En Inc. · TSE:4849
En — en Japan — H1 FYE Mar 2024 Earnings Presentation
57 slides from En's earnings presentation, Nov 9, 2023
Slide 1: 1st Half of FYE Mar/2024 Earnings Review
1 en Japan Inc. 1st Half of FYE Mar/2024 Earnings Review November 9, 2023 Security Code 4849 TSE Prime section Copyright © 2023 en Japan Inc. All rights reserved
Slide 2: Index
Index 2 P3 Executive Summary P4 Consolidated Performance Summary for the 1st Half of FYE Mar/2024 P7 Performance Overview by Segment for the 1st Half of FYE Mar/2024 P25 Medium-Term Management Plan Progress(Reprinted) P27 Return to Shareholders P29 Integrated Report P31 Appendix
Slide 3: Executive Summary
Executive Summary 3 Sales 33.07bill YoY 102.1% Operating income 1.08bill YoY 40.0% Point ・For sales, “engage” remained strong, with the impact of overseas businesses and EWJ lower than internal expectations. Operating income was in line with internal expectations due to improved productivity and red
Slide 4: Consolidated Performance Summary for the 1st Half of FYE Mar/2024
4 Consolidated Performance Summary for the 1st Half of FYE Mar/2024
Slide 5: Consolidated Income Statement Year on Year
[1st Half of FYE Mar/2024 Results] Consolidated Income Statement Year on Year 5 2Q FYE Mar 2023 2Q FYE Mar 2024 YOY Actual Actual (Apr.-Sep.2022） (Apr.-Sep.2023） change change (million yen) (%) (million yen) % of Sales (million yen) % of Sales Net Sales 32,404 100.0% 33,079 100.0% 675 2.1% Cost of S
Slide 6: Changing Factor of Earnings Year on Year
Changing Factor of Earnings Year on Year 6 (JPY) Sales increased 0.67 bill or +2.1% YoY 33.07bill HR-Tech engage +1.49bill Sales 32.40bill Human resource platform +0.57bill Domestic Job Board +0.22bill Overseas ▲1.88bill etc. Expenses 29.70bill Cost increased 2.29 bill or +7.7% YoY Advertising, Sale
Slide 7: Performance Overview by Segment for 1st half of FYE Mar/2024
7 * Performance Overview by Segment for 1st half of FYE Mar/2024 *a management accounting basis
Slide 8: 1st half of FYE Mar/2024 Performance Overview by Segment
1st half of FYE Mar/2024 Performance Overview by Segment 8 2Q FYE Mar 2023 2Q FYE Mar 2024 （bil JPY） Actual Actual YoY (Apr.–Sep.2022) (Apr.–Sep.2023) HR-Tech Sales 1.55 3.05 96.7% Businesses engage Operating Income -1.67 -2.46 - with OP margin -107.8% -80.8% - Human resource Sales 2.92 3.50 19.7% i
Slide 9: Businesses with investment
9 Businesses with investment
Slide 10: engage
engage
Slide 11: HR-Tech engage Summary
HR-Tech engage Summary 11 1H Sales(yen) Company KPIs High growth due to strong number of Increasing active users, strong company KPIs job-seeker applications 3.05bill YoY 197% Total number of accounts 580 thousand accounts YoY 123% Number of paid accounts Job seeker KPIs 19,916 accounts YoY 104%
Slide 12: HR-Tech engage Quarterly Sales/Operating income
HR-Tech engage Quarterly Sales/Operating income 12 Sales saw a high growth of 190% YoY due to strong number of job-seeker applications Operating loss was on a narrowing trend, due to the increased sales. Sales Operating income YoY 190 % 1800 1,613mil -1,166mil 1600 1400 1200 -754 -918 -966 1000 1,43
Slide 13: HR-Tech engage Total number of accounts / Number of paid accounts
HR-Tech engage Total number of accounts / Number of paid accounts 13 Number of paid accounts… Number of accounts charged for engage premium plan（recorded as sales , Q total） Accounts increased at a pace of 10,000 per month One in seven companies in Japan are estimated to use it. Total number of acco
Slide 14: HR-Tech engage Number of job listings
Publicized job listings … free plan＋premium plan HR-Tech engage Number of job listings （Quarterly average） Paid job listings…Number of job listings applied for 14 premium plan （Quarterly average） Number of paid job listings grew considerably due to increase in paid usage by large companies. Publiciz
Slide 15: HR-Tech engage Users / MAU
