Slide 1: FY3/2024 Results
FY3/2024 RESULTS Bengo4.com,Inc. May. 10, 2024
Slide 2: Contents
Contents 01 FY3/2024 Results（P3-P8） 02 FY3/2025（P9-P13） 03 Progress of Legal Brain growth strategies（P14-P20） 04 Bengo Kakumei Joins the Group（P21-P31） 05 M&A Strategy（P32-P34） 06 Business Overview （P35-P51） 07 Appendix （P52-P86） 1
Slide 3: Vision and Mission
VISION・MISSION VISION Drive a paradigm shift for the better world. Be the Professional-Tech Company. MISSION Do what only professionals can do. Contribute to society using expert knowledge and technologies. 2
Slide 4: FY3/2024 Results
FY3/2024 Results 3
Slide 5: Topics for FY3/2024
Topics for FY3/2024 Net sales increased 30.0% YoY. Operating profit rose 13.4% YoY. Net Sales 11,323 Mil. JPY 30.0 % YoY EBITDA 1,887 Mil. JPY 36.9 % YoY Operating Profit 1,236 Mil. JPY 13.4 % YoY Ordinary Profit 1,315 Mil. JPY 19.2 % YoY Profit 837 Mil. JPY 16.8 % YoY *EBITDA = Operating Profit + D
Slide 6: Quarterly trend in Net Sales
Quarterly trend in Net Sales In the fourth quarter, quarterly net sales of the support service for lawyers surpassed 1 billion yen. CloudSign recorded record quarter-on-quarter revenue growth with steady performance in new companies and contracts sent. 3,302 Business Lawyers Library and （2,916） adve
Slide 7: Quarterly trend in ARR
Quarterly trend in ARR Company-wide ARR was 10.66 billion yen, up 39.8% YoY. ARR CloudSign's ARR increased steadily, surpassing the 6 billion yen mark. 39.8% 10.66 CloudSign 28.2% Bil. JPY Support service for lawyers60.0% （Bil.Yen） 10.02 10.0 CloudSign Support service for lawyers, etc. 8.09 7.62 7.6
Slide 8: Quarterly trend in SGA
Quarterly trend in SGA Advertising expenses increased in Q4 due to expenses incurred to attract visitors and pay for venues in connection with the CloudSign conference. Other expenses temporarily increased due to M&A-related expenses, etc. （Mil.Yen） 2,400 2,213 Other Expenses （2,026） Rent 2,050 Amor
Slide 9: Quarterly trend in Operating Profits
Quarterly trend in Operating Profits Operating profit and EBITDA for Q4 stood at 348 million yen and 582 million yen respectively. （Mil.Yen） 400 395 35.0% 379 Opera ti ng Profits Opera ti ng Profit Rai to 348 337 322 28.0% 306 303 Quarters during which we ran large-scale TV commercials and newspaper
Slide 10: FY3/2025
FY3/2025 9
Slide 11: Trend in Net Sales and Plan for FY3/2025
Trend in Net Sales and Plan for FY3/2025 Net sales (Target) in FY3/2025 Launch the Legal Brain 14.74 business this fiscal year to 14.74 create a third business AI pillar. Bil. JPY CloudSign's KPIs such as number of requests for information, number of YoY +30.2% business meetings, and MRR will reach
Slide 12: Trend in Operating Profit and Plan for FY3/2025
Trend in Operating Profit and Plan for FY3/2025 1.7 Operating profit (Target) in FY3/2025 Record profit of billion yen, up +37.5% YoY CloudSign business returned to profitability Take profits to a higher level Maintained financial discipline and （Mil.Yen） continued to invest aggressively 1,700 1,700
Slide 13: Trend in EBITDA and Plan for FY3/2025
Trend in EBITDA and Plan for FY3/2025 2.5 EBITDA for the current period (Target) Record profit of billion yen, up +32.5% YoY （Mil.Yen） 2,500 2,600 40.0% EBITDA EBITDA Margin 28.7% 27.3% 1,887 24.6% 25.0% 19.3% 1,356 1,378 1,300 12.5% 19.7% 16.7% 17.0% 15.8% 6.3% 10.0% 569 604 Goodwill amortization a
Slide 14: Policy for Each Business in FY3/2025
Policy for Each Business in FY3/2025 1. Strengthen acquisition of major companies as clients We will strengthen our position as the No. 1 player in the industry by attaining clients, particularly large companies. 2. Provision of the Contract Lifecycle Management Service Launch of an AI-driven contra
