Full-year Financial Report for the Fiscal Year Ended on December 31, 2017

Transcription

1 Our belief that people connect people Full-year Financial Report for the Fiscal Year Ended on December 31, 2017 February 14, 2018 TSE 1st Section: 6071 Copyright IBJ,Inc. All All rights rights reserved. reserved. 1

2 INDEX 1 2 Financial Results Summary Summary by Business Division 3 Growth Strategy 4 Reference Materials 2

3 1 Financial Results Summary 3

4 1. Financial Results Summary (million yen) 2017 Increase/ decrease Year on Year Net sales 5,268 9,461 +4, % selling and administration cost 3,575 4, % Operating income 1,111 1, % Net Income 725 1, % 4

5 1. Financial Results Summary Changes in Sales Sales have increased for 11 consecutive fiscal years 9, % YoY 5,268 4,123 3,317 (million yen) ,032 1,518 1,819 2,125 2, (Consolidated) 2017 (Consolidated) 5

6 1. Financial Results Summary Performance Highlights Net sales increased by 79.6% YoY Operating income increased by 34.4% YoY Net sales +79.6% YoY (million yen) 5,268 9,461 Operating income +34.4% YoY (million yen) 1,111 1,493 Marriage Hunting Business Net sales: 5,850 million yen +14.9% YoY Segment income: 2,577 million yen +19.6% YoY Segment operating margin: 44.1% +2.6% YoY Life Design Business Net sales: 3,611 million yen full-year (consolidated) 2017 full-year (Consolidated) full-year (consolidated) 2017 full-year (Consolidated) Segment income: 29 million yen (before goodwill amortization) 6

7 1. Financial Results Summary Performance Forecast for Fiscal Year ending in December 2018 (million yen) FY2017 (Actual) FY2018 (Forecast) Year on Year Net sales 9,461 10, % Operating income 1,493 1, % Ordinary income 1,493 1, % Net Income 1,036 1, % 7

8 2 Summary by Business Division 8

9 2. Summary by Business Division (1) Community Business Operation of the marriage hunting website Bridal Net Halt the declining number of people paying monthly membership fees by reinforcing marriage concierge Net sales (excluding internal sales) Number of people paying monthly membership fees (as of quarter-end) (10,000 people) (million yen) Q 2Q 3Q 4Q Q Q Q Q Reinforcing marriage concierge so that 1 marriage concierge supports 1,000 members. 9

10 2. Summary by Business Division (2) Event Business Operation of PARTY PARTY marriage-hunting parties and Rush matchmaking party arrangement service Number of participants was exceeded 600,000 in the full year % YoY (million yen) 650 Net sales (excluding internal sales) Number of participants (10,000 people) Q 2Q 3Q 4Q Q Q Q Q Increase the number of halls and staff through the aggressive hall opening plan for

11 2. Summary by Business Division (3) Marriage Consulting Agencies Business Operation of own marriage servicers IBJ Members The number of married in the full term is 1, % YoY Net sales (excluding internal sales) (million yen) Number of people married Q 2Q 3Q 4Q Q Q Q Q Directly managed marriage consulting lounges led to 1,200 people getting married. Further invest in human resources through establishing a department dedicated to HR development. 11

12 2. Summary by Business Division (4) Affiliate and Media Service Business Number of affiliates exceeded 1,600 and is continuing to rise. (million yen) ,182 companies 216 Net sales (excluding internal sales) Number of affiliates (as of quarter-end) 1,190 companies 226 1,257 companies 254 1,325 companies 1,381 companies System services for affiliates throughout Japan and support for independent launches 1,469 companies 305 1,560 companies 314 1,629 companies Q 2Q 3Q 4Q Number of affiliates exceeded 1,600. Number of marriage meetings in October far surpassed 27, Q Q Q Q

13 3 Growth Strategy 1. Marriage Hunting Business (1) Enhance IBJ s strengths (2) Expand the membership base 2. Life Design Business 13

14 3. Growth Strategy 1. Marriage Hunting Business (1) Enhance IBJ s strengths Number of young people who have no one to go out with increases % % About 1 out of 3.5 people does not particularly wish to go out with someone. Sample: Unmarried people aged between 18 and 34 Source: Developed based on the 11th Annual Population and Social Security Surveys and the 15th Annual Population and Social Security Surveys conducted by the National Institute of Population and Social Security Research 14

