Note: This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

April 26, 2022

Non-consolidated Financial Results
for the Six Months Ended March 31, 2022
<under Japanese GAAP>
Company name:
Listing:
Stock code:
URL:
Representative:
Inquiries:

Makuake, Inc.
Tokyo Stock Exchange4479
http://www.makuake.com/
Ryotaro Nakayama, CEO
Yuki Tamura, Corporate Officer and General Manager of Business ManagementDivisionTEL:+81-3-6328-4038 (from overseas)
Scheduled date to file quarterly securities report:
April 27, 2022
Scheduled date to commence dividend payments:–
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results presentation meeting:
Yes(Millions of yen with fractional amounts discarded, unless otherwise noted)

1. Performance for the six months ended March 31, 2022
(from October 1, 2021 to March 31, 2022)(1) Operating results (cumulative)(Percentages indicate year-on-year changes.)

Net sales
Six months ended
March 31, 2022
March 31, 2021

Operating profitMillions of yen

2,243
2,100% Millions of yen

6.8
87.2

Basic earnings pershare
Six months ended
March 31, 2022
March 31, 2021

Ordinary profit

Yen

4.95
3.44(17)
63% Millions of yen–(73.6)

Diluted earnings pershare
Yen

4.84
3.27

462

Profit% Millions of yen(93.5)(73.9)

61
40%

52.3
(75.4)

(2) Financial position
Total assets
As ofMarch 31, 2022
September 30, 2021
Reference:

Net assets

Equity ratio

Millions of yen

Millions of yen%

10,222
10,331

6,979
6,873

67.9
66.2

EquityAs of March 31, 2022
As of September 30, 2021

¥6,937 million¥6,841 million

2. Cash dividends
Annual dividendsFirstquarter-end

Secondquarter-end

Yen
Fiscal year ended
September 30, 2021
Fiscal year ending
September 30, 2022

Third
quarter-end

Yen

–

0.00

–0.00

Fiscal year-end

Yen

Fiscal year ending
September 30, 2022 (Forecast)

Total

Yen

Yen

–

0.00

0.00

–

0.00

0.00

Note: Revisions to the cash dividend forecasts most recently announced: None

3. Earnings forecasts for the fiscal year ending September 30, 2022
(from October 1, 2021 to September 30, 2022)
Net sales

Fiscal year ending
September 30, 2022

(Percentages indicate year-on-year changes.)
Basic
Ordinary profit
Profitearnings pershare

Operating profit

Millions ofyen%

4,700

1.7

Millions ofyen0%

Millions ofyen(100.0)

Note: Revisions to the earnings forecasts most recently announced: Yes

20%

Millions ofyen%

Yen(93.9)65(73.6)

5.19

* Notes(1) Application of special accounting treatments for the preparation of quarterly financial statements: None
(2) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(3) Number of issued shares (common shares)(i) Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2022

12,568,700 shares

As of September 30, 2021

12,404,700 shares(ii) Number of treasury shares at the end of the period
As of March 31, 2022

87 sharesAs of September 30, 2021

87 shares(iii) Average number of shares during the period (cumulative from the beginning of the fiscal year)
For the six months ended March 31, 2022

12,487,381 shares

For the six months ended March 31, 2021

11,788,431 shares* Quarterly financial results reports are exempt from quarterly review conducted by an audit corporation.
* Proper use of earnings forecasts, and other special matters
The forward-looking statements, including earnings forecasts, contained in these materials are based on
information currently available to the Company and on certain assumptions deemed to be reasonable.
These statements do not purport that the Company pledges to realize such statements. Actual businessand other results may differ substantially due to various factors.
For matters regarding the above earnings forecasts, please refer to “(4) Explanation of forward-looking
information including earnings forecasts” in “1. Qualitative information on quarterly financial results”
on page 3.

