Bengo4.com, Inc. · TSE:6027
Bengo4.com — Q2 FY3/2025 Earnings Presentation
69 slides from Bengo4.com's earnings presentation, Nov 13, 2024
Slide 1: FY3/2025 Q2 Results
FY3/2025 Q2 RESULTS Bengo4.com,Inc. Nov. 13, 2024
Slide 2: 目次
目次 01 FY3/2025 Q2 Results P. 3−8 02 Business Overview P. 9−29 03 Appendix P. 30−68 1
Slide 3: Vision and Mission
VISION・MISSION VISION Drive a paradigm shift for the better world. Be the Professional-Tech Company. MISSION Do what only professionals can do. Contribute to society using expert knowledge and technologies. 2
Slide 4: FY3/2025 Q2 Results
© Bengo4.com, Inc. 2024 FY3/ omwamnm (DS Q2
Slide 5: Topics for FY3/2025 1H
Topics for FY3/2025 1H Net sales increased 35.3% YoY. EBITDA rose 19.9 % YoY. Net Sales 6,691 Mil. JPY ー + 35.3 %（YoY） EBITDA 919 Mil. JPY ー + 19.9 %（YoY） Operating Profit 545 Mil. JPY ー - 0.9 %（YoY） Ordinary Profit 563 Mil. JPY ー + 1.3 %（YoY） Net Profit 339 Mil. JPY ー + 0.5 %（YoY） *EBITDA = Operati
Slide 6: Quarterly trend of Net Sales
Quarterly trend of Net Sales In Q2, net sales, particularly CloudSign sales, rose. Expect to see an acceleration in revenue growth in 2H due to price revisions at CloudSign and Bengoshi.com, as well as the postponement of conference sales. Sales of Business Lawyers 3,394 Library were strong. 3,302 3
Slide 7: Quarterly trend in ARR
Quarterly trend in ARR Company-wide ARR was 11.2 billion yen, up 38.3% YoY. YoY ARR CloudSign ARR increased by 330 million yen QoQ. Recurring business is accumulating steadily. 38.3% ＋ 11.2 Bengoshi.com and others ＋61.3% Bil. JPY CloudSign ＋25.7% （Bil.Y︎en） 12.0 Bengoshi.com and others 10.66 10.76 C
Slide 8: Quarterly trend of SGA
Quarterly trend of SGA In Q2, SG&A expenses increased, primarily in personnel expenses, due to the number of hires exceeded the plan. In Q3, advertise expenses are expected to increase due to the concentration of exhibitions, etc., although a pause in the increase in costs is expected. （Mil.Yen） Per
Slide 9: Quarterly trend in Operating Profits
Quarterly trend in Operating Profits Operating profit and EBITDA for Q2 stood at 263 million yen and 435 million yen respectively. Operating profit and operating profit ratio are expected to increase toward Q4 as the pace of revenue growth accelerates in 2H. （Mil.Yen） 400 395 35.0% 379 Operating Pro
Slide 10: Business Overview
Business Overview © Bengo4.com, Inc. 2024
Slide 11: CloudSign
CLOUDSIGN 10
Slide 12: Trend in Net Sales
Trend in Net Sales Q2 net sales reached 1.67 billion yen. Recurring sales were solid, up 28.2% Y︎oY︎. Users using the old fee system will be unified with the current fee structure from December onward. The effect of increasing sales was 120 million yen in ARR. Sales E-co ntract market Trend in net s
Slide 13: Trend in the number of contracts
Trend in the number of contracts （The number of contracts sent bearing an electronic signature and a timestamp） The number of contracts sent increased steadily, surpassing 2.38 million in the quarter. Despite a temporary slowdown due to the impact of the Obon holiday period, it recovered to +30% YoY
Slide 14: CloudSign introduction in different industries
CloudSign introduction in different industries The introduction of CloudSign continued to accelerate, especially among large companies and local governments. Banks, securities, insurance and other financials IT services, information, telecommunications, human resources and media Construction / Real
Slide 15: Status of Introduction by Local Governments
Status of Introduction by Local Governments Of 364 local governments that have introduced electronic contracts, 245 local governments (approx. 70%) * have introduced CloudSign. We have expanded the number of municipalities introducing the system while maintaining market share. Prefectures Local gove
Slide 16: Bengoshi.com
BENGOSHI.COM a | © Bengo4.com, Inc. 2024
Slide 17: Trend in the number of visitors
Trend in the number of visitors In terms of the number of monthly site visitors, despite the volatility of Bengoshi.com news, access to the lawyer search page is improving, and the number of paying registered lawyers for customer attraction services is in an increasing trend. Trend in the number of
Slide 18: Trend in Net Sales
Trend in Net Sales Customer attraction support services are in a recovering trend, and sales of business process support services are in an upward trend due to the start of cross-selling of Hanreihisho and Bengoshi.com LIBRARY. Sales decreased QoQ due to the volatility of Bengoshi.com Career. ■ Beng
Slide 19: Trend in the Number of Registered Lawyers
Trend in the Number of Registered Lawyers The number of registered lawyers reached 28,277,accounting for a 62% share of lawyers in Japan. The number of paying registered lawyers is 14,479, and ARPPU is also in a rising trend due to cross-selling of Bengoshi.com LIBRARY to Hanreihisho users. Trends i
