Sharingtechnology. Inc · TSE:3989
Sharingtechnology — FY2024 Earnings Presentation
43 slides from Sharingtechnology's earnings presentation, Nov 14, 2024
Slide 1: September 2024 Financial Results Briefing Document
September 2024 Financial Results Briefing Document (Disclosure on business plans and matters related to high growth potential) November 14, 2024 1
Slide 2: Topics
Topics FY2024 ● Sales 7,502 mil.yen (YoY 121%), Operating profit 1,790 mil.yen (YoY 144%) Actual ● Year-end dividend 15 yen (First) & Share repurchase 500 mil.yen Group ● FY2024 Sales 761 mil.yen , The most recent QTR Sales YoY 216% Company ● Expand areas of current genres & Start new genres FY2025
Slide 3: Topics: Summary of Financials and Shareholder returns
Topics : Summary of Financials and Shareholder returns FY2024 Actual FY2025 Forecast 8,600 mil.yen Sales revenue 7,502 mil.yen (YoY 115%) 2,000 mil.yen Operating profit 1,790 mil.yen (YoY 112%) 1,400 mil.yen Net income※1 1,467 mil.yen (YoY 95%) Dividend per share 15.00 yen 30.00 yen （Total Dividend
Slide 4: Table of contents
Table of contents 01 FY2024 Performance reporting 02 Growth Strategy 03 Forecast of FY2025 & Shareholder returns 04 Supplementary materials 4
Slide 5: FY2024 Performance reporting
FY2024 Performance reporting 5
Slide 6: Fiscal Year ending Sep. 30, 2024 results
Fiscal Year ending Sep. 30, 2024 results FY2024 Sales revenue ended in YoY 121%, due to sales increase of main genres and expansion of Az support. Operating profit ended in YoY 144%, due to sales increase and continuous appropriate control of Advertisement cost ratio. Despite the effect of tax effec
Slide 7: 4Q (3 months) Fiscal Year ending Sep. 30, 2024 results
4Q (3 months) Fiscal Year ending Sep. 30, 2024 results 4Q Sales revenue ended in YoY 115%, due to sales increase of main genres and expansion of Az support. Operating profit ended in YoY 138%, due to sales increase and continuous appropriate control of Advertisement cost ratio. Net income largely in
Slide 8: Analysis of YoY change of Operating profit of FY2024
Analysis of YoY change of Operating profit of FY2024 Starting from 1,240 mil.yen of Operating profit of FY2023, Sales revenue increased. Though COS and Advertisement cost increased along with Sales revenue increase, both cost ratios to Gross profit are maintained at the certain level. Consequently,
Slide 9: Sales revenue trend of Household problems business
Sales revenue trend of “Household problems” business FY2024 4Q Sales revenue ended in YoY 115%, hitting a record high. Sales revenue ［Unit：mil.yen］ FY2022 FY2023 FY2024 YoY 119％ 124％ 131％ 127％ 127％ 138% 147％ 148％ 134％ 119% 117％ 115％ QoQ 99％ 91％ 127％ 112％ 99％ 99% 135％ 112% 90％ 87% 134％ 111% 9
Slide 10: Transition of KPI of Sales revenue
Transition of KPI of Sales revenue “Number of inquiries” is gradually turning from levelling off trend to increasing trend since FY2023. “Unit price per inquiry” is on the upward trend, thanks to optimization of matching methodology and increase of Our-own service (includ. Az support consolidated si
Slide 11: Transition of KPI of Business
Transition of KPI of Business FY2024 Sales revenue increased continuously. COS increased along with Our-own service (includ. Az support) increase. Advertisement cost ratio was kept around proper 47%. Ratios of Labor cost of Call center, Fixed cost were also kept stably. Consequently, Operating profi
Slide 12: Transition of KPI of Expense
Transition of KPI of Expense Cost of Sales ratio Advertisement cost (PPC) ratio Cost (service) ratio rising along with increasing Improving from FY2021 in the rapid worsening Our-own service (includ. Az Support). competition. Since FY2022, keeping certain level. Labor cost of Call Center ratio Fixed
Slide 13: For Satisfaction of Customers and Partner Stores
For Satisfaction of Customers and Partner Stores Both Claim ratios from customers and partner stores are continuously low level. For further satisfaction, we will make the best effort to implement friendly platform both for customers and partner stores. Just after some increase in FY2023 2Q, both KP
Slide 14: Growth Strategy
Growth Strategy 14
Slide 15: Our strength brought by improvement of Service Quality
Our strength brought by improvement of Service Quality Since FY2019, we have pursued Service Quality improvement, which started to bring apparent rise of profit from FY2022. SHARETECH will continue this policy, and aim business expansion. Improvement of Service Quality directly leads to rise of Clos
Slide 16: Rationale of M&A of Service provider
