Slide 1: FY2021.3 Financial Results
FY2021.3 Financial Results Locoguide Inc. May 14, 2021
Slide 2: Locoguide's Vision
Locoguide’s Vision To Deliver Smarter and More Enjoyable Way of Living the Local Community Life + To Deliver Safety Shopping Relaxation Drop-by Community Spots Events Learning/ Education Dining Creating Services that Change Japanese Consumers’ Behaviors by Maximizing Value of “Time” x “Place” © 2021
Slide 3: Agenda
Agenda 1. FY2021.3 Financial Highlights 2. KPI Trend 3. 4Q FY2021.3 Business Highlights 4. FY2022.3 Corporate Strategy 5. Business Integration with Kufu Company © 2021 Locoguide Inc. All Rights Reserved. 2
Slide 4: 1. FY2021.3 Financial Highlights
1. FY2021.3 Financial Highlights
Slide 5: Highlights
Highlights KPIs Number of Monthly Active Users Number of Subscribers Churn Rate 16.3 MM 33,719 stores 0.61％ (YoY+46.4%) (YoY+33.4%) FY2021.3 Financial Results Congestion Lamp Revenue Operating Profit Number of Adopting Local Governments JPY 2,023 MM JPY 480 MM 420 （YoY+42.1%) (YoY+40.5%) （QoQ+90.9%)
Slide 6: FY2021.3 Financial Results
FY2021.3 Financial Results ✓ Achieved revenue growth for the four consecutive fiscal year FY2021.3 Consolidated Financial Results Trend of Revenue & OP (JPY MM) (JPY MM) (Revenue) (OP) 2,400 600 Revenue Operating Profit FY2020.3 FY2021.3 2,023 480 YoY 2,000 500 1,600 1,424 1,080万ユーザー 400 342 Revenue
Slide 7: Revenue Breakdown by Business Segment
Revenue Breakdown by Business Segment ✓ 42.1% increase in revenue YoY ✓ Revenue expansion of Tokubai business and monetization of newly launched Investment Business contributed to revenue hike Breakdown of Revenue by Business Key Achievement of each Business Segment (JPY MM) Tokubai Business Ad Busi
Slide 8: Breakdown of SG&A
Breakdown of SG&A ✓ 13.9% increase in SG&A YoY ✓ Aggressive recruiting for business development, resulting in +17 employees YoY Breakdown of SG&A (JPY MM) 1,200 Personal Expenses Outsourcing Expenses Key SG&A items Rent System Usage Fees 1,105 Others 1,000 970 203 Personnel 111 employees at the end
Slide 9: 2. KPIs Trend
2. KPls Trend o3 Locoguide Inc.
Slide 10: Number of Monthly Active Users and Subscriber Stores
Number of Monthly Active Users and Subscriber Stores ✓ Monthly Active Users significantly increased mainly driven by enrichment of Tokubai content, up 46.4% YoY ✓ Number of Subscriber Stores increased in both fixed price contract & pay-for-performance contract, up 33.4% YoY # of Monthly Active Users
Slide 11: Number of Monthly Active Users
Number of Monthly Active Users ✓ Achieved historically high # of Monthly Active Users with keeping strong momentum since last year # of Monthly Active Users *1 *2 Target in March 2022 (Million) 18.0 16.3MM users 24.0M Users 16.0 14.0 12.0 ✓ Improvement of coverage of 10.0 information 8.0 ✓ Enhanceme
Slide 12: Number of Subscriber Stores
Number of Subscriber Stores ✓ Achieved historically high # of Subscriber Stores driven by increase of both fixed price and pay-for-performance contracts # of Subscriber Stores*1 33,719 Target in March 2022 stores Pay-for- 37,000 Stores 30,000 Performance Contract （6,840 Stores) 25,000 20,000 ✓ Expan
Slide 13: Churn Rate
Churn Rate ✓ Maintaining low level regardless of contract renewal season 12-Months Average Churn Rate*1 Churn Rate as of March 2021 0.61% 0.90% 0.85% 0.83% 0.61% 0.31% 0.28% 0.35% 0.11% Jun-2019 Sep-2019 Dec-2019 Mar-2020 Jun-2020 Sep-2020 Dec-2020 Mar-2021 *1 Churn Rate =1-(Revenue from subscribers
Slide 14: 3. 4Q FY2021.3 Business Highlights
3. 4Q FY2021.3 Business Highlights Locoguide Inc.
