Slide 1: Financial Results Briefing, 2nd Quarter FY ending March 2025
Financial Results Briefing The 2nd Quarter of the Fiscal Year Ending March 31, 2025 November 8, 2024 GEECHS Inc. TSE Standard Market: 7060 ©2024 GEECHS Inc.
Slide 2: Contents
Financial Results Briefing 1. Financial Highlights 2 2. Results by Segment 8 3. Medium-term Growth Strategy 18 4. Appendix 24 Contents 1 Financial Results Briefing for the 2nd Quarter of the Fiscal Year Ending March 31, 2025 ©2024 GEECHS Inc.
Slide 3: Financial Highlights
Financial Results Briefing Financial Highlights Financial Highlights for FY3/2025 2Q 1 2 Financial Results Briefing for the 2nd Quarter of the Fiscal Year Ending March 31, 2025 ©2024 GEECHS Inc.
Slide 4: FY3/25 2Q: Executive Summary
FY3/25 2Q : Executive Summary Quarterly sales reached 6.35 billion yen, achieving a record high. ◼ Sales exceeded 12.18 billion yen in 2Q cumulative, setting a record. ◼ Operating profit also rose significantly, up 84.3% YoY, reaching 193 million yen in 2Q cumulative. ◼ Net income improved substanti
Slide 5: FY3/25 2Q: Financial Highlights (Gross Sales, Operating Margin)
FY3/25 2Q : Financial Highlights (Gross Sales, Operating Margin) ■ Sales exceeded 6.35 billion yen in 2Q, up 6.5% YoY, showing continued growth. (Excluding sales from G2 Studios *1, sales rose 17.4% YoY) ■ Operating margin is 1.8%, impacted by a negative contribution from IT freelance matching busin
Slide 6: FY3/25 2Q: Financial Highlights (EBITDA, Operating Profit)
FY3/25 2Q : Financial Highlights (EBITDA, Operating Profit) ■ Operating profit amounted to 112 million yen in 2Q, 49.0% YoY growth. ■ While reconstruction the business portfolio, quarterly operating profit continued to show positive growth. (million yen) ■ EBITDA ■ Operating income 500 395 379 400 3
Slide 7: FY3/25 2Q: Financial Highlights by Business Segment
FY3/25 2Q: Financial Highlights by Business Segment ■ IT Freelance Matching Business (Japan) : Sales reached 7.43 billion yen in the first half, setting a new record. Operating profit grew 8.3% YoY, despite higher personnel costs. ■ IT Freelance Matching Business (Overseas) : Sales reached 4.55 bill
Slide 8: Consolidated Balance Sheet & Cash Flow Statement
Consolidated Balance Sheet & Cash Flow Statement ■ In the cash flow statement, net income before tax adjustments increased, but operating cash flow decreased due to a temporary rise in corporate tax payments related to the sale of G2 Studios and increase in accounts receivable and contract assets. B
Slide 9: Results by Segment
Financial Results Briefing Results by Segment Financial Results for FY3/2025 2Q 2 8 Financial Results Briefing for the 2nd Quarter of the Fiscal Year Ending March 31, 2025 ©2024 GEECHS Inc.
Slide 10: IT Freelance Matching Business (Japan) (Sales, Segment Income and Advertising Expense Ratio)
IT Freelance Matching Business (Japan) (Sales, Segment Income and Advertising Expense Ratio) ■ Sales exceeded 3.74 billion yen in 2Q, marking a record high. 2Q (YoY) ■ While advertising expenses were controlled, personnel expenses rose this year due to increased hiring, resulting in a segment profit
Slide 11: IT Freelance Matching Business (Japan) (Freelancers Under Contract, Unit Price of Orders)
IT Freelance Matching Business (Japan) (Freelancers Under Contract, Unit Price of Orders) ■ The number of man-months worked reached a record high of 4,666 in 2Q, despite challenges from contract completions in the enterprise system development projects from 4Q of FY3/24 to 1Q. ■ The unit price of or
Slide 12: IT Freelance Matching Business (Japan) (New Business Partners, New Registrants)
IT Freelance Matching Business (Japan) (New Business Partners, New Registrants) ■ The number of new business partners increased by 48 companies, bringing the total number of business partners to 1,707. ■ We continued to acquire new IT freelancers successfully while controlling advertising expenses.