Makuake, Inc. (4479)

Attached materials
Index
1. Qualitative information on quarterly financial results .............................................................................. 2(1) Information on operating results ........................................................................................................ 2(2) Information on financial position ....................................................................................................... 3(3) Explanation of cash flows .................................................................................................................. 3(4) Explanation of forward-looking information including earnings forecasts ........................................ 3
2. Quarterly financial statements and significant notes thereto .................................................................... 5(1) Quarterly balance sheet ...................................................................................................................... 5(2) Quarterly statement of income ........................................................................................................... 6(3) Quarterly statement of cash flows ...................................................................................................... 7(4) Notes to quarterly financial statements .............................................................................................. 8Notes on premise of going concern .................................................................................................... 8
Notes on significant changes in the amount of shareholders’ equity .................................................. 8
Changes in accounting policies .......................................................................................................... 8Segment information .......................................................................................................................... 8-1-

Makuake, Inc. (4479)

1. Qualitative information on quarterly financial results(1) Information on operating results
The forward-looking statements in this report were prepared based on information available as of theend of the quarter under review.
Based on its vision of “Create a world where worthy things can come to be, grow and endure,” themission of Makuake, Inc. (the Company) is to “Connect the world through the creation of the ‘new.’ ”
We operate the Makuake service, a “support” pre-order platform to connect project owners(Businesses) who are providing something new to the world with supporters (Consumers) who
purchase new items and experiences based on their knowledge of the background and the ideas of theproject owners.
As ancillary services, we also provide Makuake Incubation Studio, which supports the generation of
new businesses that leverage research and development technology owned by companies; agency
operations for the distribution of advertisements to facilitate the growth of “support” pre-order value at
Makuake; Makuake STORE, which enables continued sales on e-commerce sites even after projects
have ended; Makuake Global, which accepts “support” pre-orders from overseas; “Support” Pre-orderService for Buyers, which enables buyers in Japan to watch how new products that have just launched
are selling and to stock them on the internet; Makuake SHOP, which works with partner companies in avariety of formats nationwide to enable products launched on Makuake to be displayed and sold in realworld stores.
Despite the continuation of difficult conditions caused by the effects of novel coronavirus disease(COVID-19), the first six months of the fiscal year ending September 30, 2022, saw the beginnings of arecovery in business conditions in the Japanese economy, and a move towards the normalization ofeconomic activity both in Japan and overseas. However, the outlook remains unclear due to issues suchas the increase in raw material prices caused by the situation in Ukraine and other factors, and supplyconstraints.
The business environment for the Company is affected by trends such as that of the e-commerce market
for debuting new products and of the e-commerce market for pre-ordering new services, but due to the
new lifestyles and working styles we have seen emerging as a result of the spread of COVID-19,
demand in these markets is extraordinarily high and growth is continuing. Going forward, we believethat the e-commerce market for debuting new products has extraordinarily high growth potential.
Against this backdrop, the six months ended March 31, 2022, saw a continuation of the rising trend in
the number of new projects published from project owners wanting to debut new products and services,
and an increase in the number of unique users visiting Makuake in search of new products that fit theirtastes and preferences. The increase in the workload for curators, and issues with the user experience inrelation to finding new products and services caused by the rise in the number of new projects, hadpreviously led to a decline in the conversion rate (CVR), which expresses how well the needs ofowners and supporters are matched. As a result of strengthening the hiring of curators and screening
staff, transitioning to a new organizational structure for both divisions, and developing new
functionality centered on the app, the CVR recorded a small increase. As a result of working to create aplatform that owners and supporters can use with greater confidence, training the staff we hired in the
period under review, and focusing on improving operations within the new organizational structure,
total “support” pre-order value grew by 5.9% year on year to ¥10,393,643 thousand.
On the other hand, as a result of moving forward to hire staff with the goal of accelerating growth in thethird quarter and beyond, for the period under review, the Company recorded net sales of ¥2,243,204
thousand (up 6.8% year on year), an operating loss of ¥17,699 thousand (compared to operating profitof ¥63,362 thousand in the same period of the previous fiscal year), ordinary profit of ¥4,065 thousand(down 93.5% year on year) and profit of ¥61,813 thousand (up 52.3% year on year).
As the Company consists of a single business segment, the Makuake service, a platform for people toplace “support” pre-orders of new things and experiences, information by segment is omitted.