HR-Tech engage Users / MAU 15 MAU…Quarterly average number of UUs who visited the site in a month Job seeker activities improved due to better job posting logic and better operation of email marketing Users MAU YoY ＋1.37mil. YoY 2.20 mil. 3.03mil. 500 4.61mil. 450 400 350 300 4.59 2.67 250 4.22 2.27
Slide 16: Human resource platform
Human resource platform AM B | GOSHLot hy
Slide 17: Human resource platform Summary
Human resource platform Summary 17 1H Results Operating loss narrowed YoY due to sales growth 3.50bill 120% Sales YoY Operating income ▲0.26bill YoY +0.01bill Job seeker KPIs Company KPIs Job seekers increased with better advertising User companies increasing among both permanent efficiency than
Slide 18: Human resource platform Quarterly Sales/Operating income
Human resource platform Quarterly Sales/Operating income 18 Recruitment demand for high achievers was strong, with sales growing as planned TV commercials were implemented in July, with large investments made as planned Sales Operating income 119 YoY % -221mil 1,746mil -131 -141 -176 -42 -690 1,859
Slide 19: Human resource platform KPI
Human resource platform KPI 19 Continuous strengthening of promotion campaigns improved name recognition, acquiring job seekers with better CPA than expected Number of user companies increased, mainly companies that are recruiting directly Users User Companies Job offers YoY 122 % YoY 167 % YoY 110
Slide 20: TOPICS: Automatic generation function for job summary using GPT tools
TOPICS [en]Career Change Consultant 20 Matching accuracy improved due to the automatic generation function for job summary. It contributes to the improvement of user company activities Automatic generation function for job summary, using GPT tools, is available [en]Career Change Consultant
Slide 21: Existing businesses
21 Existing businesses
Slide 22: Domestic Performance Summary
Domestic Performance Summary 22 Sales/Operating income margin 1H – Sales 20.79bill YoY 102.9% Permanent OP margin (%) – Operating income 4.08bill YoY 90.6% Job Board 求人サイト 人材紹介 Other その他 営業利益率(%) Recruitment dom ・Revenue increased due to growth in job board and other businesses （JPY Billion） estic 1
Slide 23: Overseas Performance Summary
Overseas Performance Summary 23 Sales/Operating income margin 1H India Vietnam Other OP margin (%) – Sales 6.14bill YoY 76.5% インドIT派遣 ベトナム その他 営業利益率(%) IT Temp – Operating income 0.38bill YoY 56.0% Over （JPY Billion） seas ・Sales were lower than planned in India, Vietnam and all others 4.50 4.26 4.29
Slide 24: TOPICS: Social Impact Recruitment Project
TOPICS Social Impact Recruitment Project 24 Social Impact Recruitment Project to solve social issues through recruitment The number of supporting projects reached 100 in July Project Results Number of Projects Number of applications (Cumulative) Cumulative total of 110,000 or more Successful recruit
Slide 25: Medium-Term Management Plan Progress (Reprinted)
25 Medium-Term Management Plan Progress (Reprinted)
Slide 26: Numerical plan progress
Numerical plan progress 26 We will not change the basic policy for FYE March 2024, the second year, and will continue to strengthen investment to accelerate the Medium- Term Management Plan Operating income Sales (consolidated) (consolidated) 120.0 （bill） （bill） 24.0 100.0 85.0 73.0 17.5 67.7 70.0 6
Slide 27: Return to Shareholders
27 Return to Shareholders
Slide 28: Return to Shareholders (The dividend plan)
Return to Shareholders（The dividend plan） 28 Dividends are to be fixed until FYE March 2025 (during period of front-loaded investment) In FYE March 2026 and onward, when earnings increase substantially, dividend payout ratio is to be set at 50% （dividend payout ratio） （JPY） Medium-Term Management Pl
Slide 29: Integrated Report
29 Integrated Report
Slide 30: Integrated Report
Integrated Report 30 The Integrated Report 2023 has been prepared and is available at the below links Integrated Report（Japanese） Integrated Report（English） 統合報告書（英語版）
