Slide 1: FY 2024 Q3 Earnings Presentation
1 January 27, 2025 FY 2024 Q3 Earnings Presentation LITALICO Inc. [ TSE Code: 7366 ] ©2025 LITALICO Inc.
Slide 2: Disclaimer
DISCLAIMER 2 The information, future strategies, forecasts, management targets, and other forward- looking projections relating to LITALICO Inc. (“the Company”) is based on information available to the Company as of the date hereof, and is based on reasonable assumptions that may include various ris
Slide 3: Growth Strategy
3 Growth Strategy ©2025 LITALICO Inc.
Slide 4: LITALICO Philosophy and Vision: Creating an Obstacle-free Society
STRATEGY LITALICO Philosophy and Vision 4 The name “LITALICO” is a combination of two Japanese words: ”利他 / Lita” (altruism) and “利己 / Lico” (individualism). We aim to create an inclusive world where both are achieved interdependently. Creating an Obstacle-free Society Obstacles are created by and w
Slide 5: Trends in Disability Welfare Industry: Employment
STRATEGY Trends in Disability Welfare Industry 5 • The employment of disabled individuals is increasing, with legally mandated employment rate of 2.5%. • The rate is scheduled to increase step-wise to 2.7% over the next couple of years. Employment of Individuals with Disabilities Legally Mandated Em
Slide 6: Trends in Disability Welfare Industry: Users and Facilities
STRATEGY Trends in Disability Welfare Industry 6 Number of Welfare Service Users and Provider Facilities (thousand) (thousand) 200 Welfare Service Facilities (left) 1,400 Welfare Service Users 1,200 150 1,000 800 100 600 50 400 200 0 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Ref: MHLW
Slide 7: Services Across All Life Stages of Persons with Disabilities
STRATEGY Services Across All Life Stages of Persons with Disabilities 7 Services across all life stages provided through integration of B-C facilities and the B-B platform Education Vocation Lifestyle Retirement U.S. BtoC • Early detection and diagnosis • Social participation • Dwelling, medical car
Slide 8: Consolidated Financial Results
8 Consolidated Financial Results ©2025 LITALICO Inc.
Slide 9: Consolidated P&L
RESULTS Consolidated P&L 9 IFRS (million yen) FY2023 FY2024 % YoY Q1-Q3 Q1-Q3 Net Sales 22,075 25,907 + 17.4% Operating Profit 2,599 2,259 - 13.1% Profit Attributable to 2,631 1,384 - 47.4% Owners of Parent ©2025 LITALICO Inc.
Slide 10: Segment Income Statement
RESULTS Segment Income Statement 10 IFRS (million yen) FY2023 FY2024 % YoY Q1-Q3 Q1-Q3 Sales 7,939 9,406 + 18.5% Vocational Welfare Profit 2,665 3,445 + 29.3% Sales 7,001 6,612 - 5.6% Child Welfare Profit 1,086 -504 - Sales 2,820 3,217 + 14.0% Platform Profit 1,052 1,116 + 6.1% Sales - 1,921 - Overs
Slide 11: Segment Overview for FY2024 Q1-Q3
RESULTS Segment Overview for FY2024 Q1-Q3 11 • 25.9 bln yen in sales (+17% YoY), 2.3 bln yen in operating profit (-13.0% YoY), 1.4 bln yen in quarterly CONSOLIDATED profit (-47% YoY). • Smoothly progressing towards the achievement of the revised plan announced on October 28, 2024 (35.5 bln yen in sa
Slide 12: Financial Forecast
12 Financial Forecast ©2025 LITALICO Inc.
Slide 13: Consolidated Annual Forecast (IFRS)
Consolidated Annual Forecast (IFRS) FORECAST (Revised forecast announced on October 28, 2024) 13 IFRS (million yen) FY2023 FY2024 % YoY ACT FCT Net Sales 29,792 35,500 + 19.2% Operating Profit 3,715 3,300 - 11.2% Profit Attributable to 3,545 1,800 - 49.2% Owners of Parent 1 bln yen in gains from sal
Slide 14: Financial Summary
FORECAST Financial Summary 14 • Expecting a sales increase and profit decrease in FY2024 vs previous year. • Expecting a sales and profit increase in next FY by continuously expanding the major businesses (vocational welfare and platform businesses), while also recovering the child welfare business,
Slide 15: Business Results
15 Business Results ©2025 LITALICO Inc.
Slide 16: LITALICO Segments
RESULTS LITALICO Segments 16 Vocational Welfare HumanGrow Child Welfare Platform (Billing Software) (Nursing Care Software) Overseas Others ©2025 LITALICO Inc.
Slide 17: LITALICO Segments
RESULTS LITALICO Segments 17 Vocational Welfare HumanGrow Child Welfare (スタンダードコース) Platform Overseas Others (パーソナルコース) ©2025 LITALICO Inc.
Slide 18: Vocational Welfare
RESULTS Vocational Welfare 18 • 13 new sites launched in Q1-Q3. 7 news sites are planned to be launched in Q4. • 155 facilities (LW: 149, HG: 6) HumanGrow • 1,792 job placements in Q1-Q3, pace remains elevated • 20 total launches planned for FY24, with expected Vocational rehabilitation for increase
Slide 19: LITALICO Segments
RESULTS LITALICO Segments 19 Vocational Welfare Child Welfare Platform Overseas Others (パーソナルコース) ©2025 LITALICO Inc.
