Makuake, Inc. · TSE:4479
Makuake — Investor Day (June 2023)
57 slides from Makuake's investor day presentation, Jun 19, 2023
Slide 1: Slide 1
Slide 2: Slide 2
Slide 3: Session 1: Growth Strategy to Achieve GMV of JPY 30 Billion
Session 1 Growth Strategy That Enables Makuake to Achieve GMV of JPY 30 Billion in Fiscal Year Ending September 2025
Slide 4: Personal Introduction
Personal Introduction Ryotaro Nakayama Makuake, Inc. CEO April 2006 Joined CyberAgent, Inc. October 2010 Assigned to CyberAgent Ventures, Inc. May 2013 CEO of Makuake, Inc. (current position) Director of Take Over as Startup, a General June 2018 Incorporated Association (current position) Copyright
Slide 5: Factor Analysis of Makuake's Service Structure
Factor Analysis of Makuake's Service Structure Repeat Solving issues faced by projectowners ¢ Project owners ! Raising quality of user experience Inquiry Publicat Growth KGI : GMV Raising quality of user experience Site “Support” “| engagement Access Pre-Orders Te gation > Fulfilling needs of projec
Slide 6: Medium-Term KPI Targets
Medium-Term KPI Targets No. of active projects Monthly project unit value 7j— GMV — 2023.3 2025.9 2023.3 2025.9 FY2023/9 FY2025/9 (Projects) (JPY 10,000) (JPY 100 Million) 1,392 2,200 110 146 180 300 om ¥32 billion E MV h can f nding on ce xpected GMV growth range: can fluctuate depending o ¥30 bill
Slide 7: Medium-Term Operating Profit Margin Target
Medium-Term Operating Profit Margin Target 20% 10% Boosting profitability by increasing "support" pre-orders from highly loyal users — FY2023/9 Copyright © Makuake, Inc. All Rights Reserved. T T FY2024/9 FY2025/9
Slide 8: Makuake's Strength: Self-Sustaining Growth Model
Makuake's Strength: Self-Sustaining Growth Model Expanding the lineup fo quality, Makuake \ 7 Increasing the number of project supports who place "support" preorders Project owners Project supporters Virtuous cycle of self-sustaining growth model Copyright © Makuake, Inc. All Rights Reserved GMV= Ac
Slide 9: Growth Strategy Leveraging Our Strength: Converting Project Supporters into Fans
Growth Strategy Leveraging Our Strength: Converting Project Supporters into Fans by Utilizing Project Owner Customer Assets Project owners Project supporters (Further strengthening of support for new Publishing projects that reflect ™ customer acquisition current trends Continuous + Expanding suppor
Slide 10: Top Priority KPIs: Initiatives to Improve Active Project Count
Top Priority KPIs: Initiatives to Improve Active Project Count and Timing of Their Impact [7 ongoing initiatives t New initiatives New functionalities (development projects) 2,200 enefits menu options for top-quality project owner: Projects (new functionality) 4 - | Increased frequency of access to
Slide 11: Top Priority KPIs: Initiatives to Improve Monthly Project Unit Value
Top Priority KPIs: Initiatives to Improve Monthly Project Unit Value and Timing of Their Impact [-} ongoing initiatives New functionalities (development projects) Features to promote membership loyalty (new functionality) Large-scale customer acquisition through alliances Coupons issued by project o
Slide 12: Long-Term Vision for Business Expansion through Leveraging Customer Assets
Long-Term Vision for Business Expansion through Leveraging Customer Assets = — Oo. — = a5 Diversification of matching Expanding the Purchase ecosystem through yee . Research M&As by utilizing project 4 Raising repeatrates d € Raising repeatrates Accumulation of Pi q Accumulation of project owner ass
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Slide 14: Session 2: Retaining Project Owners and Supporters
Session2 How Can We Retain Project Owners and Project Supporters and Obtain Their Repeat Business? 14
Slide 15: Personal Introduction
Personal Introduction Kana Bogaki Co-founder Director of Makuake, Inc. April 2006 Joined CyberAgent, Inc. May 2006 Assigned to CyberBuzz, Inc. October2010 _ Director of CyberBuzz, Inc. April 2012 Assigned to Cygames, Inc. September . 2012 Director of Grenge, Inc. May 2013 Director of Makuake, Inc. (
Slide 16: Factor Analysis of Makuake's Service Structure
Factor Analysis of Makuake's Service Structure Repeat Solving issues faced by projectowners ¢ Project owners ! Raising quality of user experience Inquiry Publicat Growth KGI : GMV Raising quality of user experience Site “Support” “| engagement Access Pre-Orders Te gation > Fulfilling needs of projec
