Fast Accounting Co.,ltd. · TSE:5588
Fast Accounting Co.,ltd — Q3 2023 Earnings Presentation
34 slides from Fast Accounting Co.,ltd's earnings presentation, Nov 14, 2023
Slide 1: Financial Results Presentation for Q3 2023
Financial Results Presentation for Q3 2023 Fast Accounting Co., Ltd. (TOKYO:5588) November 14, 2023
Slide 2: Executive summary
Executive summary (Unit: Thousand Yen) FY2023 Q3 performance Sales Gross Profit Operating Profit 877,321 542,076 76,803 ● Achieved 72% of the earnings forecast in Q3 YoY +59.4% Gross profit margin Profit margin 8.8% 61.8% ● Existing contracts at the end of September Monthly average confirm 96% of th
Slide 3: Progress of Full-Year Sales Forecasts
Progress of Full-Year Sales Forecasts 96% of sales has been confirmed with contracts signed by the end of September, and the company expects to land on its full-year forecast of 1.2 billion yen (Unit: Million Yen) Full-year forecast: 1,217M Yen 1000 297 1,174 800 877 Sales Achievement Ratio 600 400
Slide 4: Changes in Shareholding Structure After Listing
Changes in Shareholding Structure After Listing Shareholding by venture capitalists decreased from 26% to 5% (Only one fund) Before listing As of October 25th, 2023 Corporations and other entities 10% Individuals and other corporate entities 22% Company VCs Company officers and officers and Financia
Slide 5: FY2023 Q3 performance
01 FY2023 Q3 performance 5
Slide 6: Profit and Loss Statement
Profit and Loss Statement We have been profitable through FY2023, and the operating income margin in Q3 was 8.8%. (Unit: Thousand Yen) ❏ 59.4% sales growth YoY Q3 of FY2022 Q3 of FY2023 FY2023 (Cumulative) (Cumulative) (Full year) ❏ Progress rate of earnings Progress forecast: Sales 72.1%, Results A
Slide 7: Quarterly results
❏ As of 2023/Q3, sales reached 877 Quarterly results million yen, with 340 million yen remaining to meet the full-year sales forecast Sales and operating profit are steadily growing ❏ Operating profit is also steadily Sales Operating profit growing, with 25 million yen remaining (Million yen) (Milli
Slide 8: Quarterly Business Performance
Quarterly Business Performance In light of past performance, progress is favorable ❏ There are no major seasonal fluctuations, and the component ratio tends to increase with each passing quarter as orders exceed churn 8 Q1 Q2 Q3 Q4
Slide 9: Business flows
❏ Fast Accounting provides AI Business flows services to companies of any size to achieve DX in their accounting works and related systems. SMEs Large companies ❏ We have established a sales route to major companies through direct approaches by sales staff and by Accounting systems, ERP (Enterprise
Slide 10: Accounting DX for large companies
Accounting DX for large companies We support accounting DX for large companies with over 50 billion yen in sales, and provide AI services to many of our customers 10
Slide 11: Sales by sales type
Sales by sales type Enterprise sales account for about two-thirds (Unit: Thousand yen) ❏ Enterprise sales: 65.4% Approx. SMEs sales (Through accounting 35% vendors) : 34.6% 33.7% Approx. 66.3% 65% FY2021 FY2022 FY2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 11 SME/Accounting vendors Enterprise Companies
Slide 12: Number of adopting companies
Number of adopting companies Number of adopting companies grew steadily, surpassed 100 ❏ Number of adopting Number of enterprises: 85 adopting companies ❏ Number of adopting OEMs: 107 As of the end of September 2023 37 22 (Many end-users are utilizing the accounting vendors / OEMs) ❏ An increase of
Slide 13: Trends in advertising and promotion expenses
Trends in advertising and promotion expenses Sales system not reliant on advertising Advertising and promotion expenses vs. sales (Million Yen） ❏ Participated in SAP Concur Fusion Exchange 2023 Sales Ad expenses Tokyo hosted by Concur in 2023/Q3 FY2022 FY2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 13 Sales Ad expense
Slide 14: KPI (Stock ratio)
KPI (Stock ratio) Our revenue structure is focused mainly on recurring billing through subscriptions Initial (One-off) Fixed monthly price plans deliver stable revenue Initial setup costs/deployment consulting fees (1%) Usage-based billing Usage fees according to processed volume (5%) Type of Stock
Slide 15: KPI: Average Revenue Per Account (APRA)
KPI: Average Revenue Per Account (APRA) Aim to expand SAM by increasing ARPA after adoption through upselling and cross-selling Monthly ARPA by number of years of adoption (Unit: Thousand Yen) 1,980 836 449 1st Year 2nd Year From the 3rd year onward Adopted from October Adopted from October since ad
Slide 16: KPI: Monthly churn rate (Gross churn rate)
KPI: Monthly churn rate (Gross churn rate) Trend toward more adoptions at large ARPA companies and lower churn rate Monthly gross churn rate Increase due to BPO vendor and OEM partner contract terminations FY2021 FY2022 FY2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Monthly gross churn rate: Monthly churn
Slide 17: Balance sheet
