internet infinity INC. · TSE:6545
internet infinity — FY2018 Earnings Presentation
48 slides from internet infinity's earnings presentation, May 22, 2018
Slide 1: Fiscal Year Ended March 31, 2018 Results Briefing Materials
Fiscal Year Ended March 31, 2018 Results Briefing Materials internet infinity INC. Securities code: 6545 May 22, 2018 Copyright © internet infinity INC. All Rights Reserved.
Slide 2: Table of contents
Table of contents 1. Fiscal year ended March 31, 2018 - Summary of business results 2. Fiscal year ended March 31, 2018 - Financial summary 3. Fiscal year ending March 31, 2019 - Financial results projections 4. Topics Supplementary information Copyright© internet infinity Inc. All Rights Reserved.
Slide 3: Summary of business results
Fiscal year ended March 31, 2018 Summary of business results
Slide 4: Sales and earnings increased strongly compared with the previous fiscal year
Fiscal year ended March 31, 2018 - Summary of business results Sales and earnings increased strongly compared with the previous fiscal year Net sales Operating income Net income (Unit: million yen) +15.9％ 3,289 +40.1％ ＋78.5％ 185 2,837 241 172 104 FY FY FY FY FY FY 03/2017 03/2018 03/2017 03/2018 03/
Slide 5: Financial summary
Fiscal year ended March 31, 2018 Financial summary
Slide 6: Sales and earnings marked new historical highs
Fiscal year ended March 31, 2018 - Financial results highlights Sales and earnings marked new historical highs based on the growth at the Healthcare Solution Business FY 03/2018 YoY rate of (Unit: million yen) FY 03/2017 Factors for change / Topics Actual results change Record Book Business +31.0% Y
Slide 7: Transition of sales and operating income (quarterly)
Transition of sales and operating income (quarterly) Both sales and operating income rise in 4Q due to increase in "Record book" franchise care center openings Net sales Operating income (Unit: million yen) YoY: +15.9% (Unit: million yen) YoY: +40.1% 4,000 320 3,289 241 3,000 2,837 240 2,455 2,098 1
Slide 8: Analysis of change in operating income
Analysis of change in operating income +69 million yen (+40.1%) Effects from higher sales at the Web Solution Business due to increased Other Effects from higher projects Increase in ＋21 million sales at the Record ＋90 million yen advertising expenses yen for "Record book" Book Business due to incre
Slide 9: Sales by business
Sales by business Healthcare Solution Business Home-Centered Service Business 44.1％ 1,450 million yen 39.5％ 1,300 million yen Home-Centered Record Book Business Service Business The Record Book Business offers In-home eldercare 3-hour rehabilitation day care Composition support services services spe
Slide 10: Financial results breakdown by segment
Fiscal year ended March 31, 2018 - Financial results breakdown by segment Healthcare Solution Business posted strong growth Sales breakdown by segment (Unit: million Rate of yen) FY 03/2017 FY 03/2018 change (Unit: million yen) Healthcare Solution Healthcare Solution 1,556 1,989 +27.8% Business 4,00
Slide 11: Financial results of the Healthcare Solution Business
Fiscal year ended March 31, 2018 - Financial results of the Healthcare Solution Business Financial results overall were driven by the Record Book Business +31.0% compared with the previous fiscal year (Unit: million yen) FY 03/2017 FY 03/2018 YoY Composition Composition Change in Rate of Net sales N
Slide 12: Transition of the number of Record book care centers
Fiscal year ended March 31, 2018 - Transition of the number of "Record book" care centers Number of care centers increasing at a steady pace centered on franchises Tohoku region 5 care centers (+5 compared with the Transition of the number of end of the previous fiscal year) "Record book" care cente
Slide 13: Record Book Business: Meitetsu Life Support joint venture
Record Book Business Meitetsu Life Support Co., Ltd., a joint-venture company with Nagoya Railroad Co., Ltd., began operation from October June 2017 Nagoya Railroad Co., Ltd. and internet infinity enter into a collaborative agreement and establish joint-venture company Meitetsu Life Support Co., Ltd
Slide 14: Web Solution Business
Web Solution Business +32.8% compared to previous fiscal year due to increased awareness, including impact of stock listing Marketing support for the senior Support in reconciling employment consumer market duties and eldercare requirements Marketing requests from companies Securing stable, continuo
Slide 15: Balance sheet
Fiscal year ended March 31, 2018 - Balance sheet (Unit: million yen) FY FY Change in FY FY Change in 03/2017 03/2018 amount 03/2017 03/2018 amount Current assets 1,031 1,074 +43 Current liabilities 807 710 -96 Cash and deposits Short-term loans 442 405 -37 350 40 2 -350 payable Notes and Current por
Slide 16: Cash flows
Fiscal year ended March 31, 2018 - Cash flows (Unit: million yen) YoY (change in FY 03/2017 FY 03/2018 amount) Cash flows from operating 120 321 +200 activities Cash flows from investing -65 -248 -182 activities Cash flows from financing 230 -109 -339 activities Net increase (decrease) in cash and 2
