Slide 1: Financial Results Briefing Material FY2023
Fiscal Year Ended March 2023 (FY2023) Financial Results Briefing Material Confidence Inc. Securities code: 7374
Slide 2: Table of Contents
Table of Contents 01 02 03 P.3 P. 11 P. 14 Executive Summary Company Consolidated Overview Financial Results and Segment Results 04 P. 25 05 P. 27 06 P. 30 Shareholder Progress in Growth Overview of Returns Strategies/Business Merger Topics Agreement Copyright© Confidence Inc. All Rights Reserved. |
Slide 3: Executive Summary
01 Executive Summary Copyright© Confidence Inc. All Rights Reserved. | 3
Slide 4: Financial Highlights of FY2023
Financial Highlights of FY2023 Achieved record highs in revenue as well as in profits at respective stages Achieved year-on-year growth of 17.5% in revenue and 25.2% in operating profit, with the operating profit margin at 18.0% ▍Full-year results +17.5% Staffing +73 Revenue 5.20 billion yen ass
Slide 5: Performance Trends
Performance Trends Progress rate against the earnings forecast (initial plan) stood at 100.0% for revenue (100.9% in FY2022) / 109.8% for operating profit (103.5% in FY2022) ▍Revenue ▍Operating profit +25.2% +17.5% Progress (Million yen) (Million yen) +23.3% rate 6,000 +24.0% Progress 1,000 933 (i
Slide 6: Summary of Dividend Distribution for FY2023
Summary of Dividend Distribution for FY2023 Year-end dividend for FY2023 has been finalized at 28.0 yen per share, as announced on February 9, 2023, in the revisions to dividend forecast This resulted in DOE (dividend on equity ratio) for FY2023 of 12.1%, exceeding the target of 10% ▍Full-year r
Slide 7: Execution of Merger Agreement with Interworks, Inc.
Execution of Merger Agreement with Interworks, Inc. Executed a merger agreement with Interworks, Inc. as of the date of this document, with the intention to conduct business integration with the company on August 1, 2023 (planned) The new company’s name is Kabushiki Kaisha Confidence Interworks
Slide 8: Vision of the New Company
Vision of the New Company Vision Empowering Professionals to Create the Future Together × Copyright© Confidence Inc. All Rights Reserved. | 8
Slide 9: Background and Purpose of the Business Integration
Background and Purpose of the Business Integration ▍Purpose of business integration 1 Expanding the business areas of the HR Solution business / achieving business growth through cross-selling 2 Reinforcing the Media business 3 Strengthening business management foundation and reducing administration
Slide 10: Briefing Session on the Merger
Briefing Session on the Merger ▍Briefing session video to be released A video presentation explaining the merger will be distributed from 3:30 p.m. on Friday, May 26, 2023 We plan to explain the details of the merger and respond to questions that were asked in advance For inquiries on this matter,
Slide 11: Company Overview
02 Company Overview Copyright© Confidence Inc. All Rights Reserved. | 11
Slide 12: Company Overview
Company Overview Company name Confidence Inc. Vision Nobuyuki Takushi, President Joined Staff Service Co., Ltd. in 1996, and worked as a person in charge of recruiting in the Human Representative Resources Department. Joined Staff Service Sales Marketing Co., Ltd. and, as Director and General Manage
Slide 13: Business Overview
Business Overview 1. HR Solution business 2. Media business Staffing business/recruitment business Media site operations Accommodate the needs of each phase/department Lovely Plush GAMEMO Planning Development Quality Support Back office management Media for women Fortune-telling media Interview medi
Slide 14: Consolidated Financial Results and Segment Results
03 Consolidated Financial Results and Segment Results Copyright© Confidence Inc. All Rights Reserved. | 14
Slide 15: [Consolidated] Financial Highlights of FY2023 (Full Year)
[Consolidated] Financial Highlights of FY2023 (Full Year) Revenue and respective profits continued to grow steadily from the year-earlier period Ongoing growth while maintaining high profit margins with gross profit margin at 35.4% (target: over 30%) and operating profit margin at 18.0% (target:
Slide 16: [Consolidated] Results Trends by Business (Full Year)
[Consolidated] Results Trends by Business (Full Year) By business segment, the HR Solution business has driven revenue and operating profit ▍Revenue ▍Operating profit +25.2% +17.5% HR Solution business HR Solution business (Million yen) (Million yen) Media business 933 6,000 Media business 売上高 5,1
Slide 17: [Consolidated] Quarterly Results Trends by Business
[Consolidated] Quarterly Results Trends by Business The HR Solution business, our mainstay operation, remained strong and grew continuously, renewing record-high revenue in Q4 Operating profit increased 6.1% year on year in Q4, even after factoring in provision for performance bonuses and expens
Slide 18: [HR Solution Business] Financial Highlights of FY2023
[HR Solution Business] Financial Highlights of FY2023 (Full Year) Securely achieved growth in revenue and segment profit while keeping profit margin at a high level ▍Full-year results FY2023 FY2023 Full-year forecast (Million yen) YoY Progress rate (Full year) (Full year) - Revised - Revenue 4,353
Slide 19: [HR Solution Business] Trends in Major KPIs
[HR Solution Business] Trends in Major KPIs Creator staffing assignments, which serve as the foundation of the Company’s recurring income model, steadily increased, although they slightly stagnated in Q4, rising by 73 people from the year-earlier period The utilization rate has been kept at a hi
