Sharingtechnology. Inc · TSE:3989
Sharingtechnology — FY2023 Earnings Presentation
40 slides from Sharingtechnology's earnings presentation, Nov 14, 2023
Slide 1: September 2023 Financial Results Briefing Document
September 2023 Financial Results Briefing Document (Disclosure on business plans and matters related to high growth potential) November 14, 2023 1
Slide 2: Topics
Topics FY2023 ● Sales revenue : 6,228 mil.yen (YoY 141%, +1,799 mil.yen) Actual ● Operating profit : 1,240 mil.yen (YoY 309%, +839 mil.yen) Group ● After M&A of GC in Apr. ’23, implemented PMI in business and control Company ● Achieved Sales increase and Turning into surplus from the latest close FY
Slide 3: Table of contents
Table of contents 01 FY2023 Performance reporting 02 PMI of Az support (Former name : Fujisawa Real Estate) 03 Forecast of FY2024 & Growth Strategy 04 Supplementary materials 3
Slide 4: FY2023 Performance reporting
FY2023 Performance reporting 4
Slide 5: Consolidated 4Q results (3 months)
Consolidated 4Q results (3 months) Succeeding 3Q, 4Q Sales revenue ended 1,934 mil.yen (YoY 148%), mainly due to sales increase of main genres (i.e. “Key lost” genre), and consolidation of Az support. Operating profit increased largely, due to sales increase and continuous control of Advertisement c
Slide 6: Fiscal Year ending Sep. 30, 2023 performance results
Fiscal Year ending Sep. 30, 2023 performance results FY2023 Sales revenue was remarkable 6,228 mil.yen (YoY +1,799 mil.yen). Operating profit was 1,240 mil.yen (YoY +839 mil.yen) by Sales revenue increase, optimized Advertisement cost ratio through the year, and diminished Fixed Cost, etc. Sep. 2023
Slide 7: Analysis of change of Operating profit in FY2023
Analysis of change of Operating profit in FY2023 Starting from 401 mil.yen of Operating profit of FY2022, Gross profit increased significantly. Though cost of Advertisement and Call Center labor increased with sales increase, cost ratio to Gross profit are maintained at the certain level. Also, 97 m
Slide 8: Sales revenue trend of "Household problems" business
Sales revenue trend of “Household problems” business FY2023 4Q Sales revenue ended in YoY 148%, thanks to strong summer genres such as “Garden related”, “Pest, Vermin, etc.” and recovery of “Key lost” genre, succeeding 3Q. (exclud. effect of Az support consolidated in 3Q, pro forma 4Q YoY was 141%).
Slide 9: Transition of KPI
Transition of KPI In FY2023, Sales revenue increased significantly. COS ratio to sales rose with increase of Our-own service (includ. Az support) and Business Alliance. Advertisement cost ratio to GP was kept around appropriate 47%. Labor cost ratio of Call center was also kept at the certain level.
