Geechs Inc. · TSE:7060
Geechs — FY2022 Earnings Presentation
46 slides from Geechs's earnings presentation, May 13, 2022
Slide 1: Financial Results Briefing, Fiscal Year Ended March 31, 2022
Fiscal Year Ended March 31, 2022 Full year Financial Results Briefing May 13, 2022 TSE Prime Market: 7060 0 ©2022 geechs inc.
Slide 2: Contents
Financial Results Briefing 1 Corporate Profile 02 2 Financial Results for FY3 / 2022 07 3 Forecast for FY3 / 2023 21 4 Medium-Term Management Plan 25 5 Appendix 31 Contents 1 ©2022 geechs inc.
Slide 3: Corporate Profile
Financial Results Briefing Corporate Profile 1 2 ©2022 geechs inc.
Slide 4: geechs Group [geek tech]
geechs Group [ geek tech ] 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 values through our technologies. 3 ©2022 geechs inc.
Slide 5: Grand Vision: Make the biggest impression in the 21st century
Grand Vision Our Grand Vision is “Make the biggest impression in the 21st century” . Regardless of changes in the business environment, always “challenge” difficult issues and “enjoy” the process, link it to “growth”, and by repeating these processes, we will create a lot of “impressions” to the wor
Slide 6: Group Corporate Profile
Group Corporate Profile Our Group Companies Name geechs inc. (TSE Prime Market : 7060) IT Freelance Matching Business x-Tech Business Management President & CEO Naruhito Sonehara Foundation August, 2007 Seed Tech Business Location Shibuya-ku, Tokyo, Japan Capital Stock 1,101 (in JPY MM) Segmentation
Slide 7: geechs Group Advantage
geechs Group Advantage A Portfolio Management that Enhances Growth, Stability, and Profitability Enhancing Management Stability and Maximizing Business Synergies IT Freelance Matching Business Further growth for mainstay earnings while driving the market as a main business Game Business Stock-type p
Slide 8: Financial Results for FY3/2022
Financial Results Briefing Financial Results for FY3/2022 2 7 ©2022 geechs inc.
Slide 9: Gross Sales and Operating Profit
Gross Sales and Operating Profit 4Q ( YoY ) ◼ Both sales and profits achieved record highs, with significant increases. Achieved operating income of over 1 billion yen for the first time Net Sales 1,373 million yen ( -8.1% ) ◼ Despite a temporary drop in 3rd Quarter, the Group as a whole recovered i
Slide 10: Segment Information FY3/2022
Segment Information FY3 / 2022 ◼ IT Freelance Matching Business Achieved all-time high sales, profits, and growth rates. Also substantially higher than the upwardly revised full-year forecast ◼ Game Business Despite significant increases in sales and profits from FY3/21, both sales and profits fell
Slide 11: Cost Structure
Cost Structure ◼ Labor and outsourcing expenses increased significantly due to the impact of adopting the new revenue recognition standard from FY3/22. ◼ The cost of attracting engineers has increased significantly compared to the previous term, which was suppressed due to the i nfluence of corona.
Slide 12: IT Freelance Matching Business (1/3)
IT Freelance Matching Business (1/3) 4Q ( YoY ) ◼ Full-year transaction value exceeded 10 billion yen for the first time! Gross Sales 2,841 million yen ◼ Achieve record-high growth rates of over 20% in both net sales and segment income for the full fiscal year ( +20.7%) ◼ In 4th Quarter, segment inc
Slide 13: IT Freelance Matching Business (2/3)
IT Freelance Matching Business (2/3) ◼ The number of IT Freelancers Under Contract rose 19.9% YoY, reaching a record high, reflecting strong demand and an increase in matching between the Tokyo metropolitan area and regional areas. ◼ The transaction ratio, which represents the supply and demand in t
Slide 14: IT Freelance Matching Business (3/3)
IT Freelance Matching Business (3/3) ◼ The number of new clients grew significantly for the full fiscal year, partly due to the effects of investment in corporate advertising. 4Q ( YoY ) ◼ The number of new IT Freelance registrants rose 15.6% YoY, a significant increase in 4th Quarter due to measure
Slide 15: Profitability of IT Freelance Matching Business
Profitability of IT Freelance Matching Business ◼ Unit Economics is a highly profitable business with a high return on investment of 4.5 (+9.8% YoY). ◼ Control acquisition costs per IT Freelance through appropriate marketing measures KPI Definition FY3/21 FY3/22 Return on IT Freelance Acquisition Co
Slide 16: Game Business
Game Business 4Q ( YoY ) ◼ Significant increases in both sales and profits for the full fiscal year due to an increase in the number of titles under management, partly from the delivery of three new titles Net Sales 801 million yen ◼ Recurring sales recovered in 4th Quarter, partly from to the contr