Slide 31: Appendix
31 Appendix
Slide 32: Reference: Market Environment
Reference ：Market Environment Source: Association of Job Information of Japan 32 “Total Number of Job Advertisements for Full-Time and Part-Time Workers, Temporary Staff” The number of job advertisements for full-time workers was less than in the same month of the previous year, as recovery from the
Slide 33: Reference: Factors Underlying Quarterly Performance Changes (Major Cost of Sales)
Reference :Factors Underlying Quarterly Performance Changes (Major Cost of Sales) 33 82.0% YoY in 2Q. Mainly decrease in personnel costs due to layoffs in IT staffing business in India Cost of Sales (%=Cost of sales ratio) 4,134 4,214 4,126 30% 4,500 ,000 (million yen) 3,778 25.0% 3,560 4,000 ,000 3
Slide 34: Reference: Factors Underlying Quarterly Performance Changes (Major SGA Expenses)
Reference ：Factors Underlying Quarterly Performance Changes （Major SGA Expenses） 34 111.3% YoY in 2Q. Personnel reinforcement aimed at achieving the Medium-Term Management Plan and enhanced advertising investment led to an increase in expenses SGA 16,00 0,000 （％＝SGA of sales） 13,720 90% （million yen
Slide 35: Financial Position
Financial Position 35 FYE Mar 2023 FYE Mar 2024 YOY change YOY change （million yen） （Mar. 2022） （Sep. 2023） (%) Current asset 35,983 27,514 -8,469 -23.5% Cash 23,876 20,096 -3,780 -15.8% Decrease due to dividend payments Accounts receivable 6,467 5,953 -514 -7.9% Other current assets 5,639 1,464 -4,
Slide 36: Non-consolidated Income Statement for the 1st Half of FYE Mar/2024
36 Non-consolidated Income Statement for the 1st Half of FYE Mar/2024
Slide 37: Non-consolidated Income Statement
[1st half of FYE Mar/2024 Results] Non-consolidated Income Statement 37 FYE Mar 2023 FYE Mar 2023 YOY Actual Actual YOY change change (million yen) (Apr.-Sep.2022） (Apr.-Sep.2023） (%) (million yen) % of Sales (million yen) % of Sales Net Sales 20,076 100.0% 22,895 100.0% 2,818 14.0% Cost of Sales 1,
Slide 38: Changing Factor of Earnings (Non-consolidated)
Changing Factor of Earnings (Non-consolidated) 38 Year on year (JPY) Sales increased 2.81bil or +14.0％ YoY HR-Tech engage +1.49bil Sales 20.07bil Human resource platform Permanent Recruitment +0.57bil +0.22bill 22.89bil etc. Domestic Job Board +0.36bil Expenses 18.62bil Cost increased 3.96 bil or +
Slide 39: ESG
39 ESG
Slide 40: Action to ESG
Action to ESG 40 An industrial structure in which short-term earnings are contributed to more by non-retention of Social Contribution and repeated job changes by the newly employed is an issue and considered as not leading to Through Core Business sustainable business growth. Service is provided by
Slide 41: Example of realizing our purpose: Social Impact Recruitment Project
Example of realizing our purpose:Social Impact Recruitment Project 41 Total of 100 projects with more than110,000 applications and over400 successful recruitments (cumulative) - en Japan changes society from the hiring front with its various services and know-how
Slide 42: Example of realizing our purpose: Social Impact Recruitment Project
Example of realizing our purpose：Social Impact Recruitment Project 42
Slide 43: Measures for society
Measures for society 43 The goal is to continue growth of society and employees based on our purpose （Examples） Promote businesses based on our purpose “To make the world better by increasing the number of people who work hard for others and society” Update corporate philosophy reflecting employ
Slide 44: Action to ESG (Internal Engagement)
Action to ESG（Internal Engagement) *Non-consolidated data for en Japan (as of September 2023) Employees include regular employees and contract workers 44 Systems & Initiatives ■Promotion of Women’s Participation and Advancement * Percentage of women to all employees 55.6％ ■Revitalization of human ca
