Slide 1: FY2020 Financial Results
FY2020 Financial Results Livesense Inc. (TSE1: 6054) February 12, 2021
Slide 2: Agenda
1 Financial Results 2 FY2020 Summary Agenda 3 FY2021 Policy 4 Appendix Copyright © LIVESENSE Inc.
Slide 3: 1. Financial Results
1. Financial Results
Slide 4: Full Year Executive Summary
Full Year Executive Summary 4 Consolidated sales and income down due primarily to decreased corporate hiring activities as a result of COVID-19 and impact of DOOR Chintai business transfer. Net sales ¥4,078 million ( YoY -¥2,110 million -34.1% ) Operating income -¥1,129 million ( YoY -¥1,123 mil
Slide 5: Full Year Financial Results Overview
Full Year Financial Results Overview 5 (Millions of JPY) * Supplemental information for accounting treatment of transfer of Syukatsu Kaigi In relation to transfer of Syukatsu Kaigi, we have concluded share transfer agreement with Port as well as licensing agreement concerning use of Tenshoku Kaigi r
Slide 6: Full Year Net Sales and Operating Income
Full Year Net Sales and Operating Income 6 Consolidated net sales down 34.1% YoY, consolidated operating income down ¥1,123 million YoY due mainly to impact of COVID-19 and transfer of DOOR Chintai. (Millions of JPY) Machabaito Operating Income Tenshoku Kaigi Tenshoku Navi 122 -5 Other FY2018 FY2019
Slide 7: Full Year Operating Income - YoY Comparison
Full Year Operating Income -YoY Comparison 7 Promoting reform of business portfolio pushed income down ¥320 million. COVID-19 and other factors pushed income down ¥790 million. (Millions of JPY) FY2019 Operating income -5 Decrease in income resulting from business portfolio reform* -326 Increase in
Slide 8: Full Year Operating Expenses
Full Year Operating Expenses 8 Some ad placements adjusted and administrative expenses optimized in conjunction with decrease in net sales. (Millions of JPY) Personnel expenses Advertising costs Others 6,669 6,195 2,077 1,624 5,208 1,482 2,148 2,366 1,495 2,443 2,230 2,204 FY2018 FY2019 FY2020 Copyr
Slide 9: 2. FY2020 Summary
2. FY2020 Summary
Slide 10: 2. FY2020 Summary: Company-wide policy
10 2. FY2020 Summary Company-wide policy Copyright © LIVESENSE Inc.
Slide 11: FY2020 Company-wide Policy Summary
FY2020 Summary 11 FY2020 Company-wide Policy Accelerated optimization of business portfolio to pursue our corporate vision “Invent the next common.” • Substantial decrease in sales and income due to COVID-19 Enhance profitability of existing businesses Bad • Progress made on media improvements and b
Slide 12: Optimization of Business Portfolio
Optimization of Business Portfolio 12 Business portfolio concept Accelerate optimization of business portfolio and establish policies by domain. Allow short-term negative P&L depending on progress in each domain. Distant Profit-earning New business domain domain Launch through proprietary Pursue M&A
Slide 13: Progress on Restructuring Business Portfolio
Optimization of Business Portfolio 13 Progress on Restructuring Business Portfolio Two businesses transferred in last year. Progress being made on securing human resources for growth. Among existing businesses, Machbaito performing well*, focus on new businesses. *Prior to spread of COVID-19. 1Q/20
Slide 14: Impact of COVID-19
Impact of COVID-19 14 Domestic COVID-19 situation not improving; shrinking of corporate hiring activities will continue. Market environment not expected to return to normal in near future, but No change to overall policy of focusing on medium-to long-term growth. Impact Short-term policies Medium- t
Slide 15: Impact of COVID-19: Balance Sheet
Impact of COVID-19 15 No concerns over financial standing. Continuing to invest in growth, including new businesses. Balance sheet statement (December 31, 2020) Current liabilities Current 540 assets 4,030 FY2020上半期 FY2021上半期 YoY Equity FY2020上半期 FY2021上半期 Fixed liabilities Cash and 3,640 売上高 deposi
Slide 16: 2. FY2020 Summary: Existing business
16 2. FY2020 Summary Existing business Copyright © LIVESENSE Inc.
Slide 17: Net Sales and Operating Income of Existing Businesses
Full Year Net Sales and Operating Income of 17 Existing Businesses Net sales down ¥1,294 million and operating income down ¥822 million YoY in existing businesses due to COVID-19 and other factors. Individually, Tenshoku Navi sales down a substantial 41.8% YoY. (Millions of JPY) Machbaito Tenshoku K
Slide 18: Machbaito: Increasing Name Recognition
Machbaito: Increasing Name Recognition 18 Name recognition rising steadily owing to YouTube and other promotions. Trend in name recognition Jobsense Machbaito Dec-17 Dec-18 Dec-19 Dec-20 * Service name changed from “Jobsense” to “Machbaito” in September 2017 Copyright © LIVESENSE Inc.