Slide 17: Other Business: x-Tech and Seed Tech
Other Business Topics x-Tech Business Seed Tech Business x-Tech Business 4Q ( YoY ) 4Q ( YoY ) ◼ Full-year sales grew by +14.3% YoY, with segment profit also turning positive Net Sales 60 million yen Net Sales 20 million yen ◼ Continuous increase in investment projects due to new ( +2.9 % ) ( -11.5%
Slide 18: x-Tech Business restructuring
x-Tech Business From FY3/23, part of the x-Tech Business was transferred to the Game Business Restructuring of x-Tech Business Background and Objectives ~ FY3/22 FY3/23~ ◼ In the Game Business, the need for CG and Video Game Business Game Business Production is increasing as the pipeline expands, an
Slide 19: Financial Performance
Financial Performance ◼ The equity ratio (+16.6%) and ROE (+4.3%) also improved due to the increase in net income. ◼ In BS, total assets (work in process and contractual liabilities) decreased due to a change in accounting standards. In addition, investment securities increased due to an increase in
Slide 20: Changes in the Number of Employees
Changes in the Number of Employees ◼ The number of employees in the Group as a whole increased by 27 from FY3/21. The main reason is an increase in new graduates and mid-career employees due to the strengthening of the IT Freelance Matching Business structure. (People) 500 Corporate Seed Tech x-Tech
Slide 21: Shareholder Composition
Shareholder Composition ◼ Aggressive IR Activities Increased Institutional Investors From 24.9% to 25.5% (Year-on-Year Increase of 0.6%) ◼ In particular, while the ratio of domestic institutional investors increased, the ratio of foreign shareholders decreased from 10.4% to 9.3% (down 1.1%). Oversea
Slide 22: Forecast for FY3/2023
Financial Results Briefing Forecast for FY3/2023 3 21 ©2022 geechs inc.
Slide 23: Executive Summary FY3/2023
Executive Summary FY3 / 2023 ◼ For the Group as a whole, sales are expected to increase 7.6% YoY. However, the Group also expects a temporary decline in income due to strategic investments in the IT Freelance Matching Business and Seed Tech Business, as well as preparations for the Game Business, in
Slide 24: Segment Information FY3/2023
Segment Information FY3 / 2023 In FY3/23, we will actively invest in human resources and development in view of achieving further growth for the G100. FY3/22 FY3/23 (Millions of yen) Change YoY Policies and Formulation Assumptions Results Plan IT Freelance Matching Sales 1,814 2,200 385 +21.2% • Agg
Slide 25: Dividend Policy
Dividend Policy Plan to pay the same dividend as the previous fiscal year in FY3/23 Provide stable and continuous dividends while prioritizing business and growth investments Dividend Trend FY3/22 FY3/23 Dividend 10 10 Total Dividend 105 105 Dividend payout ratio 14.9 21.9 24 ©2022 geechs inc.
Slide 26: Medium-Term Management Plan
Financial Results Briefing Medium-Term Management Plan 4 25 ©2022 geechs inc.
Slide 27: Medium-Term Management Plan
Medium-Term Management Plan ◼ Aiming to achieve the G100 target, progress was made in FY3/22 as planned. Aiming for accelerated growth from FY3/24, in FY3/23 we will actively invest in IT human resources and Seed Tech businesses, and further promote M&As. G100 (Millions of yen) 10,000 Net Sales Oper
Slide 28: Medium-Term Plan of IT Freelance Matching Business
Medium-Term Management Plan of IT Freelance Matching Business ◼ In FY3/22, sales rose 25.6% YoY, far exceeding the previous 15-20% growth rate ◼ Based on the current growth rate, aim for further upside from FY3/25 target Performance Trends & Plan Major Initiatives and Progress Gross Sale (Millions o
Slide 29: Medium-Term Plan of Game Business
Medium-Term Management Plan of Game Business ◼ Substantial growth in FY3/22, steady progress in acquiring development projects in line with the medium-term management plan ◼ We will focus on developing new titles for about two years from FY3/23, and expect further rapid growth by launching multiple
Slide 30: Medium-Term Plan of Other Business
Medium-Term Management Plan of Other Business ◼ In the seed tech business, we expect further growth by focusing on the SaaS-type DX/IT Human Resource Development Service for corporations “sodatech” ◼ The x-Tech Business provides comprehensive support for digital marketing, including D2C construction
Slide 31: Medium-Term Plan of M&A
Medium-Term Management Plan of M&A ◼ Broadly expanding the scope to domestic and overseas companies that expect to maximize synergies by strengthening M&A promotion, aiming for organic growth plus something upside toward achieving the G100 ◼ The number of M&A considered was 108 in FY3/22, a signific
Slide 32: Appendix
Financial Results Briefing Appendix 5 31 ©2022 geechs inc.
