Slide 1: FY2019 2nd Quarter Financial Results
FY2019 2nd Quarter Financial Results Livesense Inc. (TSE1: 6054) August 14, 2019
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 Sales down due primarily to removing E-commerce business from scope of consolidation by selling shares in subsidiary. Income up owing primarily to decrease in operating expenses in conjunction with shift in policy of Tenshoku Kaigi. Net sales ¥1,629 million
Slide 5: Quarterly Financial Results Overview
Quarterly Financial Results Overview 5 (Millions of JPY) FY2018 FY2019 YoY 2Q 2Q Net Sales 1,775 1,629 ▲8.3% Operating Income ▲ 33 63 － Operating Margin(%) － 3.9% － Ordinary Income ▲ 16 97 － Profit attributable to ▲ 13 69 － owners of parent (Reference) Quarterly Financial Results Overview Excluding
Slide 6: Net Sales and Operating Income
Net Sales and Operating Income 6 Sales down 8.3% YoY due primarily to removal of subsidiary from scope of consolidation. (Flat YoY if impact of removing subsidiary from scope of consolidation excluded) Income up ¥97 million, owing primarily to decrease in operating expenses. HR Information Media Rea
Slide 7: Segment Net Sales and Operating Income - HR Information Media
Segment Net Sales and Operating Income 7 - HR Information Media Machbaito sales up 11.8% YoY, owing primarily to expansion of ad placements, maintaining advertising efficiency. Tenshoku Kaigi sales down due to partial suspension of new sales in conjunction with shift in business policy. Tenshoku Nav
Slide 8: Segment Net Sales and Operating Income - Real Estate Information Media
Segment Net Sales and Operating Income 8 -Real Estate Information Media DOOR CHINTAI continued to attract more customers as result of aggressively investing in web advertising. IESHIL improved accuracy of assessment engine to improve media value. (Millions of JPY) Net Sales Operating Income 312 262
Slide 9: Operating Income - YoY Comparison
Operating Income -YoY Comparison 9 Net sales and related costs down due primarily to removal of subsidiary from scope of consolidation and shift in business policy of Tenshoku Kaigi. (Millions of JPY) 2Q/19 Other costs Operating decrease income +156 63 2Q/18 Operating income -33 Net sales decrease -
Slide 10: Operating Expenses
Operating Expenses 10 Expenses decreased substantially with exclusion of subsidiary from scope of consolidation (-¥150 million) and decrease in Livesense Connect expenses (-¥55 million) in conjunction with shift in business policy of Tenshoku Kaigi. Personnel expenses (Millions of JPY) Advertising c
Slide 11: 2. Business Overview
2. Business Overview
Slide 12: Machbaito: Improvement of User Experience
Machbaito: 12 Improvement of User Experience Took 1st place overall among part-time job information sites in 2019 Oricon Customer Satisfaction® rankings. First in four out of five categories with monetary gifts (Mach Bonus) being rated highly. Improved user experience, one of the priority goals. Ran
Slide 13: Tenshoku Kaigi: Improved Media Value
Tenshoku Kaigi: 13 Improved Media Value Updated corporate database and improved completeness and accuracy of information. Work on enhancing various information necessary for changing careers, including not just qualitative information from reviews but also official information from companies and qua
Slide 14: IESHIL: Improved Accuracy of Price Assessment Engine
IESHIL: 14 Improved Accuracy of Price Assessment Engine Substantially improved price assessment engine for calculating condominium prices by room. New algorithm using machine learning improved accuracy of price assessments, a core competence of IESHIL. Illustration of Assessment Accuracy Distributio
Slide 15: Business Strategy for FY2019 and Progress
Business Strategy for FY2019 and Progress 15 • Ongoing promotions to increase name recognition. In addition to service ・Machbaito names, promoted Mach Bonus and other user value • Favorable number of iOS app installations. Continue to promote use • Shifted orientation from short-term business expans
Slide 16: 3. Policy for 2H
3. Policy for 2H
Slide 17: Policy for 2H of Year Ending December 31, 2019
Policy for 2H of Year Ending December 31, 2019 17 Policy: No changes Establish strength (competitive advantage) to create “the next common” as part of our corporate vision “Invent the next common.” Focus on media improvements to increase intrinsic value of services and building foundation for future
Slide 18: Policy for 2H: Machbaito
Policy for 2H: Machbaito 18 Continue promotions aimed at drawing attention to site name and monetary gifts (Mach Bonus) of high value to users. Create video ads using new mascots and start running them on YouTube, etc. Copyright © LIVESENSE Inc.
