Financial Results for the 1st Quarter of Fiscal Year Ending March 31, 2021

Earlier from Lancers

Lancers, Inc.TSE: 4484

Aug 21, 2020 at 8:50 AM UTC · Issued by Lancers, Inc.

Financial Results

for the 1st Quarter of Fiscal Year Ending March 31, 2021

LANCERS, INC.

(TSE Mothers：4484)

August 13, 2020

Agenda

Company profile / Market trends

Results for the 1st quarter of fiscal year ending March 2021

Impact from COVID-19 pandemic

Forecast and strategies

for the year ending March 2021


© LANCERS, Inc. All Rights Reserved	1

Vision / Company profile

Our Mission

Empowerment of Individuals

Our Vision

We will create a world where anyone can live their own workstyle, with the power of technology

	Company	LANCERS, INC.
	name

	Business	Platform business
Company	contents

Founder and
Profile	Yosuke Akiyoshi
	CEO

	Establishment	April, 2008
	Staff	Approx. 200 employees*
*) Employees include full-time employees (excluding those who are seconded to outside the Group, but including those seconded to the company within the Group) and
temporary workers(part-time workers)	© LANCERS, Inc. All Rights Reserved	2

Our Business

Providing matching services for freelancers since 2008. Contactless operations from ordering to managing projects and payments.

Clients

(Employers)

Benefits

Being able to secure the necessary resources whenever needed
Order can be placed for relatively low fees and shorter time

Freelancers

(Contractors)

Benefits

Being able to

choose projects that fit their skills
work whenever & wherever they want
Increase income


© LANCERS, Inc. All Rights Reserved	3

Business Models / Features

Online staffing*(OS), which offers jobs to specific individuals

is our main business model,

OS accounts for 90% of total GMV**.

Business

Model

Online Staffing (OS)

Select					Select a
Review	Start
specific			specific
		work
personnel				freelancer


or skills and					or skills and

request a					request a
job					job


		Freelancers
Clients or our company
	(Specified)

Crowd Sourcing(CS)

	Select	Output		Job
Job
one of	proposals		posting
posting
the

proposals


		Freelancers
Clients
	(Anonymous)

Typical case

Unit price

GMV %

Development, designs, office work			Tasks, data entry
High unit price	Approx. x4	Low unit price

90%			10%

*)Online staffing (OS) is an abbreviation for online staffing platform, and will be referred to as online staffing or OS.	4
**)Gross Merchandise Value.	© LANCERS, Inc. All Rights Reserved

Lancers' Strengths

A "reliable platform" where jobs with high added-value are offered.

Clients

Increase in

unit price per

company

Improved

continuation

rate

Creating jobs with high added-value and

higher unit price (OS related)

Technology to	The matching
visualize	algorithm to
"reliability"	utilize
A platform to	"reliability"
secure
"reliability"

The structure to

increase and retain

"reliable" lancers

Freelancers

Opportunities for high value- added jobs


Increase in
Increase in
reliable		income
freelancers		per person

Providing high-quality output due to the

increase in reliable freelancers


© LANCERS, Inc. All Rights Reserved	5

Expansion of Markets

Expansion of "remote work x external human resources"

Areas and Occupations

Trend Expansion of freelance market

Increase in freelance population and ratio to the working population*

	Approx.＋13％

		10.34	million

9.13 million

14%	15%

20152020

Recent change	New ways of work

Approx. 70% of workers wish to continue to work remotely

even after the stat of emergency is lifted.**

Wish to

continue

70%

Wish to continue	Somewhat wish to continue
Wish to work in the office	Unknown

Prediction

Changes in the use of "remote x external human resources" by companies

The range of use of "remote x external human resources" was limited to 1-2 job types for a

company, however the use of multiple job types will expand.

System development Video creation

Consulting

Accounting

Human resource

*) Quoted from the "Freelance Survey 2020 Edition" conducted by our group in February 2020.

