Slide 1: FY2017 Financial Results
FY2017 Financial Results February 14, 2018 L i v e s e ns e I n c . (TSE1: 6054) Copyright© Livesense Inc. 1
Slide 2: Agenda
Agenda Financial Results FY2018 Initiatives and Financial Forecast Appendix Copyright© Livesense Inc. 2
Slide 3: 1. Financial Results
1. Financial Results Copyright© Livesense Inc. 3
Slide 4: Full Year Executive Summary
Full Year Executive Summary Net sales increased in all segments. Up 18.3% YoY. Operating income decreased 56.9% YoY due to investment in mid-to-long-term growth. Net Sales ¥6,350 million ( YoY +¥984 million +18.3%) Operating ¥222 million ( YoY -¥293 million -56.9%) income Sales increased with progre
Slide 5: Full Year Financial Results Overview
Full Year Financial Results Overview (Millions of JPY) FY2016 FY2017 YoY Net Sales 5,366 6,350 +18.3% Operating Income 515 222 ▲56.9% Operating Margin(%) 9.6% 3.5% ▲6.1pt Ordinary Income 574 457 ▲20.4% Net income 28 306 +980.5% Copyright© Livesense Inc. 5
Slide 6: Full Year Company-wide Summary
Full Year Company-wide Summary FY2017 Policy: Establish strength (competitive advantage) to create “the next common” as part of our corporate vision “Invent the next common” Business value, providing source of competitiveness, and business direction clarified in the aim of establishing a competitive
Slide 7: Full Year Summary by Business: Human Resources
Full Year Summary by Business • Jobsense renamed Machbaito and site renewed. At same time, user experience improved by making “right away” service concept, and name ・Machbaito recognition increased through video advertising • Steady progress on increasing job postings and improving accuracy of match
Slide 8: Full Year Summary by Business: Information, EC
Full Year Summary by Business • Accelerated the site improvement cycle, improved KPIs and accumulated know-how Information Real Estate • Sales and profits both favorable due to expansion of customer attraction ・DOOR Chintai through increased DOOR Chintai property listings and advertising ・IESHIL • “
Slide 9: Full Year Net Sales and Operating Income
Full Year Net Sales and Operating Income Sales up in all segments. Consolidated net sales grew 18.3% YoY. Growth investment prioritized over accumulating profits. Operating income remained at low level. (Millions of JPY) Total Other Businesses Operating Income 6,351 E Commerce Real Estate Informatio
Slide 10: Segment Net Sales and Operating Income - HR Information Media
Full Year Segment Net Sales and Operating Income -HR Information Media Tenshoku Kaigi showed 24.3% growth YoY. Machbaito sales remained flat with prioritization of re-branding and improvement of user experience. Operating income down 22.8% YoY due primarily to increase in advertising costs. (Million
Slide 11: Segment Net Sales and Operating Income - Real Estate Information Media
Full Year Segment Net Sales and Operating Income -Real Estate Information Media Both Sales and profits up substantially owing to expansion of customer attraction through increase in number of DOOR Chintai property listings and advertising. Monetization progressed with IESHIL. Expansion of the servic
Slide 12: Segment Net Sales and Operating Income - E-Commerce
Full Year Segment Net Sales and Operating Income -E-Commerce Web marketing knowledge sharing with waja progressed. Sales and profits successfully increased with introduction of optional services. (Millions of JPY) Net Sales Operation Income 2 ▲ 38 ▲ 58 577 439 218 FY2015 FY2016 FY2017 FY2015 FY2016
Slide 13: Full Year Operating Income - YoY Comparison
Full Year Operating Income -YoY Comparison Net sales increasing steadily. Advertising costs up due to investments in web advertising and renewal to Machbaito, resulting in decreased profits. (Millions of JPY) Personnel Cost Increase -335 Net Sales Increase +984 Ad Cost Increase -714 FY2017 Other Cos
Slide 14: Full Year Operating Expenses
