ココナラ（4176） – FY2022.8 First Quarter Financial Results

FY2022.8 First QuarterFinancial Resultscoconala Inc. (TSE Mothers Code: 4176)101Company introduction2Our Vision and MissionCreate a world where each person lives their “own story.”VisionMissionProvide a platform to empower individuals by making their knowledge, skills and experiences visible and connecting them to those who need them3Service LineupAn EC-type service (skills) marketplace. You can search and purchase from 500,000 listings and complete everything online, from order communication to delivery.A new service focused on purchases for business purposes (released in August 2021). Offers a curation of carefully selected services, invoice payment, convenient project management features for team anddepartment use, concierge services, and so on.coconala Legal ConsultationA web service that connects users who are tackling legal problems with lawyers. You can browse and post legal Q&As for free, and search and inquire about 3,000 lawyers by field or region. (Advertising revenue model)4Features of the coconalaMatching platform that commercializes knowledge, skills and experiences then enables users to sell and buy those like “e-commerce”5Category Listcoconala can cover all kinds of issues and concerns of users with 15 main categories and more than 450 subcategoriesCreative & BusinessConsultation & Private602Financials and KPIs7FY2022 First Quarter (Sep. – Nov.) Financial HighlightsGMVOperating Revenue2,947MM JPY / YoY +36%880MM JPY / YoY +44%Operating Profit-227MM JPY /Loss due to TVCM investmentRegistered Users2.62million8FY2022 First Quarter (Sep. – Nov.) Financial Highlights1. Continued high growth in both GMV (+36% YoY) and operating revenue (+44% YoY) due to the investment in TVCM from Aug. to Oct. 2021.The impact of TVCM from Aug. to Oct. 2021 was in line with expectations. The direct ROI impact during the TVCM broadcast period was at a record high and off to a good start.Increased business use, particularly among small and medium-sized enterprises, contributing to an increase in number of unique buyers as well as purchase amounts per buyer.4. Operating loss due to the TVCM investment. (Plan to continue investing)Legal Consultation showed a high growth of +137% YoY in operating revenue.The impact of adopting the new revenue recognition standard was marginal. 2.3.5.6.9Company-wide10Company-wideOperating RevenueCompany-wide Operating Revenue*1 showed continuous high growth, +44% YoY. (Exceeded Q4 FY2021 YoY growth of +39%)Legal Consultationcoconala(Unit : MM JPY)377163952044425360375418610346344655030520575588+44%+44%725587666888081666697798Q1Q2Q3Q4Q1Q2Q3Q4Q1*1: The figures in this page of the presentation reflect the new revenue recognition standard retroactively from FY2020 to FY2021 for comparison purposes, which differ from the disclosed figures in the financial reports11FY2020FY2021FY2022coconala12coconalaGMV, Operating Revenue and Take RateTake Rate rose to 27.2%. GMV grew +35% YoY, then operating revenues*1 grew +39%Take Rate (%)26.526.726.026.626.526.426.526.327.2GMVOperating Revenue(Unit : MM JPY)1,3581,4041,9581,6092,1702,22935(cid:6)(cid:12)+35%2,5192,6572,937360375418520575588666697798Q1Q2Q3Q4Q1Q2Q3Q4Q1*1: The figures in this page of the presentation reflect the new revenue recognition standard retroactively from FY2020 to FY2021 for comparison purposes, which differ from the disclosed figures in the financial reports13FY2020FY2021FY2022coconalaMajor KPIsQuarterly Buyer Side KPI(cid:59054)(cid:59055)Both number of unique buyers and purchase amount per buyer shows steady growthUnique BuyersUnit : person(cid:59055)(cid:59054)Purchase Amount per BuyerUnit : JPY(cid:59054)(cid:59055)+25%(cid:12)(cid:19)(cid:22)(cid:6)127,070131,430141,338107,988112,744117,80995,05116,45816,88316,93218,14019,24718,924+8%(cid:12)(cid:25)(cid:6)19,82620,22020,786GMV82,55483,180Q1Q2Q3Q4Q1Q2Q3Q4Q1Q1Q2Q3Q4Q1Q2Q3Q4Q1FY2020FY2021FY2022FY2020FY2021FY202214coconalaby(cid:40)(cid:46)(cid:55)(cid:1)(cid:36)(cid:66)(cid:85)(cid:70)(cid:72)(cid:80)(cid:83)(cid:90)Creative & Business category drove GMV*1 growth with +48% YoY. (Consultation & Private: +20% YoY)+48%+48%1,4951,5501,754Creative & BusinessConsultation & Private(UnitMM