Financial Results for the 3rd Quarter of Fiscal Year ... · Business card production. ... Reference...
Transcript of Financial Results for the 3rd Quarter of Fiscal Year ... · Business card production. ... Reference...
© LANCERS, Inc. All Rights Reserved
ランサーズ株式会社(東証マザーズ:4484)2020年2月10日
Financial Results
for the 3rd Quarter of Fiscal Year Ending March 31, 2021
© LANCERS, Inc. All Rights Reserved
LANCERS, INC. (TSEMothers:4484)
February 10, 2021
© LANCERS, Inc. All Rights Reserved
Company profile1
2© LANCERS, Inc. All Rights Reserved
Company profile
Empowerment of Individuals
We will create a world where
anyone can live their own workstyle, with the power oftechnology
*) Employees include full-time employees (excluding those who are seconded to outside the Group, but including those seconded to the company within the Group) and temporary workers(part-time workers)
Company nameLANCERS, INC.
Business contents
Platform business
Founder and CEOYosuke Akiyoshi
Establishment
April, 2008
Staff
Approx. 200 employees*
3© LANCERS, Inc. All Rights Reserved
0
10
20
30
40
50
60
70
80
90
100
FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020
Changes in Lancers’ Gross Merchandise Value
CAGR
61+ %
Estimate
(Unit: 100 million JPY)
4© LANCERS, Inc. All Rights Reserved
Maximum use of self-skills
Multiple growth andreward opportunities
Work styles that are not restricted by time and place
Fluctuating labour costs
Acquiring know-howexternally
Speedy agreement of contracts
Freelancers(individuals)
Clients (companies)
Service Overview
We operate an ordering platform that matches individuals and companies, which is completed online, and provide excellent human resources to companies and new work styles to individuals regardless of time and where they live.
▲▲▲ ▲
5© LANCERS, Inc. All Rights Reserved
Values Provided by Our Services
Freelancers in each region receive orders from clients in Tokyo.
The reversal phenomenon of over-concentration for work in Tokyo is accelerating.
Local freelancers
Approx. %**75Clients in Tokyo
Approx. %*60
*) Percentage of Gross Merchandise Value of clients located in Tokyo among the Gross Merchandise Value of freelancers (October-December 2020)**) Percentage of Gross Merchandise Value of freelancers located outside of Tokyo (October-December 2020)
6© LANCERS, Inc. All Rights Reserved
Business Models / Features
Online staffing* (OS) that provides a job offer to specific individual is our main feature, which contributes 90% of Gross Merchandise Value
Examples of jobs
Unit price
Distribution ratio
Business models
約 倍4
Online Staffing (OS) Crowdsourcing (CS)
Development, designs, office work
High unit price
90%
Tasks, data entry
Low unit price
10%
Clients or our company Freelander (specific)
2A job offer to a specific
freelancer (offer)
3Start
the project
4Inspection
1Request for workafter selecting a
request destination(order)
Clients Freelancers (unspecified number)
2Job recruitment
(offer)
3Selling of
deliverables
4Choose among
The deliverables
1Job recruitment
(order)
*)Online staffing (OS) is an abbreviation for online staffing platform and will be referred to as online staffing and OS hereafter.
Approx. x 4
7© LANCERS, Inc. All Rights Reserved
Service Contents
Offering a large number of occupations that contribute to DX promotion focusing of development and operation and productivity improvement
*)The offer price is the request price of the content of typical work, and the detailed request price is as followshttps://www.lancers.jp/help/beginner/lancer/examples
Web system development/programming¥3,500-¥7,000/h *
iPhone・iPad appdevelopment¥300,000-¥2,000,000 *
Homepage creation¥50,000-¥400,000/1-10 pages *
CMS editing/WordPress creation/introduction¥50,000-¥200,000/1-10 pages *
Development/operation Creative production Back office
Logo designs¥20,000-¥85,000/piece *
Business card production¥10,000-¥50,000 *
Video creation/production/video material¥50,000-¥500,000/piece*
Image processing/photo editing/image material¥100-¥5,000/piece *
Business/strategy consulting¥150,000-¥300,000 *
Web/IT consultation¥100,000-¥200,000 *
PowerPoint creation¥30,000-¥100,000 (10pages) *Excel editing¥20,000-¥30,000 *
Article writing/blog articles/experiences¥0.5-¥5/letter *DM/email-magazine/production¥20,000-¥40,000 *
Data collection/entry/Listing¥1,000-¥10,000/100 tasks *
Monitoring/questionnaires/questions¥10-¥3,000/1 questionnaire*English translation
¥5.0-¥8.0 (per word) *
Chinese translation¥2.0-¥6.0 (per letter) *
Others
System development/operation
WEB production
Designing
Photos/videos/narration
Consultation
Office work/professional
Translation/interpreting
Article writing
Tasks/temporary work
Online staffing (OS) Crowdsourcing (CS)
© LANCERS, Inc. All Rights Reserved
Market trends / Strategic policies2
9© LANCERS, Inc. All Rights Reserved
Strategic Policies
Market changes have expanded SMB DX operational needs and we updated strategic priorities.
In the medium term, we will strengthen the entire DX support area and large companies but will focus on DX operation and SMB for short term
Large companies
Target
Entire DX
Needs
Continuous use
Provided values
▲▲
SMB
▲▲
DX operationsSmall to medium businesses
Single use
▲▲
10© LANCERS, Inc. All Rights Reserved
Market Changes
Due to the COVID-19 pandemic, DX initiatives that have been promoted by each company have dramatically accelerated.
