Slide 1: Financial Results Briefing Material, Q1 FY2024
1st Quarter of Fiscal Year Ending March 2024 (FY2024) Financial Results Briefing Material Interworks Confidence Inc. （Former name: Confidence Inc. ） Securities code: 7374
Slide 2: Table of Contents
Table of Contents 01 02 03 P.3 P. 9 P. 12 Executive Summary Company Consolidated Financial Overview Results and Segment Results 04 P. 21 05 P. 24 Overview of The consolidated earnings forecast Merger and dividend forecast Agreement for FY2024 Copyright© Confidence Inc. All Rights Reserved. | 2
Slide 3: Executive Summary
01 Executive Summary Copyright© Confidence Inc. All Rights Reserved. | 3
Slide 4: Financial Highlights of Q1 FY2024
Financial Highlights of Q1 FY2024 [Operating Results of Former Confidence Inc.] New record-high figures achieved in revenue as well as profits at respective stages for Q1 FY2024 Achieved year-on-year growth of 12.7% in revenue and 19.6% in operating profit ▍Q1 results (operating results of forme
Slide 5: 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 Since August 1, 2023 New compa
Slide 6: Summary of Earnings Forecast for FY2024 Ending March 2024
Summary of Earnings Forecast for FY2024 Ending March 2024 Based on the merger with Interworks, the earnings forecast for FY2024 projects revenue of 8.0 billion yen (up 53.9% year on year) Operating profit is projected to be 1.12 billion yen (operating profit margin: 14.0%) after reflecting amort
Slide 7: Trends in Revenue / Operating Profit Over the Years
Trends in Revenue / Operating Profit Over the Years Progress rate against the earnings forecast announced today stood at 17.6% for revenue (24.1% in FY2023) / 25.2% for operating profit (27.8% in FY2022) The Q1 results are for Confidence (before merger) alone, and the figures of Interworks will
Slide 8: Summary of Dividend Forecast for FY2024
Summary of Dividend Forecast for FY2024 A dividend of 55.0 yen per share (including an interim dividend of 25.0 yen per share) is planned to be paid for FY2024 ending March 2024 ▍Full-year earnings forecast for FY2024 ▍Trends in dividend per share +14.6% Year-end dividend (current forecast) Interi
Slide 9: Company Overview
02 Company Overview Copyright© Confidence Inc. All Rights Reserved. | 9
Slide 10: Company Overview of Interworks Confidence Inc.
Company Overview of Interworks Confidence Inc. (Former name: Confidence Inc.) Company Kabushiki Kaisha Confidence Interworks (English name: Interworks Confidence Inc.) name Vision Representative Nobuyuki Takushi, President Established August 2014 Empowering Professionals to BYGS Shinjuku Bldg. 10F H
Slide 11: Business Overview of Interworks Confidence Inc.
Business Overview of Interworks Confidence Inc. Confidence’s mainstay staffing business and Interworks’ mainstay job opening advertisement business and recruitment business are areas having very high affinity Leverage the business areas where the two companies have strengths in the HR Solution a
Slide 12: Consolidated Financial Results and Segment Results
03 Consolidated Financial Results and Segment Results Copyright© Confidence Inc. All Rights Reserved. | 12
Slide 13: [Consolidated] Financial Highlights of Q1 FY2024
[Consolidated] Financial Highlights of Q1 FY2024 [Financial Results of Former Confidence Inc.] Revenue and respective profits continued to grow steadily from the year-earlier period Ongoing growth while maintaining high profit margins with gross profit margin at 36.7% (target: over 30%) and oper
Slide 14: [Consolidated] Quarterly Results Trends by Business
[Consolidated] Quarterly Results Trends by Business [Financial Results of Former Confidence Inc.] Achieved record-high figures both in revenue and operating profit in Q1 to continue the upward trend, driven by the strong growth of the HR Solution business, our mainstay business ▍Revenue (quarterly
Slide 15: [HR Solution Business] Financial Highlights of Q1 FY2024
[HR Solution Business] Financial Highlights of Q1 FY2024 [Financial Results of Former Confidence Inc.] Revenue and segment profit grew steadily, with the number of creator staffing assignments increasing and the profit margin kept at a high level ▍Q1 results FY2023 FY2024 FY2023 (Million yen) YoY
Slide 16: [HR Solution Business] Trends in Major KPIs
[HR Solution Business] Trends in Major KPIs [Financial Results of Former Confidence Inc.] Creator staffing assignments, which serve as the foundation of the Company’s recurring income model, steadily increased, although they slightly stagnated in Q4 FY2023, rising by 62 people from the year-earlie
Slide 17: [Media Business] Financial Highlights of Q1 FY2024
[Media Business] Financial Highlights of Q1 FY2024 [Financial Results of Former Confidence Inc.] As our policy for the Media business, we aim to establish and expand the ecosystem through collaboration with the HR Solution business, after securing profitability of the business as a minimum require
Slide 18: [Consolidated] Quarterly SG&A Expenses Trends
[Consolidated] Quarterly SG&A Expenses Trends [Financial Results of Former Confidence Inc.] In line with the revenue growth, made investments to prepare for future growth, taking account of our target profit margin ➡ appropriately controlled SG&A expenses ▍Quarterly trends *1 Includes provision fo
Slide 19: Factor Analysis of Increase/Decrease in Operating Profit (YoY)
[Consolidated] Factor Analysis of Increase/Decrease in Operating Profit (YoY) [Financial Results of Former Confidence Inc.] Gross profit increased steadily along with business expansion, contributing to larger operating profit Moreover, recruited head office employees and took measures in line w
Slide 20: Balance Sheets/Statements of Cash Flows
[Consolidated] Balance Sheets/Statements of Cash Flows [Financial Results of Former Confidence Inc.] There is no concern about financial stability (net cash: 1.97 billion yen / equity ratio: 72.6%) All borrowings have been fully repaid by the end of May 2023 ▍Balance sheets at end of Q1 FY2024 ▍
Slide 21: Overview of Merger Agreement
04 Overview of Merger Agreement Copyright© Confidence Inc. All Rights Reserved. | 21
Slide 22: 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 Since August 1, 2023 New compa
Slide 23: Background and Purpose of the Business Integration
Background and Purpose of the Business Integration ▍Purpose of business integration Press release dated May 12, 2023 1 Expanding the business areas of the HR Solution business / achieving business growth through cross-selling 2 Reinforcing the Media business 3 Strengthening business management found
Slide 24: The consolidated earnings forecast and dividend forecast for FY2024
05 The consolidated earnings forecast and dividend forecast for FY2024 Copyright© Confidence Inc. All Rights Reserved. | 24
Slide 25: 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 26: 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 27: 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 28: 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