**)Quoted from "Study of Working from Home Due to COVID-19, 2020" by Security Protection Network Co., Ltd.6

Differences from Other Human Resource Services

Highly convenient in terms of human resource expertise,

completion online, and quick resource acquisition.

Expertise in HR

Providing highly

specialized personnel

Expertise: High

Completion online

Providing a workflow

that is completed online

Overwhelming speed

Providing resources

immediately when needed

High company: single a on Dependability

Temp staff

/ Crowd contractors sourcing

Temporary

staffing

Expertise: Low

aonDependability	Job request to a freelancer

Implementation
	Escrow
	(payment in advance)

single	of the project

Lowcompany:
Inspection of the project

Evaluation

Start募of集 application開始

ー1w

ー2w

ー

ー1M

ー

ー2M

ー

ー3M


		Temp	Employee
		staff
		1			2
Matching
	weeks			weeks
		-
		6
from					to3

1					months
to day
week a

					7

Agenda

Company profile / Market trends

Results for the 1st quarter of fiscal year ending March 2021

Impact from COVID-19 pandemic

Forecast and strategies

for the year ending March 2021


© LANCERS, Inc. All Rights Reserved	8

Summary for Q1 of FY2020 Ending March 2021

GMV increased by 16.0% year-on-year, Net sales grew by 29.6%, Gross profit grew by 13.4%, which are steadily growing even in COVID-19 pandemic.
Given the disclosed effects of COVID-19 pandemic, the 1Q earnings forecast progressed as planned, reaching 104.5% for net sales and 107.1% for gross profit.
In light of the COVID-19 pandemic, SG&A expenses have been reduced by 16 million JPY from the forecast, resulting in a reduction in operating loss of 43 million JPY.
As a result, we have made profits in June. Furthermore, in the 1st quarter, net income was reached profitable because of tax adjustment.


© LANCERS, Inc. All Rights Reserved	9

What creates our value and KPI

Emphasizing expansion of GMV and Gross profit

representing our added value

Gross profit*

GMV**

Take Rate

Maintain the status quo

KPI

Number of

Client Unit

Clients

Price

Number of

Reliable Lancers Driving Competitiveness

in the market

*)Since the sales recording standard differs for each service, "gross profit" is used as a management index.
**)Gross Merchandise Value	© LANCERS, Inc. All Rights Reserved	10

Financial Results in Q1 of FY2020 （Quarter)

① Marked steady growth through COVID-19 pandemic, resulting beyond forecast.

②2

SG&A expenses reduced by 16 million JPY as a result of improving productivity and reduced

３

costs.

③ Marked profitable due to tax adjustment.

Q1 FY2020

Q1 FY2019*

1Q FY2020(Forecast）

（year on year）

※Disclosed on May 14

（Unit: Million JPY）

Actual

% Change

Forecast

％Result

Gross Merchandise

１

2,063

1,778

+16.0％

2,016

102.3％

Value

Net sales

867

669

+29.6%

830

104.5％

Gross profit

428

377

+13.4%

400

107.1％２

Selling, general and

444

647

△31.4%

460

96.6％

administrative expenses

(SG&A)

Operating loss

△16

△270

ー

△60

ー

Ordinary loss

△11

△267

ー

△60

ー

３

Net income/loss

△269

ー

△70

ー

*) It is based on in-house management data and the figures are not audited.	11
© LANCERS, Inc. All Rights Reserved

Monthly Trends for the 1st Quarter of FY2020

The top line grew steadily in June, achieving profitability as a result of

improving productivity and reducing costs.

Gross profit*		SG&A expenses*		Operating income*
(Unit: Million JPY)		(Unit: Million JPY)	(Unit: Million JPY)

		153		-8	-9
144	146	146	144
137

							2020/4	2020/5	2020/6
2020/4	2020/5	2020/6		2020/4	2020/5	2020/6

*)It is based on in-house management data and the figures are not audited.	12
© LANCERS, Inc. All Rights Reserved

Trend of Gross Merchandise Value (Consolidated)

GMV increased by 16% year-on-year despite COVID-19 pandemic.