Slide 17: Organizational Structure of Makuake Service
Organizational Structure of Makuake Service Curators tra Screening/ Monitoring 7 ae [ @& &| Cross-Funct ional Teams Cross-Functional Team 1 CrossFunctional Team 2 Acquisition of high- quality projects Improvement of project publication quality Cross-Functional Team 3 Creation of a into fans framewor
Slide 18: Framework for Converting Project Supporters into Fans Based on User Psychology
Framework for Converting Project Supporters into Fans Based on User Psychology Copyright © Makuake, Inc. All Rights Reserved. Know-How for Creating Core Fans Fundamental Functionalities for Project Owners to Build a Fan Base Zero Negative Experiences (Foundation) 18
Slide 19: Examples of Functionalities to Convert Project Supporters into Fans
Examples of Functionalities to Convert Project Supporters into Fans Functionality to Follow Project Owners Functionality to capture project supporters’ interest and engagement with project owners, and generate sustained communication independent of projects 19
Slide 20: Visualizing the Process of Building a Fan Base through Follow Functionality
Visualizing the Process of Building a Fan Base through the Use of Project Owner Follow Functionality Fan Stage Discovery Retention Participation Co-creation + Project page . + Exclusive coupons for . Touchpoint ||" reports informotion provigea |, followers * Preview events * Management of fan P Port
Slide 21: Framework Based on Development of Our Economic Ecosystem
Framework for Converting Project Supporters into Fans Based on the Development of Our Economic Ecosystem Makuake Points Program For example, we award points for: * Number of "support" pre-orders and amount of "support" pre-orders + Writing of "support" comments Using the share support functionality
Slide 22: Repeat Business Strategy for Project Owners: (1) Likelihood of Repeat Publication
Repeat Business Strategy for Project Owners: (1) Promote Repeat Use Based on the Likelihood of Repeat Project Publication High Likelihood of Repeat Project Publication Medium Low akuake, Inc. All Rights Reserved 22
Slide 23: Repeat Business Strategy for Project Owners: (1) Likelihood of Repeat Publication
Repeat Business Strategy for Project Owners: (1) Promote Repeat Use Based on the Likelihood of Repeat Project Publication Support Based on the Likelihood of Repeat Project Publication: * System-based monitoring of client touchpoints * Conducting review meetings * Holding regular meetings and underst
Slide 24: Repeat Business Strategy for Project Owners: (2) Enhanced Post-Project Support
Repeat Business Strategy for Project Owners: (2) Strengthening Project Owners' Repeat Business through Enhanced Support after the Implementation of Their Projects on Makuake Expansion of Sales Channels and Product PR Recruitment Support and Corporate Branding oxmams ae ® Makuake SHOP CHANNEL $$ W wa
Slide 25: Repeat Business Strategy for Project Owners: (2) Enhanced Post-Project Support
Repeat Business Strategy for Project Owners: (2) Strengthening Project Owners' Repeat Business through Enhanced Support after the Implementation of Their Projects on Makuake Product Development and Expansion of Sales Channels Product Development and Corporate Branding ahi | | i Be srang ‘ie — r Maku
Slide 26: Repeat Business Strategy for Project Supporters
Repeat Business Strategy for Project Supporters: Promotion of Project Supporter Repeat Business through Various Marketing Initiatives Coupon Coupon Coupon Expanding the variety of projects that leave customers undecided and providing purchase incentives through coupon usage Encouraging users to cons
Slide 27: Repeat Business Strategy for Project Supporters
Repeat Business Strategy for Project Supporters: Promotion of Project Supporter Repeat Business through Various Marketing Initiatives Copyright © Makuake, Inc CRM: Streamlining delivery through newsletters and LINE messaging Site engagement: Facilitating encounters with projects Project owner advert
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Slide 29: Session 3: Creating Possibilities for the New through Makuake Data Lab
Session3 Creating the Possibilities for the "New" at Makuake through Makuake Data Lab 29
Slide 30: Personal Introduction
