Makuake, Inc. · TSE:4479
Makuake — Q1 FY2024/9 Earnings Presentation
42 slides from Makuake's earnings presentation, Jan 30, 2024
Slide 1: Financial Results Briefing Materials for Q1 FY2024/9
Makuake Financial Results Briefing Materials for Q1 FY2024/9 (fiscal year ending September 30, 2024) Makuake, Inc. Securities code: 4479
Slide 2: Financial Results
Financial Results
Slide 3: Overview of Q1 FY2024/9
Overview of Q1 FY2024/9 Results Both the gross amount of "support" pre-orders (GMV) and net sales came in line with the plan Gross profit margin temporarily decreased due to a lesser effectiveness of web advertising at year-end, influenced by Black Friday campaigns run by various e-commerce companie
Slide 4: Gross Amount of "Support" Pre-orders (GMV), Quarterly
Gross Amount of “Support” Pre-orders (GMV)*, Quarterly + Despite the ongoing trend of experience-centric offline consumption and various e-commerce businesses extending Black Friday for longer than in a typical year, our focus on initiatives for repeat project owners and repeat project supporters re
Slide 5: Net Sales and Take Rate
Net Sales and Take Rate + Net sales, driven primarily by Makuake, advertising distribution agency services, and MIS (Makuake Incubation Studio), posted a 13.4% YoY increase. With the rise in sales of related services, take rate also increased by 1.2 percentage points YoY (Unit: JPY million) 9 —e~ To
Slide 6: Gross Profit and Gross Profit Margin
Gross Profit and Gross Profit Margin + While gross profit increased by 4.2% YoY, the effectiveness of web advertising declined somewhat due to the year-end external environment, and costs in related services rose, leading to a 6.6 percentage point decrease in the gross profit margin compared to the
Slide 7: Selling, General and Administrative Expenses
Selling, General and Administrative Expenses + While maintaining their contribution to GMV growth, we downsized advertising expenses and, at the same time, were able to significantly cut personnel costs. Although there was a slight increase in other expenses, such as those for a general meeting of s
Slide 8: Operating Profit (Loss) and Operating Profit Margin Relative to GMV
Operating Profit (Loss) and Operating Profit Margin Relative to GMV + Thanks to increased net sales and reduced SG&A expenses, operating loss significantly narrowed to JPY 16 million (Unit: JPY million) —@— Operating profit margin relative to GMV HE Operating profit 1oss) ads limited to localities 1
Slide 9: Progress of Key KPIs
Progress of Key KPIs + We aimed at enhancing the quality of each project and focused on increasing the monthly project unit value rather than the number of active projects during the month. Asa result, the monthly project unit value continued to rise, driving the growth of the monthly GMV For the qu
Slide 10: Other KPIs
Other KPls + The overall number of published projects and the number of published projects by repeat project owners declined as we focused on increasing the monthly project unit value and because of external environmental factors, such as the weaker yen. On the other hand, the amount of repeat "supp
Slide 11: Other KPIs
Other KPls + Access UUs (unique users) continued to decline, impacted by the ongoing trend of experience-centric offline consumption, as well as Black Friday extending for longer than in a typical year for various e-commerce businesses. Consequently, while our membership count increased, its growth
Slide 12: Number of Published Projects and Employee Count
Number of Published Projects and Employee Count + There were no significant changes in the number of curators and personnel in screening, monitoring, and legal roles, and we maintain a structure capable of accommodating a future increase in the number of published projects. Additionally, with our fo
Slide 13: TOPICS
TOPICS Launched "Makuake-Recommended Project Owner" Program Increasing Number of UUs for "Support" Pre-order 'Makuake#2 2774 | TOV IL hte + Following our internal criteria, we award the "Makuake- Recommended Project Owner" certification every six months to project owners based on their performance i
Slide 14: Major Projects Launched in Q1 FY2024/9 (Small and Medium-Sized Enterprises)
Major Projects Launched in Q1 FY2024/9 (Small and Medium-Sized Enterprises) + Projects featuring gadgets that enhance quality of life and those addressing areas where users have strong preferences were highly popular PLAUD NOTE oa : fe 75n0E HEE Aue4 x0 DSINOX ao Be ee PLAUO NOTE ChaiGPTIBIRAL-¢2L—8
Slide 15: Major Projects Launched in Q1 FY2024/9 (Large Companies)
Major Projects Launched in Q1 FY2024/9 (Large Companies) + We witnessed continued publication of projects that struck a good balance between new products leveraging the brand power of large companies and new products aspiring to enter new genres by utilizing technology from in-house research and dev
Slide 16: SDGs-Related Projects Launched in Q1 2024/9
