3rd Quarter of Fiscal Year Ending March 31, 2021
Financial Results Briefing
February 10, 2021
geechs inc.
1st Section of TSE: 7060
Financial Results Briefing
Contents
1. Corporate Profile ɾɾɾɾɾɾɾ03
2. Our Main Businessɾɾɾɾɾ08
3. Financial Results ɾɾɾɾɾɾɾ15
4. Appendixɾɾɾɾɾɾɾɾɾɾɾɾɾɾɾɾɾɾ22
Financial Results Briefing
Corporate Profile
1
geechs Group
ʦ geekʷtechʧ
Having technical groups as partners who have outstanding and deep knowledge
In the IT and Internet fields.
Supporting the work styles of all those involved and providing various values through our technologies
Grand Vision
Our Grand Vision is lMake the biggest impression in the 21st centuryz.
Regardless of changes in the business environment, always lchallengez difficult issues and lenjoyz the process, link it to lgrowthz, and by repeating these processes, we will create a lot of limpressionsz to the world.
We will further accelerate the growth of our IT Freelance Matching Business, which is one of the Group`s strengths, and leverage our ability to respond to changes.
Through the creation and evolution our services, we will develop a portfolio management centered on the IT and Internet fields.
We are aiming to continuously increase our corporate value.
Group Corporate Profile
Company Name ɹɹgeechs inc. (1st Section of TSE: 7060) Representative ɹɹNaruhito Sonehara President
Date of Establishmenɹt ɹAugust 23, 2007
Head Office ɹɹG-SQUARE 10F, 2-11-1 Dogenzaka, Shibuya-ku, Tokyo Paid-in Capital ɹɹ1,089 million yen [as of December 31, 2020]
Directors and Audit Naruhito Sonehara , President & CEO
& Supervisory Board MembersDaisuke Sakuma , Director CFO Chihiro Narisue , Director
Toshiyuki Matsushima , Outside Director
Takeshi Hanai , Outside Director
Takashi Sasaki , Outside Audit & Supervisory Board Member
Nobuyuki Hata , Outside Audit & Supervisory Board Member
Daigo Hanaki , Outside Audit & Supervisory Board Member
Atsushi Sakurai , Executive Officer
Daisuke Takahara , Executive Officer Shogo Kawano , Executive Officer
Business Activities
IT Freelance Matching Business
IT Human Resource Development Business Game Business x-Tech Business
Scale of Sales
ɹɹ3,544 (Millions of yen) [Fiscal year ended March 31, 2020]Number of Employeeɹs ɹ368 (As of December 31, 2020)
Bases ɹɹTokyo Head Office, Shibuya Satellite Office,
Osaka Branch, Fukuoka Branch, ɹɹNagoya Satellite Office, Cebu, Philippines
Our Group Companies
IT Freelance Matching Business and x-Tech BusinessIT Human Resource Development Business
Game Business
geechs Group Advantage
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&OIBODJOH .BOBHFNFOU 4UBCJMJUZ BOE .BYJNJ[JOH#VTJOFTT 4ZOFSHJFT
IT Freelance Matching Business
Further growth as a pillar of revenue while leading the market as a mainstream business
Game Business
Stock-type products combine stability and growth potential
IT Human Resource Development Business
IT Human Resource Development and Offshore Development
x-Tech Business
Challenging new fields by leveraging (the most) advanced technology
New Business
Challenge to create new revenue sources through M&A and investment
Financial Results Briefing
Our Main Business
2
Business Model
Technology Resource Sharing Platform
Portfolio Information Website
Continuously owned 1,500 or more properties
IT Freelance Approximately
1,000
New Registrations
Per Year
Benefit Program For IT Freelance
Matching
Legal
Services Approximately
3,000
Companies
Back officeMentor
ROOT
In-house System
Platform
AdvisorService
Customer referrals
Business Partners
26
companies
Growing companies in IT field
Internet companies
˙ Ad Tech | ˙ Med Tech |
˙ Fin Tech | ˙ Real estate Tech |
˙ HR Tech | ˙ EC |
˙ Ed Tech | ˙ Game |
˙ Health Tech | ˙ Other SaaS |
IT companies |
˙ Various backbone systems ˙ In-house Business Systems
ʢExcerptʣ
Source of growth
• Net Sales: The difference between the total amount of orders received from customers and the total amount of orders placed with IT Freelancers (Net sales for accounting purposes).
