Makuake, Inc. · TSE:4479

Makuake — Investor Presentation (December 2024)

57 slides from Makuake's investor presentation, Dec 20, 2024

Slide 1: Business Plans and Matters Related to High Growth Potential
Securities code: 4479 Makuake Business Plans and Matters Related to High Growth Potential December 20, 2024 Makuake, Inc.
Slide 3: 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 Connect
Slide 4: Corporate Profile
Corporate Profile Company Name Makuake, Inc. Head Office Location 2-16-1 Shibuya, Shibuya-ku, Tokyo Listed Market Tokyo Stock Exchange Growth Market Date of Establishment 1 May, 2013
Slide 5: History
History 2016 2020 2024 Jan. Began providing Makuake Incubation Studio (MIS) Aug. Opened the Nagoya office Feb. Entered Japan’s first Mar. Began providing Makuake STORE corporate digital bank Dec. Formed a business tie-up with Mizuho Bank business 2013 ° 2018 . 2022 . May. Established as a wholly own
Slide 6: Management Team Introduction
Management Team Introduction Nom Aucit & Supervisory Committee Member Directors — Audit Supervisory Committee Member Directors oR Ryotaro Nakayama Humiaki Kiuchi Go Nakayama Hisashi Katsuya CEO Representative Director Non-executive Director Non-executive Director Chiaki Ashida Noriaki Kushida Haruki
Slide 8: Ecosystem of Makuake Service in the Distribution Market
Ecosystem of Makuake Service in the Distribution Market + By providing wide-ranging support from new product and service planning phase to their launch and sales expansion after mass production, we accumulate various market data. Using these data, we provide businesses insights for their next new pr
Slide 9: Makuake—Venue for Launch of New Products and Services
Makuake—Venue for Launch of New Products and Services + Weare a marketplace where consumers can buy premiering new products and services faster through “support* pre-orders ®Makuake REDD YY 3 AEXRAEA CE TRB. Hee ILE Gmmet ~/ 0 49H) sxocusent 19,056,950F) =z Ee) =! [a eS PIBLA BOPUHBEMEBAL AS. a ACTF
Slide 10: Products Launched through Makuake
Products Launched through Makuake + In addition to goods, a range of new products, including experiences such as new store openings and tickets to entertainment works, across a broad spectrum of genres from various regions are premiered daily on Makuake Mo Pourt 4, > BEA vacoa Alcoholic beverages ve
Slide 11: Makuake's Business Model
Makuake's Business Model + Businesses can pre-sell their new products and services still in the planning phase on Makuake, while consumers, in the spirit of cheering on, can pre-purchase their products of interest through “support” pre-orders E98 20% Businesses commission* Consumers =Project Owners
Slide 12: Factor Analysis of Makuake's Service Structure
Factor Analysis of Makuake's Service Structure * GMV, a KGI of Makuake, can be broken down into factors relating to project owners and supporters. These factors multiply to drive accelerated growth | ! Solving issues faced by projectowners <—+—=—= ——-—= Fulfilling needs of project supporters hancing
Slide 13: Value Provided by Makuake: Businesses
Value Provided by Makuake: Businesses + We not only help businesses avoid the risks and burdens of distribution but also support the creation of a structure to develop new products for sustainable business growth and provide a mechanism that can turn customers of the businesses we serve into a loyal
Slide 14: Value Provided by Makuake: Consumers
Value Provided by Makuake: Consumers + We offer a unique purchasing experience that caters to the current needs of consumers, allowing them to go beyond being mere buyers. By connecting them with project owners and fostering mutual interaction, we help customers become fans of the project owners, an
Slide 15: Makuake Incubation Studio (MIS)
Makuake Incubation Studio (MIS) + We accompany businesses in accurately conveying the value of their technology and in branding it, supporting "social implementation of R&D technologies." We receive commissions based on the support we provide Product and Business Planning Based on Technology Product
Slide 16: • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • •
Slide 17: Other Services
Other Services + Weare aiming to maximize the Makuake ecosystem by offering various services related to Makuake's operations ® Makuake STORE ® Makuake SHoP ® Advertising Delivery Agency Service selling products Service exhibiting/selling Online advertising agency created in Makuake on products from
Slide 18: Target Markets and Market Environment
03 Target Markets and Market Environment 18
Slide 19: Target Market
Target Market + By developing and fostering a new market--the "Pre-Primary Distribution Market", which no one was able to move online due to technological barriers and operational complexity, Makuake continues to strive to create an environment that makes it easer for new products and services to co
Slide 20: Target Market Size: Maximum Potential Market Size for New Products (Goods)