-2-

Makuake, Inc. (4479)(2) Information on financial position
AssetsAt the end of the quarter under review, total assets decreased by ¥109,037 thousand from the previous
fiscal year-end to ¥10,222,509 thousand.
Current assets decreased by ¥308,449 thousand to ¥8,961,113 thousand. The main components
included a decrease of ¥142,630 thousand in cash and deposits.
Non-current assets increased by ¥205,167 thousand to ¥1,246,755 thousand. The main components
included an increase of ¥153,838 thousand in intangible assets.
Liabilities
At the end of the quarter under review, liabilities decreased by ¥215,123 thousand from the previous
fiscal year-end to ¥3,243,090 thousand.
Current liabilities decreased by ¥224,199 thousand to ¥3,191,161 thousand. The main components
included a decrease of ¥125,599 thousand in deposits received.
Non-current liabilities increased by ¥9,075 thousand to ¥51,929 thousand. The main components
included an increase of ¥8,529 thousand in provision for continuous services benefits.
Net assets
At the end of the quarter under review, net assets increased by ¥106,086 thousand from the previous
fiscal year-end to ¥6,979,419 thousand. The main components included an increase of ¥61,813
thousand in retained earnings due to the recording of profit.
(3) Explanation of cash flows
The balance of cash and cash equivalents (“cash”) at the end of the period under review, decreased by¥270,811 thousand compared with the previous fiscal year-end, to ¥8,320,443 thousand. The respective
cash flow positions and the factors contributing thereto in the period under review are as follows.
Cash flows from operating activities
Net cash used in operating activities was ¥152,220 thousand (¥200,286 thousand was used in the same
period of the previous fiscal year). This was primarily due to a decrease in deposits received of¥125,599 thousand.
Cash flows from investing activities
Net cash used in investing activities was ¥152,374 thousand (¥293,512 thousand was used in the same
period of the previous fiscal year). This was primarily due to purchase of intangible assets of ¥208,931
thousand.
Cash flows from financing activities
Net cash provided by financing activities was ¥33,784 thousand (¥3,876,335 thousand was provided inthe same period of the previous fiscal year). This was due to proceeds from issuance of shares of¥33,784 thousand.
(4) Explanation of forward-looking information including earnings forecasts
The Company had previously put the highest priority on growth in total “support” pre-order value for
the Makuake service, aiming to establish a position for itself as the largest marketplace for the online
debut of new products and services. However, during the COVID-19 pandemic, demand for theMakuake service increased sharply, leading to extraordinarily high growth that exceeded theexpectations of the Company.
Accordingly, although total “support” pre-order value increased significantly, issues emerged in suchareas as the number of staff, the operational structure, and the development of new functions matchedto the scale of the platform, which impaired the user’s experience of the Makuake service. In response-3-

Makuake, Inc. (4479)

to this, in the first six months of the fiscal year ending September 30, 2022, we focused on actively
strengthening our hiring, improving the operational structure and developing new functions.
Nevertheless, securing staff at the same time as building and optimizing the new operational structure,
as well as developing new functions, took more time than we had expected, and progress in results inthe period under review fell short of forecasts.
This fiscal year the Company will continue to resolutely confront these internal issues by making
improvements to the operational structure and developing new functions in order to create a robust
platform for growth from the next fiscal year onwards. At the same time, we will focus on thesoundness of the Makuake service, which is a prerequisite for its use by members, as well asconcentrating on encouraging repeat use by owners and supporters by strengthening the screening
framework, on laying the groundwork for a better user experience, and on accumulating customer
assets. Having taken these factors into account and reviewed our earnings forecasts for the fiscal year
ending September 30, 2022, it appears likely that results will undershoot the forecasts announced on
October 26, 2021, and we have therefore revised them as follows. Net sales of ¥4,700 million (up 1.7%
year on year), operating profit of ¥0 million (down 100%), ordinary profit of ¥20 million (down 93.9%),
and profit of ¥65 million (down 73.6%).

-4-Makuake, Inc. (4479)

2. Quarterly financial statements and significant notes thereto(1) Quarterly balance sheet(Thousands of yen)
As of September 30, 2021
AssetsCurrent assets
Cash and deposits
Segregated deposits
Accounts receivable - trade
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Deferred assets
Total assets
Liabilities
Current liabilities
Income taxes payable
Deposits received
Other
Total current liabilities
Non-current liabilities
Provision for retirement benefits
Provision for continuous services benefits
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Share acquisition rights
Total net assets
Total liabilities and net assets-5-