Full Year Operating Expenses Personnel costs up 16.2% YoY due to increase in new graduates and other full-time employees. Advertising costs up 63.2% YoY due to reinforced web advertising, website renewal, etc. Personnel expenses (Millions of JPY) Advertising costs Depreciation and amortization 6,128
Slide 15: 2. FY2018 Initiatives and Financial Forecast
2. FY2018 Initiatives and Financial Forecast Copyright© Livesense Inc. 15
Slide 16: Segments and Core Media
Segments and Core Media Success fee-based part-time job posting site Human Resources Success fee-based full-time job posting site Employer review Site New graduate employment support service Success fee-based real estate posting site Estate Real Real estate information service Overseas fashion EC si
Slide 17: Management Approach for FY2018
Management Approach for FY2018 Policy Establish strength (competitive advantage) to create “the next common” as part of our corporate vision “Invent the next common” Machbaito re-branding, establishment of two joint ventures and other initiatives implemented in FY2017 Focus will continue to be on es
Slide 18: What is Real Data Engineering? (1/2)
What is Real Data Engineering? (1/2) 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 Rate of joining Acceptance rate Search volume Click rate Application rate company Com
Slide 19: What is Real Data Engineering? (2/2)
What is Real Data Engineering? (2/2) Reflect designed and collected real data in services to improve user experience. Promote creation of value from data using proprietary analytics and machine learning platforms. Services Data Online data Real data Promote User / v alue Collection/analysis platform
Slide 20: FY2018 Initiatives: Key Businesses
FY2018 Initiatives: Key Businesses Immediate key businesses are Machbaito, which accounts for large proportion of sales, and Tenshoku Kaigi, which has high potential of growth. Aim for Machbaito is improved recognition after re-branding, and aim for Tenshoku Kaigi is increased sales through expansio
Slide 21: FY2018 Initiatives: Machbaito
FY2018 Initiatives: Machbaito FY2017 plan is going well. Continue investing in promotions to raise recognition. Release “Singularity Dilution Diagnosis” content as first part. Copyright© Livesense Inc. 21
Slide 22: FY2018 Initiatives: Machbaito
FY2018 Initiatives: Machbaito Continue improving matching accuracy by increasing number of postings, etc. Work to improve user experience with “right away” as service concept, promote differentiation of experience by improving user experience/functions. Part-time Job Postings 200,000 150,000 100,000
Slide 23: FY2018 Initiatives: Tenshoku Kaigi
FY2018 Initiatives: Tenshoku Kaigi Focus on expansion of Tenshoku Kaigi BUSINESS through LIVESENSE CONNECT. Promote shift of value from “site where user check reviews” to “site where user choose a new job that fits user based on reviews.” Screenshot Copyright© Livesense Inc. 23
Slide 24: FY2018 Initiatives: Data Technology
FY2018 Initiatives: Data Technology Launch development of proprietary machine learning platform (LIVESENSE Brain). Work to accelerate introduction of machine learning in each service and enhance functionality by standardizing machine learning infrastructure and algorithms. Optimize service using rea
Slide 25: FY2018 Initiatives: Tie-ups with Outside Partners
FY2018 Initiatives: Tie-ups with Outside Partners Accelerate growth enlisting outside support such as joint ventures at some functions • With Tenshoku Kaigi, aim to improve user • With IESHIL, provide face-to-face consultation experience through shift to career service and services in addition to on
Slide 26: Business Strategy for FY2018
Business Strategy for FY2018 • Promote improved user experience by making “right away” service concept ・Machbaito • Continue investing in promotions to expand name recognition Human Resources • Aim to expand Tenshoku Navi profits by refining operations and advertising management ・Tenshoku Navi • Wit
