Livesense Inc. · TSE:6054
Livesense — Q1 FY2020 Earnings Presentation
42 slides from Livesense's earnings presentation, May 15, 2020
Slide 1: FY2020 1st Quarter Financial Results
FY2020 1st Quarter Financial Results Livesense Inc. (TSE1: 6054) May 15, 2020
Slide 2: Agenda
1 Financial Results 2 Progress Agenda 3 Response to Novel Coronavirus 4 Appendix Copyright © LIVESENSE Inc.
Slide 3: Changes to Disclosure Segments
Changes to Disclosure Segments 3 Segment classification and nomenclature has changed as of fiscal year under review. Before change (FY2019) After change (FY2020) HR Information Media business Internet Media business Machbaito Tenshoku Kaigi *2 Tenshoku Navi Syukatsu Kaigi Real Estate Information Med
Slide 4: 1. Financial Results
1. Financial Results
Slide 5: Executive Summary for the 1st Quarter
Executive Summary for the 1st 5 Quarter Consolidated sales and income down due primarily to impact of DOOR Chintai business transfer. Impact of novel coronavirus on this quarter was limited. Net sales ¥1,350 million ( YoY -¥180 million -11.8% ) Operating income -¥127 million ( YoY -¥185 million
Slide 6: Quarterly Financial Results Overview
Quarterly Financial Results Overview 6 (Millions of JPY) FY2019 FY2020 YoY 1Q 1Q Net Sales 1,531 1,350 ▲11.8% Operating Income 58 ▲ 127 － Operating Margin(%) 3.8% － － Ordinary Income 86 ▲ 132 － Profit attributable to 56 ▲ 229 － owners of parent (Reference) Quarterly Financial Results Overview Exclud
Slide 7: Net Sales and Operating Income
Net Sales and Operating Income 7 Consolidated net sales down 11.8% YoY, consolidated operating income down ¥185 million YoY due mainly to transfer of DOOR Chintai business and Tenshoku Navi’s lower number of hires. Excluding impact of transfer of DOOR Chintai business, consolidated net sales up 6.0%
Slide 8: Operating Income - YoY Comparison
Operating Income -YoY Comparison 8 Income down due primarily to impact of DOOR Chintai business transfer. (Millions of JPY) 1Q/19 DOOR Operating Chintai income Decrease 58 -121 1Q/20 Operating income -127 Existing businesses Decrease -33 Other, net Decrease -31 Copyright © LIVESENSE Inc.
Slide 9: Operating Expenses
Operating Expenses 9 Total expenses almost unchanged. Personnel expenses Advertising costs (Millions of JPY) Others 1,637 1,566 1,519 1,472 1,478 426 410 402 384 412 610 656 535 564 523 552 545 553 552 543 1Q 2Q 3Q 4Q 1Q FY2019 FY2020 Copyright © LIVESENSE Inc.
Slide 10: 2. Progress
2. Progress
Slide 11: 2. Progress: Company-wide Policy
11 2. Progress Company-wide Policy Copyright © LIVESENSE Inc.
Slide 12: Progress on Company-wide Policy
Progress on Company-wide Policy 12 FY2020 Company-wide Policy Accelerate optimization of business portfolio to pursue our corporate vision “Invent the next common.” Business Strategy 1st Quarter Progress ・Machbaito continuing to do well owing to strengthened sales and Enhance profitability of market
Slide 13: Business portfolio concept
(Reference) 13 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&As as opportunities deve
Slide 14: Progress on Optimization of Business Portfolio
Progress on Optimization of Business Portfolio 14 Basic agreement reached for transfer of Syukatsu Kaigi on March 17, 2020 and progress made on optimization of portfolio. Will continue to pursue M&As in profit-earning domain as opportunities arise. Distant Machbaito Profit-earning New business Tensh
Slide 15: Syukatsu Kaigi Transfer
Optimization of Business Portfolio 15 Syukatsu Kaigi Transfer Transfer to Port Inc., which operates “Career Park!” and other services. Transfer price of ¥1.5 billion. Date of transfer, accounting treatment, and other details to be disclosed when determined. Restructuring our business portfolio throu
Slide 16: 2. Progress: Existing Businesses
16 2. Progress Existing Businesses Copyright © LIVESENSE Inc.
Slide 17: Net Sales and Operating Income of Existing Businesses
Net Sales and Operating Income of Existing 17 Businesses Net sales up 6.0% YoY. Operating income down 14.4% YoY due primarily to decrease in Tenshoku Navi sales. (Millions of JPY) Net Sales Operating Income 1,473 1,356 1,355 1,350 1,274 314 267 231 198 153 1Q 2Q 3Q 4Q 1Q FY2019 FY2020 *Net sales and
Slide 18: Machbaito
Major Media Topics 18 Machbaito Machbaito sales up 51.8% YoY in 1st quarter. Recorded highest ever quarterly sales owing to strengthened sales and marketing. Trend in Machbaito sales (Millions of JPY) FY2018 +51.8% FY2019 FY2020 ＋28.9％ ＋34.8％ ＋11.8％ ＋2.2％ 761 724 724 691 618 562 537 501 490 1Q 2Q 3Q
Slide 19: Machbaito
Major Media Topics 19 Machbaito iOS and Android apps released in February 2019 and February 2020, respectively. MAU also increasing steadily. Machbaito App Trend in MAU 1Q 2Q 3Q 4Q 1Q FY2019 FY2020 *MAU in final month of each quarter Copyright © LIVESENSE Inc.
