Livesense Inc. · TSE:6054
Livesense — FY2024 Earnings Presentation
52 slides from Livesense's earnings presentation, Feb 12, 2025
Slide 1: FY2024 Financial Results
Livesense Inc. (TSE Standard Market : 6054) FY2024 Financial Results February 12, 2025
Slide 2: Agenda
Agenda 1. Financial Results 2. FY2024 Summary 3. FY2024 Policy 4. Achieving Management Conscious of Cost of Capital and Stock Price 5. Appendix 2 Livesense Inc.
Slide 3: 1. Financial Results
1. Financial Results
Slide 4: Executive Summary Full-year Performance
Executive Summary Net Sales｜¥6,320 million YoY +¥666 million (+11.8%) • Sales up, driven primarily by Machbaito and IESHIL. Purchase and resale business transactions up in IESHIL. • Machbaito’s business environment changed significantly in second half. Sales growth came in lower than Full-year initi
Slide 5: Full-year Consolidated Performance
Full-year Consolidated Performance Net sales up 11.8% YoY. Both net sales and operating income fell below initial forecast due to investments and changes in business environment in second half (Millions of JPY) Performance FY2023 FY2024 FY2023-24YoY forecast comparison Increase/decrease factors Net
Slide 6: Net Sales Breakdown
Net Sales Breakdown Machbaito sales increased for fourth consecutive quarter. IESHIL purchase and resale business transactions increased. Tenshoku Draft sales declined due to intensified competition in career change market (Millions of JPY) FY2023 FY2024 FY2023-24YoY Increase/decrease factors Net Sa
Slide 7: Costs Breakdown
Costs Breakdown Personnel expenses up due to hiring for organizational structure reinforcement. Cost of real estate sales up due to increased purchase and resale business transactions under other expenses (Millions of JPY) FY2023 FY2024 FY2023-24YoY Increase/decrease factors Increase due to hiring t
Slide 8: Trends in Operating Income: Variance Analysis
Trends in Operating Income: Variance Analysis Increase in costs, including cost of real estate sales, alongside sales growth. Continuing investment to strengthen hiring and expand business, but some delayed or suspended due to changes in the business environment in the second half Factors affecting
Slide 9: 2. FY2024 Summary
2. FY2024 Summary
Slide 10: FY2024 Summary
FY2024 Summary Although growth slowed due to changes in the business environment, investments in business and organizational strengthening progressed. Net sales reached a record high with fourth consecutive quarter of increased Strengthening Investment sales. Fell short of expectations due to change
Slide 11: FY2024 Summary
FY2024 Summary Although growth slowed due to changes in the business environment, investments in business and organizational strengthening progressed. Net sales reached a record high with fourth consecutive quarter of increased Strengthening Investment sales. Fell short of expectations due to change
Slide 12: Strengthening Investment to Accelerate Machbaito Growth - Business Strategy
Strengthening Investment to Accelerate Machbaito Growth- Business Strategy FY2024 Policy Promote expansion of transactions with major customers and cultivation of new customer groups. To achieve this, Strengthen sales system to accelerate growth. Enhancement of customer attraction Starting from FY20
Slide 13: Machbaito Growth - Progress on Strategy - 1
Strengthening Investment to Accelerate Machbaito Growth - Progress on Strategy - 1 Net sales reached a record high with fourth consecutive quarter of increased sales. Meanwhile, changes in hiring policies among major customers and increased advertising by competitors led to lower-than-expected sales
Slide 14: Machbaito Growth - Progress on Strategy - 2
Strengthening Investment to Accelerate Machbaito Growth - Progress on Strategy - 2 Number of listings continued to grow steadily through transaction expansion and new customer cultivation. Number of of listings 121 116 117 107 108 100 103 95 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2023 FY2024 14 ※Relative value w
Slide 15: Machbaito Growth - Other Topics
Strengthening Investment to Accelerate Machbaito Growth - Other Topics Video ads featuring talent released in January Created a commercial featuring Chocolate Planet and Naenano, popular among Machbaito’s main user base of those in their teens to 20s. Total of eight video ads released one after anot
Slide 16: FY2024 Summary
FY2024 Summary Although growth slowed due to changes in the business environment, investments in business and organizational strengthening progressed. Net sales reached a record high with fourth consecutive quarter of increased Strengthening Investment sales. Fell short of expectations due to change
Slide 17: Creating new revenue streams - Tenshoku Draft
Creating new revenue streams - Tenshoku Draft Establishing a strong position in the engineering career change sector by building a framework to support a broader range of engineer careers Expanding options enables more tailored support to meet a wider range of needs Scouting service + Launched in FY
Slide 18: Creating New Revenue Streams – Tenshoku Draft
Creating New Revenue Streams – Tenshoku Draft Tenshoku Draft Agent is strengthening customer attraction efforts for future expansion. The scouting service provides new matching opportunities through special events Strengthening customer Exclusive high-class event Tenshoku Draft Tenshoku Draft Agent
