Slide 1: Financial Results for the Fiscal Year Ended December 31, 2022
Financial Results for the Fiscal Year Ended December 31, 2022 ProjectCompany, Inc. [TSE Growth: 9246] February 14, 2023
Slide 2: Contents
Contents 1. Company Overview 2. FY2022 Q4 Financial Results 3. FY2022 Full-Year Financial Results 4. FY2023 Earnings Forecast 5. Management Policy 2
Slide 3: 1. Company Overview
1. Company Overview co ProjectCompany 3
Slide 4: Executive Summary
Executive Summary FY2022 Full-Year Financial Results Net Sales Operating Income Employees *1 Net Sales per Client*2 ¥4,352 million ¥958 million 167 ¥30.2 million (YoY +103%) (YoY +88%) (YoY +103) (YoY +65%) Both consolidated net sales and operating income nearly doubled year-on-year, achieving sev
Slide 5: Group Management Philosophy
Management Philosophy Group Management Philosophy Creating a Project-based Society The Japanese economy has continued to stagnate. If the situation remains unchanged, it is feared that it will continue to decline in the future. We believe that the only way for the Japanese economy and society to reg
Slide 6: Company History
Company History Period of diversified growth through April 2023: Dr. KENKO KEIEI Inc. becomes a group company (scheduled) group management October 2022: Cuatro Technologies Co., Ltd. (current Project Technologies Co., Ltd.) became a group company Sales trends (Quarterly) July 2022: Established Proje
Slide 7: To Our Investors
To Our Investors I would like to express my sincere gratitude to all of our shareholders and potential investors for your warmest support. I would like to take this opportunity to share with you what I value most as a manager: “Accomplishing ordinary tasks with maximum effort” (in Japanese as “ Bonj
Slide 8: Our Group's Business Domains
Our Group’s Business Domains We expanded our business domains to include DX × HR business and DX × Technology business in FY2022 based on digital transformation (DX), an area we have accumulated knowledge in since the company’s founding. We will continue to strive to expand our business domains thro
Slide 9: Digital Transformation Business: Advantages and Features - Integrated Advisory System
Digital Transformation Business: Advantages and Features 1 - Integrated Advisory System Towards DX Provides full-range integrated services, from support for improving the Web user interface through to marketing support and even business support including new business development. Enables efficient a
Slide 10: Advantages and Features - UIscope as a Starting Point
Digital Transformation Business: Advantages and Features 2 - UIscope as a Starting Point The starting point for an integrated model is UIscope for usability testing and improvement. UI/UX surveys using monitors provide support for objective and exhaustive app/website improvements. Boasts high recogn
Slide 11: Consulting Services: Case Introduction - New Business Development
Consulting Services: Case Introduction - New Business Development In new business development, there are many cases where we provide support from the stage of business strategy planning, such as considering business models and formulating business plans. As business development professionals, we for
Slide 12: Marketing Services: Case Introduction
Marketing Services: Case Introduction – From Marketing Strategy Planning to Implementation Support In planning a marketing strategy, it is important to clarify "what is marketing for?” by defining targets. The value provided by our marketing support is to achieve visible results, not just planning s
Slide 13: UI/UX Services: Case Introduction - UI Research
UI/UX Services: Case Introduction - UI Research In UI research, we collect opinions from target users on the convenience of applications and websites. We offer effective improvement proposals by discovering bottlenecks that cannot be detected by quantitative data only. N-30 days N-25 days N-15 days
Slide 14: Overview of DX × Technology Business
Overview of DX × Technology Business In technology services, we mainly provide dispatch services of engineers for system development, operation, and maintenance. There are cases where we undertake system development, operation, and maintenance phases of the business development projects that we supp
Slide 15: Overview of DX × HR Business
Overview of DX × HR Business We provide a lineup of HR solutions services for comprehensive backup support in the HR domain, from recruitment through to personnel evaluation and labor management. We provide services to personnel and labor divisions in a wide range of industries. Recruitment Personne
Slide 16: 2. FY2022 Q4 Financial Results
2. FY2022 Q4 Financial Results 16
Slide 17: FY2022 Q4 Net Sales Composition & Earnings
FY2022 Q4 Net Sales Composition & Earnings (All businesses) Consulting, marketing, and UI/UX services account for approx. 80% of our net sales (FY2022 Q4 results) FY2022 Q4: Net sales up 103% YoY to ¥1,376 million; operating income up 81% YoY to ¥266 million Net Sales Composition Earnings* (million
Slide 18: FY2022 Q4 Operating Expense Composition
FY2022 Q4 Operating Expense Composition (All businesses) Cost of sales significantly increased mainly due to an increase in the use of joint participation partners as a result of winning new projects and the consolidation of the DX x Technology business, which has a relatively high cost of sales rat
Slide 19: Performance by Service: Consulting Services
Performance by Service 1 Consulting Services Our mainstay work in consulting services is new business development using digital technologies, accounting for roughly 50% of sales. Needs for new business development to secure new revenue sources remain strong, leading to stable sales. In FY2022 Q4, sa
Slide 20: Performance by Service: Marketing Services
Performance by Service 2 Marketing Services Social media operational support and marketing consulting are core sales elements. We produced results through social media operational support, and planned a more wide ranging strategy for digital marketing as a whole (marketing consulting) to create a de
Slide 21: Performance by Service: UI/UX Services
Performance by Service 3 UI/UX Services UIscope, our usability testing service for improving UI/UX, is used in our research and advisory business to test smartphone apps and websites for the formation of service experience design proposals (business acquired in June 2018). Cross-selling to companies
