Slide 1: FY2019 Financial Results
FY2019 Financial Results Livesense Inc. (TSE1: 6054) February 14, 2020
Slide 2: Agenda
1 Financial Results 2 Business Overview Agenda 3 FY2020 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 Sales down due primarily to removing E-commerce business from scope of consolidation by selling shares in subsidiary. Sales down due to lower number of hires in HR Information Media business. Extraordinary income recorded due to restructuring of business portfolio. Ne
Slide 5: Full Year Financial Results Overview
Full Year Financial Results Overview 5 (Millions of JPY) FY2018 FY2019 YoY Net Sales 6,791 6,189 ▲8.9% Operating Income 122 ▲5 － Operating Margin(%) 1.8% － － Ordinary Income 261 94 ▲63.9% Profit attributable to 285 1,250 +338.3% owners of parent (Reference) Full Year Financial Results Overview Exclu
Slide 6: Full Year Net Sales and Operating Income
Full Year Net Sales and Operating Income 6 Sales down in recruiting segment but up in real estate segment. Consolidated net sales down 8.9% YoY (2.9 % excluding impact of waja sale). Consolidated operating income down ¥128 million YoY (¥186 million excluding impact of waja sale) due mainly to Tensho
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 Machbaito and Syukatsu Kaigi sales up, but Tenshoku Navi sales down substantially. Decline in sales from review of new sales of Tenshoku Kaigi’s Tenshoku Kaigi BUSINESS was mostly as expected. Sales remained mostly flat YoY ex
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 Income down primarily as result of DOOR Chintai sales not being recorded in December due to business transfer and aggressive investment in web advertising. Progress made on efforts to improve IESHIL site value, includi
Slide 9: Full Year Operating Income - YoY Comparison
Full Year Operating Income - YoY Comparison 9 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) FY2019 FY2018 Operating Operating income income 122 ▲5 Net sales Decrease ▲602 Other Cos
Slide 10: Full Year Operating Expenses
Full Year Operating Expenses 10 Personnel expenses and other costs were down ¥443 million with removal of subsidiary from scope of consolidation. Advertising costs increased ¥218 million due to aggressive investment in web advertising and promotions. (Millions of JPY) Personnel expenses Advertising
Slide 11: 2. Business Overview
2. Business Overview
Slide 12: 2. Business Overview: FY2019 Summary
12 2. Business Overview FY2019 Summary Copyright © LIVESENSE Inc.
Slide 13: FY2019 Summary
FY2019 Summary 13 FY2019 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 improving media value in key businesses and on business selection and concentration. Still, initial t
Slide 14: 2. Business Overview: Looking Back by Business
14 2. Business Overview Looking Back by Business Copyright © LIVESENSE Inc.
Slide 15: Machbaito: Increasing Name Recognition
Machbaito: Increasing Name Recognition 15 Rolled out promotion appealing to user value (“get 10,000 yen”) via YouTube and other media. Name recognition improved as general part-time job posting site where you can get monetary gifts, primarily among young people. Trend in name recognition before and
Slide 16: Machbaito: Improving Earnings Structure
Machbaito: Improving Earnings Structure 16 Progress made on strengthening user inflow foundation by promoting expansion of customer attraction channels and optimization of ad placement. Rate of sales increase improved throughout the year, forming a growth trend. Income also improved. Trend in Machba
Slide 17: Tenshoku Kaigi: Improving Media Value
Tenshoku Kaigi: Improving Media Value 17 Greatly improved quality and quantity of postings and user experience to improve media value. User navigation within site increased. Improvement of • Updated corporate database and improved completeness and information quality accuracy of information • Number
Slide 18: Optimizing Business Portfolio
Optimizing Business Portfolio 18 Business portfolio defined on two axes: Similarity to business model based on customer attraction via search traffic and time until profitability. Business Portfolio Distant Profit-earning New business domain domain Enhancing profitability while Achieving significant
