E-seikatsu Co., Ltd. · TSE:3796
E-seikatsu — FY2019 Earnings Presentation
42 slides from E-seikatsu's earnings presentation, May 9, 2019
Slide 1: FY2019 Full-term Results Presentation Material
FY2019 Full-term Results Presentation Material May 9, 2019 e-Seikatsu Co., Ltd. Securities code: 3796 © e-Seikatsu Co.,Ltd.
Slide 2: Table of contents
Table of contents 1. Summary of Full-term Results for FYE March 31, 2019 2. Earnings Forecast and Future Prospects 3. Summary of Recent Business Results 4. Company Overview 1 © e-Seikatsu Co.,Ltd.
Slide 3: 1. Summary of Full-term Results for FYE March 31, 2019
1. Summary of Full-term Results for FYE March 31, 2019 2 © e-Seikatsu Co.,Ltd.
Slide 4: Highlights
Highlights Sales grew, as the efforts for new services bore fruit. ➢ Consolidated sales: 1,984 million yen (FY2018 1,909 million yen, YOY change +74 million yen, +3.9%) ・Cloud Service revenue: 1,857 million yen (FY2018 1,813 million yen, YOY change +44 million yen, +2.4%) ➢ Consolidated operating in
Slide 5: Sales grew as new customers increased, but profit declined due to higher expenses
Sales grew as new customers increased, but profit declined due to the augmentation of expenses. FY2018 FY2019 Unit: Million yen Sales Sales 1,984 1,909 ・Sales grew year on year as new COGS COGS customers increased and the sales 742 784 from multiple projects for entrusted development were posted. Gr
Slide 6: Breakdown of Sales Fluctuation
The increase of new customers of “ES e-Bukken One” contributed to sales growth. Breakdown of Sales Fluctuation Unit: Million yen 2,000 Sales +74（↑） 1,984 +29（↑） +1（↑） Advanced-Cloud Network service Solution 1,950 △11（↓） +52（↑） Non-Turnkey services In this section, the sales of Turnkey services for s
Slide 7: Revenues by product
Revenues by product YOY change Item (Million yen) FY2018 FY2019 YOY change (%) Cloud Service 1,813 1,857 44 2.4％ Turnkey services * 1,755 1,811 56 3.2％ Up-front revenue 46 98 52 113.5％ Monthly recurring revenue 1,709 1,712 3 0.2％ Non-turnkey services * 58 46 △11 △20.4％ Network Solution 33 35 1 3.3％
Slide 8: New service: pocketpost series
Communication platform “ ” App for Occupants Settlement Solution App for Owners New service: “pocketpost” series (Communication app for housing) 7 © e-Seikatsu Co.,Ltd.
Slide 9: Release of pocketpost home, an app for occupants
Release of “pocketpost home,” an app for occupants Occupants To smooth the communication You can quickly check the The notification function will Questions about contracts Customer service between you and a real estate current state of the real prevent you from missing available anywhere management
Slide 10: Release of the settlement solution pocketpost pay
Release of the settlement solution “pocketpost pay” Settlement solution Communication platform for the real estate market ✓ A settlement solution was added to “pocketpost” in Dec. 2018. The business in the real estate market was accelerated. ✓ It can swiftly check whether the settlement procedure ha
Slide 11: Release of pocketpost owner for owners
Release of “pocketpost owner” for owners ✓ Released “pocketpost owner,” a communication app for owners of real estate (for rental) in Dec. 2018. ✓ To smooth communication between owners and real estate management companies ✓ Can be utilized in various communication scenes, including the seeking of o
Slide 12: Launch of online conference cloud ES × MeetingPlaza
Launch of a dedicated online conference cloud “ES × MeetingPlaza” Online conference cloud optimized for online customer services and explanation of important matters by IT in the realty field Released on 2018年6月1日より 販売・提供開始 Jun. 1, 2018 Users can use the system as they want by paying 10,000 yen per
Slide 13: System installation and operation support service
Launch of the system installation and operation support service Delay in registering new customers and buildings Delay in Delay in producing issuing contracts collection plans Delay in updating Delay in payment Delay in Delay in registering cancellation tasks transactions and repairs Delay in wire t
Slide 14: Growth of ES e-Bukken One Rental Management
Growth of “ES e-Bukken One Rental Management,” which is strategically important (Unit: Number of services with payment started) 450 424 ES e-Bukken One Rental Management 400 350 300 250 200 150 100 50 0 Dec. 2016 Sep. 2013 Dec. 2013 Mar. 2014 Sep. 2014 Dec. 2014 Mar. 2015 Sep. 2015 Dec. 2015 Mar. 20
Slide 15: Steady growth of all services of ES e-Bukken One
Steady growth of all services of “ES e-Bukken One” Transition of Number of Licenses by Service (Unit: Number of services with payment started) 1000 One Rental Property (Leasing Management) 990 900 One Rental Management 910 One Sales 800 One Website 700 600 500 424 400 410 300 200 100 0 May 2017 Dec.
