Interworks Confidence Inc. · TSE:7374
Interworks Confidence — Q2 FY2024 Earnings Presentation
35 slides from Interworks Confidence's earnings presentation, November 2023
Slide 1: Financial Results Briefing Material, Q2 FY2024
2nd Quarter of Fiscal Year Ending March 2024 (FY2024) Financial Results Briefing Material “Kabushiki Kaisha Confidence Interworks” (English name: “Interworks Confidence Inc.”) Securities code ： 7374
Slide 2: Table of Contents
Table of 01 E xec u t ive S u m m a r y P. 3 Contents 02 C o m pa n y O ver v iew P. 7 03 C o n so lida ted F in a n c ial Resu lt s a n d S egm en t Resu lt s P. 1 3 04 D iv iden d D ist r ibu tio n P. 2 5 05 P ro gress of G ro w t h St ra tegies／ B u sin ess To p ic s P. 2 7 2
Slide 3: Executive Summary
01 Executive Summary
Slide 4: Financial Highlights of Q2 FY2024 (Cumulative)
Financial Highlights of Q2 FY2024 (Cumulative) As a result of the merger with Interworks on August 1, Q2 FY2024 saw significant year-on-year growth for both revenue and gross profit Despite the amortization of goodwill associated with the merger, operating profit continued to increase. The opera
Slide 5: Trends in Revenue / Operating Profit Over the Years
Trends in Revenue / Operating Profit Over the Years Due to the merger with Interworks, Interworks’ business results were consolidated from August onwards The progress rate against the full year forecast announced at the time of the announcement of the Q1 FY2024 financial results was 40.6% for re
Slide 6: Summary of Dividend Forecast for FY2024
Summary of Dividend Forecast for FY2024 The full year dividend for FY2024 is expected to be 55 yen, an increase of 7 yen (YoY). The interim dividend was decided at 25 yen, an increase of 5 yen (YoY) The following is a various indicators related to dividends with an assumption of the current full
Slide 7: Company Overview
02 Company Overview
Slide 8: Merger with Interworks, Inc. (as of August 1, 2023)
Merger with Interworks, Inc. (as of August 1, 2023) The new company, Interworks Confidence Inc. (securities code: 7374), started operations on August 1, 2023, with prior approval and resolution on the merger made at the general meeting of shareholders of each company The merger generated goodwil
Slide 9: Company Overview
Company Overview Company Kabushiki Kaisha Confidence Interworks (English name: Interworks Confidence Inc.) name Vision Representative Nobuyuki Takushi, President Established August 2014 BYGS Shinjuku Bldg. 10F Head office Empowering Professionals to 2-19-1 Shinjuku, Shinjuku-ku, Tokyo Local Office N
Slide 10: Business Overview: Who We Are
Business Overview│Who We Are D E V E LO P I N G A S E G M E N T - S P E C I F I C H R B U S I N E S S * Core Value Te c h n i q u e s a n d t o o l s t h a t a r e c o m m o n l y u s e d a c r o s s i n d u s t r i e s . HR Solution Media Recruitment Attraction techniques Matching Content creation
Slide 11: Business Overview: Composition of Revenue
Business Overview│Composition of Revenue HR Solution business (staffing, outsourcing) 71.4% ・ Specializing in the gaming and Staffing Outsourcing Freelancers entertainment industries Composition of revenue Staffing and outsourcing services that meet the needs of each phase and department In April 20
Slide 12: Business Overview: Segmentation After the Merger
Business Overview│Segmentation After the Merger As a result of the merger, segments and service groups were changed as shown in the figure below, and the new segment groups were reported from the financial results for Q2 FY2024 Before the merger: Segments of each company After the merger: New segm
Slide 13: Consolidated Financial Results and Segment Results
03 Consolidated Financial Results and Segment Results
Slide 14: [Consolidated] Financial Highlights of Q2 FY2024 (Cumulative)
[Consolidated] Financial Highlights of Q2 FY2024 (Cumulative) In the first financial results after the merger with Interworks on August 1, 2023, even after posting amortization of goodwill, the company grew steadily on the basis of operating profit Although ordinary profit increased only slightl
Slide 15: [Consolidated] Quarterly Results Trends
[Consolidated] | Quarterly Results Trends As a result of the merger with Interworks, revenue increased significantly in Q2. Even excluding the effects of the merger, the former Confidence still posted a 10.2% year-on-year increase in revenue Operating profit also saw solid year-on-year growth at
Slide 16: HR Solution Business - Staffing and Outsourcing: Financial Highlights
[HR Solution Business - Staffing and Outsourcing] Financial Highlights of Q2 FY2024 The majority of this segment is dominated by the HR Solution business of the former Confidence Inc. In our mainstay staffing business, we steadily increased the number of creator staffing assignments and maintain
Slide 17: HR Solution Business - Staffing: Trends in Major KPIs
[HR Solution Business - Staffing] Trends in Major KPIs Creator staffing assignments, which serve as the foundation of the Company’s recurring income model, steadily increased by 73 from the end of the same quarter in the previous year The creator utilization rate continued to be at a high level
Slide 18: HR Solution Business - Recruitment: Financial Highlights
[HR Solution Business - Recruitment] Financial Highlights of Q2 FY2024 In this segment, the recruitment business of the former Interworks accounts for a large portion, and performance resulted in a significant year- on-year increase in revenue and profits for the former Confidence alone Although