Slide 20: Promotion of Sales Collaboration in Products for Lawyers
Promotion of Sales Collaboration in Products for Lawyers In the domain of services for lawyers, promoted group collaboration with Bengoshi.com, Hanreihisho, and BengoKakumei. Collaboration between Hanreihisho and Bengoshi.com LIBRARY︎ feels positive, and cross-selling is progressing well. 4,400 lawy
Slide 21: Legal Brain Development Strategy
Legal Brain Development Strategy Database Lawyer of legal database precedents Judge Secret database Leagal Legal DB Public consultation Prosecutor Q&A database Legal profes sion Contract book database database Strengthen development M&A also utilized capabilities by hiring engineers, to acquire lega
Slide 22: What we hope to accomplish through Legal Brain
What we hope to accomplish through Legal Brain Focus Practical services area for lawyers LAWYER Focus Professional services area for companies ENTERPRISE LEGAL BRAIN Free consultation available to anyone, GENERAL 24 hours a day, 7 days a week Empowering Japanese society through legal services as "Ja
Slide 23: Legal Brain-equipped products progressing smoothly for PMF
Legal Brain-equipped products progressing smoothly for PMF We have introduced products to the legal departments of major financial institutions, large corporations, and law firms handling mainly corporate legal affairs. Through repeated feedback, Legal Brain has achieved highly accurate identificati
Slide 24: Future Policy on LaaS
Future Policy on LaaS We will strengthen collaboration over the sales and marketing function in the BtoB domain. We will use each user assets and data asset to increase the speed of growth. Compliance In-House Checks Legal Document Consultation creation FAQs All our paying companies Education and tr
Slide 25: Zeirishi.com
a%e > ZEIRISHI.COM sd
Slide 26: Zeirishi.com
Zeirishi.com Japan’s largest tax consultation portal site which has 641k visitors/month. 1. Tax Accountant introduction service Provide introduction service by experienced tax coordinators. They choose the best one for client from among 6,792 registered tax accountants. 2. Tax consultation service P
Slide 27: Trend in net sales
Trend in net sales Aggressive marketing investments, such as web advertising, are increasing our positioning in the industry by the day. Sales grew significantly, increasing 29.8% YoY. YoY Trend in net sales ＋ 29.8% 322 329 （Mil.Yen） 312 293 300 253 233 224 210 182 174 173 153 154 150 135 138 137 12
Slide 28: Business Lawyers
BUSINESS LAWY © Bengo4.com, Inc. 2024 27
Slide 29: Business Lawyers
Business Lawyers Japan’s largest Corporate legal portal site which has 467k visitors/month. 1. Registered lawyers The lawyer who works in Nishimura & Asahi, Mori Hamada & Matsumoto, Nagashima Ohno & Tsunematsu, Anderson Mori & Tomotsune, TMI etc. 2. “Business Lawyers Library” Browse practical books
Slide 30: Business Lawyers Library also grows steadily
Business Lawyers Library also grows steadily The number of Business Lawyers users steadily increases. The number of companies using "Business Lawyers Library”, a service that provides access to legal books and magazines, currently exceeds 1,800. Trend in the users （monthly) Number of companies that
Slide 31: Appendix
Appendix 30
Slide 32: Summary for FY3/2025 Q2
Summary for FY3/2025 Q2 Net sales increased 32.9% Y︎oY︎. （Mil.Yen） FY︎3/2025 Q2 FY3/2024 Q2 FY3/2025 Q1 YoY QoQ Actual Actual Actual Net Sales 3,394 2,553 +32.9% 3,297 +2.9% CoGS 816 472 +72.9% 760 +7.4% Gross Profit 2,577 2,080 +23.9% 2,537 +1.6% SGA 2,313 1,776 +30.2% 2,254 +2.6% EBITDA 435 420 +3
Slide 33: Balance sheet
Balance sheet Net assets increased 291 million yen due to higher retained earnings. (Mil. Y︎en) FY3/2025 Q2 FY3/2025 Q1 QoQ Current Assets 5,761 5,584 +177 Cash and equivalents 3,492 3,327 +164 Fixed Assets 4,675 4,651 +23 Total Assets 10,437 10,235 +201 Current Liabilities 2,870 2,831 +38 Fixed Lia
Slide 34: Corporate Profile
Corporate Profile Name Bengo4.com, Inc. Place 4-1-4 Roppongi, Minato-ku, Tokyo Date of 4th Jul., 2005 establishment Representative Taichiro Motoe Director Consolidated: 576, Employees Non-consolidated: 549 (As of Sep 30, 2024) Group LIC CO., Ltd and EOC.com Co., Ltd. companies 33
Slide 35: Vision and Mission
VISION・MISSION VISION Drive a paradigm shift for the better world. Be the Professional-Tech Company. MISSION Do what only professionals can do. Contribute to society using professional knowledge and technologies. 34
Slide 36: Board Members
Board Members Representative Director, President and CEO Outside Director Taichiro Motoe Fumihiko Ishimaru Joined Anderson Mori & Tomotsune Foreign Law Joint Enterprise Representative Director of Accord Ventures, Inc. and subsequently founded Authense Law Office. Former executive officer of Digital
