E-seikatsu Co., Ltd. · TSE:3796

E-seikatsu — FY2017 Earnings Presentation

52 slides from E-seikatsu's earnings presentation, May 11, 2017

  1. Slide 1: FY2017 Full-term Results Presentation Material

    FY2017 Full-term Results Presentation Material May 11, 2017 e-Seikatsu Co., Ltd. Securities code: 3796 Copyright(c) 2017 e-Seikatsu Co.,Ltd. All Rights Reserved.

  2. Slide 2: Table of Contents

    Table of Contents 1． Summary of Full-term Results for FYE March 31, 2017 2． Business Forecast 3． Business Overview 4． Appendix Business Outline Financial Data 1 Copyright(c) 2017 e-Seikatsu Co.,Ltd. All Rights Reserved.

  3. Slide 3: 1. Summary of Full-term Results for FYE March 31, 2017

    1. Summary of Full-term Results for FYE March 31, 2017 2 Copyright(c) 2017 e-Seikatsu Co.,Ltd. All Rights Reserved.

  4. Slide 4: Highlights

    Highlights Sales and profit grew year on year. ➢ Consolidated sales: 1,986 million yen (FY2016 1,934 million yen, YOY change +52 million yen, +2.7%) ・Cloud Service revenue: 1,894 million yen (FY2016 1,829 million yen, YOY change +64 million yen, +3.5%) ・Including monthly recurring revenue of Turnkey

  5. Slide 5: Sales and Income Increased YOY

    Sales and Income Increased YOY FY2016 FY2017 Unit: Million yen ・ Sales rose around 52 million Sales Sales yen YOY to 1,986 million yen. 1,986 Operating income grew around 28 1,934 COGS million yen YOY to 153 million yen. 733 COGS 704 Gross Profit Gross Profit ・ COGS increased due to 1,252 SG&A 1,099

  6. Slide 6: "ES e-Bukken One" is Our Core Cloud Computing Service

    “ES e-Bukken One” is Our Core Cloud Computing Service ES e-Bukken One (Rental Property + Sales Property) ES e-Bukken One WebSite ES e-Bukken One Rental Property ES e-Bukken One Sales Property ES Sales Support ES-WebSite Breakdown of Cloud Computing Service (Turnkey services) Sales Ad Placement Funct

  7. 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) 900 One Rental Property (Leasing Management) 800 One Management One Sales 700 One Website 600 500 400 300 200 100 0 Apr. May Jun. Jul. Aug. Sep. Oct. Nov

  8. 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 Change in Revenue Breakdown (Cloud Solution Business) 2,050 +88（↑） △21（↓） Turnkey Turnkey services services (Monthly recurring (Up-front revenue) revenue) △3（↓） △1（↓） △4（↓） Non-Turnkey services

  9. Slide 9: Cloud Solution Business Revenues by Product

    Cloud Solution Business Revenues by Product Item (Million yen) FY2016 FY2017 YOY change YOY change (%) Cloud Service 1,829 1,894 64 3.5％ Turnkey services * 1,697 1,764 67 4.0％ Up-front revenue 71 50 △21 △29.4％ Monthly recurring revenue 1,625 1,713 88 5.4％ Non-turnkey services * 132 129 △3 △2.3％ Netw

  10. Slide 10: Sales of Cloud Service, Our Core Product, Have Continued Strong

    Sales of Cloud Service, Our Core Product, Have Continued Strong Transition of Sales by Item (Cloud Solution Business) Unit: Million yen Cloud Service Network Solution A-Cloud Service (Ad related services) A-Cloud Service (System Development) 600 501 494 505 496 482 492 490 500 461 475 473 457 10 16

  11. Slide 11: Initial Earnings Forecast vs Actual Consolidated Earnings

    Initial Earnings Forecast vs Actual Consolidated Earnings FY2017 FY2017 Initial Forecast Results (Announced on May 12, 2016) Achieved Unit: Million yen Sales 97.2 % Sales 2,044 1,986 Achieved Achieved Operating Recurring 84.1 84.4 % % Income Income Operating Recurring Achieved Income Income 182 181

