Slide 1: FY2021 Financial Results
FY2021 Financial Results Livesense Inc. (TSE1: 6054) February 14, 2022
Slide 2: Agenda
1 Financial Results 2 FY2021 Summary Agenda 3 FY2022 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 Full-year net sales up despite impact of COVID-19. Operating loss remained flat. On quarterly basis, both net sales and operating loss improving. Net sales ¥4,179 million ( YoY +¥100 million +2.5% ) Operating income -¥1,112 million ( YoY +¥16 million －% ) Among exis
Slide 5: Full Year Financial Results Overview
Full Year Financial Results Overview 5 (Millions of JPY) FY2020 FY2021 YoY Net Sales 4,078 4,179 +2.5% Operating Income -1,129 -1,112 － Operating Margin(%) － － － Ordinary Income -1,032 -916 － Profit attributable to -1,089 -943 － owners of parent Copyright © LIVESENSE Inc.
Slide 6: Full Year Net Sales and Operating Income
Full Year Net Sales and Operating Income 6 Sales up despite impact of COVID-19 and transfer of Syukatsu Kaigi, but operating income mostly flat. No substantial recovery. Net Sales Operating Income Machabaito (Millions of JPY) Operating Income (Millions of JPY) Tenshoku Kaigi FY2019 FY2020 FY2021 Ten
Slide 7: Quarterly Net Sales and Operating Income
Quarterly Net Sales and Operating Income 7 Performance bouncing back since hitting bottom in FY2020/4Q. 4Q net sales and operating income up substantially YoY, ¥247 million and ¥177 million, respectively. Net Sales Operating Income (Millions of JPY) Period impacted 1,350 by COVID-19 1,143 1,070 1,08
Slide 8: Full Year Operating Income - YoY Comparison
Full Year Operating Income -YoY Comparison 8 Income improving steadily in existing businesses. Operating loss remained flat despite increased investment in new businesses. (Millions of JPY) FY2020 FY2021 Operating Operating Other income income Decrease +112 -1,129 -1,112 in profit resulting from inv
Slide 9: Full Year Operating Expenses
Full Year Operating Expenses 9 Other expenses increased as a result of strengthening customer acquisition efforts. Personnel expenses decreased, but total costs stayed mostly the same. (Millions of JPY) Personnel expenses Advertising costs Others 6,195 5,208 5,291 1,624 1,482 1,662 2,366 1,495 1,567
Slide 10: Assets
Assets 10 Cash and deposits decreased due to operating loss, but no concerns over financial standing. Investment securities (listed stock) increased from past investments. （Millions of JPY) 4,030 3,339 Cash and deposits 3,031 Cash and deposits 2,705 Investment securities 529 (+462) 535 186 End of FY
Slide 11: 2. FY2021 Summary
2. FY2021 Summary
Slide 12: 2. FY2021 Summary: Company-wide policy
12 2. FY2021 Summary Company-wide policy Copyright © LIVESENSE Inc.
Slide 13: FY2021 Company-wide Policy
FY2021 Summary 13 FY2021 Company-wide Policy Balance restructuring for profitability with launching new businesses to become pillars of the future in pursuit of our corporate vision “Invent the next common.” • QoQ recovery continues, led by Machbaito and Tenshoku Draft. Enhance profitability of • “R
Slide 14: Reduction of Fixed Costs
Reduction of Fixed Costs 14 New work styles such as remote work taking root. Decision made to downsize, relocate or close all offices. Reduce fixed costs while maintaining productivity. Office Policy Office Cost Calculation (Millions of JPY) 1.6 Reduce to 1/3 Kyoto Close 0.5 Tokyo FY2021 Relocation
Slide 15: 2. FY2021 Summary: Existing business
15 2. FY2021 Summary Existing business Copyright © LIVESENSE Inc.
