Visional, Inc. · TSE:4194
Visional — Investor Presentation (June 2025)
70 slides from Visional's investor presentation, June 2025
Slide 1: Our Business Model and Strategy
Our Business Model and Strategy June 2025 Visional, Inc.
Slide 2: Table of Contents
Table of Contents 1. Introduction to Visional Group 2. About BizReach 3. About HRMOS 4. Future Growth Strategy Appendix 2
Slide 3: 1. Introduction to Visional Group
1. Introduction to Visional Group 3
Slide 4: Visional Group Mission
Visional Group Mission Persistent Creation of New Possibilities. Manpower Our vision is to tap into the power of the internet Supporting new possibilities for to support the innovative progress of our world Manpower, Goods and Capital by persistently transforming social obstacles into new possibilit
Slide 5: Growth Trajectory of Visional Group
Growth Trajectory of Visional Group(1) (Third-Party Security Assessment) In addition to a solid track record of sustained growth in HR Tech, Visional is committed to incubating new businesses, accelerating the digital transformation (DX) of various industry verticals (Internal BizReach) (Expense Man
Slide 6: Visional Group Consolidated Financial Results
Visional Group Consolidated Financial Results Driven by solid demand for professionals, FY consolidated net sales grew 17.5% YoY with operating profit margin of 27.0% balancing growth investments and cost discipline FY Consolidated Net Sales(1) YoY Growth FY Consolidated Operating Profit (1) (2) Mar
Slide 7: Visional Group at a Glance
Visional Group at a Glance We have accelerated business incubation in new industry verticals, supported by BizReach as a profit engine Service Overview (as of June 12, 2025) FY2024/7 Net Sales Breakdown by Segment and Business(2) HR matching platform for professionals Human capital management platfo
Slide 8: Message to Shareholders and Investors
Message to Shareholders and Investors (Committed since IPO) Persistent Creation of New Possibilities. We will tap into the power of the internet to support the digital transformation of our society. We will continue to maximize mid-to-long term enterprise value by persistently transforming social ob
Slide 9: 2. About BizReach
> VISIONAL 2. About BizReach
Slide 10: BizReach Full Year Net Sales Results
BizReach Full Year Net Sales Results Capturing the momentum created by the rebound of hiring demand from COVID-19, strong growth in net sales achieved whilst realizing a maintained expansion of operating profit. Normalized mid-term net sales growth rate target of 15% YoY, profit margin target of 40%
Slide 11: BizReach: Disruption of the Professional Recruitment Market
BizReach: Disruption of the Professional Recruitment Market Similar to the structural transformation of the retail market caused by e-commerce(1), BizReach pioneered the concept of “Direct Recruiting” by creating an online career networking platform, which raised the transparency and efficiency of t
Slide 12: Unique “Multi-Revenue Stream” Business Model
Unique “Multi-Revenue Stream” Business Model The financially attractive and unique business model targeting professional job seekers(1) is the foundation behind the scalability of BizReach Access database Post job listing Send direct message to job seeker Direct Employer (HR/Recruiter) Receive reply
Slide 13: Pricing Plan for BizReach
Pricing Plan for BizReach BizReach net sales consists of Recurring Revenue (access fee to BizReach platform) and Performance Revenue (fee received once placement is made). This allows financial stability during economic downturn Recurring Revenue(1)(2) Performance Revenue 15% of the candidate’s expe
Slide 14: FY2024/7 BizReach Net Sales Breakdown
FY2024/7 BizReach Net Sales Breakdown Unique mix of recurring revenue(1) and performance revenue(2) FY2024/7 BizReach Business Revenue Breakdown by FY2024/7 BizReach Business Revenue Breakdown by Fee Type(3) Direct Employers / Headhunters(3)(4) Performance Revenue Headhunters Recurring Revenue Direc
Slide 15: Stable BizReach Customer Base
Stable BizReach Customer Base Our net sales has grown supported by a stable customer base built over the years By Customer Acquisition Timing (Sales Order Amount)(1) • The left chart indicates sales order amount of each Total sales amount from direct employers and headhunters fiscal year from direct
Slide 16: Main KPIs - BizReach
