Makuake, Inc. (4479)
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.

July 30, 2024

Non-consolidated Financial Results
for the Nine Months Ended June 30, 2024
<under Japanese GAAP>
Company name:
Makuake, Inc.
Listing:
Tokyo Stock Exchange
Stock code:
4479
URL:
https://www.makuake.co.jp/
Representative:
Ryotaro Nakayama, CEOInquiries:
Junghyun Kim, Head of Investor Relations
TEL:+81-3-6328-4038 (from overseas)
Scheduled date to commence dividend payments:
Preparation of supplementary materials for financial results:
Holding of financial results presentation meeting:

–Yes
Yes

(Millions of yen with fractional amounts discarded, unless otherwise noted)

1. Performance for the nine months ended June 30, 2024
(from October 1, 2023 to June 30, 2024)(1) Operating results (cumulative)(Percentages indicate year-on-year changes.)

Net sales
Nine months ended
June 30, 2024
June 30, 2023

Operating profit

Millions of yen

2,731
2,779% Millions of yen

ሺ1.7)
ሺ16.4)

Basic earnings per
share
Nine months ended
June 30, 2024
June 30, 2023

% Millions of yen

ሺ114)
ሺ459)

––

Diluted earnings per
share

Yen(12.78)(36.75)

Ordinary profit

Yen––ሺ110)
ሺ454)

Profit% Millions of yen%ሺ162)
ሺ462)

––––

Makuake, Inc. (4479)(2) Financial position
Total assets
As ofJune 30, 2024
September 30, 2023
Reference:

Net assets

Equity ratio

Millions of yen

Millions of yen

%

6,697
7,955

4,951
5,105

73.2
63.5

EquityAs of June 30, 2024
As of September 30, 2023

¥4,902 million¥5,051 million

2. Cash dividends
Annual dividendsFirstquarter-end

Secondquarter-end

Yen

Third
quarter-end

Yen

Fiscal year-end

Yen

Fiscal year ended
September 30, 2023

–0.00

–

Fiscal year ending
September 30, 2024

–

0.00

–

Fiscal year ending
September 30, 2024 (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, 2024
(from October 1, 2023 to September 30, 2024)
Net sales

Fiscal year ending
September 30, 2024

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

Operating profit

Millions ofyen%Millions ofyen%Millions ofyen%Millions ofyen%

Yen3,603

ሺ5.4)

ሺ97)

–ሺ93)

–ሺ152)–ሺ12.02)

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

Makuake, Inc. (4479)* 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: None(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 June 30, 2024

12,704,700 shares

As of September 30, 2023

12,636,700 shares(ii) Number of treasury shares at the end of the period
As of June 30, 2024

180 shares

As of September 30, 2023

130 shares(iii) Average number of shares during the period (cumulative from the beginning of the fiscal year)
For the nine months ended June 30, 2024

12,687,872 shares

For the nine months ended June 30, 2023

12,585,566 shares* Review of the Japanese-language originals of the attached quarterly financial statements by certified public
accountants or an audit firm: None
* 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 business andother results may differ substantially due to various factors.
For details regarding the earnings forecasts explained above, please refer to “1. Qualitative information onquarterly financial results (3) Explanation of forward-looking information including earnings forecasts”
on pages 3-4 of the attached materials.

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 forward-looking information including earnings forecasts ........................................ 32. Quarterly financial statements and significant notes thereto ....................................................................... 5(1) Quarterly balance sheet ...................................................................................................................... 5(2) Quarterly statement of income ........................................................................................................... 6(3) Notes to quarterly financial statements .............................................................................................. 7Notes on premise of going concern .................................................................................................... 7
Notes on significant changes in the amount of shareholders’ equity .................................................. 7
Additional information ....................................................................................................................... 7
Segment information .......................................................................................................................... 7
Notes to statement of cash flows ........................................................................................................ 7-1-