Slide 15: Progress of Legal Brain growth strategies
Progress of Legal Brain growth strategies 14
Slide 16: Legal Brain Development Strategy
Legal Brain Development Strategy NEW ! Database Joined the Group Lawyer in October 2023 of legal database precedents Judge Secret database Leagal Legal DB Public consultation Prosecutor Q&A database Legal profession Contract book database database Strengthen development M&A also utilized capabilitie
Slide 17: What we hope to accomplish through Legal Brain
What we hope to accomplish through Legal Brain Focus Practical services area for lawyers LAWYER Focus Professional services area for companies ENTERPRISE LEGAL BRAIN Free consultation available to anyone, GENERAL 24 hours a day, 7 days a week Empowering Japanese society through legal services as "Ja
Slide 18: Product Roadmap
Product Roadmap Considering Prioritizing added value monetization September 2023 December 2023 September 2024 onward First product Second product Bengoshi.com LIBRARY Bengoshi.com LIBRARY BUSINESS LAWYERS Third product LIBRARY AI Assistant (α-version) AI Assistant (β-version) AI Assistant (β-version
Slide 19: Anderson Mori & Tomotsune basic agreement to collaborate
Anderson Mori & Tomotsune reach a basic agreement to collaborate in the provision of advisory services l We have begun collaboration on advisory business aimed at the social implementation of the Legal Brain business using generative AI. l We will work to develop products that reflect needs from the
Slide 20: Cross-research using legal precedents and commentaries
With Hanreihisho having joined the Group, development of cross-research using legal precedents and case commentaries is underway Question display Automatic generation of supplementary answer by AI Show cited precedents, books, and statutes Additional questions can be asked Screenshots are from a pro
Slide 21: Sales and Marketing Strategy
Sales and Marketing Strategy Full use of existing user assets with high affinity 27,000 lawyers 2.5million LAWYER ENTERPRISE 100,000 companies people 20
Slide 22: Bengo Kakumei Inc. Joins the Group
Bengo Kakumei Inc. Joins the Group （May 1, 2024） 21
Slide 23: Bengo Kakumei Inc. Joins Group
Bengo Kakumei Inc. Joins Group Offers Digital document Organization Tool for Lawyers 22
Slide 24: Bengo Kakumei Inc. company profile
Bengo Kakumei Inc. Offering “BengoKakumei”, digital document organization tool for lawyers developed by a lawyer Company Profile Change in Number of Users ü Since the launch of the product in 2021, the number of users has increased rapidly, with favorable industry word-of-mouth. ü With the introduct
Slide 25: Impact on Financial Results
Impact on Financial Results Performance is expanding in anticipation of the introduction of IT for court proceedings in 2026 Business Performance Business Forecasts • From April 2024, Bengo Kakumei's performance will be added to our financial results • Annual sales for the current fiscal year are FY
Slide 26: Key points of Bengo Kakumei Joining the Group
Key points of Bengo Kakumei Joining the Group POINT In 2026, IT-enabled judicial processes will be fully introduced. 01 It will be a catalyst for the legal industry and will accelerate the digital transformation in the practice of law. POINT Sales collaboration in products for lawyers 02 Offering ov
Slide 27: IT-enabled civil procedure as a catalyst
01_What is IT-enabled civil procedure, which is seen as a catalyst in the legal industry? With IT-enabled civil procedure to be fully introduced in 2026, judicial processes involving written documents and face-to-face trials will be replaced by online processes, web conferences, etc. The digitalizat