15 3. Growth Strategy 1. Marriage Hunting Business (1) Enhance IBJ s strengths The reason for not wanting to go out with someone is that dating or going out is troublesome. Scared of being in a romantic 他人と恋人として交際するのがこわい relationship 46.2 恋愛に興味がない No interest in romantic relationship Being involved romantically with 恋愛が面倒 someone is troublesome 過去に恋愛で失敗した Had a failed relationship before 友人と過ごす時間を大切にしたい Want to value the time with friends 自分の趣味に力を入れたい Want to focus on own hobbies 仕事や勉強に力を入れたい Want to focus on work and study 0.0% 10.0% 20.0% However, about 90% of unmarried people say that they will get married eventually. 30.0% 40.0% 50.0% 87.5 Sample: Unmarried people aged between 20 and 30 (multiple answers), unmarried people aged between 18 and 34 Source: Developed based on FY2014 Survey Report on Marriage and Family Formation issued by the Cabinet Office and the 15th Annual Population and Social Security Surveys conducted by the National Institute of Population and Social Security Research 15

16 3. Growth Strategy 1. Marriage Hunting Business (1) Enhance IBJ s strengths We cannot respond to market needs just by providing opportunities (matchmaking) we must also provide matchmakers unsolicited support. Percentage of people who got married with use of marriage-hunting services 12.5% 結婚相談所 Marriage servicer 25.3 Marriage-hunting 婚活サイト アプリ website/app Marriage-hunting 婚活パーティー イベント party Introduction by an 知人の紹介 acquaintance Participation in 合コンに参加 matchmaking parties Search by 習い事 hobby/interest % * Respondents: 50,000 males and females aged sampled in Japan * Marriage-hunting services: Four services--marriage servicer, marriage-hunting website/app, koikatsu-encounter looking for matching website/app, and marriage-hunting party/event services * Marriage hunting: Conscious behavior in a broad sense toward the goal of getting married. Those used or performed in the past (before getting married). Source: 2017 Status of Marriage Hunting (Recruit Bridal Souken) 16

17 3. Growth Strategy 1. Marriage Hunting Business (1) Enhance IBJ s strengths One of IBJ s strengths is to be able to provide support until engagement with its system and people. 17

18 3. Growth Strategy 1. Marriage Hunting Business (1) Enhance IBJ s strengths Strengths of the system The largest membership network for matchmaking in Japan (Approx. 60,000 members and 1,620 affiliate companies) A system to provide total support from becoming a new member to getting married Actions to further enhance strengths Increase the number of affiliates and members Improve the system UI and UX Balance the number of male and female members to increase marriages 18

19 3. Growth Strategy 1. Marriage Hunting Business (1) Enhance IBJ s strengths Strength in people The method of connecting people for marriage cultivated through a 17-year marriage support business Matchmaking network consisting of 1,620 companies and 3,000 matchmakers Actions to further enhance strengths Disseminate the method to connect people for marriage from our own marriage servicers to affiliates (IBJ method school) Thorough implementation of a fee system focusing on providing support 19

20 3. Growth Strategy 1. Marriage-hunting (2) Expand the membership base IBJ produces 7,000 of the marriages in Japan. 6,000 couples 6,000 5,000 4,000 3,000 3,417couples 2018 (Estimate) 2,000 1,

21 3. Growth Strategy 1. Marriage-hunting (2) Expand the membership base Increasing needs for marriage-hunting servicers, and the number of users is on the rise Percentage of people who got married with the help of marriage-hunting services 2.4 times in 3 years * Respondents: 50,000 males and females aged sampled in Japan * Marriage-hunting services: Four services--marriage servicer, marriage-hunting website/app, koikatsu-encounter looking for matching website/app, and marriage-hunting party/event services * Percentage of people who got married with the help of marriage-hunting services Source: 2017 Status of Marriage Hunting (Recruit Bridal Souken) 21

22 3. Growth Strategy 1. Marriage Hunting Business (1) Enhance IBJ s strengths Collaboration with Kamome (travel business) increased chances to offer people opportunities to meet new people Cebu island tour Marriage-hunting bus tour December 1 3(3Days tour) January 20/27(1day bus tour) 22