JPY)(cid:59072)6696896987058477611,1841,2721,0159439859571,0231,1071,183Q1Q2Q3Q4Q1Q2Q3Q4Q1FY2020*1: Retrospective correction due to partial category revisionFY2021FY202215Legal Consultation16Legal ConsultationOperating RevenueLegal Consultation’s operating revenue substantially grew +137% YoY(UnitMM JPY)(cid:59072)+137%+138%81685830344616Q120Q225Q3FY2020FY2021FY2022*1: No impact on Legal Consultation by the adoption of the new revenue recognition standard17Q4Q1Q2Q3Q4Q1Legal ConsultationMajor KPIs (1/2)The number of the paid subscribing lawyers grew +105% YoYRegistered Lawyers(Unit : person)Paid Subscribing Lawyers(Unit : person)+63%+63%3,1182,7702,431+105%+105%8357326332,1421,9161,5861,6671,4801,372514407357312265230Q1Q2Q3Q4Q1Q2Q3Q4Q1Q1Q2Q3Q4Q1Q2Q3Q4Q1FY2020FY2021FY2022FY2020FY2021FY202218Legal ConsultationMajor KPIs (2/2)The ARPPU*1 grew +15% YoY. The churn rate*2 was 5.9%, aiming to continue decreasing.(cid:34)(cid:51)(cid:49)(cid:49)(cid:54)Unit : JPY(cid:59055)(cid:59054)82,34084,902 84,32476,70873,093(cid:36)(cid:73)(cid:86)(cid:83)(cid:79)(cid:1)(cid:51)(cid:66)(cid:85)(cid:70))(Unit : (cid:59051)9.8+15%+15%92,580 94,06490,17797,2467.45.76.97.15.25.95.13.3Q1Q2Q3Q4Q1Q2Q3Q4Q1Q1Q2Q3Q4Q1Q2Q3Q4Q1FY2020FY2021FY2022FY2020FY2021FY2022*1: Average Revenue Per Paid User*2: Churn Rate = number of churn / number of paid subscribing lawyers who have reached contract renewal timing19Company-wide20Company-wideOperating ExpensesExcluding marketing expenses, operating expenses increased gradually. For the time being, we will continue to actively invest in marketing and personnel expensesMarketingOthersSettlement fees / SystemOutsourcingPersonnel / Recruiting(Unit : MM JPY)49191582148Q131326999183Q349313090159Q2FY202031890120201Q47266132234Q17360138247Q2375858298690172272Q32646017773278Q44108919972335Q1*1: The new revenue recognition standard is not retrospectively adopted to the figures in FY2020-FY2021 (The same as the figures disclosed in the financial reports.)21FY2021FY2022Company-wideRatio of Major Operating Expenses to Operating RevenueExcluding marketing expenses, we have controlled operating expenses in the almost constant ratioMarketingPersonnel / RecruitingSettlement fees / System(Unit : %)57.546.634.415.613.2 12.411.811.611.939.2 40.2 41.136.5 38.3 38.9 37.5 36.2 38.221.8 22.8 22.4 21.8 21.6 21.8 23.7 23.1 22.7Q1Q2Q3Q4Q1Q2Q3Q4Q1Q1Q2Q3Q4Q1Q2Q3Q4Q1Q1Q2Q3Q4Q1Q2Q3Q4Q1FY2020FY2021FY2022FY2020FY2021FY2022FY2020FY2021FY2022*1: The new revenue recognition standard is not retrospectively adopted to the figures in FY2020-FY2021 (The same as the figures disclosed in the financial reports.)22Company-wideMarketing Expenses Excluding TVCM Related ExpensesThe ratio of marketing expenses to operation revenue*1 (excluding TVCM related expenses) have been maintained at a constant level in the 10% rangeRatio of Marketing Expenses to Operation Revenue (Excluding TVCM related expenses)Unit : (cid:59054)(cid:59051)(cid:59055)13.212.415.612.811.811.611.911.811.5Marketing ExpensesUnit : MM JPY(cid:59054)(cid:59054)(cid:59055)Excluding TVCM(cid:59055)49Q149Q269Q37172738690100FY2020FY2021FY2022*1: The new revenue recognition standard is not retrospectively adopted to the figures in FY2020-FY2021 (The same as the figures disclosed in the financial reports.)23Q4Q1Q2Q3Q4Q1Company-wideAdjusted Operating Profit*1 Excluding TVCM Related ExpensesWe have maintained positive adjusted operating profit excluding TVCM expensesOperating ProfitUnit : MM JPY(cid:59054)(cid:59055)623529695747TVCM-207TVCMTVCMTVCM-85-227Adjusted Operating Profit(Excluding TVCM)Unit : MM JPY(cid:59054)(cid:59055)62Q135Q229Q3FY202040Q469Q157Q247Q38981Q4Q1FY2021FY2022*1: The new revenue recognition standard is not retrospectively adopted to the figures in FY2020-FY2021 (The same as the figures disclosed in the financial reports.)24Company-wideNumber of Employees by Job Category (Regular and Contract Employees)Since we do not have sales staff, only CS personnel will increase in proportion to sales. However, we will continue to invest in personnel for product development and to strengthen the company’s foundationCorporateMarketingCSProduct(Unit : person)72972135811272339891282445931492446103139255611617112662130221028136211031707415322103487Q1Q2Q3Q4Q1Q2Q3Q4Q1FY2020FY2021FY202225Company-wideProgress