Advance Create Co., Ltd. · TSE:8798
Advance Create — FY2023 Earnings Presentation
49 slides from Advance Create's earnings presentation, Nov 10, 2023
Slide 1: FY09/23 Results Briefing Materials
Advance Create Co., Ltd. FY09/23 Results Briefing Materials (October 2022 to September 2023) November 10, 2023 Securities code：8798 1
Slide 2: Contents
Contents Ⅰ. FY09/23 Financial Results Overview 03 ■ Results Highlights 04 ■ Financial Statements 05 ■ Segment Information 08 ■ Irregular Factors in FY09/23 10 ■ Full-Year Forecast 13 Ⅱ. Initiatives for FY09/24 14 Ⅲ. Advance Create Overview 24 Ⅳ. Company Strategy 33 ■ Sustainability Management 42 Ⅴ.
Slide 3: Ⅰ. FY09/23 Financial Results Overview
Ⅰ. FY09/23 Financial Results Overview 3
Slide 4: Results Highlights
FY09/23 Financial Results Overview Results Highlights ― Consolidated Results― Transient factors such as changes in the external environment had a significant impact on the performance of FY09/23. Additionally, increased investment costs in human resources, IT, and web marketing led to a decrease in
Slide 5: Income Statements (consolidated)
FY09/23 Financial Results Overview Income Statements (consolidated) Compositions Compositions YoY change (Millions of yen) FY09/22 FY09/23 (%) (%) (% ) Net Sales 11,860 100.0 10,163 100.0 (14.3) Insurance Agency business (Life) 9,155 77.2 6,918 68.1 (24.4) Insurance Agency business (Non-Life) 393 3.
Slide 6: Balance Sheet (consolidated)
FY09/23 Financial Results Overview Balance Sheet (consolidated) Assets (Millions of yen) End-FY09/22 End-FY09/23 Change Current assets 7,856 5,035 (2,821) Cash and deposits 2,273 1,238 (1,035) Total assets decreased by ¥1,978 million from Accounts receivable - trade 2,231 1,723 (507) end-FY09/22 to
Slide 7: Statement of Cash Flows (consolidated)
FY09/23 Financial Results Overview Statement of Cash Flows(consolidated) (Milions of Yen) FY09/22 FY09/23 Change Cash flows from operating activities 364 (206) (571) Profit/loss before income taxes 1,974 (2,242) (4,217) Depreciation 450 577 127 Increase (decrease) in trade receivables (824) 507 1,33
Slide 8: Net Sales by Segment
FY09/23 Financial Results Overview Net Sales by Segment （Millions of yen） 16,000 FY09/22 FY09/23 YoY Reinsurance 1,030 1,110 7.8% 14,000 Media 1,795 2,202 22.6% Media Rep. 1,177 1,283 9.0% 1,030 ASP 206 258 25.3% 1,177 Insurance(Non-Life) 393 742 88.8% 12,000 1,110 851 942 Insurance(Life) 9,155 6,91
Slide 9: Ordinary Profits by Segment
FY09/23 Financial Results Overview Ordinary Profits by Segment （Millions of yen） 2,500 FY09/22 FY09/23 YoY 2,000 129 46 Reinsurance 46 (121) - 221 418 Media 418 466 11.4% 165 1,500 50 141 Media Rep. 141 77 (45.2%) 57 110 131 ASP 57 94 65.1% 211 Insurance 1,395 (2,540) - 1,000 160 261 82 12 Total 2,0
Slide 10: Factors of Sales Declined in FY09/23
FY09/23 Financial Results Overview Factors of Sales Declined in FY 09/23 （Millions of yen） Sales 12,000 The amount 11,000 11,860 equivalent to the decrease 11,019 in PV. 10,163 10,000 FY09/21 FY09/22 FY09/23 ▶Beginning with FY09/19, the Company has applied new accounting standards to calculate the p
Slide 11: Factors of Ordinary Profits Declined in FY09/23
FY09/23 Financial Results Overview Factors of Ordinary Profits Declined in FY 09/23 Changes in Ordinary Profits （Millions of Yen） Decrease in PV 2,500 1,925 2,015 Increase in test marketing Expansion of the call 0 Increase in center costs for Reinsurance staff digital marketing initiatives. (2,190)
Slide 12: Actual Performance excluding Special Factors
FY09/23 Financial Results Overview Actual Performance excluding Special Factors Actual Performance (Millions of Yen) Performance Special Factors FY 09/23 FY 09/23 Net Sales 10,163 11,863 ・Decrease in PV 1,700 Cost of s a l e s 3,964 2,704 ・Increase in test marketing cost (1,260) ・Increased cost in t
