Slide 1: FY2020 2nd Quarter Financial Results
FY2020 2nd Quarter Financial Results Livesense Inc. (TSE1: 6054) August 14, 2020
Slide 2: Agenda
1 Financial Results 2 Business Overview Agenda 3 Policy for 2H 4 Appendix Copyright © LIVESENSE Inc.
Slide 3: 1. Financial Results
1. Financial Results
Slide 4: Executive Summary for the 2nd Quarter
Executive Summary for the 2nd Quarter 4 Consolidated sales and income down due primarily to decreased corporate hiring activities as a result of novel coronavirus and impact of DOOR Chintai business transfer. Net sales ¥1,003 million （ YoY -¥626 million -38.4% ） Operating income -¥276 million （
Slide 5: Quarterly Financial Results Overview
Quarterly Financial Results Overview 5 (Millions of JPY) FY2019 FY2020 YoY 2Q 2Q Net Sales 1,629 1,003 ▲38.4% Operating Income 63 ▲ 276 － Operating Margin(%) 3.9% － － Ordinary Income 97 ▲ 274 － Profit attributable to 69 ▲ 274 － owners of parent (Reference) Quarterly Financial Results Overview Exclud
Slide 6: Net Sales and Operating Income
Net Sales and Operating Income 6 Consolidated net sales down 38.4% YoY, consolidated operating income down ¥339 million YoY due mainly to impact of novel coronavirus and transfer of DOOR Chintai business. (Millions of JPY) Net Sales Business Operating Income transfer spread of novel coronavirus 1,62
Slide 7: Operating Income - YoY Comparison
Operating Income - YoY Comparison 7 Some ad placements adjusted in conjunction with decrease in net sales. (Millions of JPY) 2Q/19 Operating income 2Q/20 63 Net sales Operating Decrease income -626 -276 Other expenses Advertising Decrease costs +46 Decrease +267 Personnel expenses Increase -28 Copyr
Slide 8: Operating Expenses
Operating Expenses 8 Advertising costs decreased ¥ 267 million as result of some ad placement adjustments in conjunction with decrease in net sales. (Millions of JPY) Personnel expenses Advertising costs Others 1,637 1,566 1,519 1,472 1,478 426 410 1,279 402 384 412 363 610 656 535 564 523 342 552 5
Slide 9: 2. Progress
2. Progress
Slide 10: 2. Progress Company-wide Policy
10 2. Progress Company-wide Policy Copyright © LIVESENSE Inc.
Slide 11: Company-wide Policy
Company-wide Policy 11 FY2020 Company-wide Policy Accelerate optimization of business portfolio to pursue our corporate vision “Invent the next common.” Business Strategy 2nd Quarter Progress • Ascertained impact of novel coronavirus and reviewed prioritization Enhance profitability of of measures e
Slide 12: Optimization of Business Portfolio
Optimization of Business Portfolio 12 Business portfolio concept Accelerate optimization of business portfolio and establish policies by domain. Allow short-term negative P&L depending on progress in each domain. Distant Profit-earning New business domain domain Launch through proprietary Pursue M&A
Slide 13: Optimization of Business Portfolio: Progress
Optimization of Business Portfolio 13 Progress Syukatsu Kaigi transferred on July 1, 2020, and progress made on optimization of business portfolio. Will continue to pursue M&As in profit-earning domain as opportunities arise. Distant Machbaito Profit-earning New business Tenshoku Kaigi domain domain
Slide 14: Syukatsu Kaigi Transfer
Optimization of Business Portfolio 14 Syukatsu Kaigi Transfer Transfer to Port Inc., which operates “Career Park!” and other services. Transfer price of ¥850 million. Transfer price revised based on current situation. Price dropped from time of basic agreement, but priority placed on restructuring b
Slide 15: Acquisition of Treasury Shares
Acquisition of Treasury Shares 15 Acquisition of 740,000 treasury shares complete (July 29). Swift implementation of a capital policy that addresses changes in the management environment now possible. Type of shares Common shares acquired Total number of shares 740,000 shares acquired Total value of
Slide 16: 2. Progress Existing Businesses
16 2. Progress Existing Businesses Copyright © LIVESENSE Inc.
Slide 17: Net Sales and Operating Income of Existing Businesses
Net Sales and Operating Income of 17 Existing Businesses Net sales down ¥469 million YoY due to impact of novel coronavirus. Operating income down ¥277 million YoY due to adjustment of ad placements in conjunction with decrease in net sales. Net Sales (Millions of JPY) Operating Income 1,472 1,356 1
Slide 18: Machbaito
Major Media Topics 18 Machbaito Sales were up in 1st half, but down in 2nd quarter due to impact of novel coronavirus. Number of job openings down substantially overall. Meanwhile, no significant decrease in user job search demand observed, so matching promoted with companies with high demand for hi
Slide 19: Tenshoku Kaigi
Major Media Topics 19 Tenshoku Kaigi Company information pages heavily revised to increase media value. Site improvements resulted in substantial increase in page views per visit and member registration rate. Revised company information page Trends in media indicators page views per visit member reg
Slide 20: 2. Progress New Businesses
20 2. Progress New Businesses Copyright © LIVESENSE Inc.
