Makuake, Inc. · TSE:4479
Makuake — Q3 FY2023/9 Earnings Presentation
42 slides from Makuake's earnings presentation, Jul 25, 2023
Slide 1: Financial Results Briefing Materials for Q3 FY2023/9
Securities code: 4479 Makuake Financial Results Briefing Materials for Q3 FY2023/9 Makuake, Inc.
Slide 2: Financial Results
Financial Results
Slide 3: Overview of Q3 FY2023/9
Overview of Q3 FY2023/9 As the creation of the framework for a repeatable customer experience started to yield results, GMV (gross amount of "support" pre-orders) and net sales came in largely in line with the plan While the gross profit margin finished at 79.0% on higher software depreciation charg
Slide 4: Gross Amount of "Support" Pre-orders (GMV), Quarterly
Gross Amount of "Support" Pre-orders (GMV), Quarterly + While we experienced a downward pressure on GMV due to travel demand during Golden Week, GMV increased by 11.2% QoQ as a result of increased repeat use by project owners and project supporters thanks to the establishment of a framework for proj
Slide 5: Net Sales and Take Rate
Net Sales and Take Rate + Net sales increased by 12.5% QoQ. This was driven not only by the increase in Makuake's net sales in line with the growth of GMV but also by the rise in advertising agency sales and sales from MIS services. Furthermore, the growth in related services outside of Makuake cont
Slide 6: Gross Profit and Gross Profit Margin
Gross Profit and Gross Profit Margin + While the gross profit increased by 9.0% compared to the previous quarter, the gross profit margin decreased by 2.5 pt to 79.0%. This was due to an increase in software amortization expenses; we had no significant changes in our business structure (Unit: JPY mi
Slide 7: Selling, General and Administrative Expenses
Selling, General and Administrative Expenses + By strictly adhering to our internal ROI criteria for all SG&A expenses with the exception of payment (transaction) fees directly linked to GMV, we were able to increase GMV while keeping the SG&A expenses below the planned amount (Unit: JPY million) TV
Slide 8: Operating Profit (Loss) and Operating Margin Relative to GMV
Operating Profit (Loss) and Operating Margin Relative to GMV * Operating loss has shrunk by JPY 110 million from the previous quarter as we succeeded in containing SG&As below the planned amount (Unit: JPY million) TV commercials TV commercials TVads limited to 6.3% aired aired localities Increased
Slide 9: Key Performance Indicators: Published Projects by Repeat Owners and Repeat Pre-orders
Key Performance Indicators: Number of Published Projects by Repeat Project Owners and Amount of Repeat "Support" Pre-orders + The number of published projects by repeat project owners increased by 13.6% QoQ thanks to the establishment and rollout of a support program based on project owners' repeat
Slide 10: Other Indicators
Other Indicators + With the impact of the shift of consumer spending to offline due to economic reopening showing signs of waning, access UUs showed a marginal decline from the previous quarter. Furthermore, the increase in attractive projects and various CRM initiatives have led to a continuous ris
Slide 11: Number of Published Projects and Employee Count
Number of Published Projects and Employee Count + Our staffing levels were unchanged despite the increase in the number of published projects as we have a sufficient number of curators and screening/monitoring personnel. On the other hand, we are planning to hire an appropriate number of staff for d
Slide 12: Organizational Structure That Addresses Each Factor Contributing to GMV Creation
Organizational Structure That Addresses Each Factor Contributing to Makuake's GMV Creation + While the factors addressed by each department differ depending on whether it's the project owners' side or the project supporters' side, the improvement of NPI (Next Purchase Intention), which is key to rep
Slide 13: Major Projects Launched in Q3 FY2023/9
Major Projects Launched in Q3 FY2023/9 * Gadget-related projects that use China as their production base have increased, with numerous projects generating sales in excess of JPY 10 million. In addition, we saw a rising trend in the number of projects that provide experiences, primarily in the food a
Slide 14: Major Projects Launched in Q3 FY2023/9 (Large Companies)
Major Projects Launched in Q3 FY2023/9 (Large Companies) + In Q3, we saw a continued trend of repeat use of R&D and technologies possessed by major companies to venture into new areas. Makuake, as a platform, has been proven effective for test marketing and acquiring initial customers, and our popul
Slide 15: SDGs-Related Projects Launched in Q3 FY2023/9
SDGs-Related Projects Launched in Q3 FY2023/9 + Numerous products have been transformed into entirely new items through processing previously-discarded materials with special techniques that embody business efforts of environmentally-conscious project owners 2 a ee a OUTER) HOR OMe eOMAR EET Hakama
Slide 16: TOPICS
TOPICS Copyright € Opening of Yodobashi Camera’s Inaugural "Makuake Shop" upport for Project Ow! SFREn*F ‘worw.yedobathicom ® Makuake Special areas/sections were set up in Yodobashi Camera's Akihabara and Umeda stores, as well as on its EC site, to sell popular products launched on Makuake By exhibi
