Slide 1: Our Business Model and Strategy
Our Business Model and Strategy October 2021 Visional, Inc.
Slide 2: Introduction to Visional Group
Introduction to Visional Group 2
Slide 3: Group Mission & Values
Group Mission & Values Persistent Creation of New Possibilities. Our vision is to tap into the power of the internet to support the innovative progress of our world by persistently transforming social obstacles into new possibilities. Our mission is to achieve “continuous contribution to impact the
Slide 4: Growth Trajectory of Visional Group (1)
Growth Trajectory of Visional Group (1) In addition to a solid track record of sustained growth in HR Tech, Visional is committed to incubating new businesses, accelerating the digital transformation (DX) of various industry verticals (Cyber Security) (Logistics) Incubation (M&A) (3) Stanby (B to B
Slide 5: Our Framework for Starting New Businesses
Our Framework for Starting New Businesses We utilize clear guidelines and multiple criteria to analyze structural changes across industries and research global trends before finally deciding on a market and a business model for new businesses Potential for dynamic growth emerging from structural shi
Slide 6: Visional Group Consolidated Financial Results
Visional Group Consolidated Financial Results Net sales CAGR of 30.3%(2), while re-investing profits into newly incubated businesses. Although negative net sales growth for FY2021/7 1H due to COVID-19, strong recovery in 2H, resulting in 10.9% growth for the full year. Strong P/L management balancin
Slide 7: Investment Highlights
Investment Highlights 1. Creation of HCM(1) Ecosystem: Accelerating Japan’s Workstyle Reform 1-1: Pioneer of “Direct Recruiting” in the Japanese Recruitment Market 1-2: Further Development of HCM Ecosystem 2. Investments for Long Term Growth 3. Message to Investors Note: (1) HCM = Human Capital Mana
Slide 8: Creation of HCM Ecosystem: Accelerating Japan's Workstyle Reform
1 Creation of HCM Ecosystem: Accelerating Japan’s Workstyle Reform 8
Slide 9: Pioneer of "Direct Recruiting" in the Japanese Recruitment Market
1-1 Pioneer of “Direct Recruiting” in the Japanese Recruitment Market 9
Slide 10: BizReach: Disruption of the Professional Recruitment Market
BizReach: Disruption of the Professional Recruitment Market Similar to the structural transformation of the retail market caused by e-commerce, BizReach pioneered the concept of “Direct Recruiting” by creating an online career networking platform, which raised the transparency and efficiency of the
Slide 11: Unique "Multi-Revenue Stream" Business Model
Unique “Multi-Revenue Stream” Business Model The financially attractive and unique business model targeting for professional job seekers(1) is the foundation behind the scalability of BizReach Access database Post job listing Send direct message to job seeker Direct Employer (HR/Recruiter) Post resu
Slide 12: Solid Financial Foundation of BizReach
Solid Financial Foundation of BizReach Strong revenue growth while scaling profitability BizReach Business’ Revenue(1)(2) BizReach Business’ Adjusted Operating Profit ¥ MM before Corporate Expense Allocation and Margin(1)(2)(4) CAGR(3) +24.8% Adjusted operating profit margin before corporate expense
Slide 13: BizReach Sales Breakdown
BizReach Sales Breakdown Unique mix of recurring revenue (1) and performance revenue (2) as well as well-balanced customer breakdown of direct employers and headhunters have positioned BizReach to deliver solid and strong revenue growth FY21/7 BizReach Business Revenue Breakdown by FY21/7 BizReach B
Slide 14: Competitive Strategy
Competitive Strategy Unique value proposition in professional recruiting Employer brand recognition as an online career platform working with headhunters Brand 92% (2) recognition Effective mix of online & mass Recruitment Agency marketing investment by In- (1) 9% House Marketing team Aug 2015 Feb 2
Slide 15: Sustainable Growth Supported by Increase of Customers
Sustainable Growth Supported by Increase of Customers Strong customer base driven by hiring needs and increased job seekers. Maintaining quality of headhunters is key to our platform, and we will continue to monitor balance whilst expanding the platform # of Registered Direct Employers(1) # of Scout