Slide 19: Machbaito: Expanding App Use
Machbaito: Expanding App Use 19 Percentage of applications via app more than doubled over 1 year. Aiming for ongoing app use through UX improvements, etc. Machbaito App App usage 25.5% 9.7% 2019 2020 App Web * Share of applications in December of each year Copyright © LIVESENSE Inc.
Slide 20: Tenshoku Navi: Implementation of early improvement
Tenshoku Navi: 20 Implementation of early improvement Substantial drop in sales due to decrease in hiring activities at major customers and decrease in user inflow and registration as a result of COVID-19. Work on early improvements by rolling out successful measures from other businesses. Factors B
Slide 21: Real Estate: Launch of IESHIL Assessments
Real Estate: Launch of IESHIL Assessments 21 Launched IESHIL Assessments, a one-stop assessment service for real estate sales. Improving efficiency of real estate sales and supporting sales at fair prices by leveraging customer attraction of IESHIL and expert knowledge and neutrality of PHIL LIFE. R
Slide 22: 2. FY2020 Summary: New business
22 2. FY2020 Summary New business Copyright © LIVESENSE Inc.
Slide 23: Launching New Business
Launching New Business 23 Aim for different model than existing businesses to diversify business models. Multiple business proposals simultaneously being considered at specialized organizations. Aim is to launch several new businesses within two years. New business strategy New Existing businesses b
Slide 24: Strengthening of Development System
Strengthening of Development System 24 Strengthened new business development system through business selection and concentration. Personnel composition 10.9% 82.5% 88.1% 17.5% 1.0% Dec-19 Dec-20 New businesses Existing businesses DOOR Chintai / Syukatsu Kaigi * Personnel composition (creators/planne
Slide 25: Status of New Business Initiatives
Status of New Business Initiatives 25 Test marketing and prototyping underway for multiple new business proposals. No change to investment plan despite impact of novel coronavirus. New business proposals under development/consideration (example) HR planning tech service HR hiring tech service CtoC c
Slide 26: 2. FY2020 Summary: Organization
26 2. FY2020 Summary Organization Copyright © LIVESENSE Inc.
Slide 27: Becoming a Company That Enjoys the Continued Support of Society
Becoming a Company That Enjoys the Continued 27 Support of Society Continuing initiatives from previous year based on “Nine Guidelines for Change.” Aiming to develop meaning in working at Livesense, securing outstanding human resources and realizing a strong organization with consistent values. Nine
Slide 28: Efforts for New Work Styles
Efforts for New Work Styles 28 Transitioned to company-wide work from home to prevent the spread of COVID-19. Most recent average percentage of employees at offices is less than 10%. Aiming to maximize productivity and results in a new normal, launched “Invent our next work and life style” project.
Slide 29: Relationship Between Company and Society
Relationship Between Company and Society 29 As a company that solves society’s problems, we engage in efforts to discover and solve biases and distortions in society outside of our business as well. Our aim is to share values with each of our stakeholders and establish our branding. Efforts to elimi
Slide 30: 3. FY2021 Policy
3. FY2021 Policy
Slide 31: Optimization of Business Portfolio
What Livesense is aiming for 31 Become a company that can continue to pursue our corporate vision “Invent the next common.” through our business portfolio. Becoming a company that continues to “Invent the next common.” Optimization of Business Portfolio Existing businesses New businesses Strengthen
Slide 32: What Livesense is aiming for
What Livesense is aiming for 32 Focus on enhancing profitability of existing businesses. Invest profits from existing businesses into new businesses in the aim of establishing new pillars of income. Enhance profitability Level of income that of existing makes ongoing business businesses investments
Slide 33: Company-wide Policy for FY2021
Company-wide Policy for FY2021 33 Policy: Balance restructuring for profitability with launching new businesses to become pillars of the future in pursuit of our corporate vision “Invent the next common.” Enhance profitability of existing businesses ・Restructure to be able to create profits even if
Slide 34: Enhancing Profitability of Existing Businesses: Business Model
Enhancing Profitability of Existing Businesses: 34 Business Model Main format is success fee-based. Key to growth is user acquisition and accuracy of matching. Differences in sales models by fee format Success fee-based Posting fee-based Machbaito/Tenshoku Navi Regular job posting sites Hiring Succe
Slide 35: Enhancing Profitability of Existing Businesses: Growth Strategy
Enhancing Profitability of Existing Businesses: 35 Growth Strategy Promote efficient customer attraction and matching through linking of sales, marketing and media. Accelerate growth by rolling out business model of Machbaito, which has had some success, to Tenshoku Navi, which has similar business
Slide 36: Enhancing Profitability of Existing Businesses: Cost Strategy
Enhancing Profitability of Existing Businesses: 36 Cost Strategy Work on cost reduction leading to greater, sustainable profitability. Consolidate offices in Tokyo area and review positioning. Limit job types for mid-career hiring and work on streamlining business operations. Aim for working a hybri
Slide 37: Launching New Business
Launching New Business 37 Aim to launch several new businesses in FY2021. Test marketing underway for multiple proposals. Expect to invest more than previous year. New business strategy New Existing businesses businesses Basic policy Tie into solutions to social problem Human resources Business doma
Slide 38: Financial Forecasts for FY2021
Financial Forecasts for FY2021 38 Financial forecast to be determined due to difficulty in reasonably calculating impact of COVID-19. Work on restructuring to be able to create profits quickly even if COVID-19 pandemic continues. (Millions of JPY) Copyright © LIVESENSE Inc.