Main KPIs - BizReach KPIs are growing steadily, building a strong customer base driven by penetration of direct recruiting and increasing job seekers # of Registered Direct Employers (1) # of Scoutable Job Seekers (3) 31,700+ MM Job Seekers 2.58+ 26,200+ 2.14+ 21,100+ 1.70+ 17,100+ 1.38+ 13,800+ 1.1
Slide 17: BizReach is Under-penetrated and Significant Growth Opportunities Exist
BizReach is Under-penetrated and Significant Growth Opportunities Exist Increased job mobility is the biggest growth driver. We will therefore increase our penetration within the professional population, and accelerate new client acquisitions and increase wallet share of existing clients Growing # o
Slide 18: Customer Expansion Potential for BizReach
Customer Expansion Potential for BizReach Customer base has expanded from Japan branch of global enterprises and startups to large Japanese enterprises, but still massive untapped wallet exists for company-wide introduction and new customers Illustration of Customer Base Expansion Trajectory Phase1
Slide 19: Current State of Workstyles in Japan and Further Growth Opportunities
Current State of Workstyles in Japan and Further Growth Opportunities Japanese recruitment market is undergoing a structural stage of expansion due to the ongoing changes in workstyle, which will increase liquidity in the Japanese labor market going forward Significant Room for Job Mobility in Japan
Slide 20: “Workstyle” of Japan vs Other Countries
“Workstyle” of Japan vs Other Countries Japan has a high portion of employees with long tenure. Other countries are shifting its labor force to segments of higher labor demand Global Comparison of Employment Ratio by Length of Service(1) Why Increased Labor Liquidity is Required Mid-career hiring re
Slide 21: Mobility of Professionals
Mobility of Professionals Although no significant changes observed in total full-time job changes pre/post COVID-19, labor liquidity within the professional segment has increased. We expect further expansion of mid-career recruiting as demand for professionals increases Job Change Ratio based on Inc
Slide 22: 3. About HRMOS
3. About HRMOS > VISIONAL
Slide 23: Our Vision of Creating an HCM Ecosystem
Our Vision of Creating an HCM Ecosystem Seamless integration of BizReach and HRMOS to expand a unified, data driven HCM Ecosystem that enables investment and management of human capital to drive business competitiveness Launched in January 2025 Launched in July 2024 23
Slide 24: HRMOS Full Year Net Sales Results
HRMOS Full Year Net Sales Results Net sales of each HRMOS services grew strongly whilst we continue with product development. FY2024/7 YoY growth appears particularly high due to the impact of M&A. HRMOS aims to become profitable in FY2026/7. We may strategically change the timing of profitability b
Slide 25: Main KPIs – HRMOS (HRMOS ATS and HRMOS Talent Management)
Main KPIs – HRMOS (HRMOS ATS and HRMOS Talent Management) ARR reached JPY 2.77Bn (29.8% YoY growth) at the end of FY2024/7 driven by solid growth of customers. KPIs below represent HRMOS ATS and HRMOS Talent Management total ARR(1)(2) 2.77Bn (+29.8% YoY ) # of Unique Paying 1,947 (+25.9% YoY ) JPY B
Slide 26: 4. Future Growth Strategy
4. Future Growth Strategy > VISIONAL
Slide 27: Reiterated: Our Vision of Creating an HCM Ecosystem
Reiterated: Our Vision of Creating an HCM Ecosystem Seamless integration of BizReach and HRMOS to expand a unified, data driven HCM Ecosystem that enables investment and management of human capital to drive business competitiveness Launched in January 2025 Launched in July 2024 27
Slide 28: Evolution of BizReach Using “Data x AI”
Evolution of BizReach Using “Data x AI” 28
Slide 29: Reiterated: About BizReach (1)
Reiterated: About BizReach (1) BizReach pioneered the concept of “Direct Recruiting” in Japan in 2009, connecting direct employers and job seekers DX of Retail Market DX of Professional Recruitment Market Conventional Conventional Manufacturer Retail Channel Consumer Job seeker Recruitment Employer
Slide 30: About BizReach (2)
About BizReach (2) BizReach has accumulated 16 years of know-how and data of the Japanese hiring market # of Registered Direct Employers(1) # of Scoutable Job Seekers(2) MM Job Seekers 31,700+ 2.58+ 26,200+ 2.14+ 21,100+ 1.70+ 17,100+ 1.38+ 13,800+ 1.11+ 11,200+ 0.87+ FY19/7 FY20/7 FY21/7 FY22/7 FY2
