Slide 1: FY2017 1st Quarter Financial Results
FY2017 1st Quarter Financial Results May 15, 2017 L i v e s e ns e I n c . (TSE1: 6054) Copyright© Livesense Inc. 1
Slide 2: Agenda
Agenda Financial Results Business Overview & FY2017 Initiatives Appendix Copyright© Livesense Inc. 2
Slide 3: 1. Financial Results
1. Financial Results Copyright© Livesense Inc. 3
Slide 4: Executive Summary
Executive Summary Net sales increased in all segments. Up 8.6% YoY. Profits decreased with increased ad spend but all segments now profitable. Net Sales ¥1,394 million ( +¥110 million +8.6%) Operating Income ¥54 million ( -¥99 million -64.4%) Jobsense sales down due to impact of lower priced job pos
Slide 5: 1Q FY2017 Financial Results Overview
1Q FY2017 Financial Results Overview Net sales increased. Profits down, but progress greater than anticipated. (Millions of JPY) FY2016 FY2017 YoY 1Q 1Q Net Sales 1,284 1,394 +8.6% Operating Income 154 54 -64.4% Operating Margin(%) 12.0% 3.9% -8.1pt Ordinary Income 156 81 -47.7% Net income 97 60 -38
Slide 6: Revised Financial Forecasts
Revised Financial Forecasts Operating income estimates revised upward, with a careful review of investments, and multiple media growing more efficiently than anticipated. (Millions of JPY) 1H 1H 1H FY2017 FY2017 FY2017 Progress FY2016 1Q Previous Revised Rate Results Cumulative Forecasts Forecasts N
Slide 7: Net Sales and Operating Income
Net Sales and Operating Income Sales up in all segments, 8.6% YoY. Profits decreased 64.4% YoY due to increased advertising investment and increased personnel costs. HR Information Media Real Estate Information Media E Commerce (Millions of JPY) Other Businesses Operating Income 1,377 1,363 1,394 1,
Slide 8: Segment Net Sales and Operating Income - HR Information Media
Segment Net Sales and Operating Income - HR Information Media Monetization measures for Tenshoku Kaigi and Syukatsu Kaigi progressed. Segment net sales increased 1.9% YoY. Jobsense sales prioritized acquisition of job posts. Sales down 6.1% YoY due to impact of lower priced posts. Jobsense Jobsense
Slide 9: Segment Net Sales and Operating Income - Real Estate Information Media
Segment Net Sales and Operating Income - Real Estate Information Media Sales increased and turned profitable with an increase in DOOR Chintai real estate postings and IESHIL monetization progressing. (Millions of JPY) Net Sales Operating Income 121 89 49 56 40 30 6 -21 -14 -31 1Q 2Q 3Q 4Q 1Q FY2016
Slide 10: Segment Net Sales and Operating Income - E Commerce
Segment Net Sales and Operating Income - E Commerce Although later than initially anticipated, web marketing knowledge sharing with waja progressed. Introduction of new services also successful, resulting in increased sales and turning a profit. (Millions of JPY) Net Sales Operating Income 135 119 1
Slide 11: Operating Income - YoY Comparison
Operating Income - YoY Comparison Profits decreased 64.4% YoY due to increased ad spend and personnel. (Millions of JPY) Personnel Cost Sales Increase Increase -75 +110 Ad Cost Increase -142 Other SG&A 1Q/16 Decrease Operating +7 Income 154 1Q/17 Operating Income 54 Copyright© Livesense Inc. 11
Slide 12: Sales Costs
Sales Costs Personnel costs increased 15.4 % YoY due to increase in personnel. Advertising costs increased 69.4% YoY due in part to impact of previous year’s reduction of advertising costs. Personnel expenses, etc. (Millions of JPY) Advertising costs Depreciation and amortization Others 1,339 1,235
Slide 13: 2. Business Overview & FY2017 Initiatives
2. Business Overview & FY2017 Initiatives Copyright© Livesense Inc. 13
Slide 14: Segments and Core Media
