Slide 1: FY2018 Financial Results
FY2018 Financial Results Livesense Inc. (TSE1: 6054) February 14, 2019
Slide 2: Agenda
1 Financial Results 2 Business Overview Agenda 3 FY2019 Policy 4 Appendix Copyright © LIVESENSE Inc.
Slide 3: 1. Financial Results
1. Financial Results
Slide 4: Full Year Executive Summary
Full Year Executive Summary 4 Net sales up 6.9% YoY due to increased sales in recruiting and real estate segments. Operating income exceeded earnings forecast despite being down. Net sales ¥6,791 million ( YoY +¥441 million +6.9% ) Operating income ¥122 million ( YoY -¥99 million -44.9% ) Progre
Slide 5: Full Year Financial Results Overview
Full Year Financial Results Overview 5 (Millions of JPY) FY2017 FY2018 YoY Net Sales 6,350 +6.9% Operating Income 222 ▲44.9% Operating Margin(%) 3.5% ▲1.7pt Ordinary Income 457 ▲42.8% Profit attributable to 306 ▲7.1% owners of parent FY2017 FY2018 YoY Net Sales 5,773 6,375 +10.4% (Except for waja) O
Slide 6: Full Year Net Sales and Operating Income
Full Year Net Sales and Operating Income 6 Sales increased in recruiting and real estate segments. Consolidated net sales up 6.9% YoY (10.4% excluding impact of waja sale). Consolidated operating income down 44.9% YoY (17.7% excluding impact of waja sale) due mainly to investment in Machbaito and Te
Slide 7: Full Year Segment Net Sales and Operating Income - HR Information Media
Full Year Segment Net Sales and Operating Income 7 - HR Information Media Sales up 4.8% YoY due to increase in both Tenshoku Kaigi and Tenshoku Draft sales. Focus in Machbaito has been on increasing name recognition and improving user experience. (Millions of JPY) Machbaito Tenshoku Navi Operating I
Slide 8: Full Year Segment Net Sales and Operating Income - Real Estate Information Media
Full Year Segment Net Sales and Operating Income 8 -Real Estate Information Media Measures for customer attraction successful with DOOR Chintai for substantially increased sales and income. Number of IESHIL properties and listings substantially increased. Progress made on improving site value. (Mill
Slide 9: Full Year Segment Net Sales and Operating Income - E-Commerce
Full Year Segment Net Sales and Operating Income 9 -E-Commerce Transferred some waja shares to management in conjunction with shift in strategy, removing waja from scope of consolidation. (Millions of JPY) Net Sales Operation Income 2 ▲ 58 ▲ 58 577 439 416 FY2016 FY2017 FY2018 FY2016 FY2017 FY2018 *
Slide 10: Full Year Operating Income - YoY Comparison
Full Year Operating Income -YoY Comparison 10 Operating income down due to increase in advertising and other costs despite ¥440 million increase in consolidated net sales. (Millions of JPY) Personnel Cost Increase -40 Ad Cost Net sales Increase Increase -300 +441 Other Costs Increase -199 FY2017 Ope
Slide 11: Full Year Operating Expenses
Full Year Operating Expenses 11 Advertising costs up due to web advertising, monetary gifts for hiring*, etc. Under other expenses, operating costs, media development-related costs and others increased to expand Tenshoku Kaigi BUSINESS sales. (Millions of JPY) Personnel expenses 6,669 Advertising co
Slide 12: 2. Business Overview
2. Business Overview
Slide 13: 2. Business Overview: Overview of key businesses
13 2. Business Overview Overview of key businesses Copyright © LIVESENSE Inc.
