Sharingtechnology. Inc · TSE:3989
Sharingtechnology — Q3 FY2024 Earnings Presentation
35 slides from Sharingtechnology's earnings presentation, Aug 13, 2024
Slide 1: FY2024 3Q Financial Results Briefing Document
FY2024 3Q Financial Results Briefing Document August 13, 2024 1
Slide 2: Topics
Topics Sales ● 3Q YTD Sales revenue : 5,268 mil.yen, YoY 123% revenue ● 3Q YTD progress in FY24 Sales revenue : 73.2% (FY23 : 68.9%) Operating ● 3Q YTD Operating profit : 1,213 mil.yen, YoY 148% profit ● 3Q YTD progress in FY24 Operating profit : 75.9% (FY23 : 66.2%) Own-service ● 3Q Non-consolidate
Slide 3: Table of contents
Table of contents 01 FY2024 3Q Performance reporting 02 Forecast of FY2024 & Growth Strategy 03 Supplementary materials 3
Slide 4: FY2024 3Q Performance reporting
FY2024 3Q Performance reporting 4
Slide 5: Consolidated 3Q YTD results (9 months)
Consolidated 3Q YTD results (9 months) 3Q YTD Sales revenue ended in YoY 123%, due to sales increase of main genres and expansion of Az support. Operating profit ended in YoY 148%, due to sales increase and continuous appropriate control of Advertisement cost ratio. Though YoY of Net income decrease
Slide 6: Consolidated 3Q results (3 months)
Consolidated 3Q results (3 months) 3Q Sales revenue ended in YoY 117%, due to sales increase of main genres and expansion of Az support. Operating profit ended in YoY 129%, due to sales increase and continuous appropriate control of Advertisement cost ratio. YoY of Net income decreased due to the ef
Slide 7: Progress toward FY2024 Forecast
Progress toward FY2024 Forecast 3Q YTD Sales revenue progress rate toward FY2024 was at 73.2%, exceeding that of previous 3Q YTD. Similarly, 3Q YTD Operating profit progress rate was at 75.9%, well above that of previous 3Q YTD. The progress of both of Sales revenue and Operating profit toward FY202
Slide 8: Analysis of YoY change of Operating profit of 3Q YTD
Analysis of YoY change of Operating profit of 3Q YTD Starting from 821 mil.yen of Operating profit of FY2023 3Q YTD, Sales revenue increased. Though COS and Advertisement cost increased along with Sales revenue increase, both cost ratios to Gross profit are maintained at the certain level. Consequen
Slide 9: Sales revenue trend of “Household problems” business
Sales revenue trend of “Household problems” business FY2024 3Q Sales revenue ended in YoY 117%, hitting a record high. Even excluding effect of Az support consolidated in FY2023 3Q, still now, stable growth is maintained (pro forma 3Q YoY was 114%). Sales revenue ［Unit：mil.yen］ FY2021 FY2022 FY2023
Slide 10: Transition of KPI of Business
Transition of KPI of Business Sales revenue increased continuously. COS ratio rose along with Our-own service (includ. Az support) and Business alliance. Advertisement cost ratio was kept around proper 46%. Ratios of Labor cost of Call center, Fixed cost were also kept stably. As a result, 3Q Operat
Slide 11: Transition of KPI of Sales revenue
Transition of KPI of Sales revenue “Number of inquiries” is gradually turning from levelling off trend to increasing trend since FY2023. “Unit price per inquiry” is on the rapid upward trend, thanks to optimized matching methodology and amazingly increased Our-own service (includ. Az support consoli
Slide 12: Transition of KPI of Profit Structure (Cost)
Transition of KPI of Profit Structure (Cost) Cost of Sales ratio Advertisement cost (PPC) ratio Cost (service, entrustment) ratio rising by increasing Improving from FY2021 in the rapid worsening Our-own service (includ. Az Support) and alliance with competition. Since FY2022, certain level kept. bu
Slide 13: For Satisfaction of Customers and Partner Stores
For Satisfaction of Customers and Partner Stores Claim ratios from customers and partner stores are continuously low, with stable trend at certain level. For further satisfaction, we will make the best effort to implement friendly platform both for customers and partner stores. Just after some incre
Slide 14: Transition of Az support Business Result
Transition of Az support Business Result Az support acquired in Apr. ‘23, turned to surplus by PMI, just after M&A. Since FY2024, Az support has been focusing on business expansion, and has entered into amazing business expansion phase, with 3Q Sales of YoY 183%. Along with such a prior investment (
Slide 15: Forecast of FY2024 & Growth Strategy
Forecast of FY2024 & Growth Strategy 15
Slide 16: Forecast of FY2024
Forecast of FY2024 The progress toward Forecast of FY2024 (Sales revenue of 7,200 mil.yen; Operating profit of 1,600 mil.yen; Net income of 1,300 mil.yen; Dividend per share of 15.00 yen) are pretty good. Hence, Forecast of FY2024 are not revised from the latest disclosure. FY2024 FY2023 Forecast Ac
