Sharingtechnology. Inc · TSE:3989
Sharingtechnology — FY2021 Earnings Presentation
31 slides from Sharingtechnology's earnings presentation, Nov 12, 2021
Slide 1: September 2021 Financial Results Briefing Document
September 2021 Financial Results Briefing Document (Disclosure on business plans and matters related to high growth potential) November 12, 2021 1
Slide 2: Topics
Topics ● FY2021 Actual : Sales revenue 3,531 mil.yen Operating loss 1,130 mil.yen (recognized 978 mil. yen of impairment loss, etc.) ● FY2022 Forecast : Sales revenue 3,800 - 4,000 mil.yen Operating profit 30 mil.yen ● Resolved to apply for new “Growth Market” classification in TSE ● Toward growth,
Slide 3: Table of contents
Table of contents 1. FY2021 Performance reporting 2. Forecast of FY2022 3. Strategy for further growth 4. Supplementary materials 3
Slide 4: FY2021 Performance reporting
FY2021 Performance reporting 4
Slide 5: Consolidated 4Q results (3 months)
Consolidated 4Q results (3 months) 4Q sales revenue were 1,034 mil.yen (96 mil.yen below previous 4Q). Operating profit ended in 19 mil.yen loss (before impairment loss), and 998 mil.yen loss (after impairment loss). Due to intensified competition, unit cost per online advertisement click inflated,
Slide 6: Sales revenue trend of "Household problems" business
Sales revenue trend of “Household problems” business 4Q Sales revenue were below previous 4Q (YoY 96%). QoQ (Quarter on the most recent Quarter) were 115%. Since sales revenue of the latest Oct. recorded YoY 115%, the Company expects return to the increase trend from FY2022. Sales revenue ［Unit：mil.
Slide 7: Fiscal Year ending Sep. 30, 2021 performance results
Fiscal Year ending Sep. 30, 2021 performance results While the downward revised forecast (Aug.13, ‘21) of sales revenue was 3,400 mil.yen, FY2021 sales revenue recorded 3,531 mil.yen (YoY 455 mil.yen decrease). Due to impairment loss of non-current assets, etc. (978 mil.yen), Operating profit ended
Slide 8: Contents of Impairment loss, loss on disposal, and Future impact
Contents of Impairment loss, loss on disposal, and Future impact Based on the recent trends in performance and other factors, for goodwill and intangible non-current assets (mainly Software), the Company recognized 978mil.yen of impairment loss and loss on disposal, after examining their future poss
Slide 9: KPI of "Household problems" business
KPI of “Household problems” business Due to intensified competition, sales revenue decreased, advertisement cost ratio to sales worsened, resulting in the decreasing operating profit. Meanwhile, other expenses except advertisement cost have been contained stably. So, we aim for business growth, focu
Slide 10: Forecast of FY2022
Forecast of FY2022 10
Slide 11: Forecast of Fiscal Year ending Sep. 30, 2022
Forecast of Fiscal Year ending Sep. 30, 2022 We forecast FY2022 sales revenue of 3,800-4,000 mil.yen for the fiscal year ending Sep.30, 2022. Operating profit is estimated 30 mil.yen, with decreasing variable cost by diminishing advertisement cost, and with decreasing depreciation cost by impairment
Slide 12: Analysis of Sales revenue
Analysis of Sales revenue The trend of “Number of inquiries” and “Unit price per inquiry” consisting of Sales revenue are as follows. “Number of inquiries” stagnates recently, while “Unit price per inquiry” maintains increase trend. For future, increase of “Number of inquiries” is key for sales grow
Slide 13: For Satisfaction of Customers and Partner Stores
For Satisfaction of Customers and Partner Stores Claim ratio from customers and partner stores are continuously low, with decreasing trend at certain level. For further customer satisfaction, we will continue to draw up on-site needs to reflect them on our business. To this end, we will improve our
Slide 14: Strategy for further growth
Strategy for further growth 14
Slide 15: Strategy for further growth
Strategy for further growth Due to intensified competition, unit cost per click inflated, and advertisement ratio to sales has rapidly worsening. To diminish advertisement ratio to sales, we will continuously implement SEO countermeasures for increase of “Number of inquiries” thru our portal site ”S
Slide 16: Growth brought by Organization specialized by genre
Growth brought by Organization specialized by genre Effective July, 2021, the Company organization was transformed from that by function into that by category putting together similar genres, aiming specialized service by genre, by investigating genres and partner stores deeply, and providing the be
Slide 17: Supplementary materials
Supplementary materials 17
Slide 18: Solving "Household problems"
