Long-term Vision andMedium-term Management Plan
June 11, 2021

Smaregi, Inc.
Securities code: 4431

2

Smaregi reached its 10th anniversary in 2021. During our first decade, we grew consistently bysupplying products with basic functions required by stores of all types. Growth was also backed
by outstanding services with the scalability to support the distinctive operating formats ofindividual stores.
Our goal is to supply these functions and services to an even larger number of stores.
We want to use our powerful support of stores to play a role in the advancement of Japan’seconomy too.
Over the next 10 years, we aim to go beyond the tablet POS category to become the leader inJapan’s POS market.

Contents

3P4Long-term Vision – VISION 2031

P6

Medium-term Management Plan
– Plan for Doubling ARR

P8Medium-term Management Plan
– Four Key Activities

Updated on June 11, 2021

4Long-term
VisionIn 2021, hardware vendors still dominate the POS market in Japan.
Smaregi started operating in 2011 as this market was beginning the shift from hardware
to software.
During the next decade, Smaregi will use its strengths as a software and database
company to be a leader in the emerging age of the cloud and the digital transformation(DX). Our goal is to increase our market share and become the POS market leader.
Smaregi envisions a future in which anyone can utilize data with ease.

Long-term Vision

5

Our goal is to be Japan’s POS market leader
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 (demand for replacing
conventional POS systems) and small businesses (fee income from use of the app market).

300,000

Number of active stores

Market share in Japan

14%stores
Big businesses(at least 40 stores)

Up about
10 times in10 years

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

24,000100,000 stores

Goal

Our main target

for the main
target segment isMidsize businesses

38%(2-39 stores)

770,000 stores
Small businesses(1 store)

storesFY4/21ofthe marketin 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.

6Medium-termManagement Plan

FY4/22 – FY4/24

Medium-term Management Plan - Advancing Smaregi to a Fast-growth Cycle
7

Further increase in business investments during the next three fiscal years, resulting in lower earnings, in order toestablish a continuous cycle for fast growth
Investments, primarily for high-profile advertisements, have the goals of more active stores and more sales per customer

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

Plan for ARR growth

5.00

The goal of the medium-term plan is
an ARR of more than ¥5 billion

Double• Use advertising and marketing expenditures to increase

2.70

the number of active stores.

(Billions of yen)

4.82

3.67
3.32

2.07
1.92

2.30

• Increase sales per customer by increasing the volume ofbusiness in the app market.

• Increase payment processing income by reexamining
payment services.

• Upgrade and expand the functions of Smaregi Time Card.

FY4/21

FY4/22

FY4/23

FY4/24

Medium-term Management Plan - Four Key Activities
8Emphasis on Advertising/Marketing

App Market Strategy

Large advertising/marketing expenditures to raise
brand awareness and attract customers faster

Build an ecosystem by creating a large app market

Brand awareness/
Become the leader

Improve the customer experienceand sales per customer

Smaregi Time Card

Training for Creative Thinking

Growth by expanding working time management
service to a human resource services business
Human resourcesbusiness/Cross-selling

Training programs to maintain a creative workforce
that can support a continuous fast-growth cycle
Continuous growthMedium-term Management Plan9

Emphasis on Advertising/Marketing
Brand awareness/
Become the leader

Large advertising/marketing expenditures forfaster growth
Resume public relations activities that were suspended
when the COVID-19 crisis started.
Use proceeds from the IPO to fund a high level of public
relations activities with the goals of raising awareness of
Smaregi and attracting new customers faster.

Plan to increase the Selling and marketing budget by
157.2% Y0Y in the fiscal year ending April 2022, thefirst year of the Medium-term Management Plan.
Budget for the second year of the plan will be basedon a review of the first-year results.
We are starting with marketing activities (content marketing, word-ofmouth marketing, etc.) that use the perspective of our customers. Plans also
include supplementing these activities by using TV commercials and othermass media channels.

Goals• More powerful Smaregi brand by raising public awareness• Faster pace of attracting new customers

Selling and Marketing Expenditures(Millions of yen)

Plan

600

400

Result692

200

269
0

FY4/21

FY4/22

Selling andmarketing
expenditures

Up 157.2%

Medium-term Management Plan10App Market Strategy

Improve the customer experienceand 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 business sector and format.
Smaregi Ventures, a corporate venture capital business, along with Smaregi, are expanding and energizing the appmarket by making investments in app developers and providing support for their business and sales activities.
Plan to significantly improve the app development environment (Smaregi developers) centered on no-code/low-code
platforms.

Goals• Use highly specialized functions to attract new customers• Use expansion app utilization fees to increase sales per customer• Improve the customer experienceMedium-term Management Plan
11

Smaregi Time Card (Human Resources Business)
Human resources business/
Cross-selling

Upgrade Smaregi Time Card
to expand from working time
management to humanresources management
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 human resources business to aimfor faster growth.

Goals• Use a cross-selling for all Smaregi users to increase sales percustomer• Faster growth by creating an independent business unit andbenefiting from synergies with other Smaregi Group businesses

Medium-term Management Plan
12

Training for Creative Thinking
Continuous growth

Become a company with one of themost creative workforces in Japan
Significantly increase recruiting expenditures to assemble a team ofpeople with IT creativity for solving problems. Primary targets are IT
engineers, designers and data scientists. We will also provide thoroughtraining to give people these skills and reinforce this expertise. Theaim is the establishment of a workforce capable of supporting acontinuous fast-growth cycle.

Goals• Hire more IT engineers, a category where more people are needed• Increase product quality and the speed of development activities• Invigorate R&D programs• Utilize POS data and use this data to start businesses

13Business plans, forecasts and other forward-looking statements in thispresentation are based on the reasonable judgments of Smaregi based on
information that was currently available. Actual results of operations may bedifferent 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 these decisions on their own.

Long-term Vision and Medium-term Management Plan

Smaregi, Inc.