Slide 37: Corporate History
Corporate History AI business Bengo Kakumei Inc., a Provider of Digital Case 2024 Recordkeeping Tools for Lawyers, Joined the Group Announced Legal Brain Initiative Released Bengoshi.com AI chat legal consultation Released CloudSign Review 2023 Released Bengoshi.com LIBRARY AI Assistant LIC CO., Ltd
Slide 38: Bengoshi.com
BENGOSHI.COM Bengoshi means lawyer 37
Slide 39: Social background of legal consulting services in Japan
Social background of legal consulting services in Japan 16.16 Million people had troubles / disputes over legal matters in a year. Only 26.7% of these people sought Lawyer’s advices. Reasons why they hesitated to ask professional’s help were: Concerns over professional fees 38.9%; / It’s a too minor
Slide 40: Background of lawyer's business in Japan
Background of lawyer’s business in Japan Environments of lawyer’s business has been changing rapidly since the judicial system reform in 2000, such as lifting of ban on advertisements, liberalization of fees, and new bar examination, which was meant to increase number of lawyers in Japan. Number of
Slide 41: Market Environment of the Legal Services Industry in Japan
Market Environment of the Legal Services Industry in Japan The legal services industry has been growing since 2000 due to progress in the development of new customers, as marketing needs for lawyers grow together with the increase in the actual number of lawyers. Legal services market size 25.6 mill
Slide 42: Value proposition of Bengoshi.com
Value proposition of Bengoshi.com An web-based platform for consumers and lawyers, to realize “familiar legal service”. Provides information and services about free legal consulting and detailed information about lawyers for consumers. Consumers Lawyers ・Hesitate to seek Want to reach out to ・Suppor
Slide 43: Why Bengoshi.com?
Why Bengoshi.com? The largest free legal consultation portal in Japan which has 8.99M visitors/month.* 1. Because the lawyer offers user legal advice for free on the internet service • The outstanding database which has over 1,388k records of consulting cases* 2. Because it has a substantial databas
Slide 44: Services of Bengoshi.com provides
Services of Bengoshi.com provides Provides each kind of contents according to seriousness of issues users have. Targets Contents provided Benefit for users Consumers who have urgent Users can search for the most appropriate “List of lawyers” matters and are willing to seek lawyer for free thanks to
Slide 45: Overview of marketing support service for lawyers
Overview of “marketing support service for lawyers” A marketing support service for lawyers, which helps them acquire clients • The number of visitors to the site has exceeded 10 million. • Acquiring potential clients efficiently based on the focus area of each lawyer Price 20,000 yen or more per mo
Slide 46: Overview of research support service for lawyers
Overview of “research support service for lawyers” Making lawyer book research more comfortable. • Monthly subscription service for law books • "Book browsing" "research service" functions can be used while working from home Price 9,000yen per month Number of books Over 2,500 books Participating pub
Slide 47: Overview of Services for Lawyers (Research Support)
Overview of Services for Lawyers (Research Support) Precedents database with by far the largest share in the industry • The usage rate of the precedents search service by lawyers is 95%. • Hanreihisho in particular is used by all judges and prosecutors, and is the dominant service among the three el
Slide 48: Overview of Services for Lawyers (Business Support)
Overview of Services for Lawyers (Business Support) Digital document organization tool developed by lawyers for lawyers • It supports transition of lawyers’ practice style to one that makes efficient use of digitalized documents. • It harnesses the power of digital technologies to make lawyers stron
Slide 49: Overview of paid services for individual
Overview of “paid services for individual” Paying users can read all answers posted by lawyers about topics on the consulting board for 500 yen per month (excluding tax). What paid users can see Trend of the number of paid users （users） 200,000 100,000 Answers by lawyers are available only for paid
Slide 50: Growth Cycle of Bengoshi.com
Growth Cycle of — Bengoshi.com Increased DB draws more visitors, which stimulates new registration of lawyers who seek to reach out expanded number of users. Lawyer’s action Databases grow Advice for consumers Counselling Register to the website Lawyer list Lawyers Consumers Consumer’s action Visit
Slide 51: CloudSign
CLOUDSIGN 50
Slide 52: Overview of CloudSign
