Q1 FY04/24
Financial Results
Presentation
Sep 13, 2023
Macbee Planet, Inc.
(Stock code：7095)

1

Segment revision◼ The Company changed to a single segment to properly reflect the Group‘s business activities and operating
environment. Integration of Robee, the AC business, and 3DAD (Alpha).

＜Current＞

Analytics Consulting
Business(AC Business)

Product

Businessmodel

Honeycomb

GrossprofitBusiness
outlineApprox. 60%of total

Attracting
high LTV
users

Business
outline

LTV Marketing
Business

Throughproprietary AI anddata technology
support acquisitionof high LTV
customers with aperformancefee-based model[Segments merged]■Reason

PerformanceFees

・Most customers overlap
and performance linked

SynergyMarketingTechnology
Business(MT Business)＜New＞

Approx. 40%
of total

Raising LTV of
AC Businesscustomers

Volume based

DSP

Fixed +
Performance

Small

Contract
cancellation
curtailment

Robee
３DAD
Smash

・Technology duplication,
driver of customer value

Other

2

FY04/2024 Q1 results summary◼ Organic growth and the consolidation of Net Marketing led to a doubling of sales growth from the previous year. Despite higher goodwill
amortization due to the Net Marketing acquisition, there were also synergies which contributed to 2.2x operating profit growth.

(Units: ¥mn)

Sales
FY4/23 Q1

FY4/24 Q1

Change

4,521

9,169

+103%

Net Marketing consolidated from FY4/24. PMI
progressing well leading to strong business growth.
▶Sales

+103％ YoY

・Solid acquisition of new customers in addition to growth of existingcustomers(Also sales growth due to bricks & mortar peak season seasonality)
・Consolidation of Net Marketing, joined group in March 2023

EBITDA▶EBITDA

FY4/23 Q1

FY4/24 Q1

Change

497

1,121

+125%

Operating profit
449
OPM

9.9%

+125％ YoY

・Alpha goodwill amortization¥41mn/qtr
・Net Marketing goodwill amortization ¥64mn/qtr▶Operating profit ＋123％ YoY
・ Business growth driven profit increase

1,004
11.0%

+123%
+1.1pt▶Operating profit margin ＋1.1pt
・Gross profit margin improvement (20.3% → 21.3%)

3

FY04/2024 Q1 overview◼ Macbee Planet and Net Marketing both performed well. We continue to improve our organization and promote
initiatives for further growth.
Item
FY04/24 Q1 Overview

New customers

Existing
customers

Wellness

・Grew on peak season (seasonal) demand(Sales expected to decline in Q2)

Finance・Growth in customers other than major
securities firms

Other・Apps and games grew・Professions declined due to smaller budgets
・Strengthening cooperation between Net
Marketing and Macbee Planet through mutual
dispatch of executives. CTO-led PMI initiatives
in development area.

PMI
approach

Net Marketing

・New customers acquired in previous FY contributed
to earnings growth・Working on Net Marketing collaboration initiatives

Motivation

PMI results Sales
GPM

・Focus on employees with passion for advertising.
・Intra-group competition with Macbee Planet also apositive stimulus

・Clients in medical field solid, growth resuming
・GPM improving due to synergies from sharing ofdata acquisition technology

4Summary of management status
Status・Overall the company performed well, far exceeding plan.

FY4/24 earnings

・Synergies with Net Marketing already being realised, exceeding expectations inearnings forecast. Expect further positive response.
・Q1 supported by seasonal demand, Q2 sales and profits expected to decline QoQ.

・The overall growth rate of the advertising is slowing, but it is still growing. We
continue to benefit from market expansion due to the superiority our LTV marketing.

Advertising market*

・Ad efficiency has declined due to cookie restrictions, stricter ad screening standards
for ad platforms and lower accuracy of attribute targeting, but the impact waslimited due to our use of proprietary data acquisition technology.
・Ad placement indicators such as purchase lift (actual number of purchases), and
ROAS (sales per ad spend) remain high and this is a tailwind for us as we focus onhigh quality customers with a performance based fee model.
・The advertising market is expected to turn up through the second half of 2023.

