Slide 1: Financial Results Briefing, Fiscal Year Ending March 31, 2024
Financial Results Briefing The Fiscal Year Ending March 31, 2024 Full-year May 10, 2024 GEECHS Inc. TSE Standard Market: 7060 ©2023 GEECHS Inc.
Slide 2: Contents
Financial Results Briefing 1. Financial Highlights 2 2. Results by Segment 7 3. Medium-term Growth Strategy 17 4. Forecast for FY3/2025 21 5. Appendix 25 Contents 1 Fiscal Year Ending March 31, 2024 Full-year Financial Results Briefing ©2023 GEECHS Inc.
Slide 3: Financial Highlights for FY3/2024
Financial Results Briefing Financial Highlights Financial Highlights for FY3/2024 1 2 Fiscal Year Ending March 31, 2024 Full-year Financial Results Briefing ©2023 GEECHS Inc.
Slide 4: FY3/24 Full-year: Financial Highlights
FY3/24 Full-year : Financial Highlights Full-year consolidated sales exceeded 23 billion yen, 48.4% YoY growth. • While consolidated sales slightly fell short of the revised forecast, the operating profit achieved it and was revised upwardly. However, net income amounted to -1,473 million yen due to
Slide 5: Financial Highlights (Gross Sales, Operating Margin)
FY3/24 Full-year: Financial Highlights (Gross Sales, Operating Margin) ■ IT freelance matching business (Japan) performed well, with 4Q sales reached 5.9 billion yen. Sales increased by 83 million yen compared to the previous quarter, 41.9% YoY growth. (million yen) 7,000 ■ Sales 30.0% 5,952 ● Opera
Slide 6: Financial Highlights (EBITDA, Operating Profit)
FY3/24 Full-year: Financial Highlights (EBITDA, Operating Profit) ■ Operating profit for 4Q amounted to 33 million yen, showing an improvement from the previous quarter. ■ Full-year operating profit exceeded the revised forecast of 50 million yen, reached 90 million yen, resulting in the upward revi
Slide 7: Financial Highlights by Segment
FY3/24 Full-year: Financial Highlights by Segment ■ IT Freelance Matching Business (Japan) : Full-year sales exceeded 14 billion yen, achieving a record high. Full-year segment profit amounted to 1.1 billion yen, marking a robust YoY growth of 7.3%. ■ IT Freelance Matching Business (Overseas) : The
Slide 8: Results by Segment
Financial Results Briefing Results by Segment Financial Results for FY3/2024 2 7 Fiscal Year Ending March 31, 2024 Full-year Financial Results Briefing ©2023 GEECHS Inc.
Slide 9: IT Freelance Matching Business (Japan): Sales, Segment Income, Advertising Ratio
IT Freelance Matching Business (Japan) (Sales, Segment Income and Advertising Expense Ratio) ■ 4Q sales and segment income achieved a record high. Restraint in advertising expenses, resulting in an increase in 4Q (YoY) segment profit margin. ■ Take rate* is 17.6%, maintaining the same level to the p
Slide 10: IT Freelance Matching Japan: Freelancers Under Contract, Unit Price
IT Freelance Matching Business (Japan) (Freelancers Under Contract, Unit Price of Orders) ■ The number of man-months worked was 8,787, facing challenges in the first half of the year due to the economic normalization after Covid-19. However, in the second half, it significantly improved to 9,090 man
Slide 11: IT Freelance Matching Japan: New Business Partners, New Registrants
IT Freelance Matching Business (Japan) (New Business Partners, New Registrants) ■ The full-year number of new business partners increased by 178 companies, bringing the total number of business partners to 1,622. ■ The full-year number of new registrations for IT freelancers exceeded the previous ye
Slide 12: IT Freelance Matching Business (Japan): Profitability
IT Freelance Matching Business (Japan) (Profitability) ■ Despite an increase in CAC due to the strengthen of the marketing team, the LTV has grown, resulting in a rise in unit economics from 2.3 to 2.4 compared to the previous year. ■ This improvement is not only attributed to the robust market dema
Slide 13: IT Freelance Matching Business (Overseas): Sales, EBITDA, Segment Income
IT Freelance Matching Business (Overseas) (Sales, EBITDA and Segment Income) ■ The full-year sales fell short the revised forecast, reaching 7.1 billion yen, due to the delayed 4Q contribution of MSP projects. ■ Due to the performance falling below from the acquisition plan, impairment losses of 1,5