(Unit: Million JPY)					+16%

	Gross Merchandise Value					2,120	2,201
				2,015	2,063





		1,566	1,663	1,760	1,778

1,464						2,150

△87million JPY

due to COVID-19*

1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q
	2019/3				2020/3			2021/3

*) It refers to the impact that COVID-19 pandemic imposed on the initial plan in our forecast for the year ending March 2021 before the pandemic.	13
© LANCERS, Inc. All Rights Reserved

Trend of Net sales (Consolidated)

Net sales increased by 30% year-on-year.

(Unit: Million JPY)				+30%

Net sales						1,031


				878	895	867

		616	740			913
575	589		669

△46million JPY

due to COVID-19*

1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q
	2019/3				2020/3			2021/3

*) It refers to the impact that COVID-19 pandemic imposed on the initial plan in our forecast for the year ending March 2021 before the pandemic.	14
© LANCERS, Inc. All Rights Reserved

Trend of Gross profit (Consolidated)

Gross profit increased by 13% year-on-year.

(Unit: Million JPY)			+13%

		Gross profit				463	497



					455	428
				414

	362
356	352	377	458

△29million JPY

due to COVID-19*

1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q
	2019/3				2020/3			2021/3

*) It refers to the impact that COVID-19 pandemic imposed on the initial plan in our forecast for the year ending March 2021 before the pandemic.	15
© LANCERS, Inc. All Rights Reserved

Trend of SG&A Expenses (Consolidated)

SG&A expenses in previous years remained constant despite the

increase in GMV.

(Unit: Million JPY)

Others

Commission fees, and Communication expenses Advertising expenses

Subcontract expenses

Personnel expenses

647

103

634

161

451

406	414	416
	114	115	150

400	419

	122

444

109

117
49	47	52	49
54	61	55	64
33	49	56	54
151	141	135	132

324	120
	47	48
	58
	49
	36
36	26

138	156	154

168

76 43

174 182

1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q
	2019/3					2020/3		2021/3


© LANCERS, Inc. All Rights Reserved	16

Increase in the Number and Unit Price of Clients

The unit price has been growing steadily over the last 12 months

and has been increasing in 1Q.

The number of clients*		Client unit price*
(Unit: Thousand clients)		(Unit: Thousand JPY)

This year

（Reference）

Increasing

steadily

194

240

250

165

167

141

150

2016/3

2017/3

2018/3

2019/3

2020/3

2020/4

2019/７

2016/3

2017/3

2018/3

2019/3

2020/3

2020/4

2019/7

~2020/6 ～2020/6

~2020/6 ~2020/6

1Q in progress Last 12 m

*) It does not include businesses in other areas such as "Lancers AREA PARTNER" and "Shareful".


© LANCERS, Inc. All Rights Reserved	17

Balance Sheet

1.94 billion JPY, which is the sum of net cash* and overdraft**, is higher than the average SG&A expenses for 1 year***,

therefore the financial base is solid.

(Unit: Million JPY)

Cash and deposits

2,021

• Customer deposits

Current liabilities 632

1,206

Non-current liabilities 4

	Other current assets
	523
• Goodwill 258
Non-current assets
	381

Net assets

1,715

• Equity Ratio 58.6％

Total assets 2,926

Total liabilities/net assets 2,926

*)Net Cash: 1,389 million JPY = Cash and deposits 2,021 million JPY - debt 0 million JPY - customer deposits 632 million JPY
**)It indicates the uncommitted overdraft. As of the end of July 2020, 560 million JPY has not been spent for overdraft.
***)Average of SG&A expenses indicates full-year SG&A expenses excluding past investments and general administrative expenses.	18
© LANCERS, Inc. All Rights Reserved

Agenda

Company profile / Market trends

Results for the 1st quarter of fiscal year ending March 2021

Impact from COVID-19 pandemic

Forecast and strategies

for the year ending March 2021


© LANCERS, Inc. All Rights Reserved	19

Activities through COVID-19 Pandemic

Supporting freelancers

Introducing a function to issue certificates of cancellation that indicate necessary information when applying for leave allowance