・Continue to prioritize PMI with Net Marketing, improve earnings.

Initiatives for this FY

・Accelerate consideration of M&A in related areas.
・Develop new services and functions to meet market needs.

*CCI: Seventh Annual Survey on the Internet Advertising Market, “Internet Advertising Market Trend in the First Half of 2023”.

5

Corporate data

P.7

FY04/24 forecasts

P.11

Q1 FY04/24 results

P.20

Others

P.25

appendix
・Business Performance

P.28

・Business environment

P.34

・Business description

P.38

6

Company overview / history
Company Overview
Company name

Macbee Planet, Inc. (7095-JP)

Establishment dateAugust 25, 2015

Capital2,631 million yen (as of end-July 2023)

Business description Provision of data-driven marketing analytics services
Head office location

3-11-11 Shibuya, Shibuya-ku, Tokyo

No. of employees

143 (as of end-July 2023)
History

Aug. 2015

Established Macbee Planet, Inc.

Aug. 2015

Released data analytics platform “Honeycomb”

Nov. 2017

Released web customer service tool “Robee”

Mar. 2020

Listed on Mothers section of the Tokyo Stock ExchangeMar. 2021

Established Smash Co., Ltd.

Aug. 2021

Made α, Inc. a wholly owned subsidiary

Mar. 2023

Made Net Marketing, Inc. a wholly owned subsidiary7

Investment highlights
1

Vast market opportunities for LTV marketing

２

Very strong growth from a business with high recurring
revenues and rising sales per customer

Shift to a market beneficial for both advertisers and consumers by optimizing marketing based on LTVHigh retention rates, not only rising customer numbers, sales per customer also increasing as data accumulates

３

AI and technology driving high margins

４

Strong competitive edge through proprietary data acquisition
technology

Maximizing advertiser ROI (ad cost effectiveness) by applying DX to advertising and marketing

Expect continued high growth due to technology that is less susceptible to cookie regulations

5

Further acceleration of growth though strategic investment
To drive the market as the market leader, we will carry out M&A that produce synergies to achieve disruptive growth8

Business overview: What is LTV marketing◼ Digital marketing that utilizes data to maximize user expenditure and duration.

Data

Technology

Consulting

Zero Party Data

Analysis

Data Technology usage

Zero~3 rd Party Data tie-ups

AI

Success-based fee structure

Data Platform

Digital communication

Use of cancellations data①
Identify possiblehigh LTV users
and makeapproachInternet③ Fees received on a
success basis②
Send to company/
provide support
to raise LTV

Advertiser

9Driven by technology, high growth vs rivals■We have achieved far higher sales and OP growth compared to ad agencies and marketing technology firms.

OP CAGR*
Marketing technology companies

LTV marketing＋60%

High sales growth, but lossmaking or breakeven＋40%

Sales CAGR*High sales growth 43%
High OP growth
82%

＋20%

Loss
makingBreakeven

-20%

＋20%

＋40%

＋60%

＋80%

-20%

Analytics consulting
companies
Limited sales and OP growth rates-60%* 3-year CAGR of 19 TSE listed companies. As of July 2023

* Our CAGR for the period April 2019 to April 2023

10

FY04/24 forecasts

11

FY04/24 forecasts◼ Expect OP growth 30% higher than medium-term plan thanks to organic growth and consolidation of newlyacquired Net Marketing. Based on the results of the PMI, the next MTP will be disclosed in the next fiscal year.
Sales
+79%

FY04/23
results

MTP(Dec 2021)

19,58922,00035,000 ⚫ Soft ad market, but

+36%

+12%

+79%

2,162

2,200

2,850

(OPM)

11.0%

10.0%

8.1%

(YoY)

+75%

+2%

2,108

-

1,567*

-

+106%

-

(JPY mn)

Sales

(YoY)

OP

FY04/23

FY04/24

OP
+32%
RP

NP attributableto parent owner(YoY)