Encouraged remote work has also increased the number registry for DX human resources
Impact of COVID-19 pandemic on DX promotion *
*) Reference from Dentsu Digital Inc “Digital Transformation Survey of Companies in Japan (2020 Edition)”
Side business/multiple work registrants who can
work online as DX human resources*
*)Reference from “Survey on the service usage of side businesses and multiple companies when encouraged to
work from home” conducted by our group from July 22 to August 2, 2020.
(n=1,490) ※Question on the side business / multiple business registered with "Lancers" about when they started the
side business / multiple business
No change
25%
Accelerated
50%
Suspended/decelerated
25%Before Feb 2020
69%
After Feb 2020
31%
(n=1,474) ※Calculated by indexing the degree of promotion for each area of initiatives
11© LANCERS, Inc. All Rights Reserved
Needs Target
Approximately 90% of work distributed by Lancers is related to DX promotion,
and most of the clients are SMBs
OthersA p p r o x . 1 0 %
DX operationA p p r o x . 3 0 %
DX introduction A p p r o x . 6 0 %
DXpromotionApprox.90%
*)Percentage of Gross Merchandise Value of our group by other details
Large companiesA p p r o x . 1 0 %
SMBA p p r o x . 9 0 %
*)Percentage of Gross Merchandise Value of our group by size of client companies
Percentage by needs of distributed work* Percentage of clients by size*
12© LANCERS, Inc. All Rights Reserved
Number of client companies used for DX operation
Changes in Lancers
Over the past year, both the number of companies using Lancers for DX operation and Gross
Merchandise Value have increased
GMV by DX operation
3Q 4Q 1Q 2Q 3Q
+ 24% + 35%
2021/32020/3
3Q 4Q 1Q 2Q 3Q
2021/32020/3
13© LANCERS, Inc. All Rights Reserved
Lancers’ Strengths on SMB×DX Operation
Speedy matching with reliable DX personnel online is available. DX operation support for SMB is also available, which can be completed online. SMB x DX operation is a huge market
Strategy formulation DX introduction andBuild a system
DX Operation andmaintenance
Gen
eralservicep
rovid
ers
Large Compa
nies
SMB
Strategic consultation A g e n c yIT consultation
Approx.12
Consultation
Engineering
Approx.13Designers
Approx. 2Marketers
Quick and Online
matching
Abundant human resources
Million people
Million people
Million people
© LANCERS, Inc. All Rights Reserved
Results of 3rd quarter of the fiscal year ending March 20213
15© LANCERS, Inc. All Rights Reserved
1,180 1,170 1,176 1,308 1,472
370 413 280341
375566 617
587546
5492,120
2,201 2,063
2,222
2,414
3Q 4Q 1Q 2Q 3Q
Marketplace business
Managed service business
Tech agent business
Others
Summary of Financial Results
Gross Merchandise Value
6,700million JPY +13%
Company-wide(3Q cumulative)
NetSales 2,787million JPY +14%
Grossprofit 1,383million JPY +7%
Operatingincome △14 million JPY
Year-on-year
Year-on-year
Year-on-yea
Year-on-yea
+156million
JPY
Trends in GMV by segment
*)It shows the business division of our group based on management accounting standards
Company-wide growth is steady due to increased sales and profits. However, since the impact of COVID-19 pandemic is different for each business, it is disclosed by business segment*. Marketplace business accelerates growth despite negative impact
(Unit: Million JPY)
+25%YoY
2021/32020/3
16© LANCERS, Inc. All Rights Reserved
Financial Results in 3Q of FY2020 (Up to 3Q)
While continuing to be negatively affected by COVID-19 pandemic, steady growth within the range of forecast based on the Gross Merchandise Value and gross profit was recorded, which are important indicators.
(Unit: Million JPY)
FY2020(up to 3Q)
FY2019 (up to 3Q) (year on year)
FY2020(Full-year )(August forecast)
(Reference)Progress in the
previous term**
Actual Actual % change Forecast % Progress % Progress
Gross Merchandise Value* 6,700 5,913 +13.3%9,050~
9,75074.0%~
68.7%72.9%
Net sales 2,787 2,443 +14.1%3,950~
4,30070.6%~
64.8%70.3%
Gross profit 1,383 1,297 +6.6%1,900~
2,10072.8%~
65.9%72.3%
Selling,general and administrative expenses(SG&A )
1,397 1,467 △4.8% 1,890~2,050
73.9%~68.2%
69.8%
Operating income /loss △14 △170 +156 10~50 - -
Ordinary income /loss △6 △191 +184 10~50 - -
Net income /loss △10 △204 +194 0~40 - -
*)It is based on in-house management materials and is not an audited number. **)Progress of cumulative 3Q for the fiscal year ending March 2020 against the results for the fiscal year ending March 2020
17© LANCERS, Inc. All Rights Reserved
Our Serviced We Offer from Our Business Segments
Disclosed by business segments* due to the impact of the pandemic that differs for each business.
Reported market changes and strategic updates by each segment
Business models
Directly used by
companies online
Contract management for
projects
by our staff
IT human resource
support provided by our
staff
Major services Major clients
SMB
SMB
Large companies
SMB
Large companies
Major categories
Development/operation
Creative production
Back office
Creative production
Back office
Development/operation
Creative production
Take rate*
Approx.18%-19%
Approx. 35%-38%
Approx. 14%-15%
*)Take rate level for the previous year
Our group’s business segments
*)It shows the business division of our group based on management accounting standards.
