Roxx, Inc. · TSE:241A
Roxx — Q1 FY2025 Earnings Presentation
56 slides from Roxx's earnings presentation, Feb 10, 2025
Slide 1: ROXX, Inc. – February 10, 2025
February 10, 2025 ROXX, Inc.
Slide 2: Disclaimer
Disclaimer • This material includes forward-looking statements. Forward-looking statements are predictions about the future that re ect management’s judgment based on currently available information as of the draft date of this material. As such, these forward- looking statements are subject to vari
Slide 3: Table of Contents
Table of Contents 1 Business Overview 2 Financial Highlights 3 FY2025 Q1 Results 4 Mid-term Target 5 FY2025 Full-year Forecast 6 APPENDIX 3
Slide 4: Today's Presenter
Today’s Presenter Representative Director and Chief Executive Officer Vice President and Chief Financial Officer Taro Nakajima George Yoshimoto, CPA Prior to Founding : Inspired by hard rock from the 70s & 80s 2013 : Joined MUFG Bank’s LBO Finance Team such as TheRollingStones, Led Zeppelin, Aerosmi
Slide 5: Business Overview
ROXx Business Overview
Slide 6: Business Overview
Business Overview ROXX aims to enhance the earning power of Japan’s bottom of the pyramid through full-time employment of the non- desk workers Trying to become Trying to hire full-time full-time Temporary Construction Worker Manufacturing Spot/Part-time Middle/High Restaurant School Graduates Nursi
Slide 7: Social Problem: Labor shortage
Social Problem Labor shortage is becoming a social problem as the workforce in Japan decreases, by 2040 non-desk workers segment is forecasted to suffer from a chronic labor shortage (1) (1) Labor Demand & Supply Simulation Potential Labor Shortage by Industry Approx. 8.5 7.3 1.1M Approx. 4.4 3.3 1.
Slide 8: Social Problem: Income earners below JPY 4.0M
Social Problem Majority of the income earners (25.9M) are below the income grade of JPY 4.0M/Year and remain non-core placements by the traditional recruitment agencies due to lack of work experience Income Earners by Income Grade Workforce by Education Workforce by Experience 5% 17% 21% 34% Income
Slide 9: Recruiting Platform for Non-desk Workers
Recruiting Platform for Non-desk Workers ※ Product Image for Illustration Purposes Only 9
Slide 10: Business Model Overview - Z Career
Business Model Overview - Z Career Z Career provides non-desk workers with a recruitment platform and unique in opening up the platform to partner recruitment agencies Registration Placement Job Seeker Hiring Company • Acquisition of Job Seeker by Recruitment Platform • Job Listing Free and Full ROX
Slide 11: Job Seeker
Job Seeker Job seekers are mainly in their teens with income grade of JPY2.0M/Year and has no degree or experience, seeking to land a stable full-time employment with better pay and schedules Other Contractual Worker Engineer 2% Temporary Worker Reason for Job Change Sales Assistant 3% 3% 4% No Job
Slide 12: Job Seeker - Key Characteristics
Job Seeker - Key Characteristics Job Seekers struggle to decide on the industry and job to pursue on their own and find the hurdle of submitting a CV/ Resume and successfully passing a job interview to be high Not Sure How to Unsuccessful at No Luxury in Choose a Job Screening/Interview Time and Cas
Slide 13: Reference: Flow of Job Seeker
Reference: Flow of Job Seeker Flow of job seeker through acquisition to placement on the Z Career Platform Job seekers to receive consultation through LINE INTERVIEW Awareness as a service for Keywords such as or phone call non-desk workers through “Entry-level” “Full-time” TV and streaming service
Slide 14: Hiring Company
Hiring Company Diverse placement portfolio with “Construction Management”, “Sales & Service” and “Clerical” being top three and occupation with a clear path for continuous progression though skill acquisition tend to be popular Placement Share by Occupation Major Occupation Construction S ales Cleri
Slide 15: Hiring Company - Key Characteristics
Hiring Company - Key Characteristics Target hiring companies hire over 100~1,000 full-time employees each year. Therefore, Z Career does not require as many job listings and competition between Internal/Partner Agent is unlikely to occur Normal Z Career Hiring Volume and Share of Major Hiring Compan
