internet infinity INC. · TSE:6545
internet infinity — Q2 FY2021 Earnings Presentation
40 slides from internet infinity's earnings presentation, Nov 19, 2020
Slide 1: 2Q Results Briefing Materials, Fiscal Year Ending March 31, 2021
Fiscal Year Ending March 31, 2021 2Q Results Briefing Materials internet infinity INC. Securities identification code: 6545 November 19, 2020 Copyright© internet infinity Inc. All Rights Reserved.
Slide 2: Table of contents
Table of contents 1. Summary of business results for 2Q of fiscal year ending March 31, 2021 2. Financial summary for 2Q of fiscal year ending March 31, 2021 3. Full-year earnings forecast for fiscal year ending March 31, 2021 (Supplementary information) Copyright© internet infinity Inc. All Rights
Slide 3: Summary of business results for 2Q
Summary of business results for 2Q of fiscal year ending March 31, 2021
Slide 4: Summary of business results for 2Q
Summary of business results for 2Q of fiscal year ending March 31, 2021 The novel coronavirus pandemic caused revenue to fall, but earnings grew through cost reductions. Upward revision of full-year earnings forecast YoY change Sales: 1,692million yen (Profit margin) -90 million yen Operating income
Slide 5: The impacts of the novel coronavirus pandemic
The impacts of the novel coronavirus pandemic Record Book ✓ Reduced usage of our services caused by seniors staying indoors led to fewer users. ⇒ The pace of recovery following the lifting of the state of emergency has been faster than anticipated. ✓ The number of new franchised location openings fe
Slide 6: Financial summary for 2Q
Financial summary for 2Q of fiscal year ending March 31, 2021
Slide 7: Segment-by-segment sales for 2Q
Segment-by-segment sales for 2Q of fiscal year ending March 31, 2021 Healthcare Solution Home-Centered Service 871 million yen 622 million yen 51.5％ (down 0.4 percentage points YoY) 36.8％ (up 2.1percentage points YoY) Record Book Home-Centered Service Offers 3-hour rehab-based day services focusing
Slide 8: Segment-by-segment business results for 2Q
Segment-by-segment business results for 2Q of fiscal year ending March 31, 2021 Record Book’s franchised operations grew in both sales (in millions of yen) and (pre-adjustment) 2Q of FY 2020/03 operating income. Increase/decrease 2Q of FY 2021/03 amount (increase/decrease rate) Percenta Percentag Op
Slide 9: Analysis of operating income changes
Analysis of operating income changes in millions of yen Pandemic-related The pandemic’s impact on business activities -125 +131 cost cuts, etc. Web Solution Record Book Home-Centered Service Franchised Company-owned locations locations Sales Cost Decreases in growth increase recruitment and Decrease
Slide 10: Balance sheet for 2Q
Balance sheet for 2Q of fiscal year ending March 31, 2021 2,458 2,458 2,500 Current assets 1,628 2,212 Current liabilities 1,310 2,212 Current assets 1,379 Current liabilities 826 2,000 Short-term debt 80 Short-term debt 490 1,500 Deposits received 337 Accounts receivable Accounts receivable Deposit
Slide 11: Cash flows for 2Q
Cash flows for 2Q of fiscal year ending March 31, 2021 1,200 (in millions of yen) 1,000 99 ▲55 800 Acquisition of property, plant and equipment -35 Cash flow from other investment activities -20 ▲297 600 Pre-taxnet income for the quarter 132 Payments of corporate income and other 930 similar taxes -
Slide 12: Recent status of Record Book operations
Recent status of Record Book operations Record Book measures to prevent the virus’s spread High-standard ✓ We work to protect the health of users and employees, and maintain continuity of service while acting as a social infrastructure. Vigorous adherence to mask-wearing and Disinfecting and Maintai
Slide 13: Record Book / User count trajectory
Record Book / User count trajectory The continued reluctance to go outside has led to a renewed awareness of the importance of habitual physical exercise by seniors. Usage is now recovering, driven by vigorous adherence to infection prevention measures and new endeavors. Record Book / Monthly user c
Slide 14: Record Book Number of locations
Record Book Number of locations The Record Book brand grew to 198 locations overall. ⇒3 new Company-owned locations, 4 franchised locations, and one Meitetsu Record Book location have been added as of this current second quarter. To become a leading company in rehab-based day services Hokkaido/Tohok
Slide 15: Record Book / Rollout of new services
Record Book/Rollout of new services Merch sales at Record Book locations ✓ We began a pilot program to sell merchandise to users at certain Record Book locations, with a view towards developing services that are not covered by eldercare insurance. ⇒Mineral water, brand-name confectionery, bedclothes
Slide 16: Recent status of Web Solution and Home-Centered Service operations
Recent status of Web Solution and Home-Centered Service operations Web Solution On October 2020, we began providing Eldercare ✓ We plan on mounting innovative sales efforts that Concierge, harness online capabilities in order to steadily gain new business. , to Hitachi, Ltd. ✓ We will actively grow
Slide 17: Full-year earnings forecast
Full-year earnings forecast for fiscal year ending March 31, 2021
Slide 18: Earnings forecast for fiscal year
Earnings forecast for fiscal year ending March 31, 2021 Upward revision of full-year earnings forecast published on May 15, 2020 Increase/decr Progress YoY FY 2021/03 FY 2021/03 FY 2021/03 ease rate (Reference) rate (in millions of yen) increase/decr 2Q Initial forecast Revised forecast against init
Slide 19: Segment-by-segment earnings forecast for FY 2021/03
Segment-by-segment earnings forecast for FY 2021/03 Upward revision of full-year earnings forecast published on May 15, 2020 Continued uncertainties regarding the pandemic’s impacts on economic activity => Revision of earnings forecast, in response to performance during the first half of the year, a
Slide 20: Factors behind the revisions to the full-year earnings forecast
Factors behind the revisions to the full-year earnings forecast for fiscal year ending March 31, 2021 Sales Operating income Record Book Record Book Home-Centered Service Company-owned Franchised Company-owned locations locations locations +51 Home-Centered Adjustments Service +34 -31 Other +37 -36
Slide 21: Premises behind the earnings forecast (1)
