E-seikatsu Co., Ltd. · TSE:3796
E-seikatsu — FY2018 Earnings Presentation
38 slides from E-seikatsu's earnings presentation, May 10, 2018
Slide 1: FY2018 Full-term Results Presentation Material
FY2018 Full-term Results Presentation Material May 10, 2018 e-Seikatsu Co., Ltd. Securities code: 3796 Copyright(c) 2018 e-Seikatsu Co.,Ltd. All Rights Reserved.
Slide 2: Table of Contents
Table of Contents 1. Summary of Full-term Results for FYE March 31, 2018 2．Earnings Forecast and Goals 3．Summary of Recent Business Results 1 Copyright(c) 2018 e-Seikatsu Co.,Ltd. All Rights Reserved.
Slide 3: 1. Summary of Full-term Results for FYE March 31, 2018
1. Summary of Full-term Results for FYE March 31, 2018 2 Copyright(c) 2018 e-Seikatsu Co.,Ltd. All Rights Reserved.
Slide 4: Highlights
Highlights While the contract for specific clients was terminated, we invested in the growth (human resources) of new businesses. ➢ Consolidated sales: 1,909 million yen (FY2017 1,986 million yen, YOY change -76 million yen, -3.9%) ・Cloud Service revenue: 1,814 million yen (FY2017 1,894 million yen,
Slide 5: Upfront investment for developing new services and businesses
Upfront investment for developing new services and businesses FY2017 FY2018 ・Personnel expenses for Unit: Million yen Sales engineers required for developing Sales new services, such as “pocketpost” 1,986 1,909 and upgrading the functions of “ES COGS COGS e-Bukken One Rental 733 742 Management” and
Slide 6: The termination of the contract for specific clients caused sales to drop
The termination of the contract for specific clients caused sales to drop. Sales Breakdown of Sales Fluctuation (Cloud Solution Business) Unit: Million yen 2,000 1,986 +3（↑） Sales Advanced-Cloud △4（↓） △4（↓） service 1,950 Turnkey services Turnkey services 1,909 (Monthly recurring 1,900 revenue) (Up-f
Slide 7: Cloud solution business revenues by product
Cloud solution business revenues by product Item (Million yen) FY2017 FY2018 YOY change YOY change (%) Cloud Service 1,894 1,814 △ 79 △ 4.2％ Turnkey services * 1,764 1,755 △9 △ 0.5％ Up-front revenue 50 46 △4 △8.7％ Monthly recurring revenue 1,713 1,709 △4 △0.3％ Non-turnkey services * 129 58 △70 △54.7
Slide 8: Release of the new service pocketpost
Release of the new service “pocketpost” Occupants Customer service To smooth the communication You can quickly check the The notification function will between you and a real estate current state of the real estate prevent you from missing Questions about contracts available anywhere management comp
Slide 9: Customer base of ES e-Bukken One Rental Management is expanding
The customer base of “ES e-Bukken One Rental Management,” which is strategically important, is expanding. (Unit: Number of services with payment started) 400 One Management 350 300 250 200 150 100 50 0 Sep. 2013 Mar. 2014 Sep. 2014 Mar. 2015 Sep. 2015 Mar. 2016 Sep. 2016 Mar. 2017 Sep. 2017 Mar. 201
Slide 10: The number of licenses provided is increasing steadily
The number of licenses provided is increasing steadily Transition of Number of Licenses by Service (Unit: Number of services with payment started) 1000 One Rental Property (Leasing Management) 900 One Management 800 One Sales 700 One Website 600 500 400 300 200 100 0 Nov. 2015 Dec. 2015 Nov. 2016 De
Slide 11: The number of stores using our services is increasing
The number of stores using our services is increasing. Transition of Number of Companies and Stores Using Our Services 3,800 3,537 3,556 3,567 3,600 Stores 3,475 3,501 3,466 3,385 3,376 3,387 3,394 3,391 Companies 3,315 3,336 3,330 3,352 3,400 3,263 3,259 3,280 3,283 3,205 3,224 3,136 3,146 3,166 3,
Slide 12: Support systems enhanced to raise customer retention rate
The quality of support systems and services was enhanced, for raising customer retention rate Transition of Termination Rate 3.00% Termination rate (company) 2.16% 2.00% 1.44% 1.40% 1.11% 1.17% 1.16% 1.00% 0.79% 0.87% 0.88% 0.94% 0.92% 0.77% 0.55% 0.00% Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Fe
