Slide 1: Financial Results Briefing Materials for Q2 FY2023/9
Securities code: 4479 Makuake Financial Results Briefing Materials for Q2 FY2023/9 Makuake, Inc.
Slide 2: Financial Results
Financial Results
Slide 3: Overview of Q2 FY2023/9
Overview of Q2 FY2023/9 GMV, net sales and operating loss came in largely in line with the plan as we moved forward with initiatives to promote repeat use by project owners and project supporters While gross profit margin declined slightly to 81.6% on higher software depreciation charges, there were
Slide 4: Gross Amount of "Support" Pre-orders (GMV), Quarterly
Gross Amount of "Support" Pre-orders (GMV), Quarterly + The number of published projects posted a decline of 3.4% QoQ, reflecting a gradual return to operations by businesses after the start of the year, and seasonality factors such as a lower number of business days in February. That said, the numb
Slide 5: Net Sales and Take Rate
Net Sales and Take Rate + Net sales were down 3.0% QoQ--a lower decline than that of GMV--as other sales, which include related services such as advertising agency sales, increased. Further, our take rate rose 0.1 pt (Unit: JPY million) 1,288 1,232 1,152 1,132 1,107 970 992 —®— Take Rate” HE vet sal
Slide 6: Gross Profit and Gross Profit Margin
Gross Profit and Gross Profit Margin + While gross profit margin declined 0.4 pt on slightly higher software depreciation charges--which are being capitalized from this fiscal year-- there were no structural changes in our business, and the gross profit margin remained within its usual range of 80%
Slide 7: Selling, General and Administrative Expenses
Selling, General and Administrative Expenses + Personnel expenses increased as we boosted the development of new functionalities to support repeat use of the platform by project owners and project supporters. Note that we achieved our GMV plan even as our advertising expenses were down 2.5% QoQ, tha
Slide 8: Operating Profit (Loss) and Operating Margin Relative to GMV
Operating Profit (Loss) and Operating Margin Relative to GMV + While operating loss increased by JPY 5.8 million QoQ due to a decline in GMV and net sales, it came within the range of our plan (Unit: JPY million) Increased Hiring 7 539, 6.3% Z\ Operating profit margin —* ‘relative to GMV IEEE Operat
Slide 9: Key Performance Indicators: Repeat Project Owners and Repeat Pre-orders
Key Performance Indicators: Number of Published Projects by Repeat Project Owners and Amount of Repeat "Support" Pre-orders + While the number of published projects by repeat project owners and the amount of repeat ' support" pre-orders declined in January and February due to Q2 seasonality, we saw
Slide 10: Other Indicators
Other Indicators * Access UUs continued to decline as there was no change in our external environment where time and money spent on offline consumption are increasing. However, the declining trend is becoming more gradual. The number of members is steadily increasing (Unit: thou.) No. of Access Uniq
Slide 11: Number of Published Projects and Employee Count
Number of Published Projects and Employee Count + We increased the number of developers to build new functionalities, while in other departments, we focused mainly on inter-departmental transfers to ensure that the right people are in the right positions, and we secured the necessary personnel. We h
Slide 12: Major Projects Launched in Q2 FY2023/9
Major Projects Launched in Q2 FY2023/9 + As opportunities to go out increased, we saw a significant amount of "support" pre-orders for accommodation vouchers, restaurant memberships, and fashion items. On the other hand, demand for items that enrich time spent at home has continued due to changes in
Slide 13: Major Projects Launched in Q2 FY2023/9 (Large Companies)
Major Projects Launched in Q2 FY2023/9 (Large Companies) + Large companies tend to repeatedly use Makuake once they try it--this trend was particularly noticeable in Q2, with many repeat users. In addition, we have seen an increase in projects aiming to acquire new customer segments through new prod
Slide 14: SDGs-Related Projects Launched in Q2 FY2023/9
