Advance Create Co., Ltd. · TSE:8798
Advance Create — FY2021 Earnings Presentation
45 slides from Advance Create's earnings presentation, Nov 12, 2021
Slide 1: FY09/21 Results Briefing Materials
Advance Create Co., Ltd. FY09/21 Results Briefing Materials (October 2020 to September 2021) November 12, 2021 Securities code: 8798
Slide 2: Contents
Contents I. FY09/21 Results Overview 3 Results Highlights 4 Financial Statements 5 Segment Information 8 II. Advance Create Overview 12 III. Company Strategy 22 IV. Recent Developments 34 Full-Year Forecast 37 ESG Initiatives 39 V. Supplementary Materials 41 2
Slide 3: I. FY09/21 Results Overview
I. FY09/21 Results Overview 3
Slide 4: FY09/21 Results Highlights
FY09/21 Results Overview (1) FY09/21 Results Highlights ― Consolidated Results ― Net sales and profits reached all-time highs Net sales ¥11,019 million, up ¥508 million YoY (+4.8% YoY) Operating profit ¥2,041 million, up ¥857 million YoY (+72.4% YoY) Ordinary profit ¥1,925 million, up ¥ 829 million
Slide 5: FY09/21 Income Statement (Consolidated)
FY09/21 Results Overview (2) FY09/21 Income Statement (Consolidated) YoY change (Unit: Millions of yen) FY09/20 Composition (%) FY09/21 Composition (%) (%) Net sales 10,510 100.0 11,019 100.0 4.8 Insurance Agency business 8,923 84.9 9,103 82.6 2.0 ASP business 183 1.7 195 1.8 6.4 Media business 1,25
Slide 6: FY09/21 Balance Sheet (Consolidated)
FY09/21 Results Overview (3) FY09/21 Balance Sheet (Consolidated) (Unit: Millions of yen) End-FY09/20 End-FY09/21 Change Assets Current assets 6,563 7,968 1,405 Total assets rose ¥1,495 million from end- Cash and deposits 2,632 3,337 705 FY09/20 to ¥11,808 million. This was mainly due Accounts recei
Slide 7: FY09/21 Statement of Cash Flows (Consolidated)
FY09/21 Results Overview (4) FY09/21 Statement of Cash Flows (Consolidated) (Unit: Millions of yen) FY09/20 FY09/21 Change Cash flows from operating activities 1,351 1,643 291 Profit before income taxes 1,029 1,905 876 Depreciation 409 434 25 Increase (decrease) in accounts receivable (97) (307) (20
Slide 8: Sales by Segment
FY09/21 Results Overview (5) Sales by Segment (Unit: Millions of yen) FY09/20 FY09/21 YoY Reinsurance 851 942 10.7% 851 942 Media 1,250 1,030 -17.6% 775 Media Rep. 807 807 - 0.0% 1,250 1,030 ASP 183 195 6.4% 1,065 Insurance 807 8,923 9,103 2.0% 724 807 Agency 677 195 183 Total 12,016 12,080 0.5% 832
Slide 9: Operating profit by segment
FY09/21 Results Overview (6) Operating profit by segment (Unit: Millions of yen) FY09/20 FY09/21 YoY Reinsurance 131 129 -1.2% Media 261 221 -15.4% 129 Media Rep. (92) 165 ― ASP 12 50 287.1% 221 Insurance 868 1,472 69.5% 165 Agency Total 1,181 2,039 72.6% 50 110 131 105 211 261 72.6％ 132 217 160 12
Slide 10: ANP and PV by Sales Channel
FY09/21 Results Overview (7) ANP and PV by Sales Channel (Unit: Millions of yen) 25期 FY09/20 26期 FY09/21 協 業 Collaborative 1,577 1,787 1,183 1,546 非対面販売 Non-face-to-face 2,944 2,518 1,577 1,787 対面販売 Face-to-face 3,718 4,272 911 合○○計 Total 8,239 8,578 2,652 2,640 2,518 2,339 4.1% 2,944 6,754 7,757 7,
Slide 11: Number of Policies in Force
FY09/21 Results Overview (8) Number of Policies in Force (Unit: 1,000 policies) Up 9.8% YoY 636 579 542 519 500 *The number of policies in force includes life insurance, medical insurance, and other policies that continue or are renewed (life insurance companies and American Home Assurance Company,
Slide 12: II. Advance Create Overview
II. Advance Create Overview 12
Slide 13: About Advance Create
Advance Create Overview About Advance Create Advance Create is an insurtech company that is constantly innovating to change the way people think about the insurance business. Ｉｎｓｕｒａｎｃｅ Ａｇｅｎｃｙ Ａｐｐｌｉｃａｔｉｏｎ Ｓｅｒｖｉｃｅ Business Ｐｒｏｖｉｄｅｒ (ASP) Business Ｂｕｓｉｎｅｓｓ Ｐｒｏｃｅｓｓ Ｍｅｄｉａ Business Ｏｕｔｓｏｕｒｃｉｎｇ (BPO) Busin
Slide 14: Advance Create's Digital Transformation (DX)
Advance Create Overview Advance Create’s Digital Transformation (DX) o Spontaneous insurtech born out of customer service o Obtained a patent for the system we developed and promoted the protection and use of intellectual property Discovery of potential customers Insurance consultation Continued rel
Slide 15: Long-Term Performance
Advance Create Overview Long-Term Performance 売上高（左軸・百万円） Net sales (left axis; millions of yen) 経常利益（右軸・百万円） Ordinary profit (right axis; millions of yen) 12,000 Launched 2,000 Reinsurance Listed on the First Section of Launched Began online business the Tokyo Stock Exchange ASP business consultati