Balance sheet Increase in equity ratio due to listing (Unit: Thousand Yen) FY2023/Q3 FY2022/Q4 ROE (Reference) Results Percentage change Results FY2023/Q3 FY2022/Q4 Current assets 1,334,501 102.9% 657,690 18.5% △38.1% Of which, cash and 1,263,684 109.3% 603,792 deposits ROIC (Reference) Fixed assets
Slide 18: Business Highlights
02 Business Highlights 18
Slide 19: Support for the invoice system
Support for the invoice system Reduce the increased accounting workload under the new system with AI and support labor saving 1 Automatic confirmation of registration numbers Patent #: 6794564 Y2020 ● AI uses the National Tax Agency's database to automatically confirm whether the invoice registratio
Slide 20: Differentiation through research and development
Differentiation through research and development Including character recognition with imprints, achieved a benchmark of 96.2% (An international AI-OCR: 35.9%) ● Research results have improved the recognition rate of characters that were difficult traditionally, such as those overlapped by stamps ● U
Slide 21: Strengthening PR capabilities
Strengthening PR capabilities Timely dissemination of the corporate information [Q3 press release list] ● Image processing technology research paper accepted for the world-renowned IEEE ICIP 2023 Conference ● Won the grand prize in the field of DX solutions category at the MM Research Institute Awar
Slide 22: Case Study - KOKUBU GROUP CORP.
Case Study - KOKUBU GROUP CORP. Adoptions by partners remain strong Overview ● Implementation in the Kokubu Group, one of the leading companies in the food wholesale industry, with 35,000 customers and 10,000 manufacturers. ● Kokubu Group decided to adopt our service to improve efficiency of account
Slide 23: We give confidence and courage by removing restriction
We give confidence and courage by removing restriction
Slide 24: APPENDIX
03 APPENDIX (Market environment, business strategy, and our team) 24
Slide 25: Our value proposition
Our value proposition Listed companies are strongly demanded by institutional investors and exchanges to improve corporate value. By streamlining accounting tasks with our AI services, accountants can create time to achieve strategic accounting that enhances corporate value As-is To-be Strategic acc
Slide 26: Basic Strategy
Basic Strategy Concentrate resources where three circles intersect Accounting DX for large enterprises Something that can be pursued with passion High customer unit price No.1 strategy (Market share) Something that becomes A field an economic driving force where we can be number one in the world 26
Slide 27: Market environment
❏ Our services automate the work of Market environment persons involved in accounting work, TAM multiplies the labor costs for persons involved in accounting work TAM/SAM for accounting-related business by the work automation ratio. The business automation ratio was set based on automation results a
Slide 28: Generative AI Research and Servicing
Growth Strategy - 1 Generative AI Research and Servicing 1 Higher added value for existing services Now Improved OCR processing accuracy through use of generative AI Short term Creation of information concerning accounting work from digital invoices, and linking with registered data in accounting sy
Slide 29: Development of an invoice sending service
Growth Strategy - 2 Development of an invoice sending service Using our Peppol invoice sending function, we shall reduce the invoice sending work faced by accounting departments at large companies Now Development of Peppol sending function complete Short term Linking with mailing service and develop
Slide 30: Overseas expansion
Growth Strategy - 3 Overseas expansion 1 Strengthening the recruitment of international talent Global rollout of services and increased hiring of non-Japanese nationals for overseas expansion Now Engineers Short term Sales & Customer Success 2 Support for non-digital invoices overseas We are prepari
Slide 31: Organizational status
Organizational status Aiming to improve the ratio of women in the workforce and reduce wage disparities AI Corporate Managements Non-managements 5 10 Male Female Male Female Service Female Female Development 0.0% 7 0 28.6% 30 12 Sales 13 Gender wage Gender wage ー ー 100 83.1 gap gap 14 Customer Avera
Slide 32: Trend of Average Revenue Per Account (ARPA)
Trend of Average Revenue Per Account (ARPA) Monthly ARPA Monthly ARPA by number of years of adoption Although monthly ARPA has been increasing every year since service adoption, new contracts have also increased and ARPRA has (Unit: Thousand Yen) generally remained at around 1 million yen since the
Slide 33: About this document
About this document ● This document has been prepared by the Company for informational purposes only, and none of the information contained herein constitutes an offer to buy or sell shares of the Company. ● Information in this document regarding matters and organizations other than the Company is b
Slide 34: We give confidence and courage by removing restriction
We give confidence and courage by removing restriction