FY04/23

FY04/24
targetassumptions

tailwinds for LTV marketingfrom capture of high-quality
users via pay-forperformance model⚫ Organic growth at parent,
consolidation of Net
Marketing & value expansion
from supplying technology
32%⚫ Margins to temporarily dip,but GPM & OPM expected to
improve longer-term. Aim to
improve internet marketing
1,800
ad efficiency with more data
(may update forecasts)

2,800

+15%

FY04/24*Extraordinary profit includes ¥244mn in sales of Net Marketing shares

1212Profit contribution from Net Marketing◼ MT business demonstrated that Macbee Planet technology can improve Net Marketing processes.
Earnings contributions expected as data accumulates, but the plan is based on numbers with a high degree ofcertainty.

OP contribution

Expect earnings contribution
from 2H via improved adeffectiveness throughaccumulation of data
Data acquisition technology
has confirmed increased
results. Promoting further
utilization and customer
adoption

Growth in Robee, other solutions

OP growth from data accumulation

New OP generated by providing solutions from MT business
OP from organic growth in the ad business(mostly offset by goodwill：260mn/year)
1Q FY04/24

2Q FY04/24

3Q FY04/24

4Q FY04/24

13

❹ Future investment and M&A strategy, KPIs
◼ Aim to raise OPM and achieve sales growth through investment in talent and technology.

Sales
growthMorecustomers

Highercustomer
spend

Improve
OPM

M&A
MarTech(optimize marketing)

M&A
AdTech(optimize user
attraction)

Improve LTV of new users and upsellby improving customer satisfaction

Improve gross margin by acquiring
AdTech and media companies that
CoGS in the AC business

Highergross
margins

Talent hiring/training

By hiring more staff, increase no. ofcustomers
Achieve improvements in sales per
customer and labor productivity by adding
talent that can be immediately effective

Raise laborproductivity

Improvetechnology

Improve customer outcomes andlabor productivity by improving
effectiveness of advertising using AI

14❹ Future investment, M&A strategy■Top priority on investment in talent and PMI. At the same time, continue to prioritize expansion of areas where
we can leverage our existing edge, we will consider investment in nearby areas and new businesses.

New areas

Low

Synergies

p
r
i
o
r
i
t
y

High

Investment, M&A
in related
greenfield areas

M&A in areas withmany synergies

Strengthen existing
business/PMI

Expected
investment-

New areas highly compatible with our business,
technologies and customers
X - Tech

Upto 1bn

Provide LTV marketing to existing users
MarTech(optimize marketing)

Several 100mn– several bn

・marketing automation tools
・CRM tools
・various digital communication tools

Shift new user acquisition to LTV marketing
AdTech(optimize user
attraction)

Several100mn/year

・Prioritize finessing of LTV marketing

・Consulting companies
・online ad agencies
・ad distribution media et

Growth through PMI with Net Marketing and HR
investment
Hiring/training
tech

・Provide technology to Net Marketing to
generate synergies
・Accelerate growth through increased hiring・Improve labor productivity via training

15

Productivity enhancement◼ Progress with in-house technology has improved labor productivity, with both unit price per customer and grossprofit per consultant increasing year by year.
The unit price of newly acquired clients is also increasing, building a customer base for mid- to long-term growth.
GP per person (¥mn)

Annual revenue per customer
Top 20
customers
Newly
contracted
customers*

+215%

241

34

87

68

47

167

Number of consultants

100
+

93%
57

43

41

FY4/20FY4/21

FY4/22

FY4/23

Top 20annual unit
price

100

167

241

315

Top 20
share

c.70%

c.80%

C.80%

C.70%

Newly
contracted
annual unit
price

30

43

41

57

30

+156%

315

*Unit price is based on the unit price of existing customers for FY4/20 as 100*New: Annual sales in FY following FY in which contracted

34

39

34

47

FY4/20FY4/21

FY4/22

FY4/23

Front officefull-time
employees

34

34

39

47*

Gross
profit

1,173

1,597

2,649

4,067

GP perperson

34

47

68

87
＊Macbee Planet only16

❷Progress: Build a technology framework applicable to any industry■By using DATAHIVE (still under development), we have built a system that can support marketing in various
industries through data infrastructure construction, visualization and utilization.
Data visualization