Against the Full-Year ForecastThe progress rate in operating revenue for the full year was 24%, exceeding our expectations. We will continue investing as planned based on our investment discipline. (Growth of Operating Revenue in Q1 was +44% YoY, exceeding the disclosed forecast range of +33% ~ +40%)Operating RevenueQ124%Operating ProfitNot available because of loss forecastSteady performance compared to plan as further growth is expected in Q2 and beyondWill continue investment as planed based on investment discipline©coconala Inc. All Rights Reserved.2603Business Highlights27coconala BusinessRelease of Team Viewing Function (Oct. 2021)(cid:1412)(cid:1413)Released a function that allows project members to share and view transaction detailsl Information sharing is completed within coconala Business, making it easier to promote transactions while collaborating within teams and departmentsl Purchase users can share the transaction details with other project membersl Will continue to implement measures to improve usability for business purpose users購⼊者から⾒たトークルームプロジェクトメンバーから⾒たトークルーム28coconalaExample of the Product Updates(cid:1412)(cid:1413)We have been continuously improving user experiences while listening to user feedbackNew Function(cid:1412)(cid:1413)Search SuggestionDisplay search suggestion to help users find the information they need more accurately when using keywords-search.Renewal(cid:1412)Real-Time Talk Room(cid:1413)Messages in talk rooms are updated on all devices without the need to reload.New Function(cid:1412)(cid:1413)Document IssuingUser can easily issue Forms required for business transactions such as quotation, purchase orders, delivery slips, invoices and receipts on the coconala Business site.Renewal(cid:1413)(cid:1412)New rule for publication of service evaluationEvaluation system is going to be more fair, by making the ratings of both buyers and sellers public at the same time.2904Growth Strategy30Potential for Expansion of the Skill-Sharing Marketin 2030(cid:59054)(cid:59055)Potential Accessible Market*118 T JPYPotential Serviceable Market (Service e-commerce Market)Current serviceable market size is about100 B JPYPotential serviceable market size in 2030 is about 960 B1.6 T JPY(cid:1424)E-commerce shift High case*2（in 2030）Base case（in 2030）Today*1: Market size of non-face-to-face services transaction between individuals/SMB and individuals/SMB that could be potentially shift to e-commerceForecast of e-commerce market size for non-face-to-face skill-sharing services surveyed and created by InfoCom Research Inc. in Sep. 2021*2: Regardless of who the skill-provider is, such as a company, sole proprietor, or individual, assume that the content and quality of the service can now be determined by looking at reviews on a single website or smartphone application, or that issues such as lack of recognition and concerns about safety regarding services provided by individuals have been resolved31(cid:40)(cid:46)(cid:55)(cid:1)(cid:80)(cid:71)(cid:1)(cid:68)(cid:80)(cid:68)(cid:80)(cid:79)(cid:66)(cid:77)(cid:66)(cid:74)(cid:79)(cid:1)(cid:19)(cid:17)(cid:19)(cid:18)Added Value of E-commerce Shift of the Skill-Sharing Marketcoconala aim to become a one-of-a-kind service e-commerce platform by replacing daily offline transactions on the web and make them more convenient 2021年ココナラ流通⾼32What We Want to Realize01Opportunity for Everyone For Business / For PrivateIndividual / Corporation••• Buyers / Sellers• Amateurs / Professionals02Free from ConstraintsTimePlaceEnvironment•••• AgeAkiyuki DesignDesigner for 10 years03Fair Trade• Visualization of information• Optimization of matching33Medium- to Long-Term VisionCreate a world where it is as natural to trade services (skills) online as it is to trade goods.Within 10 yearsA service marketplace that offers everything you needWithin 5 yearsMake the value of online skills matching take root in JapanWithin 3 yearsAchieve the highest number of skill trading matches in Japan2021• Product expansion• Marketing to communicate the value of online services34Expansion of the ProductFurther update the user experience by expanding product in five directions to encourage