1st-Quarter Financial Report for the Fiscal Year Ending December 31, 2018

Transcription

1 1st-Quarter Financial Report for the Fiscal Year Ending December 31, 2018 May 11, 2018 TSE 1st Section:

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

3 1. Financial Results Summary 3

4 1. Financial Results Summary 3% of Couples Married By 2022, make the couples married through IBJ account for 3% of couples married in Japan. 20,000 18, ,000 couples 16,000 14,000 12,000 10,000 8, % is expected to be achieved (About 6,000 couples) 6,000 4,000 2,

5 1.Financial Results Summary the number of registered member and marriage meetings the number of registered member and (members) 65,000 marriage meetings is rising trend marriage meetings registered member 24,246 60,000 14,316 59,165 55,000 50,000 49,979 45,000 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 Copyright IBJ,Inc. All rights reserved. 5

6 1. Financial Results Summary Consolidated Results (Million yen) Q 1Q Percentage change Net sales 2,343 2, % Operating income % Ordinary income % Net Income % 6

7 1. Financial Results Summary (Million yen) Performance Highlights Investment of personnel contributing to sales and store openings Net sales +4.9 % YoY 2,457 Operating income -4.2% YoY (Million yen) 327 Marriage Hunting Business Net sales: 1,414 million yen YoY: +6.1% Segment income: 584 million yen YoY: -2.1% 2, Life Design Business Net sales: 1,042 million yen Segment income: +33 million yen (before goodwill amortization) Q Q (consolidated) (consolidated) Q (consolidated) Q (consolidated) 7

8 1. Financial Results Summary SG&A Expenses (Million yen) 1,120 1,011 Other SG&A Expenses Other SG&A Expenses +9% business tax +144% Increase in software etc. Increase stated capital by exercising stock option business tax Rent Advertising Expenses Promotional Expenses Rent +19% Advertising Expenses Promotional Expenses +12% New store opened in Ueno and Nagoya and Namba Increase in advertising expenses contributing to sales Personnel Expenses YonY +10.8% Personnel Expenses +8% Increase number of employeesyony +56 FY2017 1Q (Consolidated) Copyright IBJ,Inc. All rights reserved. FY2018 1Q(Consolidated) 8

9 2. Summary by Business Division 9

10 2. Summary by Business Division Community Business Operation of the marriage hunting website Bridal Net Started a private marriage-concierge system. (Million yen) Net sales (excluding internal sales) Number of people charged a monthly membership fee (as of quarter-end) (10,000 people) Jan 14,100 The number of members bottomed out and started to increase Feb 13,300 Mar 13, Point Q Q Q Q Q Q (outlook) Individually provided advice by private concierges helps to keep members from unsubscribing from the membership. 10

11 2. Summary by Business Division Event Business Operation of PARTY PARTY marriage-hunting party and Rush matchmaking party arrangement service Showing an uptrend while there is seasonality. Expect to see growth in 2Q which includes the Golden Week holidays. (Million yen) 650 Net sales (excluding internal sales) Number of participants (10,000 people) Point Q Q Q Q Q Q (outlook) Store opening in Namba, Ueno (Marui), Dai Nagoya PARTY PARTY app release 11

12 2. Summary by Business Division Marriage Consulting Agencies Business (Million yen) Operation of own marriage servicers IBJ Members A significant increase in the number of people married, reaching Net sales (excluding internal sales) Number of people married Point Q Q Q Q Q Q (outlook) Fostering of manpower by a department dedicated for human resources development; ensuring thorough member management. 12

13 2. Summary by Business Division Affiliate and Media Service Business System services for affiliates throughout Japan and support for independent launches Number of affiliates stood at 1,691. (Million yen) Net sales (excluding internal sales) Number of affiliates 1,560companies 1,469companies 1,381companies ,629companies (YoY+22.4%) 1,691companies Point Q Q Q Q Q Q (outlook) Total redesign of IBJ s marriage meeting system app. 13

14 3. Growth Strategy 14

15 3. Growth Strategy Marriage Intention of Unmarried People A surge in the number of young people who find romantic relationships to be troublesome but wish to get married. The marriage hunting needs of unmarried people is in an upward trend. Marriage intention of unmarried people Scared of being in a romantic relationship No interest in romantic relationship Being involved romantically with someone is troublesome Had a failed romantic relationship before Want to value the time with friends 46.2% Want to focus on own hobbies Want to focus on work and study 0.0% 10.0% 20.0% 30.0% About 90% of unmarried people answered that 40.0% they will get married eventually. Sample: Unmarried people in their 20s and 30s (multiple answers), unmarried people aged between 18 and 34 Source: Prepared based on the 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 50.0% 87.5% 15