Slide 14: Seed Tech (Sales, Segment Income)
Seed Tech (Sales, Segment Income) ■ 4Q sales reached a record high of 84 million yen, marking 58.1% YoY increase. ■ Although the full-year sales slightly behind the revised forecast, offshore development performing strongly, resulting in 59.9% YoY significant growth. With the normalization post COVI
Slide 15: G2 Studios (Sales, Segment Income)
G2 Studios (Sales, Segment Income) ■ On account of revenues share from the high-performing titles, full-year sales exceeded the revised forecast. ■ In the second half due to cost control measures, segment losses also decreased compared to the 4Q (YoY) revised forecast. ■ On March 25, 2024, we announ
Slide 16: Consolidated Balance Sheet & Cash Flow Statement
Consolidated Balance Sheet & Cash Flow Statement ■ Due to the impairment loss recognized for Launch, goodwill decreased by 944 million yen and customer-related assets decreased by 675 million yen on the balance sheet. As a result, net assets decreased to 3,070 million yen. ■ In the cash flow stateme
Slide 17: Shareholder Composition
Shareholder Composition ◼ The ratio of institutional investors decreased from 22.3% in the previous year to 11.3%, while the ratio of individual investors increased. Overseas institutional investors Overseas institutional investors 5.5 % 2.9% Domestic institutional investors 16.8 % Domestic institut
Slide 18: Medium-Term Growth Strategy
Financial Results Briefing Medium-Term Growth Strategy 3 17 Fiscal Year Ending March 31, 2024 Full-year Financial Results Briefing ©2023 GEECHS Inc.
Slide 19: GEECHS Group's Future Growth Strategy
GEECHS Group's Future Growth Strategy We have been operating businesses in IT freelance sharing agent, offshore IT ( billion yen ) Amount of Domestic IT Investment 25,000.0 (Total across industries) human resources utilization, and IT human resources development since 23,513.1 22,653.6 21,803.3 esta
Slide 20: New Domain of Expansion
New Domain of Expansion 3rd Domain Possess IT consulting, PMO, and development Expansion From IT Human capabilities within the group to provide comprehensive support. Resources Supply to Through M&A execution, we aim to strengthen consulting capabilities and expand Solution Providers into DX/IT huma
Slide 21: Group Image Through Strategic M&A
Group Image Through Strategic M&A Aiming to achieve a one-stop solution provision as a company that solve the shortage of IT human resources. DX/IT Human Resources& IT Freelance Organization Consulting Technical Resource Sharing ( JPN ) Supporting from HR development to organizational building. Offs
Slide 22: Forecast for FY3/2025
Financial Results Briefing Forecast for FY3/2025 4 21 Fiscal Year Ending March 31, 2024 Full-year Financial Results Briefing ©2023 GEECHS Inc.
Slide 23: FY3/2025: Forecast
FY3/2025 : Forecast ◼ For the entire group, sales is projected to 26.3 billion yen (10.8% YoY increase), anticipating further growth in IT freelance matching business (Japan) and recovery of IT freelance matching business (Overseas). For operating profit, despite planning for new investment expenses
Slide 24: FY3/2025: Forecast by Segment
FY3/2025 : Forecast by Segment ■ IT Freelance Matching Business (Japan) : We will continue to focus on strengthening organization. We anticipate sales increase of 12.1% compared to the previous year and segment profit increase of 11.9%. ■ IT Freelance Matching Business (Overseas) : Starting from thi
Slide 25: Dividend Policy
Dividend Policy ◼ Our basic dividend policy is to prioritize growth investments that lead to sustainable profit growth and increased corporate value, while also providing shareholders with stable and continuous dividends. We plan to implement dividends for FY3/2025 at the same amount as the previous
Slide 26: Appendix
Financial Results Briefing Appendix 5 25 Fiscal Year Ending March 31, 2024 Full-year Financial Results Briefing ©2023 GEECHS Inc.