Slide 14: Machbaito: Increasing Name Recognition
Machbaito: Increasing Name Recognition 14 Over 80,000 cumulative applications via “Kami-Machbaito” promotion. Progress also made on corporate collaborations and media exposure, increasing name recognition. Collaboration on “Nisekoi” film Main media and research covering Kami-Machbaito CODE Award 201
Slide 15: Tenshoku Kaigi: Progress on Tenshoku Kaigi BUSINESS
Tenshoku Kaigi: 15 Progress on Tenshoku Kaigi BUSINESS Progress slower than expected due to changes to product mix despite substantial increase in number of user companies. Aim for site that not only allows browsing of reviews but also provides seamless process from company search to career change,
Slide 16: 2. Business Overview: Other Business Topics and Progress
16 2. Business Overview Other Business Topics and Progress Copyright © LIVESENSE Inc.
Slide 17: Syukatsu Kaigi: Expanding Use by New Grads
Syukatsu Kaigi: 17 Expanding Use by New Grads Number of registrations by 2019 graduates surpassed 150,000. One in three new grads using site. Number of companies, including major corporations, using success fee-based Syukatsu Kaigi Recruiting service increased. Percentage of Syukatsu Kaigi Users Num
Slide 18: Tenshoku Draft: Expansion of Use
Tenshoku Draft: Expansion of Use 18 Progress made on expanding job categories and business in 2.5 years since launch of service. Developing unique position by launching Designer Draft for designers on heels of Tenshoku Draft for web engineers. Trend in Net Sales (Millions of JPY) Copyright © LIVESEN
Slide 19: IESHIL: Enhancement of Real Estate-related Information
IESHIL: 19 Enhancement of Real Estate-related Information Promoted provision of building-related information, including disaster risk and school zones. Aiming for improved user value and transparency/revitalization of real estate market by promoting further enhancement of real estate-related informa
Slide 20: imitsu: End of Joint Operation and Transfer of Shares
imitsu: 20 End of Joint Operation and Transfer of Shares Joint operation with unilabo ended. Imitsu now independently operated by unilabo. Growth of imitsu business accelerated by improving speed of decision-making. Livesense supports imitsu and unilabo as shareholder. Copyright © LIVESENSE Inc.
Slide 21: FY2018 Summary
FY2018 Summary 21 FY2018 Company-wide Policy: Establish strength (competitive advantage) to create “the next common” as part of our corporate vision “Invent the next common” Summary: Progress made on investing resources in key businesses and reorganizing business portfolio. At same time, results hav
Slide 22: Full Year Summary by Business: Human Resources
Full Year Summary by Business 22 • Implemented promotion to increase name recognition. “Kami- Machbaito Machbaito” continued to be talked about on SNS, and corporate collaborations also increased • Promoted increase in user companies through corporate Tenshoku marketing as well as enhanced user attr
Slide 23: Business Strategy for FY2018 and Progress
Business Strategy for FY2018 and Progress 23 • Increased DOOR Chintai income by aggressively investing in web advertising and other means Information Real Estate DOOR Chintai • IESHIL launched provision of information on disaster risk and school zones. Promote improvement of IESHIL site value by IES
Slide 24: 3. FY2019 Policy
3. FY2019 Policy
Slide 25: Company-wide Policy for FY2019
Company-wide Policy for FY2019 25 Policy: Establish strength (competitive advantage) to create “the next common” as part of our corporate vision “Invent the next common.” Focus on media improvements to increase intrinsic value of services and building foundation for future growth. Invest resources
Slide 26: Changes in Market for Human Resources Information Services
Changes in Market for Human Resources 26 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 27: Real Data Engineering
Real Data Engineering 27 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 • Area • Compan
Slide 28: Real Data Engineering
Real Data Engineering 28 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 “ Machine lear
Slide 29: Data Analysis Platform: LIVESENSE Analytics
Data Analysis Platform: LIVESENSE Analytics 29 Accumulate and analyze big data such as user behavior history with proprietary analytics platform. Realize that provision of information anticipating latent user needs, enhancement of usability through improvements to site functionality and services, an