Slide 31: “Data x AI” Enables “Speed x Matching”
“Data x AI” Enables “Speed x Matching” In order to maximize matching opportunities of individuals and positions with speed, high quality resumes/CVs and position information are critical Content of Resume/CV Matching Opportunities Position Information Individuals Direct Employers (Job Seekers) Time
Slide 32: Case Study: “Speed x Matching” Using BizReach AI
Case Study: “Speed x Matching” Using BizReach AI Issue Experience, time and effort is required to put into words your work history and skills Solution GPT Model Resume / CV Creation Tool(1) Patented By answering 2 types of questions (job category and business area) the GPT model will automatically d
Slide 33: Case Study: “Speed x Matching” Using BizReach AI
Case Study: “Speed x Matching” Using BizReach AI Results Reduces time and effort required to develop a resume / CV Verified that there is 40% increase in scout messages received (1) (Research comparing users who have updated his/her resumes / CVs using the tool with users who have not used the tool)
Slide 34: Case Study: “Speed and Matching” Using BizReach AI
Case Study: “Speed and Matching” Using BizReach AI Issue Increase in highly professional or innovative positions Difficult to develop position information and qualifications Solution GPT Model Job Opening / Position Creation Tool(1) Patented Proprietary logic based on the know-how and data of BizRea
Slide 35: Case Study: “Speed x Matching” Using BizReach AI
Case Study: “Speed x Matching” Using BizReach AI Results In as short as 30 seconds, recommends a highly accurate position information that attracts professionals whom direct employers are looking for (1) Note: (1) For details, please refer to the press release announced by BizReach, Inc. on November
Slide 36: “Data x AI” Enables “Speed x Matching”
“Data x AI” Enables “Speed x Matching” We view technology investment as a source of competitive advantage. We ranked as #1 in Japan in terms of the number of generative AI patent applications published in the past fiscal year(1) Generative AI-Related Patents (Applications Published Examples of Gener
Slide 37: Further Changes in Japan’s Work Styles
Further Changes in Japan’s Work Styles 37
Slide 38: “Strengthening Human Capital” is a Top Management Concern
“Strengthening Human Capital” is a Top Management Concern Strengthening and applying human capital are top management issues by Japanese companies Management Concerns(1) Now (2024) In 3 years Strengthening human capital (hiring, retention, training, 47.7 48.3 and responding to diversity Increasing r
Slide 39: The Beginning of the Era of Major Job Transitions
The Beginning of the Era of Major Job Transitions Prospective job changers has been on the rise since COVID-19 and exceeded 10 MM individuals for the first time in 2023(1). The era of major job transitions has begun Prospective Job Changes (All employed individuals)(1) MM Job Seekers Prospective Job
Slide 40: Outflow of Employees is a Management Concern (1)
Outflow of Employees is a Management Concern (1) Q. Have the number of employees who left the company increased in the last year?(1) Not increasing Increasing 58.8% 21.2% 20.3% Somewhat not answered that employees who have left increasing the company increased in the last year Somewhat 20.1% increas
Slide 41: Outflow of Employees is a Management Concern (2)
Outflow of Employees is a Management Concern (2) Q. Do you think you can build your desired career at the company you currently belong to?(1) Agree 7.2% 66.6% answered that they cannot build their desired career Disagree 29.5% Somewhat agree 26.2% at the company they currently belong to Somewhat dis
Slide 42: Employers are no longer choosing who works for them
Employers are no longer choosing who works for them. Employers need to be chosen by those that work for them The urgent issue is to turn the attention not only to external recruitment but also to internal talent and change the awareness of management to create a company at which “employees want to k
Slide 43: Outflow of Employees
Outflow of Employees >> VISIONAL
Slide 44: There are Issues in How Companies Engage With Employees
There are Issues in How Companies Engage With Employees External Talent Offers to leverage their aspiration, skills and experience Employers Positions with job satisfaction Send attractive scouts to be chosen by external talent 44
