Smaregi, Inc. · TSE:4431
Smaregi — 1H FY4/22 Earnings Presentation
38 slides from Smaregi's earnings presentation, December 2021
Slide 1: Results of Operations for the First Half of the Fiscal Year Ending April 30, 2022
Results of Operations for the First Half of the Fiscal Year Ending April 30, 2022 (17th Period) May 1 October 31, 2021 Smaregi, Inc. Securities code: 4431
Slide 2: Contents
Contents 2 P3 Impact of COVID-19 P4 1H FY4/22 Financial Summary P16 Business Summary P24 Business Plan for FY4/22 P26 Progress of Medium-term Management Plan P31 Medium term Management Plan P34 Appendix
Slide 3: Impact of COVID-19
Impact of COVID-19 3 The COVID-19 pandemic has brought about new changes to the society, such as the digital shift. A system that can respond to changing demand is required Effect on Number of Transactions Effect on Number of Meetings Economic activity was restricted during state of with Prospective
Slide 4: 1H FY4/22 Financial Summary
4 1H FY4/22 Financial Summary May 1-Oct 31, 2022
Slide 5: 1H FY4/22 Financial Highlights
1H FY4/22 Financial Highlights 5 • Net sales increased 29.9% YoY to 1.92 billion due to an increase in the number of paying stores. • Operating profit increased 25.1% YoY to 430 million due to strong sales growth, and the operating margin was 22.5% due to increased SG&A expenses from sales and marke
Slide 6: Financial Highlights
Financial Highlights 1H FY4/22 Financial Summary 6 Sales increased 29.9% YoY and operating profit increased 25.1% YoY despite the negative effects of the COVID-19 pandemic. Operating profit reached 72.8%. In the last half of the fiscal year, S&M expenses are expected to increase due to a execute of
Slide 7: Balance Sheet
Balance Sheet 1H FY4/22 Financial Summary 7 There have been increases in cash, deposits, and accounts receivable (current assets) and advances received (current liabilities) due to the steady expansion of business scale. 1H FY4/22 1H FY4/21 YoY QoQ 1Q FY4/22 (Millions of yen) results results change
Slide 8: Statement of Income
Statement of Income 1H FY4/22 Financial Summary 8 SG&A expenses increased by 23.8% QoQ and operating income decreased by 13.8% QoQ due to increased investment in S&M and recruitment in accordance with the medium term management plan. FY4/21 FY4/22 (Millions of yen) (May 2020-Apr. 2021) (May 2021-Apr
Slide 9: Changes in Net Sales, Operating Profit and Operating Margin
Changes in Net Sales, 1H FY4/22 Financial Summary 9 Operating Profit and Operating Margin First half performance was generally as planned. The sales progress rate in 1H FY4/22 was 48.0% of the fiscal year forecast. The operating margin declined 2.9 % YoY to 22.5% due to increased investment in S&M a
Slide 10: Quarterly Changes in Net Sales, Operating Profit and Operating Margin
Quarterly Changes in Net Sales, 1H FY4/22 Financial Summary 10 Operating Profit and Operating Margin The quarterly operating profit margin decreased by 5.2% QoQ to 20% due to investments in marketing, advertising, and recruiting in accordance with the medium term management plan. (Millions of yen) O
Slide 11: Changes in Sales Composition 1H FY4/22
Changes in Sales Composition 1H FY4/22 Financial Summary 11 Sales of products for cloud services remained strong despite the negative effects of the pandemic. Subscription sales (monthly fees for cloud services) were 26.5% higher than one year earlier. Sales of cloud service products and others 1H F
Slide 12: Annual Recurring Revenue
Annual Recurring Revenue 1H FY4/22 Financial Summary 12 (Subscription Sales) The number of fee-paying stores is increasing even during the COVID-19 crisis. ARR increased 25.2% from one year earlier. ARR at end of quarter YoY ARR (Millions of yen) +25.2% 2.31billion * 2,500 QoQ +6.5% 2,310 2,000 2,16
Slide 13: Analysis of Changes in Operating Profit
Analysis of Changes in Operating Profit 1H FY4/22 Financial Summary 13 (YoY) 441 (171) Higher sales Higher Higher cost sales of sales • Number of fee based contracts increased (Millions of yen) • Growth of consistent sales (monthly fees) due to low churn rate (72) Personnel Effects of COVID-19 expen
Slide 14: Quarterly Changes in SG&A Expenses
Quarterly Changes in SG&A Expenses 1H FY4/22 Financial Summary 14 The SG&A ratio increased to 43.4% due to investments in marketing, advertising, and recruiting in accordance with the medium term management plan. These investments will continue. (Millions of yen) SG&A expense ratio Others Depreciati
Slide 15: Growth in Number of Employees
Growth in Number of Employees 1H FY4/22 Financial Summary 15 Increased by 14.5% from the previous term due to extensive recruiting activities. The average age is 33.0 and the average length of employment is two years and ten months. We are working to develop highly-skilled engineers through internsh
Slide 16: Business Summary
16 Business Summary
Slide 17: Q2 FY4/22 Topics
Q2 FY4/22 Topics Business Summary 17 Oct. 2021 • Business and equity alliance with Shikomel food tech Inc. which provides the Shikomel central kitchen application. • The 2nd Smaregi App Contest with 10 million in prize money • Major Renewal of "Smaregi payments" Announced Sep. 2021 • Opened Fukuoka
Slide 18: Composition of plan Categories with Fees