usageRefine a variety of communication methods, including text, phone, and videosConstantly expanding categories to meet all user needs including creation/consultation, business/privateExpansion of convenient payment methods for high-unit price or long-term projects as well as subscription purchases.In addition to direct purchase of services, enhance ”customized proposal”, ” public offering”, and ”blog & contents”Expand and strengthen new functions and support systems suitable for creative & business use35Investment Policies and Marketing Investment in FY2022Although we plan to implement aggressive marketing investment in FY2022, the adjusted operating profit will be maintained profitable••••Investment PoliciesMarketing investment in FY2022Maintaining Positive Adjusted Operating ProfitSince investment on TVCM can be stopped at any time and profits controlled, we will operate on a policy of maintaining positive adjusted operating profit after deduction of specific expenses for TVCM and other expenses (without deducting routine marketing expenses).since we will actively invest in human resources for product development, we will not pursue growth in adjusted operating profit for the short term, and our policy will be to maintain a constant surplus.In FY2022, we plan to implement marketing investment (TVCM + related promotions) on the same scale as in FY2019 (over 1 billion yen).As a result, a full-year loss will be recorded for FY2022, but adjusted operating profit will remain in the black• Operate both web ads and TV commercials within the specified payback period, taking into account unit economics (visualization of effectiveness and high-speed PDCA).3605Appendix37PL(Unit : MM JPY)FY2022 Q1(Sep. – Nov.)FY2021 Q1(Sep. – Nov.)Resultcoconala*1ResultYoYcoconalaLegal ConsultationGMV2,9472,9472,172+35.7%Operating Revenue880798612+43.6%Revenue / GMV29.9%27.1%28.2%+1.6ptOperating Expenses1,1071,018+103.9%Operating Profit-227-219Profit / Revenue-25.9%-27.5%-9.6%11.4%8189-7—–54369656572—-+466.8%Ordinary ProfitNet ProfitMarketing (cid:59054)Expenses(cid:59055)-227-227410—*1: Including coconala Meets38BSas of Nov. 30th, 2021(cid:59054)(cid:59055)Unit : MM JPY(cid:59054)(cid:59055)AssetsCash and DepositsAccounts receivableOthersTotal fixed assetsTotal assetsTotal current assetsAmountLiabilities & Net assetsAmount2,8972431973153,653Account payableAdvances receivedDeposit receivedOthersTotal liabilitiesCapital stock and Capital surplusRetained earningsOthersTotal net assetsTotal liabilities and Net assets211435795451,4871,4873,495-1,33442,1653,653Total current assets3,337Total current liabilities39FY2022 Financial Forecast(Unit : MM JPY)FY2021 ResultsFY2022 ForecastGrowthupper(cid:59054)(cid:59055)Operating Revenue2,7463,650 ~+33%~+40%(cid:59054)(cid:59055)Operating ProfitOrdinary ProfitNet Profit895941-1,290-1,290-1,292—40Company-wideNew Revenue Recognition Standard(Unit : MM JPY)FY2020Q1Q2Q3Q4Q2Q3Q4FY2021Q1Operating RevenueOld Standard(cid:1412)(cid:1412)(cid:1413)(cid:1413)Operating RevenueNew StandardGapNew Standard –Old Standard(cid:59054)(cid:59055)378397446553612637727769377395444550610634725766-1-1-1-2-2-2-2-241Company-wideFY2021 Full Year (Sep. – Aug.) Financial HighlightsGMV grew +52% YoY, operating revenue grew +55% YoY, then became profitable for the first time in the three fiscal yearsGMVOperating RevenueOperating Profit(Unit : MM JPY)+52%52%9,5996,3333,9401,1381,7751,2943852,62476641-784-1,038-80FY2017FY2018FY2019FY2020FY20212,7468942Management TeamFrom Nov. 2021, co-founder Shimmyo will become a fellow and retire from the board. Sato was newly appointed as an Outside Director to strengthen governance.Akiyuki Minami/ ChairpersonGraduated from Keio University and Saïd Business School (MBA) at Oxford University. Worked as an analyst at Sumitomo Banking Corporation (current Sumitomo Mitsui Banking Corporation), then oversaw corporate buyout at Advantage Partners Inc. Founded WelSelfInc.