Slide 19: Creating New Revenue Streams - Tenshoku Kaigi
Creating New Revenue Streams - Tenshoku Kaigi Released scouting service in Tenshoku Kaigi. Can now directly approach users who meet specific criteria from partner companies. Will strengthen monetization across all services, including scouting. Referral fee … … Reviews Referral View reviews Recruitme
Slide 20: Creating new revenue streams - IESHIL
Creating new revenue streams - IESHIL Verified the purchase and resale of existing condominiums, successfully completing multiple transactions. Expanded content for potential condominium buyers on website to strengthen member acquisition Reselling Multiple sales closed. Visualize scoring such as Con
Slide 21: Creating New Revenue Streams- batonn
Creating New Revenue Streams- batonn Promoted functional enhancement to improve UX and strengthening of customer cultivation. Order rate increased significantly Initiatives to Functional Enhanced features to strengthen Strengthened implementation and utilization collaboration among people in charge
Slide 22: Strengthening Organizational Structure
Investment to Accelerate Organizational and Business Growth: Strengthening Organizational Structure Strengthened recruitment of core personnel to plan and promote business strategy, steadily increasing number of full-time employees. Increased percentage of mid- and high-level personnel* *Defined by
Slide 23: 3. FY2025 Policy
3. FY2025 Policy
Slide 24: Medium- to Long-term Policy
Medium- to Long-term Policy Strengthen revenue base of existing businesses while pursuing new strengths and revenue streams to achieve sustainable growth. M&A will also be considered as option for creating new revenue streams Medium- to Long-term Policy Expand customer base through expanded transact
Slide 25: FY2025 Policy
FY2025 Policy Promote measures below to achieve medium- to long-term growth. Prioritize measures that will contribute to income in FY2025 based on most recent changes in business environment Company-wide Balance securing income with initiatives for medium- to long-term Policy for FY2025 growth Machb
Slide 26: FY2025 Policy | Machbaito
FY2025 Policy | Machbaito Expanding transactions with major customers and cultivating new customers has contributed to net sales growth and will be continued. Will also focus on creating new service value due to discontinuation of Mach Bonus Ongoing Promote expansion of transactions and new customer
Slide 27: FY2025 Policy | Tenshoku Draft Rebranding
FY2025 Policy | Tenshoku Draft Rebrand as service that supports IT engineers in their career development. Aim to expand awareness of new brand and establish position in engineering career domain Aim to enhance industry recognition by Update tagline, logo, and key visuals to Launching promoting Tensh
Slide 28: FY2025 Policy | Tenshoku Draft
FY2025 Policy | Tenshoku Draft Integrate all services under Tenshoku Draft Series alongside branding efforts. Aim for brand that comprehensively supports engineers’ career development by further expanding lineup Select services according to needs Monthly and high-class events Job Hiring seeker compa
Slide 29: FY2025 Policy | Creating New Revenue Streams
FY2025 Policy | Creating New Revenue Streams Making progress on verifying measures in each business. Aim to establish new revenue streams Grow scouting service Verify property purchase system and value provided in purchase and resale business Expand target by enhancing site functionality and content
Slide 30: FY2025 Results Forecasts
FY2025 Results Forecasts Sales up but income down due to lower sales from changes in business environment and impact of deferred investments from FY2024. Income impact of regulations concerning monetary gifts is expected to be minimal at this stage, but volatility remains high (Millions of JPY) Fore
Slide 31: FY2025 Results Forecasts | Assumptions
FY2025 Results Forecasts | Assumptions Recognizing business environment changes in second half of FY2024 and discontinuation of Mach bonus as factors impacting FY2025 performance, incorporating them into results forecast Changes in Changes in major customer trends/Strengthened Impact on FY2025 resul
Slide 32: 4. Achieving Management Conscious of Cost of Capital and Stock Price
4. Achieving Management Conscious of Cost of Capital and Stock Price
Slide 33: Analysis of Current Situation | Capital Profitability and Cost of Capital
Analysis of Current Situation | Capital Profitability and Cost of Capital WACC and cost of equity estimated to be approx. 6-8%. In FY2024, decline in operating income caused ROIC and ROE to fall below WACC and cost of equity, respectively After-tax operating profit ROIC/ROE* Assumptions for estimati
Slide 34: Analysis of Current Situation | Market Valuation
Analysis of Current Situation | Market Valuation Stock price has been falling since FY2014. Stock price rose in FY2022 with recovery in performance but declined again, hovering near its all-time low. Divergence from market has been significant over past year, with PBR remaining below 1x. End of peri