Segments and Core Media Success fee-based part-time job posting site Human Resources Success fee-based full-time job posting site Employer review Site New graduate employment support service Success fee-based real estate posting site Estate Real Real estate information service Overseas fashion EC si
Slide 15: Business Strategy for FY2017 and Progress - Human Resources
Business Strategy for FY2017 and Progress • Steady progress on acquisition of job posts Jobsense • Increased users, and recommendation measures rolled out. Better matches provided to job applicants looking for part-time jobs • Content for job seekers expanded, including iPhone app and new Human Reso
Slide 16: Business Strategy for FY2017 and Progress - Real Estate, Others
Business Strategy for FY2017 and Progress • Accelerate site improvement cycle, improve KPI and accumulate Real Estate know-how DOOR Chintai • Results trending positively with increase in property listings IESHIL • Provide information based on user needs and increase matching with real estate agencie
Slide 17: Topics: Increase in Job Postings (Jobsense)
Topics: Increase in Job Postings (Jobsense) Actively acquire postings to provide better matches for job seekers. Aim to increase user acquisition and average unit prices in as well as further acquisition of postings. Part-time Job Postings 100,000 50,000 0 1Q 2Q 3Q 4Q 1Q FY2016 FY2017 *Average part-
Slide 18: Topics: Increased Content for Job Seekers (Jobsense Link)
Topics: Increased Content for Job Seekers (Jobsense Link) Increased content for job seekers, including release of iPhone app and new JOBSHIL media. iPhone App Screenshot “JOBSHIL” Site Screenshot Copyright© Livesense Inc. 18
Slide 19: Topics: Increased Use by New Graduate Job Seekers (Syukatsu Kaigi)
Topics: Increased Use by New Graduate Job Seekers (Syukatsu Kaigi) Registered users increasing at 2x previous year’s pace. New Registered Users Site Screenshot 60,000 30,000 0 FY2016 FY2017 1Q 1Q Copyright© Livesense Inc. 19
Slide 20: Topics: Appeal to New Users (Tenshoku Draft)
Topics: Appeal to New Users (Tenshoku Draft) Gaining recognition among web engineers, primarily through reviews. Further expand user base through transportation advertising, roll-out to designers, etc. Transportation Advertising “Designer Draft” to be Held Copyright© Livesense Inc. 20
Slide 21: Invent the next common
Invent the next common Copyright© Livesense Inc. 21
Slide 22: 3. Appendix
3. Appendix Copyright© Livesense Inc. 22
Slide 23: Employees
Employees No. of Employees (Consolidated) Breakdown of Full-time Employees Regular/HQ Regular/R (Unit: Persons) Customer Part-time & Temp. waja/Regular Support waja/Part-time & Temp. 463 460 459 465 2% 441 448 447 Administration 15 15 16 21 415 13 13 13 31 31 30 28 28 12% 10 28 30 29 330 181 171 161
Slide 24: Record of Recent Major Publicity Events
Record of Recent Major Publicity Events Apr. 19, 2017 Interview of representative posted in Shukan Diamond Apr. 5, 2017 Interview of representative posted in Miyazaki Nichinichi Shimbun Apr. 1, 2017 Representative appeared as a commentator on Miyazaki Broadcasting’s program “Hodo Live Tokoton” Mar.
Slide 25: Corporate Profile
Corporate Profile Company Name Livesense Inc. CEO/Founder Taichi Murakami Business Happiness Begetting Happiness. Philosophy Corporate Vision Invent the next common. Established February 8, 2006 TSE 1st Section : October 1, 2012 Date listed TSE Mothers : December 7, 2011 Number of Employees Full-Tim
Slide 26: Invent the next common
Invent the next common Livesense Inc. (below, the Company) has prepared this material to provide current information about the Company. The Company prepared this material using generally known information about social and economic conditions and certain assumptions that we deemed to be reasonable. T