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 project supporters (Consumers) whopurchase 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 ofnew 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; and Makuake SHOP,
which works with partner companies in a variety of formats nationwide to enable products launched on
Makuake to be displayed and sold in real-world stores.
During the first nine months of the fiscal year ending September 30, 2024, the Japanese economy
continued to experience a gradual recovery in personal consumption, partly due to the effects of various
government policies on the employment and income environment. However, the prolonged highinterest rate levels in the United States, rising raw material prices due to the international situation,
supply constraints, and other factors continued to drive up commodity prices, which resulted in a
slowdown in personal consumption. Moreover, the expanding interest rate gap between Japan and theUnited States, ongoing global inflation, and rising interest rates due to the Bank of Japan’s monetary
policy slowed the pace of economic recovery, leaving the future still uncertain. In addition, closeattention must be paid to the economic impact of the Noto Peninsula Earthquake in January 2024.
Regarding the market environment surrounding the Company, the reopening (restart of economicactivities), which started mainly offline after various restrictions related to COVID-19 were lifted, hasbeen observed in experiential consumption, particularly traveling, participation in events, and dining
out. This trend is expected to continue in the current fiscal year.
Against this backdrop, during the nine months ended June 30, 2024, the Company pursued various
initiatives for repeat owners and repeat supporters up until the first six months. From the quarter underreview onward, we implemented measures primarily aimed at acquiring high-quality new and repeat
owners. Our emphasis was placed on increasing the unit price per project rather than increasing thenumber of project publications.
For owners, in order to encourage the creation of fine-quality projects, we established constant contact
with them, and enhanced support primarily for projects with high target amounts of “support” preorders to increase the unit prices of such projects by leveraging various ancillary services. We also
concentrated our efforts on maximizing the amount of “support” pre-orders on the first day for all
projects as the amount on the first day greatly affects the growth of “support” pre-order value.
For supporters, an original symbol, which marks recommended owners certified based on theCompany’s established standards, and supporter evaluations of owners are displayed on the project
page. We have thereby enhanced the environment where supporters can enjoy making “support” preorder purchases with a sense of increased security. We have also continuously released new functions toenrich supporters’ experience of “support” pre-orders, such as the function of enabling supporters toreceive notification about the start of publication of projects that they want to be quick to place“support” pre-orders for as well as a renewed top page and a dedicated ranking page on the Makuake
website. In addition, we have facilitated repeat “support” pre-orders by implementing various CRM
measures, primarily the distribution of coupons and email newsletters that meet the needs of supporters.
However, many projects by high-quality new and repeat owners, which we began acquiring from thequarter under review, experienced delays in the start period compared to our initial expectations.
Additionally, the activity among regional and overseas owners was slow compared to the same period-2-Makuake, Inc. (4479)

of the previous fiscal year. As a result, the “support” pre-orders decreased by 2.2% year on year to¥12,644,500 thousand.
We have thoroughly controlled SG&A expenses, particularly advertising expenses, based on ourinternal ROI standards, and have proactively scrutinized unnecessary costs, while at the same time
striving to improve cost effectiveness.
As a result, for the period under review, the Company recorded net sales of ¥2,731,751 thousand (down
1.7% year on year), an operating loss of ¥114,084 thousand (operating loss of ¥459,644 thousand in thesame period of the previous fiscal year), an ordinary loss of ¥110,983 thousand (ordinary loss of¥454,328 thousand in the same period of the previous fiscal year) and a loss of ¥162,106 thousand (lossof ¥462,569 thousand in the same period of the previous fiscal 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) Information on financial position
AssetsAt the end of the quarter under review, total assets decreased by ¥1,258,088 thousand from the previous
fiscal year-end to ¥6,697,122 thousand.
Current assets decreased by ¥1,303,999 thousand to ¥5,757,288 thousand. The main components
included a decrease of ¥1,036,099 thousand in cash segregated as deposits.
Non-current assets increased by ¥47,835 thousand to ¥939,834 thousand. The main components
included an increase of ¥222,785 thousand in intangible assets and a decrease of ¥174,540 thousand ininvestments and other assets.
Liabilities
At the end of the quarter under review, liabilities decreased by ¥1,103,755 thousand from the previous
fiscal year-end to ¥1,745,638 thousand.
Current liabilities decreased by ¥1,094,907 thousand to ¥1,695,926 thousand. The main components
included a decrease of ¥1,067,681 thousand in deposits received.
Non-current liabilities decreased by ¥8,848 thousand to ¥49,711 thousand. The main components
included a decrease of ¥9,260 thousand in provision for continuous services benefits.
Net assets
At the end of the quarter under review, net assets decreased by ¥154,332 thousand from the previous
fiscal year-end to ¥4,951,484 thousand. The main components included a decrease of ¥162,106
thousand in retained earnings due to the recording of a loss.
(3) Explanation of forward-looking information including earnings forecasts
The Company has been actively implementing measures targeting repeat owners and repeat supporters
to provide a better experience for both owners and supporters, especially through the Makuake service,and thereby encourage their repeat use of our site.
However, due to the ongoing high prices of raw materials and inflation, we have observed somechanges in the project publications by owners and the “support” pre-orders by supporters. Additionally,
many of the high-quality new and repeat owners’ projects, which we began acquiring from the quarter
under review, have experienced delays in the start period compared to our initial expectations. As aresult, the performance for the nine months ended June 30, 2024, fell below our planned levels.
Given that the external environment is expected to remain similar in the future, and considering that theperiod of high-quality project publications may continue to fluctuate due to owners’ circumstances, wehave revised our financial forecasts disclosed on October 24, 2023. The revised figures are as follows:
net sales of ¥3,603 million (down 5.4% year on year), operating loss of ¥97 million (operating loss of¥489 million in the same period of the previous fiscal year), and ordinary loss of ¥93 million (ordinary-3-