Slide 13: Forecast for FY09/24
Forecast for FY09/24 Forecast for FY09/24 （Millions of Yen） FY09/24 YoY Consolidated FY09/20 FY09/21 FY09/22 FY09/23 forecast Change Net Sales 10,510 11,019 11,860 10,163 12,000 18.0 % Operating profit/loss 1,184 2,041 2,061 (2,020) 1,700 -% Ordinary profit/loss 1,095 1,925 2,015 (2,190) 1,500 -% Pr
Slide 14: Ⅱ. Initiatives for FY09/24
Ⅱ. Initiatives for FY09/24 14
Slide 15: Highlights by business
Initiatives for FY09/24 Highlights by business Life insurance Non-life Reinsurance insurance • We have centralized employees Accumulated recurring revenue since Payment of special treatment (deemed our founding has expanded. It with expertise in insurance as continues to support our performance to b
Slide 16: Initiatives in FY09/24
Initiatives for FY09/24 Initiatives in FY 09/24 Outlook for ordinary profit （Millions of Yen） Reflecting Improvement downside risk 2,500 of cost Streamlining marketing structure Reduction of costs uncertainty in PV Reinsurance Improvement in （resolution of the 1,500 sales impact of COVID- 0 producti
Slide 17: Improvement in the quality and productivity of appointments
Initiatives for FY09/24 Improvement in the quality and productivity of appointments 〇We have acquired appointments from customers eager to purchase insurance through digital appointments. 〇We increased the number of operators with experience and knowledge in insurance and utilized AI avatar customer
Slide 18: Training of young employees
Initiatives for FY09/24 Training of young employees 〇We actively assign young employees to the sales field. In addition to traditional training, we utilize “AI Avatar Customer Support Training Service (β)”, introduced in June 2023, to cultivate young sales employees. They become an immediate fightin
Slide 19: Training of young employees and ASP
Initiatives for FY09/24 Training of young employees and ASP 〇 We have established a solicitation management system that leverages technology, preparing an environment where even younger employees can be active. In the Smart Consulting Plaza specialized in online insurance consultations, new graduate
Slide 20: Continuous Experimentation of Marketing Methods
Initiatives for FY09/24 Continuous Experimentation of Marketing Methods 〇 We repeated hypothesis testing and trial and error, and establishing our unique marketing methods. 〇The tools for “connecting” with customers have shifted from phone calls to text, and we have refocused on LINE, establishing a
Slide 21: LINE Promotion Strategy
Initiatives for FY09/24 LINE Promotion Strategy 〇With the attracting customers from WEB promotion, the number of LINE friends has increased. 〇We have established a system to sell our promotion initiatives and marketing know-how as a business scheme that can be utilized by other companies. Many insur
Slide 22: Strengthening Non-Life Insurance Business
Initiatives for FY09/24 Strengthening Non-Life Insurance Business 〇The non-life insurance contracts are renewed in the following fiscal years or after, contributing to the expansion of recurring revenue. 〇Focusing on a need to review life insurance that a certain number of non-life insurance policyh
Slide 23: Avatar Strategy
Initiatives for FY09/24 Avatar Strategy 〇The avatar system jointly launched with AVITA has been highly praised by insurance companies and has already been introduced in six companies. 〇Since June 2023, we have introduced the AI Avatar Customer Support Training Service (β) and commenced employee trai
Slide 24: Ⅲ. Advance Create Overview
Ⅲ. Advance Create Overview Achieve Progress through Enhancing People and Technology 24