Slide 17: Rationale of Forecast of FY2024
Rationale of Forecast of FY2024 For Forecast of FY2024, Sales revenue will be 7,200 mil.yen (YoY 116%). COS ratio will rise a little bit with increase of Our-own service (includ. Az support), etc. Meanwhile, ratios of Advertisement cost and Call Center labor cost, and amount of Other Fixed cost are
Slide 18: Our strength brought by improvement of Service Quality
Our strength brought by improvement of Service Quality Since FY2019, we have pursued Service Quality improvement, which started to bring apparent rise of profit from FY2022. SHARETECH will continue this policy, and aim business expansion. Improvement of Service Quality directly leads to rise of Clos
Slide 19: Rationale of M&A of Service provider
Rationale of M&A of Service provider SHARETECH carried out its first M&A of a Service provider in Apr. ‘23. Az support after M&A has consistently achieved good performance. With expanding Az support, SHARETECH will seek for M&A opportunity, examining closely. Quantitatively, Az support (59 mil.yen o
Slide 20: PMI of Az support
PMI of Az support Az support turned to surplus thanks to enhancement of business structure by PMI. Az support’s Operating profit ratio for consolidation (Operating profit divided by Sales for consolidation) was 27.1%, which means that Az support does not negatively affect Sharetech Group’s Operating
Slide 21: Supplementary materials
Supplementary materials 21
Slide 22: Contributing to a safe life by creating a new mechanism
MISSION Contributing to a safe life by creating a new mechanism We will provide peace of mind for customers with “Household problems” at the earliest possible moment. We hope that existence of our service will improve the sense of ease of customers with respect to future "Household problems". We hav
Slide 23: VALUE
VALUE Speed ✕ Flexibility Meet the needs of customers, service provider stores, associates, the times, at the earliest time possible. We will run to the clear and present goal at top speed. Besides that, we will keep running at real top speed by coping with changes of needs flexibly. Diversity ✕ Tog
Slide 24: Solving “Household problems”
Solving “Household problems” We have contracts with about 6,700 partner stores nationwide that can provide support for various “Household problems”. We accept customers who visit our website or call us, and introduce them to our partner stores. Over 150 genres From light work to renovations Accepted
Slide 25: 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 vertical media websites that specialize in specific genres. The portal site mainly receives inflow from organi
Slide 26: 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 27: 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 28: Monthly Sales revenue
Monthly Sales revenue “Household problems” business has seasonality (e.g. Summer with pest control and mowing/ gardening, early autumn of our 2nd half with typhoon damages on residential houses). Such a seasonality continues, and Sales revenue are expected to grow in the current fiscal year. 3Q-4Q 3
Slide 29: 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 30: 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 due to increase of living alone² 65 years old³ (Tril. Yen）
Slide 31: SHARETECH’S ESG/SDGs
SHARETECH’S ESG/SDGs As a member of society, we, a business entity, recognize the importance ESG(Environment, Society, Governance) and SDGs(Sustainable Development Goal), along with improvement of Corporate Value. We will manage our Company to fulfill social responsibility and contribute to sustaina
Slide 32: FY2024 3Q Balance sheet
FY2024 3Q Balance sheet ［million.yen］ FY2024 3Q FY2023 Change from （As of Jun. 30,2024） （As of Sep. 30,2023） Previous year-end Current assets 4,408 2,842 +1,566 Fixed assets 1,132 1,283 (150) Total assets 5,541 4,126 +1,415 Current liabilities 1,746 1,443 +302 Fixed liabilities 373 493 (119) Total e
Slide 33: FY2024 3Q YTD P/L statement
FY2024 3Q YTD P/L statement ［million.yen］ FY2024 3Q YTD FY2023 3Q YTD （From Oct. 1, 2023 （From Oct. 1, 2022 YoY change to Jun. 30,2024） to Jun. 30,2023） Sales revenue 5,268 4,294 ＋974 Cost of sales 448 252 ＋196 Gross profit 4,819 4,042 ＋777 SGA expense 3,668 3,218 ＋450 Operating profit 1,213 821 ＋39
Slide 34: 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 TEL：+81-52-414-5919 ● Executive officers Representative Director, CEO Nobuhiro Moriyoshi Director, COO Yoshitaka Katayama Director Eisaku Ueda Director
Slide 35: 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