[Important]

Information regarding application of subsidies for freelancers due to COVID- 19 pandemic

(For freelancers / clients)

Supporting other industries

Accepting employees from

ASOVIEW Inc. for sharing network

Supporting smaller businesses

Launching a business continuity support program with partners

Activities in our company

Achieving a remote work rate of 97.5%* by planning and executing

5 principles of smart management and "remote work way"

Supporting clients

Lancers Enterprise Services has

been certified as a tool for IT

Development Grant 2020

Further activities in our company

Managing employees' conditions through company-wide events online and regular surveys

*)It includes members working from home and co-creating with our company as freelancers.	20
© LANCERS, Inc. All Rights Reserved

Impact on Performance from COVID-19 Pandemic

Despite the downside of the reduction of economic activities of clients,

positive results were shown for short-med term.

Upside

		Increase in
Short
	the number of users
term
	from introduction
		of remote work


		Market development
Medium		from penetration of
	smart management
term

	Creation of new

		needs

The number of user registrations is growing

Promoting awareness through webinars and alliance with other companies

Offering clients' new needs

Impact on

overall

performance

				Inefficient sales		No impact by

	Short			activities due to		switching to online
Down			contactless		sales
		marketing activities
side	term
		Decrease in orders			Decrease in DTP

			from existing			designs due to
				clients in specific			reduction of corporate
				industries			activities

*) It indicates when the impact on business performance is 0.


© LANCERS, Inc. All Rights Reserved	21

Short-Term Impact (Downside/Upside)

During COVID-19 pandemic, growing areas (video production and system development) and shrinking areas (DTP designs) coexist.

However, it is recovering after June.

Year-on-year changes in GMV of video production and DTP designs

Video production has grown rapidly

due to COVID-19 pandemic

(EC demand and promotion of DX)

158% 147%

107%

113%

203%

157% 145% 168%

100%	91%	94%	101%

DTP is most affected by shrinking

economic activities in specific industries

(food/travel etc.)


2020/1	2020/2	2020/3	2020/4	2020/5	2020/6
			DTP designs		Video production

*)It is based on in-house management data and the figures are not audited.	22
© LANCERS, Inc. All Rights Reserved

Short-Term Impact (Upside)

40% increase in the number of newly registered clients

in the last 2 months, which is the highest figure ever. New needs due to

the pandemic has a positive impact on future distributions.

Changes in the number of newly registered clients

											Highest
								Approx.＋40％	ever
2019/9	2019/10	2019/11	2019/12	2020/1	2020/2	2020/3	2020/4	2020/5	2020/6	2020/7

*) It is based on in-house management data and the figures are not audited.	23
© LANCERS, Inc. All Rights Reserved

Agenda

Company profile / Market trends

Results for the 1st quarter of fiscal year ending March 2021

Impact from COVID-19 pandemic

Forecast and strategies

for the year ending March 2021


© LANCERS, Inc. All Rights Reserved	24

Forecast for FY2020

Disclose full-year forecast in a range considering the uncertainty of COVID-19 pandemic.
- Up：Things will turn back to normal in 2Q and clients' demand will continue to grow such as increase in the number of registrations.
- Low：Reduction in orders will continue until 3Q. However, further economic deterioration due to another state of emergency is not expected.
GMV is expected to grow+11.5%-20.2% year-on-year, net sales +13.7%-23.8%, and gross profit +5.9%-17.0%
According to the plan (upper limit), growth will accelerate in the 4Q by 30% or more year-on-year, aiming for growth above the initial plan*
Regarding costs, sales, marketing and development will be invested within the range or profitability, and upper and lower limits to be profitable for the full year.

*) It shows our forecast for the fiscal year ending March 2021 before the spread of COVID-19.	25
© LANCERS, Inc. All Rights Reserved

Full-Year Forecast Quarterly Trends (Prediction)

Below the initial plan* due to COVID-19 pandemic.

However, accelerated growth by 30% or more is expected in 4Q, aiming

for further growth beyond the initial plan (upper limit).

