Slide 1: Presentation for New Investors
ZIGExN Co., Ltd. Presentation for New Investors
Slide 2: Contents
Contents 1. Company & Business Overview 2. Competitive Advantage 3. Growth Strategy 4. Recent Financial Results 5. Financial Policy 6. Reference Materials 2 Copyright(C) ZIGExN Co., Ltd. All Rights Reserved.
Slide 3: Company & Business Overview
1 Company & Business Overview
Slide 4: Company Overview
1. Company & Business Overview Company Overview Overview Basic Principle ZIGExN aims at “maximizing opportunities in life” and seeks harmony and sustainable development with Company name ZIGExN.Co.,Ltd society by providing a platform to connect to the world Location of through the Internet. 3-4-8 To
Slide 5: CEO Profile
1. Company & Business Overview CEO Profile Representative Director, President and CEO Joe Hirao Publication of the Book Brief record Entrepreneurial Thinking Born in 1982. Graduated from the Faculty of Established the forerunner to ZIGExN in 2006, Environment and Information Studies, Keio University
Slide 6: History of ZIGExN
1. Company & Business Overview History of ZIGExN Changed from the 1st section of Announced the largest-ever TSE market to the Prime Market. share buyback limit of 2.8 billion yen. 15th anniversary of establishment. Released 2nd medium-term management plan “Z CORE”. 2024 Moved headquarters to 2023 Ch
Slide 7: Performance Summary
1. Company & Business Overview Performance Summary ⚫ Achieved increased revenue for 13 straight terms from founding to FY2020/3. ⚫ Despite being heavily impacted by COVID-19 in the travel and Human Resource segment, revenue and profits returned to a YoY growth trend starting from Q4 of FY2021/3 than
Slide 8: Overview of main services by segment
1. Company & Business Overview Overview of main services by segment ⚫ Hair salon/ Job search platform specializing in the REJOB beauty industry https://relax-job.com/ health care Vertical HR Job placement specialized in the ⚫ Manufacturing Ties manufacturing industry https://www.ee-ties.com/ Consist
Slide 9: Vertical HR segment: Business model
1. Company & Business Overview Vertical HR segment: Business model ⚫ The Vertical HR segment consists of domain-specific HR businessess (job search platform and job placement / temporary staffing). Corporate Clients Vertical HR Users Search and Application Recruitment support Job search platform (Pr
Slide 10: Living Tech segment: Business model
1. Company & Business Overview Living Tech segment: Business model ⚫ The Living Tech consists of (1) "Aggregation platform“, which allows users to search and apply for information from multiple websites at once, "Specialized platform" and "Business Support Tools“, which have their own direct clients
Slide 11: Living Tech segment: Business model (2)
1. Company & Business Overview Living Tech segment: Business model (2) ⚫ The Living Tech consists of (1) "Aggregation platform“, which allows users to search and apply for information from multiple websites at once, "Specialized platform" and "Business Support Tools“, which have their own direct cli
Slide 12: Life Service segment: Business model (1)
1. Company & Business Overview Life Service segment: Business model (1) ⚫ The Life Service segment has a vast databse similar to a core business and is recognized as the foundation of our management resources. We have three types of business model: aggregated media, specialized media, and system dev
Slide 13: Life Service segment: Business model (2) (Travel)
1. Company & Business Overview Life Service segment: Business model (2) (Travel) Hotel/ Hotel/Airline Travel Agencies Users Airline ticket wholesalers APPLE WORLD Provide Posting hotels/ information Air tickets on hotels/ Hotel/Air tickets Travel Air tickets reservations Reservations BtoB Business H
Slide 14: Life Service segment: Business model (2) (Travel)
1. Company & Business Overview Life Service segment: Business model (2) (Travel) Hotels/ Hotel/Airline TSD Travel Agencies Users Airline ticket wholesalers Airline Airline ticket Airline Ticket ticketing issuance Arrangement BtoB Business Airline ticket Paying price fees Provide hotels Information p
Slide 15: Competitive Advantage
2 Competitive Advantage
Slide 16: Sources of strength (1) -Matching Technology-