Slide 39: LIVESENSE
6 LIVESENSE BIOEKAE, KALKS.
Slide 40: 4. Appendix
4. Appendix
Slide 41: 4. Appendix: Quarterly results
41 4. Appendix Quarterly results Copyright © LIVESENSE Inc.
Slide 42: Quarterly Net Sales and Operating Income
Quarterly Net Sales and Operating Income 42 (Millions of JPY) Business transfer Spread of COVID-19 1,629 1,531 1,548 1,480 367 1,350 326 261 483 178 318 255 259 200 1,003 883 290 163 841 242 235 210 86 252 81 198 134 120 254 147 148 124 691 724 724 761 501 493 513 514 58 63 ▲ 88 ▲ 38 1Q 2Q 3Q 4Q 1Q
Slide 43: Quarterly Operating Income - YoY Comparison
Quarterly Operating Income -YoY Comparison 43 (Millions of JPY) 4Q/19 Operating income -38 Other Costs Decrease Ad Cost +59 Decrease 4Q/20 +237 Operating income -382 Net Sales Personnel Cost Decrease Increase -639 -1 Copyright © LIVESENSE Inc.
Slide 44: Quarterly Operating Expenses
Quarterly Operating Expenses 44 (Millions of JPY) Personnel expenses Advertising costs Others 1,637 1,566 1,519 1,472 1,478 426 410 1,279 402 1,226 1,223 384 412 363 363 342 610 656 535 564 523 342 302 327 552 545 553 552 543 573 560 553 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2019 FY2020 Copyright © LIVESENSE In
Slide 45: 4. Appendix: Company overview
45 4. Appendix Company overview Copyright © LIVESENSE Inc.
Slide 46: LIVE + SENSE Happiness Begetting Happiness.
Origin of the company name 46 /Business Philosophy Origin of the company name LIVE + SENSE Business Philosophy Happiness Begetting Happiness. Corporate Vision Invent the next common. Copyright © LIVESENSE Inc.
Slide 47: Corporate History
Corporate History 47 Providing various services to solve problems and inconveniences since founding. October 2012 TSE 1st Section Redesignation December 2012 Listed on TSE February 2006 Mothers Establishment of a company 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 * Se
Slide 48: Basic Philosophy of Service Operations
Basic Philosophy of Service Operations 48 Operate services to solve society’s problems. Aim to solve problems faced by many users and bring about their happiness by having Livesense services become “the next common.” Achievement of Happiness Begetting Happiness Inventing the next common Solving soci
Slide 49: Corporate Profile
Corporate Profile 49 Company name Livesense Inc. CEO/Founder Taichi Murakami Business Philosophy Happiness Begetting Happiness. Corporate Vision Invent the next common. Established February 8, 2006 Date listed TSE 1st Section: October 1, 2012 TSE Mothers: December 7, 2011 Number of Employees (Non-Co
Slide 50: Employees
Employees 50 No. of Employees (Consolidated) Breakdown of Full-time Employees (People) Part-time/Subsidiaries Regular/Subsidiaries Customer Administ Part-time Support ration Regular/R 4% 14% Regular/HQ Engineers/ Designers 36% Sales 16 6 7 15% 111 110 114 78 72 Planning 76 31% 205 191 201 *Non-conso
Slide 51: Disclaimer
Livesense Inc. (below, the Company) has prepared this material to provide current information about the Company. The Company prepared this material using generally known information about social and economic conditions and certain assumptions that we deemed to be reasonable. The information found in