(current coconala Inc.) in January 2012.Kentaro Yadomi/ Full time AuditorCertified Public Accountant. After joining KPMG AZSA (now KPMG AZSA LLC), he was engaged in accounting audits based on Japanese GAAP, U.S. GAAP, and IFRS, as well as financial due diligence work related to domestic and international M&A and business restructuring support. Auditor of our company since March 2017.Ayumu Suzuki/ CEOYuka Hattori/ AuditorGraduated from Waseda University. Gained experience in product planning and sales as well as new business development in Ad-technology at Recruit Co., Ltd. Later worked in the overseas business planning division at Recruit Holdings Co., Ltd. and joined coconalaInc. in May 2016.After working at Recruit Co., Ltd. in human resources and business development, established Inclusion Japan Inc. which provides incubation services and became its representative director. Auditor of our company since August 2015.Atsushi Akaike/ Outside DirectorKazuki Ishihara / AuditorA partner of CVC, one of the world’s largest private equity investment firms with 26 offices around the world, and CEO of CVC Asia Pacific Japan K.K. Director of our company since August 2018.Lawyer/Patent Attorney. Engaged in all aspects of corporate legal affairs at Yahoo Japan Corporation. After working at a law firm, he established Seven Rich Law Office, which specializes in the field of IT ventures, and became its representative attorney. Auditor of our company since June 2017.Yuki Sato/ Outside DirectorA partner of So & Sato Law Offices from Jan. 2019, after working at the Tokyo office of a global law firm as a partner . Experienced various support in finance, fund and Artificial Intelligence industries. Director of our company since November 2021. 43Thoughts Behind Preventing DisintermediationProductAll communication is designed to be carried out on coconala (text-based chats, video chats, phone calls)Users will try to avoid the risk of their account being halted and no longer being able to generate salesUsers will try to avoid the risk of payment/delivery issues that might occur with external transactionsUsers expect to be able to accumulate a track record, such as number of transactions and reviews.OperationUsing machine learning and other tools, having created a system to detect communications that show an intention to cut out the intermediaryIf detected, send a warning to the relevant individuals. Have organized a special team who will suspend the accounts of repeat offenders. ••••••2021年ココナラ流通⾼44Thoughts Behind Barrier to Entry• With a track record of over 9 years, we have an overwhelming number of services and reviews compared to competitors.Japanese Major CompaniesBuyers tend to buy from businesses offering more services, so even if competitors run offers like “no service charge,” it will probably do little to attract buyers.Since sellers cannot transfer their own reviews to other platforms, it’s likely that they have little reason to move to a new platform.Overseas CompetitorsSince only a few Japanese can use services in a full English environment, it’s possible that they’ll find that using overseas services will be cumbersome unless competitors are localized properly.• Different cultures have different expectations towards service quality, so it’s possible that Japanese users will not want to buy overseas services in the same way. •••2021年ココナラ流通⾼45Thoughts Behind the Take RateThe take rate is unlikely to be impacted as there are no major competitors.• Competitors exist for phone-based consultations, but coconala’s fee (approx. 50%) is lower Thoughts behind the Take Ratethan theirs. Until now, we’ve never carried out any marketing to attract sellers, and seller retention rate is high, meaning that the take rate is probably not an issue. •••Potential Measures to raise the Take Rate further Increase revenue from ways other than service charge by offering fee-based services to sellers, such as an in-site ad.• We will continue to develop the product to provide more value to both sellers and buyers.2021年ココナラ流通⾼46Our Marketing Operation• Marketing considering unit economicsOur Marketing OperationStrictly control the payback period by considering the ROI from the CAC at the time of acquisition based on the historical LTV.For web ads, we have organized an in-house marketing team for meticulous ad management.For TVCM, we visualize the effects and implement a weekly PDCA cycle to reduce CACPayback Period of Our Marketing InvestmentBecause we acquire the vast majority of users organically (unpaid), the payback period*1 for new user acquisition is one month; the payback period for web ad alone (excl. organic) is about one year.TVCM can also be paid back in a few years (incl. indirect effects*2)2021年ココナラ流通⾼*1: A period needed to achieve a positive ROI.