Managed service business
Tech agent business
Marketplace business
18© LANCERS, Inc. All Rights Reserved
Managed service business
Tech agent business
Summary by Segment*
Needs for DX increased due to the pandemic, which accelerated growth in marketplace business.
Businesses affected by the contraction of economic activity will focus on changing the business structure and acquiring new clients
Gross Merchandise Value
1,472million JPY
Year-on-year
+25%
• Growth rate accelerated rapidly due to the increase
of DX needs
• Continue to expand the number of new clients
• Improved retention rate for existing clients
Status by segment (3Q only)
Gross Merchandise Value
375million JPY
Year-on-year
+2%
Gross Merchandise Value
549million JPY
Year-on-year
△3%
Marketplace business
• Impact on contract services due to reduced
economic activity
• Converting to stock type due to expansion of flat-
rate services
•Acquiring new contracts/clients has been affected
by COVID-19 pandemic
•Showing some recovery trends, but still a little more
to get back to the pre-pandemic level
*)It indicates the business division of our group based on management accounting standards.
19© LANCERS, Inc. All Rights Reserved
The number of newly registered clients continues to increase*
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
Marketplace Business
Needs for DX for SMB increased due to the pandemic, which accelerated growth in marketplace business. The background for this change in the growth rate is the increase in the number of newly registered clients and the improvement in the retention rate of existing clients
Trends in GMV of marketplace business
2021/32019/3 2020/3
+ 25 %
*) The number of newly registered clients is the number of clients registered with “Lancers”
Continuing to increase from June
20© LANCERS, Inc. All Rights Reserved
Managed Service Business
Due to the pandemic, we struggle to expand marketing support for large companies. On the other hand, we continue to expand the flat-rate services for SMB, aiming to transform the business structure from consignment type to highly continuous frat-rate services
Expanding flat-rate package services
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
Flat-rate Contract
2021/32019/3 2020/3
Changes in GMV of managed service business(By service)
+ 2 %Assistant plans*
*)Monthly charges applied when subscribing to a 12-month plan
**)The telemarketing plans indicate 50 calls per month, and the sales support plans indicate a trial plan
Creative plans*
Telemarketing plans**
Sales support plans**
SEO agency plans
NEW
From¥90,000/m
From¥50,000/m
From¥5,000/m
From¥200,000/m
From¥100,000/m
Re
lea
se
d
th
is t
er
m
21© LANCERS, Inc. All Rights Reserved
Tech Agent Business
The number of new contracts from large companies temporarily decreased due to the pandemic. Currently, the number is recovering but there is a time lag before operation. At the current level, 4Q is the lowest. We will continue to focus on increasing the number of new contracts
Changes in GMV of tech agent business
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
2021/32019/3 2020/3
△3 %
新規成約数の推移
緊急事態宣言後コロナ影響
Changes in the number of new contracts
Negative impact of COVID-19 after the state of emergency
© LANCERS, Inc. All Rights Reserved
Full-year financial forecast for the fiscal year ending March 20214
23© LANCERS, Inc. All Rights Reserved
Summary of Earnings Forecast
9,300million JPY +15%
Company-wide (full-year forecast)
3,880million JPY +12%
1,920million JPY +7%
By segment* (4Q non-consolidated forecast)
10million JPY
Year-on-year
Year-on-year
Year-on-year
Year-on-year + 317million JPY
Gross Merchandise Value
¥1,556million
Year-on-year
+33%
Gross Merchandise Value
¥461million
Year-on-year
+11%
Gross Merchandise Value
¥565million
Year-on-year
△8%
Marketplace business
Managed service
business
Tech agent business
*)Business division based on our group’s management accounting standards
Gross Merchandise Value
NetSales
Grossprofit
Operatingincome
In 4Q alone, the growth rate of the marketplace business will accelerate, recording 30% increase in the growth rate year-on –year . Company-wide revised earnings forecast considering the negative impact of COVID-19 pandemic. Year-on-year increase in sales and profits, no changes in full-year surplus
24© LANCERS, Inc. All Rights Reserved
Full-year Earnings Forecast by Segment*
Marketplace business will accelerate growth and segment profit will be expected to be 484 million JPY. We will actively invest in further growth. We reviewed a timing for recovery from the pandemic for the managed service business and tech agent business
(Unit: Million JPY)
4Q FY2020(single quarter) (forecast)
FY2020(Full-year) (current forecast)
Gross Merchandise
Value(YoY)
Net Sales(YoY)
Gross profit(YoY)
Gross Merchandise
Value(YoY)
Net Sales(YoY)
Gross profit(YoY)
Take rate(YoY)
Sales/Segment
profit
Operatingmargin
Marketplace business
1,556+33.0%
286+28.7%
286+28.7%
5,515+20.2%
1,020+15.4%
1,020+15.4%
18.5%△0.8pt 484 47.5%
Managed service business
461+11.8%
402+7.2%
154△0.5%
1,460+1.8%
1,310△0.3%
520△1.4%
35.6%△1.2pt 39 3.0%
Tech agent business565
△8.4%377
△0.2%80
△9.6%2,250
+7.9%1,460
+24.4%330
+4.8%14.7%
△0.4pt 66 4.5%
Others* 14 25 14 75 90 50 - △579 -
Company-wide total2,599
+18.1%1,092
+6.0%536
+7.9%9,300
+14.6%3,880
+11.7%1,920
+7.0%20.6%
△1.5pt 10 0.3%
*) It includes other Gross Merchandise Value amount, sales, gross profit, company-wide expenses (corporate/development, etc), consolidated adjustments, etc in our management accounting standards. Expenses directly linked to business segments are not included because they are considered as business expenses.