Positive impact

Aiming for upside

In 3-4Q

Below initial plan

in 1-2Q

Initial plan

	1Q		２Q		３Q		４Q
Negative impact		Plan(Upper limit)		Plan(Lower limit)		Initial plan*

*) It shows our forecast for the fiscal year ending March 2021 before the spread of COVID-19.


© LANCERS, Inc. All Rights Reserved	26

Forecast for FY2020

①1 Set a plan in a range because of the uncertainty of COVID-19 pandemic

①2 Invest in sales & marketing and development within the range that can be profitable for the full year.

			FY2020		FY2019
				(year on year)
（Unit: Million JPY）

		Prediction				Initial	% change	Performance	% change
		1		plan*	(vs prediction)

Gross Merchandise		9,050～9,750		9,485	△4.6～	8,114	11.5～


Value					+2.8％	20.2％

Net sales		3,950～4,300				4,194	△5.8～	3,474	13.7～
				+2.5％	23.8％

Gross profit		1,900～2,100				2,017	△5.8～	1,794	5.9～
	2		+4.1％	17.0％

Selling, general and		1,890～2,050		2,010	△6.0～	2,102	△10.1～

administrative expenses					+2.0％	△2.4％
(SG&A)
Operating profit/loss		10～50				7	ー	△307	－

Ordinary profit/loss		10～50				9	ー	△328	－

Net income/loss	0～40				△27	ー	△353	－

*) It shows our forecast for the fiscal year ending March 2021 before the spread of COVID-19.	27
**)The total amount of distribution is a pro forma amount.	© LANCERS, Inc. All Rights Reserved

Investment and Operating costs

Operating costs associated with sales for the current term is 1.8 billion

JPY, which is a profitable structure of several hundred million JPY excluding investment to accelerate further growth for the next term.

Details of SG&A expenses (million JPY)

760

1,900
160
～

		210
2,100

240

470

50~

210

Operating cost：

• Costs associated with sales for the current period

Strategic investment：

50 million to 210 million JPY

• Invest in sales & marketing

• Invest in product development

10～50


© LANCERS, Inc. All Rights Reserved	28

Strategy for FY2020

Strengthen sales to large companies and improve client unit price

Previous policies

This year's policies

Increase the

number of clients

Improve clients'

unit price

＋

• Expansion of Lancers'	•
brand recognition
	Renew

• Strengthen targeted	•
marketing and sales	Continue

Create awareness leading to "smart management" and alliance with other companies as a service concept

Continue to strengthen sales - Focus on acquiring large

companies by Enterprise service

- Strengthen account sales to existing companies

Create further

profit

• ー	• Develop new services to
	meet the needs of clients as
New	the market constantly
	changes


© LANCERS, Inc. All Rights Reserved	29

Topic 1

Offering services quickly to meet companies' new needs through

COVID-19 pandemic.

Lancers Assistant Telephone

Substitution Plan

Launched in May 2020
Resolves problems of telephone transfer in an office environment
Introduced to approx. 50 companies in 3 months

Online BPO

Launched in June 2020
Full online decentralized BPO services
Strengthens security and provides a safe working environment


© LANCERS, Inc. All Rights Reserved	30

Topic 2

Concluded a capital and business alliance with REASE Inc..

Improving creditworthiness of freelancers and

infrastructure development.

Past partnership

Collaboration in

providing credit and

rent guarantee

services for freelancers

in December 2019.

Background

The importance of

supporting individuals

is expected to grow

through the pandemic.

Promoting alliances

including investment in various companies to execute our missions.

Details

Business activities to utilize REASE Inc.'s credit algorithm, knowhow in the real estate industry, network and our freelance talent platform.


© LANCERS, Inc. All Rights Reserved	31

Mid to Long-Term Strategy

With OS services as our major strength, we aim to innovate

new ways for work in Japan by promoting new businesses and M&A.