Slide 20: Child Welfare
RESULTS Child Welfare 20 • 21 new sites launched in Q1-Q3 • 180 facilities (LJ: 167, U: 13)* • 21 new sites have been launched as planned for FY24 • Costs related to reimbursement revisions and decrease in facility operation rate due to change in support program are expected produce negative profit
Slide 21: LITALICO Segments
RESULTS LITALICO Segments 21 Vocational Welfare Child Welfare Platform Overseas Others (パーソナルコース) ©2025 LITALICO Inc.
Slide 22: Current Service Line-up and Forward Strategy
RESULTS Current Service Line-up and Forward Strategy 22 • Operates matching media for service users and providers, and provides DX support SaaS services for facilities • Currently operates services for disability welfare facilities, schools & nurseries, and nursing care fields • Conducts sequential
Slide 23: Platform
RESULTS Platform 23 • 50% increase in marketing and sales staff in Q1 • 29,100 facilities contracted as of Q3 end. Steady acquisition of new contract, despite a loss of a major client who filed for bankruptcy. (Billing Software) (Nursing Care Software) Platform Business Subscription Contracts Platfo
Slide 24: LITALICO Segments
RESULTS LITALICO Segments 24 Vocational Welfare Child Welfare Platform Overseas Others (パーソナルコース) ©2025 LITALICO Inc.
Slide 25: M&A Consolidation of DDCN
M&A Consolidation of DDCN 25 LITALICO’s strategy in the U.S. • As we have done in Japan, the objective is to become a provider of comprehensive B-to-C services for users and their families • In June 2024, we have consolidated DDCN, one of the largest developmental disabilities service provider in Ne
Slide 26: DDCN Overview
M&A DDCN Overview 26 • Has fortified solid positioning with consistent growth as one of the largest service providers for individuals with severe disabilities in Nebraska • Provides stable B-to-C service with high demand from individuals in need of long-term support • Spending increases on developme
Slide 27: LITALICO Segments
RESULTS LITALICO Segments 27 Vocational Welfare Child Welfare Platform Overseas Others ©2025 LITALICO Inc.
Slide 28: Others
RESULTS Others 28 • Increased sales by 10% YoY • Active M&A execution Development classes designed for children Others Sales under 18 with special needs, open to all irrespective of disability certification. (million) Provides intensive sessions with generous guidance. 2 facilities are opening in 7,
Slide 29: New Service: Group Home LITALICO Residence
NEW SERVICE Group Home “LITALICO Residence” 29 • “LITALICO Residence Inogashira-koen,” a group home for individuals with severe disabilities, is scheduled to open in April 2025. • Shortage of group homes persists especially for individuals with severe disabilities in metropolitan areas, due to reaso
Slide 30: New Service: LITALICO High School
NEW SERVICE LITALICO High School 30 “LITALICO High School,” a school which provides support for daily life and education/career option in accordance with each individual’s characteristics, is scheduled to open in April 2025. Number of students in correspondence course high school (Correspondence sch
Slide 31: Reference Material
31 Reference Material ©2025 LITALICO Inc.
Slide 32: Number of LITALICO Service Provision Facilities
REFERENCE Number of LITALICO Service Provision Facilities 32 • Total of over 400 sites planned for FY2024 500 450 434 390 400 91 338 350 88 300 83 262 250 231 180 210 43 159 200 186 39 173 35 128 26 140 23 113 150 116 100 21 93 92 20 84 86 100 73 60 57 18 43 143 163 39 13 30 127 50 5 22 106 15 15 82
Slide 33: LITALICO Business Environment (1)
REFERENCE LITALICO Business Environment (1) 33 • Number of individuals with disabilities continue to increase, with more children attending special needs classes in addition to normal school Children with Developmental Disorders Number of All Individuals with Disabilities Receiving Special Needs Sch
Slide 34: LITALICO Business Environment (2)
REFERENCE LITALICO Business Environment (2) 34 • The market size of disability welfare service and adjacent industry (medical, nursing care, etc.) is increasing yearly. Disability Welfare Service Budget Disability Welfare Service Users and Facilities Government spending on disability welfare service
Slide 35: Publicly Funded Business Structure
REFERENCE Publicly Funded Business Structure 35 LITALICO Works Pricing Employment Per person; 20 person limit Transition Support 1st Yr: ¥8,800 /session Government 2nd Yr: ¥8,800~10,000 /session Up to 6 mths into Reimbursement: employment 3rd Yr: ¥12,000 /session 90% * Pricing fluctuates each fiscal
Slide 36: Reimbursement Calculation Method
REFERENCE Reimbursement Calculation Method 36 Reimbursement Unit Price Evaluation Method Vocational Training Business Example Results Based Reimbursement Vocational Training Basic Reimbursement Scale C. Job Retention Rate D. Basic Reimbursement Units Specific KPIs (such as the number of job placemen
Slide 37: U.S Disability Welfare Industry
REFERENCE U.S Disability Welfare Industry 37 • The 2022 U.S. census estimates more than 45 million individuals with hearing, vision, cognitive, ambulatory, self-care, and independent living difficulties • Spending on services for Intellectual or Development Disabilities (IDD) alone has continued to
Slide 38: DDCN Within the U.S. Disability Welfare Structure
REFERENCE DDCN Within the U.S. Disability Welfare Structure 38 Administration Insurance Federal Audit Funding Medicaid Commercial Private State Government Medicare (Mixed, Corporates) (Out-of- Government pocket) (Public) Authorization & Reimbursement Audit Application Claims Service Providers & Repo
Slide 39: LITALICO Annual Fact Sheet
REFERENCE LITALICO Annual Fact Sheet 39 Vocational Training Child Welfare LITALICO Wonder • Job Placements: 1,792 • Service Users as of the end of • Service Users as of the end of December 2024: 11,212 December 2024: 5,040 Number of Employee NPS Scores1 (As of March 2024) • Vocational Welfare Segmen