Slide 13: IT Freelance Matching Business (Japan) (Profitability)
IT Freelance Matching Business (Japan) (Profitability) ■ Unit economics improved significantly to 5.7, up from FY3/24. This was due to the return of customer acquisition cost (CAC) to an appropriate level by controlling branding advertising investments. ■ Driving up life-time value (LTV) by increasi
Slide 14: IT Freelance Matching Business (Overseas) (Sales, EBITDA and Segment Income)
IT Freelance Matching Business (Overseas) (Sales, EBITDA and Segment Income) ■ Sales reached 2.5 billion yen in 2Q, 34.5% increase YoY. However, IT temporary staffing and placement service faced challenges and gross profit margin declined, resulting in segment loss of 57 million yen. 2Q (YoY) Sales
Slide 15: Seed Tech Business (Sales, Segment Income)
Seed Tech Business (Sales, Segment Income) ■ Quarterly sales and segment income reached record highs, showing steady progress toward the full-year forecast. ■ Increased summer study-abroad demand from both corporate and individual clients contributed significantly to sales and profit growth. 2Q (YoY
Slide 16: Changes in the Number of Employees
Changes in the Number of Employees ◼ Although the total number of employees decreased compared to FY3/23*1, the number of employees in IT freelance matching business (Japan) has expanded to 149 by the end of the first half of FY3/25, following strategic hiring efforts. (Persons) ■ IT Freelance Match
Slide 17: Approach towards M&A
Approach towards M&A ◼ We expanded the sourcing scope in the IT human resources field in the first half of FY3/25 in line with our mid -term growth strategy. The number of sourced projects increased from 18 in the same period last year to 74 by focusing on IT consulting, system development, and IT s
Slide 18: Shareholder Composition
Shareholder Composition ◼ The composition of both international and domestic institutional investors increased compared to the end of FY3/24, reversing the previous downward trend. Overseas institutional investors Overseas institutional investors 2.9% 3.7% Domestic institutional investors Domestic i
Slide 19: Medium-Term Growth Strategy
Financial Results Briefing Medium-Term Growth Strategy 3 18 Financial Results Briefing for the 2nd Quarter of the Fiscal Year Ending March 31, 2025 ©2024 GEECHS Inc.
Slide 20: GEECHS Group's Future Growth Strategy
GEECHS Group's Future Growth Strategy We have been operating businesses in IT freelance sharing agent, offshore IT ( billion yen ) Amount of Domestic IT Investment 25,000.0 (Total across industries) human resources utilization, and IT human resources development since 23,513.1 22,653.6 21,803.3 esta
Slide 21: New Domain of Expansion
New Domain of Expansion 3rd Domain Possess IT consulting, PMO, and development Expansion From IT Human capabilities within the group to provide comprehensive support. Resources Supply to Through M&A execution, we aim to strengthen consulting capabilities and expand Solution Providers into DX/IT huma
Slide 22: Group Image Through Strategic M&A
Group Image Through Strategic M&A Aiming to achieve a one-stop solution provision as a company that solve the shortage of IT human resources. DX/IT Human Resources& IT Freelance Organization Consulting Technical Resource Sharing ( JPN ) Supporting from HR development to organizational building. Offs
Slide 23: Basic M&A Policy
Basic M&A Policy Target scopes and companies for M&A in alignment with the mid -term growth strategy. M&A Target Scope Potential Company Criteria ◼ Companies with proven track record DX/IT Human Resources, and expertise in strategic planning Organizational Consulting and execution ◼ Sales 500 millio
Slide 24: Initiatives to Enter New Domains
Initiatives to Enter New Domains Considering multiple ways to expand while strengthening promotion of M&A Optimize methods of entering new domain ◼ Consider M&A potential companies at appropriate valuations. ◼ Consider new business creation through hiring professional personnel at the same time, and
Slide 25: Appendix
Financial Results Briefing Appendix 4 24 Financial Results Briefing for the 2nd Quarter of the Fiscal Year Ending March 31, 2025 ©2024 GEECHS Inc.
