Kufu Company Holdings Inc. · TSE:4376
Kufu — Locoguide — Q3 FY2021.3 Earnings Presentation
26 slides from Kufu's earnings presentation, Feb 12, 2021
Slide 1: 3rd Quarter FY2021.3 Financial Results
3rd Quarter FY2021.3 Financial Results Locoguide Inc. February 12, 2021
Slide 2: Locoguide's Vision
Locoguide’s Vision To Deliver Smarter and More Enjoyable Way of Living the Local Community Life + To Deliver Safety Shopping Relaxation Drop-by Community Spots Events Learning/ Education Dining Creating Services that Change Japanese Consumers’ Behaviors by Maximizing Value of “Time” x “Place” © 2021
Slide 3: Agenda
Agenda 1. 3Q Financial Highlights 2. KPIs Trend 3. 3Q Business Highlights © 2021 Locoguide Inc. All Rights Reserved. 2
Slide 4: Highlights
Highlights KPIs Number of Monthly Active Users Number of Subscribers Churn Rate 16.1 MM 30,739 Stores 0.6％ (YoY+64.8%) (YoY+24.7%) 3Q Financial Results (Accumulated) Congestion Lamp Revenue Operating Profit Number of Adopting Local Governments JPY 1,192 MM JPY 285 MM 220 （YoY+15.0%) (YoY+6.8%) （QoQ+
Slide 5: Social Changes Caused by COVID-19
Social Changes Caused by COVID-19 Consumers Retail stores and facilities ✓ More and more consumers are getting concerned ✓ Retail stores/facilities have an increasing needs about “Congestion” for communicating “Crowdedness” ✓ Demand for newspaper flyer advertisement is expected information” to consu
Slide 6: Locoguide's Evolution in Response to COVID-19
Locoguide`s Evolution in Response to COVID-19 Advantages of Locoguide’s Business Model ✓ SaaS-type, year-round contract model -- less vulnerable to short-term circumstances ✓ Thriving supermarket / drugstore / home center operators account for 66% of the subscriber stores ✓ Diversified revenue strea
Slide 7: 1. 3Q Financial Highlights
1. 3Q Financial Highlights Locoguide Inc.
Slide 8: 3Q Financial Results (Accumulated)
3Q Financial Results (Accumulated) ✓ 15.0% increase in revenue YoY and 6.8% increase in OP YoY ✓ Revenue increased driven by increase of # of paying customers and successful expansion of local Information business. OP kept growing despite huge investment in human resources ✓ Full year financial fore
Slide 9: 3Q Financial Results (Quarterly)
3Q Financial Results (Quarterly) ✓ 18.7% increase in revenue QoQ and 114.5% increase in OP QoQ ✓ Recovery of advertisement business and successful monetization of local information business contributed to both revenue and OP hikes 3Q Financial Results (Last 3 months) (JPY MM) 2Q 2021.3 3Q 2021.3 QoQ
Slide 10: Revenue Breakdown by Business Segment
Revenue Breakdown by Business Segment ✓ Tokubai Business : 12.8% increase driven by solid increase of # of paying customers ✓ Ad Business : 7.9% drop due to temporary decrease of demand in the 1st half year affected by Covid-19 ✓ Other Business : Soared 502.1% mainly driven by successful monetizatio
Slide 11: Breakdown of SG&A
Breakdown of SG&A ✓ 18.5% increase in SG&A YoY ✓ Aggressive recruiting for business development, resulting in +23 employees YoY Breakdown of SG&A (Last 9 months) (JPY Million) Key SG&A items 900 Personal Expenses Outsourcing Expenses Rent System Usage Fees 828 800 112 employees at the end of the Oth
Slide 12: 2. KPIs Trend
2. KPis Trend o3 Locoguide Inc.
Slide 13: Number of Monthly Active Users and Subscriber Stores
Number of Monthly Active Users and Subscriber Stores ✓ Monthly Active Users significantly increased driven by intense demand in the year-end season, up 64.8% YoY ✓ Number of Subscriber Stores increased primarily in pay-for-performance subscriber stores, up 24.7% YoY # of Monthly Active Users*1 # of
Slide 14: Number of Monthly Active Users
Number of Monthly Active Users ✓ Achieved historically high # of Monthly Active Users in 3Q and keeping its momentum in January ✓ Aiming for additional growth of # of Active Users through enhancement of user convenience on Tokubai # of Monthly Active Users *1 *2 (Million) Target in March 2022 18 24.