  12. Slide 12: Breakdown of Initial Sales Forecast vs Actual Sales

    Breakdown of Initial Sales Forecast vs Actual Sales (Cloud Solutions Business) FY2017 Initial Forecast FY2017 Item (Million yen) Difference Achieved (Announced on May 12, Results 2016) Cloud Service 1,948 1,894 △54 97.2％ Turnkey services * 1,841 1,764 △77 95.8％ Up-front revenue 65 50 △14 78.1％ Month

  13. Slide 13: Number of Stores per Company is Expanding

    Number of Stores per Company (Clients Having Multiple Stores) is Expanding Transition of Number of Companies and Stores Using Our Services As of the end of Mar. 2017: 3,800 1,266 companies and 3,330 stores 3,600 # of stores per company: 2.63 3,400 Stores 3,263 3,280 3,283 3,315 3,336 3,330 3,205 3,2

  14. Slide 14: Support Quality Enhanced for 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) 2.00% 1.73% 1.50% 1.56% 1.33% 1.32% 1.33% 1.00% 1.10% 0.87% 0.86% 0.86% 0.79% 0.70% 0.62% 0.00% Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Fe

  15. Slide 15: 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. 2017 Unit: yen Monthly ARPU/company 135,000 approx. 122,800 yen/company Monthly ARPU/company 130,000 124,500 125,000 124,900 124,000 123,500123,600 124,100 125,000 122,200 122,800 124,800 121,800 119,000

  16. Slide 16: Operating Income Grew Steadily

    Operating Income Grew Steadily Transition of Operating Income (Consolidated) Unit: Million yen Operating Income Unit: % Gross Profit Margin 100 100.0 Operating Income Margin 90.0 80 69.2 80.0 65.5 63.2 64.8 64.8 62.7 63.0 64.6 63.9 63.8 64.9 70.0 61.9 62.2 62.8 62.3 61.2 60 60.0 48 53 44 50.0 40 39

  17. 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: Million yen (COGS) Asset transfer Unit: % 400 COGS rate 40% 350 38.1% 37.8% 37.7% 38.8% 35% 36.8% 37.3% 37.0% 36.1

  18. Slide 18: Stable EBITDA (Operating Income + Depreciation)

    Stable EBITDA (Operating Income + Depreciation) Transition of EBITDA (Consolidated) Unit: Million yen Unit: % 240 80.0 EBITDA EBITDA Margin 210 70.0 180 60.0 165 167 160 150 146 144 150 150 140 141 140 50.0 128 120 117 40.0 104 102 103 33.5 33.4 31.1 31.5 30.0 30.3 31.7 28.6 29.2 28.7 30.2 90 78 25.

  19. Slide 19: Operating Cash Flow Increased as a Result of Profit Growth

    Operating Cash Flow Increased as a Result of Profit Growth. Cash Flow Statement (Consolidated) FY2016 FY2017 Unit: Million yen Corporate （※） Other △3 Other 27 income tax, etc. Corporate △59 income tax, etc. Operating CF Decrease in △49 consumption tax payable, etc. △40 Investing CF Income Income Inv

  20. Slide 20: Financially Sound

    Financially Sound Consolidated Balance Sheet YOY Comparison As of the end of March, 2016 Unit: Million yen As of the end of March, 2017 Current ratio Current ratio 238.1％ 239.0％ Current Liabilities 338 Current Liabilities 296 Current Assets Current Assets Non-Current Liabilities 140 706 Non-Current

  21. Slide 21: Continuing Return to Shareholders Through Dividends

    Continuing Return to Shareholders Through Dividends, with FY2017 Dividend being 5 Yen per Share Per Share Information Total Payout Unit: yen Unit: Million yen 50 100.0% 250 45 Net income per share 90.0% 225 Net income Dividend per share 40 80.0% 200 Total dividend Payout ratio 35 70.0% 175 30 60.0%

  22. Slide 22: 2. Business Forecast

    2. Business Forecast 21 Copyright(c) 2017 e-Seikatsu Co.,Ltd. All Rights Reserved.

  23. Slide 23: Points of Earnings Forecast

    Points of Earnings Forecast Revenue, Cost, Profit, Dividend ➢ Sales are estimated to increase to 1,941 million yen, a decrease of 44 million yen from 1,986 million yen in the previous term. The sales of the turnkey services “ES e-Bukken One,” which the mainstay of our business, are forecasted to kee