Slide 35: Analysis of Current Situation | Analysis of Issues
Analysis of Current Situation | Analysis of Issues Three points below recognized as particularly important issues for improving market valuation Major issues for improving market valuation Low profitability and Low profitability and capital efficiency relative to invested capital eroding corporate v
Slide 36: Policy for Increasing Corporate Value
Policy for Increasing Corporate Value The company will promote an increase in free cash flow and maintain or reduce capital costs at an appropriate level to increase corporate value. Policy for increasing corporate Action plan (p. Ultimate goal value 9) -Continue to grow existing Increase free cash
Slide 37: Policy for Increasing Corporate Value | Capital Allocation
Policy for Increasing Corporate Value | Capital Allocation Utilize borrowings and allocate funds, excluding working capital and profit returns, to growth investments Cash in Capital Allocation Diagram (Millions of JPY) • Operating cash flow and borrowings assumed as primary sources of funding Borrow
Slide 38: Policy for Increasing Corporate Value | KPIs
Policy for Increasing Corporate Value | KPIs Most critical factor for increasing corporate value of the Group is continued growth of free cash flow. EBITDA growth rate and ROIC to be set as key performance indicators (KPIs), with target values defined in Medium-Term Business Plan. KPI Reason Target
Slide 39: Future Initiatives
Future Initiatives Promote initiatives to increase corporate value based on four action plans. In FY2025 focus will be on action plans 1 and 2 while promoting establishment of Medium-Term Business Plan Action plan Details FY2025 plan • Expand customer base through expanded transactions with customer
Slide 40: 5. Appendix
5. Appendix
Slide 41: Origin of the company name/Business Philosophy
Appendix｜ Origin of the company name/Business Philosophy Origin of the company name LIVE + SENSE Business Philosophy Happiness Begetting Happiness. Corporate Vision Invent the next common. 41 Livesense Inc.
Slide 42: Basic Philosophy of Business Operation
Appendix｜ Basic Philosophy of Business Operation Basic Philosophy We will view structural distortions preventing optimal choices as social issues to be solved with technology. Three business themes based on basic philosophy System Innovation Respect for High Transparency through DX Humanity Improve
Slide 43: System Innovation through DX
Appendix｜System Innovation through DX Improve convenience and efficiency of everyday life and business by updating old system and solving issues of inconvenience and inefficiency. Business Examples Promoted digitalization in the part-time job industry in which paper-based job listings were the norm.
Slide 44: High Transparency
Appendix｜High Transparency Reduce mismatches by eliminating asymmetry of information and realize a society with better choices for individuals and organizations. Business Examples Provides reviews of more than 240,000 companies and visualizes working conditions at companies to deliver optimal suppor
Slide 45: Respect for People
Appendix｜Respect for People Increase satisfaction with choices through matching that incorporates diverse preferences and values, breaking free from excessive mechanization. Business Examples • Matching that also • Matching via one- considers personality and sided information values • Boilerplate •
Slide 46: Quarterly Sales and Operating Income Trends
Quarterly Sales and Operating Income Trends (Millions of JPY) FY2023 FY2024 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Net Sales 1,292 1,494 1,487 1,379 1,568 1,678 1,496 1,577 YoY 25.7% 23.6% 16.3% 11.1% 21.3% 12.3% 0.6% 14.3% Macha baito 823 1,008 987 957 1,001 1,038 934 964 YoY 32.7% 32.5% 31.0% 18.5% 21.5% 3.0% -5
Slide 47: Quarterly Expense Trends
Quarterly Expense Trends (Millions of JPY) FY2023 FY2024 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Personnel expenses 375 399 429 444 437 460 487 513 YoY -11.7% 5.7% 14.7% -2.1% 16.4% 15.2% 13.7% 15.4% Advertising costs 475 523 470 416 475 457 477 522 YoY 60.4% 48.2% 26.2% 11.0% 0.0% -12.6% 1.5% 25.6% Others 393 395
Slide 48: Consolidated Balance Sheets
Consolidated Balance Sheets (Millions of JPY) FY2023 FY2024 YoY Assets Current assets 4,555 4,765 +210 Cash and deposits 3,647 3,925 +278 Fixed assets 252 175 -76 Tangible fixed assets 1 0 -1 Intangible fixed assets 6 5 -1 Investments and othe 244 170 -73 Total assets 4,808 4,941 +133 Liabilities Cu
Slide 49: Corporate Profile
Appendix｜Corporate Profile Company name Livesense Inc. CEO/Founder Taichi Murakami Business Philosophy Happiness Begetting Happiness. Corporate Vision Invent the next common. Established February 8, 2006 Tokyo Stock Exchange Prime Market Listing Market (Securities code: 6054) Number of Full-Time: 23
Slide 50: Employees
Appendix｜Employees No. of Employees (Consolidated) Breakdown of Full-time Employees Regular (People) Part-time Subsidiaries Corporate 289 297 20% Engineers 277 254 253 254 253 255 263 266 265 / 51 45 51 Designers 39 40 43 41 46 46 51 38 Business 30% Operation 10% 210 212 211 222 227 235 Product / 20
Slide 51: Disclaimer
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 informati
Slide 52: LIVESENSE
6 LIVESENSE