Slide 1: FY2016 Full-term Results Presentation Material
FY2016 Full-term Results Presentation Material May 12, 2016 e-Seikatsu Co., Ltd. TSE Mothers 3796 Copyright(c) 2016 e-Seikatsu Co.,Ltd. All Rights Reserved.
Slide 2: Table of Contents
Table of Contents 1．Summary of Full-term Results for FYE March 31, 2016 2．Business Forecast 3．Business Overview 4．Appendix Business Outline Financial Data 1 Copyright(c) 2016 e-Seikatsu Co.,Ltd. All Rights Reserved.
Slide 3: 1. Summary of Full-term Results for FYE March 31, 2016
1. Summary of Full-term Results for FYE March 31, 2016 2 Copyright(c) 2016 e-Seikatsu Co.,Ltd. All Rights Reserved.
Slide 4: Highlights
Highlights Sales and income steadily increased from the previous year. (Only net income declined) Consolidated sales: 1,934 million yen (FY2015 1,851 million yen, YOY change +82 million yen, +4.5%) ・Cloud Service revenue: 1,829 million yen (FY2015 1,717 million yen YOY change +112 million yen +6.6
Slide 5: Sales and Operating Income Increased YOY
Sales and Operating Income Increased YOY FY2015 FY2016 Unit: Million yen ・Sales rose 82 million yen to Sales Sales 1,934 million yen. 1,934 1,851 Operating income grew around COGS 704 5 million yen to 125 million COGS 669 yen. Gross Profit Gross Profit 1,230 1,182 ・COGS increased due to SG&A SG&A 1,
Slide 6: ES e-Bukken One is Becoming Our Core Cloud Computing Service
“ES e-Bukken One” is Becoming Our Core Cloud Computing Service ES e-Bukken ES e-Bukken One (Rental Property + Sales Property) One/sales ES e-Bukken One WebSite expansion ES e-Bukken One Rental Property phase ES e-Bukken One Sales Property ES Sales Support ES-WebSite Ad Placement Function for Rental
Slide 7: The Number of Licenses Provided is Increasing Steadily
The Number of Licenses Provided is Increasing Steadily Transition of Number of Licenses by Service (Unit: Number of services with payment started) 800 One Rental Property (Leasing Management) 700 One Management One Sales 600 One Website 500 400 300 200 100 0 Apr. May Jun. Jul. Aug. Sep. Oct. Nov. De
Slide 8: Increase in Revenue Mainly due to Our Core Turnkey Services
Increase in Revenue Mainly due to Our Core Turnkey Services (Monthly recurring revenue) Unit: Million yen Breakdown of Sales Fluctuation (Cloud Solution Business) 2,100 +14（↑） △33（↓） Turnkey ＋0(↑) +131（↑） services Non-Turnkey Turnkey services (Up-front services △6（↓） (Monthly recurring revenue) Netw
Slide 9: Cloud Solution Business Revenues by Product
Cloud Solution Business Revenues by Product Item (Million yen) FY2015 FY2016 YOY change YOY change (%) Cloud Service 1,717 1,829 112 6.6％ Turnkey services * 1,551 1,697 145 9.4％ Up-front revenue 57 71 14 24.4％ Monthly recurring revenue 1,493 1,625 131 8.8％ Non-turnkey services * 165 132 △33 △19.9％ N
Slide 10: Sales of Cloud Service Continue to Reach a Record High
Sales of Cloud Service, Our Core Product, Continue to Reach a Record High Transition of Sales by Item (Cloud Solution Business) Unit: Million yen A-Cloud Service (System Development) 700 A-Cloud Service (Ad related services) Network Solution Cloud Service 600 482 492 501 500 461 473 461 475 473 457
Slide 11: Initial Earnings Forecast vs Actual Consolidated Earnings
Initial Earnings Forecast vs Actual Consolidated Earnings FY2016 FY2016 Initial Forecast Results (Announced on May 14, 2015) Achieved Unit: Million yen Sales 98.9 % Sales 1,955 1,934 Achieved Achieved 96.1 97.3 % % Operating Recurring Operating Recurring Achieved Income Income Income Income 130 128
Slide 12: Breakdown of Initial Sales Forecast vs Actual Sales