Personal Introduction Fumiaki Kiuchi Co-founder Director of Makuake, Inc. April 2002 Joined Recruit Staffing Co., Ltd. October 2007 Joined Innovation Inc. January 2009 Joined CyberAgent, Inc. May 2013 Director of Makuake, Inc. (current position) kuake, Inc. All Right:
Slide 31: Initiatives Implemented since the Establishment of Makuake Data Lab
Initiatives Implemented since the Establishment of Makuake Data Lab Decomposition and Visualization Comprehensive Understanding and of Business KPIs By Customer Segment x Decomposition of Business KPI Tree and Dashboard Creation for Daily Monitoring Cross-Departmental Sharing Comprehensive Understan
Slide 32: Initiatives Implemented since the Establishment of Makuake Data Lab: Customer Segmentation
Initiatives Implemented since the Establishment of Makuake Data Lab Customer Segmentation + Segmentation of Project Owners by Line of Business/RFM and Team Assignment + Segmentation of Project Supporters by Purchase Frequency and Last Purchase Date Copyright © Makuake, Inc. All Rights Reserved 32
Slide 33: Initiatives Implemented since the Establishment of Makuake Data Lab: Action Visualization
Initiatives Implemented since the Establishment of Makuake Data Lab Action Visualization Curator CRM Tool (Action Recommendation/Negotia tions/Action History) Skill Map (Grade/Results/Expertise Area) Copyright © Makuake, Inc. All Rights Reserved TT 33
Slide 34: Initiatives Implemented since the Establishment of Makuake Data Lab: KPIs
Initiatives Implemented since the Establishment of Makuake Data Lab ecwrerrwre Grand KPIs eee a aa) ] 7™ = 19994404 + Major KGls and KPIs ie. | x eer — 12 Panel That Combines ™ 5 #ennecs Issue Discovery/ | PPPEEE moowre: Issue Identification/ Sharing ey By Customer Segment | ‘-——-—oo | atin ‘ = | ta
Slide 35: Building Future Competitive Advantage through Data Utilization
Building Future Competitive Advantage through Data Utilization
Slide 36: Quote from Peter Drucker's Management
"Because the purpose of business is to create a customer, the business enterprise has two—and only two—basic functions: marketing and innovation. Marketing and innovation produce results..." (from "Management" by Peter Drucker)
Slide 37: Continuing to Accompany Project Owner Businesses in Their Creation of Customers
Continuing to Accompany Project Owner Businesses in Their “Creation of Customers” Innovation Marketing Copyright © Makuake, Inc. All Rights Reserved Supporting the creation of new products by leveraging project owner businesses' expertise in their respective business fields and their distinct "essen
Slide 38: Continuing to Accompany Project Owner Businesses in Their Creation of Customers
Continuing to Accompany Project Owner Businesses in Their “Creation of Customers” By leveraging the unique data accumulated from the pre-primary distribution market, we provide support for the creation of new products, taking into consideration respective business fields, strengths, and the distinct
Slide 39: Continuing to Accompany Project Owner Businesses in Their Creation of Customers
Continuing to Accompany Project Owner Businesses in Their “Creation of Customers” Project Library Project Supporter Library —eE . aE Gee Gee eee SS vv ee ee Cae a >] « g Working to support the potential for business expansion based on customer project information, while ensuring its full confidentia
Slide 40: Continuing to Accompany Project Owner Businesses in Their Creation of Customers
Continuing to Accompany Project Owner Businesses in Their “Creation of Customers” Makuake Project Owner Project Owner Moderator Business Business Project Owner Business Group Interview Details 1. Participating Project Supporter Information (Excerpt from Advance Questionnaire - Product Reviews and Ex
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Slide 42: Session 4: Leverage Effect of Makuake's Approach to Investing in Human Capital
Session4 Leverage Effect on Growth Generated through Makuake’s Distinct Approach to Investing in Human Capital 42
Slide 43: Personal Introduction
Personal Introduction Megumi Sakamoto Executive Officer April 2007 Joined Trils Incorporated September 2009 Joined Oscar Promotion Co., Ltd. January 2013 Joined Trils Incorporated May 2017 Joined Makuake, Inc. Executive Officer, Head of Quality Assurance April 2021 Department and Head of Human Resou
Slide 44: Main Target Market Through FY2025/9