Slide 17: Financial results projections
Fiscal year ending March 31, 2019 Financial results projections
Slide 18: Financial results projections FY ending March 2019
Fiscal year ending March 31, 2019 - Financial results projections Sales and earnings are poised to mark new historical highs based on the accelerated pace of new "Record book" care center openings and customer growth at the Web Solution Business Further testing and investment to establish busine
Slide 19: Projections breakdown by segment
Fiscal year ending March 31, 2019 - Financial results projections and points of note breakdown by segment Growing number of "Record book" care centers - Further accelerate nationwide deployment, focusing on franchises Healthcare Solution Web Solution - Strengthen efforts to tap into new customer bas
Slide 20: Key policies - Healthcare platforms growth
Key policies - Healthcare platforms growth period Accelerate growth of existing businesses Record Book Business ✓ Accelerate nationwide deployment of "Record book" care centers, focusing on franchises - Increase locations at a 60 and more per year pace ✓ Work with top local companies in local areas
Slide 21: Medium-term strategies
Growth strategies: Medium-term strategies Aim to expand target strata and raise enterprise value by strengthening healthcare platforms 3 Expansion of target strata Enterprise value Roll-out of fitness business (non-insurance) for active seniors, forecast to reach around 30 million persons by 2020. P
Slide 22: Topics
Topics
Slide 23: Collaboration with Lawson, Inc.
Topics Support in reconciling employment duties and eldercare requirements Collaboration with Lawson, Inc. Deployment of "Eldercare Consultation Centers" in convenience stores Opening of an "Eldercare Consultation Center" for face-to-face eldercare consultation in the Lawson Higashinarashino store.
Slide 24: Start of Understanding Dementia service
Topics Service expansion of support in reconciling employment duties and eldercare requirements Start of "Understanding Dementia" service 1 out of 4 persons aged 65 years or higher* is said to suffer from dementia in the form of mild cognitive impairment (MCI), which is at the focus of support provi
Slide 25: Smartphone app for exercise program to prevent locomotive syndrome
Topics Easy physical exercises by "Record book" care center trainers also for home use! Smartphone app for 5-minutes/daily exercise program to prevent locomotive syndrome A health improvement app based on exercise programs actually in use at "Record book" care centers customized for "5-minute daily
Slide 26: CMO Answer app for care managers
Topics New function additions to "Care Management Online" "CMO Answer" app for conversations among care managers Collective knowledge enhances the quality of care management • A new service to enable enhanced care management by sharing the collective knowledge of the 87,000 care managers who have re
Slide 27: Supplementary information
Supplementary information
Slide 28: Business lines
Business lines
Slide 29: Company outline
Company outline Established May 7, 2001 Capital 211,170,300 yen (as of March 31, 2018) Head office Gate City Ohsaki, East Tower 4F, 11-2, Ohsaki 1-chome, Shinagawa-ku, location Tokyo 141-0032, Japan ISMS certification acquisition Representative Representative director Keiichi Beck Corporate Executiv
Slide 30: Corporate philosophy and code of conduct
Corporate philosophy and code of conduct For a "longer life in health" through our services. Corporate slogan <Business philosophy> Healthful Future Resolving the problems of super-aged Mission communities through creative <Mission and business innovation and proactive endeavor fields of IIF> Seven
Slide 31: Company timeline
Company timeline Roll-out of new healthcare services through on- site and online operations Net sales Importance of care managers coming into focus Pioneering the first network created Rapid in the industry 2014 growth Start of "Record Initiation of operations book" franchise surrounding life span o
Slide 32: Importance of care managers for the long-term care insurance system
Importance of care managers for the long-term care insurance system Care managers, who prepare the care plans, have significant power to influence decisions on eldercare services Recommend and introduce Care plan eldercare service preparation companies in accordance with care plans Monthly visits Ca
Slide 33: Strength of the company: Care Management Online
Strength of the company Care Management Online Registration free Japan's Running of charge largest care manager operations support portal site Number of registered care managers Around 60% of total number of care managers in Japan (approx. 89,000 managers) Number of registered site users Around 140
Slide 34: Care Management Online as an irreplaceable tool