Develop data frameworkAdcreation

Ad data

Onlinecustomer
service data

Leveraging data, create results

extract

ConvertClient data

Develop data systems
and merge

Onlinecustomer
service

write

DATA
visualization

BI tools

・・・

Through use in ad
operations, a POC
shows a reduction incosts and a rise in
the number ofresults generated
Currently checking
optimal usage
methods

Leverage data

Support marketing in any industry

17

❸Progress:Create a customer portfolio less dependent on specific clients■Market size of existing wellness and financial services industries is large, ample scope for development in otherindustries.
シェア拡大領域
Share
expansion

Advertising market size (by industry)

FInancial services(ease of shift to LTV marketing)

Pay for performance ad volume

JPY510.3bn

Existing industry (high share of own sales)

brokers, consumer
finance, insurance

業務用機器

Existing industry (low share of own sales)
frontier

Other industries

Staffing
JPY39.8bn

飲料・嗜好品Food
JPY95.1bn

Electricalappliances
JPY71.6bn
Drinks/luxuries
電気製品
JPY186.7bn

Office equipment
医療JPY247.7bn

Retail
JPY35.7bn

Education
JPY57.3bn

Real estate,
construction
JPY177.1bn

BeautysalonsSubsc
ription

Gyms

Medical
JPY78.4bn
Automotive
JPY225bn

Cosmetics
JPY245bn

Telco
JPY261.2bn

Focus on LTV (CV quality)(suitability to LTV marketing)* Market sizes and classifications are from Dentsu's 'Advertising expenditures in Japan' (2022)

18

Initiatives in the current financial year
◼ We prepare for continuous high growth during the next medium-term plan by working on initiatives for future
growth in parallel with initiatives that will contribute to business performance in the current fiscal year.

Current Medium-term plan (FY4/24)
Initiatives for current year
earnings

AC Business
MT BusinessTechnology

M&A

Initiatives for future growth

Next medium-termplan (FY4/25FY4/27, plan)

PMI of Net Marketing acquisition, progresswith holding co structure
Implement and expand LTV
marketing (current level)

Provide advanced
advertising operations
that utilize technology
such as DATAHIVE－

Talent acquisition andtraining, structureformalization

Development andlaunch of new services
and functions

Achieve strong sales
and profit growththroughenhancement of LTV
marketing

Investment and M&A in
unexplored, related areas

M&A in areas withstrong synergies

19

Q1 FY04/24 results

20

FY04/2024 Q1 results summary◼ FY4/24 OPM is expected to decline YoY due to M&A impact (goodwill, etc.), but thanks to productivity gains
from peak season customers, Q1 OP was 35% of FY3/24 plan, and Q1 OPM was above the FY plan.
Sales

Sales

+48%

＋103%
FY4/24plan

22→24CAGR

＋９%

Q1 vs
FY plan

FY4/24Q1 result

FY4/23Q1 result

(Ref)
22→23
YoY

23→24
YoY

(¥mn)

9,169
4,150

4,521

FY4/22 Q1

FY4/23 Q1+74%

35,000

26%

9,169

4,521

+9% +103%

EBITDA

-

-

1,121

497

+47% +125%

OP

2,850

35%

1,004

449

＋35% +123%

OPM

8.1%

-

11.0%

9.9% +1.9pt +1.1pt

FY4/24 Q1

Operating profit

OP

Sales

＋123%

22→24CAGR

＋35%

1,004
333

449

FY4/22 Q1

FY4/23 Q1

FY4/24 Q1

21

OP variance analysis (QoQ)◼ Q1 sales and profits grew strongly QoQ due to bricks and mortar peak season, as well as business growth andsynergies between Macbee Planet (MP) and Net Marketing (NM).
Q2 sales and profits expected to decline QoQ, as peak season growth reverses.
MP→NM
GP growth due totechnology

GP due due tobusiness
growth at MP& NM

NM consolidation
impact etc.