Slide 13: Monthly ARPU maintained over 100 thousand yen
Monthly ARPU maintained over 100 thousand yen Transition of Monthly ARPU Unit: yen 135,000 Monthly ARPU/company 130,000 126,600 125,000 124,900 124,000 124,500 124,800 125,000 123,500 123,600 123,400 123,000 122,200 121,800 124,100 120,700 123,000 123,700 122,900 122,800 122,900 122,800 120,000 117,
Slide 14: EBITDA remains stable
EBITDA (operating Income + depreciation) remains stable Transition of EBITDA (Consolidated) Unit: Million yen Unit: % 240 80.0 EBITDA EBITDA Margin 210 70.0 180 60.0 165 167 160 150 146 144 150 150 140 141 140 50.0 128 131 127 120 117 111 40.0 33.5 33.4 31.7 100 31.1 31.5 30.0 30.3 28.6 29.2 28.7 30
Slide 15: Service development investment for growth is continued
Service development investment for growth is continued Cash Flow Statement (Consolidated) FY2017 FY2018 Unit: Million yen Corporate income tax, Other 41 Corporate etc. △49 (*) income tax, Operating CF etc. △72 Investing CF Income before Investing Financing CF tax Income CF before tax ＋ △388 Increase
Slide 16: Continuing return to shareholders through dividends
Continuing return to shareholders through dividends, with 19th term’s dividend being 5 yen per share Per Share Information Total Payout Unit: yen Unit: Million yen 30 180.0% 300 Net income per share 162.6% 170.0% 275 Net income 160.0% Dividend per share 25 150.0% 250 Payout ratio 140.0% Total divide
Slide 17: 2. Earnings Forecast and Goals
2. Earnings Forecast and Goals 16 Copyright(c) 2018 e-Seikatsu Co.,Ltd. All Rights Reserved.
Slide 18: Points of earnings forecast for FY2019
Points of earnings forecast for FY2019 Revenue, Cost, Profit, Dividend ➢ Sales are estimated to increase to 2,002 million yen, an increase of 92 million yen from 1,909 million yen in the previous term. Utilizing the “system for subsidizing the installation of IT” in fiscal 2018, we will concentrate
Slide 19: Sales growth expected; upfront investment for growth
Sales growth expected; upfront investment for growth Full-term Full-term YOY change (Million yen) Forecast Results Difference (%) FY2019 FY2018 Sales 2,002 1,909 92 4.9％ Operating income 31 49 △18 △37.5％ Recurring income 30 49 △19 △38.8％ Net Income 11 21 △9 △45.2％ Dividend per share Full-term divide
Slide 20: Revenue forecast: sales estimated to rise through cloud services growth
Revenue forecast: Sales estimated to rise through the continuous growth of cloud services Unit: Million yen Change in Revenue Forecast Breakdown (Cloud Solution Business) 2,100 +63（↑） +33（↑） △11（↓） △1（↓） +8（↑） Turnkey services Turnkey services Non-Turnkey Network services Solution Advanced-Cloud Ser
Slide 21: Cloud solution business revenue forecast breakdown
Cloud solution business revenue forecast breakdown Item (Unit: million yen) FY2018 FY2019 YOY change YOY change (%) Cloud Service 1,814 1,899 85 4.7％ Turnkey services * 1,755 1,852 96 5.5％ Up-front revenue 46 79 33 71.6％ Monthly recurring 1,709 1,772 63 3.7％ revenue Non-turnkey services * 58 47 △11
Slide 22: 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 Depreciation Investment Investment amount Investment 500 470 Depreciatio
Slide 23: 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 24: Outline of our services
Outline of our services Real estate database - Layout info More than 4,000 items - Addresses, latitude/longitude info - Equipment info can be stored. - Images ・ ・ Lease management business Contract database Renewal and cancellation of - Lease contracts lease contracts Business activities for real es
Slide 25: Outlook for future service developments
Outlook for future service developments 2018 2019 2020 2021 2022 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 26: 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. Explain Online Online Important Electronic Electronic Viewing Application Matters
Slide 27: What is the Explanation of Important Matters by IT?
