Full-year Financial Report for the Fiscal Year Ended on December … · 2018. 2. 28. · 35 2006 Establishes IBJ Inc. Begins-marriage Consulting Federation business. Establishes IBJ

Copyright © IBJ,Inc. All rights reserved.

Full-year Financial Report

for the Fiscal Year Ended

on December 31, 2017


February 14, 2018

TSE 1st Section: 6071

1

Our belief that “people connect people”


INDEX

Reference Materials 4

1 Financial Results Summary

2 Summary by Business Division

3 Growth Strategy

2


Financial Results Summary

1

3


Net sales

Operating income

Net Income

2016 2017 Increase/ decrease

Year on Year

selling and administration cost

5,268

3,575

1,111

725

9,461

4,259

1,493

1,036

+4,193

+684

+382

+311

+79.6％

+19.1%

+34.9％

+42.8％

4

(million yen)

1. Financial Results Summary


1. Financial Results Summary Changes in Sales

Sales have increased for 11 consecutive fiscal years

(million yen)

5

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 (Consolidated)

85 278

1,032

1,518

3,317

5,268

2,125 2,574

1,819

4,123

9,461

2017 (Consolidated)

+79.6% YoY


1. Financial Results Summary Performance Highlights

1,111

1,493

Net sales

+79.6% YoY

(million yen)

Operating income

+34.4% YoY

(million yen)

5,268

9,461

Net sales: 5,850 million yen +14.9% YoY

Segment income: 2,577 million yen ＋19.6% YoY

Net sales: 3,611 million yen

Segment income: 29 million yen (before goodwill amortization)

Life Design Business

Net sales increased by 79.6% YoY Operating income increased by 34.4% YoY

Marriage Hunting Business

2016 full-year (consolidated)

2017 full-year (Consolidated)

2016 full-year (consolidated)

2017 full-year (Consolidated)

Segment operating margin: 44.1% ＋2.6% YoY

6


Net sales

FY2017 (Actual)

FY2018 (Forecast)

Year on Year

9,461

1,493

1,493

1,036

10,620

1,750

1,749

1,180

+12.3％

+17.2%

+17.1％

+13.9％

7

1. Financial Results Summary Performance Forecast for Fiscal Year ending in December 2018

Operating income

Ordinary income

Net Income

(million yen)

Copyright © IBJ,Inc. All rights reserved. 8

Summary by Business Division

2


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)

2. Summary by Business Division (1) Community Business

Reinforcing marriage concierge so that 1 marriage concierge supports 1,000 members.

1.44

(million yen)

2016 2Q

2016 3Q

2016 4Q

168

2017 1Q

174

50

100

150

200 1.87 1.90

170

1.83

2017 2Q

166

1.82

153

1.65

2017 3Q

2017 4Q

2016 1Q

159

1.79 1.56

144 138

Operation of the marriage hunting website “Bridal Net”


2. Summary by Business Division (2) Event Business

Number of participants was exceeded 600,000 in the full year. +26.0% YoY

Increase the number of halls and staff through the aggressive hall opening plan for 2018.

2017 2Q

2016 2Q

503

2016 3Q

2016 4Q

505

2017 1Q

495 450

(million yen) Net sales (excluding internal sales)

13.3

12.8 13.0

Number of participants (10,000 people)

542

13.9

550

350

650

571

15.2

2016 1Q

428

10.3

2017 3Q

2017 4Q

17.8

661

15.7

586

Operation of “PARTY☆PARTY” marriage-hunting parties and “Rush” matchmaking party arrangement service


2. Summary by Business Division (3) Marriage Consulting Agencies Business

The number of married in the full term is 1,269. + 18.4% YoY

2017 2Q

2016 2Q

2016 3Q

363

2016 4Q

384

250

300

350

400

(million yen)


288 276

262

Number of people married

2017 1Q

404

311

413

296

422

450

2016 1Q

339

223

2017 3Q

2017 4Q

344

453

341

455

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.

Operation of own marriage servicers “IBJ Members”


Number of affiliates exceeded 1,600 and is continuing to rise.

2. Summary by Business Division (4) Affiliate and Media Service Business

Number of affiliates exceeded 1,600. Number of marriage meetings in October far

surpassed 27,000.