*)It shows the business division of our group based on management accounting standards
25© LANCERS, Inc. All Rights Reserved
Full-year Earnings Forecast
Full-year earnings forecast was reviewed by adding up favourable and unfavourable services.
No change in forecast for increased sales and profits compared to previous fiscal year and full-year surplus
(Unit: Million JPY)
FY2019(Previous)
FY2020(Previous forecast)
FY2020(Current forecast)
YoY
Gross Merchandise Value* 8,114 9,050~9,750 9,300 +14.6%
Net sales 3,474 3,950~4,300 3,880 +11.7%
Gross profit 1,794 1,900~2,100 1,920 +7.0%
Selling,general and administrative expenses(SG&A )
2,102 1,890~2,050 1,910 △9.1%
Operating income /loss △307 10~50 10 -
Ordinary income /loss △328 10~50 20 -
Net income /loss △353 0~40 10 -
*)It is based on in-house management materials and is not an audited number.
26© LANCERS, Inc. All Rights Reserved
Estimate of 4Q (Single Quarter) Business Portfolio
We will invest in the highly profitable marketplace business to accelerate the growth rate of YoY to 30% or higher, aiming for maximum growth for the next fiscal year. We aim to recover the growth rate for the other 2 businesses by changing the business structures
Growth potentialGross Merchandise
Value YoY(%)
33%
Marketplace business GMV
1.5 b i l l i o n
J P Y
Accelerated growth by more than
YoY
30%
44%
Managed service business GMV
400 million JPY
Tech agent business GMV
500 millionJPY
ProfitabilitySegment rate of return*
(%)
Aiming to recover from the negative effects of the pandemic
12%
8%
△8%
5%
*)Group management accounting standards. Expenses directly linked to business segments are not included because they are considered as business expenses.*)The shadowed circles are the estimate of each business before the pandemic.
27© LANCERS, Inc. All Rights Reserved
Empowerment of IndividualsLancers empowers individuals by maximizing the possibilities of the internet to help provide ease, freedom,
personality and smiles people.
We contribute to make a better society through providing values and growth opportunities, and by revolutionizing
the work-style and lifestyle of individuals.
Mission
© LANCERS, Inc. All Rights Reserved
APPENDIX
© LANCERS, Inc. All Rights Reserved 29
Service Details1
Performance Details2
Target Market and Mid- to Long-Term Strategies3
Lancers’ Strengths4
Initiatives for Sustainability (SDGs)5
30© LANCERS, Inc. All Rights Reserved
Each Service Models
Service mo
dels
Freelancers
SubcontractingSubmission/completion
Selection of a
freelancer
Proceed/ submission
Dedicated assistantdirectors
OrderSubmission/completion
DelegatingworkersSubmission
OrderSubmission/completion
Proceed/inspection
Submission
Lancers’ employees / freelancers
Recruitmentrequest
Selection interview adjustment
Lancers’ employees / freelancers
Work
Clients Clients Clients Clients
31© LANCERS, Inc. All Rights Reserved
Match
ing
from
1day
toa
week
Differences from Other Human Resource Services
Highly convenient in terms of human resource expertise,
completion online, and Overwhelming speed
Expertise in HR Completion online Overwhelming speed
Providing highly specialized personnel Providing a workflow that is completed online Providing resources immediately when needed
Work in the office
(Employees) Online staffing
Temp staff / contractors Crowd sourcing
Employees Freelancers
Temporarystaffing
Freelancers
Expertise High
Expertise Low
Job request to a freelancer
Escrow (payment in advance)
Evaluation
Inspection of the project
Implementation of the project
Temp staff
Employee
2weeks to
3mo
nth
s
1-
6weeks
Start of applicationD
epen
dab
ility on
a single co
mp
any H
igh
Dep
end
ability o
n a sin
gle com
pan
y Low
© LANCERS, Inc. All Rights Reserved 32
Service Details1
Performance Details2
Target Market and Mid- to Long-Term Strategies3
Lancers’ Strengths4
Initiatives for Sustainability (SDGs)5
33© LANCERS, Inc. All Rights Reserved
Financial Results by Segment* in 3Q of FY2020 ( Up to 3Q)
Plans diverged due to the negative impact of COVID-19 pandemic in the managed service business and tech agent business. As a result, the marketplace business is growing, however over all progress is on the lower end of the range
(Unit: Million JPY)
FY2020(Up to 3Q)
FY2020(Forecast for August)
Gross Merchandise Value (YoY)
Net sales(YoY)
Gross profit(YoY)
Sales/segment
profit
Operating margin
Gross Merchandise
Value progressrate
Net sales progress rate
Gross profit progress rate
Marketplace business3,958
+15.8%733
+10.9%733
+10.9%358 48.9%
73.8%~78.9%
73.9%~79.2%
74.3%~79.7%
Managed service business998
△2.2%907
△3.3%365
△1.7% 6 0.7%58.4%~
66.5%58.2%~
66.5%54.9%~
62.7%
Tech agent business1,684
+14.8%1,082
+36.1%249
+10.6%48 4.5%
66.5%~69.2%
66.3%~69.5%
62.3%~69.2%
Others* 60 64 35 △428 -54.8%~
63.4%55.8%~
62.3%74.2%~
96.3%
Total6,700
+13.3%2,787
+14.1%1,383
+6.6%△14 -
68.7%~74.0%
64.8%~70.6%
65.9%~72.8%
*) It includes other Gross Merchandise Value amount, sales, gross profit, company-wide expenses (corporate/development, etc), consolidated adjustments, etc in our management accounting standards. Expenses directly linked to business
segments are not included because they are considered as business expenses.