Slide 27: Business Strategy for FY2018
Business Strategy for FY2018 ・waja • Enhance fulfillment system and develop system for future expansion (consolidated of scale EC subsidiary) • Strengthen customer attraction through web marketing その他 • Train product managers through launch of small-scale media ・New • Aim to expand use of services a
Slide 28: Financial Forecasts for First Half of FY2018
Financial Forecasts for First Half of FY2018 Sales will increase 12.6% to ¥3,500 million, primarily due to growth of Tenshoku Kaigi. Operating loss expected as result of continued investments in mid-to- long-term growth. 1H/18 1H/17 YoY (Forecast) (Results) Net Sales 3,500 3,108 +12.6% Operating Inc
Slide 29: Invent the next common
Invent the next common Copyright© Livesense Inc. 29
Slide 30: 3. Appendix
3. Appendix Copyright© Livesense Inc. 30
Slide 31: Net Sales and Operating Income
Net Sales and Operating Income (Millions of JPY) HR Information Media 1,714 Real Estate Information Media 1,630 1,611 E Commerce Other Businesses 148 Operating Income 1,394 160 1,377 1,363 132 1,341 109 1,284 164 148 107 101 110 135 119 40 49 56 121 89 1,382 1,201 1,234 1,253 1,142 1,147 1,052 1,071
Slide 32: Segment Net Sales and Operating Income - HR Information Media
Segment Net Sales and Operating Income -HR Information Media Machbaito Tenshoku Navi (Millions of JPY) Tenshoku Kaigi Other HR Services 1,382 Operating Income 1,234 1,253 1,201 1,142 1,147 1,071 289 1,052 206 270 283 212 230 212 227 394 357 343 324 347 388 306 297 612 640 509 551 556 553 546 423 476
Slide 33: Segment Net Sales and Operating Income - Real Estate Information Media
Segment Net Sales and Operating Income -Real Estate Information Media (Millions of JPY) Net Sales Operating Income 164 148 121 109 89 49 56 40 45 30 30 6 5 ▲ 21 ▲ 14 ▲ 31 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2016 FY2017 Copyright© Livesense Inc. 33
Slide 34: Segment Net Sales and Operating Income - E-Commerce
Segment Net Sales and Operating Income -E-Commerce (Millions of JPY) Net Sales Operating Income 160 148 135 132 119 107 110 101 3 5 3 ▲ 10 ▲4 ▲ 10 ▲ 19 ▲ 23 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2016 FY2017 Copyright© Livesense Inc. 34
Slide 35: Operating Income - YoY Comparison
Operating Income - YoY Comparison (Millions of JPY) Personnel Cost Increase -59 Net Sales Increase +248 Ad Cost Increase -237 4Q/16 Operating 4Q/17 Other Costs income Operating Increase 114 income -61 3 Copyright© Livesense Inc. 35
Slide 36: Operating Expenses
Operating Expenses (Millions of JPY) Personnel expenses 1,629 1,607 Advertising costs 1,552 Depreciation and amortization Others 1,339 467 441 1,235 1,236 1,249 467 1,130 390 382 376 372 404 510 551 438 347 296 314 317 205 609 632 598 540 538 564 489 500 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2016 FY2017 Copyrig
Slide 37: Employees
Employees No. of Employees (Consolidated) Breakdown of Full-time Employees Regular/HQ (People) Regular/R Part-time Customer waja/Regular 495 489 Support 482 waja/Part-time 444 25 24 2% 436 438 437 22 30 29 29 Administration 411 15 399 15 16 21 13 31 30 28 28 11% Engineers/ 13 30 31 132 126 120 Desig
Slide 38: Record of Recent Major Publicity Events
Record of Recent Major Publicity Events Introduced in Nihon Keizai Shimbun’s “Special Issue on Companies Listed for 10 Years or Dec. 28, 2017 Less” Dec. 27, 2017 Syukatsu Kaigi new graduate employment support service covered by Nihon Keizai Shimbun Dec. 15, 2017 Machbaito part-time employment servic
Slide 39: Corporate Profile
Corporate Profile 社名 Livesense Inc. CEO/Founder Taichi Murakami Business Happiness Begetting Happiness. Philosophy Corporate Vision Invent the next common. Established February 8, 2006 TSE 1st Section : October 1, 2012 Date listed TSE Mothers : December 7, 2011 Number of Employees Full-Time: 311 (as
Slide 40: Invent the next common
Invent the next common 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. T