(Units: ¥mn)

+ factors

+347

QoQ

QoQ

9,169

5,502 +3,667

+67%

GP

1,950

1,084

+866

+80%

300

-

+300

-

946

427

+518

+119%

One-off
expenses

114

-35

+149

-

Ongoing
expenses

832

462

+370

+80%

OP

1,004

656

+347

+53%

OPM

11.0%

11.9%

-0.8pt-SG&A- factors

OP

FY4/23 Q4resultSales

Transient GP

MP & NM
Wellness industry peakseason (seasonality)

FY4/24 Q1
resultsc.

22

Quarterly sales trends
YoY ＋103%

Transient sales

QoQ ＋67%

Sales

Peak season forbeauty salons(bricks & mortar)

Peak season forbeauty salons(bricks & mortar)

Securities special
demand(FY4/21 Q1)Securities special demand(FY4/20 Q1-Q2)

FY4/20

(¥mn)

Q1

Sales

Due to covid-19
no peak seasons forbeauty salons(bricks & mortar)

Q2

FY4/21
Q3

Q4

Q１

Q２

FY4/22
Q3

Q4

Q１

Q２

FY4/23
Q３

Q4

Q１

Q２

FY4/24Q３Q４Q１2,015 1,627 1,321 1,501 1,772 2,320 2,609 3,076 4,150 3,244 3,400 3,630 4,521 4,354 5,211 5,502 9,169※Switched to consolidated financials from FY4/21, FY4/20 was non-consolidated.

23

Image of Q2 results◼ Q2 sales and profits expected to decline QoQ on Q1 seasonality.
Sales expected to grow into H2 on Net Marketing synergies and new customer acquisition.

Sales❶
Growthpotential

New customer acquisition is good,and may be able to cover ❶impactNegativefactor❶Q2 sales to contract QoQ from
Q1 bricks and mortar seasonal
boost.

OP

FY4/24 Q1

FY4/24 Q2

Flat to down from Q1

Down from Q1
Growthpotential

Net Marketing synergies may
grow sales, but expected from Q3.

Negativefactor

GPM of new customers tends tobe low, so new sales is notexpected to be enough to cover ❶24

Others25

8 th anniversary commemorative dividend◼ Commemorating the “8 th” anniversary of our founding, which we value as a numerical expression of our identity andphilosophy ,we intend to pay a commemorative dividend*¹.

We had previously commented that “We will begin toconsider dividends three years after listing”, and havedecided to pay a dividend to commemorate the 8 thanniversary of our founding.
■■■ ■■■■■■■■■■■■

Record date

Macbee (“Bee” that spreads happiness: ８)*²
Basic Policy on Shareholder Returns
・We believe that business expansion will lead toenhanced corporate value for shareholders, andour policy is to increase internal reserves.
・We will consider profit distribution in line withbusiness results, while balancing with internal
reserves.
・Policy for FY4/24 ordinary dividends will be decided
upon consideration of future business performanceand the business environment.

Dividends per
share

Projection

Most recent
dividend forecast(June 13, 2023)

October 31, 2023-

¥56
(Ordinary ¥0)(Commemorative ¥56)-

Total amount ofdividends¥200,371,808-

Effective date

Mid-December, 2023-

Dividend source

Retained earnings-

Note: *¹ In Japanese both “bee” and “8” are pronounced hachi.
*² “Macbee (“Bee” that spreads happiness: 8)” is a play on words in Japanese, “Bee” that spreads is also pronounced “Maku-bee=Macbee”

26

appendix
・Business Performance
・Business environment

・Business description

27

Business Performance28

Earnings◼ Sales & OP to increase following acquisition of Net Marketing. Due to differences in margins and goodwill
amortization, GPM, OPM expected to temporarily decline, but should improve over the longer term.
35,000