Slide 28: Digitalized case record managed using BengoKakumei
01_What is the digitalized case record to be managed using BengoKakumei? High-performance Neither paper files nor PDF folders digital document are sufficient for lawyer work organization tool solves Written PDF/File folder documents/Filing management Strong support for the advantages of Digital adva
Slide 29: BengoKakumei user feedback
01_BengoKakumei has received overwhelming support from users I was able to write a document in half the time With ”BengoKakumei," we were able to achieve it had taken me so far. digital centralization for the first time, which was " BengoKakumei " is by far the best way to get impossible with cloud
Slide 30: IT-enabled judicial procedures accelerate spread of BengoKakumei
01_ IT-enabled judicial procedures accelerates the spread of the BengoKakumei IT-enabled judicial procedures require that documents be converted to data and submitted electronically *Written motions submitted to courts will be stored in an electronic data format, in principle, and court decisions an
Slide 31: Strengthening collaborations in sales activities targeting lawyers
02_Strengthening collaborations in sales activities targeting lawyers No.1 in marketing support services Marketing domain Document Research management NEW！ No.1 in legal precedent domain domain search services LAWYER No.1 in digital document organization tools Fast growing electronic book services R
Slide 32: Pursuing effects of data network among the products
03_ Pursuing effects of data network among the products Document Organization and Utilization Legal Brain (BengoKakumei) Legal books research (Library) Electronic Registered lawyers contracts (CloudSign) Legal of the Company precedent 27,000 database (Hanrei Hisho) Contract creation and review (Clou
Slide 33: M&A Strategy
FY3/ 2025 © Bengo4.com, Inc. 2024 32 M&A Strategy
Slide 34: M&A Strategy
M&A Strategy Our M&A strategy is carry out acquisitions to (1) obtain legal brain data and (2) increase peripheral products that will make up Legal as a Service. For LIC CO., Ltd, which was acquired in October 2023, we will (1) acquire data on legal precedents, and (2) provide legal precedent search
Slide 35: Track record of M&A activities and alliances
Track record of M&A activities and capital and business alliances We have continued to enhance legal knowledge to build Legal Brain and pursued investment opportunities from the perspective of the multi-layering of SaaS in relation to CloudSign. Month/Year Scheme Company name/Business Purpose FRAIM
Slide 36: Business Overview
Business Overview 35
Slide 37: CloudSign
CLOUDSIGN 36
Slide 38: Trend in Net Sales
Trend in Net Sales Q4 net sales reached 1.61 billion yen, up 28.0% YoY, marking the highest QoQ net sales increase in the company's history. CloudSign's ARR is 6.21 billion yen, compared to 1.36 billion yen* for GMO Sign, a difference of approximately 5 times Sales Trend in net sales Mil.Yen 1,600 1
Slide 39: Trend in the number of contracts
Trend in the number of contracts （The number of contracts sent bearing an electronic signature and a timestamp） The number of contracts sent increased steadily, surpassing 2.34 million in the quarter. The increase in the number of contracts from Q3 to Q4 hit a record high. Trend in the Number of Con
Slide 40: CloudSign introduction in different industries
CloudSign introduction in different industries The introduction of CloudSign continued to accelerate, especially among large companies and local governments. Banks, securities, insurance and other financials IT services, information, telecommunications, human resources and media Construction / Real