Slide 16: New customers are increasing more rapidly
New customers are increasing more rapidly. 1,450 Transition of Number of Companies Using Our Services 1,415 Companies 1,406 1,400 1,375 1,356 1,350 1,266 companies 1,328 1,336 1,307 1,300 1,297 1,294 1,290 1,291 1,292 1,290 1,292 1,293 1,289 1,291 1,300 1,275 1,273 1,280 1,284 1,284 1,277 1,272 1,27
Slide 17: Customer retention rate is stable, and termination rate is being minimized
Customer retention rate is stable, and termination rate is being minimized. Transition of Termination Rate 4.00% Termination rate (company) 3.00% 2.00% 1.70% 1.47% 1.32% 1.11% 1.00% 1.16% 1.07% 0.93% 0.83% 0.82% 0.87% 0.78% 0.71% 0.57% 0.00% Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 2018 2
Slide 18: While expanding the number of service users, we kept Monthly ARPU
While expanding the number of service users, we kept Monthly ARPU. Transition of Monthly ARPU Unit: yen 150,000 Monthly ARPU/company 140,000 130,000 126,600 124,500 125,000 124,900 124,800 124,100 123,700 122,900 123,400 123,000 121,800 121,800 120,700 118,500 117,500 118,800 118,200 116,300 120,000
Slide 19: EBITDA was about 450 million yen
EBITDA was about 450 million yen. Transition of EBITDA Unit: Million yen Unit: % 240 80.0 EBITDA 210 EBITDA Margin 70.0 180 60.0 165 167 160 146 144 150 150 140 139 50.0 131 127 117 121 120 111 108 40.0 33.5 33.4 31.7 100 30.3 29.2 28.7 30.2 88 90 25.6 26.5 26.4 25.9 30.0 21.9 23.7 22.6 24.3 19.2 60
Slide 20: Operating CF rose from the previous term, and investment in service development increased
Operating CF rose from the previous term, and investment in service development increased. Cash Flow Statement FY2018 FY2019 Corporate income tax, Corporate etc. △5 Other 40 income tax, Unit: Million yen etc. △72 Other 32 Operating CF Income Income Investing CF before Investing before Investing tax
Slide 21: The dividend remains 5 yen/share
The dividend remains 5 yen/share. We conducted both investment and return of profits to shareholders. Information per share Total dividend Unit: yen Unit: Million yen 45 180.0% 180 162.6% 40 Net income per share 160.0% 160 Net income Dividend per share Total dividend 35 Payout ratio 140.0% 140 30 12
Slide 22: 2. Earnings Forecast and Future Prospects
2. Earnings Forecast and Future Prospects 21 © e-Seikatsu Co.,Ltd.
Slide 23: Points of earnings forecast for FY2020
Points of earnings forecast for FY2020 Revenue, Cost, Profit, Dividend ➢ Sales are estimated to increase to 2,100 million yen, an increase of 115 million yen from 1,984 million yen in the previous term, thanks to the growth of revenue from monthly fees of “ES e-Bukken One,” the expansion of sales of
Slide 24: Sales and profit are estimated to increase, growing our business steadily
Sales and profit are estimated to increase, growing our business steadily. Full-term Full-term (million yen) YOY change Results Forecast YOY change (%) FY2019 FY2020 Sales 1,984 2,100 115 5.8％ Operating income 13 40 27 211.2％ Recurring income 13 39 26 205.5％ Net Income △3 12 16 ー Dividend per share
Slide 25: Revenue forecast: Sales estimated to rise through continuous growth of cloud services
Revenue forecast: Sales estimated to rise through the continuous growth of cloud services Unit: Million yen Change in Revenue Forecast Breakdown 2,200 Estimated sales +49（↑） +85（↑） △10（↓） △8（↓） Cloud, etc. 2,100 Turnkey services 2,100 (Monthly recurring Turnkey services Non-Turnkey revenue) (Up-fron
Slide 26: Revenue forecast breakdown
Revenue forecast breakdown Item (Unit: million yen) FY2019 FY2020 YOY change YOY change (%) Cloud Service 1,857 1,924 66 3.6％ Turnkey services * 1,811 1,886 74 4.1％ Up-front revenue 98 88 △10 △10.7％ Monthly recurring revenue 1,712 1,797 85 5.0％ Non-turnkey services * 46 38 △8 △18.3％ Cloud, etc. 126
Slide 27: Investment for growth based on stable cash flow
Investment for growth based on stable cash flow Depreciation Investment in office equipment, etc. Investment in system development (in-house development) Acquisition through lease Purchase of HW/SW Actual Actual Actual Forecast Investment amount Depreciation Investment Depreciation Depreciation Inve
Slide 28: Outlook for future service developments
Outlook for future service developments 2019 2020 2021 2022 2023 Response to the legal system for “Explanation of Important Matters by IT,” etc. and the changes in the external environment Provision of services for the use of IT in a series of processes for real estate transactions, such as inquiry,
Slide 29: To become the Best Real Estate Tech company in Japan
To become the Best “Real Estate Tech” company in Japan Target Index ➢ Number of clients 5,000 companies ➢ Monthly ARPU more than ¥100,000 ➢ Gross profit margin on Cloud Service more than 70％ Expand and grow our client base To keep increasing clients by evolving services and enriching the systems for