Slide 30: Machine Learning Platform: LIVESENSE Brain
Machine Learning Platform: LIVESENSE Brain 30 Develop proprietary platform to utilize accumulated data in machine learning. Accumulate company-wide machine learning know-how and algorithms to achieve improved user experience with each service. Development/implementation by Promote creation of value
Slide 31: Utilization of Machine Learning: LIVESENSE Brain
Utilization of Machine Learning: 31 LIVESENSE Brain Promote utilization of LIVESENSE Brain machine learning platform in each service this fiscal year. Optimization of employment information list/search results Job openings closer to the user’s preferences with a greater chance of success are displ
Slide 32: Financial Forecasts for FY2019 (First Half)
Financial Forecasts for FY2019 (First Half) 32 Make partial change to growth scenario focused on Livesense Connect. Sales and income decrease in first half. Aim for full-year profitability. Prioritize improving intrinsic value of services and laying foundation for future growth over monetizing for s
Slide 33: LIVESENSE
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Slide 34: 4. Appendix
4. Appendix
Slide 35: Segments and Core Media
Segments and Core Media 35 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 36: Quarterly Net Sales and Operating Income
Quarterly Net Sales and Operating Income 36 HR Information Media (Millions of JPY) Real Estate Information Media E Commerce Other Businesses 1,744 1,775 Operating Income 1,714 1,704 1,630 1,611 135 1,567 148 153 127 160 132 172 1,394 109 242 240 262 164 148 135 121 1,411 1,425 1,262 1,289 1,295 1,29
Slide 37: Quarterly Segment Net Sales and Operating Income - HR Information Media
Quarterly Segment Net Sales and Operating Income 37 -HR Information Media Machbaito Tenshoku Navi (Millions of JPY) Tenshoku Kaigi Other HR Services Operating Income 1,411 1,425 1,289 1,295 1,298 1,284 1,262 1,096 289 300 283 270 305 316 284 227 394 393 347 388 336 353 358 297 640 618 553 546 562 53
Slide 38: Quarterly Segment Net Sales and Operating Income - Real Estate Information Media
Quarterly Segment Net Sales and Operating Income 38 -Real Estate Information Media (Millions of JPY) Net Sales Operating Income 262 242 240 164 172 148 121 109 76 76 69 45 30 30 14 5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2017 FY2018 Copyright © LIVESENSE Inc.
Slide 39: Quarterly Segment Net Sales and Operating Income - E-Commerce
Quarterly Segment Net Sales and Operating Income 39 -E-Commerce (Millions of JPY) Net Sales Operating Income 160 153 148 135 132 135 127 3 5 3 10 7 14 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 36 FY2017 FY2018 Copyright © LIVESENSE Inc.
Slide 40: Quarterly Operating Income - YoY Comparison
Quarterly Operating Income -YoY Comparison 40 (Millions of JPY) Other Costs Decrease -5 4Q/18 Ad Cost Operating Decrease income +94 96 4Q/17 Operating income 3 Net Sales Personnel Cost Decrease Decrease -44 +37 Copyright © LIVESENSE Inc.
Slide 41: Quarterly Operating Expenses
Quarterly Operating Expenses 41 (Millions of JPY) Personnel expenses 1,809 Advertising costs 1,723 Depreciation and amortization 1,665 1,629 1,607 Others 1,552 555 1,471 1,339 465 565 467 441 467 444 390 559 619 510 551 512 438 457 347 609 632 598 629 622 632 564 558 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2017 F
Slide 42: Employees
Employees 42 No. of Employees (Consolidated) Breakdown of Full-time Employees (People) Customer Regular/HQ Support Administ Regular/R 3% ration Part-time Regular/Subsidiaries 13% Part-time/Subsidiaries Engineers/ 495 489 487 482 478 Designers 438 437 30 29 29 416 39% 44 45 415 28 28 17 16 132 126 12
Slide 43: Record of Recent Major Publicity Events
Record of Recent Major Publicity Events 43 Jan. 20, 2019 Kami-Machbaito introduced on Nippon TV’s program “Kotoge Hello Work” Dec. 25, 2018 Interview of representative posted in Shukan Gendai combined January 5 and 12 issue Dec. 6, 2018 Kami-Machbaito covered on “News na Joshi Daisei to Kato Koji” o
Slide 44: Corporate Profile
Corporate Profile 44 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 45: Disclaimer
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