As of March 31, 2022

5,949,943
2,641,311551,330
134,259(7,282)
9,269,563

5,807,312
2,513,130
498,637
149,314(7,282)
8,961,113

43,119593,873

55,818
747,712412,131(7,537)404,594
1,041,587
20,396
10,331,547

450,761(7,537)443,224
1,246,755
14,641
10,222,509

72,2862,652,462
690,6113,415,360

67,9192,526,863
596,378
3,191,161

337
42,51642,853
3,458,214

883
51,04551,9293,243,090

3,103,387
3,103,387
635,591(499)
6,841,867
31,464
6,873,332
10,331,547

3,120,279
3,120,279
697,405(499)6,937,465
41,953
6,979,419
10,222,509

Makuake, Inc. (4479)(2) Quarterly statement of income(Thousands of yen)Six months ended
March 31, 2021
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest income
Dividend income
Lecture fees and other income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Amortization of share issuance costs
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of investment securitiesTotal extraordinary income
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit-6-

Six months ended
March 31, 2022

2,100,387
361,654
1,738,733
1,675,370
63,3622,243,204
453,463
1,789,740
1,807,439(17,699)

0–
3,344
–
19
3,364

1
8
5,415
20,744
1,553
27,722

3,815
–
3,815
62,911

5,755
201
5,956
4,065

–
–
62,911
25,206(2,891)
22,31440,59797,50097,500101,565
43,604(3,852)39,752
61,813

Makuake, Inc. (4479)(3) Quarterly statement of cash flows(Thousands of yen)Six months ended
March 31, 2021
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Loss (gain) on sale of investment securities
Increase (decrease) in provision for retirement benefits
Increase (decrease) provision for continuous services
benefits
Interest and dividend income
Amortization of share issuance costs
Decrease (increase) in trade receivables
Increase (decrease) in accounts payable - other
Increase (decrease) in accrued expenses
Increase (decrease) in deposits receivedIncrease (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividends received
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee
deposits
Payments for investments in capital
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from issuance of shares
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting frommerger
Cash and cash equivalents at end of period-7-

Six months ended
March 31, 2022

62,911
43,671
666––

101,565
71,125
1,999(97,500)
546

6,680

8,529

(0)
3,815
87,812(314,125)(25,552)
236,213(79,192)(86,928)(64,029)0(136,405)
148(200,286)(9)5,75552,692(93,441)
14,524(125,599)(28,207)(26,159)(114,177)
1(38,083)
38(152,220)(7,678)(140,121)(83,176)–(62,536)(17,840)(208,931)(40,020)
112,500(2,660)

–

4,907

–
(293,512)(330)(152,374)

3,876,335
3,876,335
3,382,537
5,109,351

33,78433,784(270,811)
8,591,254

1,810

–

8,493,699

8,320,443

Makuake, Inc. (4479)(4) Notes to quarterly financial statements
Notes on premise of going concern
No applicable items.
Notes on significant changes in the amount of shareholders’ equity
No applicable items.
Changes in accounting policies
Application of Accounting Standard for Revenue Recognition, etc.
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No.
29, March 31, 2020) and relevant ASBJ regulations from the beginning of the first quarter of thecurrent fiscal year, and it has recognized revenue at the time the control of promised goods or services
is transferred to the customer at the amount expected to be received upon exchange of said goods orservices.
The application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations issubject to the transitional treatment provided for in the proviso to paragraph 84 of the AccountingStandard for Revenue Recognition. The cumulative effect of the retrospective application, assuming thenew accounting policy had been applied to periods prior to the beginning of the first quarter of thecurrent fiscal year was added to or deducted from the opening balance of retained earnings of the firstquarter of the current fiscal year, and thus the new accounting policy was applied from such openingbalance.
There is no effect on the profit or loss for the first six months of the current fiscal year or the opening
balance of retained earnings of the current fiscal year.
Furthermore, the information on disaggregation of revenue from contracts with customers during thefirst six months of the previous fiscal year has not been disclosed as allowed by the transitional
treatment provided for in paragraph 28-15 of the Accounting Standard for Quarterly Financial
Reporting (ASBJ Statement No. 12, March 31, 2020).
Application of Accounting Standard for Fair Value Measurement, etc.
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ StatementNo. 30, July 4, 2019) and relevant ASBJ regulations from the beginning of the first quarter of thecurrent fiscal year, and it has applied the new accounting policy provided for by the AccountingStandard for Fair Value Measurement, etc. prospectively in accordance with the transitional measuresprovided for in paragraph 19 of the Accounting Standard For Fair Value Measurement, and paragraph44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019).
There is no effect on the quarterly financial statements.
Segment information
Segment information
As the Company consists of a single business segment, the Makuake service, a platform for people toplace “support” pre-orders of new things and experiences, this information is omitted.

-8-