23 3. Growth Strategy 1. Marriage-hunting (2) Expand the membership base Soften the image of marriage hunting to further increase user numbers. Non-marriage-hunting community having hobbies as common interests Matchmaking application using personality assessments as a hook Sense of reassurance provided by the involvement of local municipalities. Events in collaboration with sport teams and comedy 23

24 3. 成長戦略 1.婚活事業 The marriage-hunting industry is further attracting interest and funds with major corporations entry and decisions by institutional investors/financial funds to invest in sustainable corporations (ESG investment*). Entry by major corporations Marriage-hunting industry 24

25 3 Growth Strategy 1. Marriage Hunting Business (1) Enhance IBJ s strengths (2) Expand the membership base 2. Life Design Business 25

26 3. Growth Strategy 2. Life Design Business Wedding: Wind and Sun, Inc. Travel: Kamome Co., Ltd. Insurance: IBJ Life design support IBJ membership base contributed to the group companies businesses. Wedding Married couples About 4,700 couples per year The largest membership network for matchmaking in Japan Approx. 60,000 members Target 1,000 Number of referrals to wedding venues 893 couples couples per year Insurance Target 2017 Number of couples signing insurance policy 101 couples *Started in April Travel 500 couples per year Target 500 Number of couples signing agreement for honeymoon travel 42 couples couples per year 26

27 3. Growth Strategy 2. Life Design Business Become a total life design company by leveraging our membership base along with our know-how to provide support. Vacation Business Domain Wedding Domains to expand Job Changes Childbirth, Childcare The elderly 2018 Net sales 10 billion yen Beauty, Brush up Marriage hunting Proposal, Ring Marriage Moving, Insurance Honeymoo n 27

28 4 Reference Materials 28

29 4. Reference Materials : Net Sales Calculation Method Unit Price in Net sales = x Quantity Each Business Community (Operation of Bridal Net) Revenue source = Monthly membership fee of 3,000 yen Number of people charged monthly membership fee Event (Operation of PARTY PARTY and Rush ) Revenue source = Average participating fee of 4,000yen Number of participants at events Agent (Operation of own marriage servicers IBJ Members ) Revenue source = * Success fee is 200,000 yen Annualized membership fee of about 180, ,000 yen Number of members Affiliate and Media Service (System services for affiliates and support for launches) Revenue source = Marriage service registration fee of 1.5 million yen and Monthly system charges of about 20,000 yen * Package for corporate sales is 3 million yen or more Number of affiliates 29

30 4. Reference Materials : Dividends Dividends have increased for 5 consecutive fiscal years. Payout ratio remained over 30% yen Payout ratio 33.5% yen Payout ratio 38.5% 4.17yen Payout ratio 38.4% 5.67yen Payout ratio 37.2% 6.00yen Payout ratio 30.1% 2 1 December 2013 December 2014 December 2015 December December 2017 平成 25 年 12 月期平成 26 年 12 月期平成 27 年 12 月期平成 28 年 12 月期平成 29 年 12 月期 * Stock split is taken into account. 30

31 4. Reference Materials : Shareholder benefits Shareholders holding more company s shares Customized QUO cards Free service coupons/discount tickets Shareholders holding the company s shares for a longer period 1,000-yen flower gift coupon 30

32 4. Reference Materials : Consolidated Balance Sheets (million yen) As of end of December As of end of December 2017 Increase/ decrease Current Assets 3,283 4,484 +1,201 Cash and Deposits 2,462 3,607 +1,144 Non-current Assets Property 1,607 1, Plant and Equipment / Intangible Assets Investments and Other Assets Total Assets 4,890 6,220 +1,329 Current Liabilities 1,795 2, Non-current Liabilities 1,088 1, Total Liabilities 2,883 3, Capital Stock / Capital Surplus 676 1, Retained Earnings 1,700 2, Treasury Stock Valuation and Translation Adjustments Stock Acquisition Rights Total Net Assets 2,006 3,171 +1,164 Total Liabilities and Net Assets 4,890 6,220 +1,329 Factors in change expansion of a sales area and WEB site renewal Posting on net income 32

