Makuake, Inc. · TSE:4479
Makuake — Q3 FY2024/9 Earnings Presentation
39 slides from Makuake's earnings presentation, Jul 30, 2024
Slide 1: Financial Results Briefing Materials for Q3 FY2024/9
Makuake Financial Results Briefing Materials for Q3 FY2024/9 (fiscal year ending September 30, 2024) Makuake, Inc. Securities code: 4479
Slide 2: Financial Results
Financial Results
Slide 3: Overview of Q3 FY2024/9
Overview of Q3 FY2024/9 ~ "Support" pre-orders and net sales fell short of the plan. One factor is that the launch schedule for high-quality new and previously dormant projects, which we began acquiring in Q3, has been deferred to Q4 and beyond. Additionally, the unit value of these high-quality pro
Slide 4: Gross Amount of "Support" Pre-orders (GMV) Quarterly
Gross Amount of "Support" Pre-orders (GMV)* Quarterly + Slight QoQ increase on increased number of active projects and higher project unit value but 10.4% YoY decline of GMV due to delays in publishing high-quality new and former dormant projects, with some impact from declining personal spending (U
Slide 5: Net Sales and Take Rate
Net Sales and Take Rate + Net sales declined 12.0% YoY. Like GMV, up slightly QoQ but short of forecast, and Makuake take rate fell temporarily due to ongoing special plan to support Noto Peninsula earthquake recovery efforts (ended in June) (Unit: JPY million) —e— Tokerate! 1,288 HE Net sates 1,232
Slide 6: Gross Profit and Gross Profit Margin
Gross Profit and Gross Profit Margin * Gross profit declined 14.8% YoY, primarily on lower net sales. Gross profit margin declined by 2.5ppt YoY due to higher software amortization following new feature releases and a dip in advertising spending effectiveness due to consumer behavior (Unit: JPY mill
Slide 7: Selling, General, and Administrative Expenses
Selling, General, and Administrative Expenses + We continued to optimize our cost structure with strengthened SG&A management that began in Q2 FY2023/9. We were able to reduce overall SG&A expenses by 21.0% YoY, and still see room for optimization, primarily in advertising expenses (Unit: JPY millio
Slide 8: Operating Profit (Loss) and Operating Profit Margin Relative to GMV
Operating Profit (Loss) and Operating Profit Margin Relative to GMV + Although we did not post a quarterly profit, as GMV and net sales fell short of forecast, the quarterly operating loss narrowed by JPY 66 million YoY to JPY 15 million due to our efforts to optimize SG&A expenses (Unit: JPY millio
Slide 9: Key KPIs
Key KPIs + The number of active projects increased QoQ as we prioritized acquiring high-quality new and former dormant project owners, but challenges remained with the deferral of numerous new projects until Q4 or later. Average project unit value was solid For the quarter: No. of Active Projects Mo
Slide 10: Other KPI (1)
Other KPI (1) + The number of projects published increased, primarily from repeat project owners due to ongoing efforts to acquire projects from them. Repeat projects accounted for most of “support” pre-order amounts due to reduced advertising spending (Unit: project) Number of New/R t Published Pro
Slide 11: Other KPI (2)
Other KPI (2) + There was a temporary sharp decline in access UUs due to measures to prevent bot website access, but we understand there was virtually no drop-off after factoring in the historical bot access volume and Q3 decline in advertising expenses (Unit: thousand) No. of Access Unique Users’!
Slide 12: Employee Count (Reference Values: Number of Published Projects)
Employee Count (Reference Values: Number of Published Projects) + Employee numbers (primarily developers) fluctuated due to changes in the company’s growth phase, but there was no impact on development progress, and no significant change in the number of personnel directly involved in project public
Slide 13: TOPICS: Partial Change to Earnings Structure Due to Revised Services Offerings
TOPICS: Partial Change to Earnings Structure Due to Revised Services Offerings Project Owners: Supporters: Changes to Makuake Commission Rate Introduction of Secure System Usage Fees Commission revisions Overview of secure system usage fees + Currently: 18.2% of gross “support” pre-order amount (exc
Slide 14: Major Projects Launched in Q3 FY2024/9 (Small and Medium-Sized Enterprises)
Major Projects Launched in Q3 FY2024/9 (Small and Medium-Sized Enterprises) + Interest in products that enrich household living persists after the pandemic. Numerous special items and experiential products are pre-ordered so that consumers can thoroughly enjoy things they like. There is a strong ten
Slide 15: Major Projects Launched in Q3 FY2024/9 (Large Companies)
Major Projects Launched in Q3 FY2024/9 (Large Companies) + Just as with SMEs, many products aimed at enriching lifestyles were created, attracting attention. Also, items available only through the collaboration of cutting-edge technologies realized in Makuake emerged, as well as products made throug
Slide 16: SDGs-Related Projects Launched in Q3 2024/9
SDGs-Related Projects Launched in Q3 2024/9 + Asin Q2, we passed on technology and supported economic rebuilding with projects to support Noto Peninsula earthquake recovery efforts. Additionally, there were many up-cycled and other idea-driven products that contribute to global environmental protect
