Smaregi, Inc. · TSE:4431
Smaregi — Q1 FY4/22 Earnings Presentation
36 slides from Smaregi's earnings presentation, September 2021
Slide 1: 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 (17th Period) May 1 – July 31, 2021 Smaregi, Inc. Securities code: 4431
Slide 2: Contents
Contents 2 P3 Impact of COVID-19 P4 1Q FY4/22 Financial Summary P16 Business Summary P25 Progress of Medium-term Management Plan P29 Medium-term Management Plan P31 Appendix
Slide 3: Impact of COVID-19
Impact of COVID-19 3 Fourth state of emergency declared in Japan in July 2021, but the negative effect of every declaration has been smaller than the previous one Effect on Number of Transactions Effect on Number of Meetings with Prospective Customers Economic activity was restricted during declarat
Slide 4: 1Q FY4/22 Financial Summary
4 1Q FY4/22 Financial Summary May 1 – July 31, 2021
Slide 5: Highlights
1Q FY4/22 Financial Highlights 5 • Although the shortage of automatic change machines had a negative effect, first quarter sales increased 28.7% from one year earlier to ¥920 million. Measures are under way to end this shortage. • Operating profit increased 67.4% from one year earlier to ¥230 millio
Slide 6: Financial Highlights
Financial Highlights 1Q FY4/22 Financial Summary 6 Sales increased 28.7% and operating profit increased 67.4% despite the negative effect of the shortage of automatic change machines, which is expected to end in the second quarter. The operating margin is expected to decrease in FY4/22 because of sa
Slide 7: Balance Sheet
Balance Sheet 1Q FY4/22 Financial Summary 7 Accounts receivable-trade increased due to the steady growth of subscription sales (monthly fees for cloud services). Net assets increased 5.1% from one year earlier. 1Q FY4/22 1Q FY4/21 YoY 4Q FY4/21 QoQ (Millions of yen) (May - Jul. 2021) (May - Jul. 202
Slide 8: Statement of Income
Statement of Income 1Q FY4/22 Financial Summary 8 Due to seasonal factors occurring every year, sales and the cost of sales were lower than in the previous quarter. SG&A expenses increased because of higher personnel and advertising expenses. FY4/21 FY4/22 (May 2020 – Apr. 2021) (May 2021 – Apr. 202
Slide 9: Changes in Net Sales, Operating Profit and Operating Margin
Changes in Net Sales, 1Q FY4/22 Financial Summary 9 Operating Profit and Operating Margin First quarter performance was generally as planned. Sales were 23.0% of the fiscal year forecast and operating profit was 39.1% of the forecast. (Millions of yen) Operating margin Net sales Operating profit 4,0
Slide 10: Quarterly Changes in Net Sales, Operating Profit and Operating Margin
Quarterly Changes in Net Sales, 1Q FY4/22 Financial Summary 10 Operating Profit and Operating Margin The quarterly operating margin remained above 20% but is expected to decrease during the remainder of the fiscal year because of sales and marketing expenditures in accordance with the medium-term ma
Slide 11: Changes in Sales Composition
Changes in Sales Composition 1Q 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 25.2% higher than one year earlier. (Millions of yen) Monthly fees for cloud servic
Slide 12: Annual Recurring Revenue (Subscription Sales)
Annual Recurring Revenue (Subscription Sales) 1Q FY4/22 Financial Summary 12 The number of fee-paying stores is increasing even during the COVID-19 crisis. ARR increased 25.9% from one year earlier. ARR at end of quarter*2 ARR (Millions of yen) YoY 2,500 +25.9% QoQ +4.4% ¥2.16 billion *1 2,000 1,500
Slide 13: Analysis of Changes in Operating Profit (YoY)
Analysis of Changes in Operating Profit (YoY) 1Q FY4/22 Financial Summary 13 (Millions of yen) 204 (69) Higher Higher sales cost of Higher sales sales • Number of fee-based contracts increased • Growth of consistent sales (monthly fees) due to low churn rate (20) Personnel (1) expenses Logistics (38
Slide 14: Quarterly Changes in SG&A Expenses
Quarterly Changes in SG&A Expenses 1Q FY4/22 Financial Summary 14 SG&A expenses increased to 38.2% of sales because of substantial expenditures for recruiting and advertising. (Millions of yen) SG&A expense ratio Others Depreciation Rent Advertising expenses Logistics cost Personnel expenses 500 60%
Slide 15: Growth in Number of Employees
Growth in Number of Employees 1Q FY4/22 Financial Summary 15 The number of employees decreased in FY4/21 because of restrictions on recruiting activities due to the pandemic. Extensive recruiting activities during FY4/22 are expected to increase the number of employees as Smaregi continuously looks
