Makuake, Inc. · TSE:4479
Makuake — FY2023/9 Earnings Presentation
49 slides from Makuake's earnings presentation, Oct 24, 2023
Slide 1: Financial Results Briefing Materials for FY2023/9
Makuake Financial Results Briefing Materials for FY2023/9 (fiscal year ended September 30, 2023) Makuake, Inc. Securities code: 4479
Slide 2: Financial Results
Financial Results
Slide 3: Overview of Q4 FY2023/9
Overview of Q4 FY2023/9 ( - Increased real-world consumption, especially in travel, lodging, live event participation, dining, and similar categories in August, caused Q4 GMV (the gross amount of "support" pre-orders) to fall behind. For the full year, GMV finished 2.2% below the plan. Results - Con
Slide 4: Gross Amount of "Support" Pre-orders (GMV), Quarterly
Gross Amount of "Support" Pre-orders (GMV), Quarterly + Increased real-world consumption, especially in travel, lodging, live event participation, dining, and related categories in August, had a more significant impact than anticipated. Nevertheless, we were able to achieve a 2.4% growth in GMV in Q
Slide 5: Net Sales and Take Rate
Net Sales and Take Rate + In addition to the growth in GMV, revenues from MIS and other related Makuake services were robust, leading to a 4.0% increase in net sales compared to the previous quarter. The take rate improved to 24.2% thanks to revenue from sources outside of the Makuake service (Unit:
Slide 6: Gross Profit and Gross Profit Margin
Gross Profit and Gross Profit Margin + Gross profit increased by 3.9% QoQ, driven by the growth in net sales. The gross profit margin—at 79.0%—remained at a level similar to the previous quarter (Unit: JPY million) 84.3% 84.3% 84.0% 82.7% 5 81.7% 82.0% 81.6% 80.5% 80.1% 81.1% . 80.1% 80.1% 79.5% ° w
Slide 7: Selling, General and Administrative Expenses
Selling, General and Administrative Expenses + In Q4, we successfully reduced SG&A expenses, primarily in personnel, through headcount adjustments as we rigorously pursued the optimal placement of staff. Additionally, continuing our efforts from the previous quarter, we were able to control advertis
Slide 8: Operating Profit (Loss) and Operating Profit Margin Relative to GMV
Operating Profit (Loss) and Operating Profit Margin Relative to GMV + Thanks to the reduction in personnel expenses, operating loss in Q4 declined further, coming in at JPY 29 million, an improvement of JPY 51 million from the previous quarter (Unit: JPY million) TVcommercials TV commercials TVads l
Slide 9: Key Performance Indicators: Published Projects by Repeat Project Owners
Key Performance Indicators: Number of Published Projects by Repeat Project Owners and Amount of Repeat "Support" Pre-orders + The number of projects published by repeat project owners increased as we enhanced support by tailoring it to the specific segments project owners operate in and promoting re
Slide 10: Other Indicators
Other Indicators + Factors such as people spending more time going out in August have had an impact, leading to a 3.6% decrease in access UUs from the previous quarter. Nevertheless, even with the decrease in access UUs, the membership count has been steadily growing—by over 84,000 members, on avera
Slide 11: Number of Published Projects and Employee Count
Number of Published Projects and Employee Count + The number of published projects increased by 1.7% QoQ, even as the number of curators and screening/monitoring staff directly involved in project creation remained virtually unchanged. Moreover, the realignment of development priorities and successf
Slide 12: Human Capital Indicators
Human Capital Indicators + Weare prioritizing workforce diversity, advancing the creation of an easy-to-work environment, and building the foundation for human capital management. Simultaneously, we are focusing on fostering an organizational climate and culture that minimizes biases Male and Female
Slide 13: TOPICS: New Functionalities
TOPICS: New Functionalities Started Providing Functionality to Display Project | Supporters' Reviews on Project Owner Management Console e 2. Rea eM” PROAI SI FOI TI KLE a | ORREMME a - e yauarirenbie? si e JOD aOR jenn ee 2Aa0Nm va This functionality allows project supporters to ask questions to pr
Slide 14: TOPICS: Addressing Regional Revitalization and Social Issues