Composition of plan Categories with Fees Business Summary 18 We continued to acquire users even during the prolonged COVID-19 crisis. Providing customer success meant that the share of fee-paying registered stores increased 1.7 points from one year earlier to 21.1%. 103,476 100,192 96,313 92,824 Pct
Slide 19: Share of Active Stores
Share of Active Stores Business Summary 19 (Including Stores Paying No Fee) 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 1.6 pct. points from one year earlier to 26.4%. Number of Act
Slide 20: Composition of Plan Categories with Fees
Composition of Plan Categories with Fees Business Summary 20 Net increase in all plans with no change in composition ratio. The number of fee-paying stores grew 25.5% YoY to 21,794. (No. of stores) 20,000 Premium Premium Plus Food Business Retail Business Food Retail 4,400 monthly/store 7,700 monthl
Slide 21: Churn Rate
Churn Rate Business Summary 21 The 2Q FY4/22 average churn rate is 0.62%. It remains stable at the low level of 0.58% during 1H FY4/22. The low rate even during the COVID-19 crisis is the result of continuous measures to improve the customer experience (better customer services, etc.). 5% Churn rate
Slide 22: Average Revenue per Account and User (ARPA/ARPU)
Average Revenue per Account and user Business Summary 22 (ARPA/ARPU) Steady average revenue per store. Average revenue per contract is moving up because of the consistently increasing number of multiple store users, which are the primary target. Average Revenue Per Account (ARPA) Average Revenue Per
Slide 23: Monthly Fees by Quarter of Start of Services
Monthly Fees by Quarter of Start of Services Business Summary 23 Achieving Sustainable 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 24: Business Plan for FY4/22
24 Business Plan for FY4/22
Slide 25: Highlights of the FY4/22 Plan
Highlights of the FY4/22 Plan Business Plan for FY4/22 25 Successfully acquired shares in a payment company. Currently working on PMI plan to integrate services with current Smaregi payment to eliminate Royal Gate's deficit as soon as possible and make it a key earnings driver in the future. Schedul
Slide 26: Progress of Medium-term Management Plan
26 Progress of Medium-term Management Plan
Slide 27: Four Key Activities
Four Key Activities Progress of Medium-term Management Plan 27 Medium-term Management Plan - Advancing Smaregi to a Fast-growth Cycle Further increase in business investments during the next three fiscal years, resulting in lower earnings, in order to establish a continuous cycle for fast growth Inv
Slide 28: Activities to Accomplish Goals of the Medium-term Management Plan
Activities to Accomplish Goals of Progress of Medium-term Management Plan 28 the Medium-term Management Plan In FY4/22, marketing, advertising, recruiting and other expenditures will increase with the goal of rapidly increasing subscription sales in order to accomplish the goals of the medium-term m
Slide 29: The Smaregi App Market Progress
The Smaregi App market Progress Progress of Medium-term Management Plan 29 Who will get the grand prize of 10 million The 2nd Smaregi app contest is now open Publicly released apps increased 35% QoQ. With more development partners, we are aiming for further energization. The Smaregi App Market is ga
Slide 30: ARR Growth
ARR Growth Progress of Medium-term Management Plan 30 ARR in the second quarter was in line with the FY4/22 plan of 2,700 million as the first step toward the goal of doubling ARR. (Millions of yen) 3,000 Plan 2,700 4Q plan 3Q plan Plan Plan 3,670 5,000 2Q result 2Q plan 1Q plan 2,310 2,000 2,077 0
Slide 31: Medium-term Management Plan
31 Medium-term Management Plan
Slide 32: Medium-term Management Plan
Medium-term Management Plan Medium-term Management Plan 32 Celebrating our 10th anniversary. Looking ahead to more growth in the next 10 years The Smaregi Long-term Vision and Medium-term Management Plan https://corp.smaregi.jp/ir/management/vision2031.php
Slide 33: Appendix
33 Appendix ABOUT SMAREGI
Slide 34: Business Activities
Business Activities Appendix 34 High-performance Faster, cheaper, and more convenient cloud-based POS systems Smaregi has achieved faster installation times and cheaper prices by providing POS systems through a Smaregi provides platform for SaaS model, which also offers significant benefits for per
Slide 35: Business Activities
Business Activities Appendix 35 Software development Other Platform service EC Online store for store peripherals POS Payment Sales data SES IT resource development Attendance data HR CVC Venture capital investment Expansion of the Smaregi economic zone
Slide 36: The Smaregi Marketing Strategy
The Smaregi Marketing Strategy Appendix 36 14% of Our goal is a 38% share of the targeted 770,000 stores the market Big businesses in Japan The POS system market will remain competitive rather than (at least 40 stores) 100,000 stores dominated by a single company because a company that Goal is Our m
Slide 37: Business plans, forecasts and other forward-looking statements in this presentation are based on the
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 38: Results of Operations for the First Quarter of the Fiscal Year Ending April 30, 2022
Results of Operations for the First Quarter of the Fiscal Year Ending April 30, 2022 May 1 – July 31, 2021 Smaregi, Inc.