Slide 19: HR Solution Business - Recruitment: Trends in Major KPIs
[HR Solution Business - Recruitment] Trends in Major KPIs The number of contracts closed in Q2 has been on a recovery trend from the previous quarter, and the average unit price of the contracts has remained at a high level While maintaining high productivity, we continue to endeavor to increase
Slide 20: Media & Solutions Business: Financial Highlights
[Media & Solutions Business] Financial Highlights of Q2 FY2024 In this segment, the Media & Solutions business of the former Interworks accounts for a large portion, and performance resulted in a significant year-on-year increase in revenue and profits for the former Confidence With regard to jo
Slide 21: Media & Solution Business - Job Advertisements: Trends in Major KPIs
[Media & Solution Business - Job Advertisements] Trends in Major KPIs The number of job postings has been recovering since May. An upward trend continued in this quarter The number of business partners also increased by 47 in Q2 compared with Q1. The unit price per customer was on an upward tren
Slide 22: [Consolidated] Quarterly SG&A Expenses Trends
[Consolidated] Quarterly SG&A Expenses Trends Merger with Interworks significantly changed the size and composition of SG&A expenses However, we will continue to thoroughly control costs and maintain an organizational structure that generates solid operating profit even after the merger ▍Quarter
Slide 23: [Consolidated] Factor Analysis of Increase/Decrease in Operating Profit (YoY)
[Consolidated] Factor Analysis of Increase/Decrease in Operating Profit (YoY) As a result of the merger, Interworks’ gross profit/expense were added. In addition, although amortization of goodwill from Q2 FY2024 was incurred, we secured an increase in profits by offsetting increase in costs throug
Slide 24: [Consolidated] Balance Sheets/Statements of Cash Flows
[Consolidated] Balance Sheets/Statements of Cash Flows As a result of the merger, cash and deposits increased by 1.60 billion yen, net assets by 3.68 billion yen, and total assets by 3.87 billion yen compared with the end of the previous fiscal year (goodwill: 1.62 billion yen) Net cash was 3.64
Slide 25: Dividend Distribution
04 Dividend Distribution
Slide 26: Summary of Dividend Forecast for FY2024
Summary of Dividend Forecast for FY2024 The full year dividend for FY2024 is expected to be 55 yen, an increase of 7 yen (YoY). The interim dividend was decided at 25 yen, an increase of 5 yen (YoY) The following is a various indicators related to dividends with an assumption of the current full
Slide 27: Progress of Growth Strategies/Business Topics
05 Progress of Growth Strategies/ Business Topics
Slide 28: Progress in Growth Strategies/Business Topics
Progress in Growth Strategies/Business Topics ▍Business topic summary [2023] FY2024 Make equity investment Hosting “Web3 Launched a nurturing- Established a Invested in Indigames Held “Game DX Forum” in Protagonist Inc., which Connections Tokyo” type HR solution service consolidated subsidiary (offs
Slide 29: Growth Strategy: Expand Matching Solutions
Growth Strategy: Expand Matching Solutions Press release dated September 7, 2023 Expansion of matching solutions Expand into new business areas Web3.0 Metaverse Other areas •Investment in Indigames, which handles offshore game development and 3DCG contracting ▍Overview of Indigames, Inc. ▍Purpose of
Slide 30: Growth Strategy: Enhance Business Management Efficiency by Establishing an Ecosystem
Growth Strategy: Enhance Business Management Efficiency by Establishing an Ecosystem Press release dated September 29, 2023 HR Enhancement of business Media Outsourcing management efficiency by establishing an ecosystem Held Game DX Forum HR Solution × Media • Customer network cultivated through the
Slide 31: Appendix
Appendix.
Slide 32: Projection of Future Growth
Projection of Future Growth In addition to the steady growth achieved by Confidence alone since its listing, the merger has increased the bases that drive revenue Through the process of expanding the business scale, aim to transform ourselves into an enterprise that can compete with companies al
Slide 33: Summary of Earnings Forecast/Dividend Forecast for FY2024
[Consolidated] Summary of Earnings Forecast/ Dividend Forecast for FY2024 The following is a summary of earnings forecast and various indicators of Interworks Confidence Inc. for FY2024 ending March 2024 Estimated by factoring in the impact of integration-related expenses that will temporarily a
Slide 34: Assumptions Underlying the Preparation of Earnings Forecast
Assumptions Underlying the Preparation of Earnings Forecast ▍Target indicators for earnings forecast and dividend forecast ▍Assumptions underlying the preparation of earnings forecast for FY2024 for FY2024 Target indicators Assumptions underlying the preparation of earnings forecast • As the merger
Slide 35: Empowering Professionals to Create the Future Together
Empowering Professionals to Create the Future Together Inquiries about this material: IR staff, Finance and Planning Division （ir@ciw.jp） Handling of this material This material includes forward-looking statements. These are nothing but the statements prepared on the basis of the information availab
Interworks Confidence — Q2 FY2024 Earnings Presentation on 6ix