*) It shows the business division of our group based on management accounting standards
34© LANCERS, Inc. All Rights Reserved
(Unit: Million JPY)
3Q FY2020(single quarter)
4Q FY2020(single quarter) (forecast)
Gross Merchandise Value (YoY)
Sales(YoY)
Gross profit(YoY)
Sales/segment profit
Operating margin
Gross Merchandise Value (YoY)
Sales(YoY)
Gross profit(YoY)
Marketplace business1,472
+24.7%269
+20.1%269
+20.1%143 53.1%
1,556+33.0%
286+28.7%
286+28.7%
Managed service business375
+1.5%341
+1.5%129
△8.0% 3 1.0%461
+11.8%402
+7.2%154
△0.5%
Tech agent business549
△3.0%359
+12.9%82
△3.8% 13 3.7%565
△8.4%377
△0.2%80
△9.6%
Others* 16 18 8 △159 - 14 25 14
Total2,414
+13.9%988
+10.4%489
+5.6%0 0.1%
2,599+18.1%
1,092+6.0%
536+7.9%
Financial Results by Segment* in 3Q of FY2020 (single quarter)
Currently, the marketplace business is growing rapidly and is expected to further its growth in 4Q. On the other hand, the managed service business and tech agent business are on a recovery trend, but the negative impact continues.
*) It shows the business division of our group based on management accounting standards
*) It includes other Gross Merchandise Value amount, sales, gross profit, company-wide expenses (corporate/development, etc), consolidated adjustments, etc in our management accounting standards. Expenses directly linked to business
segments are not included because they are considered as business expenses.
35© LANCERS, Inc. All Rights Reserved
Performance Trends by Segment*
(Unit: Million JPY)
FY2018 FY2019 FY2020
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4QForecast
Gross Merchandise Value
Marketplace business 960 1,000 1,070 1,067 1,106 1,131 1,180 1,170 1,176 1,308 1,472 1,556
Managed service business 290 271 264 308 260 389 370 413 280 341 375 461
Tech agent business 213 293 327 384 410 489 566 617 587 546 549 565
Others* 0 0 0 0 0 3 3 0 18 25 16 14
Net sales Marketplace business 201 199 212 216 213 222 224 223 220 242 269 286
Managed service business 241 251 246 285 240 361 336 375 254 310 341 402
Tech agent business 94 122 147 186 203 273 318 378 372 351 359 377
Others* 38 15 9 51 10 21 16 54 19 26 18 25
Gross profit Marketplace business 201 199 212 216 213 222 224 223 220 242 269 286
Managed service business 74 87 78 104 89 142 140 155 106 129 129 154
Tech agent business 52 60 53 59 63 76 85 89 89 78 82 80
Others* 28 15 8 34 10 14 13 29 12 14 8 14
Profit by segment
Marketplace business 58 58 72 63 -186 107 102 -34 104 111 143 125
Managed service business 8 41 32 47 23 60 51 13 -10 13 3 33
Tech agent business -24 -21 -16 -22 -4 7 16 18 21 13 13 17
Others* -92 -130 -152 -125 -102 -120 -126 -134 -131 -136 -159 -151*) It includes other Gross Merchandise Value amount, sales, gross profit, company-wide expenses (corporate/development, etc), consolidated adjustments, etc in our management accounting standards. Expenses directly linked to business
segments are not included because they are considered as business expenses.
*)It shows the business division of our group based on management accounting standards
36© LANCERS, Inc. All Rights Reserved
960 1,000 1,070 1,067 1,106 1,131 1,180 1,170 1,176 1,308 1,472
290 271 264 308 260389 370 413 280
341375
213 293327 384 410
489 566 617587
546
549
1,464 1,566
1,663 1,760 1,778
2,015 2,120
2,201 2,063
2,222
2,414
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
Marketplace business
Managed service business
Tech agent business
Others
Trend in Merchandise Value (Consolidated)
It increased by 13% year-on-year despite the impact of COVID-19 pandemic. Marketplace business is recording favourable results
6,700+13%
5,913
2021/32019/3 2020/3
(Unit: Million JPY)
37© LANCERS, Inc. All Rights Reserved
201 199 212 216 213 222 224 223 220 242 269
241 251 246 285 240 361 336 375
254 310
341 94 122 147
186 203
273 318 378
372 351
359
575 589 616
740669
878 895
1,031
867930
988
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
Marketplace business
Managed service business
Tech agent business
Others
Trend in Net sales (Consolidated)
Sales increased by 14% year-on-year despite the impacts from the pandemic
2,787+14%
2,443
2021/32019/3 2020/3
(Unit: Million JPY)
38© LANCERS, Inc. All Rights Reserved
201 199 212 216 213 222 224 223 220 242 269
74 87 78 104 89
142 140 155 106
129 129
52 60 53 59
63
76 85 89
89
78 82
356 362 352
414
377
455 463497
428465
489
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
Marketplace business
Managed service business
Tech agent business
Others
Trend in Gross profit (Consolidated)
Gross profit increased by 7% year-on-year due to the structural changes in services
1,393+7%
1,297
2021/32019/3 2020/3
(Unit: Million JPY)
39© LANCERS, Inc. All Rights Reserved
Trend of SG & A Expenses (Consolidated)
SG & A expenses in previous years have been on a gradual upward trend against the growth of Gross Merchandise Value
151 141 135 132 138 156 154 174 182 182 181
33 49 56 54 36 26 36 76 43 56 56 54 61 55 64
324
49 58
168
51 54 61 49 47 52 49
44
4748
53
57 57 62 117 114 115150
103
120122
161
109 113
127 406 414 416 451
647
400 419
634
444 463
489
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
Others (rent, goodwill, audit fees, etc.)Payment fees and communication costsAdvertising costsOutsourcing costsLabour costs
2021/32019/3 2020/3
(Unit: Million JPY)
Increased MENTA acquisition-
related expenses
40© LANCERS, Inc. All Rights Reserved
(Reference)Trends in Advertising Expenses (Consolidated)
The ratio of advertising expenses to sales remains at the constant level of 6%.