Target Market Size: Maximum Potential Market Size for New Products (Goods) + We recognize that the JPY 1 trillion online pre-primary distribution market, which is a subset of the pre-primary distribution market (the new product launch market), is the total addressable market for Makuake wpe Onn nnn
Slide 21: Makuake's Competitive Environment
Makuake's Competitive Environment + By establishing a pre-sales model that specializes in new products and services before their general distribution, we have established a unique position differentiated from conventional e-commerce marketplaces and crowdfunding sites--we are thus operating our busi
Slide 22: Competitive Advantage
Competitive Advantage + By combining our ftreng that was not possible be’ ths, we are able to offer a service - continuous introduction of new products ahead of the primary distribution market — ore Screening/Monitoring system by category for all projects Ability to reach businesses across Japan Abi
Slide 23: Competitive Advantage (1) Ability to Reach Businesses Across Japan
Competitive Advantage (1) Ability to Reach Businesses Across Japan + We have established a system for securing quality projects through tie-ups with over 100 financial institutions nationwide and Makuake Incubation Studio Financial institutions introduce companies to us £me6 —— @©Makuake \ Makuake I
Slide 24: Competitive Advantage (2) Curator Consulting Maximizes Project Appeal
Competitive Advantage (2)Curator Consulting Maximizes Project Appeal + For all projects, the curator in charge supports maximizing appeal of the product's project page and the amount of “advocacy” buying it generates Maximization of Project Page Appeal Maximization of the Amount of “Advocacy” Buying
Slide 25: Competitive Advantage (3) Screening/Monitoring System by Category for all Projects
Competitive Advantage (3) Screening/Monitoring System by Category for all Projects + In addition to inspecting all projects at three stages based on per-category screening items, we monitor execution from project listing to product delivery with the aim of building a safe and worry-free site, while
Slide 26: Competitive Advantage (4) Ability to Attract Customers
Competitive Advantage (4) Ability to Attract Customers + In addition to an average of over 9,000 articles appearing every month in the news media about Makuake’s projects, our initiatives to attract customers have created a feedback effect where an increase in the number of projects leads to an incr
Slide 27: Competitive Advantage (5) self-sustaining growth model
Competitive Advantage (5) self-sustaining growth model + Makuake operates on a self-sustaining growth model that enables both project owners and supporters to thrive, thus accelerating overall growth. We believe that the virtuous cycle of self-sustaining growth leads to GMV growth, which in turn act
Slide 29: Differences Between Financial Forecasts and Results for FY2024/9
Differences Between Financial Forecasts and Results for FY2024/9 + Both net sales and profits exceeded the full-year financial forecast announced on July 30, as in Q4, there was a partial change in the revenue structure following a revision of Makuake commissions received from project owners and the
Slide 30: Total transaction volume
Total transaction volume* + From Q4, we began applying a secure system usage fee to all projects appeared after August 2024, in line with which the total amount handled across all of our services came to JPY 3,992 million (Unit: JPY million) Secure System Usage WM Feestincluding tax) oss An a 5,917
Slide 31: Net Sales and Take Rate
Net Sales and Take Rate + Net sales increased 5.7% QoQ due to the booking of secure system usage fees. The take rate increased 2.0pt QoQ due to the booking of secure system usage fees as well as some impact from an upward revision to Makuake commissions (to 20% excluding tax) (Unit: JPY million) —o-
Slide 32: Gross Profit and Gross Profit Margin
Gross Profit and Gross Profit Margin * Gross profit increased 2.7% QoQ, but the gross profit margin declined by 2.2pt QoQ as growth in “support” pre-orders through advertising agency services was weak, and the ratio of purchases to “support” pre-orders (= advertising agency sales cost) increased (Un
Slide 33: Selling, General, and Administrative Expenses
Selling, General, and Administrative Expenses + We have greatly improved our cost structure through rigorous management of SG&A expenses, which were down 24.8% YoY and 7.2% QoQ in Q4 (Unit: JPY million) [EMME Payment Fees/others [EI Advertising and Promotion Expenses [IME Personnel Expenses 4 99]. 9
Slide 34: Operating Profit (Loss) and Operating Profit Margin Relative to GMV
Operating Profit (Loss) and Operating Profit Margin Relative to GMV + We achieved a quarterly operating profit of JPY 51 million in Q4 thanks to the booking of secure system usage fees and reduction in SG&A expenses, especially advertising and promotion expenses (Unit: JPY million) —@— Operating Pro
Slide 35: Key KPIs
Key KPIs + The number of active projects during the month fell slightly QoQ in Q4 as did the monthly project unit value, also resulting ina marginal QoQ decline in monthly “support” pre-orders. Lackluster growth in the number of active projects remains a hindrance to earnings growth For the quarter:
Slide 36: Other KPI (1)
Other KPI (1) + The number of project publications increased 2.6% QoQ, mainly due to growth in publications for new project owners. The value of “support” pre-orders decreased slightly for both new and repeat owners, and at 77.7%, the weighting of repeat “support” pre-orders remained largely unchang
Slide 37: Other KPI (2)
Other KPI (2) + Although access UU numbers are down compared to the previous quarter, the primary reason is a change in tabulation standards and there is no substantial decline. Meanwhile, internal analysis indicates that the decline in the number of active projects partially contributed to the decr
Slide 38: Employee Count (Reference Values: Number of Published Projects)
Employee Count (Reference Values: Number of Published Projects) + We expect ongoing changes in employee numbers in line with management phase changes as we focus on improving our profit structure. At the same time, we will continue striving to increase productivity per employee by placing the right
Slide 39: Financial Results Summary: YoY (Full-Year)
Financial Results Summary: YoY (Full-Year) + While experiential consumption continued to increase, the number of active projects failed to grow amid the ongoing challenging environment for owners due to the weak yen and high raw material prices, resulting in a decline in total transaction volume and
Slide 41: FY2025/9 Financial Forecasts
FY2025/9 Financial Forecasts + Weaim to grow net sales and profits and achieve profitability for the full fiscal year by maintaining the same level of revenue YoY from the Makuake business while laying the groundwork for expanding revenue from our various ancillary services (Unit: JPY million) Total
Slide 42: Growth Strategy for FY2025/9
Growth Strategy for FY2025/9 + Inthe Makuake business, we seek to improve operational stability by acquiring projects from quality project owners and reducing seasonal fluctuations, while also working to solidify our revenue base and build a track record so that we can further expand revenue from an
Slide 43: New Management Structure for FY2025/9
New Management Structure for FY2025/9 + Atthe Board of Directors meeting held today, we resolved to change our management structure subject to approval at the 12th Ordinary General Meeting of Shareholders to be held on December 12, 2024 Details of Changes + Number of full-time directors reduced from
Slide 45: For Project Owners: Provide End-to-End Support Backed by Data
For Project Owners: Provide End-to-End Support Backed by Data, Our Competitive Strength, for Businesses to Expand and Thrive + By leveraging the data accumulated via our various services and providing seamless support for business development, we aim to increase the transaction amount per project ow
Slide 46: For Supporters: Enhance the Unique Purchasing Experience We Offer
For Supporters: Enhance the Unique Purchasing Experience We Offer, Further Bolstering Our Competitive Advantage + As consumer needs diversify, the value of consumption is shifting from goods and experiences to meaning (purpose, social contribution), unique experiences (participation in unique events
Slide 47: Medium- to Long-term Management Policy
Medium- to Long-term Management Policy + Weare aiming to growth GMV and improve profitability by accumulating project owner and project supporter assets and diversifying our matching service that aligns the needs of both Makuake Cas Diversification of matching Purchase Raising repeat rates Research
Slide 48: Risk Factors and Countermeasures
O07 Risk Factors and Countermeasures 48
Slide 49: Seasonality for Makuake
Seasonality for Makuake + In Q2 (January-March), the number of projects published tends to be low compared with other quarters due to seasonal factors, including the quarter having fewer business days and an extremely slow start for businesses at the beginning of the year. As a result, the total amo
Slide 50: Risk Factors and Countermeasures
Risk Factors and Countermeasures + Wewill grasp, analyze, and evaluate risks that may emerge as we execute our medium-term growth plan, and implement countermeasures to control these risks Possible risks Impact on Business Leakage of personal information through Hich hacking, etc. ig @) Issues with
Slide 51: Dividend Policy
08 Dividend Policy
Slide 52: 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 54: Business Locations
Business Locations Copyright © Makuake, Inc. All Rights Reserved. Head Office Kansai Office Nagoya Office Chugoku and Shikoku Office Kyusyu Office Hokuriku Office Korea Office Tokyo Osaka Aichi Hiroshima Fukuoka Ishikawa Seoul Special City 54
Slide 55: Disclaimer and Cautions Regarding Future Outlook
Disclaimer and Cautions Regarding Future Outlook While the content of this document has been prepared based on generally recognized economic and social conditions as of December 20, 2024 and certain assumptions deemed reasonable by Makuake, Inc., it may change due to shifts in business environment a
Slide 57: Makuake
@® Makuake