2. Competitive Advantage Sources of strength (1) -Matching Technology- ⚫ We quickly build clients and users contact points and have collected and analyzed information on both for over ten years. ⚫ We then collect and compile more detailed information by also focusing on alliances with individual com
Slide 17: Sources of strength (1) -Specific Example of Matching Technology-
2. Competitive Advantage Sources of strength (1) -Specific Example of Matching Technology - ⚫ Matching technology is the ability to provide users with the most appropriate information to encourage them to take action. ⚫ Establish a cycle of analysis, learning, and distribution to generate highly acc
Slide 18: Sources of strength (2) -ZIGExN Value Integration (ZVI)-
2. Competitive Advantage Sources of strength (2) -ZIGExN Value Integration (ZVI)- ⚫ Established our unique and highly replicable PMI methodology called "ZVI (ZIGExN Value Integration)" based on the extensive M&A experience, various knowledge and resources such as PMI personnel. ⚫ We achieve performa
Slide 19: Example of improvement through ZVI: Vertical HR REJOB
2. Competitive Advantage Sources of strength (2) – Example of improvement through ZIGExN Value Integration (ZVI)- ⚫ Identifying opportunities for marketing improvement in M&A target companies, such as enhancing customer acquisition and CVR (conversion rate) and achieving performance improvement in g
Slide 20: Example of improvement through ZVI: Living Tech renovation
2. Competitive Advantage Sources of strength (2) – Example of improvement through ZIGExN Value Integration (ZVI)- ⚫ Identifying opportunities for marketing improvement in M&A target companies, such as enhancing customer acquisition and CVR (conversion rate), and achieving performance improvement in
Slide 21: M&A performance - Payback period -
2. Competitive Advantage M&A performance - Payback period - ⚫ Regarding the payback period, in addition to the acquisition of the property at a fair price, the PMI, which leverages our strengths, has accelerated business growth, resulting in a relatively early payback period of approximately 3 to 5
Slide 22: Results of M&A Investment
2. Competitive Advantage Results of M&A Investment ⚫ Cumulative total of 28 cases until FY2024/3, excluding 3 acquired within the past one year and 1 sold, the EBITDA for the current period was 5.2 billion yen against a current period EV of 16 billion yen. ⚫ Annual return of 32.4%; cumulative return
Slide 23: Growth Strategy
3 Growth Strategy
Slide 24: 2nd Medium-term Management Plan Z CORE
3. Growth Strategy 2nd Medium-term Management Plan “Z CORE” Purpose Update Your Story ―For a Better Future Updating the future of everyone standing at life's crossroads In FY3/2026 Management ⚫ Revenue of more than 35bn yen Plan EBITDA of more than 10bn yen ⚫ Create Z CORE (revenue of 10bn yen) KPI
Slide 25: Progress of the 2nd Medium-term Management Plan and Projection
3. Growth Strategy Progress of the 2nd Medium-term Management Plan and Projection ⚫ (1) Unit price per client price is expected to increase due to M&As in high-price businesses and price increases in some sectors. ⚫ (2) We plan to focus on the development of enterprise clients and the improvement of
Slide 26: Progress and Projection - Vertical HR -
3. Growth Strategy Progress of the 2nd Medium-term Management Plan and Projection - Vertical HR - ⚫ In Vertical HR, progress towards the FY26/3 revenue exceeding 10 billion yen is proceeding smoothly, and aiming to achieve it ahead of schedule. ⚫ With Ties at the center, progress has been made parti
Slide 27: Progress and Projection - Living Tech -
3. Growth Strategy Progress of the 2nd Medium-Term Management Plan and Projection- Living Tech - ⚫ In Living Tech, while achieving an increase in revenue compared to the previous year, there are still challenges remaining towards the goal of achieving revenue of 10 billion yen by FY26/3. ⚫ In M&A, t
Slide 28: Highlights of Strategy in Each Segment
3. Growth Strategy Highlights of Strategy in Each Segment ⚫ In pursuit of the creation of the mainstay business "Z CORE" with annual revenue exceeding 10 billion yen as outlined in the second medium-term management plan, and towards achieving the performance target for FY26/3, initiatives are being
Slide 29: Market Size and Strategy in Vertical HR