Slide 16: Our History of Progress through Technology
Advance Create Overview Our History of Progress through Technology 1998 Began accepting requests for information via website 1999 Launched Hoken Ichiba website 1999 Developed CRM system GOYOKIKI Cf. Amazon founded: 1994 Cf. Google founded: 1998 2009 Launched smartphone-optimized website 2012 Complet
Slide 17: Our Strengths
Advance Create Overview Our Strengths Development of insurance Proprietary methods of Corporate culture that software in-house online marketing rapidly adapts to change ● Despite being a specialized ● Operation of one of the ● Human resource insurance agency, we have largest insurance selection deve
Slide 18: In-House Agile Software Development
Advance Create Overview In-House Agile Software Development o We develop software in-house with more than 100 IT personnel including engineers and designers. o We employ agile development through direct connections between management, sales staff, and engineers. Marketing Category 13 staff; 2.8% Sal
Slide 19: Growth of the Younger Generation to Support High Productivity
Advance Create Overview Growth of the Younger Generation to Support High Productivity and High Added Value o We achieve high productivity through online insurance consultations and the use of text communication in addition to employee training to foster internet literacy. o We have created an enviro
Slide 20: Building and Reinforcing the Management Structure
Advance Create Overview Building and Reinforcing the Management Structure o We are continuously building and reinforcing HR Investment Financial Strategy the management structure. Compliance and Governance Introduction of Employee Establishment of Stock Ownership Plans on-premises (ESOP) childcare c
Slide 21: Transfer to the Tokyo Stock Exchange Prime Market
Advance Create Overview Transfer to the Tokyo Stock Exchange Prime Market o As we celebrated the fifth anniversary of our designation to the First Section of the Tokyo Stock Exchange in July 2021, we confirmed that we met the criteria for maintaining our listing on the new Prime Market and Standard
Slide 22: III. Company Strategy
III. Company Strategy Achieve progress through enhancing people and technology 22
Slide 23: OMO × FinTech
Company Strategy OMO × FinTech o In the insurance industry, where most companies rely on mass advertising, we approach customers with high IT literacy through cutting-edge marketing using social media, video, AI data analysis, and other means. We apply the knowledge gained from our original marketin
Slide 24: Insurance Policy Management App "folder"
Company Strategy Insurance Policy Management App “folder” o “folder” allows users to convert insurance policies into data and manage them in the cloud. It offers various functions such as family sharing of policy information, diagnosis of excess or deficiency of coverage, and simulations of pensions
Slide 25: Hoken Ichiba Smart Consulting Plaza
Company Strategy Hoken Ichiba Smart Consulting Plaza o We plan to open a Smart Consulting Plaza at the end of November 2021. We will deliver the convenience of our high-quality online insurance consultations to customers outside the coverage area of our directly managed branches. In the event that a
Slide 26: Online Insurance Consultation Appointment Productivity
Company Strategy Online Insurance Consultation Appointment Productivity o ANP per consultation remained steady for online consultations. Following up with social media and other means after obtaining appointments increased the consultation rate and improved productivity per appointment. o The averag
Slide 27: Pursuing High-Quality Service at Our Physical Locations
Company Strategy Pursuing High-Quality Service at Our Physical Locations o We operate Hoken Ichiba consulting plazas at urban landmarks. o At these physical locations, we continue to pursue high-quality consulting services so that our customers can experience the “impressive experience that only fac
Slide 28: Portfolio Strategy: Portfolio of Channels
Company Strategy Portfolio Strategy: Portfolio of Channels Face-to-face Mail order Online Collaborative 28
Slide 29: Portfolio Strategy: Revenue Portfolio
Company Strategy Portfolio Strategy: Revenue Portfolio 29