Full-scale commencement of “explanation of important matters by IT” (Oct. 1, 2017) What is the “Explanation of What are the advantages of the Important Matters by IT”? “Explanation of Important Matters by IT”? The current Building Lots and Buildings Transaction Business Act obliges real For consumer
Slide 28: Selling the cloud service for online meetings
Selling the cloud service for online meetings for “Explaining important matters by IT” ＊ Then, I’ll explain important Yes, I can hear you. matters about the real estate. I’d appreciate your Can you hear me? cooperation today. Real estate company (in Tokyo) Customer (living in Fukuoka) 1. Introductio
Slide 29: 3. Summary of Recent Business Results
3. Summary of Recent Business Results 28 Copyright(c) 2018 e-Seikatsu Co.,Ltd. All Rights Reserved.
Slide 30: The sales of cloud services are the pillar of growth
The sales of cloud services are the pillar of growth. Unit: Million yen Transition of Sales by Item (Cloud Solution Business) Cloud Service Network Solution A-Cloud Service 600 501 494 505 490 496 495 500 475 473 457 482 492 484 471 450 452 15 21 12 15 8 13 15 23 458 20 32 25 22 8 9 8 8 9 8 10 17 7
Slide 31: Transition of Operating Income (Consolidated)
Influenced by the drop in sales after the termination of contract for specific customers. Transition of Operating Income (Consolidated) Unit: Million yen Operating Income Unit: % Gross Profit Margin 100 100.0 Operating Income Margin 80 80.0 63.2 64.8 64.8 62.7 63.0 64.6 63.9 62.8 63.8 64.9 62.3 63.4
Slide 32: Total expenses are under control
Total expenses are under control (COGS) Personnel expenses (COGS) Outsourcing expenses (Consolidated) COGS (COGS) System management and depreciation expenses (COGS) Other expenses Unit: Million yen (COGS) Asset transfer Unit: % 500 COGS rate 50% 400 40% 42.1% 36.8% 37.3% 37.0% 37.7% 38.8% 38.2% 38.7
Slide 33: Financially sound
Financially sound Consolidated Balance Sheet YOY Comparison As of the end of March, 2017 Unit: Million yen As of the end of March, 2018 Current ratio Current ratio 239.0％ 244.5％ Current Liabilities 338 Current Liabilities 295 Current Assets Current Assets Non-Current Liabilities 140 Non-Current Liab
Slide 34: Number of employees
Number of employees Unit: Employees 200 WSDG Sales Corp. 166 148 146 148 148 14 150 138 138 136 134 127 12 11 13 14 15 15 15 13 Corp. 15 81 9.5% 100 72 73 74 73 72 70 68 67 67 WSDG 41.2% 50 Sales 71 49.3% 64 62 61 61 45 51 53 53 54 0 Mar. 2016 Jun. 2016 Sep. 2016 Dec. 2016 Mar. 2017 Jun. 2017 Sep. 2
Slide 35: 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 36: Competitive advantage of e-Seikatsu
Competitive advantage of e-Seikatsu To pursue the real estate field, and offer “indispensable” cloud systems Our development staff who are versed in real estate businesses develop systems (accumulating know-how). Direct sales force = tight relationship with clients, deep industry knowledge Swift cyc
Slide 37: Company Profile
Company Profile Established : January 21, 2000 Paid-in capital : 628,411,540 yen (As of the end of March 2018) 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 38: 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 • 本資料に記載された内容は、現時点において一般に認識されている経済・社会等の情勢および当社が合理的と判断した一定の前提