Sales
Sales

+48%

OP
GPM

20.8%

FY4/18-24
CAGR

OPM(JPY mn)OP

19,589

+72%

14.2%

FY4/18-24
CAGR

14,425

GPM to temporarily
decline due to M&A
and goodwill
amortization

11%

9,779

3,361

4,685

8.1%

6,466

3.3%

110

198

374

785

1,237

FY4/18

FY4/19FY4/20FY4/21

FY4/22

2,162

2,850

FY4/23

FY4/24 E

29

Quarterly earnings trends
FY4/21

FY4/22

FY4/23(Units: ¥mn)

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Sales

1,772

2,320

2,609

3,076

4,150

3,244

3,400

3,630

4,521

4,354

5,211

5,502

9,169

-12.1%+42.6%+97.5%+104.9%+134.2%+39.8%+30.3%+18.0%+8.9%+34.2%+53.3%+51.6%+102.8%

305

373

404

513

575

664

652

757

915

893

1,173

1,084

1,950

(GPM)

17.2%

16.1%

15.5%

16.7%

13.9%

20.5%

19.2%

20.9%

20.3%

20.5%

22.5%

19.7%

21.3%

（YoY)

-11.0%+26.1%+54.4%+89.2%+88.4%+77.7%+61.2%+47.5%+59.2%+34.5%+79.9%+43.1%

113.0%

168

175

206

261

241

359

399

411

466

421

589

427

946

Personnel

109

108

115

95

118

131

155

160

173

175

195

178

312

Advertising

6

9

14

9

12

3

7

4

2

4

13

7

2

Recruiting &education

9

11

8

18

5

11

13

21

13

24

15

8

41

R&D

-

-

-

-

9

5

3

3

3

3

1

1

18

Depreciation

2

3

3

4

4

5

7

9

6

9

8

8

10

Goodwill
amortization, M&A
related

-

-

-

-

-

85

41

41

41

41

71

41

106

Systemoutsourcing

4

10

9

7

9

12

9

8

5

4

3

4

5

Other

35

32

54

126

81

104

160

162

220

157

279

180

448

137

198

197

252

333

304

253

346

449

472

584

656

1,004

(OPM)

7.7%

8.6%

7.6%

8.2%

8.0%

9.4%

7.4%

9.5%

9.9%

10.8%

11.2%

11.9%

11.0%

（YoY）

-35.0%+72.6%+177.4%-+143.4%53.5%+27.8%+37.4%+34.8%+54.9%+130.8%＋90.0%+123.6%（YoY)
Gross profit

SG&A

OperatingprofitQ1

Q2

FY4/24※Introduced consolidated financial statements from end of FY4/21, FY4/21 Q3 and earlier are non-consolidated.

Q3

Q4

Q1

30

Industry segmentation◼ Revised industry segmentation following consolidation of Net Marketing

FinanceFinanceFinance

Banks

Card loan
Credit card

Banks

Housing loans

Securities

Securities
Forex

Forex

Forex
Cryptocurrency

Other
financial

Insurance

Otherfinancial

Wellness
Bricks &mortarInsurance

Merge

Merge

Consumerfinance

Card loan
Credit card
Housing loans

Investment

Securities & forex
Cryptocurrency

Wellness

Wellness

Bricks &mortarBeauty salons
Gyms

Beauty salons
Gyms

Bricks &mortarBeauty salons
Gyms

New

MedicalOnline examination
Medical hair removal &treatment

Cosmetics EC

Cosmetics online sales

MedicalOnline examination
Medical hair removal & treatment

Merge

EC

Cosmetics online sales
Health foods online
sales

Health foodEC

Health food online sales

OthersHealth foodEC

Health food online sales

New

Others
Recruitment media & training
Professions
Apps & games
Communications, etc.

Human talent

Human talent

Recruitment media
Job change service
Apps & games
Real estate & automotive

Human talent

Recruitment media
Job change & training
services

OthersInsurance, professions,apps, real estate,
automotive, games,
communications, etc.