Slide 41: Status of Introduction by Local Governments
Status of Introduction by Local Governments Of 238 local governments that have introduced electronic contracts, 157 local governments (approx. 70%) * have introduced CloudSign. We have expanded the number of municipalities introducing the system while maintaining market share. Prefectures Local gove
Slide 42: CloudSign Growth Strategies
CloudSign Growth Strategies The conclusion of electronic contracts in Japan is a growing market with a TAM estimated at 500 billion yen*. To expand the customer base and increase ARPPU, the following strategies will be pursued. 1. Strengthening the acquisition of large companies as customers We will
Slide 43: Bengoshi.com
BENGOSHI.COM Bengoshi means lawyer 42
Slide 44: Trend in the number of visitors
Trend in the number of visitors Monthly site visits reach record level of traffic due to a popular article on Bengoshi.com news. The number of monthly site visitors via Google Search remained on a recovery trend. Trend in the number of visitors (monthly) (10,000 visitors) 1,800 16 million visitors 9
Slide 45: The number of paid users (Individual)
The number of paid users（Individual） The number of paid individual users turned toward recovery, due to improved inflow from searches. What paid users can see Trend in the number of paid users （users） 200,000 188,533188,533 187,785187,785 184,404 186,390 185,573 186,390 182,569182,569 181,188 183,63
Slide 46: Trend in the Number of Registered Lawyers
Trend in the Number of Registered Lawyers The number of registered lawyers reached 27,782,accounting for a 61% share of lawyers in Japan. The number of paid registered lawyers was 14,034, reflecting efforts at cross-selling of "Bengoshi.com Library" and other services to Hanreihisho users. Trend in
Slide 47: Zeirishi.com
ZEIRISHI.COM Zeirishi means tax accountant 46
Slide 48: Zeirishi.com
Zeirishi.com Japan’s largest tax consultation portal site which has 1,337k visitors/month. 1. Tax Accountant introduction service Provide introduction service by experienced tax coordinators. They choose the best one for client from among 6,505 registered tax accountants. 2. Tax consultation service
Slide 49: Trend in net sales
Trend in net sales Aggressive marketing investments, such as web advertising, are increasing our positioning in the industry by the day. Sales grew significantly, increasing 39.0% YoY. Trend in net sales YoY 39.0% Mil.Yen 312 300 293 253 233 224 210 174 182 173 153 154 150 129 138 135 138 137 126 11
Slide 50: Business Lawyers
BUSINESS LAWYERS 49
Slide 51: Business Lawyers
Business Lawyers Japan’s largest Corporate legal portal site which has 520k visitors/month. 1. Registered lawyers The lawyer who works in Nishimura & Asahi, Mori Hamada & Matsumoto, Nagashima Ohno & Tsunematsu, Anderson Mori & Tomotsune, TMI etc. 2. “Business Lawyers Library” Browse practical books
Slide 52: Business Lawyers Library also grows steadily
Business Lawyers Library also grows steadily The number of Business Lawyers users steadily increases. The number of companies using "Business Lawyers Library”, a service that provides access to legal books and magazines, exceeds 1,500. Trend in the users （monthly) Number of companies that have intro
Slide 53: Appendix
APPE NDIX © Bengo4.com, Inc. 2024 52 Appendix
Slide 54: Summary for FY3/2024
Summary for FY3/2024 Net sales increased 30.0% YoY. Operating profit rose 13.4% YoY. (Mil. Yen) FY3/2024 FY3/2024 Actual FY3/2023 vs. FY3/2023 Announced Actual /Forecast Actual results Forecast Net Sales 11,323 11,400 -0.7% 8,710 +30.0% CoGS 2,331 - -% 1,419 +64.2% Gross Profit 8,992 - -% 7,290 +23.