Slide 30: Portfolio Strategy: Revenue Portfolio (Insurance Agency)
Company Strategy Portfolio Strategy: Revenue Portfolio Insurance Agency Business ▶ Sell insurance products on behalf of life insurance and non-life insurance companies after concluding agency contracts ▶ Implement promotions centered on Hoken Ichiba, one of the largest insurance selection websites i
Slide 31: Portfolio Strategy: Revenue Portfolio (Media)
Company Strategy Portfolio Strategy: Revenue Portfolio Hoken Ichiba Co., Ltd. Media Business ▶ Hoken Ichiba, one of the largest insurance product information websites in Japan, receives ad placement orders from insurers ▶ Directly contacts customer segment with strong interest in insurance products
Slide 32: Portfolio Strategy: Revenue Portfolio (Reinsurance)
Company Strategy Portfolio Strategy: Revenue Portfolio Advance Create Reinsurance Inc. Reinsurance Business [Insurers under reinsurance agreements] ▶ Assumes part of the risk of the insurance sold by the insurer and earns reinsurance As of end-Sep. 2021: Total 11 premiums Life insurers: 8 Non-life i
Slide 33: Portfolio Strategy: Revenue Portfolio (ASP)
Company Strategy Portfolio Strategy: Revenue Portfolio ASP Business ▶ We sell our in-house system, which we have been using for many years and have improved from the user’s perspective, at a low price. ▶ In-house engineers can quickly respond to customers’ requests to improve certain functions. Adva
Slide 34: IV. Recent Developments
a raranee Create IV. Recent Developments 34
Slide 35: Appointments
Recent Developments Appointments o We have been able to secure appointments steadily throughout the year despite a temporary drop in customer interest in insurance due to the recent lifting of the state of emergency and accompanying reaction against the previous mood of self-restraint. While the num
Slide 36: Trend in ANP at Consulting Plazas and Collaborating Agents
Recent Developments Trend in ANP at Our Consulting Plazas and Collaborating Agents o Thanks to the effectiveness of OMO strategies such as online consultations, we have secured results that exceed pre-pandemic levels despite the state of emergency. We have evolved amid a changing environment and est
Slide 37: FY09/22 Full-Year Forecast
FY09/22 Full-Year Forecast FY09/22 Full-Year Forecast (Unit: Millions of yen) Consolidated FY09/18 FY09/19 FY09/20 FY09/21 FY09/22 YoY Change Net sales 9,468 10,365 10,510 11,019 12,500 13.4% Operating profit 1,168 1,345 1,184 2,041 2,300 12.7% Ordinary profit 1,135 1,297 1,095 1,925 2,200 14.2% Pro
Slide 38: Key Performance Indicators
Key Performance Indicators Key Performance Indicators Target FY09/21 FY09/22 results forecast ROE 20% or more 21.0% 20.4% Ordinary profit margin 20% or more 17.5% 17.6% Payout ratio 50% or more 50.3% 45.5% Equity ratio 80% or more 56.9% 59.6% 38
Slide 39: ESG Initiatives
ESG Initiatives 39
Slide 40: ESG Initiatives
ESG Initiatives ESG Initiatives o In addition to our existing CSR initiatives, we have started to prepare an integrated report to be released by the end of 2021. o In addition to our existing co-sponsorship of the Osaka Marathon and the offering of endowed courses at Kansai University, this year we
Slide 41: V. Supplementary Materials
V. Supplementary Materials 41
Slide 42: Company Overview
Supplementary Materials Company Overview Trade name Advance Create Co., Ltd. Nomura Fudosan Midosuji Building, 3-5-7 Kawaramachi, Chuo-ku, Location Osaka, Osaka Prefecture Established October 1995 Capital ¥3,158 million (as of September 30, 2021) Insurance Agency, Media, Media Representative Service
Slide 43: Analyst Reports
Supplementary Materials Analyst Reports o Please refer to the research reports by these external organizations for details on the Company’s history, earnings structure, and other information since its establishment. o These research reports will be updated as necessary based on the announcement of f
Slide 44: Disclaimer
Supplementary Materials Disclaimer The forward-looking statements included in this document and any related materials are based on currently available information, and may change due to macroeconomic conditions and trends in the industry in which the Company operates. Accordingly, please note that a
Slide 45: Inquiries
Inquiries Akira Iwai, General Planning Division TEL: +81-6-6204-1193 Email: acir@advancecreate.co.jp URL: https://www.advancecreate.co.jp/