Slide 33: IT Freelance Matching Business
IT Freelance Matching Business Technology Resource Sharing Platform Growing companies in IT field Internet companies Portfolio Information Website ◼ Med Tech Services ◼ Ad Tech Continuously owned Approximately ◼ Real Estate Tech ◼ Fin Tech 1,500 or more properties ◼ EC Matching 3,300 ◼ HR Tech ◼ Ed
Slide 34: Source of growth
Source of growth Financial Figures Business KPIs Key Success Factor Platform value Monthly Orders Trust from Outsourcing Matching Capabilities Gross Sales per order IT Freelance and Clients Gross Sales Contract period Net Sales (Source of Growth) Support Capabilities/ Retention rate Engagement Gross
Slide 35: geechs Strength
geechs Strength Supporting team structure of Swift and optimal matching 3 supporters for 1 IT Freelancer Support ◼ Beneficial support as a project mentor ◼ Speedy matching by making all processes online Capabilities ◼ Beneficial support from career advisors ◼ Taking into account preferences other th
Slide 36: Relationships with IT Freelance
Relationships with IT Freelance Engagement enhancement by maintaining effective long-term contact with IT Freelancers Increasing Registration Business Start of Lead acquisition Matching Contract recognition interview negotiations operations Marketing Automation Lead generation Lead Naturing Customer
Slide 37: Differentiation from Similar Businesses
Differentiation from Similar Businesses Developing a platform specializing in mid- to high-spec core IT Freelance geechs Crowdsourcing IT technician dispatch Freelancers Registrant IT Freelance(Main Business) (Side Business/Main Business) Dispatched worker Major System Major Clients Internet Service
Slide 38: Engagement
Engagement By enhancing our engagement with IT Freelance, Strengthening Continuous Partnerships to Maximize Business We provide 43 benefits for IT Freelance to resolve the causes of uncertainty Benefit Program and can work with peace of mind for for IT Freelance a long time. ◼ Conducting seminars on
Slide 39: Game Business
Game Business 1. Specialize in Partner Strategy With solid technical capabilities centered on Unity / PHP, we have stabilized our earnings base through contract development and operation, and won a revenue share for strong titles. Expanded orders for globally © We Work distributed titles. 2. Game de
Slide 40: Differences between Developer and Publisher
Differences between Developer and Publisher As for the future strategy of the Game Business Aiming to be a developer of global distribution titles Developers (Our company) Publisher Main Roles planning, development, and operation of titles planning, distribution and promotion of titles ⚫ Planning an
Slide 41: Game Business: Business and Revenue Image
Game Business -Business and Revenue Image- Business Model Revenue Image ◼ We are a developer exclusively entrusted with the planning, ◼ In the planning and development period, from FY3/22, the same development, and operation of games from a major publisher amount of development costs were recorded a
Slide 42: x-Tech Business
x-Tech Business By using You Tube 1. Digital Marketing Support for the Golf Launched sales promotion support services Industry Promote golf xIT, and provide digital marketing support for owned media development, D2C construction, SNS management agency, etc. 2. A wealth of production track record and
Slide 43: Seed Tech Business
Seed Tech Business Seed Tech Inc. 1. Provision of SaaS-type DX/IT Human Development Business-Offshore Development Business Education Business-IT and Global Human Resource Development- Resource Development Platform Funds Offering “sodatech” Providing DX/IT Human Resource Development Service “sodatech
Slide 44: ESG Statement & Map
ESG Statement & Map Under way based on the ESG Statement and the ESG Map ESG Map Toward a society where employees can work with peace of mind ◼ Solve the shortage of IT human resources in companies and Pride in Reducing Environmental Impact promote the enhancement of IT human resources ◼ The Role of
Slide 45: Performance Highlights
Performance Highlights Fiscal Year-End FY3/19 FY3/20 FY3/21 FY3/22 Net Sales (thousand yen) 3,050,413 3,544,309 3,427,816 5,388,647 Ordinary income (thousand yen) 532,117 675,446 713,942 1,135,706 Net income attributable to owners of parent (thousand yen) 411,610 390,651 457,755 705,194 Comprehensiv
Slide 46: Notes regarding Forward-Looking Statements
Notes regarding Forward-Looking Statements The information contained in this presentation is based on a number www.geechs.com 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 d