Main Target Market Through FY2025/9 + We will continue to focus on the online pre-primary distribution market for goods, which is expected to grow to JPY 1 trillion by 2025. Additionally, we will work towards developing the online pre-primary distribution market for services Total Addressable Market
Slide 45: Challenges to Achieve Further Growth That Have Emerged Post-pandemic
Challenges to Achieve Further Growth That Have Emerged Post-pandemic + During the pandemic, we prioritized responding to the rapid changes in demand from both project owners and project supporters, which resulted in GMV growth. However, this also brought to light numerous challenges that need to be
Slide 46: Challenges in Enhancing Human Capital to Move Medium-Term Management Plan Forward
Challenges in Enhancing Human Capital to Move Medium-Term Management Plan Forward + The challenges that became apparent from the engagement survey and our current organizational structure for improving our human capital management include not only streamlining operations centering on training and se
Slide 47: Overcoming management challenges through human capital management
Overcoming management challenges through human capital management + We will address our challenges in management and enhancing human capital by focusing mainly on human resources, and strive to achieve our medium-term management plan Management Challenges Challenges in Enhancing Human Capital Establ
Slide 48: Strengths of Our Human Capital Management as Revealed in the Engagement Survey
Strengths of Our Human Capital Management as Revealed in the Engagement Survey + Inthe enga ement survey conducted in December 2022, our employees strongly identified with our company's vision, took pride in the services we offer while performing their jobs, and felt a high level of psychological sa
Slide 49: Establishing Framework to Strengthen Our Human Capital Management
Establishing Framework to Strengthen Our Human Capital Management + We established a dedicated team to create and propagate our company's culture by increasing interactions between project owners and supporters, as well as promoting exchange with other departments by planning and holding various eve
Slide 50: Creating Agile Organizational Structure That Can Effectively Respond to Change
Creating Agile Organizational Structure That Can Effectively Respond to Changes in Both External Environment and Company Talent Pool + We will enhance the completeness of our talent pool and skill maps, and utilize them to enable agile responses to changes in both the external environment that affec
Slide 51: Continued Growth in GMV, Knowledge Sharing, Reskilling and Management Talent
Continued Growth in GMV + Strengthening of Internal Knowledge Sharing and Reskilling System + Development of Management Talent + We will enhance the current system where employees proactively seek opportunities for skills improvement, and implement development programs tailored to each skill grade a
Slide 52: Improving Productivity + Securing Time for Creative Thinking
Improving Productivity + Securing Time for Creative Thinking + Weaim to increase the use of common professional language within our company to reduce communication overhead and the time required for decision-making. At the same time, we will fully utilize our systems and ensure optimal personnel pla
Slide 53: Medium-Term KPI Targets
Medium-Term KPI Targets + We aim to achieve a GMV of JPY 30 billion (mid-target) by September 2025 by increasing the number of active projects to 2,200 and raising project unit value to JPY 1.46 million No. of active projects x Monthly project unit value = 2023.3 2025.9 2023.3 2025.9 FY2023/9 FY2025
Slide 54: Medium-Term Operating Profit Margin Target
Medium-Term Operating Profit Margin Target + Weare targeting an operating profit margin of approximately 7.5% to 13.5% for FY2025/9, assuming a balance between sales growth and cost management Boosting profitability by increasing "support" pre-orders from highly loyal users 20% 10% FY2023/9 FY2024/9
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 June 9, 2023 and certain assumptions deemed reasonable by Makuake, Inc., it may change due to shifts in business environment and
Slide 56: IR Inquiries
ts Reserved IR Inquiries |IR@makuake.co.jp 56
Slide 57: Makuake
@® Makuake