54 61 55 64 324 49 58 168 51 54 61
9% 10% 9% 9%
48%
6%7%
16%
6% 6%6%
0%
10%
20%
30%
40%
50%
60%
0
50
100
150
200
250
300
350
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
Advertising expenses
Ratio to advertising expenses*
Acquisition of clients
Clients’recognition
*) Proportion of advertising expenses in Net sales.2021/32019/3 2020/3
(Unit: Million JPY)
41© LANCERS, Inc. All Rights Reserved
356 362 352
414 377
455 463 497
428 465
489
-49 -52 -63-37
-270
55 44
-136
-16 1
Gross profit (Unit: Million JPY)
Profitable withoutlarge-scaleinvestment
Approx.270 million JPY invested
2019/3 2020/3 2021/3
1Q 2Q 3Q 4Q 1Q1Q 2Q 3Q 4Q 2Q 3Q
Investment phase (mainly new business) Profit generating phase
Quarterly Changes of Gross Profit and Operating Income (Consolidated)
Operating surplus from 2Q alone, investment continues within the range of profitability to increase Gross Merchandise Value
Approx.200million JPY
investedApprox. 20million JPY
invested
Approx. 50 million JPY
invested
0.5
42© LANCERS, Inc. All Rights Reserved
What creates our value and KPI
Emphasizing expansion of Gross Merchandise Value and Gross profitrepresenting our added value
GMV* Take Rate
Gross profit
×
Maintain the status quo
Number of active clients Spend per client×KPI
Number of Reliable Lancers(Driving Competitiveness in the market )
▲▲
▲▲
*) Gross Merchandise Value
43© LANCERS, Inc. All Rights Reserved
112141
165 167194
240 223
2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 2020/12
205 256
293 319 332 337
290
2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 2020/12
Changes in the Number of Client Companies and Usage Amount (Annual)
The amount of usage per client is steadily progressing
Annual trends in number of active clients * Annal trends in spend per client*
*) It indicates the “number of clients” as the “number of active clients” respectively up to the 1st quarter
financial statements for the fiscal year ending March 2021.
*) It indicates the “unit price of clients” as the “spend per client” respectively up to the 1st quarter financial
statements for the fiscal year ending March 2021. The spend per client indicates the average spend per
client during the limited period. It does not include businesses in other areas such as “Lancers AREA
PARTNER” and “Sharefull”.
In progress
(Unit: Hundred active clients ) (Unit: Thousand JPY)
In progress
44© LANCERS, Inc. All Rights Reserved
Status of Balance Sheet
Visible fund** and capital adequacy ratio are high, and the financial base is solid.
Overdraft quota** also secured 700 million JPY
Customer deposits
733
Goodwill439
Equity Ratio
55.2%
Non-current assets 593Other current assets 695
Cash and deposits
1,949**
Non-current liabilities 4
Current liabilities
1,446
Net assets
1,787
Total assets 3,237 Total liabilities/net assets 3,237*) 1,216 million JPY of Net Cash as of the end of December 2020 = cash and deposits 1,949 million JPY –debt 0 million JPY – customer deposits 733 million JPY
**) The total amount of uncommitted overdrafts is 710 million JPY as of the end of December 2020.
(Unit: Million JPY)
45© LANCERS, Inc. All Rights Reserved
16%
15%
9%6%
1%
53%
16%
15%
14%6%
1%
48%
Shareholder Composition
Domestic and overseas institutional investors account for 30% of the total.
Off-floor distributions were implemented in November 2020, and the ratio of founders and management became lower, improving the number of shareholders and the current ratio
Shareholder composition(as of the end of September 2020)
Shareholder composition(Assumed at the end of December 2020 *)
▲▲▲*)Percentage considering 699,000 shares for off-floor distributions conducted on November 24, 2020.
