Slide 1: FY2017 2nd Quarter Financial Results
FY2017 2nd Quarter Financial Results August 14, 2017 L i v e s e ns e I n c . (TSE1: 6054) Copyright© Livesense Inc. 1
Slide 2: Agenda
Agenda Financial Results Business Overview & FY2017 Initiatives Appendix Copyright© Livesense Inc. 2
Slide 3: 1. Financial Results
1. Financial Results Copyright© Livesense Inc. 3
Slide 4: Executive Summary for the 2nd Quarter
Executive Summary for the 2nd Quarter Net sales increased in all segments. Up 24.4% YoY. Operating income increased YoY and exceeded forecasts. Net Sales ¥1,714 million ( YoY +¥336 million +24.4%) Operating ¥161 million ( YoY +¥19 million +13.6%) income Quarterly sales increased in all media. In HR
Slide 5: Quarterly Financial Results Overview
Quarterly Financial Results Overview (Millions of JPY) FY2016 FY2017 YoY 2Q 2Q Net Sales 1,377 1,714 +24.4% Operating Income 142 161 +13.6% Operating Margin(%) 10.3% 9.4% ▲0.9pt Ordinary Income 147 216 +46.9% Net income ▲ 226 146 ー Copyright© Livesense Inc. 5
Slide 6: Net Sales and Operating Income
Net Sales and Operating Income Sales up in all segments, 24.4% YoY. Operating profit increased 13.6% YoY with efficient growth in multiple media and careful review of investments. (Millions of JPY) HR Information Media 1,714 Real Estate Information Media E Commerce Other Businesses 148 Operating Inc
Slide 7: Segment Net Sales and Operating Income - HR Information Media
Segment Net Sales and Operating Income -HR Information Media Progress was made on monetization of Tenshoku Kaigi and Syukatsu Kaigi. Segment sales up 15.1% YoY. In Jobsense, progress was made on acquiring job posts and improving the accuracy of matching, and sales were up 4.6% YoY. (Millions of JPY)
Slide 8: Segment Net Sales and Operating Income - Real Estate Information Media
Segment Net Sales and Operating Income -Real Estate Information Media Sales increased and continued profitability since previous quarter with increase in DOOR Chintai property listings and progress on IESHIL monetization. (Millions of JPY) Net Sales Operating Income 121 109 89 49 56 40 30 6 5 ▲ 21 ▲
Slide 9: Segment Net Sales and Operating Income - E Commerce
Segment Net Sales and Operating Income -E Commerce Web marketing knowledge sharing with waja progressed, resulting in increased sales and continued profitability. (Millions of JPY) Net Sales Operating Income 148 135 119 107 110 101 3 5 ▲ 10 ▲4 ▲ 19 ▲ 23 1Q 2Q 3Q 4Q 1Q 2Q FY2016 FY2017 Copyright© Liv
Slide 10: Operating Income - YoY Comparison
Operating Income -YoY Comparison Increase in net sales absorbed increased costs from ad spend and personnel increase; profits up 13.6% YoY. (Millions of JPY) Personnel Cost Increase -109 Sales Ad Cost Increase Increase +336 -121 Other Costs Increase -86 2Q/16 2Q/17 Operating Operating Income Income
Slide 11: Operating Expenses
Operating Expenses Personnel costs up 21.8% YoY due to increase in new graduates and other full-time employees in Miyazaki. Advertising costs up 38.1% YoY due to reinforced web advertising, branding investments, etc. (Millions of JPY) Personnel expenses Advertising costs 1,552 Depreciation and amort
Slide 12: 2. Business Overview & FY2017 Initiatives
2. Business Overview & FY2017 Initiatives Copyright© Livesense Inc. 12
Slide 13: Segments and Core Media
Segments and Core Media Success fee-based part-time job posting site Human Resources Success fee-based full-time job posting site Employer review Site New graduate employment support service Success fee-based real estate posting site Estate Real Real estate information service Overseas fashion EC si
Slide 14: Business Strategy for FY2017 and Progress - Human Resources
Business Strategy for FY2017 and Progress • Steady progress in increasing job posts and improving accuracy of matching ・Jobsense • Work on improving user experience, enhancing recognition and expanding number of users • For lateral hires (full-time employees), Tenshoku Navi and Tenshoku Kaigi’s orga
Slide 15: Business Strategy for FY2017 and Progress - Real Estate, EC, Other