Makuake, Inc. (4479)

loss of ¥482 million in the same period of the previous fiscal year). Furthermore, due to the booking ofa loss on valuation of investment securities as an extraordinary loss, loss has been revised to ¥152
million (loss of ¥491 million in the same period of the previous fiscal year).

-4-

Makuake, Inc. (4479)

2. Quarterly financial statements and significant notes thereto(1) Quarterly balance sheet(Thousands of yen)
As of September 30, 2023Assets
Current assets
Cash and deposits
Cash segregated as 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 payableDeposits received
Other
Total current liabilities
Non-current liabilities
Provision for retirement benefits
Provision for continuous services benefitsOther
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 June 30, 2024

4,148,698
2,265,771
483,759
170,340
ሺ7,282)
7,061,287

4,040,677
1,229,671
363,457
130,764
ሺ7,282)
5,757,288

4,664
541,6204,255
764,405353,250
ሺ7,537)345,713891,998
1,924
7,955,211

178,710
ሺ7,537)
171,173
939,834–
6,697,122

28,8662,301,067
460,900
2,790,834

20,7991,233,386
441,741
1,695,926

2,435
55,132992
58,5602,849,394

3,839
45,872–
49,711
1,745,638

3,127,283
3,127,283
ሺ1,202,840)
ሺ625)
5,051,101
54,715
5,105,816
7,955,211

3,134,287
3,134,287(1,364,947)(659)
4,902,969
48,515
4,951,484
6,697,122

Makuake, Inc. (4479)(2) Quarterly statement of income(Thousands of yen)
Nine months ended
June 30, 2023
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating loss
Non-operating income
Interest income
Dividend income
Lecture’s fee income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Amortization of share issuance costs
Other
Total non-operating expenses
Ordinary loss
Extraordinary income
Gain on sale of non-current assets
Gain on reversal of share acquisition rights
Total extraordinary income
Extraordinary losses
Loss on valuation of investment securities
Total extraordinary losses
Loss before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Loss-6-Nine months ended
June 30, 2024

2,779,726
533,804
2,245,922
2,705,567(459,644)

2,731,751
639,3022,092,448
2,206,533(114,084)

4
31
5,912
3,656
1,382
10,987

6
22
3,855
340
823
5,046

5,491
180
5,671
(454,328)

1,924
20
1,945
(110,983)

–––

111
6,200
6,311––
ሺ454,328)
8,241
–
8,241
(462,569)

78,24078,240(182,912)
8,287(29,093)(20,806)(162,106)

Makuake, Inc. (4479)(3) 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.
Additional information
In the three months ended March 31, 2024, the Company has shortened the remittance schedule forproject owners in the Makuake service, a “support” pre-order platform. Previously, the remittance date
was the third business day of the second month following the month in which projects had ended;however, it has been changed to the 25th of the month following the month in which projects end. Thisis expected to further enrich supporters’ experience of “support” pre-orders by helping project owners
improve their cash flows and facilitating the smooth provision of products and services for which“support” pre-orders are placed.
As a result, cash segregated as deposits and deposits received in the quarterly balance sheet decreasedby ¥1,095,418 thousand, respectively.
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.
Notes to statement of cash flows
The Company has not prepared the quarterly statement of cash flows for the nine months ended June30, 2024. Depreciation (including amortization of intangible assets) for the nine months ended June 30,2024 is as follows.
(Thousands of yen)
Nine months ended
June 30, 2023
Depreciation

12,854-7-

Nine months ended
June 30, 2024
82,849