Slide 30: 3. Summary of Recent Business Results
3. Summary of Recent Business Results 29 © e-Seikatsu Co.,Ltd.
Slide 31: The sales of cloud services hit a record high on a quarterly basis
The sales of cloud services hit a record high on a quarterly basis. Unit: Million yen Transition of Sales by Item Cloud Service Network Solution A-Cloud Service 600 538 501 493 504 490 496 495 484 471 461 482 500 500 481 492 458 39 457 22 15 21 12 15 8 13 15 23 20 23 9 8 9 8 8 9 8 10 6 20 8 7 8 7 8
Slide 32: Shift from investment for new business to the profit earning phase
Shift from the investment for developing new business to the profit earning phase Transition of Operating Income Unit: Million yen Operating Income Unit: % Gross Profit Margin 100 100.0 Operating Income Margin 80 80.0 63.0 64.6 63.9 62.8 63.8 64.9 62.3 63.4 61.3 60.3 61.2 61.8 57.9 59.3 62.3 59.9 60
Slide 33: Total expenses are under control
Total expenses are under control (COGS) Personnel expenses (COGS) Outsourcing expenses (Consolidated) COGS (COGS) System management and depreciation expenses Unit: Million yen (COGS) Other expenses Unit: % 500 (COGS) Asset transfer 50% COGS rate 400 40% 42.1% 40.7% 40.1% 37.0% 35.4% 36.1% 37.2% 36.3
Slide 34: Financially sound
Financially sound Consolidated Balance Sheet YOY Comparison As of the end of March, 2018 Unit: Million yen As of the end of March, 2019 Current ratio Current ratio 238.9％ 204.5％ Current Liabilities 295 Current Liabilities 327 Current Assets Non-Current Liabilities 102 Current Assets 705 669 Non-Curr
Slide 35: Number of Employees
Division Unit: Employees WSDG Sales & Sales Planning Corp. Business operation support 200 180 168 165 161 161 155 160 148 146 148 148 15 14 8 7 Business operation support 6 14 3.9% 140 134 12 11 13 14 13 14 Corp. 9.0% 13 120 81 82 100 72 73 74 72 78 74 73 WSDG 67 40.6% 80 60 Sales & Sales Planning 4
Slide 36: 4. Company Overview
4. Company Overview 35 © e-Seikatsu Co.,Ltd.
Slide 37: Mission and Vision
Mission and Vision Mission To create a market with high degree of satisfaction and reliability for all participants by enhancing the transparency of the market. Vision To become an essential integral information infrastructure for the real estate market, where a variety of information on real estate
Slide 38: Outline of our services
Outline of our services Solutions for communication, IT-based explanation [End users] of important matters, electronic contracts, settlement, etc. Real estate owners Function/system Services Client real estate companies Owners Planning and development of services Rental Those who want to Property se
Slide 39: What e-Seikatsu aims for
What e-Seikatsu aims for We are promoting the utilization of IT in a series of processes for real estate transactions, including search, preview, explanation of important matters, conclusion of a contract, and payment. IT-based IT-based Explanation of Explanation of Web-based VR-based Important Impo
Slide 40: Competitive advantage of e-Seikatsu
Competitive advantage of e-Seikatsu Specialize in the field of real estate, and offer “indispensable” cloud systems Our development staff who are versed in real estate businesses develop systems (accumulating know-how). Swift cycle of “grasping needs → planning → development → release” Direct sales
Slide 41: Company Profile
Company Profile Established : January 21, 2000 Paid-in capital : 628,411,540 yen (As of the end of March 2019) Listing : Second Section of the Tokyo Stock Exchange (Code: 3796) MUFG Bank, Ltd., Mizuho Bank, Ltd., Resona Bank, Ltd., Relationship Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Tr
Slide 42: Technology × Real Estate Field
Technology × Real Estate Field e-Seikatsu is a “Real estate tech” company that aims to realize a better real estate market by technology. Statements made at the meeting or included in this document that are not historical facts are forward looking statements about the future performance of e-Seikats