Slide 45: There are Issues in How Companies Engage With Employees
There are Issues in How Companies Engage With Employees External Talent Employees Offers to leverage their aspiration, Internal transfers without considering skills and experience their aspiration, skills, and experience Employers Don’t know what kinds Positions with job satisfaction of positions ex
Slide 46: There are Issues in How Companies Engage With Employees
There are Issues in How Companies Engage With Employees External Talent Employees Offers to leverage their aspiration, Internal transfers without considering skills and experience their intention, skills, and experience Employers Don’t know what kinds Positions with job satisfaction of positions exi
Slide 47: “Internal Scouting” Activities
Addressing the Outflow of Employees by BizReach “Internal Scouting” Activities 1 Visualization of human capital data and internal positions accurately and in real time 2 Activation of opportunities to find internal positions such as internal job posting etc. 3 Independent and proactive scouting from
Slide 48: Preventing the Outflow of Employees by Internal Scouting Activities
Preventing the Outflow of Employees by Internal Scouting Activities “Internal BizReach by HRMOS” 48
Slide 49: Leveraging BizReach Know-How and Data to “Internal BizReach”
Leveraging BizReach Know-How and Data to “Internal BizReach” In the end of January 2025, we launched “Internal BizReach” which prevent the outflow of employees by “Internal Scouting” activities. Internal BizReach Model Individuals External Recruitment Employers Individuals Internal Recruitment Emplo
Slide 50: Why BizReach? Values We Deliver (BizReach AI)
Why BizReach? Values We Deliver (BizReach AI) BizReach has 16 years’ worth of know-how and data of the Japanese hiring market, in addition to our generative AI technology (ranked as #1 in Japan published in the past fiscal year)(1) Internal resumes Combining hiring market data and internal positions
Slide 51: Internal BizReach Model
Internal BizReach Model Search and Recommendation by BizReach AI Position Search / Internal Job Posting Internal Matching Internal Resume / CV Internal Position Automated creation by BizReach AI Automated creation by BizReach AI Talent Search / Internal Scouts Search and Recommendation by BizReach A
Slide 52: Our Vision of the Future Work Styles
Our Vision of the Future Work Styles Optimal HCM (Human Capital Management) requires gathering and analyzing of job market and employee data in real time and in a unified manner and use this for internal matching and development of recruitment strategies Talent search and Internal talent search and
Slide 53: Our Thoughts and Aspirations (1)
Our Thoughts and Aspirations (1) The beginning of an era of major job transitions. The outflow of employees has become a management issue for companies In recent times, “job changes” have become “a positive option for career development”, leading to an unprecedented activation of the job market. Peo
Slide 54: Our Thoughts and Aspirations (2)
Our Thoughts and Aspirations (2) To address the new challenge of the outflow of employees, companies must put a stop to it through the use of “Internal Scouting” Many companies are focusing on external talent, actively sending scouts offering attractive conditions and positions that align with the c
Slide 55: Our Thoughts and Aspirations (3)
Our Thoughts and Aspirations (3) A new service by BizReach launched to prevent the outflow of employees with “Internal Scouting” A new service is launched to prevent the outflow of employees with “Internal Scouting,” a service only BizReach can provide. This service is called “Internal BizReach” and
Slide 56: Capital Allocation to Increase Enterprise Value
Capital Allocation to Increase Enterprise Value To increase our enterprise value in the long term, whilst we commit to growth and profit expansion of BizReach, we will invest in other businesses and M&A. If opportunities that we believe will increase our enterprise value arises, we will prioritize i
Slide 57: Our Framework for Building Businesses
Our Framework for Building Businesses Building on the proven set of principles and approaches that enabled our prior successes, we will continue to evaluate all potential areas of growth that will emerge from seismic shifts and technological innovation in Japan Guidelines for deciding on a market an
