Roxx, Inc. · TSE:241A
Roxx — Q2 FY2025 Earnings Presentation
56 slides from Roxx's earnings presentation, May 15, 2025
Slide 1: ROXX, Inc.
May 15, 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 Q2 Results 4 Reflection 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 grade of workers
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 As per Guidance, Sales are up but Operating Profit are down, due to “Relocation & Team Expansion” and “Mass-advertisement” FY2025 Q2 Results • Sales: JPY 913Million (YoY:+15.5%) • Operating Loss: JPY (611)Million • Net Loss: JPY (620) Million • Although the Market remain
Slide 20: FY2025 Q2 Results
ROXx FY2025 Q2 Results
Slide 21: Summary of Q2 FY2025 Results
Summary of Q2 FY2025 Results FY2024 FY2025 (JPY in Million) YoY Q2 Q2 Sales 790 913 +15.5% Sales Growth Rate 68.9% 15.5% 53.4pt Cost of Sales 103 197 +89.9% Cost of Sales Margin 13.1% 21.6% +8.5pt Gross Pro t 686 716 +4.3% Gross Pro t Margin 86.9% 78.4% 8.5pt Selling, General and Administration 925
Slide 22: Financials - Quarterly
Financials - Quarterly Sales has slowed down with YoY +15.5% and loss making expanding YoY 36.7pt with “Relocation & Team Expansion” and “Mass-advertisement” Quarterly Sales Forecast Quarterly Operating Profit & Loss (JPY in Million) 5,235 (JPY in Million) 4Q:41 1Q:(186) 1Q:(172) 3,476 1Q:(200) Fore
Slide 23: Sales - Quarterly
Sales - Quarterly Performance revenue has fallen QoQ JPY 140M. However, the drop in performance revenue has bottomed out and back to a growth trajectory YoY Quarterly Sales 15.5 % (JPY in Million) Performance Revenue - Hiring Company 1,053 1,066 Recurring Revenue - Partner Recruitment Agency (Z Care
Slide 24: GMV and Take Rate - Quarterly
GMV and Take Rate - Quarterly Along with the drop in GMV of the in-house agent, take rate has temporarily dropped. However, see both GMV of the in-house agent and take rate to be back up from Q3 onwards 0.5 Quarterly GMV and Take Rate (JPY in Million) 42.5% 42.6% 37.7% +4.7pt Take Rate 35.4% 32.9% G
Slide 25: GMV - Key Profit Indicators
GMV - Key Profit Indicators The number of registered job seeker has successfully accumulated with “Mass-advertisement”. Also, an improvement in acquisition cost has been evident Number of Registered Job Seekers Average Commission & Fee Per Placement People in Thousands JPY in Thousands YoY YoY 7.8 %
Slide 26: Gross Profit - Quarterly
Gross Profit - Quarterly Temporary sales drop has resulted in a Gross Profit Margin squeeze but no major change in the absolute amount of the cost of sales. Anticipate a Gross Profit Margin of roughly 80% going forwards Quarterly Gross Profit and Gross Profit Margin (JPY in Million) Gross Profit Mar
Slide 27: Selling, General and Administrative - Quarterly
Selling, General and Administrative - Quarterly Sales ratio of Selling, General and Administrative has has temporarily increased due to “Mass-advertisement” Quarterly Selling, General and Administrative (Sales Ratio) YoY 158.0% 28.3 pt 145.3% 134.3%129.2%140.0% 126.5%127.6% 128.0% 23.9% 3.2pt 76.8%
Slide 28: Number of Employees and Breakdown by Segment
Number of Employees and Breakdown by Segment Number of employee has enhanced especially within the Matching Division of the Z Career Business and hiring well above target. Number of Employees Breakdown of Employees by Segment People YoY 15.6 % 30 Corporate 304 36 9.9% 287 285 290 263 Engineer 9.9% 1
Slide 29: Reflection
ROXx Reflection
Slide 30: Reflection of FY2025 Q1 Results
Reflection of FY2025 Q1 Results 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 Repost: Seasonality of Performance Q1 Q2 Q3 Q4 Re ection Overvi
Slide 31: Reflection Overview
Reflection Overview The overall productivity of Q2 has been lower than expected. However, productivity has bottomed out with the continuous improvements and anticipate to be back up from Q3 onwards Productivity (1) Evaluation of Evaluation of Evaluation of Evaluation of Each Initiatives Relocation &
Slide 32: Reflection 1: Relocation & Team Expansion (1/2)
Reflection 1: Relocation & Team Expansion (1/2) As a side effect of the relocation and team expansion to increase capacity for the mid-term, temporary drop in employee productivity to be anticipated in the first half of FY2025 but anticipated to recover promptly Repost: Overview of Relocation & Team
Slide 33: Reflection 1: Relocation & Team Expansion (2/2)
Reflection 1: Relocation & Team Expansion (2/2) Both hearing meeting rate due to segregation of duty and placement rate due to enhanced consultation quantity have decreased. As with the most recent statistics, optimization through operational efficiency has been seen. Hearing Meeting Rate Placement
Slide 34: Reflection 2: Mass-advertisement (1/2)
Reflection 2: Mass-advertisement (1/2) Although mass-advertisement was not sufficient to become the “First Call Agent”, a huge lift-up in recognition was evident Repost: Purpose of Mass-advertisement Enhanced Recognition Recognition of “Full-time Job” “Z Career” 49.1% Which service comes to mind whe
Slide 35: Reflection 2: Mass-advertisement (2/2)
Reflection 2: Mass-advertisement (2/2) Further operational efficiency is required with a wider job seeker persona, expansion in the number of job seekers and improvement in acquisition cost can be seen No. of Job Seekers Acquisition Cost Initiative Results QoQ QoQ 46.7 % 19.0 % Issue Enhanced Not Re
Slide 36: Market and Competitive Environment
Market and Competitive Environment The market remains strong with high effective job opening ratio and application to placement rate by the hiring companies Effective Job Opening Ratio Application to Placement Rate (1) Nikkei Stock Average Multiple Major Non-desk Worker Industries 2.7 2.7 2.7 Has re
Slide 37: RPO (Recruitment Process Outsourcing)
RPO (Recruitment Process Outsourcing) The market remains strong with high effective job opening ratio and application to placement rate by the hiring companies Illustrative Image of RPO Plan Illustrative Image of Financial Impact Regular Plan RPO Plan Partner Agent Regular Plan RPO Plan Sales Cost =
Slide 38: Reflection of FY2025 Q2 Results
Reflection of FY2025 Q2 Results Reflecting back on the process of the Segregation of duty, a smoother transition was possible. However, results of enhanced productivity from high performers are evident and we plan to roll this out to the team (1) Change in Overall Productivity Change in High Perform
Slide 39: FY2025 Full-year Forecast
FY2025 Full-year Forecast 39
Slide 40: Summary of FY2025 Full-year Forecast
Summary of FY2025 Full-year Forecast Market remains strong and productivity has bottomed out, therefore turning profitable in the second half. Also, RPO is expected to cover some of the shortfalls and the Full-year Forecast remains unchanged FY2024 FY2025 (JPY in Million) YoY Full-year Full-year For
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: Reference: 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: Reference: 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: Reference: 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