Slide 16: Full Year Net Sales and Operating Income of Existing Businesses
Full Year Net Sales and Operating Income 16 of Existing Businesses Sales and income up in existing businesses. By business, Machbaito sales up 10.2% YoY. Tenshoku Draft sales up substantially, 62.3% YoY. (Millions of JPY) Machabaito Tenshoku Kaigi Tenshoku Navi Other Operating Income 5,241 491 4,178
Slide 17: Machbaito: Enhance Profitability of Existing Businesses
Enhance Profitability of Existing Businesses 17 Machbaito Respond to changes in business environment and transform customer makeup. Seven out of 10 top customers in terms of sales changed in two years. Top 10 Companies (Net Sales) (Millions of JPY) 804 654 350 337 FY2019 FY2021 FY2019 Top customers
Slide 18: Machbaito: Enhance Profitability of Existing Businesses
Enhance Profitability of Existing Businesses 18 Machbaito User experience and matching accuracy improved with utilization of user data. Significant increase in applications via app. Will continue to make further improvements utilizing data and improve application rate. Number of applications via app
Slide 19: Tenshoku Draft: Enhance Profitability of Existing Businesses
Enhance Profitability of Existing Businesses 19 Tenshoku Draft Established unique value in engineer career change market, where hiring needs are very strong. Also achieved record high numbers of participating companies and members. Number of hires also up owing to enhanced recommendation logic. Numb
Slide 20: Withdrawal from Unprofitable Businesses (Tenshoku Navi)
Enhance Profitability of Existing Businesses Withdrawal from Unprofitable Businesses 20 (Tenshoku Navi) Sales on the decline due to hiring constraints arising from COVID-19. Decision made to withdraw in light of time required for recovering performance and difficulty of establishing competitive adva
Slide 21: 2. FY2021 Summary: New business
21 2. FY2021 Summary New business Copyright © LIVESENSE Inc.
Slide 22: Launching New Business: knew
Launching New Business 22 knew Video chat utilization / proposal type new matching app "knew" Leveraging our data platform and matching know-how, which are our strengths, in the high-growth market of matching services, we aim to provide an advanced UX and achieve business growth. Current state of ma
Slide 23: Launching New Business: knew
Launching New Business 23 knew Launch of monthly member functions Everything up to introductions and video chat can be used free of charge. Charges only arise for continued communication, resulting in a high level of customer satisfaction. Members only Keep commu Private Commu nicatin messages nicat
Slide 24: Launching New Business: batonn
Launching New Business 24 batonn Eliminate the gap in evaluation between interviewers by converting online interviews into data and linking the post-interview evaluation with the rationale. Beta version released for companies participating in beta test. Structure strengthened for full-scale paid ser
Slide 25: 3. FY2022 Policy
3. FY2022 Policy
Slide 26: Optimization of Business Portfolio
What Livesense is aiming for 26 Become a company that can continue to pursue our corporate vision “Invent the next common.” through our business portfolio. Becoming a company that continues to “Invent the next common.” Optimization of Business Portfolio Existing businesses New businesses Strengthen
Slide 27: What Livesense is aiming for
What Livesense is aiming for 27 Focus on enhancing profitability of existing businesses. Invest profits from existing businesses into new businesses in the aim of establishing new pillars of income. Enhance profitability Level of income that of existing makes ongoing business businesses investments
Slide 28: Company-wide Policy for FY2022
Company-wide Policy for FY2022 28 Policy: Establish foundation for restructuring for profitability and full- fledged growth of new businesses in pursuit of our corporate vision “Invent the next common” Enhance profitability of existing businesses ・Further business growth of Machbaito and Tenshoku
Slide 29: Enhance Profitability of Existing Businesses
Enhance Profitability of Existing 29 Businesses Make Machbaito and Tenshoku Draft, which have clear strengths and achieved growth in FY2021, the main pillars of growth in FY2022. Aim for business growth with high accuracy by polishing strengths. FY2021 growth (Net sales YoY) +10.2% +62.3% （4Q:＋32.8%
Slide 30: Establish Foundation for New Businesses
Establish Foundation for New Businesses 30 Establish a foundation for business growth in aim of creating pillars of the future. Begin full-scale expansion upon completion of verification of feasibility and profitability. Financial forecast for current year does not include significant growth or inve
Slide 31: Financial Forecasts for FY2022
Financial Forecasts for FY2022 31 Maintain and build upon FY2021 recovery and increase sales to cover with drawal from Tenshoku Navi. Substantially improve operating loss. Achieve restructuring for profitability in FY2022 and return to full-year profitability in FY2023. (Millions of JPY) FY2021 FY20
Slide 32: TSE market reorganization
TSE market reorganization 32 Transitioning to Prime Market in conjunction with market reorganization coming in April 2022. Listing requirements for new market not currently met. Aiming to meet them by FY2026. Plan for Compliance with Listing Requirements for New Market Segment Unmet requirements Tra