Our vision of a long-term business growth

Strengthening the monetization base

Entering into peripheral businesses

centered on the scoring

Expanding market domain

Connecting to other job areas by expanding

our business to large companies and

making our databases open

Development in OS including

"Lancers Enterprise"

Shifting the price of our services from low to

high and maximizing client LTV

Growth in CS

Continuous improvement and stable growth

in crowdsourcing services

2019/3

202x/3


© LANCERS, Inc. All Rights Reserved	32

Mission

Empowerment of

Individuals

Lancers empowers individuals by maximizing the possibilities of the internet to help provide ease, freedom, personality and smiles people.

We contribute to make a better society through providing values and growth opportunities, and by revolutionizing the work-style and lifestyle of individuals.


© LANCERS, Inc. All Rights Reserved	33

APPENDIX


© LANCERS, Inc. All Rights Reserved	34

Lancers' services/additional info Management team

Lancers' strengths


© LANCERS, Inc. All Rights Reserved	35

We offer more than 270 kinds of services

Handling various work from system development to back office

Expanding

System Development

Web Designs

System

Web development/

Creating homepage

Programming

¥50,000-400,000

Development

¥3,500-

/1-10 pages*

/Web

¥7,000/h*

Making CMS/

iPhone/iPad app

Designs

¥300,000-

Introducing WordPress

¥2,000,000*

¥50,000- ¥200,000/-

10pages*


	Writing


	Article writing for blogs	Writing
	¥ 0.5- ¥5/letter*

	DM/mail magazines
¥20,000-
¥40,000*


	Other Designs	Image/Videos/Narrations


	Creating logos			Video production
	¥20,000-			¥50,000-
Creative	¥85,000/ design*			¥500,000/per project*

	Creating business
		Image editing/assets
	cards		¥100-
	¥10,000-
			¥5,000/ piece*
	¥50,000*

Expanding

Consulting

Administration

Business consulting

Creating PowerPoint

¥150,000-

¥30,000-

Back Office

¥300,000*

¥100,000（10 slides）*

Web/IT consulting

Excel designs

¥100,000-

¥20,000-

¥200,000*

¥30,000*

*)The requested price is the price offered for a basic project and refer to the website below for requested prices in detail.

https://www.lancers.jp/help/beginner/lancer/examples

Tasks

Data entry/create lists

¥1,000- ¥10,000

/100 tasks*

Monitoring

questionnaires

¥10- ¥3,000

/questionnaire*

Translation

English translation

¥5.0- ¥8.0

（per word） *

Chinese translation

¥2.0- ¥6.0

（per word） *

Tasks

Accounting Method for Each Service

We offer multiple services with different sales accounting standards

Main

Services

①１ Direct order

2 Through a third party		3 Using both services

Accounting		Sales


standards		Gross
		profit

Handling fees associated with the client's requested amount ≒

Various costs deducted from handling fees

Client's request amount ≒ Fees +Lancer's reward

≠

Lancer's reward and various costs deducted from the client's request amount

Monthly system usage fees and handling fees associated with client's request amount

≠

Various costs deducted from system usage fees and handling fees

Service models


© LANCERS, Inc. All Rights Reserved	37

（Reference）Trends in Advertising Expenses （Consolidated）

Advertising expenses have been spent efficiently, keeping the ratio of advertising expenses to sales 6%.

				Clients'			Acquisition
				recognition			of clients
(Unit: Million JPY)
	Advertising expenses			48%
	Ratio to advertising

	expenses*
				324
							16%
9%	10%	9%	9%			7%	168	6%
	6%

	61		64
54	55		49	58		51
1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q
		2019/3				2020/3		2021/3

*) Proportion of advertising expenses in Net sales.	© LANCERS, Inc. All Rights Reserved	38

（Reference）Trends in Gross Profit and

Operating Profit (Consolidated)

Invested within the full-year profitability range this term.

Increase overall cost efficiency and generate profits throughout the year.

