Bengo4.com, Inc. · TSE:6027
Bengo4.com — Q1 FY3/2025 Earnings Presentation
75 slides from Bengo4.com's earnings presentation, Aug 14, 2024
Slide 1: FY3/2025 Q1 Results
FY3/2025 Q1 RESULTS Bengo4.com,Inc. Aug. 14, 2024
Slide 2: Contents
Contents 01 FY3/2025 Q1 Results P. 3−8 02 Progress of Growth Strategy P. 9−19 03 Business Overview P. 20−35 04 Appendix P. 36−73 1
Slide 3: Vision・Mission
VISION・MISSION VISION Drive a paradigm shift for the better world. Be the Professional-Tech Company. MISSION Do what only professionals can do. Contribute to society using professional knowledge and technologies. 2
Slide 4: FY3/2025 Q1 Results
FY3/2025 Q1 Results 3
Slide 5: Topics for FY3/2025 Q1
Topics for FY3/2025 Q1 Net sales increased 37.9% YoY. EBITDA rose 39.6% YoY. Net Sales 3,297 Mil. JPY 37.9 % YoY EBITDA 484 Mil. JPY 39.6 % YoY Operating Profit 282 Mil. JPY 14.6 % YoY Ordinary Profit 294 Mil. JPY 19.5 % YoY Profit 183 Mil. JPY 21.3 % YoY *EBITDA = Operating Profit + Depreciation an
Slide 6: Quarterly trend in Net Sales
Quarterly trend in Net Sales The Q1 sales results was better than the plan, with Bengoshi.com and Zeirishi.com both achieving increased sales QoQ. Starting from this Q1, the advertising sales (spot sales) of the CloudSign segment are recorded under “Business Lawyers and others.” Sales for the Bengos
Slide 7: Quarterly trend in ARR
Quarterly trend in ARR Company-wide ARR was 10.76 billion yen, up 40.1% YoY. ARR CloudSign's ARR increased by 20 million yen in QonQ. Slight increase in ARR in QonQ due to strong contract 40.1% 10.76 transmissions in March as usual, but in line with plan. Bengoshi.com and others 60.0% Bil. JPY Cloud
Slide 8: Quarterly trend in SGA
Quarterly trend in SGA In Q1, Bengo4.com made progress hiring personnel in line with the plan, and personnel expenses increased. Advertising expenses decreased QoQ due to an increase in one-off expenses the previous quarter associated with the implementation of in-house events. （Mil. Yen ） 2,400 We
Slide 9: Quarterly trend in Operating Profits
Quarterly trend in Operating Profits Operating profit and EBITDA for Q1 stood at 282 million yen and 484 million yen respectively. （Mil.Yen） 400 395 35.0% 379 Operating Profits 348 Operating Profit Raito 337 322 28.0% 306 303 Quarters during which we ran large-scale TV 282 commercials and newspaper
Slide 10: Progress of Growth Strategy
Progress of Growth Strategy 9
Slide 11: Policy for Each Business in FY3/2025
Policy for Each Business in FY3/2025 1. Strengthen acquisition of major companies as clients We will strengthen our position as the No. 1 player in the industry by attaining clients, particularly large companies. 2. Shift to services that are not limited to contracts but cover transactions in genera
Slide 12: Steady Growth of CloudSign
Steady Growth of CloudSign The number of new paying companies are trending higher, and ARRPU is also improving due to an increase in the number of contracts. According to Fuji Chimera Research Institute, CloudSign is the industry leader in sales and is increasing its market share. Price increases fo
Slide 13: Shift to services that are not limited to contracts but cover transactions in general
Shift to services that are not limited to contracts but cover transactions in general Branch out from contract lifecycle management services in the narrow sense of reviewing, concluding and managing contracts to services that cover all the transactions conducted by companies, strengthening the linka
Slide 14: Steady development of CloudSign Review, a priority cross-sell product
Steady development of CloudSign Review, a priority cross-sell product The ARR for the services of CloudSign Review exceeded 50 million yen. The potential market for contract review services is estimated to be around 6 billion yen (8,000 companies), and the business will be expanded by leveraging syn
Slide 15: Promotion of Sales Collaboration in Products for Lawyers
Promotion of Sales Collaboration in Products for Lawyers In the domain of services for lawyers, promoted group collaboration with Bengoshi.com, Hanreihisho, and BengoKakumei. 4,200 lawyers（Fixed price: 30,000 yen） Marketing Merger of Bengo Kakumei was Started product collaboration domain completed o