Slide 55: Balance sheet
Balance sheet Net assets increased 990 million yen due to higher retained earnings. Equity ratio of 40.3% due to M&A activities and other factors. (Mil. Yen) FY3/2024 FY3/2023 YoY Current Assets 5,654 3,232 +2,422 Cash and equivalents 3,469 1,646 +1,822 Fixed Assets 4,509 1,177 +3,331 Total Assets 1
Slide 56: Corporate Profile
Corporate Profile Name Bengo4.com, Inc. Place 4-1-4 Roppongi, Minato-ku, Tokyo Date of 4th Jul., 2005 establishment Representative Taichiro Motoe Director Consolidated: 519, Employees Non-consolidated: 494 (As of March 31, 2023) Group LIC CO., Ltd and EOC.com Co., Ltd. companies 55
Slide 57: Vision and Mission
VISION・MISSION VISION Drive a paradigm shift for the better world. Be the Professional-Tech Company. MISSION Do what only professionals can do. Contribute to society using expert knowledge and technologies. 56
Slide 58: ESG policy
ESG policy We will work to build a sustainable society, where everyone has unrestricted access to the wisdom of professionals, by operating our business with an awareness of ESG. Environment l Promote paperless operations with the non- use of personal seals. l Promote remote work to reduce energy co
Slide 59: Board Members
Board Members Representative Director, President and CEO Director Taichiro Motoe Masaoki Sawada Joined Anderson Mori & Tomotsune Foreign Law Joint Enterprise Joined SBI Securities Co., Ltd. Engaged in corporate sales, targeting listed and subsequently founded Authense Law Office. and unlisted compan
Slide 60: Company history
会社沿革 AI business Bengo Kakumei Inc., a Provider of Digital Case 2024 Recordkeeping Tools for Lawyers, Joined the Group Announced Legal Brain Initiative Released Bengoshi.com AI chat legal consultation Released CloudSign Review 2023 Released Bengoshi.com LIBRARY AI Assistant LIC CO., Ltd, a Prvider o
Slide 61: Bengoshi.com
BENGOSHI.COM Bengoshi means lawyer 60
Slide 62: Social background of legal consulting services in Japan
Social background of legal consulting services in Japan 16.16 Million people had troubles / disputes over legal matters in a year. Only 20.6% of these people sought Lawyer’s advices. Reasons why they hesitated to ask professional’s help were: Concerns over professional fees 38.9%;／It’s a too minor p
Slide 63: Background of lawyer's business in Japan
Background of lawyer’s business in Japan Environments of lawyer’s business has been changing rapidly since the judicial system reform in 2000, such as lifting of ban on advertisements, liberalization of fees, and new bar examination, which was meant to increase number of lawyers in Japan. Number of
Slide 64: Market Environment of the Legal Services Industry in Japan
Market Environment of the Legal Services Industry in Japan The legal services industry has been growing since 2000 due to progress in the development of new customers, as marketing needs for lawyers grow together with the increase in the actual number of lawyers. Legal services market size 25.6 mill
Slide 65: Value proposition of Bengoshi.com
Value proposition of Bengoshi.com An web-based platform for consumers and lawyers, to realize “familiar legal service”. Provides information and services about free legal consulting and detailed information about lawyers for consumers. Consumers Lawyers Hesitate to seek Want to reach out to Support
Slide 66: Why Bengoshi.com?
Why Bengoshi.com? The largest free legal consultation portal in Japan which has 16.01M visitors/month.* 1. Because the lawyer offers user legal advice for free on the internet service • The outstanding database which has over 1,343k records of consulting cases* 2. Because it has a substantial databa
Slide 67: Services of Bengoshi.com provides
Services of Bengoshi.com provides Provides each kind of contents according to seriousness of issues users have. Targets Contents provided Benefit for users Consumers who have urgent Users can search for the most appropriate “List of lawyers” matters and are willing to seek lawyer for free thanks to
Slide 68: Marketing support service for lawyers
Overview of “marketing support service for lawyers” A marketing support service for lawyers, which helps them acquire clients • The number of visitors to the site has exceeded 10 million. • Acquiring potential clients efficiently based on the focus area of each lawyer Price 20,000 yen or more per mo
Slide 69: Research support service for lawyers
Overview of “research support service for lawyers” Making lawyer book research more comfortable. • Monthly subscription service for law books • "Book browsing" "research service" functions can be used while working from home Price 9,000yen per month Number of books Over 2,100 books Participating pub
Slide 70: Business support service for lawyers
Overview of “Business support service for lawyers” All case can be planed. • Visualize case status and support planned progress • Supporting the digital shift of legal services in anticipation of the adoption of IT in trials Video about the service https://youtu.be/O0mDUdE5SMY 69