*2: “Direct effect” refers to the revenue earned from users acquired during the TV ads period that exceed the user acquisition level immediately prior to the TV ads period, and “indirect effect” refers to the revenue earned from users acquired after the TV ads period that exceed the user acquisition level that takes into account the growth trend prior to the TV ads period (the estimated value after disregarding the effect of TV ads, the effect of advertisements other than TV ads, such as web advertising, and other factors in FY2019 and FY2020).47•••••FY2022 TargetAim to maximize Operating Revenue by increasing purchase UU, purchase amount per buyer and maintaining a high take rateOur GoalMeasuresRecent PerformanceFY2022 TargetFY2020FY2021FY2022Increase of Purchase UU (buyer)243,077320,036Maximizationof Operating RevenueIncrease of Purchase Amount per Buyer26,047 JPY29,922 JPYGMV12,256 MM JPYMaintain a HighOperating Revenue Ratio*128.0%28.6%29~30%*1: Operating Revenue Ratio: Operating revenue as a ratio of GMV.48The operating revenue ratio is expected to maintain a balance between the effects of a gradual decline over the long term due to a decrease in the share of telephone transactions, and the effects of a gradual increase due to growth in the coconala Legal Consultation business.coconalaMajor KPIsBuyer Side KPISeller Side KPI(cid:59054)(cid:1397)(cid:59055)Continuous increase in both buyer side and seller side KPIsBuyerSideGMVSellerSideGMVUnique BuyersUnit : person(cid:59054)(cid:59055)Purchase Amount per BuyerUnit : JPY(cid:59054)(cid:59055)+15%175,899243,077320,03622,28526,04729,922FY2019FY2020FY2021FY2019FY2020FY2021Unique SellersUnit : person(cid:59054)(cid:59055)Sales Amount per Seller+21%Unit : JPY(cid:59054)(cid:59055)+32%+25%45,32856,43530,485128,584139,678169,685FY2019FY2020FY2021FY2019FY2020FY202149coconalaRecurring Business ModelRecurring business model where GMV grows along with increase in registered usersGMV by Buyers FY Cohort*1(Unit : MM JPY)GMV by Sellers FY Cohort*1(Unit : MM JPY)FY2021 registerd buyersFY2020 registerd buyersFY2019 registerd buyersFY2018 registerd buyersFY2017 registerd buyersFY2016 registerd buyersFY2012-15 registerd buyers10,0009,0008,0007,0006,0005,0004,0003,0002,0001,000FY2021 registerd sellersFY2020 registerd sellersFY2019 registerd sellersFY2018 registerd sellersFY2017 registerd sellersFY2016 registerd sellersFY2012-15 registerd sellers10,0009,0008,0007,0006,0005,0004,0003,0002,0001,0000FY12FY13FY14FY15FY16FY17FY18FY19FY20FY21FY13FY14FY15FY16FY17FY18FY19FY20FY210FY12*1: Contract-basis GMV: To be booked when service purchase contracts are made, which is different from the company’s accounting basis, which is delivery basis 50coconalaAll KPIs show steady growthMajor KPIs (Registered Users, Number of Sellers and Buyers, Services on Sale(cid:59055)Registered Users (as of end of each FY)(Unit : K)Annual Unique BuyersUnit : K(cid:59055)(cid:59054)2,4261,8431,33760287013417683320243FY2017FY2018FY2019FY2020FY2021FY2017FY2018FY2019FY2020FY2021Number of Services on Sale (as of end of each FY)Number of Sellers (as of end of each FY)Unit : K(cid:59054)(cid:59055)Unit : K(cid:59054)(cid:59055)527304355233881502091385287FY2017FY2018FY2019FY2020FY2021FY2017FY2018FY2019FY2020FY202151Large Number of Services on Sale and ReviewsMarket-leading platform providing an abundance of inventories and reviewsNumber of Services on Sale*1(Unit : K)Number of Reviews*2(Unit : K)No.1 skill-sharing marketplace1475323,69650331311(cid:47)(cid:16)(cid:34)242435068coconalaCompany ACompany BCompany CCompany DCompany EcoconalaCompany ACompany BCompany CCompany DCompany E*1: Data as of Sep. 2021Source: For data related to other companies, we refer to their service pages.Counting method (our company): Count the number of services on sale that are publicly available on the service website. Our company’s number of services on sale does not include public requests from buyers to sellers or seller’s proposal to private requests (because it is not an e-commerce-like service that lists items on sale in advance, unlike the services offered by other companies.)Counting method (other companies): Count the number of services that are shown on the service search in their respective service websites.