Independent Leading Corporate Governance Research

Metrical Inc

METRICAL INC. is an independent leading Corporate Governance research firm in Japan where Corporate Governance is increasingly recognized as an important element on corporate management in these days. Thus, CG research and solutions would become an essential component of global capital markets and play important to contribute to transparency of the markets and maximize shareholders’ value in Japan. 

METRICAL INC. provides Corporate Governance research and analysis including rating services, and  also offers investment research and IR services with solutions and customized profound research on CG and IR issues.

Japan's Governance: Retirement of Treasury Stock and Performance, Corporate Governance

Japan's Governance: Dividend Policy and Performance, Corporate Governance

Japan's Governance: Equity Issuance and Performance, Corporate Governance

Japan's Governance: 2 Disclosures on August 23 (Case: Equity Financing of Showa Denko (4004))

Japan's Governance: Equity Finance Update: Demaekan (2484)

Japan's Governance: Equity Finance Update Demae-Can Vol.2

Japan's Governance: 2 Disclosures on August 23 (Case: Yamaha's Sale of Policy Shares & ShareBuyback)

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<p>I would like to add a few things that I left out in my previous article "Equity Finance Update Demae-Can (2484) Vol.2". Regarding the approximately 83 billion yen raised through equity finance, based on the plan in the disclosed information, the fund will be used mainly for marketing expenses, and the remaining 10 billion yen will be used for capital expenditures to enhance systems. The company said, "Even if we invest 40-50 billion yen in marketing expenses this fiscal year, we have 10 billion yen in cash on hand before the capital increase, so we will be able to invest the same amount in marketing expenses next fiscal year as we did this fiscal year, and there is no need for new equity financing. As for the outlook for the current fiscal year, the KPIs for GMV and active users were 330 billion yen (203% YoY) and 12 million users (163% YoY), respectively. As I mentioned in my previous article, after the analyst meeting, we were told that the company was expecting an operating loss of 50-55 billion yen for this fiscal year. After the analyst meeting, our stock price has continued to weaken. One of the reasons for this is that while the company announced that it would increase marketing costs this fiscal year, it did not provide a specific forecast for the convergence of these costs. The company plans to increase the ratio of GMV to advertising expenses, which accounts for the majority of marketing costs, from 9.1% in the previous fiscal year to the mid-10% range in the current fiscal year, but it has set that figure as a medium-term target of 2% or less. I suspect that many investors are concerned about the fact that the timing of the convergence of marketing costs is unclear.</p>

I would like to add a few things that I left out in my previous article "Equity Finance Update Demae-Can (2484) Vol.2". Regarding the approximately 83 billion yen raised through equity finance, based on the plan in the disclosed information, the fund will be used mainly for marketing expenses, and the remaining 10 billion yen will be used for capital expenditures to enhance systems. The company said, "Even if we invest 40-50 billion yen in marketing expenses this fiscal year, we have 10 billion yen in cash on hand before the capital increase, so we will be able to invest the same amount in marketing expenses next fiscal year as we did this fiscal year, and there is no need for new equity financing. As for the outlook for the current fiscal year, the KPIs for GMV and active users were 330 billion yen (203% YoY) and 12 million users (163% YoY), respectively. As I mentioned in my previous article, after the analyst meeting, we were told that the company was expecting an operating loss of 50-55 billion yen for this fiscal year. After the analyst meeting, our stock price has continued to weaken. One of the reasons for this is that while the company announced that it would increase marketing costs this fiscal year, it did not provide a specific forecast for the convergence of these costs. The company plans to increase the ratio of GMV to advertising expenses, which accounts for the majority of marketing costs, from 9.1% in the previous fiscal year to the mid-10% range in the current fiscal year, but it has set that figure as a medium-term target of 2% or less. I suspect that many investors are concerned about the fact that the timing of the convergence of marketing costs is unclear.

Japan's Governance: Equity Finance Update Demae-Can (2484) Vol.3

Demae-Can Co., Ltd.

Japan's Governance: Equity Finance Update Demae-Can (2484) Vol.3