31

Sales trends by industry
FY4/23
Q1
Sales(Units: ¥mn)

FY4/24

Q2
Sales

WeightQ3
Sales

Weight

Q4
Sales

Weight

Q1
Sales

WeightWeight

ALL

4,517

-

4,357

-

5,211

-

5,502

-

9,169

-

Finance

2,110

47%

2,107

48%

2,584

50%

3,132

57%

3,567

39%

Consumer finance

697

15%

739

16%

891

17%

1,114

20%

1,350

15%

Investment

1,413

31%

1,368

31%

1,693

32%

2,018

37%

2,217

24%

1,443

32%

1,530

35%

1,609

31%

1,205

22%

3,539

39%

Bricks & mortar

1,145

25%

1,281

29%

1,429

27%

1,035

19%

1,825

20%

Medical

3

0%

2

0%

1

0%

1

0%

1,395

15%

EC

294

7%

246

5%

177

3%

166

3%

318

4%

Human talent

91

2%

90

2%

136

3%

260

5%

873

10%

Others

870

19%

629

14%

881

17%

903

16%

1,189

13%

Wellness32

Balance sheet＊

FY4/24 Q1

Change (amount)

Current ratio

17,51918,586+1,066206%

13,877

15,062+1,185(Cash & deposits)(9,663)(9,930)+267

Equity ratio

Non-current assets

3,642

3,523

-118

50.4%

9,352

9,139

-213

Current liabilities

7,409

7,305

-103

Non-current liabilities

1,942

1,833

-108

8,167

9,446

+1,278

8,097

9,375

+1,278(Units: ¥mn)

FY4/23

AssetsCurrent assets

Liabilities

Net assets

Shareholders’ equity＊Includes the effect of consolidating Net Marketing, as well as debt and capital increases.

33

Business environment

34

Target market: Internet advertising market◼ Digital shift of advertising budgets continues, as a result, Internet advertising surpassed Mass advertising andbecame a ¥3trillon market. Internet advertising has continued to grow at double-digit rates despite therecession, and is expected to continue to achieve strong growth in the future.
Mass advertisingInternet advertising

30,912COVID19

CAGR

The
financialcrisis+11%

Great eastJapanearthquake

6,983

2008

2009

2010

2011

2012

2013

2014

Source: Dentsu, Advertising Expenditures in Japan, 2008-2022

2015

2016

2017

2018

2019

2020

2021

2022

35

Challenges in the Internet Advertising Industry◼ Digital advertising budgets have been squandered on targets that will never become customers. Cookie
regulations are expected to further reduce accuracy and worsen cost-effectiveness.
Nearly 40% of digital ad budgets are wasted on thewrong audiences, leaving significant room for ROI
improvement

GDPR, CCPA, and Other Privacy Regulations Advance.
Cookie-based targeting becomes even more difficult.

63%

ITP

(delivered to thecorrect audience)

37%(delivered to thewrong audience)

Cookierestrictions

GDPR

CCPA

Exhibit: Nielsen Digital Ad Ratings, U.S. Benchmarks
Report - Q2 2019-Q1 202036

What we want to achie:
Transformation of the Internet advertising industry◼ As the market leader in LTV marketing, we have solved the problems of the Internet advertising industry,
Converting the ¥3 trillion Internet advertising market to LTV marketing.
Client Needs: To increase LTV and optimize marketing ROI

Current Internet Advertising Issues

resu
lts

Data

3
trillionyenmarketAdvertising costs do not always translate into
sales.
Cost: Charging system based on ad serving and numberof clicks
KPI: Number of prospects User acquisition cost

Cookie restrictions reduce data accuracy
Due to decreased targeting accuracy of ads
Acquisition costs soared and ROI declined

skill

Advertising management skills are in the
genus
Results vary depending on the experience of the person in
charge.

LTV MarketingPay-for-performance model directly
resu linked to long-term sales
lts

Cost : Performance-based on sales and LTV
KPI: Number of continuing users attracted LTV/ROI

Data

Proprietary Data Acquisition
Technology
3rd To be independent of Party Cookies
Stable results generation even after cookie regulation

Optimization by AI
skill

Immediate increase in workforce and productivity
High service quality independent of theexperience of the person in charge

37

Business description

38

Source of competitive strength◼ LTV marketing is achieved through data, technology, and consulting.