Breakdown of Initial Sales Forecast vs Actual Sales (Cloud Solutions Business) FY2016 Initial Forecast FY2016 Item (Million yen) Difference Achieved (Announced on May 14, Results 2015) Cloud Service 1,849 1,829 △20 98.9％ Turnkey services * 1,715 1,697 △18 98.9％ Up-front revenue 82 71 △10 87.2％ Month
Slide 13: Number of Stores per Company is Expanding
Number of Stores per Company (Clients Having Multiple Stores) is Expanding As of the end of Mar. 2016: Transition of Number of Companies and Stores Using Our Services 3,400 1,266 companies and 3,125 stores 3,200 # of stores per company: 2.47 3,063 3,068 3,102 3,125 Stores 2,973 3,000 As of the end o
Slide 14: Resulting in a Steady Increase in Monthly ARPU
Resulting in a Steady Increase in Monthly ARPU Transition of Monthly ARPU As of the end of Mar. 2016 Unit: yen Monthly ARPU/company 135,000 approx. 122,800 yen/company Monthly ARPU/company 130,000 125,000 124,000 123,500 122,200 122,800 118,600 122,900 123,600 120,000 118,500 121,800 116,700 117,800
Slide 15: Quality of Support Raising Customer Retention Rate
The Quality of Support Systems and Services was Enhanced, for Raising Customer Retention Rate Transition of Termination Rate 3.00% Termination rate (company) 1.93% 1.88% 2.00% 1.51% 1.42% 1.35% 1.20% 1.20% 1.28% 1.00% 1.10% 0.86% 0.87% 0.80% 0.48% 0.00% Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Fe
Slide 16: Operating Income is Increasing thanks to Rising Monthly Sales
Operating Income is Increasing thanks to Rising Monthly Sales Transition of Operating Income (Consolidated) Unit: Million yen Operating Income Unit: % Gross Profit Margin 100 100.0 Operating Income Margin 90.0 80 69.3 80.0 68.8 67.8 68.6 69.2 65.5 62.2 63.2 64.8 64.8 63.0 64.6 63.9 70.0 61.9 62.7 62
Slide 17: Total Expenses are Under Control
Total Expenses are Under Control (COGS) Personnel expenses (COGS) Outsourcing expenses (Consolidated) COGS (COGS) System management and depreciation expenses (COGS) Other expenses Unit: % Unit: Million yen (COGS) Asset transfer 400 40% COGS rate 350 38.1% 37.8% 35% 37.3% 37.0% 36.1% 37.2% 34.5% 36.8
Slide 18: Stable EBITDA
Stable EBITDA (Operating Income + Depreciation) Transition of EBITDA (Consolidated) Unit: Million yen Unit: % 240 80.0 EBITDA EBITDA Margin 210 70.0 180 60.0 165 167 150 146 150 140 141 50.0 128 120 117 120 40.0 104 102 103 33.5 33.4 31.1 31.5 30.0 30.3 86 28.6 90 25.4 78 25.6 30.0 69 74 22.9 22.1 2
Slide 19: Operating Activities Favorable, but Operating CF Impacted by Tax Payments
Operating Activities Favorable, but Operating CF Impacted by Rise in Consumption Tax and Other Tax Payments Cash Flow Statement (Consolidated) FY2015 FY2016 Payment of Unit: Million yen Other 18 corporate income Payment of Increase in tax, etc. △37 Other 27 corporate income consumption tax, etc. △59
Slide 20: Financially Sound: Consolidated Balance Sheet YOY Comparison
Financially Sound Consolidated Balance Sheet YOY Comparison As of the end of March, 2015 Unit: Million yen As of the end of March, 2016 Current ratio Current ratio 192.5％ 238.1％ Current Liabilities 296 Current Liabilities 343 Current Assets Current Assets 706 Non-Current Liabilities 106 660 Non-Curr
Slide 21: Continuing Return to Shareholders Through Dividends
Continuing Return to Shareholders Through Dividends, with This Term’s Dividend being 4 Yen per Share Per Share Information Total Payout Ratio Unit: yen Unit: Million yen 50 100.0% 250 100.0% 90.2% Net income Net income per share 45 83.7% Dividend per share 90.0% 225 Total dividend 90.0% Total amount