•Gross Sales : The total amount outsourcing orders received from customers.
geechs Strength
Swift and optimal matching
˙ Speedy matching by making all processes online
˙ Taking into account preferences other than skills by utilizing big data
˙ Seamless matching linking Tokyo, Osaka, Fukuoka, and Nagoya
Supporting team structure of 3 supporters for 1 IT Freelancer
˙ Beneficial support as a project mentor
˙ Beneficial support from career advisors
˙ Engagement enhancement through lFrinovez services, etc.
˙ Regular events in line with IT Freelancers needs
˙ Efficient and effective web marketing using high-speed PDCA
˙ Perform Lead Naturing with Marketing Automation
˙ Enhanced content marketing that takes advantage of the voices of registered IT Freelance
˙ Referral system from registered IT Freelancers
Relationships with IT Freelance
Engagement enhancement by maintaining effective long-term contact with IT Freelancers
Increasing recognitionLead acquisitionRegistration interviewMatching
Business negotiationsContract
Start of operations
Marketing Automation
Lead generation
Customer Success
˙ɹWeb marketing ɹ(SEO, Listing, SNS, etc.)
˙ɹWeb UI/UX optimization ˙ɹReferral system of friends and ɹ acquaintances from registrants
˙ɹExclusive project mentors ˙ɹExclusive career advisors ˙ɹProvision of Benefits ˙ɹImplementation of various eventslFrinovez services
Differentiation from Similar Businesses
Developing a platform specializing in mid- to high-spec core IT Freelance
Engagement
By enhancing our engagement with IT Freelance, Strengthening Continuous Partnerships to Maximize Business
We provide
39 benefits for IT Freelance
to resolve the causes of uncertainty and can work with peace of mind for a long time.
˙ Filing Tax Returns Seminars
˙ Discounts on making business card
˙ Discounts on accounting software
˙ Support for various online learning services
˙ Preferred offering medical checkups
˙ Providing discounts for medical checkups
˙ Preferred offering for English Study Abroad
˙ Providing benefits for weddings and other life events
˙ Discounts on housing loan processing fees, etc.
Financial Results Briefing
Financial Results
3
Executive Summary FY3/21 3Q
IT Freelance Matching fully recovered from COVID-19 impact Operating income (cumulative 3rd Quarter) remained at a high level of 20%
Steady progress versus full-year forecast
16
Net Sales | Operating income | |
3rd Quarter Cumulative | ||
1,933 million yen | 388 million yen | |
(Full-year forecast progress) | ʢ 55.5% ʣ | |
3rd Quarter | ||
585 million yen | 115 million yen | |
ʢ YoY ʣ | ʢ -22.2% ʣ | ʢ -11.6% ʣ |
Financial Results Briefing 3rd Quarter of Fiscal Year Ending March 31, 2021 | © 2021 geechs inc. |
ʢ 56.0% ʣ
Gross Sales & Operating Profit
Forecasts for the current fiscal year are concentrated
in 4th Quarter, and sales and operating income both progressed
as planned in 3rd Quarter
(Million yen)
1,500
1,200
900
600
300
0
FY03/20
40.0%
30.0%
20.0%
10.0%
0
FY03/21
FY3/21 3Q Profit and Loss Statement Summary
Progress made as planned in all businesses
(Million yen) Net Sales IT Freelance Matching Business IT Human Resource Development Business Game Business x-Tech Business Operating income IT Freelance Matching Business IT Human Resource Development Business Game Business x-Tech Business Common expense | Results 3rd Quarter Cumulative 3rd Quarter | Full-year forecast Same period of the previous yearPlanned valueProgress Rate 3rd Quarter CumulativeYoYɹ ɹ3,450 ɹ56.0 % ɹ 2,730 ˛ 29.2 % 1,420 100 1,650 280 74.8 % 80.5 % 35.6 % 73.9 % 970 186 1,419 159 +9.4 % ˛ 56.7 % ˛ 58.6 % +30.1 % 700 55.5 % 545 ˛ 28.8 % 770 78.1 % 524 +14.7 % -20 280 -15.3 % 16 267 -˛ 83.9 % 0 -330 - - -17 -244 - - |
ɹ 1,933 585 | ||
1,061 359 | ||
80 22 | ||
587 127 | ||
207 76 | ||
388 115 | ||
601 201 | ||
-9 -5 | ||
42 5 | ||
-6 -6 | ||
-239 -78 | ||
Financial Results: IT Freelance Matching Business 3Q
Partly because of the shift of client companies to a remote work system,the number of deals closed in 3rd Quarter has significantly improved, setting a new high record for transaction value.
