internet infinity INC. · TSE:6545
internet infinity — Q2 FY2018 Earnings Presentation
48 slides from internet infinity's earnings presentation, Nov 22, 2017
Slide 1: Second Quarter of the Fiscal Year Ending March 31, 2018 Results Briefing Materials
Second Quarter of the Fiscal Year Ending March 31, 2018 Results Briefing Materials internet infinity INC. Securities code: 6545 November 22, 2017 Copyright © internet infinity INC. All Rights Reserved.
Slide 2: Table of contents
Table of contents 1. Second quarter of the fiscal year ending March 31, 2018 - Summary of business results 2. Company outline 3. Business lines 4. Second quarter of the fiscal year ending March 31, 2018 - Financial summary 5. Fiscal year ending March 31, 2018 - Financial results projections 6. Topic
Slide 3: Summary of business results
Second quarter of the fiscal year ending March 31, 2018 Summary of business results
Slide 4: Sales and earnings increased strongly compared with the year-earlier period
Second quarter of the fiscal year ending March 31, 2018 - Summary of business results Sales and earnings increased strongly compared with the year-earlier period Sales Operating Net income for income the quarter +18.9% 1,625 +150.5% +240.8% 75 111 1,366 44 22 2Q 2Q 2Q 2Q 2Q 2Q 03/2017 03/2018 03/201
Slide 5: Company outline
Company outline
Slide 6: Company outline
Company outline Established May 7, 2001 Capital 211,170,300 yen (as of September 30, 2017) Head office Hamarikyu Parkside Place 15F, 5-6-10 Tsukiji, Chuo-ku, Tokyo, 104-0045 location Representative Representative director Keiichi Beck ISMS certification acquisition Corporate officers Executive direc
Slide 7: 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 fields of IIF> innovation and proactive endeavor Seven
Slide 8: Company timeline
Company timeline Roll-out of new healthcare services through on-site and online operations Sales Initiation of operations surrounding life span Rapid extension in health Importance of care managers coming into focus growth 2011 Pioneering the first network created Start of "Record in the industry bo
Slide 9: Business lines
Business lines
Slide 10: Business lines
Business lines Business activities in two segments comprised of Healthcare Solution Business and Home-Centered Service Business operations Healthcare Solution Business Launch of business operations pivoted on the care manager member base of the "Care Management Online" portal site Record Book Bu
Slide 11: 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 Care plan introduce eldercare preparation service companies in accordance with care plans Monthly visits Ca
Slide 12: Strength of the company: Care Management Online
Strength of the company Care Management Online Running Registration free of charge Japan's largest care manager operations support portal site Total number of care managers in Japan 60 Number of registered care managers Around % (around 87,000) Number of registered site users Around 140 thousand * A
Slide 13: Care Management Online has established itself 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 various documents required for long-term care forms, sa
Slide 14: Japan's largest care manager network capable of 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 Running Japan's Web On site Care managers make monthly visits largest care to elderc
Slide 15: Record book
"Record book" The Record Book Business offer 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 pat
Slide 16: Customer attraction power of Web-based and on-site operations
"Record book" Customer attraction power of Feature 3 Web-based and on-site operations 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 manager
Slide 17: 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 • Provision of Care Management Research informatio
Slide 18: Example case: marketing support for a major food manufacturer
(Example case) Marketing support for the senior consumer market Major food manufacturer Marketing support for eldercare food product development and manufacture Development and ① Request for eldercare food product sampling research manufacture of ② Request for advertisement postings on Care Manageme
Slide 19: Support in reconciling employment duties and eldercare requirements
Web Solution - Support in reconciling employment duties and eldercare requirements Adopted by over 50 companies with 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 20: Financial summary
Second quarter of the fiscal year ending March 31, 2018 Financial summary
Slide 21: Favorable results leading to revised up second-quarter forecasts
Second quarter of the fiscal year ending March 31, 2018 - Financial summary Favorable financial results development leading to revised up second-quarter financial results forecasts 2Q FY03/2018 Rate of change Rate of change Original forecast 2Q FY03/2018 compared with compared with (Unit: million ye
Slide 22: Transition of sales, operating income, and income margins (quarterly)
Transition of sales, operating income, and income margins (quarterly) Operating income margin strongly improved on favorable performance of Record Book Business Net sales Operating income Compared with the year- Compared with the year- earlier period: +18.9% earlier period: +150.5% (Unit: million ye