Slide 19: Policy for 2H: Improve Profitability by Expanding Inflow
Policy for 2H: Improve Profitability by 19 Expanding Inflow Strengthen user foundation by expanding inflow and work on improving profitability. • Sort and enhance content according to user needs Natural search • Optimize site structure • Implementation in aim of maximizing amount of profit Web ads •
Slide 20: Full-Year Financial Forecast for Year Ending December 31, 2019
Full-Year Financial Forecast for Year 20 Ending December 31, 2019 Sales will increase and income will decrease in real terms excluding impact of removing E-commerce business from scope of consolidation. Machbaito is expected to grow, and operating expenses are expected to decrease, but operating inc
Slide 21: LIVESENSE
6 LIVESENSE BIOEKAE, KALKS.
Slide 22: Appendix
3. Appendix
Slide 23: Appendix: Corporate Profile
23 3. Appendix Corporate Profile Copyright © LIVESENSE Inc.
Slide 24: Corporate Profile
Corporate Profile 24 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 25: The Origin of Company Name / Business Philosophy
The Origin of Company Name 25 / Business Philosophy The Origin of Company Name LIVE + SENSE Business Philosophy Happiness Begetting Happiness Copyright © LIVESENSE Inc.
Slide 26: Corporate vision: Invent the next common.
Corporate vision : Livesense’s Origin 26 Corporate vision Invent the next common. Story behind logo “Ideas” By questioning existing ordinary thinking, new ideas are born. × “Constant Effort” As the Japanese proverb “falling rain drops carve out the rock” goes, falling drops express Livesense’s const
Slide 27: Segments and Core Media
Segments and Core Media 27 Machbaito: Success fee-based part-time job posting site Human Resources Tenshoku Kaigi: Career change service with reviews Tenshoku Navi: Success fee-based full-time job posting site Syukatsu Kaigi: New graduate employment support service Tenshoku Draft: Competitive biddin
Slide 28: Employees
Employees 28 No. of Employees (Consolidated) Breakdown of Full-time Employees (People) Regular/HQ Customer Administ Regular/R Support ration Part-time 3% 15% Regular/Subsidiaries Part-time/Subsidiaries Engineers/ Designers 489 482 487 38% 478 29 29 44 45 416 415 413 408 17 16 7 7 126 120 Sales 118 1
Slide 29: Appendix: Our Strategy
29 3. Appendix Our Strategy Copyright © LIVESENSE Inc.
Slide 30: Changes in Market for Human Resources Information Services
Changes in Market for Human Resources 30 Information Services Volume of information has increased dramatically, and new players continue to enter market, including search engines. Value of Human Resources service shifting from transmission of information to provision of optimal matching and added va
Slide 31: Our Strategy: Real Data Engineering
Our Strategy : Real Data Engineering 31 Data associated with provision of intrinsic service value and not available online is called “real data.” Services designed based on value and “real data.” Online data Real data Search volume Click rate Application rate Acceptance rate Rate of joining company
Slide 32: Our Strategy: Real Data Engineering
Our Strategy : Real Data Engineering 32 Promote conversion from data to value using proprietary analytics platform “LIVESENSE Analytics” and machine learning platform “LIVESENSE Brain”. Services Data Online data Real data Promote User / Collection/analysis platform value Client “ LIVESENSE Analytics
Slide 33: Examples of Service Improvements with Utilization of Data
Examples of Service Improvements with 33 Utilization of Data Changed logic of display order on site using prediction model for application rate, hiring rate, etc. Job openings closer to the user’s preferences with a greater chance of success are displayed first, resulting in improved user experience
Slide 34: Disclaimer
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