Slide 25: About Advance Create
Advance Create Overview About Advance Create Advance Create is an insurtech company that is constantly innovating to change the way people think about the insurance business. Ｉｎｓｕｒａｎｃｅ Ａｇｅｎｃｙ Reinsurance Business Business Ａｐｐｌｉｃａｔｉｏｎ Ｓｅｒｖｉｃｅ Ｍｅｄｉａ Business Ｐｒｏｖｉｄｅｒ (ASP) Business Ｂｕｓｉｎｅｓｓ Ｐｒｏｃｅｓｓ Ｍｅ
Slide 26: Advance Create's Digital Transformation (DX)
Advance Create Overview Advance Create’s Digital Transformation (DX) 〇 Spontaneous insurtech born out of customer service 〇 Obtained a patent for the system we developed and promoted the protection and use of intellectual property Discovery of potential customers Insurance consultation Continued rel
Slide 27: Long-Term Performance
Advance Create Overview Long-Term Performance Listed on the First Section of the Moved to the TSE Prime Net sales Tokyo Stock Exchange Market and launched avatar (left axis; millions of yen) services 14,000 2,500 Ordinary profit Launched Began online (right axis; millions of yen) ASP business consul
Slide 28: Our History of Progress through Technology
Advance Create Overview Our History of Progress through Technology Began accepting requests for Launched smartphone-optimized Developed Hoken Ichiba 1998 information via website 2009 website 2013 smartphone app 1999 Launched Hoken Ichiba website 2012 Complete revamping of 2018 Developed “folder,” an
Slide 29: Our Strengths
Advance Create Overview Our Strengths Development of insurance software in-house ●Despite being a specialized insurance agent, we have more than 100 IT personnel and develop software in-house. ●The system development team works directly with the management team and sales force, enabling agile develo
Slide 30: In-House Software Development and Agile Development
Advance Create Overview In-House Software Development and Agile Development 〇We develop software in-house with more than 100 IT personnel including engineers and designers. 〇We employ agile development through direct connections between management, sales staff, and engineers. Marketing Category Mark
Slide 31: Investment in Human Capital
Advance Create Overview Investment in Human Capital 〇We have established various systems aimed at enhancing human capital, such as Self-investment allowance (only available for non-management staff), self-development program(compensation for self-learning),correspondence education program(developing
Slide 32: Investment in Human Capital
Advance Create Overview Investment in Human Capital 〇 We are improving productivity by implementing IT and promoting digital transformation (DX). We aim to add value for our customers through a business model that is information-intensive, rather than labor-intensive. 〇 We have increased the average
Slide 33: Ⅳ. Company Strategy
(A ravance creas IV. Company Strategy 33
Slide 34: New-Era OMO 2.0: Avatar Consultants
Company Strategy: OMO 2.0 New-Era OMO 2.0: Avatar Consultants 〇 We have partnered with AVITA, Inc., a startup founded by Professor Hiroshi Ishiguro of Osaka University, to use avatars to respond to insurance inquiries. Professor Ishiguro has been studying and developing "avatars that interact with p
Slide 35: Booking of a Consultant of Choice x Avatar
Company Strategy: OMO 2.0 Booking of a Consultant of Choice x Avatar 〇 Many customers may feel uneasy at their first insurance consultations because they don’t know what to expect from their consultant. With our online insurance consultation, customers can set up an appointment with a consultant of
Slide 36: Pursuing High-Quality Services at Our Physical Locations
