthly Fees by Quarter of Start of Services
Monthly Fees by Quarter of Start of Services Business Summary 32 Consistent and steady growth in the SaaS sector even during the COVID-19 crisis because of a net increase in MRR due to new contracts and the continuous use of services by customers due to a low churn rate. (Millions of yen) 150 Impact
Slide 33: Business Plan for FY4/22
33 Business Plan for FY4/22
Slide 34: Highlights of the FY4/22 Plan
Highlights of the FY4/22 Plan Business Plan for FY4/22 34 Forecast sales growth of 20% despite negative effects of the business climate Forecast a return to a growth phase because of higher sales in FY4/21 even during the pandemic and of Effects of COVID-19 expectations for an end to this crisis as
Slide 35: Activities to Accomplish Goals of the Medium-term Management Plan
Activities to Accomplish Goals of the Medium-term Business Plan for FY4/22 35 Management Plan Based on the outlook for a return to a growth phase despite the effects of COVID-19, we have increased our budget for marketing, advertising, recruiting and other activities. We are aiming for rapid growth
Slide 36: Impact of COVID-19 and Smaregi Responses
Impact of COVID-19 and Smaregi Responses Business Plan for FY4/22 36 COVID-19 has created an opportunity to rethink retail and restaurant operations from the ground up For the retail sector For the restaurant sector Omnichannel services centered on raising Stronger ties with e-commerce efficiency by
Slide 37: Sales Strategy
Sales Strategy Business Plan for FY4/22 37 1 Strengthen the showroom strategy 2 More online sales meetings Increase the online successful KPI Increase to 10 locations by 2023 KPI sales ratio The online sales meeting ratio increased by 4.7 times*1 Open low-cost showrooms mainly in large cities by usi
Slide 38: Launch of Smaregi Ventures
Launch of Smaregi Ventures Business Plan for FY4/22 38 Business and Equity Alliances with LBB and KMW First investment – February 2021 Using both M&A and start-up investments Kohei Takamadate Alliance with LBB, provider of a mobile for growth Chief Strategy Officer ordering system for restaurants Sm
Slide 39: Structure of Smaregi Management
Structure of Smaregi Management Business Plan for FY4/22 39 Smaregi uses the executive officer system to separate the roles of management oversight and the operation of business activities. This system allows utilizing people with highly specialized skills in every business unit. Executive officer s
Slide 40: Medium-term Plan
40 Medium-term Plan
Slide 41: Medium-term Management Plan
Medium-term Management Plan Medium-term Plan 41 Celebrating our 10th anniversary. Looking ahead to more growth in the next 10 years! The Smaregi Long-term Vision and Medium-term Management Plan Updated on June 11, 2021 https://corp.smaregi.jp/ir/management/vision2031.php
Slide 42: Appendix
42 Appendix About Smaregi
Slide 43: Business Profile
Business Profile Appendix 43 High-performance cloud-based POS systems Ticket vending Smaregi provides platform for performing machines many tasks chiefly involving the unitization Sales of cash Analysis of statistics registers of sales (POS ) data. Its innovative cloud- based POS systems have capabi
Slide 44: The Smaregi Marketing Strategy
The Smaregi Marketing Strategy Appendix 44 Our goal is a 38% share of the targeted 770,000 stores 14% of Big businesses the market The POS system market will remain competitive rather than dominated (at least 40 stores) in Japan by a single company because a company that monopolizes this market 100,
Slide 45: IR Newsletter Smaregi IR LINE
Use these links for the latest IR news and other Smaregi Appendix 45 announcements! IR Newsletter Smaregi IR LINE Your fastest source of IR news! Add friends here!
Slide 46: Forward-looking statements notice
Business plans, forecasts and other forward-looking statements in this presentation are based on the reasonable judgments of Smaregi based on information that was currently available. Actual results of operations may be different because these statements include uncertainties involving market condit
Slide 47: Results of Operations for the Fiscal Year Ended April 30, 2021
Results of Operations for the Fiscal Year Ended April 30, 2021 May 1, 2020 – April 30, 2021 Smaregi, Inc.