TOPICS: Addressing Regional Revitalization and Social Issues Collaborating with Municipalities to Revitalize Local Industries ing the Number of Active Projects @ratvate Ss Okinawa Prefecture: By delivering local specialty products and experiences to project supporters both within and outside the pre
Slide 15: Expansion of Distribution Channels for Project Owners
Expansion of Distribution Channels for Project Owners Makuake SHOP to Successively Open in Eight Yodobashi Camera Stores Across the Country, with Plans to Expand toa Total of Ten Stores Nationwide Increasing the Number of Active Projects MATRMORNSER257959qRLMRE ® Makuake SFKinN*F ‘www.yodobashi.com
Slide 16: TOPICS: Makuake's 10th Anniversary and Makuake Mirai Marche 2023
TOPICS: Makuake's 10th Anniversary and Makuake Mirai Marche 2023 Opened Special Website for Makuake's 10th Anniversary . , 4 jakuake 10th Anniversary Noose a ; Real Shopping Event: "Makuake Mirai Marche 2023" On Challenge SURLHREEOALLTOMatuabeORORA 17 855-1NOWMIS ALCOA BORA ER TEMalvaleit. WALCIORL
Slide 17: Major Projects Launched in Q4 FY2023/9
Major Projects Launched in Q4 FY2023/9 + Many popular projects were published by repeat project owners who frequently use Makuake to launch new products and services. The economic rationale for using Makuake in the pre-primary distribution market is increasingly gaining acceptance 409744 408 SMART R
Slide 18: Major Projects Launched in Q4 FY2023/9 (Large Companies)
Major Projects Launched in Q4 FY2023/9 (Large Companies) + Itis not just for small and medium-sized businesses—many large companies as well are utilizing Makuake repeatedly. We continue to build a track record as an effective platform that supports new challenges pursued by large enterprises Se Keep
Slide 19: SDGs-Related Projects Launched in Q4 FY2023/9
SDGs-Related Projects Launched in Q4 FY2023/9 + While "upcycled" products addressing waste issues remain at the forefront, we are also seeing projects from project owners who are engaged in sustainable procurement and SDGs-related education 3,176,500F5 i Si ae a ae 2 et oe Ss ORS CARAS SERKEHO] TICK
Slide 20: Financial Results Summary for FY2023/9: vs. Forecasts
Financial Results Summary for FY2023/9: vs. Forecasts + Net sales were down 0.8% against the plan, narrowly missing the target. On the other hand, operating loss was JPY 489 million, JPY 390 million smaller than projected (Unit: JPY million) Gross Amount of “Support” Pre-orders: GMV (Taxincluded) Ne
Slide 21: Financial Results Summary for FY2023/9: YoY
Financial Results Summary for FY2023/9: YoY + In FY2023/9, which was impacted for the full year by the effects of economic reopening that began in the 2nd half of the previous fiscal year, both sales and profit levels declined from the prior year (Unit: JPY million) FY2022/9 Change Percent Change Gr
Slide 22: FY2024/9 Forecasts
FY2024/9 Forecasts
Slide 23: FY2024/9 Forecasts
FY2024/9 Forecasts + For FY2024/9, we aim to increase net sales by 3.0% from FY2023/9 and return to profitability, targeting operating profit of JPY 16 million (Unit: JPY million) FY2023/9 Change Percent Change Gross Amount of “Support” Pre-orders: GMV 1,235 7.0 (Taxincluded) Net Sales 3,810 114 3.0
Slide 24: Assumptions for FY2024/9 Financial Forecasts
Assumptions for FY2024/9 Financial Forecasts * Considering factors such as the seasonality of increased travel demand during periods with consecutive holidays and the uncertainty in the external environment due to the international situation, we are using Q4 FY2023/9 GMV as the baseline. We anticipa
Slide 25: Growth Strategy for FY2024/9
Growth Strategy for FY2024/9 + Weaim to boost the creation of high-quality pro ects by repeat project owners, grow the number of active projects, and improve project supporter retention through project managers' efforts to accumulate project supporter fans and CRM initiatives, ultimately increasing
Slide 26: Revisions to Medium-Term Management Plan (FY2023/9-FY2025/9)
Revisions to Medium-Term Management Plan (FY2023/9-FY2025/9)
Slide 27: Main Target Markets through FY2025/9: No Changes
Main Target Markets through FY2025/9: No Changes + 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 Addre
Slide 28: Factor Analysis of Makuake Service Structure to Achieve Medium-Term Plan
Factor Analysis of Makuake Service Structure to Achieve Medium-Term Management Plan: No Changes * GMV, Makuake's key goal indicator (KGI), can be factored into two main components: project owners and project supporters. These components can grow in an accelerated manner through our initiatives to wi