2017 2Q

2016 2Q

2016 3Q

2016 4Q

100

200

300

(million yen)

1,190 companies

1,257 companies


Number of affiliates (as of quarter-end)

1,381 companies

2017 1Q

1,325 companies

1,469 companies

2016 1Q

1,182 companies

2017 3Q

2017 4Q

254

226

259 250

305

216

400

1,560 companies

314

1,629 companies

309

System services for affiliates throughout Japan and support for independent launches


Growth Strategy 3

1. Marriage Hunting Business (1) Enhance IBJ’s strengths

(2) Expand the membership base

2. Life Design Business


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.

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

About 1 out of 3.5 people does not particularly wish to go out with someone.

45.9

1997 2015

64.5 ％％



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

However, about 90% of unmarried

people say that they will get married eventually.

0.0% 10.0% 20.0% 30.0% 40.0% 50.0%

仕事や勉強に力を入れたい

自分の趣味に力を入れたい

友人と過ごす時間を大切にしたい

過去に恋愛で失敗した

恋愛が面倒

恋愛に興味がない

他人と恋人として交際するのがこわい Scared of being in a romantic relationship

No interest in romantic relationship

Being involved romantically with someone is troublesome

Had a failed relationship before

Want to value the time with friends

Want to focus on own hobbies

Want to focus on work and study

The reason for not wanting to go out with someone is that

“dating or going out is troublesome.”

87.5

％

46.2 ％



Source: 2017 Status of Marriage Hunting (Recruit Bridal Souken)

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

* Respondents: 50,000 males and females aged 20–49 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).

（%）

0 5 10 15 20 25 30

習い事

合コンに参加

知人の紹介

婚活パーティー・イベント

婚活サイト・アプリ

結婚相談所

201…

201…

25.3％

12.5%

16

Marriage servicer

Marriage-hunting website/app

Marriage-hunting party

Introduction by an acquaintance

Participation in matchmaking

parties

Search by hobby/interest

2013

2016



One of IBJ’s strengths is to be able to provide support

“until engagement” with its system and people.

17



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



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


0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

3,417couples

2013

2018 (Estimate)

6,000 couples

IBJ produces of the marriages in Japan.

3. Growth Strategy 1. Marriage-hunting (2) Expand the membership base


（％）

21

0

2

4

6

8

10

12

4.7％

1.4％

2.4 times in 3 years

2000

2013

2016

11.3％


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

* Respondents: 50,000 males and females aged 20–49 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)


Collaboration with Kamome (travel business) increased chances to offer

people opportunities to meet new people


22

Cebu island tour

Marriage-hunting bus tour

December 1–3(3Days tour) January 20/27(1day bus tour)


Matchmaking application using personality assessments as a hook

Events in collaboration with sport teams and comedy

“Non-marriage-hunting” community having hobbies as common interests

Sense of reassurance provided by the involvement of local municipalities.


Soften the image of marriage hunting to further increase user numbers.


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*).

3. 成長戦略 1.婚活事業

Entry by major corporations

24

Marriage-hunting industry

￥


Growth Strategy 3

1. Marriage Hunting Business (1) Enhance IBJ’s strengths

(2) Expand the membership base

2. Life Design Business


Married couples About 4,700 couples

per year

The largest membership network for matchmaking

in Japan Approx. 60,000 members

26

Target

1,000 couples per

year

Target

500 couples per

year

Target

500 couples per

year

Wedding

Number of referrals to wedding

venues 893 couples ※2017

Insurance

Number of couples signing

insurance policy 101 couples

Travel

Number of couples signing agreement for honeymoon travel 42 couples

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.

*Started in April


Become a total life design company by leveraging our membership base along with our know-how to provide support.

Business Domain

Marriage hunting

Marriage

Moving, Insurance

Job Changes

Childbirth, Childcare

Domains to expand

Honeymoon

Beauty, Brush up

Proposal, Ring

Wedding

Vacation

The elderly

2018 Net sales

10 billion yen

3. Growth Strategy 2. Life Design Business


Reference Materials

28

4


4. Reference Materials : Net Sales Calculation Method

Community (Operation of Bridal Net)

Event (Operation of “PARTY☆PARTY” and “Rush”)

Agent (Operation of own marriage servicers “IBJ Members”)

Affiliate and Media Service (System services for affiliates and support for launches)

* Package for corporate sales is 3 million yen or more

* Success fee is 200,000 yen

29

Unit Price in Each Business

＝ Net sales x Quantity

Revenue source

= Monthly membership fee of

3,000 yen ×

Number of people charged monthly membership fee

Revenue source

= Average participating fee of

4,000yen ×

Number of participants at events

Revenue source

= Annualized membership fee of

about 180,000–240,000 yen ×

Number of members

Revenue source

= Marriage service registration fee of 1.5 million yen

and Monthly system charges of about 20,000 yen ×

Number of affiliates


1

2

3

4

5

6

7

8

9

10

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

Dividends have increased for 5 consecutive fiscal years. Payout ratio remained over 30%.