Slide 71: Paid services for individual
Overview of “paid services for individual” Paying users can read all answers posted by lawyers about topics on the consulting board for 300 yen per month (excluding tax). What paid users can see Trend of the number of paid users users 200,000 100,000 Answers by lawyers are available only for paid us
Slide 72: Growth Cycle of Bengoshi.com
Growth Cycle of — Bengoshi.com Increased DB draws more visitors, which stimulates new registration of lawyers who seek to reach out expanded number of users. Lawyer’s action Databases grow Advice for consumers Counselling Register to the website Lawyer list Lawyers Consumers Consumer’s action Visit
Slide 73: CloudSign
CLOUDSIGN 72
Slide 74: Overview of CloudSign
Overview of CloudSign Cloud-based e-contracting service from contract conclusion to contract management. Upload a completed contract that has been negotiated and approved by the other party, and the contract is concluded. The recipient of the document does not need to be registered with CloudSign. U
Slide 75: Usage Image
Usage Image Sender Upload PDF documents Enter Destination Document preparation Send Receiver Sender Receiver Receive by mail Contract confirmation Final step after conclusion of agreement and agreement The signed documents will be automatically e-mailed to the sender and receiver. (It is automatical
Slide 76: Documents used for CloudSign (examples)
Documents used for CloudSign (examples) Human Resources Sales Leases Employment contract Sales Contract Building Lease Agreement Working conditions notice Land purchase agreement Land Lease Agreement Offer of employment Building Sales Contract Parking Lot Rental Agreement Employment agreement Real e
Slide 77: Benefits of CloudSign
Benefits of CloudSign Speed up process Reduce cost Strengthening of compliance With CloudSign, contract signing Shipping cost, paper cost,printer No more losing/missing paper or process will be shorten by 1-2 ink cost, and stamp tax will no altering of contract. weeks, which boosts up upside of long
Slide 78: Price of CloudSign
Price of CloudSign Free Light Corporate Enterprise Fixed fee 0 JPY/Month Fixed fee 10,000 JPY/Month Fixed fee 28,000 JPY/Month Fixed fee To be inquired Pay- per-use 0 JPY/Month Pay- per-use 200 JPY/Sending Pay- per-use 200 JPY/Sending Pay- per-use 200 JPY/Sending Plan contents Plan contents Plan con
Slide 79: Why CloudSign?
Why CloudSign? 1. Cloud contracting service offered by Bengoshi.com • Our Company, which has a deep understanding and knowledge of Japanese law, provides legally reliable products under the supervision of a lawyer. 2. Product development in line with Japanese business practices • In order to expand
Slide 80: CloudSign services
CloudSign services Conclusion of Automatic a contract conversion to data AI Contract CloudSign scan Management It facilitates contract management operations with AI, It handles the process from scanning contract which automatically identifies the counterparty to documents to storing documents and th
Slide 81: Business Lawyers
BUSINESS LAWYERS 80
Slide 82: Business Lawyers Library fee structure
Business Lawyers Library fee structure Business Lawyers Library, an all-you-can-read book service for corporate legal affairs. Light plan Standard plan Enterprise plan The plan enables an individual to conduct A standard plan that includes education he plan includes compliance training minimum resea
Slide 83: Status of introduction of Business Lawyers Library
Status of introduction of "BUSINESS LAWYERS LIBRARY" From the website of "BUSINESS LAWYERS LIBRARY” The service is used by mainly leading law offices and large companies. https://www.businesslawyers.jp/lib/about 82
Slide 84: Advertisement on the websites
Advertisement on the websites Advertising sales on the "Bengoshi.com" and "Zeirishi.com" websites, as well as advertising sales associated with the Business Lawyers conference. Website Conference Advetisements 83
Slide 85: Risk Information
© Bengo4.com, Inc. 2024 84
Slide 86: Risk Information 1
Risk Information1_ Risks identified that could have a significant impact on future growth Degree of Item Major Risks Possibility/Timing Influence Countermeasure Although our business areas are Media business and IT/Solutions business, Low/ Responding to changes in the Business Environment if the Int
Slide 87: Risk Information 2
Risk Information 2_ Risks identified as having the potential to materially impact future growth Degree of Item Major Risks Possibility/Timing Influence Countermeasure We will use a variety of recruiting As we expand our business in the future, we will need to continually recruit and train Low/ metho
Slide 88: Warning
WARNING This document is meant for explaining the company’s business itself and doesn’t mean any inducement or persuasion for buying stocks or/and bonds of the company. This document include descriptions about prospects for future which are based on information available as of today, and actual situ