Slide 20: [Media Business] Financial Highlights of FY2023
[Media Business] Financial Highlights of FY2023 (Full Year) Although the Media business accounts for a small portion of overall revenue and the impact on consolidated results is limited, the full-year results were at a level similar to the previous fiscal year We aim to establish and expand the
Slide 21: [Media Business] Trends in Major KPIs and Targeted Revenue Structure
[Media Business] Trends in Major KPIs and Targeted Revenue Structure Page views (PVs) were at a low level throughout Q4 Aim to establish and expand the ecosystem through collaboration with the HR Solution business ▍Trends in PVs ▍Improvements in current revenue structure / Target (Thousand PVs)
Slide 22: [Consolidated] Quarterly SG&A Expenses Trends
[Consolidated] Quarterly SG&A Expenses Trends In line with the revenue growth, made investments to prepare for future growth, taking account of our target profit margin ➡ appropriately controlled SG&A expenses SG&A expenses for Q4 ended up increasing due to accrual of performance bonuses for ach
Slide 23: [Consolidated] Factor Analysis of Increase/Decrease in Operating Profit
[Consolidated] Factor Analysis of Increase/Decrease in Operating Profit (YoY) Gross profit increased steadily along with business expansion, contributing to larger operating profit Moreover, recruited head office employees and took measures in line with enhanced recognition of the Company, towar
Slide 24: [Consolidated] Balance Sheets/Statements of Cash Flows
[Consolidated] Balance Sheets/Statements of Cash Flows There is no concern about financial stability (net cash: 2.02 billion yen / equity ratio: 69.6%) ▍Balance sheets at end of Q4 FY2023 ▍Cash flows for Q4 FY2023 (Cumulative) （Million yen） （Million yen） Balance of cash and deposits as of March 31
Slide 25: Shareholder Returns
04 Shareholder Returns Copyright© Confidence Inc. All Rights Reserved. | 25
Slide 26: Dividends of Surplus for FY2023
Dividends of Surplus for FY2023 For FY2023, finalized at 48.0 yen per share (year-end dividend: 28.0 yen), increasing from the previous fiscal year ➡ Payments will commence on June 14, 2023 (planned) Achieve shareholder returns in a way surpassing the target values of both payout ratio and DOE t
Slide 27: Progress in Growth Strategies/Business Topics
05 Progress in Growth Strategies/Business Topics Copyright© Confidence Inc. All Rights Reserved. | 27
Slide 28: Growth Strategy (Overall Picture)
Growth Strategy (Overall Picture) Will continue to expand business scale in line with the six initiatives of the medium- to long-term growth strategy announced upon listing in June 2021 Six initiatives of the medium- to long-term growth strategy Deepen client relationships and establish an ecosyst
Slide 29: Growth Strategy: Expand Business of HR Solution Services
Growth Strategy: Expand Business of HR Solution Services [Enter into Freelance Business Area] Press release dated February 9, 2023 Expand business of HR Solution services Industry│Area│Contract type Background of establishment Entertainment industry Regional operation base Freelance • Assign high-en
Slide 30: Overview of Merger Agreement
06 Overview of Merger Agreement Copyright© Confidence Inc. All Rights Reserved. | 30
Slide 31: Execution of Merger Agreement with Interworks, Inc.
Execution of Merger Agreement with Interworks, Inc. Executed a merger agreement with Interworks, Inc. as of the date of this document, with the intention to conduct business integration with the company on August 1, 2023 (planned) The new company’s name is Kabushiki Kaisha Confidence Interworks
Slide 32: Company Overview: Interworks, Inc.
Company Overview ： Interworks, Inc Company name Interworks, Inc. Representative Kazuyuki Matsumoto, President Established March 1991 NBF Toranomon Bldg. 8F Head office 1-6-21 Nishishinbashi, Minato-ku, Tokyo [Osaka Branch] Shinosaka Central Tower South Bldg. 10F 5-5-15 Nishinakajima, Yodogawa-ku, Os
Slide 33: Vision of the New Company
Vision of the New Company Vision Empowering Professionals to Create the Future Together × Copyright© Confidence Inc. All Rights Reserved. | 33
Slide 34: Background and Purpose of the Business Integration
Background and Purpose of the Business Integration ▍Purpose of business integration 1 Expanding the business areas of the HR Solution business / achieving business growth through cross-selling 2 Reinforcing the Media business 3 Strengthening business management foundation and reducing administration
Slide 35: Outline of the New Company (Planned)
Outline of the New Company (Planned) General business Company Officers President Nobuyuki Takushi Kabushiki Kaisha Confidence Interworks management name Senior Managing In charge of HR Solution Takuro Yoshikawa Director business and Media business English name Interworks Confidence Inc. In charge of
Slide 36: Schedule of the Merger and Handling of FY2024 Forecasts
Schedule of the Merger and Handling of Consolidated Earnings Forecast and Dividend Forecast for FY2024 ▍Business integration schedule ▍Consolidated earnings forecast / dividend forecast for FY2024 Date of merger agreement May 12, 2023 Undetermined at this point in time, as it is difficult to Date of
Slide 37: Inquiries and Handling of this Material
Envisioning the future together at the frontline of the creative industry Inquiries about this material: Administration Division (ir@confidence-inc.jp) Handling of this material This material includes forward-looking statements. These are nothing but the statements prepared on the basis of the infor