Slide 16: Still Early Stage of Customer Adoption and Room for Growth
Still Early Stage of Customer Adoption and Room for Growth Customer base has expanded from Japan branch of global enterprises and startups to large Japanese enterprises, but still massive untapped wallet exists for company-wide introduction and new customers Illustration of Customer Base Expansion T
Slide 17: BizReach is still Under-penetrated and Significant Growth Opportunities
BizReach is still Under-penetrated and Significant Growth Opportunities While penetrating further into the professionals’ population, accelerate new client acquisitions and increase wallet share of existing clients to drive further top-line growth Growing # of “Scoutable” Job Seekers on Potential Ma
Slide 18: Further Opportunities Driven by Workstyle Reform
Further Opportunities Driven by Workstyle Reform Japanese recruitment market is undergoing a structural stage of expansion due to the ongoing changes in workstyle, which will increase liquidity in the Japanese labor market going forward Significant Room for Job Mobility in Japan Acceleration of Work
Slide 19: Further Development of HCM Ecosystem
1-2 Further Development of HCM Ecosystem 19
Slide 20: Our Vision of Creating an HCM Ecosystem
Our Vision of Creating an HCM Ecosystem Seamless integration of BizReach and HRMOS to create a unified, data-driven HCM Ecosystem where employee productivity is optimized, business operations are streamlined to guide our customers make smarter decisions Human Capital Management (HCM) Ecosystem Devel
Slide 21: HRMOS enables Strategic Talent Management
HRMOS enables Strategic Talent Management Data linkage between modules in the cloud-based HCM SaaS Solution enables optimization of different operational processes Data linkage Employee Engagement Workflows DB survey ATS Performance Reporting 1 on 1 Recruiting process is visualized and analyzed real
Slide 22: Main KPIs - HRMOS
Main KPIs - HRMOS ARR exceeded JPY 1.26Bn in 4Q FY2021/7 driven by solid growth of sticky customer base and ARPU expansion ARR(1)(2) ¥1.26Bn (YoY +22.9%) # of Unique Paying 941 (YoY +18.1%) JPY Bn 1.26 Customers(5)(6) 941 1.03 797 638 0.77 405 0.46 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
Slide 23: New Platforms Incubated to Support HCM Ecosystem
New Platforms Incubated to Support HCM Ecosystem Online recruiting platforms specializing in various areas, and new modules in talent management and workforce management incubated to further support the creation of our unified, data-driven HCM Ecosystem Human Capital Management (HCM) Ecosystem Young
Slide 24: Investments for Long Term Growth
2 Investments for Long Term Growth 24
Slide 25: Our Framework for Starting New Businesses
Our Framework for Starting New Businesses Building on the proven set of principles and approaches that enabled our prior successes, we will continue to evaluate all potential areas of growth that will emerge from seismic shifts and technological innovation in Japan Guidelines for deciding on a marke
Slide 26: Business under Incubation: "BizReach SUCCEED" and "Trabox"
Business under Incubation: “BizReach SUCCEED” and “Trabox” BizReach SUCCEED: Trabox: Similar to BizReach, developed an online M&A platform that Acquired one of the largest freight matching platforms (load board) in enables direct communication between parties. Increase liquidity in Japan. Plan to en
Slide 27: Message to Investors
>> VISIONAL 3 Message to Investors 27
Slide 28: Message to Investors
Message to Investors Persistent Creation of New Possibilities. We will tap into the power of the internet to support the digital transformation of the Japanese economy. We will continue to maximize mid-to-long term enterprise value by persistently transforming social obstacles into new possibilities
Slide 29: Others
>> VISIONAL Others 29
Slide 30: Corporate Overview
Corporate Overview Company Name Visional, Inc. Address 2-15-1, Shibuya, Shibuya-ku, Tokyo CEO Representative Director and CEO Soichiro Minami # of Employees 1,271 people (As of July end, 2021) Share Capital JPY 6,063MM (As of July end, 2021) Business Management support of group companies Overview Su