Slide 16: Business Summary
16 Business Summary
Slide 17: 1Q FY4/22 Topics
1Q FY4/22 Topics Business Summary 17 Jul. 2021 • Business sites registered for Smaregi Time Card surpass 100,000 • Release of the Akinai LABO owned media • Launch of the Smaregi Research Institute, which utilizes sales data of 98,000 stores • Shareholders meeting for the fiscal year ended April 2021
Slide 18: Smaregi 4 Progress
Smaregi 4 Progress Business Summary 18 48.1% increase in the number of official Smaregi apps from the previous quarter! The number of app development partners continues to increase too. Aiming for to further energize the Smaregi App Market by increasing websites with information about apps and make
Slide 19: Composition of Plan Categories with Fees
Composition of Plan Categories with Fees Business Summary 19 Smaregi continued to sign up new stores even during the prolonged COVID-19 crisis. As a result, the number of registered stores surpassed 100,000. The share of fee-paying registered stores increased 1.6 pct. points from one year earlier to
Slide 20: Share of Active Stores (Including Stores Paying No Fee)
Share of Active Stores (Including Stores Paying No Fee) Business Summary 20 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 2.0 pct. points from one year earlier to 26.1%. Number of Act
Slide 21: Composition of Plan Categories with Fees
Composition of Plan Categories with Fees Business Summary 21 The operations of stores in Japan were restricted by states of emergency and other measures in response to the pandemic. Despite this challenging business climate, there were net increases almost at the same rates in all plan categories an
Slide 22: Churn Rate
Churn Rate Business Summary 22 The 1Q FY4/22 average churn rate fell to a new all-time low of 0.54%! The low rate even during the COVID-19 crisis is the result of continuous measures to improve the customer experience (better customer services and other actions). 5% Churn rate* Churn rate* Churn rat
Slide 23: Average Revenue per Account and User (ARPA/ARPU)
Average Revenue per Account and User (ARPA/ARPU) Business Summary 23 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 24: Monthly Fees by Quarter of Start of Services
Monthly Fees by Quarter of Start of Services Business Summary 24 Consistent and steady 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 25: Progress of Medium-term Management Plan
25 Progress of Medium-term Management Plan
Slide 26: Four Key Activities
Four Key Activities Progress of Medium-term Management Plan 26 Emphasis on Advertising/Marketing App Market Strategy Large advertising/marketing expenditures to raise Build an ecosystem by creating a brand awareness and attract customers faster large app market Brand awareness/ Improve the customer
Slide 27: Activities to Accomplish Goals of the Medium-term Management Plan
Activities to Accomplish Goals of Progress of Medium-term Management Plan 27 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 28: ARR Growth
ARR Growth Progress of Medium-term Management Plan 28 ARR in the first 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 2Q plan 3,670 5,000 1Q result 2,000 1Q plan 2,168 2,077 0
Slide 29: Medium-term Management Plan
29 Medium-term Management Plan
Slide 30: Celebrating our 10th anniversary. Looking ahead to more growth in the next 10 years!
Medium-term Management Plan 30 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 31: Appendix: About Smaregi
31 Appendix About Smaregi
Slide 32: Business Profile
Business Profile Appendix 32 High-performance cloud-based POS systems Ticket vending machines Smaregi provides platform for performing Analysis of many tasks chiefly involving the unitization Sales of cash registers statistics of sales (POS ) data. Its innovative cloud- based POS systems have capabi
Slide 33: The Smaregi Marketing Strategy
The Smaregi Marketing Strategy Appendix 33 Our goal is a 38% share of the targeted 770,000 stores 14% of The POS system market will remain competitive rather than dominated the market Big businesses in Japan by a single company because a company that monopolizes this market (at least 40 stores) woul
Slide 34: IR Newsletter Smaregi IR LINE
Use these links for the latest IR news and Appendix 34 other Smaregi announcements! IR Newsletter Smaregi IR LINE Your fastest source of IR news! Add friends here!
Slide 35: 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 36: 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.