Slide 19: Optimizing Business Portfolio: FY2019 Progress
Optimizing Business Portfolio 19 In existing business domains, Machbaito grew while DOOR Chintai business was transferred. More cash and human resources were secured for business growth. FY2019 Progress Distant Machbaito Profit-earning New business Tenshoku Kaigi domain domain Tenshoku Navi Business
Slide 20: Business Strategy for FY2019 and Progress
Business Strategy for FY2019 and Progress 20 • Increased name recognition with promotions appealing to Mach Bonus and other user value ・Machbaito • Sales up, owing to expansion of ad placements, maintaining advertising efficiency • Shifted orientation from short-term business expansion through sales
Slide 21: 3. FY2020 Policy
3. FY2020 Policy
Slide 22: Company-wide Policy for FY2020
Company-wide Policy for FY2020 22 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 23: Enhancing Profitability of Existing Businesses
Enhancing Profitability of Existing Businesses 23 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 24: Launching New Business
Launching New Business 24 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 25: Optimizing Business Portfolio
Optimizing Business Portfolio 25 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 26: Becoming a Company That Enjoys the Continued Support of Society
Becoming a Company That Enjoys the Continued 26 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 27: Financial Forecasts for FY2020 (First Half)
Financial Forecasts for FY2020 (First Half) 27 Excluding the impact of the DOOR Chintai business transfer, sales will increase driven primarily by Machbaito and Tenshoku Navi. Operating income expected to break even due primarily to prior investment in advertising to expand number of hires in second
Slide 28: LIVESENSE
6 LIVESENSE BIOEKAE, KALKS.
Slide 29: 4. Appendix
4. Appendix
Slide 30: Segments and Core Media
Segments and Core Media 30 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 31: Quarterly Net Sales and Operating Income
Quarterly Net Sales and Operating Income 31 HR Information Media Real Estate Information Media (Millions of JPY) E Commerce Other Businesses Operating Income 1,744 1,775 1,704 1,629 1,567 1,531 1,548 199 1,480 172 242 240 262 237 172 312 1,425 1,426 1,295 1,298 1,284 1,308 1,305 1,215 78 96 58 63 ▲
Slide 32: Quarterly Segment Net Sales and Operating Income - HR Information Media
Quarterly Segment Net Sales and Operating Income 32 -HR Information Media Machbaito Tenshoku Navi Tenshoku Kaigi Other HR Services (Millions of JPY) Operating Income 1,425 1,426 1,295 1,298 1,284 1,308 1,305 1,215 300 252 242 235 305 284 316 254 318 255 259 393 336 353 358 290 691 724 724 618 562 49
Slide 33: Quarterly Segment Net Sales and Operating Income - Real Estate Information Media
Quarterly Segment Net Sales and Operating Income 33 -Real Estate Information Media (Millions of JPY) Net Sales Operating Income 312 262 242 240 237 199 172 172 105 76 76 69 22 28 14 ▲2 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2018 FY2019 Copyright © LIVESENSE Inc.
Slide 34: Quarterly Operating Income - YoY Comparison
Quarterly Operating Income -YoY Comparison 34 (Millions of JPY) 4Q/18 Net Sales Personnel Cost Operating Decrease Decrease income ▲86 +6 96 4Q/19 Ad Cost Operating income Increase ▲38 ▲107 Other Costs Decrease +52 Copyright © LIVESENSE Inc.
Slide 35: Quarterly Operating Expenses
Quarterly Operating Expenses 35 Personnel expenses Advertising costs (Millions of JPY) Others 1,809 1,723 1,665 1,637 1,566 1,519 567 1,471 1,472 476 577 426 410 402 455 384 559 619 512 656 535 610 564 457 629 622 632 558 552 545 553 552 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2018 FY2019 Copyright © LIVESENSE In
Slide 36: Employees
Employees 36 No. of Employees (Consolidated) Breakdown of Full-time Employees Regular/HQ Regular/R (People) Customer Part-time Support Administr Regular/Subsidiaries 3% ation Part-time/Subsidiaries 13% 478 487 Engineers/ 44 45 416 415 408 408 Designers 400 17 16 7 7 7 388 41% 6 Sales 115 118 110 111
Slide 37: Corporate Profile
Corporate Profile 37 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 38: 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