Strength of the company Care Management Online has established itself as an irreplaceable tool for care managers' duties Main duties of care managers Care Management Online Preparation of care plans and Resources available for download comprise documents required for long-term care various forms, sa
Slide 35: Japan's largest care manager network reaching senior households
Strength of the company Japan's largest care manager network capable of reaching senior households Care Management Online connects the Company with senior households Senior households Around 2.3 million Care manager On site Care managers make Running Japan's Web monthly visits to largest care manage
Slide 36: Record Book: 3-hour rehabilitation day care services
Record Book The Record Book Business offers 3-hour rehabilitation day care services specializing on instruction in physical exercises (Scope of application: Certified eldercare patients up to eldercare level 2) Feature High subscriber retention ratio 1 (1) Creation of environments for eldercare pati
Slide 37: Customer attraction through Web-based and on-site operations
Record Book Feature Customer attraction power of Web-based and on-site operations 3 through the efficient use of Japan's largest care manager network Web-based customer attraction Japan's largest care manager network "Care Management Online" Care Management Online identifies care Eldercare managers
Slide 38: Marketing support for the senior consumer market
Web Solution - Marketing support for the senior consumer market Marketing support through Japan's largest care manager network capable of reaching around 2.3 million senior households Japan's largest care manager network • Marketing research request Care Management • Provision of Research Online imp
Slide 39: Example case: marketing support for eldercare food products
(Example case) Marketing support for the senior consumer market Marketing support for development and manufacturing of eldercare food products by major food manufacturers ① Request for eldercare food product sampling research Development and ② Request for advertisement postings on Care manufacture o
Slide 40: Support in reconciling employment duties and eldercare requirements
Web Solution - Support in reconciling employment duties and eldercare requirements Adopted by 70 companies with over 1.2 million users Adoption mainly as part of corporate welfare programs Support in reconciling employment duties and eldercare requirements delivered over the Internet, etc., to users
Slide 41: Growth strategies
Growth strategies
Slide 42: Growth strategies overview
Growth strategies (1) Expansion of the Record Book Business (2) Expansion of target strata (3) Strengthening of the Web Solution Business Copyright© internet infinity Inc. All Rights Reserved. 41
Slide 43: Strategy (1): Expansion of the Record Book Business
Strategy (1): Expansion of the Record Book Business Dominant strategies for major cities Increase the number of care centers based on collaborative models between franchise initiatives and partners Roll-out of care centers Franchise initiatives specialized on major cities Increase the number of fran
Slide 44: Strategy (2): Expansion of target strata
Growth strategy (2): Expansion of target strata Business area expansion by inclusion of the volume zones of super-aged communities Start of non-insurance business geared at active seniors Transition of the active senior population (Unit: 10,000 persons) Active seniors 4,000 Other (mainly active seni
Slide 45: Start of Smart Times fitness business for active seniors
Growth strategy (2): Expansion of target strata Start of "Smart Times" fitness business +α for active seniors Rising health consciousness among seniors Provision of +α services by our Company Transition of the age range composition ratio of fitness club members Fitness Rising percentage of members a
Slide 46: Strategy (3): Strengthening of the Web Solution Business
Growth strategy (3): Strengthening of the Web Solution Business Business growth through intense sourcing of projects by capitalizing on tailwinds in the industry environment, and through new order acquisition Database strengthening • Increase in marketing Data accumulation requests from corporations
Slide 47: Initiatives combining healthcare platforms and big data
Growth strategies: Medium-term strategies Initiatives surrounding new services and businesses by combining healthcare platforms and big data Healthcare platforms Increase in the number Increase in the number Strengthening of the Aggregation (1.2 million of registered care of care centers and marketi
Slide 48: Cautionary note and contact for inquiries
The numerical business results projections stated in these materials are based on judgments and expectations derived from the information available at the time. The materials have been prepared based on numerous assumptions and perceptions obtained from information that includes risks and uncertaint