Slide 22: 2. Business Forecast
2. Business Forecast 21 Copyright(c) 2016 e-Seikatsu Co.,Ltd. All Rights Reserved.
Slide 23: Points of Earnings Forecast
Points of Earnings Forecast Revenue, Cost, Profit, Dividend Sales are estimated to increase to 2,044 million yen, an increase of 109 million yen from 1,934 million yen in the previous term. We will mainly promote the core service “ES e-Bukken One” which include “Rental Property” (including the ren
Slide 24: Forecasting a Rise in Sales, Profit and Dividend of 5 Yen per Share
Forecasting a Rise in Sales, a Substantial Increase in Profit, and a Full- term Dividend of 5 Yen per Share Mid-term Full-term Full-term YOY change (Million yen) Forecast Forecast Results Difference (%) FY2017 FY2017 FY2016 Sales 1,009 2,044 1,934 109 5.7％ Operating income 88 182 125 56 45.4％ Recurr
Slide 25: Cloud Service (Turnkey Services) Contributes
Cloud Service (Turnkey Services) Contributes Unit: Million yen Breakdown of Expected To-Sales Fluctuation (Cloud Solution Business) 2,200 △6（↓） △25（↓） △1（↓） +150（↑） Turnkey △2（↓） services Non-Turnkey Network △4（↓） Turnkey services Ad related (Up-front services Solution System (Monthly recurring serv
Slide 26: Cloud Solution Business Revenue Forecast Breakdown
Cloud Solution Business Revenue Forecast Breakdown Item (Unit: million yen) FY2016 FY2017 YOY change YOY change (%) Cloud Service 1,829 1,948 118 6.5％ Turnkey services * 1,697 1,841 144 8.5％ Up-front revenue 71 65 △6 △9.6％ Monthly recurring revenue 1,625 1,776 150 9.3％ Non-turnkey services * 132 106
Slide 27: Investments for Growth to be Kept Within Depreciation Levels
Investments for Growth to be Kept Within Depreciation Levels Unit: Million yen Unit: Million yen HW/SW leased asset 800 In-house software development 800 Office equipment, etc. 700 700 Actual Actual 600 Actual Forecast 600 Forecast Actual Actual 443 465 Actual 470 452 500 408 436 500 441 9 30 9 399
Slide 28: 3. Business Overview
3. Business Overview 27 Copyright(c) 2016 e-Seikatsu Co.,Ltd. All Rights Reserved.
Slide 29: To Become the Best Real Estate Information Technology Company in Japan
To Become the Best “Real Estate Information Technology Company” in Japan Target Index Number of clients 5,000 companies Monthly ARPU more than ¥100,000 Gross profit margin on Cloud Service more than 70％ Expand and grow our client base To keep increasing clients by evolving services and enrichi
Slide 30: Outlook for Future Service Development Systems
Outlook for Future Service Development Systems 2016 2017 2018 2019 2020 Existing Services Termination of Sales/Support Shift to Mobile First of Solutions for Consumers Improvement of Service Improvement of Response Capabilities to Market Needs by Dividing Development Cycles Applications and Function
Slide 31: ES e-Bukken One Evolves Real Estate Business
“ES e-Bukken One” Evolves Real Estate Business Unitary Management of Property Information, People Customer Information and Contract Information Money Organizations & Cash Flow Employees Database Database Customers More than 4,000 items can Sales Database Database be stored. Real Estate Management of
Slide 32: Soliciting, Rent Management, and Repair Management are all Fully Covered
Soliciting, Rent Management, and Repair Management are all Fully Covered (Lease) Lease brokerage and agency businesses ■ Merits of conducting all tasks with a single system Soliciting To receive requests for solicitation ① ・To store transaction records All tasks are covered by I want to lend Cloud!
Slide 33: The Best Cloud Service Specialized for Real Estate Business
The Best Cloud Service Specialized for Real Estate Business ES e-Bukken One won “Grand Prix-Society and Industry” of “ASPIC Cloud Award 2015*.” * ASPIC Cloud Award 2015 is given to excellent and socially beneficial cloud services in Japan, hosted by ASPIC and sponsored by the Ministry of Internal Af
Slide 34: 4. Appendix
4. Appendix Business Outline Financial Data 33 Copyright(c) 2016 e-Seikatsu Co.,Ltd. All Rights Reserved.
Slide 35: Business Outline
Business Outline 34 Copyright(c) 2016 e-Seikatsu Co.,Ltd. All Rights Reserved.