Solving “Household problems” We have contracts with over 5,300 partner stores nationwide that can provide support for various “Household problems”. We accept customers who visit our website and introduce them to our partner stores. Over 150 genres From light work to renovations Accepted 24 hours a d
Slide 19: Type of our Websites
Type of our Websites We operate 2 types of websites relating to “Household problems” business. One is “Seikatsu 110”, a portal site that posts multiple genres onto a single site. Another is approx. 200 vertical media websites that specialize in specific genres. The portal site mainly receives inflow
Slide 20: Business Flow
Business Flow Customers with “Household problems” contact us through our website. Then, we match the most appropriate Partner store judging (1) Genre (2) Location (3) Preferred service date and time. We receive Commission either after service completion, or after introducing. ①Inquiry ②Matching ⑤Pay
Slide 21: Competitors and our Target Position
Competitors and our Target Position Competitors in “Household problems” business are mapped as follows in terms of the number of genres, platform, and service provider store. We assume there exists no portal platform such as restaurants search, beauty service. For this business opportunity, by expan
Slide 22: Profit Model
Profit Model Our value source (Value) is defined as our ability to attract customers, our matching system to solve customers’ problems, and excellent partner stores network. Each “Number of inquiries” and “Unit price per inquiry” is represented as numeric value. “Number of inquiries” is broken down
Slide 23: Profit structure image of "Household problems" business
Profit structure image of “Household problems” business In FY2021, variable cost (advertisement, Call center labor cost) were 58%, and fixed cost (labor, depreciation, commission, etc.) were 1,737 mil.yen (from FY2022, depreciation cost will decrease by approx. 200 mil.yen). From now on, we will dim
Slide 24: Monthly Sales revenue of "Household problems" business
Monthly Sales revenue of “Household problems” business “Household problems” business has seasonality. Summer with pest control and mowing/ gardening, and early autumn with typhoon damages on residential houses have tendency to increase our latter half sales revenue. Sales trend of “Household problem
Slide 25: Market of "Household problems" business
Market of “Household problems” business Domestic market of “Household problems” business is approx. 14 tri.yen, and of that, the market of low-price light work is estimated 5 tri.yen. With increase of the aged and people living alone, this market is expected to grow further. In addition, with an ong
Slide 26: Follow wind of Market opportunity
Follow wind of Market opportunity The increase of single and aged families, and spread of EC service will enlarge the market of our “Household problem” business. Number of Family by increase Share of aged over BtoC Service : EC Market size¹ of increase of living alone² 65 years old³ (Tril. Yen） (Tho
Slide 27: Recognized Risk and Countermeasures
Recognized Risk and Countermeasures Frequency/ Area Major Risk Contermeasure Time/Impact Due to delay of securing engineers, etc., Business Low/ failure to respond to change of market Always collect industry information, hire Environment: Mid.& Long-term/ environment may adversely effect on the engi
Slide 28: Fiscal Year ending September 30, 2021 balance sheet
Fiscal Year ending September 30, 2021 balance sheet ［million.yen］ Current year-end 2021 Previous year-end 2020 YoY change （As of Sep. 30,2021） （As of Sep. 30,2020） Current assets 2,236 2,964 (727) Fixed assets 843 2,812 (1,968) Total assets 3,080 5,776 (2,695) Current liabilities 2,073 2,128 (54) Fi
Slide 29: Fiscal Year ending September 30, 2021 P/L statement
Fiscal Year ending September 30, 2021 P/L statement ［million.yen］ Current year-end 2021 Previous year-end 2020 YoY change （As of Sep. 30,2021） （As of Sep. 30,2020） Sales revenue 3,531 3,987 (455) Cost of sales 85 30 +55 Gross profit 3,445 3,956 (510) SGA expense 3,712 3,581 +130 Operating profit (1,
Slide 30: Company profile
Company profile ● Company name SHARINGTECHNOLOGY INC. ● Head Office JP Tower Nagoya 19F, 1-1-1 Meieki, Nakamura-ku, Nagoya-shi, Aichi 450-6319 ● TEL／FAX TEL：+81-52-414-5919 ／ FAX：+81-52-526-2000 ● Executive officers Representative Director, CEO Nobuhiro Moriyoshi Director Eisaku Ueda Director Yoshit
Slide 31: Precautions relating to future forecasts
Precautions relating to future forecasts The disclosed documents include matters relating to the future outlook of forecasts, perspectives, goals and plans relating to SHARINGTECHNOLOGY Group, and have been generated on the basis of forecasts at the time of disclosure based on the information that c