  24. Slide 24: Sales and Profit Estimated to Decline, Dividend Remains 5 Yen/Share

    Although Sales and Profit are Estimated to Decline, the Dividend will Remain 5 Yen/Share. Mid-term Full-term Full-term YOY change (Million yen) Forecast Forecast Results Difference (%) FY2018 FY2018 FY2017 Sales 962 1,941 1,986 △44 △2.3％ Operating 12 66 153 △86 △56.4％ income Recurring 11 65 153 △87

  25. Slide 25: Sales Forecast: Turnkey Services Estimated to Keep Growing

    Sales Forecast: Sales of the Turnkey Services are Estimated to Keep Growing Steadily. Unit: Million yen Change in Revenue Forecast Breakdown (Cloud Solution Business) 2,100 +30（↑） △2（↓） Turnkey The cloud services for specific Turnkey services services △64（↓） clients are to be discontinued. (Monthly

  26. Slide 26: Cloud Solution Business Revenue Forecast Breakdown

    Cloud Solution Business Revenue Forecast Breakdown Item (Unit: million yen) FY2017 FY2018 YOY change YOY change (%) Cloud Service 1,894 1,856 △37 △2.0％ Turnkey services * 1,764 1,791 27 1.5％ Up-front revenue 50 47 △2 △5.9％ Monthly recurring revenue 1,713 1,743 30 1.8％ Non-turnkey services * 129 64 △

  27. Slide 27: Investments for Growth to be Kept Within Depreciation Levels

    Investments for Growth to be Kept Within Depreciation Levels Office equipment, etc. In-house software development leased asset HW/SW Depreciation Actual Actual Forecast Actual 500 465 470 458 441 441 8 428 429 450 408 30 10 400 22 91 51 105 350 300 250 470 441 441 429 200 365 344 366 328 150 100 50

  28. Slide 28: Through Continuous Building-up, Steady Increase of Revenue is Expected

    Through Continuous Building-up, Steady Increase of Revenue is Expected. Diagram of Revenue Structure of Turnkey Services (Cloud Service) FY2016 (actual ） FY2017 (actual ） FY2018 (forecast） FY2019 (plan） FY2020 (plan） Sales increase from Total sales 1,934 Total sales 1,986 Total sales 1,941 turnkey s

  29. Slide 29: 3. Business Overview

    3. Business Overview 28 Copyright(c) 2017 e-Seikatsu Co.,Ltd. All Rights Reserved.

  30. Slide 30: What is the "Explanation of Important Matters by IT"?

    It will Become Possible to “Explain Important Matters by IT” in Oct. 2017 (Scheduled). What is the “Explanation What are the advantages of of Important Matters by the “Explanation of Important IT”? Matters by IT”? The current Building Lots and Users can save time and cost Buildings Transaction Busin

  31. Slide 31: Release of Cloud Service for Online Meetings

    Release of the Cloud Service for Online Meetings for Explaining Important Matters by IT Note Then, I’ll explain important Yes, I can hear you. matters about the real estate. I’d appreciate your Can you hear me? cooperation today. Real estate firm (in Tokyo) Customer (living in Fukuoka) 1. Introducti

  32. Slide 32: Outline of Our Services

    Outline of Our Services Real estate database - Layout info More than 4,000 items - Addresses, latitude/longitude info - Equipment info can be stored. - Images ・ ・ Lease management business Contract database Renewal and cancellation of - Lease contracts lease contracts Business activities for real es

  33. Slide 33: Outlook for Future Service Developments

    Outlook for Future Service Developments 2017 2018 2019 2020 2021 Termination of Existing Services Sales/Support Shift to Mobile First of Solutions for Consumers Improvement of Service Development Cycles and Improvement of Response Capabilities to Market Needs by Dividing Applications Function Reinfo

  34. Slide 34: To Become the Best "Real Estate Tech" Company in Japan

    To Become the Best “Real Estate Tech” 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 enriching the systems for

  35. Slide 35: 4. Appendix

    4. Appendix Business Outline Financial Data 34 Copyright(c) 2017 e-Seikatsu Co.,Ltd. All Rights Reserved.

  36. Slide 36: Business Outline

    Business Outline 35 Copyright(c) 2017 e-Seikatsu Co.,Ltd. All Rights Reserved.