Investment phase (mainly in new business)

(Unit: Million JPY)


		Gross profit	414

		Operating profit

356	362	352

-49-52-63 -37

1Q 2Q 3Q 4Q

2019/3

	Profit-making phase
455	463	497
	428

377

				Investment
	55		about
	44	¥200million
			Profitable without		-16

			Large investment
		Investment	-136

		about
		¥270million
-270		2Q	3Q	4Q	1Q

1Q
			2020/3			2021/3


© LANCERS, Inc. All Rights Reserved	39

Lancers' services/additional info Management team

Lancers' strengths


© LANCERS, Inc. All Rights Reserved	40

Company Overview

A strong management team of specialists from each field with

in-house training

Yosuke Akiyoshi CEO
•	Launched an internet-based venture business in
	university.

• In charge of planning/development at NIFTY Corporation.

• Established "Lancers" that offers matching services for individuals and companies.

Nobuhiro Nakajima

Executive Officer, CPO

• Involved in software architecture at FUJI SOFT INCORPORATED.

• After engaging in the startup of a major company for web services, research/development, and PF development as a freelancer, Nakajima changed to CTO for a startup and launched global services.

• Joined Lancers in February 2017. Currently in charge of product development as Executive Officer and CPO.

Katsuhide Kotani

Executive Officer, Business Development

• In charge of corporate sales and sales planning at Pasona Inc.

• Engaged in business planning and business development at Rakuten, Inc.

• Engaged in new business development and alliance strategy at en-Japan inc.

• Joined Lancers in April 2019. Responsible for enterprise business and sales & marketing.

Shio Konuma

Executive Officer, CFO

Engaged in investment banking business at Nikko Citigroup Limited.
Engaged in IPO, capital policy/financial strategy planning, and M&A global development at Recruit Co.,Ltd.
Joined Lancers in November 2017. In charge if corporate department.

Hideaki Sone

Director and Executive Officer

Worked as a strategy consultant at McKinsey & Company.
Engaged in sales/business strategy, promotion of overseas DC business M&A/PMI, group-wide business strategy and business planning at Rakuten, Inc.
Joined Lancers in February 2015. In charge of management strategy, new business promotion, M&A, etc.

Ryoichi Ueno

Executive Officer, Online Matching Business

Joined Lancers as a new graduate. Engaged in product planning/development and launching new businesses as an engineer.
Became the youngest Executive Officer in May 2020 (has been with Lancers for 7 years)

Masatsuna Ishiyama

Executive Officer, Solution Business

• Led freelancing engineering fields at Web Do Japan
Co., Ltd. (currently known as CROOZ,Inc.), Vein Carry
Japan Inc. (currently known as geechs inc.), BonB
Co., Ltd. (foundation), and A-STAR Co., Ltd.
(foundation).
• Joined Lancers in June 2017. In charge of overall
solution businesses.
Yoshie Miyazawa
Executive Officer, Human Resource
• Engaged in corporate sales at Culture Convenience
Club Co., Ltd.
• Dealt with new business and business planning at
mixi,.
• Joined Lancers in September 2014. After engaging in
business planning, marketing and platform business
(currently online matching business), Miyazawa
currently leads human resource department.	41

Lancers' services/additional info Management team

Lancers' strengths


© LANCERS, Inc. All Rights Reserved	42

Competitive Advantages

1	2
Technology to visualize	The matching algorithm
"reliability"	to utilize "reliability"

A platform to secure "reliability"

The structure to increase and

retain "reliable" lancers


© LANCERS, Inc. All Rights Reserved	43

②1 Technology to visualize "reliability"

We recommend a real-name system to enhance reliability

Acknowledged Lancer

Koichi Otsuka Other web-related work / Private

I can provide services regarding SEO customer consulting /

marketing / SEO writer / Web production technology.

Desirable

3,239

4.9

15,000 / h

mance

ews

Unit Price

Perfor

projects

Revi

Completion

rate

Confidentiality

Telephone

verification

Acknowledged categories: SEO/SEM strategies Website operation/protection/HP updates Icon/button designing Writing articles/blogs/experiences Creating web contents Display all

Industries I have worked in: Medical/medicine Real-estate/housing

IT/communication/internet Marketing/event/promotion Animals/pets

About myself

[Received Lancer of the Year 2018 & 2019] [Featured in the Nikkei] Started freelancing in earnest in Jan 2017.