SDGs-Related Projects Launched in Q2 FY2023/9 + We saw many projects focused on environmental conservation by addressing waste reduction, such as "upcycled" products that make use of previously discarded items and products that help minimize waste output “Et 1,601,20085 Disinfecting Spray Made from
Slide 15: TOPICS
TOPICS Copyright € Collaboration with Jupiter Shop Channel Which Operates SHOP CHANNEL Support of Project Owners Acquisition of Project Supporters SHOP CHANNEL © Makuake Products of project managers launched on Makuake were introduced on SHOP CHANNEL to expand their reach in the primary distribution
Slide 16: TOPICS
TOPICS Hosting “Makuake Global Meetup” Event for Local Project Owners in Shenzhen, China Acquisition of project owners ® Makuake Global Meetup @Shenzhen 4 By ABE BA a woboeee ros cate Oat ‘aaeeeo wnat We held a "Makuake Global Meetup@Shenzhen" event in Shenzhen to promote further use of "Makuake" pl
Slide 17: Medium-Term Business Plan (FY2023/9-FY2025/9)
Medium-Term Business Plan (FY2023/9-FY2025/9)
Slide 18: 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 Copyright € fakuake, Inc. All Rights Reserved Vision Mission Standard Create a wo
Slide 19: 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 A
Slide 20: 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-ordering = eee 2 -e=- Pre-Orders 20% Businesses commission Consu
Slide 21: Value Provided by Makuake: Businesses
Value Provided by Makuake: Businesses + We not only help businesses avoid 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 fa
Slide 22: 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 23: Main Target Markets through FY2025/9
Main Target Markets through FY2025/9 + Wewill 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 24: GMV Performance since FY2018/9
GMV Performance since FY2018/9 + Within a span of five and a half years, quarterly GMV has increased 5.3 times from Q1 FY2018. Moreover, during the pandemic, there was a rapid but temporary increase in GMV driven by the surge in demand for e-commerce Time When Economic Reopening Gradually Got Underw
Slide 25: 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 26: 1. Establishing a Business Structure Not Greatly Influenced by the External Environment
1. Establishing a Business Structure Not Greatly Influenced by the External Environment + During the pandemic, our business growth was greatly impacted by the external environment, resulting in significant fluctuations. To overcome this, we will create a prawth framework based on our own efforts, en
Slide 27: 2. Continuing GMV Growth and Enhancing Capacity to Achieve GMV Targets
2. Continuing GMV Growth and Enhancing Capacity to Achieve GMV Targets + We will continue to strengthen our initiatives that have proven to be effective and place a new focus on building a structure for retaining project owners and supporters, as well as promoting their repeat business, with a parti
Slide 28: 3. Improving productivity
3. Improving productivity + We will advance measures such as expanding support options for project owners and various training initiatives for skill development, thoroughly implement cost management, raise the value-added while reducing invested resources, and improve productivity Initiatives to Imp
Slide 29: 4. Actualizing Large-Scale TAM (Total Addressable Market)
4. Actualizing Large-Scale TAM (Total Addressable Market) + 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
Slide 30: Factor Analysis of Makuake Service Structure to Achieve Medium-Term Management Plan
Factor Analysis of Makuake Service Structure to Achieve Medium-Term Management Plan * GMV, Makuake's key goal indicator (KGI), can be factored into two main components: project owners and supporters. These components can grow in an accelerated manner through our initiatives to win repeat business, l
Slide 31: 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 Jj 2023.3 2025.9 2023.3 2025.9 FY2023/9 FY202
Slide 32: 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 33: Growth Strategy for the 2nd Half of FY2023/9
Growth Strategy for the 2nd Half of FY2023/9 + We aim to achieve our annual GMV target of JPY 18 billion--while securing a stable revenue base--by expanding our repeat customer base through initiatives targeted at project owners with growth potential and highly-loyal members within our mem No. of ac