  37. Slide 37: The number of potential clients is enormous

    Focused on the Large Real Estate Industry Real estate industry 12.9% (60 trillion yen) - The real estate industry represents 12.9% of GDP (466 trillion yen Source： National Accounts for 2015 (GDP by economic activity) (nominal)) Residential Non-residential Land 1,145 trillion yen 368 trillion yen 17

  38. Slide 38: Large Demand for More User-Friendly Databases

    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 - The necessity of database that can manage the つなぐ、不動産クラウド。 information on property, customers, and c

  39. Slide 39: "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

  40. Slide 40: 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

  41. Slide 41: 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

  42. Slide 42: 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

  43. Slide 43: 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

  44. Slide 44: Company Profile

    Company Profile Established : January 21, 2000 Paid-in capital : 628 million 411 thousand 540 yen (As of the end of March 2017) Listing : Second Section of the Tokyo Stock Exchange (Code: 3796) The Bank of Tokyo-Mitsubishi UFJ, Ltd., Mizuho Bank, Ltd., Resona Bank, Ltd., Relationship Sumitomo Mitsui

  45. Slide 45: Financial Data

    Financial Data 44 Copyright(c) 2017 e-Seikatsu Co.,Ltd. All Rights Reserved.

  46. Slide 46: "ES e-Bukken One" License and User Numbers

    “ES e-Bukken One” License and User Numbers (Unit: Number of services with payment started, companies) 2015 2016 2017 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 237 241 251 253 267 273 285 3

  47. Slide 47: Consolidated Income Statement

    Consolidated Income Statement FY2015 FY2016 FY2017 (Million yen) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Sales 450 452 476 473 457 481 493 501 493 505 490 496 COGS 165 159 167 176 169 170 177 186 179 177 184 192 Gross Profit 284 292 308 296 288 311 315 315 314 327 305 303 Gross Profit Margin 63.2％ 64.8％

  48. Slide 48: Consolidated Balance Sheet

    Consolidated Balance Sheet FY2015 FY2016 FY2017 (Million yen) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Current Assets Total 526 578 613 660 567 607 627 706 677 744 744 808 Non-Current Assets 1,349 1,335 1,333 1,313 1,298 1,393 1,348 1,302 1,287 1,297 1,272 1,336 Total Assets Total 1,876 1,913 1,947 1,974

  49. Slide 49: Consolidated Cash Flow Statement

    Consolidated Cash Flow Statement FY2015 FY2016 FY2017 (Million yen) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q CF from 132 162 145 145 38 169 121 180 104 206 95 135 Operating Activities CF from △115 △88 △97 △103 △94 △109 △80 △86 △101 △115 △89 △82 Investing Activities CF from △28 △13 △10 △10 △32 △13 △17 △15

  50. Slide 50: Cloud Solution Business Revenues by Product

    Cloud Solution Business Revenues by Product FY2015 FY2016 FY2017 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Cloud Service 418 426 434 437 441 450 468 469 472 480 469 471 Turnkey services 376 384 393 396 407 417 434 437 440 448 436 439 Up-front revenue 9 14 18 15 18 17 22 13 13 15 11 10 Monthly recurring re

  51. Slide 51: Number of Employees

    Number of Employees Unit: Employees 200 WSDG Sales Corp. 146 148 150 140 137 138 138 136 131 134 13 13 13 127 15 15 15 15 13 13 Corp. 15 9.7% 100 73 76 70 66 67 72 70 68 67 67 WSDG 40.3% 50 Sales 50.0% 57 57 55 53 53 54 62 52 45 51 0 Mar. 2015 Jun. 2015 Sep. 2015 Dec. 2015 Mar. 2016 Jun. 2016 Sep. 2

  52. Slide 52: IT (Cloud) × Real Estate

    “ IT (Cloud) × Real Estate ” e-Seikatsu is a “Real estate tech” company that aims to realize a better real estate market by IT. 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

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