Overseas institutional investors
Business companies
Domestic institutional investors Individual investors/others
VC Founders/managers
© LANCERS, Inc. All Rights Reserved 46
Service Details1
Performance Details2
Target Market and Mid- to Long-Term Strategies3
Lancers’ Strengths4
Initiatives for Sustainability (SDGs)5
47© LANCERS, Inc. All Rights Reserved
Development
Design
Sales
Consulting/Planning
Marketing/PR
HR/Recruitment/Labor
Acconunting/Finance/Legal
Secretary/Admin
Potential Expansion of Lancers’ Target Market
With the spread of online work and utilization of external human resources, the target market
for specific occupations will expand and expected to record around 1 trillion JPY by 2030
Potential expansion of Lancers’ target marketMarket size ratio by specific
occupations
アウトソース(社外人材活用)化率
オンライン化率
In-house HR market (approx. 40 trillion JPY*)
Market by 2030*(approx. 1 trillion JPY)
External HR market (approx.5 trillion JPY*)
Long-term market (several trillions of JPY)
特定職種の全体市場(約45兆円*)
Market in 2020 (several tens of billions of JPY)
Overall market for specific occupations (approx. 45 trillion JPY*)
Outsourcing (utilization of external HR) rate
Front officeApprox. 60%
Middle officeApprox. 10%
Back officeApprox. 30%
Market by 2030 (approx. 1trillion
JPY)
*) We calculated the external HR utilization rate and the target HR market and estimated the market size based on materials such as 2015 National Census, 2016
Economic Census, Specified Service Industry Dynamic Statistics Survey August 2020, Reiwa 1st Annual Wage Structure Basic Statistics Survey, Yano Research
Institute “2020-2021 BPO (Business Process Outsourcing) Market” Actual conditions and prospects”, Industry Trends SEARCH.COM, Career Change Service
doda” Average Annual Income Ranking by Job Type 2019”.
**) The market size is estimated by our company based on the data in the above reference in the “Freelance Survey 2020” conducted by our group in February 2020.
On
line rate
48© LANCERS, Inc. All Rights Reserved
Evolve provision of platform valueShift services to mid-to-high price range and maximize client LTV
Expand platform categoriesEnlarge existing categories and add new ones
Establish an ecosystem for individualsProvide new career opportunities and value that are not limited
to work areas
Medium to Long-Term Strategy
Actively utilize M&A to enlarge the target market and provide new value beyond work platform
Prospect of
long-term
business
growth
20252019 2020 2021 2022 2023 2024
Crowdsourcing
Online staffing
In-house
M&A
自前
M&A
In-house
© LANCERS, Inc. All Rights Reserved 49
Service Details1
Performance Details2
Target Market and Mid- to Long-Term Strategies3
Lancers’ Strengths4
Initiatives for Sustainability (SDGs)5
© LANCERS, Inc. All Rights Reserved 50
Lancers’ Strengths
A “reliable platform” for distribution of high value-added work
Further creation of high value-added and high unit price work
Provision of high quality output
with the increase in reliable
freelancers
FreelancersClients
Increase in unit price per client
Improvementof
continuationrate
Opportunities for high value-
added work
Increase in reliable
freelancers
Increase in per capita
renumeration
Aplatformtosecurereliability
Technology to visualize
reliabilityMatching algorithm to
utilize reliability
The structure to increase
and retain reliable
freelancers
51© LANCERS, Inc. All Rights Reserved
1. Technology to visualize “reliability”
We have developed a mechanism that recommends a real-name system that is effective for strengthening reliability and displays it with priority
52© LANCERS, Inc. All Rights Reserved
2. The matching algorithm to utilize “reliability”
It promotes matching with reliable freelancers and clients
Matching freelancers with clients with high affinity
Freelancers クライアント
Register reliable data Request projects at appropriate price
Skills AchievementsReal
names
ID
photos
適正な価格帯での依頼
Best
prices
Fair
prices
Difference from
market price
53© LANCERS, Inc. All Rights Reserved
3. The structure to increase and retain “reliable” freelancers
It creates an environment where they can focus on their primary work
Previousenvironment
Covering all: from primary jobs to
management
Focusing only on the primary job
Benefit programs AdministrationGrowth
Community EducationMedical
check-upMedical
insuranceTax
returnBills Contract
Clients
Main
job
Man
agemen
t job
Provide corporate functions for individuals
▲▲
Provide opportunities to grow for individuals
▲▲
Launched in 4/2019Launched in 6/2018
Growth
Benefit programs
Management
© LANCERS, Inc. All Rights Reserved 54
Service Details1
Performance Details2
Target Market and Mid- to Long-Term Strategies3
Lancers’ Strengths4
Initiatives for Sustainability (SDGs)5
© LANCERS, Inc. All Rights Reserved 55
Initiatives for Sustainability (SDGs)
Building a sustainable society with an understanding of
diversity by providing new work styles
While valuing the relationship between individuals and client partner companies, we
will fulfill our responsibilities through business operations as an innovator for the next
generation to contribute to the healthy and dramatic development of society and the
creation of a sustainable society.
In addition, we consider that “realization of Mission Vision (creation of new work styles and new job satisfaction)” is in a field “job satisfaction” that can contribute to the SDGs, and are committed to deal with 5 important issues (materiality) which are involved in the SDGs.
Sustainability
Transaction / Governance
Providing human resources to client companies
A workplace where everyone can work in a way that suits them
Realization of Mission & Vision
An environment where any work is worthwhile for individuals
© LANCERS, Inc. All Rights Reserved 56
Initiatives for Sustainability (SDGs)
Realization of our mission “empowering individuals” and our vision “creating a society where
everyone can work in a way that suits them with technology”
Lancers will maximize the potential of the Internet and achieve personal empowerment
that will allow many people to continue to live more conveniently, more freely, and
more personally with a smile.Our aim is to contribute to the creation of a better and more prosperous society by providing value and growth opportunities to many and transforming individual lives, working styles, and wellbeing.