3. Growth Strategy Market Size and Strategy in Vertical HR ⚫ We select and expand into economically viable areas according to the company's standards as targets for “Vertical HR,” leveraging successful case studies in Ties and operational expertise in other job placement businesses to expand horizon
Slide 30: Existing business domains in Vertical HR
3. Growth Strategy Existing business domains in Vertical HR ⚫ We aim to accelerate the speed of growth of each business by consolidating know-how in sales, marketing, systems, etc., while comprehensively strengthening business models based on the analysis of each business's strengths and success fac
Slide 31: Growth strategy in Vertical HR
3. Growth Strategy Growth strategy in Vertical HR ⚫ The HR market is a fragmented market, and commonality is not always optimal, so the value of domain-specific intervention is significant. ⚫ Within the HR market, we select the areas considering the size of the supply-demand gap, the competitive env
Slide 32: Growth Strategy in Living Tech
3. Growth Strategy Growth Strategy in Living Tech ⚫ We aim for growth through online classifieds expansion, the business model expansion, and enhancement of the value provided through cross-selling. ⚫ We explore opportunities for expansion into higher value-added business models while maintaining hi
Slide 33: M&A Strategy -Overview-
3. Growth Strategy M&A Strategy -Overview- ⚫ (1) Expand TAM through MA&s with the main focus on user-attracting website, aiming for horizontal expansion into adjacent/new areas. ⚫ (2) Expand SAM through M&As based on cross-sell and up-sell synergies generated by the contact points with users and cor
Slide 34: M&A Strategy -an entry to new business domains-
3. Growth Strategy M&A Strategy -an entry to new business domains- ⚫ In order to further promote the discontinuous growth, we will maintain our strategic investment policy, using accumulated cash flow as funding for future M&As. ⚫ We recognize that there are plenty of domains where there is a demand
Slide 35: Recent Financial Results
4 Recent Financial Results
Slide 36: Yearly financial results - Revenue -
4. Recent Financial Results Yearly financial results - Revenue - Revenue 1 Revenue 2 ⚫ Revenue 1: Steady growth is primarily attributed to the Consolidated (number of large (number of clients stable expansion of REJOB and the recovery and Revenue focused) companies and its unit growth of the travel
Slide 37: Rate of achievement against the financial forecast for FY2024/3
4. Recent Financial Results Rate of achievement against the financial forecast for FY2024/3 ⚫ As the group, both revenue and profits have landed within the expected range outlined in the guidance. ⚫ In particular, Vertical HR and Life Service have shown strong progress, setting new record highs. Rev
Slide 38: Transition of Revenue Structure
4. Recent Financial Results Transition of Revenue Structure ⚫ Revenue from the traditional mainstay of aggregation media now constitutes a mere Revenue 1 Revenue 2 10% of total revenue, reflecting a departure from an uncontrollable revenue structure. 3,432Myen 2,897Myen ⚫ Non-recurring revenue is pr
Slide 39: Number and unit price of corporate clients
4. Recent Financial Results Number and unit price of corporate clients Number of Unit price per ⚫ The number of corporate clients has reached a record high, mainly due to corporate clients corporate client contributions from REJOB, travel business APW/TSD, and the new group-in companies in the previ
Slide 40: Organic Growth and Inorganic (M&A) Growth
4. Recent Financial Results Organic Growth and Inorganic (M&A) Growth ⚫ Achieving accelerated revenue growth through proactive M&A initiatives. We continue to aspire to execute M&A activities for medium to long-term growth in the future. Organic/Inorganic Revenue (yen in millions) 30,000 オーガニックグロース
Slide 41: Yearly financial results - Profits -
4. Recent Financial Results Yearly financial results - Profits - EBITDA Operating income ⚫ EBITDA and operating profit have reached record highs, partly due to the recovery of the travel business and the contribution of a smooth 6,781Myen 5,394Myen PMI centered around Ties, etc. (YoY + 27.1%) (YoY +
Slide 42: Quarterly financial results