Slide 16: Start of Product Collaboration between Bengoshi.com LIBRARY and Hanreihisho
Start of Product Collaboration between Bengoshi.com LIBRARY and Hanreihisho First phase of PMI with Hanreihisho started on August 5. Precedents cited in books listed in Bengoshi.com LIBRARY provide an access link to Hanreihisho. We will promote the cross-selling of Bengo4.com LIBRARY （Fixed price: 9
Slide 17: Legal Brain Development Strategy
Legal Brain Development Strategy Database Lawyer of legal database precedents Judge Secret database Leagal Legal DB Public consultation Prosecutor Q&A database Legal profession Contract book database database Strengthen development M&A also utilized capabilities by hiring engineers, to acquire legal
Slide 18: What we hope to accomplish through Legal Brain
What we hope to accomplish through Legal Brain Focus Practical services area for lawyers LAWYER Focus Professional services area for companies ENTERPRISE LEGAL BRAIN Free consultation available to anyone, GENERAL 24 hours a day, 7 days a week Empowering Japanese society through legal services as "Ja
Slide 19: Launch the first research product with Legal Brain
Launch the first research product with Legal Brain We will launch a research product with Legal Brain on August 26. We will keep improving the product based on customer feedback, aiming for product-market fit. Example of customer feedback The books, laws and regulations, precedents and notices searc
Slide 20: Future Policy on LaaS
Future Policy on LaaS We will strengthen collaboration over the sales and marketing function in the BtoB domain. We will use each user assets and data asset to increase the speed of growth. Compliance In-House Checks Legal Document Consultation creation FAQs All our paying companies Education and tr
Slide 21: Business Overview
Business Overview 20
Slide 22: CloudSign
CLOUDSIGN 21
Slide 23: Trend in Net Sales
Trend in Net Sales Q1 net sales reached 1.57 billion yen, up 27.5% YoY. Recurring sales were solid, up 30.6% YoY. CloudSign's ARR reaches 6 billion yen. Sales Trend in net sales E-contract market ■ Spot sales Mil.Yen 1,610 1,571 Sales were in line with the 1,600 plan, despite falling QoQ, Spot sales
Slide 24: Trend in the number of contracts
Trend in the number of contracts （The number of contracts sent bearing an electronic signature and a timestamp） The number of contracts sent increased steadily, surpassing 2.37 million in the quarter. Trend in the Number of Contracts by Quarter Network effects of electronic contract service 2,377k 2
Slide 25: CloudSign introduction in different industries
CloudSign introduction in different industries The introduction of CloudSign continued to accelerate, especially among large companies and local governments. Banks, securities, insurance and other financials IT services, information, telecommunications, human resources and media Construction / Real
Slide 26: Status of Introduction by Local Governments
Status of Introduction by Local Governments Of 327 local governments that have introduced electronic contracts, 226 local governments (approx. 70%) * have introduced CloudSign. We have expanded the number of municipalities introducing the system while maintaining market share. Prefectures Local gove
Slide 27: Bengoshi.com
BENGOSHI.COM Bengoshi means lawyer 26
Slide 28: Trend in the number of visitors
Trend in the number of visitors Despite volatility in Bengoshi.com News, monthly site visits to the Lawyer Search page are improving, and the number of paid registered lawyers is expected to increase in the future. Trend in the number of visitors (monthly) (10,000 visitors) 1,800 7.7 million 900 vis
Slide 29: The number of paid users (Individual)
The number of paid users（Individual） The number of paid individual users is falling, and we plan to implement a price increase before the end of the fiscal year. What paid users can see Trend in the number of paid users （users） 200,000 188,533 187,785 186,390 184,404 185,573 184,739 181,188 182,569
Slide 30: Trend in the Number of Registered Lawyers
Trend in the Number of Registered Lawyers The number of registered lawyers reached 28,167,accounting for a 61% share of lawyers in Japan. The number of paid registered lawyers was 14,377, reflecting efforts at cross-selling of Bengoshi.com Library and other services to Hanreihisho users. Trends in N