Slide 58: Other Business Investments: About Incubation Segment
Other Business Investments: About Incubation Segment Building businesses in potential areas of growth emerging from seismic shifts and technological innovation. Driving mid to long term growth whilst contributing to improving Japan’s productivity Issue 1 Issue 2 Issue 3 Lack of capital liquidity Del
Slide 59: Appendix
Appendix > VISIONAL 59
Slide 60: Corporate Overview
Corporate Overview Company Name Visional, Inc. Address 2-15-1, Shibuya, Shibuya-ku, Tokyo CEO Representative Director and CEO Soichiro Minami Market Segment Tokyo Stock Exchange Prime Market # of Employees 2,080 people (As of April 30, 2025) Share Capital JPY 6,531 MM (As of April 30, 2025) Business
Slide 61: Introduction to our Management Team (1)
Introduction to our Management Team (1) Soichiro Minami - Representative Director and CEO Satoshi Murata - Director After graduating from Tufts University in the U.S. in 1999, he joined the After graduating from the Faculty of Law at Aoyama Gakuin University in Investment Banking Division of Morgan
Slide 62: Introduction to our Management Team (2)
Introduction to our Management Team (2) Naoko Harima - Outside Director (Audit & Supervisory Maiko Chihara - Outside Director (Audit & Supervisory Committee Member) Committee Member) After graduating from the Faculty of Economics at Keio University in 2003, She graduated from the Faculty of Law at U
Slide 63: Visional Group Structure
Visional Group Structure Current Group Structure (As of April 30, 2025) HR Tech Segment Incubation Segment BizReach, ezSoft M&A Succeed, Trabox, Assured, Stanby, Inc 100%(2) Co.,Ltd. Inc. Inc. Inc. Inc. 100%(1) 100%(1) 100%(1) 100%(1) 40%(1)(3) Visional, Inc. (Holding Company) *8 other companies Not
Slide 64: Risks Related to Our Business (1)
Risks Related to Our Business (1) Below are some of the risks associated with our business model and strategy. Please refer to the risk section in our disclosure for details Risks Related to Our business Probability of Manifestation and Actions to Mitigate Risks Our results of operations could be ad
Slide 65: Risks Related to Our Business (2)
Risks Related to Our Business (2) Risks Related to Our business Probability of Manifestation and Actions to Mitigate Risks Security breaches or unauthorized access or use of our or our customers’ data could adversely affect our reputation and expose us to claims from customers and penalties from aut
Slide 66: Key Financials: Profit and Loss Statement (1)
Key Financials: Profit and Loss Statement(1) JPY MM FY19/7 FY20/7 FY21/7 FY22/7 FY23/7 FY24/7 Net Sales 21,492 25,879 28,698 43,954 56,273 66,146 YoY Growth (%) 36.9% 20.4% 10.9% 53.2% 28.0% 17.5% HR Tech Segment 21,175 24,914 27,052 41,791 53,685 63,791 YoY Growth (%) 36.2% 17.7% 8.6% 54.5% 28.5% 1
Slide 67: Reconciliation: Adjusted Operating Profit before Corporate Expense Allocation
Reconciliation: Adjusted Operating Profit before Corporate Expense Allocation Reconciliation of Adjusted Operating Profit before Adjusted Headcount by Function and Business (FY24/7 4Q)(5) Corporate Expense Allocation to Operating Profit JPY MM FY24/7 FY23/7 FY22/7 FY21/7 Adjusted % of subtotal for H
Slide 68: Key Financials: Balance Sheet (1)
Key Financials: Balance Sheet(1) JPY MM JPY MM FY19/7 FY20/7 FY21/7 FY22/7 FY23/7 FY24/7 FY19/7 FY20/7 FY21/7 FY22/7 FY23/7 FY24/7 Current Assets 7,515 12,137 29,532 36,743 48,902 65,652 Current Liabilities 5,190 5,290 9,046 13,988 16,328 21,869 Cash and Cash Accounts Payable 1,937 1,486 3,341 4,054
Slide 69: Key Financials: Cash Flow Statement (1)
Key Financials: Cash Flow Statement(1) JPY MM FY19/7 FY20/7 FY21/7 FY22/7 FY23/7 FY24/7 Cash Flows from Operating Activities Pre-tax Profit(1) 393 7,023 2,290 8,717 14,377 18,928 Depreciation and Amortization of Goodwill(1) 231 547 670 846 1,230 1,224 Gain on Transfer of Business - (4,799) - - - - I
Slide 70: Disclaimer
Disclaimer This document was prepared by Visional, Inc. (referred to as the “Company”, “Visional” or “we” herein) solely for informational purposes. This document does not constitute an offer to sell or a solicitation of an offer to buy any security of the Company in the United States, Japan or any