Slide 15: Number of Subscriber Stores
Number of Subscriber Stores ✓ Achieved historically high # of Subscriber Stores in 3Q driven by increase of both fixed price and pay-for- performance contracts ✓ Achieve accelerated expansion of pay-for-performance subscriber stores through diversification of our service # of Subscriber Stores*1 Tar
Slide 16: Churn Rate
Churn Rate ✓ Maintaining low level even under the Covid-19 impact 12-Months Average Churn Rate*1 Churn Rate as of December 2020*2 0.60% 0.60% 0.66% 0.60% 0.31% 0.28% 0.35% 0.11% Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 *1 Churn Rate =1-(Revenue from subscribers in this month - Revenue from n
Slide 17: 3. 3Q Business Highlights
3. 3Q Business Highlights Locoguide Inc.
Slide 18: Key Business Developments in 3Q
Key Business Developments in 3Q Internet & Media Business Tokubai Service ・User Expansion：Enriching Tokubai contents more user-friendly ・Subscriber Store Expansion：Accelerating increase of pay-for-performance subscribers Advertisement Each Business’s ・Introduction of new advertisement services and d
Slide 19: User Expansion: Enriching Tokubai contents more user-friendly
User Expansion：Enriching Tokubai contents more user-friendly ✓ Delivering information of subscriber stores and relevant news in a timely manner under the State of Emergency Example of Tokubai Store Information Example of Tokubai News • Example of detailed shop information (ex. Opening hour) • Exampl
Slide 20: Subscriber Store Expansion: Accelerating increase of pay-for-performance subscribers
Subscriber Store Expansion：Accelerating increase of pay-for-performance subscribers ✓ 76% increase in pay-for-performance subscriber stores. 4,682 stores as of Dec. 2020 Key Potential Customers # of Pay-For-Performance Subscribers 5,000 4,682 Stores 4,500 Relaxation Facility 4,000 3,500 +76% 3,000 M
Slide 21: Advertisement Business: Introduction of new advertisement services
Advertisement Business : Introduction of new advertisement services ✓ Example of new ad business initiative with a major food manufacturer Spotlight Movie ”Must Buy” Campaign • Enables clients to create product promotion short movie • Customers can join “Must Buy Campaign” by using receipt of applic
Slide 22: Local Information Business: Deepening collaboration with local governments
Local Information Business : Deepening collaboration with local governments ✓ “Congestion Lamp” has been adopted by 220 local governments (# of local governments’ facilities and stores: 383) ✓ Working with local governments to promote digitalization of local stores and facilities # of Adopting Local
Slide 23: Collaboration with Tokyo Government
Collaboration with Tokyo Government ✓ Tokyo Government appointed Locoguide as a partner of its working group to reduce crowdedness in Tokyo area under Covid-19 pandemic ✓ Locoguide provides each store and facility`s crowdedness data to be reflected on the map App Preliminary initiative of the workin
Slide 24: Local Information Business: Revenue Increase through Diversification of Local Business
Local Information Business : Revenue Increase through Diversification of Local Business ✓ Additional revenue stream has been achieved in collaboration with local governments ✓ Continuing support for digital transformation of local communities Revenue of Other Businesses(Last 9 Months)* Initiative fo
Slide 25: Accelerating Changes: From Paper to Digital, From Far to Near
Accelerating Changes From Paper to Digital Social changes are our business opportunities and From Far to Near we create new services “To Deliver Smarter, More Enjoyable, and Safer Way of Living the Local Community Life” From Contact to Contact- Less © 2021 Locoguide Inc. All Rights Reserved. 24
Slide 26: Disclaimer
Disclaimer Important notes This document contains forward-looking statements. These forward-looking statements are based only on the information made available to Locoguide as of the date this document were prepared. These statements are not guarantees of future results and involve risks and uncerta