Slide 10: Transition of KPI of Profit Structure (Sales revenue)
Transition of KPI of Profit Structure (Sales revenue) “Number of inquiries” is gradually increasing from the stable certain level. “Unit price per inquiry” is also on the upward trend, thanks to optimized matching methodology and increased Our-own service (includ. Az support consolidated from 3Q). E
Slide 11: Transition of KPI of Profit Structure (Cost)
Transition of KPI of Profit Structure (Cost) Cost of Sales ratio Advertisement cost (PPC) ratio Cost of Sales ratio (service cost and consignment fee) Improving from FY2021 in the rapid worsening rising due to increasing Our-own service (includ. Az competition. Since FY2022, certain level kept. Supp
Slide 12: 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. Despite low level tra
Slide 13: PMI of Az support (Former name: Fujisawa Real Estate)
PMI of Az support (Former name : Fujisawa Real Estate) 13
Slide 14: PMI of Az support
PMI of Az support Az support (Former name : Fujisawa) acquired in Apr. ‘23, turned to surplus, just after PMI. Since operating foundation such as Control Dep’t has been strengthened, “Area and Genre” through sales activity shall be widened for further increase of sales and profit in FY2024. After M&
Slide 15: Rationale of M&A of Service provider
Rationale of M&A of Service provider SHARETECH carried out the first M&A of a Service provider in Apr. ‘23. Az support after M&A has consistently contributed good performance. With expanding Az support, SHARETECH will seek for M&A opportunity, examining closely. Quantitatively, Az support, which con
Slide 16: Forecast of FY2024 & Growth Strategy
Forecast of FY2024 & Growth Strategy 16
Slide 17: Forecast of Fiscal Year ending Sep. 30, 2024
Forecast of Fiscal Year ending Sep. 30, 2024 Forecast of FY2024 Sales revenue will be 7,200 mil.yen by growth of each genre, full-year consolidation of Az support, and increase of Our-own service and Alliance with business entities. Operating profit will be 1,600 mil.yen. COS will rise with increase
Slide 18: Rationale of Forecast of FY2024
Rationale of Forecast of FY2024 Earnings Forecast is based upon FY2023 Actual. Sales revenue will be 7,200 mil.yen (YoY 116%). COS ratio will rise a little bit with increase of Our-own service and Alliance with business entities. Meanwhile, cost ratio of Advertisement and Call Center labor, and amou
Slide 19: Issues at the Market and Our Promise of Value
Issues at the Market and Our Promise of Value The issues of “Household problems” business are recognized as “Unkown service provider” “Unkown reasonable price” “Unkown service quality”, until now. we have been aiming at normalization of the industry by “Effective matching” “Reasonable price” “High q
Slide 20: Our Promise of Value ～ Matching ～
Our Promise of Value ～ Matching ～ To optimize “Matching”, the prerequisite of “Household problems” business, we have developed our original system based on the network with Service Providers. We will continue to optimize “Matching” by feedback from Customers and Service Providers, and accumulated hi
Slide 21: Our Promise of Value ～ Reasonable price ～
Our Promise of Value ～ Reasonable price ～ To attain “Reasonable price”, the issue of “Household problems” business, we have been eliminating unfair overcharging based on historical data and feedback from Customers. The recent problem consciousness of the market also supports our effort to “Reasonabl
Slide 22: Our Promise of Value ～ High quality ～
Our Promise of Value ～ High quality ～ To achieve “High quality” of “Household problems” business, we have been improving Partner Stores network based on feedback from Customers. For further understanding of the industry and clarification of ideal standard, we will enhance our own service provision b
Slide 23: 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 24: Supplementary materials
Supplementary materials 24
Slide 25: Mission
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 26: 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 27: Solving "Household problems"
Solving “Household problems” We have contracts with about 6,300 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
Slide 28: 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 29: 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 30: 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 31: Monthly Sales revenue of "Household problems" business
Monthly Sales revenue of “Household problems” business “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). This seasonality continues, and Sales revenue are expected to grow in t
Slide 32: 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 33: 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 34: 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 35: 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 36: 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 37: Fiscal Year ending September 30, 2023 balance sheet
Fiscal Year ending September 30, 2023 balance sheet ［million.yen］ Current year-end 2023 Previous year-end 2022 YoY change （As of Sep. 30,2023） （As of Sep. 30,2022） Current assets 2,842 1,706 +1,135 Fixed assets 1,283 622 +661 Total assets 4,126 2,328 +1,797 Current liabilities 1,443 1,565 (121) Fixe
Slide 38: Fiscal Year ending September 30, 2023 P/L statement
Fiscal Year ending September 30, 2023 P/L statement ［million.yen］ Current year-end 2023 Previous year-end 2022 YoY change （As of Sep. 30,2023） （As of Sep. 30,2022） Sales revenue 6,228 4,429 ＋1,799 Cost of sales 405 172 ＋233 Gross profit 5,822 4,256 ＋1,566 SGA expense 4,577 3,866 ＋711 Operating profi
Slide 39: 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 40: 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