Slide 1: FY2020 3rd Quarter Financial Results
FY2020 3rd Quarter Financial Results Livesense Inc. (TSE1: 6054) November 13, 2020
Slide 2: Agenda
1 Financial Results Agenda 2 Progress 3 Appendix Copyright © LIVESENSE Inc.
Slide 3: 1. Financial Results
1. Financial Results
Slide 4: Executive Summary for the 3rd Quarter
Executive Summary for the 3rd 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 ¥883 million （ YoY -¥665 million -43.0% ） Operating income -¥343 million （ Yo
Slide 5: Quarterly Financial Results Overview
Quarterly Financial Results Overview 5 (Millions of JPY) FY2019 FY2020 YoY 3Q 3Q Net Sales 1,548 883 ▲43.0% Operating Income ▲ 88 ▲ 343 － Operating Margin(%) － － － Ordinary Income ▲ 69 ▲ 290 － Profit attributable to ▲ 49 ▲ 357 － owners of parent *Supplemental information for accounting treatment of
Slide 6: Net Sales and Operating Income
Net Sales and Operating Income 6 Consolidated net sales down 43.0% YoY, consolidated operating income down ¥254 million YoY due mainly to impact of novel coronavirus and transfer of DOOR Chintai business. (Millions of JPY) Business transfer spread of novel coronavirus 1,629 1,531 1,548 1,480 367 1,3
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) 3Q/19 Operating income -88 Other expenses Decrease Advertising costs +63 Decrease 3Q/20 +354 Operating income -343 Personnel expenses Increase -6 Net sales Decrease -665 Copyr
Slide 8: Operating Expenses
Operating Expenses 8 Some ad placement adjustments continued. Expenses almost unchanged from previous quarter. (Millions of JPY) Personnel expenses Advertising costs Others 1,637 1,566 1,519 1,472 1,478 426 410 1,279 402 1,226 384 412 363 363 610 656 535 564 523 342 302 552 545 553 552 543 573 560 1
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 3rd Quarter Progress • Financial results flat due to novel coronavirus Enhance profitability of • Progress on media improvements
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: Progress on Restructuring Business Portfolio
Optimization of Business Portfolio 13 Progress on Restructuring Business Portfolio Two businesses transferred in last year. Progress being made on securing human resources for growth. Among existing businesses, Machbaito performing well*, focus on new businesses. *Prior to spread of novel coronaviru
Slide 14: Impact of Novel Coronavirus
Impact of Novel Coronavirus 14 Novel coronavirus situation not improving; shrinking of corporate hiring activities will continue. Market environment not expected to return to normal in near future. No change to overall policy of focusing on medium- to long-term growth. Impact Short-term policies Med
Slide 15: 2. Progress: Existing Businesses
15 2. Progress Existing Businesses Copyright © LIVESENSE Inc.
Slide 16: Enhance Profitability of Existing Businesses
Enhance Profitability of Existing Businesses 16 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 improv
Slide 17: Net Sales and Operating Income of Existing Businesses
Net Sales and Operating Income of 17 Existing Businesses Net sales down ¥473 million YoY due to impact of novel coronavirus. Timing of hiring decisions and recording of sales differ with success fee-based products, so sales fell short of previous quarter, which included pre-corona numbers. (Millions
Slide 18: Machbaito: Major Media Topics
Major Media Topics 18 Machbaito Recommendation function with new recommendation algorithm released. Jobs closely reflecting user preferences recommended with high accuracy by combining user behavior history with natural language processing of job information. Recommendation screen in app Recommendat
Slide 19: Machbaito: Major Media Topics
Major Media Topics 19 Machbaito Cultivate customers with steady hiring needs even in midst of novel coronavirus situation. Work on efficient monetization by matching job applicants with customers having substantial hiring needs through linking of sales, marketing and media. Changes in customer makeu
Slide 20: Tenshoku Kaigi: Major Media Topics
Major Media Topics 20 Tenshoku Kaigi Clubhouse partnering system released to expand partners. Promote matching of users and recruitment agencies by substantially lowering costs for becoming new partner. Partnering Model Tenshoku Kaigi Recruitment agencies Registration User Recommend Recruitment (job
Slide 21: Optimization of Costs According to Changes in Environment
Optimization of Costs According to 21 Changes in Environment Optimize costs for shift to new work styles and strengthening of profitability. Costs to be reduced by more than 100 million yen/year next year and beyond. Major items Cancellation of contracts with existing offices in conjunction with shi
Slide 22: 2. Progress: New Businesses
22 2. Progress New Businesses Copyright © LIVESENSE Inc.
Slide 23: Launching New Business
Launching New Business 23 Aim for different model than existing businesses to diversify business models. Multiple business proposals simultaneously being considered at specialized organizations. Aim is to launch several new businesses within two years. New business strategy New Existing businesses b
Slide 24: Status of New Business Initiatives
Status of New Business Initiatives 24 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 25: 2. Progress: Organization
25 2. Progress Organization Copyright © LIVESENSE Inc.
Slide 26: Becoming a Company That Enjoys the Continued Support of Society
Becoming a Company That Enjoys the Continued 26 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 27: "Invent our next work and life style" Project
“Invent our next work and life style” Project 27 Launched “Invent our next work and life style” project for reviewing and trying out new work styles. Look for better work style and company ideals in aim of maximizing productivity and results. Basic policy Balance freedom and self-control at a high l
Slide 28: 3. Appendix
3. Appendix
Slide 29: 3. Appendix: Corporate Profile
29 3. Appendix Corporate Profile Copyright © LIVESENSE Inc.
Slide 30: Corporate Profile
Corporate Profile 30 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 31: Employees
Employees 31 No. of Employees (Consolidated) Breakdown of Full-time Employees Regular/HQ Regular/R (People) Part-time Regular/Subsidiaries Administr Customer Part-time/Subsidiaries ation Support 14% 4% Engineers/D 415 408 408 esigners 400 397 398 16 7 7 7 388 6 381 6 6 36% 6 111 118 115 118 114 110
Slide 32: 3. Appendix: Our Strategy for FY2020
32 3. Appendix Our Strategy for FY2020 Copyright © LIVESENSE Inc.
Slide 33: Company-wide Policy for 2H of FY2020
Company-wide Policy for 2H of FY2020 33 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 34: Enhancing Profitability of Existing Businesses
Enhancing Profitability of Existing Businesses 34 Raise profit level through sales growth and streamlining of operations. Aim to raise probability and speed of growth by rolling out successful strategies and measures. Services Machbaito Tenshoku Kaigi Tenshoku Navi (Excluding Tenshoku Kaigi BUSINESS
Slide 35: Launching New Business
Launching New Business 35 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 36: Optimizing Business Portfolio
Optimizing Business Portfolio 36 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 37: Becoming a Company That Enjoys the Continued Support of Society
Becoming a Company That Enjoys the 37 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 38: 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