SDGs-Related Projects Launched in Q1 2024/9 + While "upcycled" products utilizing raw materials that would otherwise be discarded remained prevalent, there were also products ingeniously designed to avoid harming nature and experience-centric projects 1,085. 78 ommare ght © Makuake, Inc. All Rights
Slide 17: FY2024/9 Forecasts and Progress Report
FY2024/9 Forecasts and Progress Report
Slide 18: FY2024/9 Financial Forecasts
FY2024/9 Financial 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 ae a FY2023/9 FY2024/9 (Unit: JPY million) Results Change Percent Change Gross Amount of “Support” Pre-orders: GMV 1,235 7.0 (Taxi
Slide 19: Growth Strategy for FY2024/9
Growth Strategy for FY2024/9 + We aim to boost the project unit value by promoting the creation of high-quality projects by repeat project owners and growing the number of active projects, as well as improving project supporter retention through the accumulation of project supporter fans by project
Slide 20: Progress Toward FY2024/9 Financial Forecasts
Progress Toward FY2024/9 Financial Forecasts + GMV and net sales came in line with the quarterly plan, achieving progress rates of 24.4% and 26.2%, respectively, against the full-year plan (Unit: JPY million) Gross Amount of “Support” Pre-orders: GMV (Tax included) Net Sales Operating Profit (Loss)
Slide 21: Specific Initiatives Implemented in Q1 FY2024/9
Specific Initiatives Implemented in Q1 FY2024/9 + During Q1, we increased the monthly project unit value by strengthening support for project owners to maximize GMV on the first day of project publication. Simultaneously, we implemented CRM initiatives, such as distributing coupons tailored to proje
Slide 22: Medium-Term Management Plan (FY2023/9-FY2025/9)
Medium-Term Management Plan (FY2023/9-FY2025/9) 22
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: 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 project supporters. These components can grow in an accelerated manner through our initiatives to win repeat bus
Slide 25: Medium-Term KPI Targets
Medium-Term KPI Targets + For Q4 FY2025/9, we aim to reach 1,643 active projects during the month, a monthly project unit value of JPY 1.15 million, and a GMV of JPY 21.5 billion (minimum target) Monthly Project Unit Value for the Quarter Full-year GMV Q4 FY2025/9 Q4 FY2025/9 FY2025/9 No. of Active
Slide 26: 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 27: Implementation Phases for Key Initiatives to Achieve Medium-Term KPI Targets
Implementation Phases for Key Initiatives to Achieve Medium-Term KPI Targets and Operating Profit Margin + 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 FY2024/9. From the second half of the same y
Slide 28: Growth Vision for New GMV Target
Growth Vision for New GMV Target + We will 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 through the promot
Slide 29: Appendix
Appendix
Slide 30: 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 31: 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 32: 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 = eee 2 -e=- pre-orders 20% Businesses commission Consume
Slide 33: 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 34: 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 35: Financial Results Summary: YoY
Financial Results Summary: YoY (Unit: JPY million) Gross Amount of “Support” Pre-orders: GMV (Tax included) Net Sales Gross Profit Operating Profit (Loss) Ordinary Profit (Loss) Net Income (Loss) ake, Inc. All Rights Reserved FY2023/9 Ql 4,251 908 744 (186) (183) (185) Change YoY 340 121 31 169 167
Slide 36: Financial Results Summary: QoQ (Standalone Quarter)
Financial Results Summary: QoQ (Standalone Quarter) a FY2023/9 (Unit: JPY million) 04 (standalone) Gross Amount of “Support” Pre-orders: GMV 4,679 (Taxincluded) Net Sales 1,030 Gross Profit 813 Operating Profit (Loss) (29) Ordinary Profit (Loss) (28) Net Income (Loss) (28) akuake, Inc. All Rights Re
Slide 37: KPIs: YoY
KPls: YoY FY2023/9 P Change Ql YoY No. of Published Projects 2,087 a T99 (288) Noam oi 1.2116 | iors) (46) Project Ownerceat Rate 53.5 59.5, . rn pea 3,224 | 8s) 346 a - | No. of Access Unique Users 12,279,539 10,176,889 (2,102,650) No. of Members 2,362,033 2,684,736 322,703 No. of “Support” Pre-ord
Slide 38: KPIs: QoQ (Standalone Quarter)
KPls: QoQ (Standalone Quarter) FY2023/9 Q4 (standalone) No. of Published Projects 1,951 Neepeat Project Owners 1,088 Project Ownerceat Rate 55.8 preorders UPY milion) 3,561 Repeat “Puppeaes order 16.1 No. of Access Unique Users 11,387,444 No. of Members 2,610,875 No. of “Support” Pre-orders 399,462
Slide 39: Dividend Policy
Dividend Policy jakuake, Inc 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 sharehol
Slide 40: 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 January 30, 2024 and certain assumptions deemed reasonable by Makuake, Inc., it may change due to shifts in business environment
Slide 41: IR Inquiries
Copyright € nc All Rights Reserved IR Inquiries IR@makuake.co.jp 41
Slide 42: Makuake
@® Makuake