Slide 20: Tenshoku Navi
Major Media Topics 20 Tenshoku Navi Media improvements started in previous year succeeded in raising member registration rate above previous year’s level. Trend in Member Registration Rate Tenshoku Navi 1Q 2Q 3Q 4Q 1Q FY2019 FY2020 Copyright © LIVESENSE Inc.
Slide 21: 2. Progress: New Businesses
21 2. Progress New Businesses Copyright © LIVESENSE Inc.
Slide 22: Status of New Business Initiatives
Status of New Business Initiatives 22 Aiming for business model not dependent on customer attraction via search traffic. Progress made on strengthening organizational system. Will continue promoting reinforcement of personnel and test marketing. No changes to investment plan despite “Corona Shock.”
Slide 23: 2. Progress: Organization
23 2. Progress Organization Copyright © LIVESENSE Inc.
Slide 24: Becoming a Company That Enjoys the Continued Support of Society
Becoming a Company That Enjoys the 24 Continued 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 25: Initiatives for Employees
Becoming a Company That Enjoys the Continued Support of Society 25 Initiatives for Employees Implement education and training to “eliminate discrimination and harassment and realize fairness.” Work on transparency of processes and results in aim of “providing fair and unbiased evaluations.” Expand s
Slide 26: Initiatives for Society
Becoming a Company That Enjoys the Continued Support of Society 26 Initiatives for Society Launch of partnership with volunteer recruitment site activo. Create opportunities for employees to actively participate in social activities. volunteer recruitment site activo Copyright © LIVESENSE Inc.
Slide 27: 3. Response to Novel Coronavirus
3. Response to Novel Coronavirus
Slide 28: Actions Taken for Employees
Response to Novel Coronavirus: 28 Actions Taken for Employees Implemented measures including transition to work from home in mid-February to ensure employee safety and prevent spread as a member of society. Will also look into new work styles in anticipation of long-term environmental changes while
Slide 29: Actions Taken for Employees (Example)
Response to Novel Coronavirus 29 Actions Taken for Employees (Example) Online training for new employees Free support for online counseling by cotree All events and training programs for new Free support provided to those requesting employees, including welcoming ceremony it for online counseling. P
Slide 30: Actions Taken in Terms of Service
Response to Novel Coronavirus 30 Actions Taken in Terms of Service Added related functions and information in each service in light of changes in environment and needs in response to spread of novel coronavirus. Tenshoku Draft Machbaito Release of interview method setting function Launch of informat
Slide 31: Impact on Performance
Response to Novel Coronavirus 31 Impact on Performance Impact on 1Q results was limited, but impact from reduction of corporate hiring activities expected in 2Q and beyond. Forecast to be disclosed when impact is determined. Financial impact is tolerable at current point in time. No change in policy
Slide 32: 4. Appendix
4. Appendix
Slide 33: 4. Appendix: Corporate Profile
33 4. Appendix Corporate Profile Copyright © LIVESENSE Inc.
Slide 34: Corporate Profile
Corporate Profile 34 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 35: Employees
Employees 35 No. of Employees (Consolidated) Breakdown of Full-time Employees Regular/HQ Regular/R (People) Customer Part-time Administr Regular/Subsidiaries Support ation Part-time/Subsidiaries 3% 13% 487 Engineers/ 45 416 415 Designers 408 408 17 16 7 7 400 388 381 40% 7 6 6 Sales 115 110 111 118
Slide 36: 4. Appendix: Our Strategy for FY2020
36 4. Appendix Our Strategy for FY2020 Copyright © LIVESENSE Inc.
Slide 37: Company-wide Policy for FY2020
Company-wide Policy for FY2020 37 Policy: 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 year, continued growth of M
Slide 38: Enhancing Profitability of Existing Businesses
Enhancing Profitability of Existing Businesses 38 Raise profit level through sales growth and streamlining of operations. Aim to expand sales and profit in three major services, particularly Machbaito and Tenshoku Navi. Services Machbaito Tenshoku Kaigi Tenshoku Navi (Excluding Tenshoku Kaigi BUSINE
Slide 39: Launching New Business
Launching New Business 39 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 40: Optimizing Business Portfolio
Optimizing Business Portfolio 40 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 41: Becoming a Company That Enjoys the Continued Support of Society
Becoming a Company That Enjoys the Continued 41 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 42: 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