Slide 16: Partner Recruitment Agency
Partner Recruitment Agency More than 30 thousand Recruitment Agencies have a government permit. However, most of them are SMEs and struggle to gather both Job Seekers and Job Listings of Large Enterprises Number of Recruitment Agency Office Mostly Newly Established 31,986 SMEs (1~5 Employees) 32,000
Slide 17: Track Record of Z Career
Track Record of Z Career Solid track record of enhancing the earning power of the non-desk workers through full-time employment. The dollar amount may not be as big but the change it brings to the non-desk workers life is significant Average Wage Improvement User Case Study of Z Career Users Age 23
Slide 18: Financial Highlights
ROXx Financial Highlights
Slide 19: Financial Results Highlights
Financial Results Highlights Q1 Sales rose +49.3% YoY, progressing in-line with previous fiscal years. Operating Loss narrows. FY2025 Q1 Results • Sales: JPY 1,066 Million (YoY:+49.3%) • Operating Loss: JPY (172)Million • Net Loss: JPY (179) Million Mid-term target ”To Be Met” no matter the strategi
Slide 20: FY2025 Q1 Results
ROXx FY2024 Q4 Results
Slide 21: Summary of Q1 FY2025 Results
Summary of Q1 FY2025 Results FY2024 FY2025 YoY Q1 Q1 Sales 714 1,066 +49.3% Sales Growth Rate 80.2% 49.3% 30.9pt Cost of Sales 96 189 +96.8% Cost of Sales Margin 13.5% 17.8% +4.3pt Gross Pro t 618 877 +42.0% Gross Pro t Margin 86.5% 82.2% 4.3pt Selling, General and Administration 819 1,049 +22.8% Se
Slide 22: Financials - Quarterly
Financials - Quarterly Sales has maintained a high growth rate of +49.3% YoY. However, due to the continuous “Strategic Investments” for future sales growth, remains loss making but narrowing by 12.0pt YoY Quarterly Sales Forecast Quarterly Operating Profit & Loss (JPY in Million) 5,235 (JPY in Mill
Slide 23: Sales - Quarterly
Sales - Quarterly Performance revenue has leaped +97.4% YoY. Resulting in QoQ quarterly sales growth, despite the one-off spike in sales of FY2024 Q4 YoY Quarterly Sales (JPY in Million) 49.3 % Performance Revenue - Hiring Company 1,053 1,066 Recurring Revenue - Partner Recruitment Agency (Z Career)
Slide 24: GMV and Take Rate - Quarterly
GMV and Take Rate - Quarterly Steady growth of partner house agent and strong growth of in-house agent. Take rate has risen +11.6% YoY, with the share expansion of the in-house agent 0.5 Quarterly GMV and Take Rate (JPY in Million) 42.5% 42.6% +11.6pt Take Rate 35.4% 32.9% GMV - In-house Agent Take
Slide 25: GMV - Key Profit Indicators
GMV - Key Profit Indicators The number of registered job seeker continues to develop and as the market suffers from a chronic shortage of labor, we see gradual growth in the average commission & fee per placement Number of Registered Job Seekers Average Commission & Fee Per Placement People in Thous
Slide 26: Gross Profit - Quarterly
Gross Profit - Quarterly Launch a the trial service line RPO (Recruitment Process Outsourcing) and labour cost associated to this trial service line has been recorded as cost of sales Quarterly Gross Profit and Gross Profit Margin 889 877 +42.0% (JPY in Million) 786 686 618 528 515 107.5% 107.5% 384
Slide 27: Selling, General and Administrative - Quarterly
Selling, General and Administrative - Quarterly Selling, general and administrative has been managed well within sales growth and resulted in sales ratio of selling, general and administrative to improve 16.3pt YoY Quarterly Selling, General and Administrative (Sales Ratio) 158.0% YoY 134.3% 129.2%1
Slide 28: Number of Employees - Key Profit Indicators
Number of Employees - Key Profit Indicators Number of employee has drastically enhanced as a result of expansion in business operation. Corporate and product development team has also been reinforced to support scalability. Number of Employees Breakdown of Employees by Segment People YoY 20.3 % 33 C
Slide 29: Mid-term Target
ROXx Mid-term Target
Slide 30: Importance of Mass-advertisement
Reference Importance of Mass-advertisement “Mass-advertisement” to act as the core strategic investment to enhance awareness Strategic Market Investment Result Environment of Approx. JPY 0.5 Billion Service for non-desk workers to seek full- Mass-advertisement through TV and Enhanced Customer time e