Business Strategy for FY2017 and Progress • Accelerated the site improvement cycle, improved KPIs and accumulated Information Real Estate know-how ・DOOR Chintai • Results trending positively with increase in property listings ・IESHIL • Provided information based on user needs and increased matching
Slide 16: Topics: Increase in Job Postings (Jobsense)
Topics: Increase in Job Postings (Jobsense) Progress continues to be made on acquiring postings. At the same time, the site algorithms are being changed based on user behavior, applications, hirings and other data to improve matching accuracy. Part-time Job Postings 100,000 50,000 0 1Q 2Q 3Q 4Q 1Q 2
Slide 17: Topics: Site Name Change & Re-Branding (Tenshoku Navi)
Topics: Site Name Change & Re-Branding (Tenshoku Navi) The name of Jobsense Link was changed to Tenshoku Navi to clearly express the user value provided by the site. Re-branding was promoted in line with the site update. Screenshots Copyright© Livesense Inc. 17
Slide 18: Topics: Progress on New Monetization (Tenshoku Kaigi)
Topics: Progress on New Monetization (Tenshoku Kaigi) Monetization progressed, including Tenshoku Kaigi BUSINESS, our direct recruiting service for enterprises. Work to further expand our business by full-scale roll-out of career services. Tenshoku Kaigi BUSINESS Sales 2Q/16 3Q/16 4Q/16 1Q/17 2Q/17
Slide 19: Topics: Increased Use by New Graduate Job Seekers (Syukatsu Kaigi)
Topics: Increased Use by New Graduate Job Seekers (Syukatsu Kaigi） Registered users increasing steadily. Registration by graduates in 2018 has come to an end. Registration by graduates in 2019 is taking place at more than 2x previous year’s pace. New Registered Users Site Screenshot 150,000 100,000
Slide 20: Topics: Organizational Strengthening
Topics: Organizational Strengthening The number of employees has increased, Restructured our organization for mid-career hires. especially local full-time employees and new Advance from a stage where the aim was for graduates. independent business growth to a stage where we Promote improved quality
Slide 21: Policy for 2H of Year Ending December 31, 2017
Policy for 2H of Year Ending December 31, 2017 No change to company-wide policy set forth at beginning of year Policy: Establish strength (competitive advantage) to create “the next common” as part of our corporate vision “Invent the next common” Measure: Invest in advertising, technology and human
Slide 22: Full-Year Financial Forecast for Year Ending December 31, 17
Full-Year Financial Forecast for Year Ending December 31, 2017 Net sales to grow 19.3% YoY. While maintaining business profitability, aim to establish a competitive advantage from a medium-term perspective through the proactive investments mentioned earlier. For the time being, the priority will be
Slide 23: Invent the next common
Invent the next common Copyright© Livesense Inc. 23
Slide 24: 3. Appendix
3. Appendix Copyright© Livesense Inc. 24
Slide 25: Employees
Employees No. of Employees (Consolidated) Breakdown of Full-time Employees Regular/HQ (People) Regular/R Customer Part-time waja/Regular 495 Support waja/Part-time 25 2% Administration 444 436 438 437 30 411 15 12% 393 15 16 21 13 31 30 28 372 28 13 30 Engineers/ 341 13 31 132 10 28 Designers 29 162
Slide 26: Record of Recent Major Publicity Events
Record of Recent Major Publicity Events Jul. 10, 2017 One of our male employees taking childcare leave covered by Nihon Keizai Shimbun May 22, 2017 Jobsense part-time employment service covered by Nihon Keizai Shimbun Tenshoku Draft competitive bidding-type career service and Tenshoku Kaigi employer
Slide 27: Corporate Profile
Corporate Profile Company Name Livesense Inc. CEO/Founder Taichi Murakami Business Happiness Begetting Happiness. Philosophy Corporate Vision Invent the next common. Established February 8, 2006 TSE 1st Section : October 1, 2012 Date listed TSE Mothers : December 7, 2011 Number of Employees Full-Tim
Slide 28: Invent the next common
Invent the next common 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. T