Sharingtechnology. Inc · TSE:3989
Sharingtechnology — Q1 FY2024 Earnings Presentation
33 slides from Sharingtechnology's earnings presentation, Feb 14, 2024
Slide 1: FY2024 1Q Financial Results Briefing Document
FY2024 1Q Financial Results Briefing Document February 14, 2024 1
Slide 2: Topics
Topics Sales ● Sales revenue : 1,734 mil.yen (YoY 134%, +441 mil.yen) revenue ● Excluding 78 mil.yen sales of M&A, YoY 128% Operating ● Operating profit : 374 mil.yen (YoY 170%, +154 mil.yen) profit ● Excluding 19 mil.yen profit of M&A, YoY 161% Progress ● 1Q progress in FY24 Sales : 24.1% (1Q in FY
Slide 3: Table of contents
Table of contents 01 FY2024 1Q Performance reporting 02 Forecast of FY2024 & Growth Strategy 03 Supplementary materials 3
Slide 4: FY2024 1Q Performance reporting
FY2024 1Q Performance reporting 4
Slide 5: Consolidated 1Q results (3 months)
Consolidated 1Q results (3 months) 1Q Sales revenue ended 1,734 mil.yen (YoY 134%), due to sales increase of main genres. Operating profit ended 374 mil.yen (YoY 170%), due to sales increase and continuous appropriate control of Advertisement cost. Though Net income decreased due to the effect of ta
Slide 6: Progress toward FY2024 Forecast
Progress toward FY2024 Forecast 1Q Sales revenue progress rate toward FY2024 was at 24.1%, exceeding that of previous 1Q. Similarly, 1Q Operating profit progress rate started at 23.4%, well above that of previous 1Q. Meanwhile 1Q-2Q progress are usually lower by seasonality, current progress toward
Slide 7: Analysis of YoY change of Operating profit
Analysis of YoY change of Operating profit Starting from 220 mil.yen of Operating profit of FY2023 1Q, 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. Operating pro
Slide 8: Sales revenue trend of “Household problems” business
Sales revenue trend of “Household problems” business FY2024 1Q Sales revenue ended in YoY 134%, thanks to strong main genres. Even excluding effect of Az support newly consolidated in FY 2023 3Q, still now, stable growth is maintained (pro forma 1Q YoY was 128%). Sales revenue ［Unit：mil.yen］ FY2021
Slide 9: Transition of KPI of Business
Transition of KPI of Business Sales revenue increased continuously. 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 48%. Labor cost ratio of Call center and Fixed cost ratio were also kept
Slide 10: Transition of KPI of Profit Structure (Sales revenue)
Transition of KPI of Profit Structure (Sales revenue) “Number of inquiries” is gradually turning from levelling off trend to increasing trend since FY2023. “Unit price per inquiry” is also on the upward trend, thanks to optimized matching methodology and increased Our-own service (includ. Az support
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 some increase
Slide 13: PMI of Az support
PMI of Az support Az support (Former name : Fujisawa) acquired in Apr. ‘23, turned to surplus by PMI, just after M&A. Since strengthening of operating foundation such as Control Dep’t has been completed, sales enhancement prioritizing “Area and Genre” shall be aimed for further increase of sales and
Slide 14: Forecast of FY2024 & Growth Strategy
Forecast of FY2024 & Growth Strategy 14
Slide 15: Forecast of Fiscal Year ending Sep. 30, 2024
Forecast of Fiscal Year ending Sep. 30, 2024 (added Net income) Forecast of FY2024 Sales revenue of 7,200 mil.yen and Operating profit of 1,600 mil.yen are not revised from the latest disclosure. Meanwhile, since effect of tax effect accounting has been analyzed, Net income (Net income attributable
Slide 16: 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 17: 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 18: 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 19: Supplementary materials
Supplementary materials 19
Slide 20: Contributing to a safe life by creating a new mechanism
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 21: VALUE: Speed x Flexibility
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 22: Solving “Household problems”
Solving “Household problems” We have contracts with about 6,400 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 23: 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 24: 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 25: 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 26: 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 27: 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 28: 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 29: 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 30: FY2024 1Q Balance sheet
FY2024 1Q Balance sheet ［million.yen］ FY2024 1Q Previous year-end 2023 Change from （As of Dec. 31,2023） （As of Sep. 30,2023） Previous year-end Current assets 3,084 2,842 +242 Fixed assets 1,239 1,283 (44) Total assets 4,324 4,126 +197 Current liabilities 1,355 1,443 (88) Fixed liabilities 436 493 (5
Slide 31: FY2024 1Q P/L statement
FY2024 1Q P/L statement ［million.yen］ FY2024 1Q FY2023 1Q （From Oct. 1, 2023 （From Oct. 1, 2022 YoY change to Dec. 31,2023） to Dec. 31,2022） Sales revenue 1,734 1,292 ＋441 Cost of sales 155 61 ＋94 Gross profit 1,578 1,230 ＋347 SGA expense 1,216 1,017 ＋199 Operating profit 374 220 ＋154 Pre-tax profit
Slide 32: 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 33: 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