4. Recent Financial Results Quarterly financial results ⚫ Revenue and profit indicators have reached their highest levels Revenue EBITDA Operating Income ever in a quarter. ⚫ 6,329Myen 1,979Myen 1,534Myen Profit margins are improving driven by the recovery of APW, the inclusion of high-profit margin
Slide 43: Yearly financial results - Cash Flow -
4. Recent Financial Results Yearly financial results – Cash Flow - ⚫ CF from operations: Significantly surpassed previous CF from Operations CF from Investing CF from Financing records reflecting the steady growth of existing businesses and the strong PMI centered around Ties. 6,841Myen -961Myen -2,
Slide 44: Revenue by business segment
4. Recent Financial Results Revenue by business segment ⚫ Vertical HR: Organic growth due to the stable growth of REJOB, and Vertical HR Living Tech Life Service the growth of previous fiscal year M&A businesses such as Ties, is making a significant contribution. ⚫ Living Tech: Smocca and renovation
Slide 45: Business situation in mainstay businesses - Vertical HR -
4. Recent Financial Results Business situation in mainstay businesses - Vertical HR - ⚫ Pay-for-listings: Both REJOB and Awesome Agent are 12,835 13,395 progressing steadily and have set new all-time highs. 12,000 Number of clients (companies) ⚫ Pay-for-performance: Achieved an increase in revenue 8
Slide 46: Business situation in mainstay businesses - Living Tech -
4. Recent Financial Results Business situation in mainstay businesses -Living Tech- ⚫ As a result of the change in mix due to new M&A activities, 4,000 3,530 3,700 the customer base has increased, while the unit price has Number of clients 3,000 remained relatively stable. (companies) ⚫ The renovati
Slide 47: Other business situation - Life Service: Travel domain -
4. Recent Financial Results Other business situation -Life Service: Travel domain- ⚫ Overseas: Stable growth trends are being maintained due to the recovery of the macro environment and the steady accumulation of customer numbers. ⚫ Domestic: Stabilization in marketing improvements has progressed, l
Slide 48: Financial forecast for FY2025/3
4. Recent Financial Results Financial forecast for FY2025/3 ⚫ Planning a revenue and profit growth in FY2025/3 to achieve the 2nd mid-term management plan. Revenue EBITDA Operating income 27,500M yen 7,700M yen 6,300M yen Vertical HR (YoY: 118%) (YoY: 114%) (YoY: 117%) Expect high growth driven by t
Slide 49: Financial Policy
5 Financial Policy
Slide 50: Financial policy
5. Financial Policy Financial policy ⚫ In principle, we continue the financial policy that the maximum amount of share buyback limit for the following year shall be the amount of net income for the year less the amount of strategic investments and the total amount of dividends. ⚫ The acquired treasu
Slide 51: Financial strategy and strategic investments (M&A)
5. Financial Policy Financial strategy and strategic investments (M&A) ⚫ For FY2025/3, the share buyback is set at 2.8 billion yen (with an upper limit of 4.2 Strategic Dividend million share: 4.04% of the total outstanding shares (excluding treasury stocks)). investment forecast ⚫ For FY2024/3, the
Slide 52: Balance sheet condition
5. Financial Policy Balance sheet condition Goodwill-to-capital Total amount of ⚫ Financial health remained solid with the goodwill-to-capital ratio of ratio goodwill 0.5x and the ratio of equity attributable to owners of the parent to total assets at 56.3%, which are within the Company's financial
Slide 53: Goodwill impairment testing
5. Financial Policy Goodwill impairment testing ⚫ A total of 17 CGUs comprising goodwill were tested for impairment by comparing the carrying amount with the recoverable amount in accordance with IFRS. ⚫ No impairment losses are recognized as the recoverable amounts exceed the carrying amounts signi
Slide 54: Reference Materials
6 Reference Materials
Slide 55: Executive Structure -Officers and Corporate-
6. Reference materials Executive Structure -Officers and Corporate- ⚫ Promote sophistication of business execution functions from the perspectives of both business growth and expansion of corporate functions. ⚫ A rich executive structure with diverse skills through a variety of routes, including pro
Slide 56: Executive Structure -Business Officers and Specialists-
6. Reference materials Executive Structure -Business Officers and Specialists- ⚫ Abundant business officers and specialists with diverse backgrounds and skills lead the business and execute PMI for M&A. Name Businesses and Areas of Responsibility Career Ippei Suzuki REJOB Joined the Company in 2011