Slide 31: Zeirishi.com
a%s > sd ZEIRISHI.COM
Slide 32: Zeirishi.com
Zeirishi.com Japan’s largest tax consultation portal site which has 689k visitors/month. 1. Tax Accountant introduction service Provide introduction service by experienced tax coordinators. They choose the best one for client from among 6,646 registered tax accountants. 2. Tax consultation service P
Slide 33: Trend in net sales
Trend in net sales Aggressive marketing investments, such as web advertising, are increasing our positioning in the industry by the day. Sales grew significantly, increasing 38.2% YoY. Trend in net sales 38.2% 322 Mil.Yen 312 300 293 253 233 224 210 174 182 173 153 154 150 135 138 137 126 118 0 Q1 Q
Slide 34: Business Lawyers
BUSINESS LAWYERS 33
Slide 35: Business Lawyers
Business Lawyers Japan’s largest Corporate legal portal site which has 590k visitors/month. 1. Registered lawyers The lawyer who works in Nishimura & Asahi, Mori Hamada & Matsumoto, Nagashima Ohno & Tsunematsu, Anderson Mori & Tomotsune, TMI etc. 2. “Business Lawyers Library” Browse practical books
Slide 36: Business Lawyers Library also grows steadily
Business Lawyers Library also grows steadily The number of Business Lawyers users steadily increases. The number of companies using "Business Lawyers Library”, a service that provides access to legal books and magazines, exceeds 1,600. Trend in the users （monthly) Number of companies that have intro
Slide 37: Appendix
APPE NDIX © Bengo4.com, Inc. 2024 36 Appendix
Slide 38: Summary for FY3/2025 Q1
Summary for FY3/2025 Q1 Net sales increased 37.9% YoY. Operating profit rose 14.6% YoY. （Mil. Yen） FY3/2025 Q1 FY3/2024 Q1 Fy3/2024 Q4 YoY QoQ Actual Actual Actual Net Sales 3,297 2,392 +37.9% 3,302 -0.2% CoGS 760 429 +77.1% 741 +2.7% Gross Profit 2,537 1,962 +29.3% 2,561 -1.0% SGA 2,254 1,716 +31.4
Slide 39: Balance sheet
Balance sheet Net assets increased 276 million yen due to higher retained earnings. (Mil. Yen) FY3/2025 Q1 FY3/2024 Q4 QoQ Current Assets 5,584 5,654 -70 Cash and equivalents 3,327 3,469 -141 Fixed Assets 4,651 4,509 +142 Total Assets 10,235 10,164 +71 Current Liabilities 2,831 2,906 -74 Fixed Liabi
Slide 40: Corporate Profile
Corporate Profile Name Bengo4.com, Inc. Place 4-1-4 Roppongi, Minato-ku, Tokyo Date of 4th Jul., 2005 establishment Representative Taichiro Motoe Director Consolidated: 543, Employees Non-consolidated: 517 (As of June 30, 2024) Group LIC CO., Ltd and EOC.com Co., Ltd. companies 39
Slide 41: Vision・Mission
VISION・MISSION VISION Drive a paradigm shift for the better world. Be the Professional-Tech Company. MISSION Do what only professionals can do. Contribute to society using professional knowledge and technologies. 40
Slide 42: Board Members
Board Members Representative Director, President and CEO Outside Director Taichiro Motoe Fumihiko Ishimaru Joined Anderson Mori & Tomotsune Foreign Law Joint Enterprise Representative Director of Accord Ventures, Inc. and subsequently founded Authense Law Office. Former executive officer of Digital
Slide 43: Corporate History
Corporate History AI business Bengo Kakumei Inc., a Provider of Digital Case 2024 Recordkeeping Tools for Lawyers, Joined the Group Announced Legal Brain Initiative Released Bengoshi.com AI chat legal consultation Released CloudSign Review 2023 Released Bengoshi.com LIBRARY AI Assistant LIC CO., Ltd
Slide 44: Bengoshi.com
BENGOSHI.COM Bengoshi means lawyer 43
Slide 45: Social background of legal consulting services in Japan
Social background of legal consulting services in Japan 16.16 Million people had troubles / disputes over legal matters in a year. Only 26.7% of these people sought Lawyer’s advices. Reasons why they hesitated to ask professional’s help were: Concerns over professional fees 38.9%; / It’s a too minor
Slide 46: Background of lawyer's business in Japan
Background of lawyer’s business in Japan Environments of lawyer’s business has been changing rapidly since the judicial system reform in 2000, such as lifting of ban on advertisements, liberalization of fees, and new bar examination, which was meant to increase number of lawyers in Japan. Number of
Slide 47: Market Environment of the Legal Services Industry in Japan