Slide 23: Analysis of change in operating income
Analysis of change in operating income +67 million yen (+50.5%) Effects from higher sales at Web Solution Business due to increased projects: +42 million yen Effects from higher sales at Record Book Business due to new eldercare centers: +64 million yen Other factors: 111 million yen +13 million yen
Slide 24: Healthcare Solution Business posted strong growth
Second quarter of the fiscal year ending March 31, 2018 - Financial results breakdown by segment Healthcare Solution Business posted strong growth Sales breakdown by segment (Unit: million 2Q 2Q Rate of yen) FY 03/2017 FY 03/2018 change (Unit: million yen) Healthcare Healthcare Solution 718 959 33.5
Slide 25: Financial results of Healthcare Solution Business
Second quarter of the fiscal year ending March 31, 2018 - Financial results of Healthcare Solution Business Financial results overall were driven by Record Book Business +33.5% compared with the year-earlier period (Unit: million yen) Second quarter of the Second quarter of the Compared with the fis
Slide 26: Transition of the number of Record book care centers
Second quarter of the fiscal year ending 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 Transition of the number of 1 care centers (+1 compared with "Record book" care centers the end of
Slide 27: Newly opened Record book care centers (April - October)
Newly opened "Record book" care centers (April 1 - October 2) "Record book" care center openings increasing also at the regional level Existing franchisees have been steadily increasing new openings on the merits of favorable care center operating ratio and customer attraction power Care centers of
Slide 28: Full fiscal year ending March 31, 2018 Financial results projections
Full fiscal year ending March 31, 2018 Financial results projections
Slide 29: Fiscal year ending March 31, 2018 - Financial results projections
Fiscal year ending March 31, 2018 - 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 Web Solution Business With a steady earnings base being built, operating inc
Slide 30: Projections and points of note by segment
Fiscal year ending March 31, 2018 - Financial results projections and points of note breakdown by segment Growing number of "Record book" care centers Healthcare ・Priority areas : Kinki, Hiroshima, Fukuoka, Sendai (primarily franchise roll-out areas) Solution Making effective use of the Meitetsu bra
Slide 31: Topics
Topics
Slide 32: 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 33: 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 34: Meitetsu Life Support Co., Ltd. joint-venture company
Topics Meitetsu Life Support Co., Ltd. established as a joint- venture company with Nagoya Railroad Co., Ltd. In operation since October 2017 Nagoya Railroad Co., Ltd. and internet June 2017 infinity enter into a collaborative agreement and establish joint-venture company Meitetsu Life Support Co.,
Slide 35: Smartphone app for 5-minute daily exercise program
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 36: CMO Answer app for conversations among 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 37: Growth strategies
Growth strategies
Slide 38: Growth strategies
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. 37
Slide 39: 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 specialized Franchise initiatives on major cities Increase the number of fran
Slide 40: 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 Active seniors in 2020 (Unit: 10,000 persons) 4,000 Other (mainly act
Slide 41: Start of Smart Times fitness business
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 Rising percentage of members Fitness a
Slide 42: 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 requests from corporations Data accumulation
Slide 43: New services by 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 Increase in the Strengthening of the Aggregation (1.2 number of number of care marketing support million persons) of regis
Slide 44: Medium and long-term growth strategies
Medium and long-term growth strategies Aim to expand target strata and raise enterprise value by strengthening healthcare Enterprise value platforms 3 Expansion of target strata Roll-out of fitness business (non-insurance) for active seniors, forecast to reach around 30 million persons by 2020. Prov
Slide 45: Supplementary information
Supplementary information
Slide 46: Balance sheet
Second quarter of the fiscal year ended March 31, 2017 - Balance sheet (Unit: million yen) FY 2Q FY Change in FY 2Q FY Change in 03/2017 03/2018 amount 03/2017 03/2018 amount Current assets 1,031 975 -55 Current liabilities 807 651 -155 Cash and deposits 442 310 -132 Short-term loans payable 350 90
Slide 47: Cash flows
Second quarter of the fiscal year ended March 31, 2017 - Cash flows (Unit: million yen) Second quarter of Second quarter of the Compared with the the fiscal year fiscal year ended year-earlier period ending March 31, (change in amount) March 31, 2017 2018 Cash flows from operating activities 7 107 +
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