Slide 57: Members of the Board of Directors and Board of Statutory Auditors
6. Reference materials Members of the Board of Directors and Board of Statutory Auditors ⚫ Subject to approval by the General Meeting of Shareholders, the committee consists of members (candidates) with extensive experience and expertise. ⚫ The Board of Directors is positioned as a supervisory body
Slide 58: Board of Directors
6. Reference materials Board of Directors ⚫ The Company aims to grow its core business and manage the expanding business through a management team that is both offensive and defensive, by infusing the experience in business operations and strategy execution at other companies that the candidate for
Slide 59: SDGs materiality set by ZIGExN
6. Reference materials SDGs materiality set by ZIGExN ⚫ Create value for all stakeholders, making efforts from those through business, such as updating society/industry by DX/cultivating SDGs engagement by businesses to those related to the increased satisfaction of employees. Relevant ZIGExN's mate
Slide 60: Major SDG/ESG initiatives (1)
6. Reference materials Major SDG/ESG initiatives (1) ⚫ We position efforts in human capital management and sustainability as increasingly vital management challenges, promoting their integration with business strategies Meaningful work environment Eco-friendly corporate and business activities Emplo
Slide 61: Major SDG/ESG initiatives (2)
6. Reference materials Major SDG/ESG initiatives (2) ⚫ To realize our hope of “Change people’s lives through interaction with ZIGExN” embedded in our purpose “UPDATE YOUR STORY-For a Better Future”, we provide platforms for connections in various situations. Diverse active talents Creation of local
Slide 62: Number of clients posting ads on the platform of the mainstay businesses
6. Reference materials Number of clients posting ads on the platform of the mainstay businesses Vertical HR Living Tech ⚫ Vertical HR: Due to prioritizing the improvement of service quality per client, Number of clients posting Number of clients posting there was a slight decrease QoQ. However, stab
Slide 63: Trend in the number of employees at end of quarter
6. Reference materials Trend in the number of employees at end of quarter ⚫ The number of employees stood at 837. While carefully selecting hiring positions, we will continue to strengthen our organization as our business expands. Number of employees by job function 842 837 814 823 802 767 68 73 69
Slide 64: Quarterly trend of expenses
6. Reference materials Quarterly trend of expenses ⚫ Advertising and promotional expenses, as well as personnel-related costs, are expected to remain stable through appropriate cost-control measures. ⚫ There are no plans for significant investments in the future, and the policy is to maintain a gene
Slide 65: Trend of balance sheets as at the end of quarters
6. Reference materials Trend of balance sheets as at the end of quarters Equity attributable to owners Goodwill-to-capital ratio ⚫ The percentage of equity attributable to the owners of the parent to total assets of the parent (the equity ratio in the JGAAP) stood at 56.3% 0.5x 56.3% and the goodwil
Slide 66: Financial Strategy: Shareholder Structure
6. Reference materials Financial Strategy: Shareholder Structure ⚫ At the end of FY24/3, the institutional investor ratio (domestic corporations + foreign corporations) increased by 2.9% from the end of FY23/3 to 31.7%. 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.5% 0.5% 0.5% 3.0% 3.2% 3.2% 3.2% 6.6% 6.9% 6.9%
Slide 67: EPS & PER
6. Reference materials EPS & PER ⚫ EPS reached a new record high due to solid performance growth in existing businesses and PMI of new M&A companies . ⚫ In FY2025/3, we aim to further increase EPS by further promoting PMI centered on Ties, implementing strategic investments, and conducting sharebuyb
Slide 68: Disclaimer
Disclaimer This briefing and briefing materials are based on information available as of the date of the announcement and the judgment of the company. We will assume no obligation for updating or changing the information if future events changed the details. In addition, please understand that actua