LTV marketing components

Data

Technology

Consulting

0 party data

AnalysisUse of data technology- Reasons for cancellations- VOC gathering- Loyalty as data

- Machine learning- Audio analysis- Emotion analysis- Cancellation analysis

0 to 3rd party data links- Behavioral data
- Psychological data
- Purchase data
- Attribute data

Data platform- Integrate data for the same ID- Visualize user
touchpoints/psychology

AI- Data-driven- Use of own products- Leverage promptly using templates

Pay-for-performancebasis- Withdrawal prediction- LTV prediction- Cancellation prediction- Delivery algorithm- Attract users who would continue to
use the services- Expertise in increasing LTV

Digital communications

Use of cancellation data

- Hospitality- Chatbots- Popup- 3D creative- Lower churn rate by preventing
cancellations- Identify issues in marketing39Positioning◼ Unlike traditional quantity-oriented marketing which other agencies offer, we focus on the quality ofcustomer.We will continue to achieve rapid growth by reshaping Japan’s marketing landscape.
Technology

FutureGrowth rate
+40%～*4

Growth rate
+14% *3

Mar-TechCS
PlatformMarketing
optimization

Marketingautomation

Past

Onlinecustomer
service

Growthrate *2+15%

Ad-TechDMPSFANative
ads

DSP

User
gathering
optimization

Non-Tech

Chatbots

BI
tools

Searchengineadvertising

Growthrate *1
-3%
Mass
media
ads

Affiliate
ads

SNS
ads
Ad
networks
Video
ads

Influencer
s

Pure
ads
E-mailads

Mass media*1 Traditional market expenditures in “2021 Advertising Expenditures in Japan” (Dentsu)*2 Traditional market expenditures in “2021 Internet Advertising Expenditures in Japan” (Dentsu)

Prospective users

Ongoing users

Target*3 “Movement in scale of online customer service market and forecasts” (ITR)
and “DMP (Data Management Platform) & MA (Marketing Automation) Market 2020” (Yano Research Institute)*4 Macbee Planet Sales CAGR (FY04/18 to FY04/22)

40

Business characteristics◼ We accelerate growth by increasing new customers and raising per-customer spending.

Increase in number of customers

Per-customer spending

Customers acquired in 1st year
Customers acquired in 2nd year
Customers secured in 3rd year

No. of customers

Customers acquired in 4th year
Customers acquiredin 5th year

11st

2nd
2

33r

d

4t
4
h

Raise per-customer spending

5 year5thUpside from
campaigns andother measures
Increased
results fromgatheringdata

Stable base for generating results
established in the first year

Time

41

Business process diagram
Ad delivery
using
proprietary
AI/3D

New users

Internetadvertising
User referral
Ad delivery
platform(consumer)

Ad delivery

Pay-forperformance

ASP*
Bid

Programmaticad

Referral ofrecurringusers

ClientMedia

User
attraction

ADNW*

Landing page

DSP*

Search engine
Social media
Influencers

Advertisingexpenses

Web customer
service

DSP/ADNW

Existing
users

Proprietary
media
partners

Approval of results

Post

Pay-for-performance

Cancellation pageHandling of cancellations and promotion of continuation

Performance compensation(unit price × no. of results generated)

Prevent
cancellation

Approval of results*DSP = Demand Side Platform, ADNW = Advertising Network, ASP = Affiliate Service Provider

Monthly fee + performance compensation(unit price × no. of cancellations prevented)

42

Disclaimer
This document contains forward-looking statements based on information available to theCompany at the time it was prepared and involves risks and uncertainties. As such, thesestatements do not guarantee future business results or outcomes.
Actual results may differ materially from the forward-looking statements in this document
due to changes in the business environment or other factors.

The above risks and uncertainties include, but are not limited to, factors such as economic
conditions in Japan and overseas, and trends in the industries in which the Company
operates.
The Company shall assume no obligation to update or revise any forward-looking
statements contained in this document, even if new information or events occur in the
future. The information contained herein, other than about the Company, is quoted frompublicly available information, and the Company does not guarantee the accuracy orappropriateness of such information.

43