Rationale of M&A of Service provider SHARETECH carried out its first M&A of a Service provider in Apr. ‘23. Az support after M&A has consistently achieved good performance. With expanding Az support, SHARETECH will seek for M&A opportunity, examining closely. Quantitatively, Az support (761 mil.yen
Slide 17: KFS of Rapid Expansion of Az support
KFS of Rapid Expansion of Az support (Service Group Company) In our industry, attracting customer is indispensable for business expansion. Ordinary service providers have to make a trade-off between “Attracting customers” and “Quality” due to management resource constraints. Meanwhile, a service pro
Slide 18: Transition of Az support QTR Business Result
Transition of Az support QTR Business Result Az support acquired in Apr. ‘23, turned to surplus, right after M&A. Since FY2024, Az support has been focusing on expansion, and resulted in amazing business expansion with 4Q Sales (YoY 216%). Despite a prior investment (mostly, labor cost), Operating p
Slide 19: Forecast of FY2025 & Shareholder returns
Forecast of FY2025 & Shareholder returns 19
Slide 20: Forecast of FY2025
Forecast of FY2025 For forecast of FY2025, Sales revenue and Operating profit will increase to 8,600 mil.yen, and 2,000 mil.yen, respectively. Net income will decrease to 1,400 mil.yen, due to the effect of tax effect accounting. FY2025 Forecast FY2024 Actual 8,600 mil.yen Sales revenue 7,502 mil.ye
Slide 21: Rationale of Forecast of FY2025
Rationale of Forecast of FY2025 Earnings Forecast is based upon FY2024 Actual. COS ratio and Fixed cost will rise along with increase of Our-own service (includ. Az support), etc. Meanwhile, ratios of Advertisement cost and Call Center labor cost are expected at the same level. Consequently, Operati
Slide 22: Forecast of FY2025 Shareholder returns
Forecast of FY2025 Shareholder returns SHARETECH decided 15 yen of dividend (first) and 500 mil.yen of share repurchase in FY2024. Continuing investment, dividend will be increased to 30 yen in FY2025. FY2025 FY2024 Net income※1 1,400 mil.yen 1,467 mil.yen Earnings per share※2 61.22 yen 64.17 yen Di
Slide 23: Supplementary materials
Supplementary materials 23
Slide 24: Mission: Contributing to a safe life by creating a new mechanism
MISSION Contributing to a safe life by creating a new mechanism We will provide peace of mind for customers with “Household problems” at the earliest possible moment. We hope that existence of our service will improve the sense of ease of customers with respect to future "Household problems". We hav
Slide 25: Values
VALUE Speed ✕ Flexibility Meet the needs of customers, service provider stores, associates, the times, at the earliest time possible. We will run to the clear and present goal at top speed. Besides that, we will keep running at real top speed by coping with changes of needs flexibly. Diversity ✕ Tog
Slide 26: Solving Household problems
Solving “Household problems” We have contracts with about 6,800 partner stores nationwide that can provide support for various “Household problems”. We accept customers who visit our website or call us, and introduce them to our partner stores. Over 150 genres From light work to renovations Accepted
Slide 27: Type of our Websites
Type of our Websites We operate 2 types of websites relating to “Household problems” business. One is “Seikatsu 110”, a portal site that posts multiple genres onto a single site. Another is vertical media websites that specialize in specific genres. The portal site mainly receives inflow from organi
Slide 28: Business Flow
Business Flow Customers with “Household problems” contact us through our website. Then, we match the most appropriate Partner store judging (1) Genre (2) Location (3) Preferred service date and time. We receive Commission either after service completion, or after introducing. ①Inquiry ②Matching ⑤Pay
Slide 29: Profit Model
Profit Model Our value source (Value) is defined as our ability to attract customers, our matching system to solve customers’ problems, and excellent partner stores network. Each “Number of inquiries” and “Unit price per inquiry” is represented as numeric value. “Number of inquiries” is broken down
Slide 30: Issues at the Market and Our Promise of Value
Issues at the Market and Our Promise of Value The issues of “Household problems” business are recognized as “Unkown service provider” “Unkown reasonable price” “Unkown service quality”, until now. we have been aiming at normalization of the industry by “Effective matching” “Reasonable price” “High q