Makuake — Investor Presentation (December 2024) on 6ix

Makuake — Investor Presentation (December 2024)

Slide 1: Business Plans and Matters Related to High Growth Potential

Slide 2: Company Overview

Slide 3: The World Makuake Aspires For

Slide 4: Corporate Profile

Slide 5: History

Slide 6: Management Team Introduction

Slide 7: Business Overview

Slide 8: Ecosystem of Makuake Service in the Distribution Market

Slide 9: Makuake—Venue for Launch of New Products and Services

Slide 10: Products Launched through Makuake

Slide 11: Makuake's Business Model

Slide 12: Factor Analysis of Makuake's Service Structure

Slide 13: Value Provided by Makuake: Businesses

Slide 14: Value Provided by Makuake: Consumers

Slide 15: Makuake Incubation Studio (MIS)

Slide 16: • • • • • • • • • • • • • •

Slide 17: Other Services

Slide 18: Target Markets and Market Environment

Slide 19: Target Market

Slide 20: Target Market Size: Maximum Potential Market Size for New Products (Goods)

Slide 21: Makuake's Competitive Environment

Slide 22: Competitive Advantage

Slide 23: Competitive Advantage (1) Ability to Reach Businesses Across Japan

Slide 24: Competitive Advantage (2) Curator Consulting Maximizes Project Appeal

Slide 25: Competitive Advantage (3) Screening/Monitoring System by Category for all Projects

Slide 26: Competitive Advantage (4) Ability to Attract Customers

Slide 27: Competitive Advantage (5) self-sustaining growth model

Slide 28: Financial Results for FY2024/9

Slide 29: Differences Between Financial Forecasts and Results for FY2024/9

Slide 30: Total transaction volume

Slide 31: Net Sales and Take Rate

Slide 32: Gross Profit and Gross Profit Margin

Slide 33: Selling, General, and Administrative Expenses

Slide 34: Operating Profit (Loss) and Operating Profit Margin Relative to GMV

Slide 35: Key KPIs

Slide 36: Other KPI (1)

Slide 37: Other KPI (2)

Slide 38: Employee Count (Reference Values: Number of Published Projects)

Slide 39: Financial Results Summary: YoY (Full-Year)

Slide 40: FY2025/9 Financial Forecasts

Slide 41: FY2025/9 Financial Forecasts

Slide 42: Growth Strategy for FY2025/9

Slide 43: New Management Structure for FY2025/9

Slide 44: Growth Strategy

Slide 45: For Project Owners: Provide End-to-End Support Backed by Data

Slide 46: For Supporters: Enhance the Unique Purchasing Experience We Offer

Slide 47: Medium- to Long-term Management Policy

Slide 48: Risk Factors and Countermeasures

Slide 49: Seasonality for Makuake

Slide 50: Risk Factors and Countermeasures

Slide 51: Dividend Policy

Slide 52: Dividend Policy

Slide 53: Appendix

Slide 54: Business Locations

Slide 55: Disclaimer and Cautions Regarding Future Outlook

Slide 56: IR Inquiries

Slide 57: Makuake