Gross Sales
2,205 Million yen
ʢ +3.5% ʣ
Net Sales
359 Million yen
Operating income
ʢ +4.6% ʣ
ʢ +3.4% ʣ
201 Million yen
Number of Ordersɹ
2,988
Person Month
ʢ +1.1% ʣ
Financial Results: Game Business
ɾEnded operation of one title during 3rd Quarter ɾStarted development of one Newly ordered title ɾAppropriate resource control was done according to the development line. ɾTwo titles scheduled for delivery in 4th Quarter of the current fiscal ɹyear are making steady progress in development.
(Million yen)
(Million yen)
1,100
1,000
900
800
700
600
500
400
300
200
100
0
Subscription SalesOne-time-fee Sales
Operating income
(People)
250
1Q
300
250
200
150
100
50
0
2Q
3Q
4Q
1Q
2Q
3Q
4QʢPlanʣ
200
150
100
50
0
1Q
Full-time employee
Business consignment, etc.
FY03/20
FY03/21
Subscription Sales: Contract Game Operation Sales and Revenue Share Sales
2Q
FY03/20
3Q
4Q
1Q
3 Titles | ||
Under developmentɹ | ||
5 Titles | ||
Number of Employees | ||
2Q | (End of 3rd Quarter) | 274 |
FY03/21 |
3Q
One-time-fee Sales: Contract Sales for New Game Development, Contract Sales for the Development of Additional Functions for Existing ɹɹɹɹɹɹɹɹɹɹ Game Operation, and Contract Sales for Other Development
3Q
Net Sales
127 Million yen
ʢ -54.0% ʣ
Operating incomeɹ5
Million yen
ʢ -24.5% ʣ
3rd Quarter Cumulative
ʢ YoY ʣ
Net Sales
587 Million yen
ʢ -58.6% ʣ
Operating income
42 Million yen
ʢ -83.9% ʣ
Operating Game Titles
(224 full-time employees, 50 outsourced)
Financial Results: Other
Topics
IT Human Resource Development Business
3Q
˙ Continued suspension of IT offline overseas study due to the impact of COVID-19
˙ Online IT Study Abroad is Strong (Over 200 students)
˙ Started collaboration with Zuitt Inc.
for employment guarantee type scholarship system
˙ Strong orders for offshore development projects (large-scale projects)
x-Tech Business
˙ Strong orders for AR-related development projects (Architectural AR, etc.)
˙ Increase in orders of D2C projects by sports manufacturers
˙ Pachinko and Slot machines maker`s Promotion Video production is also trending toward recovery
˙ Increase the number of participants in the lGridge Cupz amateur golf tournament (Total 1,300 participants)
IT Human Resource Business
ʢ YoY ʣ
Net Sales
22 Million yen
Operating income
ʢ -69.9% ʣ
-5 Million yen
3rd Quarter Cumulative
ʢ YoY ʣ
Net Sales
80 Million yen
Operating income
ʢ -56.7% ʣ
-9 Million yen
x-Tech Business
3Q
Net Sales
76 Million yen
Operating income
ʢ YoY ʣ
ʢ +32.5% ʣ
-6 Million yen
3rd Quarter Cumulative
ʢ YoY ʣ
Net Sales
207 Million yen
Operating income
ʢ +30.1% ʣ
6 Million yen
Financial Results Briefing
Appendix
4
Game Business
G2 Studios Inc.
For smartphone-oriented ease apps planning, development, and operations
1. Specialize in Partner Strategy
Through contract development and operations with our solid technological capabilities centered on Unity and PHP Stabilize earnings base, winning revenue share for strong-performing titles.
2. Sales Ranking Top 3rd Game Operation
Game for women developed in-house using the Rhythm Game Engine has a strong track record of operations.