Slide 31: Our Promise of Value: Matching
Our Promise of Value ～ Matching ～ To optimize “Matching”, the prerequisite of “Household problems” business, we have developed our original system based on the network with Service Providers. We will continue to optimize “Matching” by feedback from Customers and Service Providers, and accumulated hi
Slide 32: Our Promise of Value: Reasonable price
Our Promise of Value ～ Reasonable price ～ To attain “Reasonable price”, the issue of “Household problems” business, we have been eliminating unfair overcharging based on historical data and feedback from Customers. The recent problem consciousness of the market also supports our effort to “Reasonabl
Slide 33: Our Promise of Value: High quality
Our Promise of Value ～ High quality ～ To achieve “High quality” of “Household problems” business, we have been improving Partner Stores network based on feedback from Customers. For further understanding of the industry and clarification of ideal standard, we will enhance our own service provision b
Slide 34: Market of Household problems business
Market of “Household problems” business Domestic market of “Household problems” business is approx. 14 tri.yen, and of that, the market of low-price light work is estimated 5 tri.yen. With increase of the aged and people living alone, this market is expected to grow further. In addition, with an ong
Slide 35: Competitors and our Target Position
Competitors and our Target Position Competitors in “Household problems” business are mapped as follows in terms of the number of genres, platform, and service provider store. We assume there exists no portal platform such as restaurants search, beauty service. For this business opportunity, by expan
Slide 36: Follow wind of Market opportunity
Follow wind of Market opportunity The increase of single and aged families, and spread of EC service will enlarge the market of our “Household problem” business. Number of Family by increase Share of aged over BtoC Service : EC Market size¹ due to increase of living alone² 65 years old³ (Tril. Yen）
Slide 37: SHARETECH'S ESG/SDGs
SHARETECH’S ESG/SDGs As a member of society, we, a business entity, recognize the importance ESG(Environment, Society, Governance) and SDGs(Sustainable Development Goal), along with improvement of Corporate Value. We will manage our Company to fulfill social responsibility and contribute to sustaina
Slide 38: Recognized Risk and Countermeasures
Recognized Risk and Countermeasures Frequency/ Area Major Risk Contermeasure Time/Impact Due to delay of securing engineers, etc., Business Low/ failure to respond to change of market Always collect industry information, hire Environment: Mid.& Long-term/ environment may adversely effect on the engi
Slide 39: Monthly Sales revenue
Monthly Sales revenue “Household problems” business has seasonality (e.g. Summer with pest control and mowing/ gardening, early autumn with typhoon damages on residential houses). Such a seasonality continues, and Sales revenue are expected to grow in the current fiscal year. 3Q-4Q 3Q-4Q 3Q-4Q 3Q-4Q
Slide 40: Fiscal Year ending September 30, 2024 Balance sheet
Fiscal Year ending September 30, 2024 Balance sheet ［million.yen］ Current year-end 2023 Previous year-end 2022 YoY change （As of Sep. 30,2024） （As of Sep. 30,2023） Current assets 5,273 2,842 +2,431 Fixed assets 1,045 1,283 (238) Total assets 6,319 4,126 +2,192 Current liabilities 2,063 1,443 +619 Fi
Slide 41: Fiscal Year ending September 30, 2024 P/L statement
Fiscal Year ending September 30, 2024 P/L statement ［million.yen］ Current Fiscal Year Previous Fiscal Year YoY change (FY2024) (FY2023) Sales revenue 7,502 6,228 +1,274 Cost of sales 631 405 +225 Gross profit 6,871 5,822 +1,048 SGA expense 5,161 4,577 +584 Operating profit 1,790 1,240 +549 Pre-tax p
Slide 42: Company profile
Company profile ● Company name SHARINGTECHNOLOGY INC. ● Head Office JP Tower Nagoya 19F, 1-1-1 Meieki, Nakamura-ku, Nagoya-shi, Aichi 450-6319 ● TEL TEL：+81-52-414-5919 ● Executive officers Representative Director, CEO Nobuhiro Moriyoshi Director, COO Yoshitaka Katayama Director Eisaku Ueda Director
Slide 43: Precautions relating to future forecasts
Precautions relating to future forecasts The disclosed documents include matters relating to the future outlook of forecasts, perspectives, goals and plans relating to SHARINGTECHNOLOGY Group, and have been generated on the basis of forecasts at the time of disclosure based on the information that c