Market Environment of the Legal Services Industry in Japan The legal services industry has been growing since 2000 due to progress in the development of new customers, as marketing needs for lawyers grow together with the increase in the actual number of lawyers. Legal services market size 25.6 mill
Slide 48: Value proposition of Bengoshi.com
Value proposition of Bengoshi.com An web-based platform for consumers and lawyers, to realize “familiar legal service”. Provides information and services about free legal consulting and detailed information about lawyers for consumers. Consumers Lawyers Hesitate to seek Want to reach out to Support
Slide 49: Why Bengoshi.com?
Why Bengoshi.com? The largest free legal consultation portal in Japan which has 7.71M visitors/month.* 1. Because the lawyer offers user legal advice for free on the internet service • The outstanding database which has over 1,366k records of consulting cases* 2. Because it has a substantial databas
Slide 50: Services of Bengoshi.com provides
Services of Bengoshi.com provides Provides each kind of contents according to seriousness of issues users have. Targets Contents provided Benefit for users Consumers who have urgent Users can search for the most appropriate “List of lawyers” matters and are willing to seek lawyer for free thanks to
Slide 51: Overview of marketing support service for lawyers
Overview of “marketing support service for lawyers” A marketing support service for lawyers, which helps them acquire clients • The number of visitors to the site has exceeded 10 million. • Acquiring potential clients efficiently based on the focus area of each lawyer Price 20,000 yen or more per mo
Slide 52: Overview of research support service for lawyers
Overview of “research support service for lawyers” Making lawyer book research more comfortable. • Monthly subscription service for law books • "Book browsing" "research service" functions can be used while working from home Price 9,000yen per month Number of books Over 2,300 books Participating pub
Slide 53: Overview of Services for Lawyers (Research Support)
Overview of Services for Lawyers (Research Support)） Precedents database with by far the largest share in the industry • The usage rate of the precedents search service by lawyers is 95%. • Hanreihisho in particular is used by all judges and prosecutors, and is the dominant service among the three e
Slide 54: Overview of Services for Lawyers (Business Support)
Overview of Services for Lawyers (Business Support) Digital document organization tool developed by lawyers for lawyers • It supports transition of lawyers’ practice style to one that makes efficient use of digitalized documents. • It harnesses the power of digital technologies to make lawyers stron
Slide 55: Overview of paid services for individual
Overview of “paid services for individual” Paying users can read all answers posted by lawyers about topics on the consulting board for 300 yen per month (excluding tax). What paid users can see Trend of the number of paid users users 200,000 100,000 Answers by lawyers are available only for paid us
Slide 56: Growth Cycle of Bengoshi.com
Growth Cycle of — Bengoshi.com Increased DB draws more visitors, which stimulates new registration of lawyers who seek to reach out expanded number of users. Lawyer’s action Databases grow Advice for consumers Counselling Register to the website Lawyer list Lawyers Consumers Consumer’s action Visit
Slide 57: CloudSign
CLOUDSIGN 56
Slide 58: Overview of CloudSign
Overview of CloudSign Cloud-based e-contracting service from contract conclusion to contract management. Upload a completed contract that has been negotiated and approved by the other party, and the contract is concluded. The recipient of the document does not need to be registered with CloudSign. U
Slide 59: Usage Image
Usage Image Sender Upload PDF documents Enter Destination Document preparation Send Receiver Sender Receiver Receive by mail Contract confirmation Final step after conclusion of agreement and agreement The signed documents will be automatically e-mailed to the sender and receiver. (It is automatical
Slide 60: Documents used for CloudSign (examples)