Slide 45: Action to ESG (Governance Structure)
Action to ESG（Governance Structure) 45 Director Takatsugu Suzuki Michikatsu Ochi Megumi Kawai Teruyuki Terada Takuo Iwasaki Yasushi Numayama Kayo Murakami Wataru Sakakura Yuri Hayashi President Chairman Director Director Director Director Outside Directors Outside Directors Outside Directors Directo
Slide 46: Company Overview
46 Company Overview
Slide 47: Company Overview
Company Overview 47 【 Company Name 】 en Japan Inc. 【 Establishment 】 January 14, 2000 【 Representatives 】 Takatsugu Suzuki （President） 【 Headquarters 】 Shinjuku I-land Tower, 6-5-1 Nishi-Shinjuku, Shinjuku-ku, Tokyo 【 Total Stockholder’s Equity 】 JPY 1,194million (as of Sep. 2023) 【Stock Listing 】 T
Slide 48: Our business contents ①
Our business contents ① 48 ＜ HR-Tech engage ＞ Service brand Contents Characteristics Clients Company A freemium-model recruitment support tool Can create high-quality corporate recruitment websites and job listings easily and quickly Digital platform aimed Job offers created are automatically
Slide 49: Our business contents ②
Our business contents ② 49 ＜Job Board (Domestic）＞ Service brand Contents Characteristics Users Clients Company Companies which put their recruitment ads on the job board are Site for [en]Career Change Info carefully researched and taken pictures by en-japan. General Comprehensive Mainly 20s Hone
Slide 50: Our business contents ③
Our business contents ③ 50 ＜Job Board (Domestic）＞ Service brand Contents Characteristics Clients Company One of the largest freelance job search engine sites in Japan Job search engine site Allows users to collectively search and apply by compiling listings by freelance Freelance agents for freela
Slide 51: Our business contents ④
Our business contents ④ 51 ＜ Domestic Other Business / Subsidiary＞ Service brand Contents Characteristics Clients Company Hiring management Temporary Uniform management of various data and functions, e.g.hiring information, interviewers, system response to applications, and effectiveness measureme
Slide 52: Our business contents ⑤
Our business contents ⑤ 52 ＜Other New Business*Unconsolidated subsidiary＞ Service brand Contents Characteristics Clients Company Creates a database of and analyzes complaints acquired from consumers and sells the database/analysis as a product that contributes to product development to Marketing r
Slide 53: Data of Main service
53 Data of Main service
Slide 54: Cost relative to sales - Labor cost and Sales & Promotion cost (consolidated)
Cost relative to sales - Labor cost and Sales & Promotion cost (consolidated) 54 1Q 1Q 1Q 1Q 2Q 3Q 4Q 2Q 3Q 4Q 2Q 3Q 4Q 2Q FYE Mar FYE Mar FYE Mar FYE Mar 2021 2022 2023 2024 Ordinary Income (million yen) 1,236 1,758 2,155 2,788 2,314 2,495 2,675 2,653 1,907 1,033 1,235 -103 884 439 % of sales 11.8%
Slide 55: Earnings for Fiscal year end and each quarter
Earnings for Fiscal year end and each quarter 55 Fiscal year end Sales (million yen) Ordinary Income(million yen) Ordinary Income ratio *FY2012 converted 15 months to 12 months due to the change of accounting period（Change from December to March） Quarter
Slide 56: The market environment: Unemployment Rate & Job Offers-to-Applicants Ratio
The market environment 56 – Trends in Unemployment Rate & Effective Job Offers-to-Applicants Ratio < Latest Unemployment Rate > (%) ＜Year Average＞ Unemployment Rate （％） (times) Effective Job Offers-to- Applicants Ratio Sep. 1.28 times for 2022 2.6% ＜Latest Effective Job Offers-to-Applicants Ratio ＞
Slide 57: en Japan Inc. Corporate Planning Department IR Group
57 ■ en Japan Inc. Corporate Planning Department IR Group TEL：+81-3-3342-4506 Mail: ir-en@en-japan.com URL:https://corp.en-japan.com/en/ Cautionary Statement This material is for informational purpose only. You are fully responsible for the final decision to invest in the company. The statements inc