Slide 33: LIVESENSE
6 LIVESENSE BKVERE, RBLES.
Slide 34: 4. Appendix
4. Appendix
Slide 35: 4. Appendix: Quarterly results
35 4. Appendix Quarterly results Copyright © LIVESENSE Inc.
Slide 36: Quarterly Net Sales and Operating Income
Quarterly Net Sales and Operating Income 36 (Millions of JPY) Period impacted by COVID-19 1,350 178 1,143 1,070 1,089 200 1,003 136 132 129 163 883 876 147 210 841 110 86 151 81 98 157 165 198 134 120 120 163 147 148 124 151 761 702 683 624 493 513 514 505 ▲ 127 ▲ 241 ▲ 204 ▲ 276 ▲ 306 ▲ 343 ▲ 382 ▲
Slide 37: Quarterly Operating Income - YoY Comparison
Quarterly Operating Income -YoY Comparison 37 (Millions of JPY) 4Q21 Other Operating +19 income -204 4Q20 Operating Decrease income in profit resulting -382 from investment in new businesses Increase in costs Increase in sales -17 in existing in existing businesses businesses -70 + 246 Copyright © L
Slide 38: Quarterly Operating Expenses
Quarterly Operating Expenses 38 (Millions of JPY) Personnel expenses Advertising costs Others 1,478 1,377 1,384 1,279 1,293 412 1,226 1,223 1,237 394 469 363 341 456 363 342 523 342 453 302 327 367 401 345 543 573 560 553 528 528 513 490 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2020 FY2021 Copyright © LIVESENSE In
Slide 39: 4. Appendix: Company overview
39 4. Appendix Company overview Copyright © LIVESENSE Inc.
Slide 40: LIVE + SENSE Happiness Begetting Happiness.
Origin of the company name 40 /Business Philosophy Origin of the company name LIVE + SENSE Business Philosophy Happiness Begetting Happiness. Corporate Vision Invent the next common. Copyright © LIVESENSE Inc.
Slide 41: Corporate History
Corporate History 41 Providing various services to solve problems and inconveniences since founding. October 2012 TSE 1st Section Redesignation December 2011 Listed on TSE February 2006 Mothers Establishment of a company 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Slide 42: Basic Philosophy of Service Operations
Basic Philosophy of Service Operations 42 Operate services to solve society’s problems. Aim to solve problems faced by many users and bring about their happiness by having Livesense services become “the next common.” Achievement of Happiness Begetting Happiness Inventing the next common Solving soci
Slide 43: Corporate Profile
Corporate Profile 43 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 44: Employees
Employees 44 No. of Employees (Consolidated) Breakdown of Full-time Employees (People) Regular/HQ Regular/R Adminis Part-time Customer tration Regular/Subsidiaries Support 13% Engineers Part-time/Subsidiaries 7% / 397 398 391 Designers 381 373 370 357 35% 345 113 112 110 110 105 106 101 98 Sales 75
Slide 45: Disclaimer
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