Documents used for CloudSign (examples) Human Resources Sales Leases Employment contract Sales Contract Building Lease Agreement Working conditions notice Land purchase agreement Land Lease Agreement Offer of employment Building Sales Contract Parking Lot Rental Agreement Employment agreement Real e
Slide 61: Benefits of CloudSign
Benefits of CloudSign Speed up process Reduce cost Strengthening of compliance With CloudSign, contract signing Shipping cost, paper cost,printer No more losing/missing paper or process will be shorten by 1-2 ink cost, and stamp tax will no altering of contract. weeks, which boosts up upside of long
Slide 62: Price of CloudSign
Price of CloudSign Free Light Corporate Enterprise Fixed fee 0 JPY/Month Fixed fee 10,000 JPY/Month Fixed fee 28,000 JPY/Month Fixed fee To be inquired Pay- per-use 0 JPY/Month Pay- per-use 200 JPY/Sending Pay- per-use 200 JPY/Sending Pay- per-use 200 JPY/Sending Plan contents Plan contents Plan con
Slide 63: Why CloudSign?
Why CloudSign? 1. Cloud contracting service offered by Bengoshi.com • Our Company, which has a deep understanding and knowledge of Japanese law, provides legally reliable products under the supervision of a lawyer. 2. Product development in line with Japanese business practices • In order to expand
Slide 64: CloudSign services
CloudSign services Conclusion of Automatic a contract conversion to data AI Contract CloudSign scan Management It facilitates contract management operations with AI, It handles the process from scanning contract which automatically identifies the counterparty to documents to storing documents and th
Slide 65: Business Lawyers
BUSINESS LAWYERS 64
Slide 66: Business Lawyers Library fee structure
Business Lawyers Library fee structure Business Lawyers Library, an all-you-can-read book service for corporate legal affairs. Light plan Standard plan Enterprise plan The plan enables an individual to conduct A standard plan that includes education he plan includes compliance training minimum resea
Slide 67: Status of introduction of Business Lawyers Library
Status of introduction of "BUSINESS LAWYERS LIBRARY" From the website of "BUSINESS LAWYERS LIBRARY” The service is used by mainly leading law offices and large companies. https://www.businesslawyers.jp/lib/about 66
Slide 68: Advertisement on the websites
Advertisement on the websites Advertising sales on the "Bengoshi.com" and "Zeirishi.com" websites, as well as advertising sales associated with the Business Lawyers conference. Website Conference Advetisements 67
Slide 69: Sustainability
SUS —FAINA © Bengo4.com, Inc. 2024 68
Slide 70: Basic Policy on Sustainability
Basic Policy on Sustainability Going forward, we will work together with all stakeholders Three Viewpoints to drive the creation of a sustainable society, by facing the resolution of social issues from three perspectives, and empowering society. 01 For General 02 For Professional 03 For Enterprise G
Slide 71: Material Issue Map
Material Issue Map Importance to society Access to and use of expert knowledge Response to Information security climate change and protection of privacy Advancing DX services and improving productivity Strengthening corporate Diversity and governance inclusion Training and Corporate ethics creation
Slide 72: Risk Information
© Bengo4.com, Inc. 2024 71
Slide 73: Risk Information 1
Risk Information1_ Risks identified that could have a significant impact on future growth Degree of Item Major Risks Possibility/Timing Influence Countermeasure Although our business areas are Media business and IT/Solutions business, Low/ Responding to changes in the Business Environment if the Int
Slide 74: Risk Information 2
Risk Information 2_ Risks identified as having the potential to materially impact future growth Degree of Item Major Risks Possibility/Timing Influence Countermeasure We will use a variety of recruiting As we expand our business in the future, we will need to continually recruit and train Low/ metho
Slide 75: Warning
WARNING This document is meant for explaining the company’s business itself and doesn’t mean any inducement or persuasion for buying stocks or/and bonds of the company. This document include descriptions about prospects for future which are based on information available as of today, and actual situ