16 3. Growth Strategy Market Size Potential customer development progresses due to aggressive entry of major corporations. Dating apps Potential market size 1 trillion yen 66 billion yen Increase in potential customers mainly in their 20 s 16

17 3. Growth Strategy ESG Investment Entry of major corporations Invested by institutional investors and financial funds (ESG investment*) Entry of major corporations Marriagehunting industry BANK * ESG investment is a method of selecting investee companies based on their initiatives in three areas: Environment (E), Social (S) and Governance (G). 17

18 3. Growth Strategy Systems and People One of IBJ s strengths is to be able to provide support until engagement with its: Systems system People human 18

19 3. Growth Strategy Strength of the systems Strength of the systems The largest membership network for matchmaking in Japan with approx. 60,000 members and 1,691 affiliate companies and more PARTY PARTY app release Kansai Office Headquarters Tokai Office Improve the system UI and UX What kind of system is it? Provide full support from joining to marriage With the system, you can: Search for persons to meet Register them as favorites Request an arrangedmarriage meeting Contact a matchmaker 19

20 3. Growth Strategy Strength in people Strength in people The method of connecting people for marriage cultivated through a 17-year marriage support business and more Disseminate the method to connect people for marriage from our own marriage service to affiliates (IBJ method school) Thorough implementation of a fee system focusing on providing support Matchmaker network of 1,691 companies and 3,000 matchmakers Strengthening recruitment and development (newly established a department dedicated for human resources development) 20

21 3. Growth Strategy Domains to expand Honeymoon Childbirth Marriage proposal Ring Insurance Home Child-raising Marriage Senior community Marriage hunting Second life (life after retiring) Single Job changes Business Domain Vacation Insurance Selfimprovement Domains to expand 21

22 3. Growth Strategy Life Design Business Wind and Sun Inc. (wedding) Kamome Co., Ltd. (travel) IBJ Life Design Support Co., Ltd. (insurance) IBJ membership base contributes to the group company businesses. Wedding Target Married couples About 6,000 couples per year Number of referrals to wedding venues 276couples * FY couples Insurance 1,000 couples per year Target Number of members registered with IBJ s marriage meeting system About 60,000 members Number of couples signing an insurance policy 92couples * FY couples Travel 500 couples per year Target Number of couples signing an agreement for honeymoon travel 58couples * FY couples 500 couples per year 22

23 3. Growth Strategy Introduce to marriagehunting parties Invest in Headwaters Co., Ltd. Point 1 Has proven performance in implementing robot app development. Point 2 Introduce to marriagehunting parties Take on a wide range of operations such as attending marriage meetings 23

24 3. Growth Strategy Isolation of the elderly people Japan has a serious issue of isolation of elderly people (%) 18.0 State of social isolation (comparison of OECD countries) Netherlands U.S. Germany South Korea France Mexico Japan * The ratio of people who respond that do not socialize at all and rarely socialize with friends, colleagues at workplace and people in other social organizations (e.g., churches, sports club, culture schools). * World Values Survey Source: Society at a Glance OECD Social Indicators-2005 Edition 24

25 3. Growth Strategy Senior Services Provide senior services different from previously provided ones Daily leisure and hobbies of elderly people Sports activity Reading Shopping 20.1% 23.2% 31.3% Travel News Paper/ Magazine 41.2% 55.0% TV/Radio 83.2% Sample: 6,000 males and females aged 60 or older nationwide. Source: Prepared based on Results of awareness survey on the daily life of the elderly, 2014 by the Cabinet Office Measures against the isolation, looking ahead 10 years from now 25

26 3. Growth Strategy Annual changes in international marriages International marriages account for about 5% of the total marriages in Japan Annual changes in the number of marriages by nationality of couples Total marriages in Japan % 5.3% 5.9% 6.1% Either husband or wife is non-japanese 4.7% (10,000 couples) Source: Prepared based on Annual Report of Vital Statistics Key Statistics Table Annual Trends in Marriages by Nationality of Husband and Wife by the Ministry of Health, Labour and Welfare Provide opportunities to meet people of other races or nationalities 26

27 3. Growth Strategy Ratio of international marriages by country Ratio of international marriages by country Japanese man and non- Japanese woman Japanese woman and non- Japanese man 1st China 38.7% 2nd The Philippines 20.7% 3rd South Korea 15.3% 1st South Korea 25.4% 2nd U.S. 18.3% 3rd China 12.1% Source: Special report on vital statistics of 2016.Overview of "statistics on marriage" Provide international marriage services focusing on Japanese and Korean couples. 27

