Long-term Vision andMedium-term Management Plan
June 13, 2022

Smaregi, Inc.
Securities code: 4431

2The year 2021 marks the 10th anniversary of Smaregi.
Over the past 10 years, Smaregi has grown into an unparalleled service
that offers both the basic functions to accommodate stores of all types
and the expandability to realize unique store operations.
We want more and more stores to use this wonderful service and its features.
We would also like to strongly support Japanese storesand contribute to Japan’s economic development.
Over the next 10 years, Smaregi will go beyond tablet POS
and aim to secure the top share of the POS market in Japan.

Contents

3P4Long-term Vision - VISION2031

P6

Medium-term Management Plan - Plan for Doubling ARR

P

Medium-term Management Pla- Four Key Activities UPDATEn 8 

P13 Update history4zLong-term Visionz

As of 2021, hardware vendors still hold a large share of the Japanese POS market.
Smaregi was established in 2011 during the transition from the hardware
to the software era. As a software and database company, we aim to lead the cloudand DX era, expand our market share, and become the top POS company in Japan
within the next 10 years in order to create an environment
in which everyone can easily utilize data.

Long-term Vision

5

Our goal is to be a POS market leader in Japan
KPI

Aiming for 300,000 active stores and a 14% market share in JapanThe target has been enlarged from the core midsize business category to include big businesses (demandfor replacing conventional POS systems) and small businesses (fee income from use of the app market).

300,000

Number of active storesstores

14%Big businesses(at least 40 stores)

Up about10 times in
10 yearsofthe marketin Japan

100,000 stores

Slowly expanding themain target with thegoal of 300,000 active
stores out of 2.11
million stores in Japan

24,000

Our main target
Midsize businesses(2-39 stores)

Goalfor the main
target segment is38%

770,000 stores
Small businesses(1 store)

storesFY4/21Market share in Japan

1.24 million stores
FY4/23

FY4/25

FY4/27

FY4/29FY4/31

Prepared by Smaregi based on 2016 Economic Census conductedby the Ministry of Economy, Trade and Industry and the Ministryof Internal Affairs and Communications.

6zMedium-term Management Planz

FY4/22 - Y4/24
UPDATE

Medium-term Management Plan - Advancing Smaregi to a Fast-growth Cycle

7

Aggressively strengthen business investment for three years starting from FY4/22,
to realize a continuous high-growth cycle, while being prepared for a decrease in profits.
Aggressive advertising and other business investments
to increase the number of active stores and raise the price per customer.

300,000 active storesFirst step toward the long-term goal

The goal of the medium-term plan is ARR ¥5 billion.
5.00

Plan for ARR growthWe set ARR as the KPI for the Medium-term Management
Plan because we place the highest priority on recurring(subscription) revenues such as monthly usage fees, rather
than one-time revenues such as equipment sales.

Number of Customers × Sales per Customer
We will increase the number of customers by investing a large
amount into sales and marketing expenses, and increase thesales per customer by cross-selling payment services, Smaregi
TimeCard, etc., with an awareness of the formula “ARR = Numberof Customers x Sales Per Customer”.

(billion yen)

Double3.67

2.92
2.702.07

FY4/21

Achieved

FY4/22

FY4/23

FY4/24

Medium-term Management Plan – Four Key Activities
Increase
number of customer

8Improvesales per customer
App Market Strategy
Improve the customer experienceand sales per customer
Stimulate Smaregi App Market and build an ecosystem.
Increase sales per customer by offering a full range of apps.

Emphasis on
Advertising/Marketing

NEW

Enhancement of payment service*

Brand awareness/Sales leads acquisition

strengthening of revenue base

Implement measures to increase awareness through TV
commercials and other media, and to acquire leadsthrough web advertising and other channels.

Establish a revenue model with GMV as its source throughseamless linkage with POS services.

Smaregi TimeCard
Human resources business/Cross-selling
Grow the business from time and attendance to HR
services by enhancing functionality and improving CX.

* Due to subsidiary of ROYAL GATE INC., "Training for Creative Thinking" that was one of Four Key Activities when we disclosed in March 2021 wasseparated from medium-term plan, and changed to "Enhancement of payment service". We keep on proceeding it as our important measure to support
continuous business growth.

Medium-term Management Plan

9Emphasis on Advertising/Marketing

Brand awareness/Sales leads acquisition

Proactive advertising/marketing
expenditures for faster growth
Goal

Resumed marketing activities that had been suspended
due to COVID-19.
Using funds raised at the time of listing, we areaccelerating our efforts to raise awareness and attract newcustomers through aggressive activities, such as below.