33 4. Reference Materials : Cash Flows As of end of December (Consolidated) As of end of December 2017 (Consolidated) (million yen) Topics Cash Flow from Operating Activities 993 1,262 Cash Flow from Investing Activities Posting of income before taxes acquisition of intangible assets Cash Flow from Financing Activities Increase/Decrease in Cash and Cash Equivalents 1,033 1,144 Cash and Cash Equivalents at Beginning of Period 1,428 2,462 Cash and Cash Equivalents at End of Period 2,462 3,607 33

34 4. Reference Materials : Company Profile Management philosophy is Bringing happiness to all the people who share a connection. Company name Representatives Location of Headquarters IBJ, Inc. Shigeru Ishizaka, CEO / Tetsuhiro Nakamoto, COO 12th floor, Shinjuku First West, Nishi-Shinjuku, Shinjuku-ku, Tokyo Established in February 2006 Paid-in Capital 570,569,750 yen *As of end of December 2017 Fiscal Year End December 31 Businesses Number of Employees (consolidated) Number of Halls Community Business ( Kon-Katsu or marriage-hunting websites), Event Business (parties and matchmaking), Marriage Consulting Agencies Business (Own marriage service), Affiliate & Media Service Business (Marriage Consultation Network), FC Business and Life Design Business 445 people *As of end of December halls (including FC halls) Sapporo/Sendai/Shinjuku (2 halls), Ginza/Yurakucho/Yaesu/Ebisu (2 halls)/yokohama/ Omiya/Ikebukuro/Shibuya/Chiba/Gunma/Ibaraki/Kanazawa/Niigata/Gifu/Hamamatsu/ Nagoya(3halls)/Osaka/Nanba/Shinsaibashi/Kyoto/Shiga/Kobe/Mie(2halls)/Okayama/ Hakata/Hiroshima/Tenjin/Kumamoto/Miyazaki/Kitakyusyu/Kagoshima/Taiwan *As of end of December

35 4. Reference Materials : Company History Establishes IBJ Inc. Begins-marriage Consulting Federation business. Launches the marriage meeting coordination system IBJS. Opens new directly managed halls in Ginza and Shinjuku and launches the Agent business. Launches full-scale services integrating the Internet and real life. Nippon Bridal Community Inc. (NBC) becomes a subsidiary. Begins restaurant customer referral business with matchmaking party coordination website called Rush. SIer, Inc. becomes a subsidiary Completes full renovation of the marriage meeting coordination system IBJS (ver. 2.0) Completes full renewal of Bridal Net Is listed on the JASDAQ market of the Tokyo Stock Exchange Completes customer consolidated database, the IBJ Account. The registered members of the Japan Marriage Consulting Federation exceeds 50,000. Establishes joint venture company IBT in Taiwan. *Joint venture with Sunfun Info Co., Ltd. Completes full renovation of the marriage meeting coordination system IBJS (ver. 3.0). Renovates directly-managed lounge in Shinjuku extensively. Number of marriage-hunting members exceeds 300,000. Changes listed exchange to the Second Section of the Tokyo Stock Exchange. Marks the 15th anniversary of the founding. Changes listed exchange to the First Section of the Tokyo Stock Exchange. Renews the matchmaking party coordination website called Rush. Is chosen as the official main sponsor of the first Japan-wide tour of the foreign artist Chris Hart. Number of marriage-hunting members exceeds 400,000. Wins Porter Prize-2015 (awarded to a company maintaining high profitability by implementing unique and competent strategies). Establishes Kon-Katsu Labo Co., Ltd. (a subsidiary). Launches Matching Labo, a compatibility testing tool based on psychology and statistics. Launches the marriage meeting coordination system IBJS (ver. 3.5). Acquires Wind and Sun Inc. with the aim of entering the wedding-related business. Acquires Kamome Co., Ltd. with the aim of entering the travel business. Number of marriage-hunting members exceeds 500, Established IBJ Life Design Support Co., Ltd. (a joint company with Sony Life Insurance Co., Ltd.) 35

36 Contact: IBJ, Inc. (IBJ, Inc.) 12th floor, Shinjuku First West, Nishi-Shinjuku, Shinjuku-ku, Tokyo TEL: FAX: Mail: These presentation materials are prepared as a reference for investors to give them an understanding of the current status of IBJ, Inc. The information contained in this presentation is based on a generally accepted understanding of economic and social conditions as of February 2018 and certain assumptions that are considered rational, and may be altered without notice for reasons such as changes in the business environment. 36