28 4. Reference Materials 28

29 4. Reference Materials Consolidated Balance Sheets As of end of December 2017 As of end of March 2018 Increase/ decrease Factors in change (Million yen) Current Assets 4,485 3, Acquisition of treasury stock Cash and Deposits 3,607 3, Non-current Assets 1,736 1, Property, Plant and Equipment/ Intangible Assets Investments and Other Assets 970 1, New store opened in Ueno, Nagoya,Namba Total Assets 6,220 5, Current Liabilities 2,032 1, Non-current Liabilities 1, Total Liabilities 3,049 2, Capital Stock/Capital Surplus 1,141 1, Retained Earnings 2,519 2, Increase stated capital by exercising stock option Treasury Stock ±0 Valuation and Translation Adjustments Stock Acquisition Rights Total Net Assets 3,171 3, Total Liabilities and Net Assets 6,220 5,

30 4. Reference Materials Business model Sales = Unit Price in Each Business x Quantity Community (Operation of Bridal Net ) Revenue source = Monthly membership fee of 3,000 yen Number of people charged a monthly membership fee Event (Operation of PARTY PARTY and Rush ) Revenue source = Participating fee (average) of 4,000 yen Number of participants at events Agent (Operation of own marriage servicers IBJ Members ) Revenue source = Membership fee (annualized) of about 180, ,000 yen Number of members * Success fee is 200,000 yen Affiliate and Media Service (System services for affiliates and support for launches) Revenue source = Marriage service registration fee of 1.5 million yen and system charges of about 20,000 yen Number of affiliates * Package for corporate sales is 3 million yen or more 30

31 4. Reference Materials Shareholder benefits Shareholder benefits as of the end of June 2018 Shareholders holding more company s shares Customized QUO cards Free service coupons/discount tickets Shareholder benefits as of the end of December 2018 Shareholders holding more company s shares Marriage agencies that are members of the Japan Marriage Consulting Federation (with some exceptions) 30,000 yen discount ticket, 1 ticket Shareholders holding the company s shares for a longer period Travel coupons that can be used at Kamome Co., Ltd., the Company s subsidiary operating the travel business 100,000 yen x 10 coupons (by lot) * Winners will receive the prize with no prior announcement. 31

32 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 February 2006 Paid-in Capital 608,720,750 yen *As of end of March 2018 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 443 *As of end of March (including FC halls) Sapporo, Sendai, Shinjuku (2 halls), Ginza, Yurakucho, Yaesu, Ueno, Ebisu (2 halls), Yokohama, Omiya, Ikebukuro, Shibuya, Chiba, Gunma, Kanazawa, Niigata, Gifu, Hamamatsu, Nagoya (3 halls), Dai Nagoya, Mie(2 halls), Osaka, Namba, Shinsaibashi, Kyoto, Kobe, Hakata, Hiroshima, Tenjin, Kumamoto, Miyazaki, Kagoshima, Tochigi,Ibaraki,Shiga,Okayama,Taiwan *As of end of March

33 4. Reference Materials Company History Bridal Net Inc. is established. Formally launches Japan s first Internet marriage information service Bridal Net. Becomes a wholly-owned subsidiary of Yahoo Japan Corporation and creates marriage hunting service for Yahoo! JAPAN. Provides benefit program services to the Federation of National Public Service Personnel Mutual Aid Associations (KKR). Becomes independent from Yahoo Japan Corporation through an MBO executed by the current executives. Establishes IBJ, Inc. and begins the Marriage Consulting Federation business. Enters second foundation phase. 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. Completes full renovation of Bridal Net, transforming it into a marriage hunting site. Grows into Japan s largest social-marriage-hunting network. Listed on the JASDAQ (Standard) market of the Osaka Securities Exchange (now the Tokyo Stock Exchange) Changes listed exchange to the Second Section of the Tokyo Stock Exchange Changes listed exchange to the First Section of the Tokyo Stock Exchange Establishes Konkatsu Souken Inc. (a subsidiary). Consolidates Wind and Sun, Inc. Consolidates Kamome Co., Ltd. Establishes IBJ Life Design Support Inc. (a joint company with Sony Life Insurance Co., Ltd.) Establishes Kansai Office and Tokai Office. Releases PARTY PARTY app. Totally redesigns IBJ s marriage meeting system app. 33

34 Contact: IBJ, Inc. (IBJ, Inc.) 12th floor, Shinjuku First West, Nishi-Shinjuku, Shinjuku-ku, Tokyo 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 May 2018 and certain assumptions that are considered rational, and may be altered without notice for reasons such as changes in the business environment. 34