Core Activities

As of the end of April, 2022

• More powerful Smaregi brand by raising publicawareness• Faster pace of attracting new customers

S&M expense（million yen）

results

・TV commercia（Target region: Kanto, Kansai, Kyushu, and Okinawa)・Radio program “Omise radio”（InterFM897、FM Osaka)・Owned media for store executives “Akinai LABO”
・Web ads, Affiliate marketing・Online/offline events and exhibitions
・Cosponsored food Festival（sales leads）

2,000

1,000

0

sales leads

15,077

10,0007,358

269

FY4/21

822*
FY4/22    *Total results including subsidiary (ROYAL GATE INC.)
Planned: ¥692 million (Smaregi alone) Actual: ¥729 million (Smaregi alone), ¥92 million (ROYAL GATE INC,)l 

20,0000

Medium-term Management Plan

App Market Strategy

10Improve the customer experience and sales per customer

Build an ecosystem by creatinga large app market
The combination of basic functions and expansion apps registered on the app market enable Smaregi to cover almost any businesssector and format. Smaregi Ventures, a corporate venture capital business, along with Smaregi, are expanding and energizing theapp market by making investments in app developers and providing support for their business and sales activities. Plan tosignificantly improve the app development environment (Smaregi developers) centered on no-code/low-code platforms.

GoalCore Activities
As of the end ofApril, 2022

• Launched App Market introduction site
• Launched user request site
• Held 2nd annual Smaregi App Contest• Started “Developers Expert”
certification system

customers• Use expansion app utilization fees to increase
sales per customer• Improve the customer experience79

Trends in the number of apps
Although there are still many issues to beaddressed and the results from cross-sellingare still small, the emergence of industryspecific apps has enabled a multifaceted
approach to a wide range of industries!

• Use highly specialized functions to attract new

App Development Partners(As of the end of April, 2022)

27
FY4/21

Corporate partners

FY4/22576

Individual partners

319

Medium-term Management Plan

Enhancement of payment services

11

strengthening of revenue baseAiming to expand transaction-based sales
by strengthening our payment services
We are focusing on the payment business, which isexpected to have high synergy with POS services. In
addition to our existing payment services, theacquisition of ROYAL GATE INC. has greatly expanded
the scope of the payment business, and we aim toexpand our revenue model to increase ARR.

Goal

• Provide seamless payment services integrated
with POS services• Increase ARR by cross-selling to stores withSmaregi• Provide payment functions to App Market
development partners

About ROYAL GATE INC.
Effects of acquisition• Realized multi-payment including card, e-money, QR, etc.
• Increased profitability by simplifying the supply chain• Enabled easy expansion of our service lineup in the payment area
Post-acquisition strategy• Shift from a non-recurring revenue model based on payment

terminal sales to a monthly recurring revenue model, aiming forsynergy with Smaregi• Improve payment fee terms• Restructure monthly fees
• Provide payment terminals free of charge (or sell them at a discount)

Medium-term Management Plan

Smaregi TimeCard

12

Human resources business/Cross-selling

Upgrade Smaregi TimeCard
to expand from workingtime-management tohuman-resourcesmanagement
Make Smaregi Time Card, a cloud-based working time
management service, a separate business unit from the Smaregi
business and build an independent infrastructure as a humanresources business to aim for faster growth.
Core Activities

As of the end of April, 2022

• Launched a new plan “Premium Plus” that supports
sales per man-hour and the three statutory books• Established a dedicated call center (for selectedplans)• Conducted campaigns aimed at Smaregi (POS)
usersGoal• Use a cross-selling for all Smaregi users to increase sales
per customer• Faster growth by creating an independent business unit andbenefiting from synergies with other Smaregi groupbusinesses

Update history
June 13, 2022

June 11, 2021

13

Reviewed 4 specific measures and added "enhancement of payment services”.
1. Emphasis on Advertising/Marketing

1. Emphasis on Advertising/Marketing

2. App Market Strategy
3. Smaregi TimeCard

2. App Market Strategy
3. Enhancement of payment services

4. Training for Creative Thinking

4. Smaregi TimeCard

ARR plan revised upward.
(billion yen)

FY4/22

FY4/23

FY4/24Previous Plan

1.92

2.3

3.32

Current Plan

2.7

3.67

5.0

March 12, 2021 First edition released.

14

Business plans, forecasts and other forward-looking statements in this presentation arebased on the reasonable judgments of Smaregi based on information that was currently
available. Actual results of operations may be different because these statements include
uncertainties involving market conditions, political events, the economy and other items.
The purpose of this presentation is not to encourage investors to buy or sell Smaregi
stock or make any other investment decisions. Investors are responsible for making thesedecisions on their own.

Long-term Vision and Medium-term Management Plan

Smaregi, Inc.