Slide 17: FY2024/9 Forecasts and Progress Report
FY2024/9 Forecasts and Progress Report
Slide 18: Key Initiatives for the Second Half of Fiscal FY2024/9 and Beyond
Key Initiatives for the Second Half of Fiscal FY2024/9 and Beyond + Weare focusing on booking sales by diversifying the services we offer under revamped acquisition systems while maintaining the measures successful to date, as we address the issues that became apparent in the first half of the fisca
Slide 19: Progress Toward FY2024/9 Financial Forecasts
Progress Toward FY2024/9 Financial Forecasts + The schedule for launching high-quality new and former dormant projects we started to acquire in Q3 was deferred until Q4 and beyond, and there was some impact from declining personal spending. As a result, GMV and net sales fell short of forecasts, and
Slide 20: Revised FY2024/9 Forecasts
Revised FY2024/9 Forecasts
Slide 21: FY2024/9 Full-Year Financial Forecasts Revised (vs. Initial Forecasts)
FY2024/9 Full-Year Financial Forecasts Revised (vs. Initial Forecasts) + We have revised its full-year financial forecasts. This factors in progress on GMV and net sales through Q3, and possible changes to project publishing by owners in light of elevated raw material prices, yen weakness, and infla
Slide 22: Revisions to Full-Year FY2024/9 Financial Forecasts (YoY)
Revisions to Full-Year FY2024/9 Financial Forecasts (YoY) + We expect net sales to fall 5.4% YoY due to a revised GMV forecast. However, we forecast the operating loss to narrow by approximately JPY 400 million YoY due to stringent management of SG&A expenses throughout the year (Unit: JPY million)
Slide 23: Q4 Initiatives Aimed at Meeting Revised FY2024/9 Financial Forecasts
Q4 Initiatives Aimed at Meeting Revised FY2024/9 Financial Forecasts + The company’s earnings structure has changed in places along with services offered, with impacts emerging since August. We expect high- quality projects that ha been deferred to be published as preparations are complete, and will
Slide 24: Updated Medium-Term Management Plan Through FY2025/9 Accompanying Revised Financial Forecasts
Updated Medium-Term Management Plan Through FY2025/9 Accompanying Revised Financial Forecasts + The company decided that it was necessary to assess and review the medium-term management plan through FY2025/9 previously disclosed due to the revision to full-year financial forecasts and partial change
Slide 25: Appendix
Appendix
Slide 26: 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 27: 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 ACTF
Slide 28: 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-orders “Support” ( ) pre-orders Consumers =Project Supporters Bu
Slide 29: 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 30: 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 31: Financial Results Summary: YoY (Cumulative through Q3)
Financial Results Summary: YoY (Cumulative through Q3) (Unit: JPY million) are = Change Percent Change Gross Amount of “Support” Pre-orders: GMV 12,929 (284) (2.2) (Tax included) — « a Gross Profit 2,245 2,092 (153) (6.8) Operating Profit (Loss) (459) ay +345 - Ordinary Profit (Loss) (454) a0) +343
Slide 32: Financial Results Summary: YoY (Standalone Quarter)
Financial Results Summary: YoY (Standalone Quarter) oy an FY2023/9 (Unit: JPY million) Q3 (standalone) Gross Amount of “Support” Pre-orders: GMV 4,569 (Taxincluded) Net Sales 990 Gross Profit 782 Operating Profit (Loss) (81) Ordinary Profit (Loss) (80) Net Income (Loss) (82) Copyright © Makuake, Inc
Slide 33: Financial Results Summary: QoQ (Standalone Quarter)
Financial Results Summary: QoQ (Standalone Quarter) FY2024/9 (Unit: JPY million) Q2 (standalone) Gross Amount of “Support” Pre-orders: GMV 3,957 (Taxincluded) Net Sales 830 Gross Profit 649 Operating Profit (Loss) (81) Ordinary Profit (Loss) (80) Net Income (Loss) (70) Copyright © Makuake, Inc. All
Slide 34: KPIs: YoY (Standalone Quarter)
KPls: YoY (Standalone Quarter) FY2023/9 Q3 (standalone) No. of Published Projects 1,918 he ofan apy 1,085 Project ot Rate 56.6 eno 3,409 Repeat praia 74.6 No. of Access Unique Users 11,806,705 No. of Members 2,526,293 No. of “Support” Pre-orders 386,786 Change YoY (221) (2,785,449) +321,316 (56,922)
Slide 35: KPIs: QoQ (Standalone Quarter)
KPls: QoQ (Standalone Quarter) FY2024/9 Q2 (standalone) No. of Published Projects 1,499 No. of Published Projects by 860 Repeat Project Owners Project Owners’ Repeat Rate ea 57.4 Amount of Repeat "Support" p pe 3,038 Pre-orders (JPY million) Repeat praia 76.8 No. of Access Unique Users 9,996,622 No.
Slide 36: 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 37: Disclaimer and Cautions Regarding Future Outlook
Disclaimer and Cautions Regarding Future Outlook m While the content of this document has been prepared based on generally recognized economic and social conditions as of July 30, 2024 and certain assumptions deemed reasonable by Makuake, Inc., it may change due to shifts in business environment and
Slide 38: IR Inquiries
Copyright © Ma IR Inquiries |IR@makuake.co.jp 38
Slide 39: Makuake
@® Makuake