Slide 31: Reference Creative of Mass-advertisement
Reference Creative of Mass-advertisement Due to Copy Right/Portrait Right reasons, please kindly access below. [Commercial Image] https://roxx.co.jp/news/newsrelease/1m93uj_3bw7/ [Commercial Video] https://www.youtube.com/watch?v=Hy09qLSqx_Q 31
Slide 32: Purpose and Overview of Mass-advertisement
Reference Purpose and Overview of Mass-advertisement Casting Fuma Kikuchi, a popular male idol, since Jan. 4th, 2025 for the mass-advertisement with the purpose of enhancing the recognition of “Full-time Job” “Z Career” Purpose of Mass-advertisement Overview of Mass-advertisement • Since Jan. 4th, 2
Slide 33: Nature of Strategic Investment
Reference: Nature of Strategic Investment Strategic Investment to be carried out to raise awareness of Z Career under our discipline and positioned as a temporary measure Illustrative Image of Operating Profit Difference between COS and SG&A With Strategic Without Item Nature of Cost Cost of Sales I
Slide 34: Mid-term Target
Mid-term Target Non-desk worker segment of the recruitment market is a huge opportunity and mid-term target within range excluding sales contribution from mass-advertisement Illustrative Image of Future Revenue Growth of ROXX Revenue through Mid-term Target FY27/9 Direct Scout FY24/9 Sales (AI Scout
Slide 35: FY2025 Full-year Forecast
FY2024 Full-year Forecast 35
Slide 36: Summary of FY2025 Full-year Forecast
Summary of FY2025 Full-year Forecast FY2024 FY2025 YoY Full-year Full-year Forecast Sales 3,476 5,235 +50.6% Sales Growth Rate 67.5% 50.6% 16.9pt Cost of Sales 496 1,002 +102.0% Cost of Sales Margin 14.3% 19.1% +4.8pt Gross Pro t 2,980 4,232 +42.0% Gross Pro t Margin 85.7% 80.9% 4.8pt Selling, Gener
Slide 37: Assumptions for FY2025 Full-year Forecast
Assumptions for FY2025 Full-year Forecast Item Forecast Assumptions Sales • Does not include sales contribution from mass-advertisement Cost of Sales • Mainly personnel and outsourcing cost, research outsourcing cost • Mainly personnel and outsourcing cost, advertising and promotion cost and other c
Slide 38: Relocation and Team Expansion
Relocation and Team Expansion As a side effect of the relocation and team expansion to increase capacity for the mass-advertisement, temporary drop in employee productivity to be anticipated in the first half of FY2025 but anticipated to recover promptly Overview of Relocation & Team Expansion Illus
Slide 39: Reference Seasonality of Performance
Reference Seasonality of Performance In addition to HR industry seasonality, impact of “Strategic Investment” and “Hiring” is anticipated to result in a comparatively larger loss in the 1H (Q1 and Q2) of the fiscal year ending September 2025 Seasonality of Performance Q1 Q2 Q3 Q4 Impact of HR Indust
Slide 40: Frequently Asked FAQs
Repost of Dec. 5th, 2024: Frequently Asked FAQs (Impact of Policies etc. on the Business) Frequently Asked FAQs Do you see any instances of illicit part-time jobs (known as “Yami Baito” in Japan) ? There has been no reports to date in association with illicit part-time jobs. Our platform focuses on
Slide 41: APPENDIX
ROXx APPENDIX
Slide 42: Company Overview
Company Overview Company ROXX, Inc. (Tokyo Stock Exchange:241A) Name Shinjuku East Side Square 8F, Address 6-27-30, Shinjuku, Shinjuku-ku, Tokyo Taro Nakajima, Representative Director and Chief Representative Executive Of cer Date November 1st, 2013 Founded Fiscal September Ye a r - e n d Number of
Slide 43: Management
Management Representative Director Senior Vice President Senior Vice President & Chief Executive Officer & Chief Operating Of cer & Chief Human Resource Of cer Taro Nakajima Daisuke Ueki Hiroto Nisimura Prior to Founding : Inspired by hard rock from the 70s & 80s such as TheRollingStones, Led Zeppel
Slide 44: Management
Management Vice President Vice President of Vice President of & Chief Technology Officer New Business Corporate Consulting Kota Matsumoto Kazuhito Owa Shun Fujimine Vice President Vice President Vice President of & Chief Financial Officer & Chief Administrative Officer Engineering George Yoshimoto,