Slide 26: Solving the Shortage of IT Human Resources in Japan
About GEECHS Solving the Shortage of IT Human Resources in Japan IT Resource Crisis Is Our Business GEECHS supports the work styles of IT freelancers, sharing their skills and experiences with companies that face a shortage of IT human resources. GEECHS also continues to provide globally-oriented bu
Slide 27: Group Corporate Profile
Group Corporate Profile Group companies Company name GEECHS Inc. (TSE Standard Market: 7060) President and IT Freelance Matching Business (Japan) Naruhito Sonehara CEO Established August 23, 2007 IT Freelance Matching Seed Tech Business Business (Overseas) Shibuya Scramble Square, 2-24-12 Shibuya, H
Slide 28: GEECHS Social Impact Flow
GEECHS Social Impact Flow Input Group Synergies Through Business Activities Output Outcome Evolution of the IT freelance sharing business Creating a new “normal” Make the biggest impression Financial Capital through the integration of know-how and resources way of working in the 21st century • Growt
Slide 29: IT Freelance Matching Business, Japan
IT Freelance Matching Business, Japan Technology Resource Sharing Platform Growth companies in IT field Internet companies Project information website ■ Ad Tech ■ Med Tech Approx. with constantly over 1,500 projects ■ Fin Tech ■ Real Estate Tech Matching 3,630 ■ HR Tech ■ EC ■ Ed Tech ■ Game client
Slide 30: GEECHS Strengths
GEECHS Strengths Support team structure of 3 people per IT freelancer Quick and relevant matching Support ■ Generous support as a project mentor ■ Speedier matching by taking the whole process online Capabilities ■ Generous support from career advisors ■ Utilizing big data to take factors other than
Slide 31: Source of Growth
Source of Growth Financial Figures Business KPIs Key Success Factor Platform Value Monthly orders Trust from IT freelancers and Sales Monthly unit price of orders Matching Capabilities customers Order period Source of growth Retention rate Support capabilities / Engagement Gross profit Added value f
Slide 32: Measures to improve engagement of IT freelancers
Measures to improve engagement of IT freelancers Improve engagement by having effective touch points with IT freelancers over the long term. Before Registration Pre-Registration Registration Sales Post-contract Marketing Engineer Partners / Sales Customer Service ◼ Organize “Tech Valley” technology
Slide 33: Differences from Similar Businesses
Differences from Similar Businesses Developing a platform specifically for mid- to high-spec, professional IT freelancers GEECHS Crowdsourcing IT Engineers Dispatch Registrant IT freelancers (main job) Freelancers (side/main job), and others Dispatched workers Main clients Growth companies in IT fie
Slide 34: Engagement
Engagement Strengthening ongoing partnerships to maximize business by increasing engagement with IT freelancers Offering 55 services which enable our IT freelancers to work for extended periods without the Benefits program undue stress of instability for IT freelancers ■ Seminars on how to file a ta
Slide 35: IT Freelance Matching Business, Overseas (Launch Group)
IT Freelance Matching Business, Overseas (Launch Group) Main Clients 1. Australian IT freelance service pioneer Established in 2006, Launch has earned trust and a track record as a venture company in the IT staffing service industry. MSP Contract Launch has been doing business continuously with more
Slide 36: Seed Tech
Seed Tech Development business - Offshore development business 1. A global standard business collaboration lab for Education business - Sodatech for developing global IT freelancers, IT study abroad offshore development Funds Providing comprehensive support for securing, developing, and managing IT
Slide 37: Performance Highlights
Performance Highlights Fiscal Year-End FY3/22 FY3/23 FY3/24 FY3/25 1H FY3/25 Forecast Sales (Thousand yen) 14,340,774 15,997,838 23,739,835 12,183,230 26,300,000 EBITDA (Thousand yen) 1,226,900 651,393 362,120 256,221 670,000 Operating income (Thousand yen) 1,133,696 589,410 90,859 193,497 550,000 O
Slide 38: Supplemental Data (IT Freelance Matching Business, Japan)
Supplemental Data (IT Freelance Matching Business, Japan) FY3/24 FY3/25 Fiscal Year-End 1Q 2Q 3Q 4Q Full-year 1Q 2Q Sales (Thousand yen) 3,460,652 3,447,026 3,519,688 3,662,106 14,089,473 3,694,229 3,740,740 Advertising expense* (Thousand yen) 106,986 108,202 63,917 50,774 329,879 46,684 42,458 Adve
Slide 39: Disclaimer
Disclaimer geechs.com The financial information contained herein is unaudited. The information contained in this presentation is based on a number of assumptions. These statements are not intended to assure or guarantee the achievement of future numerical targets or measures. Please note that actual