Slide 17: TOPICS
TOPICS Copyright € Held "Makuake makers networking day" to Commemorate 2nd Anniversary of Our Korean Branch Acquisition of project owners To celebrate the 2nd anniversary of the Korean branch establishment, we held a "Makuakemakers networking day" event for project owners in Seoul, South Korea, on J
Slide 18: TOPICS
TOPICS Real Shopping Event “Makuake Mirai Marche” to Be Held from September 23 (Sat) to September 24 (Sun) In Ebisu, Tokyo w ; HAT SA, BomDeas Be Budo. wiz l © Makuake 9/23 ep 9/249 9 EBIS303 a4 This shopping event, where one can experience and purchase unique products launched on Makuake while dire
Slide 19: Medium-Term Business Plan (FY2023/9-FY2025/9)
Medium-Term Business Plan (FY2023/9-FY2025/9)
Slide 20: 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 Addressable Total Market
Slide 21: Factor Analysis of Makuake Service Structure to Achieve Medium-Term 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 22: Medium-Term KPI Targets
Medium-Term KPI Targets + We aim to achieve a GMV of JPY 30 billion (mid-range target) by September 2025 by increasing the number of active projects to 2,200 per month and raising the project unit value to JPY 1.46 million No. of acti j ri : : o° acne Proven during > Monthly project unit value Full-
Slide 23: 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 24: Implementation Phases for Key Initiatives
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 September 2024. From the second half of the
Slide 25: Growth Strategy for the 2nd Half of FY2023/9
Growth Strategy for the 2nd Half of FY2023/9 + We aim to achieve our annual GMV target of JPY 18 billion--while securing a stable revenue base--by expanding our repeat customer base through initiatives targeted at project owners with growth potential and highly-loyal members within our membership se
Slide 26: Progress Towards Medium-Term KPI Targets
Progress Towards Medium-Term KPI Targets + The number of active projects increased as we implemented visualization of project supporters' evaluations and improvements to our operational systems for project owners. Furthermore, the project unit value rose thanks to the strengthening of our 1st-day GM
Slide 27: FY2023/9 Full-Year Forecasts
FY2023/9 Full-Year Forecasts + Net sales and operating loss, as well as the gross amount of "support" pre-orders, came in largely in line with the plan through Q3 of this fiscal year. As of now, there are no changes to our FY2023/9 (Unit: JPY million) Gross Amount of “Support” Pre-orders: GMV (Tax i
Slide 28: Appendix
Appendix
Slide 29: 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 30: 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 31: 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 = eee 2 -e=- Pre-orders 20% Businesses commission Consu
Slide 32: Value Provided by Makuake: Businesses
Value Provided by Makuake: Businesses + We not only help businesses avoid 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 fa
Slide 33: 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 34: Business Results Summary: YoY, cumulative through Q3
Business Results Summary: YoY, cumulative through Q3 (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) akuake, Inc. All Rights Reserved FY2022/9 Q1-3 15,639 3,326 2,675 (89) (66) Change
Slide 35: Business Results Summary: YoY, standalone quarter
Business Results Summary: YoY, standalone quarter . . FY2022/9 Change Percent Change {Unit: JPY million) Q3 (standalone) Yor" YoY 8 Gross Amount of “Support” Pre-orders: GMV 5,245 (676) (12.9) (Tax included) Net Sales 1,083 (92) (8.6) Gross Profit 885 (102) (11.6) Operating Profit (Loss) (71) (9) -
Slide 36: Business Results Summary: QoQ, standalone quarter
Business Results Summary: QoQ, standalone quarter FY2023/9 (Unit: JPY million) Q2 (standalone) Gross Amount of “Support” Pre-orders: GMv 4,108 (Tax included) Net Sales 880 Gross Profit 718 Operating Profit (Loss) (192) Ordinary Profit (Loss) (190) Net Income (Loss) (193) c. All Rights Reserved Chang
Slide 37: KPIs: YoY, standalone quarter
KPIs: YoY, standalone quarter FY2022/9 ee Change Percent Change Q3 (standalone) YoY YoY No. of New Projects 2,044 98 (126) (6.2) to. of rls by 1,061 |{) ess) 24 23 Project Owners Repeat Rate 51.9 58.6 - 4Tpt srgunl ena Suppor 4,053 | 8) (644 as) No. of Access Unique Users 13,880,515 11,806,705. (2,0
Slide 38: KPIs: QoQ, standalone quarter
KPls: QoQ, standalone quarter FY2023/9 Q2 (standalone) No. of New Projects 1,732 poctnonprose ty 955 Project wwe Rate 55.1 wrecorders UPY milion) 3,130 Repeat Sea Pre-order 16.2 No. of Access Unique Users 11,827,059 No. of Members 2,441,236 No. of “Support” Pre-orders 362,007 Change 278 (20,354) 85,
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 July 25, 2023 and certain assumptions deemed reasonable by Makuake, Inc., it may change due to shifts in business environment and
Slide 41: IR Inquiries
Copyright € nc All Rights Reserved IR Inquiries IR@makuake.co.jp 41
Slide 42: Makuake
@® Makuake