*2: Data as of Sep. 2021Source: For data related to other companies, we refer to their service pages.Counting method (our company): Count the number of reviews of the services on sale that are publicly available on the service website.Counting method (other companies): Count the number of reviews of services/sellers that are shown on the service/seller search in their respective service websites. The company A does not show the number of reviews since it is not part of the website designing. Buyers’ review systems differ by companies as each company has its own review system.52Our Strategic Concept : A Service Marketplace That Offers Everything You Need Service e-commerce industry is 10-20 years behind the goods e-commerce industry. coconala aims to be a comprehensive “service e-commerce” platform2000(cid:1424)2010(cid:1424)Countless specialized sitesComprehensive platform2020(cid:1424)Expansion leveraging “big data”GoodsServiceーCountless specialized sitesComprehensive platformA Service Marketplace That Offers Everything You Need53Business User Expansion StrategyWe are aiming to capture market share of small and medium-sized companies by “coconala business”Large companies 300+ employeesMedium sized companies20~300 employeesSmall sized companies1~20 employeesJapanese population over 15 years old10Kcompanies270Kcompanies3,560Kcompanies110 MMpeopleMid-term targetSmall to medium-sized companies(cid:59054)(cid:59055)Expansion of product functions and marketing investment for business usersMajor target so farSmall sized companiesIndividuals(cid:59054)(cid:59057)(cid:59055)Continue to expand by leveraging our position as No.1 platformSource: Ministry of Economy, Trade and Industry “2016 Economic Census” , Statistic Bureau, Ministry of Internal Affairs and Communications “Population Estimates – October 2020”54coconala’s Revenue StructureThe most important KPIs are ”number of unique buyers”*1 and “purchase amount per buyer”*2 which make up the GMV. Based on high gross profit output due to low variable costs, aim to achieve future profitability through maximizing operating revenuesGMVTake Rate(≒ commission fee rate)Operating Revenue(Sales for accounting purposes)UniqueBuyersPurchaseAmountPer BuyerOperatingExpensesVariableFixedOperating Profit*1 Unique Buyers : Number of unique users who purchased services within each period*2 Purchase amount per person: Purchase amount per paid UU within each period55Changes in Shareholder CompositionDue to the IPO, the composition of VC dropped from 55% to 7%, on the other hand the composition of institutional investor increased from 11% to 54%Before the IPOMar. 18th, 2021(cid:59054)(cid:59055)After the IPOAug. 31st, 2021(cid:59054)(cid:59055)29%5%11%55%41%19%19%7%13%Institutional (overseas)VCOfficer and employee of the companyInstitutional (domestic)Corporates / Individuals56Measures Taken for Safety and Reliability of MarketplaceKYC of SellersMonitoring SystemEscrow SettlementIdentification of sellers to increase credibility by buyersMonitoring all services and corresponding inquiries 365 days by full-time staffPurchase payments to be escrowed until deliveries of servicesPublicizing prohibited services and conducts defined in the guidelineUser Mutual Review SystemSharing Economy Trust MarkEnhanced IT SystemMutual review systems of sellers and buyers, which is reviewed and scored by each other and opened to publicObtained certified mark by fulfilling compliance standard defined by Cabinet Secretariat IT General Strategy OfficeInvestment in and daily monitoring of IT system for stable and robust operation57Create a world where each person lives their “own story.”(cid:9481)(cid:9748)(cid:1509)(cid:1499)(cid:1533)(cid:1471)(cid:1408)(cid:33285)(cid:11142)(cid:1505)(cid:1578)(cid:1593)(cid:1645)(cid:1627)(cid:1645)(cid:1409)(cid:1541)(cid:27039)(cid:1472)(cid:1497)(cid:1463)(cid:1474)(cid:9513)(cid:1505)(cid:9544)(cid:1541)(cid:1495)(cid:1474)(cid:1534)58