Slide 34: FY2023/9 Full-Year Forecasts
FY2023/9 Full-Year Forecasts + Net sales and operating loss, as well as the gross amount of "support" pre-orders, came in largely in line with the plan for the 1st half of the fiscal year. As of now, there are no changes to our full-year financial forecasts (Unit: JPY million) Gross Amount of “Suppo
Slide 35: Human Capital Management Plan
Human Capital Management Plan
Slide 36: Strengths of Our Human Capital Management as Identified in the Engagement Survey
Strengths of Our Human Capital Management as Identified 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
Slide 37: Establishing Framework to Strengthen Our Human Capital Management
Establishing Framework to Strengthen Our Human Capital Management + We have established a dedicated team to create and propagate our company's culture by increasing interactions between project owners and supporters, while, at the same time, promoting exchange with other departments by planning and
Slide 38: Challenges in Enhancing Human Capital to Drive Forward the Medium-Term Management Plan
Challenges in Enhancing Human Capital to Drive Forward the Medium-Term Management Plan + 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 a
Slide 39: Addressing Management Challenges Through Human Capital Management
Addressing Management Challenges Through Human Capital Management * We will address our challenges in management and enhancing human capital by primarily focusing on human resources, and strive to achieve our medium-term management plan Management Challenges Challenges in Enhancing Human Capital Est
Slide 40: Creating Agile Organizational Structure That Can Effectively Respond to Changes
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 41: Continued Growth in GMV + Knowledge Sharing and Reskilling System
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 42: Improving Productivity + Securing Time for Creative Thinking
Improving Productivity + Securing Time for Creative Thinking + We aim 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 pl
Slide 43: Appendix
Appendix
Slide 44: Business Results Summary: YoY, cumulative through Q2
Business Results Summary: YoY, cumulative through Q2 . FY2022/9 (Unit: JPY million) 01.2 Gross Amount of “Support” Pre-orders: GMV 10,393 (Tax included) Net Sales 2,243 Gross Profit 1,789 Operating Profit (Loss) (17) Ordinary Profit (Loss) 4 Net Income (Loss) 61 akuake, Inc. All Rights Reserved Chan
Slide 45: Business Results Summary: YoY, standalone quarter
Business Results Summary: YoY, standalone quarter FY2022/9 (Unit: JPY million) Q2 (standalone) Gross Amount of “Support” Pre-orders: GMV 5,024 (Tax included) Net Sales 1,090 Gross Profit 866 Operating Profit (Loss) (56) Ordinary Profit (Loss) (34) Net Income (Loss) (28) akuake, Inc. All Rights Reser
Slide 46: Business Results Summary: QoQ, standalone quarter
Business Results Summary: QoQ, standalone quarter FY2023/9 (Unit: JPY million) om crandatone) Gross Amount of “Support” Pre-orders: GMV 4,251 (Tax included) Net Sales 908 Gross Profit 744 Operating Profit (Loss) (186) Ordinary Profit (Loss) (183) Net Income (Loss) (185) c. All Rights Reserved Change
Slide 47: KPIs: YoY, standalone quarter
KPIs: YoY, standalone quarter FY2022/9 Change Q2 (standalone) YoY se 10a a a9 No. of New Projects by Repeat Project Owners 983 855 (28) Project Owners’ Repeat Rate (%6)? 90.9 Pe: : Amount of Repeat "Support" Pre-orders (JPY million) 3,718 (587) Repeat “Support” Pre-order Rate (%)"? 740 8 : No. of Ac
Slide 48: KPIs: QoQ, standalone quarter
KPls: QoQ, standalone quarter FY2023/9 Change Q1 (standalone) QoQ No. of New Projects 2,087 732. (355) No. of New Projects by Repeat Project Owners mes 855 (161) Project Owners’ Repeat Rate (%6)? $3.5 Pe: : Amount of Repeat "Support" Pre-orders (JPY million) 3,224 (94) Repeat “Support” Pre-order Rat
Slide 49: Dividend Policy
Dividend Policy ake, nc 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.
Slide 50: 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 April 25, 2023 and certain assumptions deemed reasonable by Makuake, Inc., it may change due to shifts in business environment an
Slide 51: IR Inquiries
Rights Reserved IR Inquiries IR@makuake.co.jp 51
Slide 52: Makuake
@® Makuake