Slide 29: New Medium-term KPI Targets
New Medium-term KPI Targets + For Q4 FY2025/9, we are changing the number of active projects during the month to 1,643 and the monthly project unit value to JPY 1.15 million. We aim to achieve a GMV of JPY 21.5 billion (minimum target) Average No. of Active Average Monthly Project Projects during th
Slide 30: Medium-Term Operating Profit Margin Target: No Changes
Medium-Term Operating Profit Margin Target: No Changes + 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% FY202
Slide 31: Implementation Phases for Key Initiatives to Achieve Medium-Term Targets
Implementation Phases for Key Initiatives to Achieve Medium-Term KPI Targets and Operating Profit Margin: No Changes + We will proceed with Phase 1 to eliminate negative experiences of project supporters and establish a system for their retention by the first half of September 2024. From the second
Slide 32: Growth Vision for New GMV Target
Growth Vision for New GMV Target + Wewill start preparing communication functionalities and loyalty programs in the second half of FY2024/9 and launch them in FY2025/9. This, coupled with our organic growth, will accelerate supporter retention and drive GMV growth Increase in GMV by promoting repeat
Slide 33: Progress Towards Medium-Term KPI Targets
Progress Towards Medium-Term KPI Targets + Various measures to boost the 1st-day project unit value—one of our strategies to increase the average monthly project unit value—have proven successful. This has led to a 3.3% QoQ improvement in the average monthly project unit value, resulting in a 2.4% g
Slide 34: Appendix
Appendix
Slide 35: 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 36: 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 AC
Slide 37: 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 “Support” ( ) Pre-Orders Businesses commission Consumer
Slide 38: 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 39: 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 40: Financial Results Summary: YoY (Full-Year)
Financial Results Summary: YoY (Full-Year) (Unit: JPY million) Gross Amount of “Support” Preorders: GMV (Tax included) Net sales Gross profit Operating Profit (Loss) Ordinary Profit (Loss) Net Income (Loss) Copyright © Makuake, Inc. All Rights Reserved FY2022/9 19,776 4,206 3,358 (324) (302) (1,347)
Slide 41: Financial Results Summary: YoY (Standalone Quarter)
Financial Results Summary: YoY (Standalone Quarter) . 7 FY2022/9 entero @ (Standallona) | A heBan | Gross Amount of “Support” Preorders: GMV 4,136 (Taxincluded) Gross profit 683 a Operating Profit (Loss) (234) 9) Ordinary Profit (Loss) (235) 8 Net Income (Loss) (1,354) 8 Copyright © Makuake, Inc. Al
Slide 42: Financial Results Summary: QoQ (Standalone Quarter)
Financial Results Summary: QoQ (Standalone Quarter) (Unit: JPY million) Gross Amount of “Support” Preorders: GMV (Tax included) Net sales Gross profit Operating Profit (Loss) Ordinary Profit (Loss) Net Income (Loss) Copyright © Makuake, Inc. All Rights Reserved FY2023/9 Q3 (standalone) 4,569 990 782
Slide 43: KPIs: YoY (Full-Year)
KPIs: YoY (Full-Year) No. of New Projects No. of New Projects by Repeat Project Owners Project Owners’ Repeat Rate (%)*1 Amount of Repeat "Support" Pre-orders (JPY million) Repeat “Support” Pre-order Rate (%)*2 No. of Access Unique Users No. of Members No. of “Support” Pre-orders FY2022/9 8,314 4,36
Slide 44: KPIs: YoY (Standalone Quarter)
KPls: YoY (Standalone Quarter) FY2022/9 Q4 (standalone) No. of New Projects 1,979 seater 1,084 oe 548 pyeorders PV millon) 3,294 Repeat ee) Pre-order 19.6 No. of Access Unique Users 13,057,289 No. of Members 2,273,866 No. of “Support” Pre-orders 367,131 Change YoY 266 (1,669,845) 337,009 32,331 “1 R
Slide 45: KPIs: QoQ (Standalone Quarter)
KPls: QoQ (Standalone Quarter) FY2023/9 Q3 (standalone) No. of New Projects 1,918 seater 1085 Repeat Rate (21 56.6 ee aa 3,409 Repeat ee) Pre-order 14.6 No. of Access Unique Users 11,806,705 No. of Members 2,526,293 No. of “Support” Pre-orders 386,786 Change QoQ 33 3 151 (419,261) 84,582 12,676 “1 R
Slide 46: 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 47: 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 October 24, 2023 and certain assumptions deemed reasonable by Makuake, Inc., it may change due to shifts in business environment
Slide 48: IR Inquiries
Copyright © Ma IR Inquiries |IR@makuake.co.jp 48
Slide 49: Makuake
@® Makuake