Slide 21: Status of New Business Initiatives
Status of New Business Initiatives 21 Aiming for business model not dependent on customer attraction via search traffic. Multiple business proposals simultaneously being considered at specialized organizations. Aim is to launch several new businesses within two years. New business strategy Basic pol
Slide 22: Status of New Business Initiatives
Status of New Business Initiatives 22 Test marketing and prototyping underway for multiple new business proposals. No change to investment plan despite impact of novel coronavirus. New business proposals under development/consideration (example) HR planning tech service HR hiring tech service Life e
Slide 23: 2. Progress Organization
23 2. Progress Organization Copyright © LIVESENSE Inc.
Slide 24: Becoming a Company That Enjoys the Continued Support of Society
Becoming a Company That Enjoys the Continued 24 Support of Society Continuing initiatives from previous year based on “Nine Guidelines for Change.” Aiming to develop meaning in working at Livesense, securing outstanding human resources and realizing a strong organization with consistent values. Nine
Slide 25: Becoming a Company That Enjoys the Continued Support of Society
Becoming a Company That Enjoys the 25 Continued Support of Society Received award for excellence in HR management category at 9th Japan HR Challenge Awards for management/HR initiative tied to Management Design Project. Work on Livesense identity clarification project begun in aim of establishing an
Slide 26: 3. Policy for 2H
3.Policy for 2H
Slide 27: Company-wide Policy for 2H of FY2020
Company-wide Policy for 2H of FY2020 27 Policy: No changes Accelerate optimization of business portfolio to pursue our corporate vision “Invent the next common.” Enhance profitability of existing businesses • Achieve level of income that makes ongoing business investments possible. • This period’s
Slide 28: Enhancing Profitability of Existing Businesses
Enhancing Profitability of Existing 28 Businesses Aim to improve real business value without implementing temporary measures and cost reductions that will lead to loss of future business value. Allow results to deteriorate this period. Work to strengthen structure peri-/post-corona through site impr
Slide 29: Launching New Business
Launching New Business 29 Expand specialized organizational structure and develop/consider multiple business proposals simultaneously. Aim to improve development speed and success rate by transferring human resources secured through business selection and concentration, including multiple executive
Slide 30: Becoming a Company That Enjoys the Continued Support of Society
Becoming a Company That Enjoys the 30 Continued Support of Society Look for new work styles for peri-/post-corona situation. Continue to consider better work style leading to maximization of productivity and results based on approach of freedom and self-control. Aiming for new work styles based on f
Slide 31: Impact of Novel Coronavirus
Impact of Novel Coronavirus 31 Shrinking of corporate hiring activities impacted existing businesses. No significant impact on new businesses or finances. Implement flexible measures in anticipation of future trends and environmental changes arising from novel coronavirus. Impact Short-term policies
Slide 32: Full-Year Financial Forecast for FY2020
Full-Year Financial Forecast for FY2020 32 Financial forecast to be determined due to difficulty in reasonably calculating impact of novel coronavirus. Consolidated net sales and operating income both expected to be down YoY. Forecast to be announced as soon as appropriate and reasonable calculation
Slide 33: 4. Appendix
4. Appendix
Slide 34: 4. Appendix Corporate Profile
34 4. Appendix Corporate Profile Copyright © LIVESENSE Inc.
Slide 35: Corporate Profile
Corporate Profile 35 Company name Livesense Inc. CEO/Founder Taichi Murakami Business Philosophy Happiness Begetting Happiness. Corporate Vision Invent the next common. Established February 8, 2006 Date listed TSE 1st Section: October 1, 2012 TSE Mothers: December 7, 2011 Number of Employees (Non-Co
Slide 36: Employees
Employees 36 No. of Employees (Consolidated) Breakdown of Full-time Employees Regular/HQ Regular/R (People) Part-time Regular/Subsidiaries Administr Part-time/Subsidiaries Customer ation Support 16% Engineers/D 3% esigners 416 415 37% 408 408 400 388 397 17 16 7 7 7 381 6 6 6 110 111 118 115 113 118
Slide 37: 4. Appendix Our Strategy for FY2020
37 4. Appendix Our Strategy for FY2020 Copyright © LIVESENSE Inc.
Slide 38: Company-wide Policy for 2H of FY2020
Company-wide Policy for 2H of FY2020 38 Policy: No changes Accelerate optimization of business portfolio to pursue our corporate vision “Invent the next common.” Enhance profitability of existing businesses • Achieve level of income that makes ongoing business investments possible. • This period’s
Slide 39: Enhancing Profitability of Existing Businesses
Enhancing Profitability of Existing Businesses 39 Raise profit level through sales growth and streamlining of operations. Aim to expand sales and profit in three major services, particularly Machbaito and Tenshoku Navi. Services Machbaito Tenshoku Kaigi Tenshoku Navi (Excluding Tenshoku Kaigi BUSINE
Slide 40: Launching New Business
Launching New Business 40 Businesses started in recent years have not grown into pillars as of yet. Launch several new businesses within two years in the aim of establishing services that will serve as new pillars for the Company. Strengthen the proprietary development system and actively pursue bus
Slide 41: Optimizing Business Portfolio
Optimizing Business Portfolio 41 Accelerate optimization of business portfolio and establish policies by domain. Allow short-term negative P&L depending on progress in each domain. Distant Profit-earning New business domain domain Launch through proprietary Pursue M&As as opportunities development a
Slide 42: Becoming a Company That Enjoys the Continued Support of Society
Becoming a Company That Enjoys the 42 Continued Support of Society Continuously update the company stance to become a company that enjoys the continued support of society. Develop meaning in working at Livesense and work on increasing our company’s presence in the hiring market and employee engageme
Slide 43: Livesense Inc. (below, the Company) has prepared this material to provide current information about
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. The information found in