Slide 36: Focused on the Large Real Estate Industry
Focused on the Large Real Estate Industry Real estate industry 13.2% (56 trillion yen) - The real estate industry represents 13.2% of GDP (427 trillion yen Source： National Accounts for 2014 (GDP by economic activity) (nominal)) Residential Non-residential Land 1,118 trillion yen 357 trillion yen 21
Slide 37: Real Estate Industry is an Information Industry
Databases is Essential for Real Estate Industry More than Real estate industry is an “Information industry” 4,000 items can be - Requires immediate and accurate stored for each property information つなぐ、不動産クラウド。 - The necessity of database that can manage the information on property, customers, and c
Slide 38: Cloud Service is Ideal for the Real Estate Industry
“Cloud Service” is Ideal for the Real Estate Industry Benefits of Cloud Services No need for initial investment in servers, etc. Short lead time. No need to update (the latest version is always available). Saved data is safe and secure (security systems). Ideal part of BCP (Business Contin
Slide 39: Mission and Vision
Mission and Vision Vision To become an essential integral information infrastructure for the real estate market, where a variety of information on real estate is put together. Mission To create a market with high degree of satisfaction and reliability for all participants by enhancing the transparen
Slide 40: Competitive Advantage of e-Seikatsu
Competitive Advantage of e-Seikatsu To pursue a single (large) field and offer “indispensable” systems for business Our development staff who are versed in real estate businesses develop systems (accumulating know-how). Direct sales force = tight relationship with clients, deep industry knowledge Sw
Slide 41: Quality, Safety and Reliability of Our Services
Quality, Safety and Reliability of Our Services ▍ Obtained “ISO/IEC20000-1:2011” (international standards) for improving our service level. “ISO/IEC20000-1:2011” (International standard of IT service management system) (Initial certification in October, 2009) “ISO/IEC27001:2013” (International s
Slide 42: Business and Revenue Breakdown
Business and Revenue Breakdown Revenue Business Service Category Element Type Contract Type Service and Revenue Details Recognition System usage fees for cloud service Stock Monthly Turnkey services Cloud Service Annual (MRR) amount Operation services of customized solutions (resulting from A-cloud
Slide 43: Company Profile
Company Profile Established : January 21, 2000 Paid-in capital : 628 million 411 thousand 540 yen (As of the end of March 2016) Listing : Mothers section of the Tokyo Stock Exchange (Code: 3796) The Bank of Tokyo-Mitsubishi UFJ, Ltd., Mizuho Bank, Ltd., Resona Bank, Ltd., Relationship banks : Sumito
Slide 44: Financial Data
Financial Data 43 Copyright(c) 2016 e-Seikatsu Co.,Ltd. All Rights Reserved.
Slide 45: ES e-Bukken One License and User Numbers
“ES e-Bukken One” License and User Numbers (Unit: Number of services with payment started, companies) 2014 2015 2016 ES e-Bukken One Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Rental Property New 159 163 167 172 182 195 194 2
Slide 46: Consolidated Income Statement
Consolidated Income Statement FY2014 FY2015 FY2016 (Million yen) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Sales 454 461 451 452 450 452 476 473 457 481 493 501 COGS 139 158 171 171 165 159 167 176 169 170 177 186 Gross Profit 314 302 279 281 284 292 308 296 288 311 315 315 Gross Profit Margin 69.2％ 65.5％
Slide 47: Consolidated Balance Sheet
Consolidated Balance Sheet FY2014 FY2015 FY2016 (Million yen) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Current Assets Total 635 619 573 564 526 578 613 660 567 607 627 706 Non-Current Assets 1,311 1,329 1,339 1,352 1,349 1,335 1,333 1,313 1,298 1,393 1,348 1,302 Total Assets Total 1,947 1,949 1,912 1,917
Slide 48: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement FY2014 FY2015 FY2016 (Million yen) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q CF from 103 154 63 70 132 162 145 145 38 169 121 180 Operating Activities CF from △82 △109 △95 △100 △115 △88 △97 △103 △94 △109 △80 △86 Investing Activities CF from △71 △21 △8 △9 △28 △13 △10 △10 △3
Slide 49: Cloud Solution Business Revenues by Product
Cloud Solution Business Revenues by Product FY2014 FY2015 FY2016 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Cloud Service 432 417 418 419 418 426 434 437 441 450 468 469 Turnkey services 389 375 376 377 376 384 393 396 407 417 434 437 Up-front revenue 11 10 12 6 9 14 18 15 18 17 22 13 Monthly recurring rev
Slide 50: Number of Employees
Number of Employees Unit: Employees 200 WSDG Sales Corp. Total 180 160 146 138 140 140 137 139 140 133 134 131 13 13 13 127 13 12 15 15 14 13 120 15 Corp. 11.0% 100 70 76 70 67 70 68 67 73 WSDG 66 80 67 40.1% 60 40 Sales 57 57 57 52.8% 52 55 54 52 55 51 20 45 0 Mar. 2014 Jun. 2014 Sep. 2014 Dec. 201
Slide 51: The real estate market will grow with cloud services.
The real estate market will grow with cloud services. Statements made at the meeting or included in this document that are not historical facts are forward • 本資料に記載された内容は、現時点において一般に認識されている経済・社会等の情勢および当社が合理的と判断した一定の前提に基づいて作成されておりますが、 looking statements about the future performance of e-Seikatsu Co.,