Slide 45: Outside Director/Advisor/Auditor
Outside Director/Advisor/Auditor Full-time Auditor Tsuyoshi Kabaya Part-time Auditor Outside Director Outside Director Advisor Miki Amemiya Hiroshi Fukudome Masanori Sugiyama Yo Nagami Part-time Auditor Shigeru Omura 45
Slide 46: Positioning of Z Career
Positioning of Z Career Due to the difference in target hiring companies, job requirements and commissions, the emerging non-desk worker market segment is currently not served by the traditional recruitment agencies Percent within the Income Earners Traditional Hiring Company Job Commission Platform
Slide 47: Market Size of the Non-desk Worker Segment
Market Size of the Non-desk Worker Segment Non-desk worker segment of the recruitment market has more than four-times the market size of other segments and is currently under-penetrated with significant potential upside (2) Job Turnover Rate & Potential Upside by Market Segment Potential Up-side App
Slide 48: Reference: Recruitment Market Transition
Reference: Recruitment Market Transition Macro environment of shrinking workforce has shifted the recruitment budget from job boards to full commission based Z Career Full-time Job Listing on Job Boards Transition from Job Boards to Z Career 14,000 Due to shrinking workforce, marketing 12,000 13,038
Slide 49: Entry Barrier to Non-desk Worker Segment
Entry Barrier to Non-desk Worker Segment Leading recruitment platform for non-desk workers, tapping into the emerging market segment currently not served by the traditional recruitment agencies A Barrier to entry from Part-time Segment Recruitment Agent Direct Recruitment • Recruitment needs of full
Slide 50: Difference between High-class Segment
Reference: Difference between High-class Segment Job seeker behavior is completely different between the high-class segment and the non-desk worker segment making it difficult for a single service to rolled out cross segment High-class Segment Non-desk Worker Segment To Build upon the Current Indust
Slide 51: Difference between Part-time Segment
Reference: Difference between Part-time Segment Every industry has jobs with skill/legal requirements of a full-time worker and the workforce shortage outweighs that of a part-time worker Number of Entry-level Full-time Job Listings Workforce Shortage by Industry 2018 as 1.0x People in Million 3.5 5
Slide 52: Entry Barrier through AI-based Product Development
Entry Barrier through AI-based Product Development Generative AI-based products to streamline the recruitment process, improving profitability and building new revenue source Application Phase Selection Phase Traditional Preparing Paperwork Interview Final Process Targeting Scout Distribution Applic
Slide 53: Reference: Job Seeker/Placement Data
Reference: Job Seeker/Placement Data Platform data and generative AI utilized to streamline the recruitment process, for the job seeker, recruitment agent and hiring company Placement Rate Data Accumulation 1 High quality data of Job Seeker Improve Lead-time and and Placement Data Acceptance Rate Jo
Slide 54: Maintaining High Sales Growth
Maintaining High Sales Growth Disciplined investment through “Strategic Investment” to maintain high sales growth for the future Mid-term Target Annual Sales 10,000 (JPY in Million) Forecast 5,235 3,476 2,075 886 1,214 280 580 FY19/9 FY20/9 FY21/9 FY22/9 FY23/9 FY24/9 FY25/9 FY26/9 FY27/9 54
Slide 55: Social Impact
Social Impact Raising the standard of living of the non-desk worker has a direct social impact on the number of marriages and birth rates Environmental, Social, and Governance Social Impact • Climate Actions • Structural mismatch from declining birthrate, aging Environment • Greenhouse Gas Emissions
Slide 56: Difference in Wage of Full-time and Part-time Employment
Reference: Difference in Wage of Full-time and Part-time Employment Wage gap of Full-time and Part-time Employment to widen as you age. Strong desire to become Full-time Employment considering the future Difference in Wage of Full-time and Part-time Employment Wage of Full-time Employment 6,327 6,40