Slide 31: Introduction to our Management Team
Introduction to our Management Team Soichiro Minami - Representative Director and CEO Shin Takeuchi - Director and CTO Soichiro Minami is the founder of BizReach, Inc., where he served as Shin Takeuchi has served as Director and CTO of Visional Representative Director and President, and currently se
Slide 32: Introduction to our Management Team
Introduction to our Management Team Toru Shimada – Outside Director Naoko Harima – Outside Director (Audit & Toru Shimada has served as Outside Director of Visional since Supervisory Committee Member) February of 2020. Mr. Shimada started his career at Recruit Naoko Harima has served as Auditor of B
Slide 33: Visional Group Structure
Visional Group Structure Former Group Structure before creation of holding company Cloud Solutions, Inc. BINAR, Inc. Trabox, Inc. Stanby, Inc. 100%(1) 100% (1) 100% (1) 40%(1)(4) BizReach, Inc. Visional Incubation Current Group Structure (since 2/3/2020) HR Tech Segment Incubation Segment Cloud Solu
Slide 34: Visional Group at a Glance
Visional Group at a Glance We have accelerated business incubation in new industry verticals, supported by BizReach as profit engine Business Overview FY2021/7 Revenue Breakdown by Segment and Business(3) HR matching platform for professionals 5.2% HR matching platform for young professional Careert
Slide 35: Risks Related to Our Business (1)
Risks Related to Our Business (1) Below are some of the risks associated with our business model and strategy. Please refer to the risk section in our disclosure for details. Risks Related to Our business Probability of manifestation and Actions to Mitigate Risks Our results of operations could be a
Slide 36: Risks Related to Our Business (2)
Risks Related to Our Business (2) Probability of manifestation and Risks Related to Our business Actions to Mitigate Risks Security breaches or unauthorized access or use of our or our customers’ data could adversely affect our reputation and expose us to claims from customers and penalties from aut
Slide 37: Future investment policy, including use of Proceeds from IPO
Future investment policy, including use of Proceeds from IPO We will continue to conduct active advertising and investment in talent for BizReach that continues to be in the expansion phase, active investment in product development for HRMOS to complete the HCM ecosystem, and investment in other new
Slide 38: Appendix - Financials
>> VISIONAL Appendix - Financials 38
Slide 39: Key Financials: Profit and Loss Statement (1)
Key Financials: Profit and Loss Statement (1) ¥ MM FY18/7 FY19/7 FY20/7 FY21/7 Revenue 15,700 21,492 25,879 28,698 YoY Growth (%) - 36.9% 20.4% 10.9% HR Tech Segment 15,543 21,175 24,914 27,052 YoY Growth (%) - 36.2% 17.7% 8.6% Incubation Segment 156 316 892 1,485 YoY Growth (%) - 101.6% 182.1% 66.3
Slide 40: Reconciliation: Adjusted Operating Profit before Corporate Expense Allocation
Reconciliation: Adjusted Operating Profit before Corporate Expense Allocation Reconciliation of Adjusted Operating Profit before Adjusted Headcount Corporate Expense Allocation to Operating Income(1) by Function and Business (FY21/7)(6) ¥ MM Adjusted % of subtotal for HR FY18/7 FY19/7 FY20/7 FY21/7
Slide 41: Key Financials: Balance Sheet (1)
Key Financials: Balance Sheet (1) ¥ MM ¥ MM Liabilities and Assets FY18/7 FY19/7 FY20/7 FY21/7 FY18/7 FY19/7 FY20/7 FY21/7 Equity Current Assets 7,453 7,515 12,137 29,532 Current Liabilities 4,583 5,190 5,290 9,046 Cash and Cash 4,953 4,761 9,114 25,630 Accounts Payable 1,582 1,937 1,486 3,341 Equiv
Slide 42: Key Financials: Cash Flow Statement (1)
Key Financials: Cash Flow Statement (1) ¥ MM FY18/7 FY19/7 FY20/7 FY21/7 Cash Flows from Operating Activities Pre-tax Profit 590 393 7,023 2,290 Depreciation and Amortization of Goodwill 118 231 547 670 Gain on Transfer of Business - - (4,799) - Income Taxes Paid (0) (332) (2,966) (992) Others 1,134
Slide 43: Disclaimer
Disclaimer This document was prepared by Visional, Inc. (referred to as the “Company”, “Visional” or “we” herein) solely for informational purposes. This document does not constitute an offer to sell or a solicitation of an offer to buy any security of the Company in the United States, Japan or any