I was first in overall ranking in Sep 2017.

I am still first in SEO/SEM customer division, but these achievements are not only my own performance, but also my loyal clients who continue to come back for me.

Acknowledged Lancer

Takeshi Ueshima Desktop application engineer / Private

Ask me anything regarding EXCELVBA/ACCESS or
			development for macro.
	557
Perfor
		Completion
		98%
mance
	projects			rate

Acknowledged categories: Web system development/programming Creating EXCEL Macro/developing VBA Monitoring/questionnaires/enquiries Collecting data/typing/creating lists Establishing servers/network Display all

Industries I have worked in: Stores (restaurants/bars etc.) Medical/medicine

IT/communication/internet Consulting/thinktank University/school

About myself

I have been No.1 in EXCEL/VBA development division in Lancers' ranking for 12 consecutive months, and have come third in system development/operation division in Dec 2019.

I have also been nominated for the "Lancer of the Year 2019".

I offer inexpensive and high-quality systems.

Please ask me anything for Macro development using EXCEL/ACCESS.


© LANCERS, Inc. All Rights Reserved	44

①2 The matching algorithm to utilize "reliability"

Prioritize and display reliable lancers, and match them up with clients

Match lancers with clients with high affinity

Register reliable data	Request projects at appropriate prices
Real names		Best prices
ID photos		Fair prices

Skills		Difference from
	Market price

Achievements


© LANCERS, Inc. All Rights Reserved	45

3 The structure to increase and retain

"reliable" lancers

Creating an environment where they can focus on their work

Client

JobMainFocusing only on the primary job

Job			Freelance Basics
			Empowered by Lancers
Management	Growth	Benefit Programs	Administration
Community	Medical	Medical	Bill	Tax
	/ Education	checkup	insurance	/Contract	return

(Conventional

environment) Covering all;

from main job to management job.


© LANCERS, Inc. All Rights Reserved	46

Matching Clients in Tokyo with Local Freelancers

Freelancers in different regions receive orders from clients in Tokyo

Local freelancers

Approx. 75%**

Clients in Tokyo

Approx. 60%*

*) Percentage of total distribution
**) Percentage of total distribution of freelancers located outside of Tokyo (April-June 2020)	47
© LANCERS, Inc. All Rights Reserved

Lancer of the Year Held in March 2020

6th "Lancer of the Year" to celebrate freelancers. Switched to be held online due to COVID-19 pandemic.


© LANCERS, Inc. All Rights Reserved	48

Disclaimer

Handling of this material

This information contained herein is based on current economic, regulatory, market trends and other conditions. The Company makes no representation or guarantee with respect to the credibility, accuracy, appropriateness or completeness of the information herein. The information contained herein may change without prior notice. Furthermore, the information on future business results are forward-looking statements. Forward-looking statements include but not limited to expressions such as "believe", "expect", "plan", "strategic", "expect", "anticipate", "predict" and "possibility", as well as other similar expressions to explain future business activities, achievements, events and future conditions. Forward- looking statements are predictions about the future that reflect management's judgment based on currently available information. As such, these forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those expressed in or suggested by the forward-looking statements. Therefore, you may not rely entirely on forward-looking statements. The Company does not assume any obligation to change or correct any forward-looking statements in light of new information, future events or other findings. In giving this material, the Company does not undertake any obligation to provide the recipient with access to any additional information or to update this material or any additional information or to correct any inaccuracies in any such information which may become apparent. Information on companies other than the Company and information provided from third parties are based on public information or sources. The Company has not independently verified the accuracy and appropriateness of such data and indicators used herein, nor assume any responsibility for the credibility, accuracy, appropriateness and completeness of such data and indicators presented in this document.


© LANCERS, Inc. All Rights Reserved	49

Company analysis

Freelancers

Work in the

(Employees)

Lancers: Financial Report for First Quarter of Fiscal 2021Aug 13, 2020

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