We have a vision to realize our mission, and in order to realize our vision, we have established our group’s guidelines (Lancers Way) to operate our business.
We believe that our mission since hour foundation is our Sustainability Statement, which simultaneously contributes to the achievement of the United Nations Sustainable Development Goals (SDGs).
© LANCERS, Inc. All Rights Reserved 57
Initiatives for Sustainability (SDGs)
Social environment initiatives that allow individuals to work with satisfaction
Our goal is to establish a society where people can live wherever they want, work and earn in their own way with the use of the Internet.
Approximately 70% of the individuals registered on our group’s platform live in rural areas.
By using our services, we can provide a meaningful way of living to those who are restricted to work because of their residence, maternity leaves, caring for the elderly, retirement, etc.According to the 2020 freelance fact-finding survey, satisfaction with freelancing was approximately 50%. Our group has created a social environment where individuals can work freely and with satisfaction through efforts to facilitate the creation of diversity.
To be able to work with more satisfaction and peace of mind, we also take serious action to solve issues that often occur for freelancers, including “connection with people (community)”, “education and growth opportunities”, and “welfare and management work for those who do not belong to a company for a primary work”.
72%% of registered freelancers
living other than Tokyo(Number of registrants in the last year)
© LANCERS, Inc. All Rights Reserved 58
Initiatives for Sustainability (SDGs)
Creating a workplace where employees can work in their own way
As an innovator for the next generation, we are committed to introduce new work styles and skilled human resources within our group, and embody the new work styles with colleagues who share our mission, vision, and guidelines.
At Lancers, we respect a wide variety of work styles in order to eliminate barriers in the lifestyles and life stages of our employees, maximize their “Will” to work, and perform their best.To achieve this, our group supports the recommendation of remote work and the promotion of side businesses through our systems and initiatives, and is working to create working spaces where our employees can work in their own way.
With the spread of the Internet, traditional values have changed and work styles have diversified, opening up great opportunities. As an innovator for the next generation, we will transcend the boundaries of employment patterns, co-create with individuals, and embody them as the starting point for change.
In addition, we will not only disseminate it to our own company, but also disseminate it to others, and contribute to working styles for the next generation for individuals, clients, and partner companies, as well as contributing to co-creation with other companies and job satisfaction.
9People
Number of femalemanagers in our group
2,122People
Number of freelancersin our group
© LANCERS, Inc. All Rights Reserved 59
Initiatives for Sustainability (SDGs)
Solving the shortage of human resources, improving productivity and promoting DX
The shortage of labour force and IT personnel is serious. We believe that securing
human resources and continuously and smoothly supporting the most suitable human
resources to client companies is the first step toward solving this issue.
Our platform scores the achievements, technical skills and experience of each individual, and performs as an optimal matching tool to meet the needs of client companies.
Not only does it solve the shortage of human resources of client companies, but also contributes to the issues that involve improving productivity and promoting conversion to DX, which are mainly found in small and medium-sized enterprises. In addition, we will promote innovation by utilizing external human resources of client and partner companies, especially in the field of engineering, and contribute to economic growth and job satisfaction of these companies.
The number of clients who use our services annually is approximately 30,000.The average number of days to start work is about 7 days, which not only improves the matching accuracy with technology, but also builds a mechanism to smoothly secure human resources online.
We are committed to provide competent human resources by matching them with suitable projects.
Number of clients
Unit: 1,000 clients
© LANCERS, Inc. All Rights Reserved 60
Initiatives for Sustainability (SDGs)
Safe, secure, fair and equal transactions and strengthening of governance
between individuals and companies
Our group has established a Quality Improvement Committee so that individuals (freelancers) and companies (client partners) cam carry out safe, secure, fair and equal transactions on the platform, as well as raising awareness of fair prices, promoting stable platform transactions, and building trust.
Furthermore, we believe that the “trust” towards our group from society is indispensable for operating on the online work platform. Therefore, we will permanently maintain a sound organization, comply with laws and regulations, engage in appropriate and efficient management activities, and strengthen governance.
61© LANCERS, Inc. All Rights Reserved
‘Lancer of the Year’ to be held in March 2021
“Lancer of the Year” is held every year to celebrate freelancers
62© LANCERS, Inc. All Rights Reserved
Disclaimer
Handling of this material
This information contained herein is based on current economic, regulatory, market trends and other conditions. The Company makes no representation or guarantee
with respect to the credibility, accuracy, appropriateness or completeness of the information herein. The information contained herein may change without prior notice.
Furthermore, the information on future business results are forward-looking statements. Forward-looking statements include but not limited to expressions such as
"believe", “expect", "plan", "strategic", "expect", "anticipate", "predict" and "possibility", as well as other similar expressions to explain future business activities,
achievements, events and future conditions. Forward-looking statements are predictions about the future that reflect management's judgment based on currently
available information. As such, these forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from
those expressed in or suggested by the forward-looking statements. Therefore, you may not rely entirely on forward-looking statements. The Company does not
assume any obligation to change or correct any forward-looking statements in light of new information, future events or other findings. In giving this material, the
Company does not undertake any obligation to provide the recipient with access to any additional information or to update this material or any additional information
or to correct any inaccuracies in any such information which may become apparent. Information on companies other than the Company and information provided from
third parties are based on public information or sources. The Company has not independently verified the accuracy and appropriateness of such data and indicators
used herein, nor assume any responsibility for the credibility, accuracy, appropriateness and completeness of such data and indicators presented in this document.
© LANCERS, Inc. All Rights Reserved