Slide 27: Solving the Shortage of IT Human Resources in Japan
About GEECHS Solving the Shortage of IT Human Resources in Japan IT Resource Crisis Is Our Business GEECHS supports the work styles of IT freelancers, sharing their skills and experiences with companies that face a shortage of IT human resources. GEECHS also continues to provide globally-oriented bu
Slide 28: Group Corporate Profile
Group Corporate Profile Group companies Company name GEECHS Inc. (TSE Standard Market: 7060) President and IT Freelance Matching Business (Japan) Naruhito Sonehara CEO Established August 23, 2007 IT Freelance Matching Seed Tech Business Business (Overseas) Shibuya Scramble Square, 2-24-12 Shibuya, H
Slide 29: GEECHS Social Impact Flow
GEECHS Social Impact Flow Input Group Synergies Through Business Activities Output Outcome Evolution of the IT freelance sharing business Creating a new “normal” Make the biggest impression Financial Capital through the integration of know-how and resources way of working in the 21st century • Growt
Slide 30: IT Freelance Matching Business, Japan
IT Freelance Matching Business, Japan Technology Resource Sharing Platform Growth companies in IT field Internet companies Project information website ■ Ad Tech ■ Med Tech Approx. with constantly over 1,500 projects ■ Fin Tech ■ Real Estate Tech Matching 3,550 ■ HR Tech ■ EC ■ Ed Tech ■ Game client
Slide 31: GEECHS Strengths
GEECHS Strengths Support team structure of 3 people per IT freelancer Quick and relevant matching Support ■ Generous support as a project mentor ■ Speedier matching by taking the whole process online Capabilities ■ Generous support from career advisors ■ Utilizing big data to take factors other than
Slide 32: Source of Growth
Source of Growth Financial Figures Business KPIs Key Success Factor Platform Value Monthly orders Trust from IT freelancers and Sales Monthly unit price of orders Matching Capabilities customers Order period Source of growth Retention rate Support capabilities / Engagement Gross profit Added value f
Slide 33: Connect with IT Freelancers
Connect with IT Freelancers Improve engagement by having effective contact with IT freelancers over the long term Registration Boost exposure Lead acquisition Matching Negotiations Contract Start interview Marketing Automation Lead Generation Lead Nurturing Customer Success ■ Web Marketing ■ One-to-
Slide 34: Differences from Similar Businesses
Differences from Similar Businesses Developing a platform specifically for mid- to high-spec, professional IT freelancers GEECHS Crowdsourcing IT Engineers Dispatch Registrant IT freelancers (main job) Freelancers (side/main job), and others Dispatched workers Main clients Growth companies in IT fie
Slide 35: Engagement
Engagement Strengthening ongoing partnerships to maximize business by increasing engagement with IT freelancers Offering 54 services which enable our IT freelancers to work for extended periods without the Benefits program undue stress of instability for IT freelancers ■ Seminars on how to file a ta
Slide 36: IT Freelance Matching Business, Overseas (Launch Group)
IT Freelance Matching Business, Overseas (Launch Group) Main Clients 1. Australian IT freelance service pioneer Established in 2006, Launch has earned trust and a track record as a venture company in the IT staffing service industry. MSP Contract Launch has been doing business continuously with more
Slide 37: Seed Tech
Seed Tech 1. Providing “Sodatech”, a DX/IT human resource Development business - Offshore development business development service for companies Education business - Sodatech for developing global IT freelancers, IT study abroad Providing a SaaS-type DX/IT human resource development platform for cor
Slide 38: Performance Highlights
Performance Highlights Fiscal Year-End FY3/21 FY3/22 FY3/23 FY3/24 Sales (Thousand yen) 3,427,816 14,340,774 15,997,838 23,739,835 EBITDA (Thousand yen) 815,495 1,226,900 651,393 362,120 Operating income (Thousand yen) 738,479 1,133,696 589,410 90,859 Ordinary income (Thousand yen) 713,942 1,135,706
Slide 39: Supplemental Data (IT Freelance Matching Business, Japan)
Supplemental Data (IT Freelance Matching Business, Japan) FY3/23 FY3/24 Fiscal Year-End 1Q 2Q 3Q 4Q Full-year 1Q 2Q 3Q 4Q Full-year Sales (Thousand yen) 3,014,968 3,117,730 3,236,528 3,393,625 12,762,853 3,447,652 3,447,026 3,519,688 3,662,106 14,089,473 Advertising (Thousand yen) 43,435 70,656 90,0
Slide 40: Disclaimer
Disclaimer geechs.com The financial information contained herein is unaudited. The information contained in this presentation is based on a number of assumptions. These statements are not intended to assure or guarantee the achievement of future numerical targets or measures. Please note that actual