1. Smaregi, Inc.
  2. Investor Relations
  3. Management Policy
  4. To Our Shareholders (2020)

To Our Shareholders and Investors (2020)
Excerpt from the notice of convocation of the 15th Ordinary General Meeting of Shareholders

Evolving with the Times The birth of an ecosystem centered on Smaregi

For the fiscal year ended April 2020, net sales came to 3,249 million yen (+64.4% YoY), and operating profit reached 751 million yen (+74.0% YoY; operating profit margin of 23.1%). We were able to achieve significant growth again this year, and I would like to express my sincere gratitude for your support.

This year brought two major waves.

Special demand for POS registers driven by the reduced tax rate subsidy program

The first was the special demand for POS register purchases created by the subsidy program for measures against the reduced tax rate. We received an extremely large volume of orders, with a particular rush of inquiries in August and September, right before the deadline. Even amid this high-pressure period, we made a point of responding to each customer carefully and were able to get through it without any major issues. This special demand, which allowed us to secure a large volume of new contracts with almost no advertising spend, gave our Company a very strong tailwind.

The impact of the COVID-19 pandemic

The other major wave was the impact of the ongoing COVID-19 pandemic, which continues to this day. Media coverage has focused heavily on the severe damage to restaurants in particular, but looking at Smaregi's own POS data, sales at inbound-tourism-related stores began falling sharply in January and February, followed by event-related businesses in March, and then restaurants and retailers after the state of emergency declaration in April. Amid this situation, inquiries for new Smaregi contracts fell sharply.

For the fiscal year ending April 2021, we intend to flexibly adapt our business in line with the broader social shifts triggered by the pandemic. Specifically, we will move quickly to develop and roll out solutions such as takeout and delivery support for restaurants, contactless self-checkout, and e-commerce integration for retailers. We will also actively reform the way our employees work.

We are also finally releasing the new version we have long been preparing, "Smaregi 4." This will allow third parties to develop and sell apps on top of Smaregi, giving rise to a large ecosystem centered on Smaregi. Stores using Smaregi will be able to easily take advantage of a wide variety of apps that work seamlessly with the platform.

Smaregi will continue to evolve along with the changing times.

We ask for your continued, enthusiastic support as our shareholders.

Hiroshi Yamamoto

July 2020
Hiroshi Yamamoto

History of Executive Messages

  1. Smaregi, Inc.
  2. Investor Relations
  3. Management Policy
  4. To Our Shareholders (2020)
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