5.67yen

4. Reference Materials : Dividends

30

4.17yen

Payout ratio 37.2%

6.00yen

9.00yen

Payout ratio 30.1%

Payout ratio 38.4%

Payout ratio 38.5%

2.80yen

Payout ratio 33.5%

December 2013 December 2014 December 2015 December 2016 December 2017

* Stock split is taken into account.


Shareholders holding more company’s shares

Shareholders holding the company’s shares for a longer period

Customized QUO cards Free service

coupons/discount tickets

1,000-yen flower gift coupon

4. Reference Materials : Shareholder benefits


4. Reference Materials : Consolidated Balance Sheets

32

As of end of December 2016

As of end of December 2017

Increase/ decrease

Factors in change

Current Assets 3,283 4,484 +1,201

Cash and Deposits 2,462 3,607 +1,144

Non-current Assets Property 1,607 1,735 +128

Plant and Equipment / Intangible Assets 860 766 △94

Investments and Other Assets 746 969 +222

Total Assets 4,890 6,220 +1,329

Current Liabilities 1,795 2,032 236

Non-current Liabilities 1,088 1,017 △71

Total Liabilities 2,883 3,049 165

Capital Stock / Capital Surplus 676 1,141 +464

Retained Earnings 1,700 2,519 +818

Treasury Stock △382 △507 △124

Valuation and Translation Adjustments 3 15 +12

Stock Acquisition Rights 8 2 △5

Total Net Assets 2,006 3,171 +1,164

Total Liabilities and Net Assets 4,890 6,220 +1,329

(million yen)

expansion of a sales area and WEB site renewal

Posting on net income


4. Reference Materials : Cash Flows

(million yen)

33

As of end of December 2016 (Consolidated)

As of end of December 2017 (Consolidated)

Topics

Cash Flow from Operating Activities 993 1,262

Cash Flow from Investing Activities △599 △209

Cash Flow from Financing Activities 640 92

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

Posting of income before taxes

acquisition of intangible assets


4. Reference Materials : Company Profile

Management philosophy is “Bringing happiness to all the people who share a connection.”

34

Company name IBJ, Inc.

Representatives Shigeru Ishizaka, CEO / Tetsuhiro Nakamoto, COO

Location of Headquarters

12th floor, Shinjuku First West, 1-23-7 Nishi-Shinjuku, Shinjuku-ku, Tokyo 160-0023

Established in February 2006

Paid-in Capital 570,569,750 yen *As of end of December 2017

Fiscal Year End December 31

Businesses

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

Number of Employees

(consolidated)

445 people *As of end of December 2017

Number of Halls

40halls (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 2017


4. Reference Materials : Company History

35

2006 Establishes IBJ Inc. Begins-marriage Consulting Federation business. Launches the marriage meeting coordination system IBJS.

2007 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.

2009 Begins restaurant customer referral business with matchmaking party coordination website called Rush. SIer, Inc. becomes a subsidiary.

2010 Completes full renovation of the marriage meeting coordination system IBJS (ver. 2.0).

2011 Completes full renewal of Bridal Net.

2012 Is listed on the JASDAQ market of the Tokyo Stock Exchange.

2013 Completes customer consolidated database, the IBJ Account. The registered members of the Japan Marriage Consulting Federation exceeds 50,000.

2014

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.

2015

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).

2016

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 500,000.

2017 Established IBJ Life Design Support Co., Ltd. (a joint company with Sony Life Insurance Co., Ltd.)


Contact:

IBJ, Inc. (IBJ, Inc.)

12th floor, Shinjuku First West, 1-23-7 Nishi-Shinjuku, Shinjuku-ku, Tokyo 160-0023 TEL: 050-1745-1194 FAX: 03-5324-5667 Mail: [email protected]

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

mailto:[email protected]

Documents

Full-year Financial Report for the Fiscal Year Ended on December … · 2018. 2. 28. · 35 2006 Establishes IBJ Inc. Begins-marriage Consulting Federation business. Establishes IBJ