Slide 15: Expansion of Active Users through Enhancement of Tokubai Content
Expansion of Active Users through Enhancement of Tokubai Content ✓ Provided vast of unique contents which meet users` needs through reinforcement of our editorial team Example of Tokubai Unique News # of Newly Posted Tokubai Content (Accumulated） Dec-2019 Mar-2020 Jun-2020 Sep-2020 Dec-2020 Mar-2021
Slide 16: Growth of Fixed Price Subscriber Stores
Growth of Fixed Price Subscriber Stores ✓ Achieved continuous expansion of fixed price contracts Example of newly Contracted Stores* Trend of Average Unit Price* • New Customer：Proposal for test installation • Existing Customer：Proposal for Up-Selling Price Plan 4,500 4,170 4,000 3,908 +7% • Congest
Slide 17: Monetization of Pay-for-Performance Contracts
Monetization of Pay-for-Performance Contracts ✓ Expect to push up on average unit price by stabilizing revenue from pay-for-performance subscribers Price Range of each Contract Example of Pay-for-Performance Initiatives • Expansion of pay-for-performance contract may increase entire average unit pri
Slide 18: Partnership with Local Governments through Introduction of Congestion Lamp
Partnership with Local Governments through Introduction of “Congestion Lamp” ✓ Congestion Lamp has been adopted by 420 local governments (# of local governments’ facilities and stores: 615) ✓ Congestion Lamp has been used in wide range of occasions, from city hall to polling station # of Adopting Lo
Slide 19: Promotion of Digitalization of Local Governments
Promotion of Digitalization of Local Governments ✓ Launched new initiative which supports digitalization of local governments` existing service and information ✓ Our know-how can be scalable to many local governments as they have similar needs for digitalization Example of Local Government`s Digital
Slide 20: 4. FY2022.3 Corporate Strategy
4. FY2022.3 Corporate Strategy Locoguide Inc.
Slide 21: Our Focus Areas in FY2022.3
Our Focus Areas in FY2022.3 ✓ Accelerate core strategies to achieve KPI targets and maximize profit 1. Improvement of Comprehensiveness 2. Content Optimization for Users 3. Scale-up of Subscriber Stores 4. Increase in Average Unit Price 5. Enrichment of Local Information © 2021 Locoguide Inc. All Ri
Slide 22: 1. Improvement of Comprehensiveness of Tokubai Information
1. Improvement of Comprehensiveness of Tokubai Information ✓ Make Tokubai more comprehensive platform through offering / gathering wide range of unique information Information from Stores + Information from Locoguide + Information from Users • Advertisement • News article • Word of mouth • Campaign
Slide 23: 2. Content Optimization for Users
2. Content Optimization for Users ✓ Providing optimized information to each user by utilizing personal browsing history and local unique information Various Stores` Living Information Information (ex. News article and recipe) Build new platform which enable Tokubai users to find optimized / customiz
Slide 24: 3. Scale-up of Subscriber Stores
3. Scale-up of Subscriber Stores ✓ Significant growth opportunity for both fixed price and pay-for-performance contracts Fixed Price Subscriber Store Pay-for-Performance Subscriber Stores • Potential Key Clients : Gym, Private-tutoring • Potential Key Clients : Drug stores, etc. school and Relaxatio
Slide 25: 4. Increase in Average Unit Price
4. Increase in Average Unit Price ✓ Launched Up-Selling Price Plan last year and will accelerate diversification of price plan in FY2022.3 and onward to achieve higher average unit price in FY2022.3 and Until FY2020.3 In FY2021. 3 Onward ✓ Free Plan ✓ Pay-for-Performance ✓ Test Installation Customer
Slide 26: 5. Enrichment of Local Information
5. Enrichment of Local Information ✓ Acquired remaining 65.7 % share of Shizuoka Online Co., Ltd. to accelerate digitalization of local information Overview of Shizuoka Online Company Overview • Capital ：JPY10MM • Acquisition Date ：April 1st, 2021 • Revenue ：JPY820MM (FY2020. 12) • Operating Profit
Slide 27: 5. Enrichment of Local Information
5. Enrichment of Local Information ✓ More focus on Local Digital Transformation as demand from local governments, local media and tourist facilities is strong 420 Local Governments Selected Adopted Governments etc.. © 2021 Locoguide Inc. All Rights Reserved. 26
Slide 28: Accelerating Changes
Accelerating Changes From Paper to Digital Social changes are our business opportunities and From Far to Near we create new services “To Deliver Smarter, More Enjoyable, and Safer Way of Living the Local Community Life” From Contact to Contact- Less © 2021 Locoguide Inc. All Rights Reserved. 27
Slide 29: 5. Business Integration with Kufu Company
5. Business Integration with Kufu Company
Slide 30: Overview of the New Integrated Company
Overview of the New Integrated Company Kufu Company Inc. (Newly established holding company) Company Name ※ Current Kufu Company`s corporate name will be changed Locoguide and Kufu Company(Current) will establish the Holding Company through the Joint Method of Business Share Transfer. Locoguide and
Slide 31: Business Portfolio of the New Integrated Company
Business Portfolio of the New Integrated Company Aiming to be the best “User First” company by leveraging Locoguide and Kufu Company`s expertise © 2021 Locoguide Inc. All Rights Reserved. 30
Slide 32: Key Strategies of the New Integrated Company
Key 5 Strategies of the New Integrated Company 1. Being Comprehensive Life and Living Media Company 2. Developing New Shopping Support Service through Collaboration with Personal Family Finance Service 3. Providing Community-Based Life Event Service 4. Utilizing Common Platform and Both Parties` Exp
Slide 33: Schedule of the Business Integration
Schedule of the Business Integration Meeting of the board of directors to approve the share transfer May 14, 2021 (Today) plan (both companies) Notice regarding record date for extraordinary general meeting May 15, 2021 (Scheduled) of shareholders (Kufu Company) Record date for the extraordinary gen
Slide 34: Disclaimer
Disclaimer Important notes This document contains forward-looking statements. These forward-looking statements are based only on the information made available to Locoguide as of the date this document were prepared. These statements are not guarantees of future results and involve risks and uncerta