Information regarding the premises behind the calculation of earnings forecast for the fiscal year ending March 31, 2021 (1) Some of the premises regarding the pandemic’s impacts were revised in response to the first half of the fiscal year. Premise on which Revised forecast Initial forecast forecas
Slide 22: Premises behind the earnings forecast (2)
Information regarding the premises behind the calculation of earnings forecast for the fiscal year ending March 31, 2021 (2) Some of the premises regarding the pandemic’s impacts were revised in response to the first half of the fiscal year. Premise on which Revised forecast Initial forecast forecas
Slide 23: Performance measured against revised earnings forecast
Performance measured against revised earnings forecast for FY ending March 31, 2021 (in millions of yen) Sales Operating income Full-year forecast 3,361 Full-year forecast 84 Total 2Q performance 1,692 2Q performance 133 0% 25% 50% 75% 100% 0% 50% 100% 150% ✓ Factoring in past winter usage trends, i
Slide 24: (Supplementary information)
(Supplementary information)
Slide 25: Business description
Business description
Slide 26: Corporate profile
Corporate profile Established May 7, 2001 Capital 252,302,686 yen (as of September 30, 2020) Location of Gate City Ohsaki, East Tower 4F, 11-2, Ohsaki 1-chome, ISMS certification acquired headquarters Shinagawa-ku, Tokyo 141-0032, Japan Representative Representative director Keiichi Beck Executives
Slide 27: Corporate philosophy and code of conduct
Corporate philosophy and code of conduct We aim to prolong people’s “healthy lifespan” through our services. Corporate slogan <Business philosophy> A Healthy Future Mission To provide solutions to issues that a super-aging society <IIF’s mission and business field> faces, through innovation and an a
Slide 28: Company timeline
Company timeline Rollout of new healthcare services through our double pillar of real-world and online operations Sales Importance of care managers coming into focus Rapid Forging a network ahead of the industry growth curve Launch of services related to prolonging healthy lifespans 2014 Launch of t
Slide 29: The importance of care managers within the long-term care insurance system
The importance of care managers within the long-term care insurance system Care managers prepare care plans, and are highly influential in making eldercare service decisions Referral of eldercare service companies that Preparation of care suit care plans plans Monthly visits for briefing and Care ma
Slide 30: internet infinity's strengths: Care Management Online
internet infinity’s strengths Care Management Online internet infinity operates one Free registration of the largest portal sites for care manager support in the country. Number of registered care managers Approx. 60 % (some 96,000 managers) Number of registered site users Approx. 160,000 users of a
Slide 31: Care Management Online as an essential tool for care management
internet infinity’s strengths Care Management Online has established itself as an essential tool for care management work. Main duties of a care manager Care Management Online Preparation of care plans and Various forms, templates, and manuals are documents required in filing for long- available to
Slide 32: A care manager network reaching senior households
internet infinity’s strengths A care manager network that is among the largest in the country with the ability to reach senior households Care Management Online connects internet infinity with senior households. Senior households Approx. 2.5 million Care manager Real-world Operation of Care Online C
Slide 33: Record Book
Record Book Offers 3-hour rehab-based day services focusing on physical exercise instructions (Main care subjects: Those who have been certified as needing level 1 or 2 support, or level 1 or 2 long-term care) High membership retention rate Featur e1 (1) Environments are designed to encourage use of
Slide 34: Record Book attracts users online and in the real world
Record Book Featu By harnessing one of the largest care manager networks in the country, re Record Book can attract users through both online and real-world means. 3 Online marketing efforts Care Management Online allows us to identify care managers in Senior eldercare Record Local care communities
Slide 35: Web Solution / Marketing support for the senior market
Web Solution / Marketing support for the senior market Marketing support services that leverage one of the largest care manager networks in the country, with a reach that extends to some 2.5 million senior households A care manager network that is among the largest in the country • Market research r
Slide 36: Case study / Marketing support for the senior market
Case study / Marketing support for the senior market Leading food manufacturer Marketing support related to the development and production of eldercare food ① Request for tasting research of eldercare food Development and ② Purchase of Care Management Online ad space production of eldercare ③ Distri
Slide 37: Services supporting those balancing work and caregiving
Web Solution / Services supporting those who balance their professional and caregiving duties Over 170 firms have adopted these services, with a membership of some 2 million people.* The services have mainly been introduced as part of the firms’ benefit program. The services offer Internet-based sup
Slide 38: Growth strategy: Record Book nationwide franchise
Growth strategy Building a platform of Record Book locations by taking the franchise nationwide ➢ Early attainment of 450 locations nationwide ➢ Establishing a solid customer base through user growth Long-term insurance care revenues from *As of September 30, 2020 Current state Record Book locations
Slide 39: Growth strategy: non-insurance-covered services
Growth strategy Strengthening of non-insurance-covered services using the Record Book platform We aim to prolong people’s healthy lifespans through the way they live. ➢ Approaches to how users spend their time outside of Record Book ➢ Forging a network with family members who live under the same roo
Slide 40: Forecast cautionary note and contact
The earnings forecast figures included here are based on judgments and predictions we made from currently available information. They are premised on numerous assumptions and ideas derived from information that carries risks and uncertainties. Please be aware that, due to any number of factors, actu