Slide 22: Performance by Service: Technology Services
Performance by Service 4 Technology Services In Technology Services, we mainly provide an engineer dispatch service for system development, operation, and maintenance. After acquiring the business from cuatro pistas Co., Ltd. in October 2022, sales significantly increased from FY2022 3Q, just before
Slide 23: Performance by Service: HR Solution Services
Performance by Service 5 HR Solution Services In the HR solution services, we mainly provide recruitment and other consulting services in the HR area, and fully support personnel and labor divisions of companies Sales increased steadily even after joining our group by injecting our knowledge includi
Slide 24: Quarterly Performance Summary (QoQ)
Quarterly Performance Summary (QoQ) Million yen FY2022 Q3 FY2022 Q4 QoQ QoQ (%) FY2022 Q4 net sales Net sales 1,120 1,376 +256 +22.9 increased 22.9% QoQ to Consulting services included 702 765 +63 +9.0 ¥1,376 million due to growth in existing businesses and the Marketing services included 183 199 +1
Slide 25: 3. FY2022 Full-Year Financial Results
3. FY2022 Full-Year Financial Results 25
Slide 26: Performance Highlights (1): Net Sales and Operating Income
Performance Highlights (1) Changes in Net Sales and Operating Income All businesses DX only FY2022 net sales amounted to ¥4,352 million. Operating income amounted to ¥958 million. FY2022 sales growth was higher than the growth rates in past fiscal years, mainly due to the favorable impact of M&As. O
Slide 27: Performance Highlights (2): Operating Expenses
Performance Highlights (2) Changes in Operating Expenses All businesses DX only The decrease in the SGA expenses to net sales ratio was offset by the expanded use of participating partners and other factors, leading to a higher cost of sales to net sales ratio. Operating Expense Composition (YoY, Mi
Slide 28: Reasons for Strong Performance (1): Stock-Type Business Model
Reasons for Strong Business Performance (1) Progress of Stock-Type Business Model All businesses DX only We are aware that many consulting companies generally have a sales structure with a disproportionate emphasis on spot and flow projects. We have built a stock-type business model based on the ass
Slide 29: Reasons for Strong Performance (2): Organizational Structure
Reasons for Strong Business Performance (2) Organizational Structure All businesses DX only The number of partners per employee increased due to the expanded use of joint participation partners to receive orders more flexibly. Despite the rapid increase in the number of employees, sales per employee
Slide 30: Number of Clients
Number of Clients All businesses DX only Although the number of clients decreased slightly from FY2019 to FY2020 due to a partial narrowing of the focus to clients more compatible with our business style, the number of clients* increased again to 133 in FY2022, driven by company-wide efforts to acqu
Slide 31: Net Sales per Client
Net Sales per Client All businesses DX only As a result of successful upselling to existing clients, net sales per client rose nearly thirteenfold in seven years We have 30 large clients with sales of ¥30 million or more per client. Becoming more intimate with clients and increasing the number of la
Slide 32: Full-Year Performance Summary (YoY)
Full-Year Performance Summary (YoY) All businesses DX only Million yen FY2021 FY2022 YoY YoY (%) FY2022 net sales increased Net sales 2,139 4,352 +2,213 +103.5 103.5% YoY to ¥4,352 million due to successful upselling to Consulting services 1,194 2,660 +1,466 +122.8 existing customers and steady Mark
Slide 33: 4. FY2023 Full-Year Earnings Forecast
4. FY2023 Full-Year Earnings Forecast 33
Slide 34: FY2023 Earnings Forecast Summary
FY2023 Earnings Forecast Summary All businesses DX only Net Sales Increase by 70%/Net Income Increase by 30% FY2022 FY2023 Million yen (Forecast) YoY YoY (%) (Actual) We expect FY2023 net sales to increase by 71.6% Net sales 4,352 7,470 +3,118 +71.6 We expect net sales from the digital Digital trans
Slide 35: Factors for Changes in Operating Income
Factors for Changes in Operating Income All businesses DX only We expect FY2023 operating income to be ¥1,270 million, factoring in the increase in recruiting expenses incurred from active recruiting and land and office rents, while expecting an increase in gross profit due to sales growth compared
Slide 36: Forecasts of Changes in SGA Expenses
Forecasts of Changes in SGA Expenses during the Period All businesses DX only Recruiting expenses and land and office rents, which are the main factors pushing down operating income, are expected to change significantly during the period, as shown below. * Recruiting expenses can vary depending on t
Slide 37: FY2023 Personnel Planning
FY2023 Personnel Planning All businesses DX only 42 new graduates are scheduled to join the company next fiscal year as a result of active recruiting activities targeting upper-level graduates. Although this will cause a temporary increase in SGA expenses, replacing partners with new graduates will
Slide 38: 5. FY2023 Management Policy
5. FY2023 Management Policy 38
Slide 39: Evaluation of Current Status toward Medium-Term Target TARGET100
Evaluation of Current Status toward Achieving the Medium-Term Target “TARGET100” Toward achieving the medium-term target “TARGET100” of ¥10 billion yen in sales and an operating income of ¥2 billion yen by FY2025, both net sales and operating income are showing steady progress. We will continue to f
Slide 40: Action Plan
Action Plan In order to achieve ¥10 billion in net sales one year ahead of schedule, the following initiatives have been developed: 1 Focus on “Profitable Hypergrowth” Actions will be taken to accelerate the top line to achieve ¥10 billion in net sales one year ahead of schedule. Critical invest
Slide 41: Caution
Caution The information and opinions contained in this presentation material are based on current economic, regulatory, market, and other conditions, but the Company makes no representation or warranty as to their truthfulness, accuracy, or completeness. This presentation material contains forward-l