Slide 1: FY2019 3rd Quarter Financial Results
FY2019 3rd Quarter Financial Results Livesense Inc. (TSE1: 6054) November 14, 2019
Slide 2: Agenda
1 Financial Results Agenda 2 Business Overview 3 Appendix Copyright © LIVESENSE Inc.
Slide 3: 1. Financial Results
1. Financial Results
Slide 4: Executive Summary for the 3rd Quarter
Executive Summary for the 3rd Quarter 4 Sales down due primarily to removing E-commerce business from scope of consolidation by selling shares in subsidiary. Income down due to lower number of hires in HR Information Media business. Net sales ¥1,548 million ( YoY -¥156 million -9.2% ) Operating
Slide 5: Quarterly Financial Results Overview
Quarterly Financial Results Overview 5 (Millions of JPY) FY2018 FY2019 YoY 3Q 3Q Net Sales 1,704 1,548 ▲9.2% Operating Income ▲ 18 ▲ 88 － Operating Margin(%) － － － Ordinary Income 0 ▲ 69 － Profit attributable to 113 ▲ 49 － owners of parent (Reference) Quarterly Financial Results Overview Excluding I
Slide 6: Earnings Forecast Revision
Earnings Forecast Revision 6 Earnings forecast revised in light of transfer of DOOR Chintai business and progress in each business. (Millions of JPY) FY2019 FY2019 FY2018 Previous Revised YoY Results Forecasts Forecasts Net Sales 6,791 6,500 6,200 ▲8.7% Operating Income 122 150 0 － Ordinary income 2
Slide 7: Net Sales and Operating Income
Net Sales and Operating Income 7 Sales down 9.2% YoY due mainly to impact of removing subsidiary from scope of consolidation. Income down ¥70 million YoY, due primarily to reduced income from HR Information Media business. HR Information Media Real Estate Information Media E Commerce Other Businesse
Slide 8: Segment Net Sales and Operating Income - HR Information Media
Segment Net Sales and Operating Income 8 - HR Information Media Machbaito sales up 28.9% YoY, owing primarily to expansion of ad placements, maintaining advertising efficiency, and increase in app users. Tenshoku Kaigi sales down due to partial suspension of new sales in conjunction with shift in bu
Slide 9: Segment Net Sales and Operating Income - Real Estate Information Media
Segment Net Sales and Operating Income 9 -Real Estate Information Media Sales remained flat YoY due primarily to impact of long holiday. Income down due to temporary increase in advertising costs. Decision made to transfer DOOR Chintai business. (Millions of JPY) Net Sales Operating Income 312 262 2
Slide 10: Operating Income - YoY Comparison
Operating Income -YoY Comparison 10 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) 3Q/18 3Q/19 Operating Net sales Operating income Decrease income -18 -156 -88 Personnel Cost Ad Co
Slide 11: Operating Expenses
Operating Expenses 11 Related costs were down approx. ¥160 million with removal of subsidiary from scope of consolidation, but web advertising, promotions, and other advertising costs were up. Personnel expenses (Millions of JPY) Advertising costs Others 1,809 1,723 1,665 1,637 1,566 567 1,471 1,472
Slide 12: 2. Business Overview
2. Business Overview
Slide 13: Business Portfolio Restructuring: DOOR Chintai Business Transfer
Business Portfolio Restructuring: 13 DOOR Chintai Business Transfer DOOR Chintai to be transferred for purpose of business portfolio restructuring. Extraordinary income of ¥1.75 billion expected in 4Q in conjunction with business transfer. Restructuring of business portfolio through higher investmen
Slide 14: Portfolio Restructuring: DOOR Chintai Business Transfer
Portfolio Restructuring: 14 DOOR Chintai Business Transfer Secure several years of future operating profit in lump sum. P/L statement will be worse in short term beginning next year, but this is outweighed by advantages of securing certain funds and reallocating resources. Income forecast if continu
Slide 15: Portfolio Restructuring: Future Investment Areas
Portfolio Restructuring: 15 Future Investment Areas Establish business model not dependent on customer attraction via search traffic, which is common characteristic of existing businesses, as future investment area. Work on creating new businesses that will become the next common and acquire busines
Slide 16: Initiatives for Continuous Change and Improved Corporate Value
Initiatives for Continuous Change and 16 Improved Corporate Value Launch of Management Design Project to redefine Livesense value. Aim to become company that enjoys continued support of society by continually updating the company stance and to acquire and keep human resources and continually improve
Slide 17: Utilization of Machine Learning
Utilization of Machine Learning 17 Progress on optimization of Tenshoku Navi search results and recommendations using machine learning. Increased number of applications by predicting company hiring trends and improving accuracy of job search results and recommendation e-mails. Number of hires expect
Slide 18: Business Strategy for FY2019 and Progress
Business Strategy for FY2019 and Progress 18 • Ongoing promotions to increase name recognition. In addition to service names, promoted Mach Bonus and other user value ・Machbaito • Favorable number of iOS app installations. Continue to promote use • Shifted orientation from short-term business expans
Slide 19: LIVESENSE
6 LIVESENSE BIOEKAE, KALKS.
Slide 20: 3. Appendix
3. Appendix
Slide 21: 3. Appendix Corporate Profile
21 3. Appendix Corporate Profile Copyright © LIVESENSE Inc.
Slide 22: Corporate Profile
Corporate Profile 22 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 23: The Origin of Company Name / Business Philosophy
The Origin of Company Name 23 / Business Philosophy The Origin of Company Name LIVE + SENSE Business Philosophy Happiness Begetting Happiness Copyright © LIVESENSE Inc.
Slide 24: Corporate vision: Invent the next common.
Corporate vision : Livesense’s Origin 24 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 25: Segments and Core Media
Segments and Core Media 25 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 26: Employees
Employees 26 No. of Employees (Consolidated) Breakdown of Full-time Employees (People) Customer Regular/HQ Support Administr Regular/R 3% ation Part-time 12% Regular/Subsidiaries Part-time/Subsidiaries Engineers/ 482 487 Designers 478 41% 29 44 45 416 415 408 408 400 Sales 17 16 7 7 7 21% 120 115 11
Slide 27: 3. Appendix Our Strategy
27 3. Appendix Our Strategy Copyright © LIVESENSE Inc.
Slide 28: Changes in Market for Human Resources Information Services
Changes in Market for Human Resources 28 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 29: Our Strategy: Real Data Engineering
Our Strategy : Real Data Engineering 29 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 30: Our Strategy: Real Data Engineering
Our Strategy : Real Data Engineering 30 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 31: Examples of Service Improvements with Utilization of Data
Examples of Service Improvements with 31 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 32: 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