Company Strategy: OMO 2.0 Pursuing High-Quality Services at Our Physical Locations 〇 We operate Hoken Ichiba consulting plazas at urban landmarks. Additionally, we renovated the Consulting Plaza with expansions such as kids' spaces and private rooms so that our customers can have the “impressive exp
Slide 37: ANP and PV by Sales Channel
Advance Create Overview ANP and PV by Sales Channel （Millions of Yen） FY09/22 FY09/23 YoY 10,000 Collaborative 1,701 1,807 6.2% Non-face-to-face 3,065 3,859 25.9% 9,000 Face-to-face 3,914 3,671 (6.2%) 1,807 Total 8,679 9,339 7.6% 8,000 1,546 1,701 1,780 1,577 7,000 YoY 6,000 2,640 2,518 3,859 3,065
Slide 38: Portfolio Strategy: Revenue Portfolio
Advance Create Overview Portfolio Strategy: Revenue Portfolio Advance Create Reinsurance Inc. Reinsurance Business ▶ Assumes part of the risk of the insurance sold by the insurer and earns reinsurance premiums [Insurers under reinsurance agreements] As of end-June 2023: Total 11 ▶ Strengthens relati
Slide 39: Advance Create Cloud Platform: No. of IDs
Advance Create Overview Advance Create Cloud Platform: No. of IDs （#） GOYOKIKI DECHI Dynamic OMO 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 3/19 6/19 9/19 12/19 3/20 6/20 9/20 12/20 3/21 6/21 9/21 12/21 3/22 6/22 9/22 12/22 3/23 6/23 9/23 39
Slide 40: Annual Dividend per Share
Advance Create Overview Annual Dividend per Share （JPY） Annual Dividend (left) Payout ratio(right) 40.0 100.0% 35.0 80.0% 30.0 25.0 60.0% 20.0 50% 15.0 40.0% 10.0 20.0% 5.0 0.0 0.0% 9/02 9/03 9/04 9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 9/16 9/17 9/18 9/19 9/20 9/21 9/22 9/23 *Adjuste
Slide 41: Key Performance Indicators
Advance Create Overview Key Performance Indicators Forecast for Target FY09/23 FY09/24 ROE 20％ or more (30.0) ％ 17.6％ 20％ or more (21.5) ％ 12.5％ 50％ or more - 87.7％ 80％ or more (44.1) ％ 44.7％ 41
Slide 42: Sustainability Management
Sustainability Management 42
Slide 43: Sustainability Management
Sustainability Management Sustainability Management 〇We will continue our existing CSR initiatives, such as supporting Osaka Marathon and New Japan Philharmonic, in order to fulfill our social responsibilities and enhance information disclosure based on social needs. ©Osaka Marathon 2023 43
Slide 44: Building and Strengthening the Management Structure
Sustainability Management Building and Strengthening the Management Structure 〇Continuously building and strengthening the management structure Apr Listed on the Prime Apr Market of the Tokyo Stock Exchange HR Capital Financial Promoted remote work Oct Strategy Set goals and developed regulations to
Slide 45: Ⅴ. Supplementary Materials
Ⅴ. Supplementary Materials 45
Slide 46: Company Overview
Company Overview Trade name Advance Create Co., Ltd. Representative Yoshiharu Hamada, President Nomura Fudosan Midosuji Building, 3-5-7 Kawaramachi, Chuo- Location ku, Osaka, Osaka Prefecture Established October 1995 Capital ¥3,158 million (as of September 30, 2023) Insurance Agency, Media, Media Re
Slide 47: Analyst Reports
Supplementary Materials Analyst Reports o Please refer to the research reports by these external organizations for details on the Company’s history, earnings structure, and other information since its establishment. o These research reports will be updated as necessary based on the announcement of f
Slide 48: Disclaimer
Supplementary Materials Disclaimer The forward-looking statements included in this document and any related materials are based on currently available information, and may change due to macroeconomic conditions and trends in the industry in which the Company operates. Accordingly, please note that a
Slide 49: Inquiries
Inquiries General Planning Division TEL: +81-6-6204-1193 Email: acir@advancecreate.co.jp URL: https://www.advancecreate.co.jp/