3. Securing Development Lines through
Collaboration with the IT Human Resource Business
Through intra-group collaboration, while utilizing our own IT Freelance, We have flexibly created development lines for each project.
Asobi Creators.
G2 Studios Inc. one of the companies of the Group specializing in the Game Business, plans, develops, and operates native app games for smartphones based on Unity,in partnership with major licensors and game manufacturers.
IT Human Resource Development Business
NexSeed Inc.
Global IT Human Resource Development
Operation of Tech School
Offshore development/in-house development
1. IT Study Abroad to Realize Career Changes
For engineers by simultaneously learning both programming and English Supporting Career Changes. Developing IT Human Resources Able to Work Globally.
In addition to the Camp type program at Cebu Island, the company also offers online Courses.
2. Track record as training for companies and school
It boasts a track record of using it extensively, including training for new graduates and mid-career employees of companies and programming training for school corporations.
3. Offshore development in Cebu Island,
Philippines
We have established an offshore development structure, by utilizing the IT human resource network developed through our IT study abroad program and local Filipino engineers. Received development orders from Japanese companies.
Global IT Human Resource Development and Offshore Development
Through the provision of IT and English Study Abroad in each of the formats of online and offline programs, we operate Tech school with the aim of fostering human resources who can play an active role globally. We also conduct offshore development in Cebu Island utilizing IT human resources developed through IT Study Abroad and local engineers, supporting Japanese companies that are suffering from a lack of development resources.
x-Tech Business
1. Cultivating the Future with
New Technology lxRz
To the growing demand for xR, particularly in the sports field We use our development know-how to respond to these needs and support innovation in all industries.
2. Supporting Digital Marketing in the Sports Field
Promote golf x IT through our own golf media. Based on the accumulated data, strengthening the digital marketing and supporting D2C in the sports field.
3. Abundant Experience of production and management know-how
With a track record of more than 500 video productions, As well as AR apps, VR content, and 3D holograms.
In addition, our own golf media lGridgez has grown to over 750,000 monthly users and has one of the highest numbers of SNS followers in the industry.
Technology Partners for Business Model Transformation
We will leverage cutting-edge technologies and methods to become a technology partner for business model transformation using lTechnology ʷ Dataz and provide value by combining Our video production technologies utilizing xR our expertise in digital marketing and D2C support in the sports field.
Financial Highlights | ||||
Fiscal Year-End | FY3/18 | FY3/19 | FY3/20 | FYE March 2021 |
2,581,971 | 3,050,413 | 3,544,309 | 1,933,687 | |
379,270 | 532,117 | 675,446 | 366,067 | |
277,809 | 411,610 | 390,651 | 221,095 | |
278,707 | 410,322 | 391,102 | 221,952 | |
320,191 | 972,152 | 1,086,015 | 1,089,034 | |
1,044,139 | 2,737,377 | 3,356,232 | 3,584,188 | |
2,819,849 | 4,515,127 | 4,700,309 | 6,029,742 | |
33.47 | 47.96 | 37.78 | 21.18 | |
37.0 | 60.6 | 71.4 | 59.4 | |
31.6 | 21.8 | 12.8 | - | |
457,454 | 191,429 | 39,949 | - | |
˛ 31,118 | 124,085 | ˛ 77,131 | - | |
42,768 | 1,058,611 | ˛ 20,049 | - | |
1,244,697 | 2,615,535 | 2,559,268 | - | |
263 | 308 | 391 | 368 |
ʢ%ʣ
Net Sales
Ordinary income
Net income attributable to owners of parent
Comprehensive income
Paid-in Capital
Net assets
Total assets
Net income per share
Equity Ratio
Return on Equity
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Cash and cash equivalents at end of year
Number of Employees
(thousand yen)
(thousand yen)
(thousand yen)
(thousand yen)
(thousand yen)
(thousand yen)
(thousand yen)
ʢyenʣ
(thousand yen)
ʢ%ʣ
(thousand yen)
(thousand yen)
(thousand yen)
(people)
Notes regarding Forward-Looking Statements
The information contained in this presentation is based on a number of assumptions.These statements are not intended to assure or guarantee the achievement of future numerical targets or measures. Please note that actual results may differ due to various factors. We do not have obligation to update or revise the forward-looking statements in this report even if there are new information or events in the future.