Overview of CloudSign Cloud-based e-contracting service from contract conclusion to contract management. Upload a completed contract that has been negotiated and approved by the other party, and the contract is concluded. The recipient of the document does not need to be registered with CloudSign. U
Slide 53: Usage Image
Usage Image Sender Upload PDF documents Enter Destination Document preparation Send Receiver Sender・Receiver Receive by mail Contract confirmation Final step after conclusion of agreement and agreement The signed documents will be automatically e-mailed to the sender and receiver. (It is automatical
Slide 54: Documents used for CloudSign (examples)
Documents used for CloudSign (examples) Human Resources Sales Leases Employment contract Sales Contract Building Lease Agreement Working conditions notice Land purchase agreement Land Lease Agreement Offer of employment Building Sales Contract Parking Lot Rental Agreement Employment agreement Real e
Slide 55: Benefits of CloudSign
Benefits of CloudSign Speed up process Reduce cost Strengthening of compliance With CloudSign, contract signing Shipping cost, paper cost,printer No more losing/missing paper or process will be shorten by 1-2 ink cost, and stamp tax will no altering of contract. weeks, which boosts up upside of long
Slide 56: Price of CloudSign
Price of CloudSign Free Light Corporate Enterprise Fixed fee：0 JPY/Month Fixed fee：10,000 JPY/Mo nth Fixed fee：28,000 JPY/Mo nth Fixed fee：To be inquired Pay- per-use：0 JPY/Month Pay- per-use：200 JPY︎/Sending Pay- per-use：200 JPY/Sending Pay- per-use：200 JPY/Sending Plan contents Plan contents Plan
Slide 57: Why CloudSign?
Why CloudSign? 1. Cloud contracting service offered by Bengoshi.com • Our Company, which has a deep understanding and knowledge of Japanese law, provides legally reliable products under the supervision of a lawyer. 2. Product development in line with Japanese business practices • In order to expand
Slide 58: CloudSign services
CloudSign services Conclusion of Automatic a contract conversion to data AI Contract CloudSign scan Management It facilitates contract management operations with AI, It handles the process from scanning contract which automatically identifies the counterparty to documents to storing documents and th
Slide 59: Business Lawyers
BUSINESS LAWY © Bengo4.com, Inc. 2024
Slide 60: Business Lawyers Library fee structure
Business Lawyers Library fee structure Business Lawyers Library, an all-you-can-read book service for corporate legal affairs. Light plan Standard plan Enterprise plan The plan enables an individual to conduct A standard plan that includes education he plan includes compliance training minimum resea
Slide 61: Status of introduction of Business Lawyers Library
Status of introduction of “ BUSINESS LAWYERS LIBRARY ” From the website of "BUSINESS LAWY︎ERS LIBRARY︎” The service is used by mainly leading law offices and large companies. https://www.businesslawyers.jp/lib/about 60
Slide 62: Advertisement on the websites
Advertisement on the websites Advertising sales on the "Bengoshi.com" and "Zeirishi.com" websites, as well as advertising sales associated with the Business Lawyers conference. Website Conference Advetisements 61
Slide 63: Sustainability
© Bengo4.com, Inc. 2024 62
Slide 64: Basic Policy on Sustainability
Basic Policy on Sustainability Going forward, we will work together with all stakeholders Three Viewpoints to drive the creation of a sustainable society, by facing the resolution of social issues from three perspectives, and empowering society. 01 For General 02 For Professional 03 For Enterprise G
Slide 65: Material Issue Map
Material Issue Map Importance to society Access to and use of expert knowledge Response to Information security climate change and protection of privacy Advancing DX services and improving productivity Strengthening corporate Diversity and governance inclusion Training and creation of IT Corporate e
Slide 66: Risk Information
RISK INFORMATION 65
Slide 67: Risk Information 1
Risk Information1_ Risks identified that could have a significant impact on future growth Degree of Item Major Risks Possibility/Timing Countermeasure Influence Althoug h o ur business area s are Media business a nd IT/Solutions b usin ess, Low/ Responding to ch anges in the Bus iness Environment if
Slide 68: Risk Information 2
Risk Information 2_ Risks identified as having the potential to materially impact future growth Degree of Item Major Risks Possibility/Timing Countermeasure Influence We will use a var iety of re cru iting Low/ methods to secure ta lented human As we expand ou r b usin ess in the future, we will n e
Slide 69: Warning
＜WARNING＞ This document is meant for explaining the company’s business itself and doesn’t mean any inducement or persuasion for buying stocks or/and bonds of the company. This document include descriptions about prospects for future which are based on information available as of today, and actual si