1st-quarter financial report · * the ratio of people who respond that “do not socialize at...

1st-Quarter Financial Report for the Fiscal Year Ending

December 31, 2018

May 11, 2018 TSE 1st Section: 6071

1 Copyright © IBJ, Inc. All rights reserved.

INDEX

1. Financial Results Summary

2. Summary by Business Division

3. Growth Strategy

4. Reference Materials


By 2022, make the couples married through IBJ account for 3% of couples married in Japan.


3% of Couples Married

8,000

10,000

12,000

14,000

16,000

18,000

20,000

2017 2018 2019 2020 2021 2022

2018

2022

0

2,000

4,000

6,000

2014 2015 2016

1% is expected to be achieved (About 6,000 couples)

18,000 couples

Copyright © IBJ, Inc. All rights reserved. 4

≫the number of registered member and

marriage meetings

FY2017 FY2013 FY2015 FY2016

the number of registered member and marriage meetings is rising trend

FY2018

1.Financial Results Summary

59,165

registered member

49,979

24,246

14,316

45,000

50,000

60,000

55,000

（members）

65,000 marriage meetings

FY2014 Copyright © IBJ,Inc. All rights reserved. 5

(Million yen) 2017 2018 Percentage

change

1Q 1Q

Net sales 2,343 2,457 +4.9%

Operating income 341 327 △4.2%

Ordinary income 345 325 △5.8%

Net Income 224 215 △3.8%


Consolidated Results



Performance Highlights

Marriage Hunting Business

Life Design Business

(Million yen) (Million yen)

Net sales

+4.9 ％ YoY

Operating income

-4.2％ YoY

Net sales: 1,414 million yen YoY: +6.1％ Segment income: 584 million yen YoY: -2.1%

Net sales: 1,042 million yen Segment income: +33 million yen (before goodwill amortization)

2,343

2,457

341

327


Investment of personnel contributing to sales and store openings

2017 1Q (consolidated)




Other SG&A

Expenses

+9％

business tax

+144％

Rent +19％

Advertising Expenses Promotional Expenses

+12％

Personnel Expenses

+8％

1,120

Personnel Expenses

Advertising Expenses Promotional Expenses

Rent

business tax

Other SG&A

Expenses

1,011

YonY

+10.8％

Increase in software etc.

Copyright © IBJ,Inc. All rights reserved.

Increase stated capital by

exercising stock option

New store opened in Ueno

and Nagoya and Namba

Increase in advertising

expenses contributing to sales

Increase number of employeesYonY +56

(Million yen)


FY2018 1Q(Consolidated)

FY2017 1Q (Consolidated)

SG&A Expenses

8

Started a private marriage-concierge system.


Community Business

Operation of the marriage hunting website “Bridal Net”

50

150

200

100

2017 1Q

2017 2Q

2017 3Q

2017 4Q

2018 1Q

2018 2Q

(outlook)

(Million yen)

153 166

144 138 135

The number of members bottomed out and started to increase.

Jan 14,100

Feb 13,300

Mar 13,500

1.82

1.65 1.56

1.44

Net sales (excluding internal sales) Number of people charged a monthly membership fee (as of quarter-end) (10,000 people)

Point

Individually provided advice by private concierges helps to keep members from unsubscribing from the membership.

1.35


Showing an uptrend while there is seasonality. Expect to see growth in 2Q which includes the

Golden Week holidays.


Event Business

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

350

550

650

450

2017 1Q

2017 2Q

2017 3Q

2017 4Q

2018 1Q

2018 2Q

(outlook)

571

661

586 550

13.3 15.2

17.8 15.7 14.3

(Million yen)

Net sales (excluding internal sales)

Number of participants (10,000 people)

503

Store opening in Namba, Ueno (Marui), Dai Nagoya

PARTY☆PARTY app release

Point


A significant increase in the number of people married, reaching 352.


Marriage Consulting Agencies Business

Operation of own marriage servicers “IBJ Members”

2017 1Q

2017 2Q

2017 3Q

2017 4Q

2018 1Q

2018 2Q

(outlook)

350

400

500

450

413 422

455 453

288 296

344 341 352

500

(Million yen)


Number of people married

Fostering of manpower by a department dedicated for human resources development; ensuring thorough member management.

Point


Number of affiliates stood at 1,691. (YoY+22.4%)


Affiliate and Media Service Business

System services for affiliates throughout Japan and support for independent launches

Total redesign of IBJ’s marriage meeting system app. Point

1,629companies

100

300

400

200

2017 1Q

2017 2Q

2017 3Q

2017 4Q

2018 1Q

2018 2Q (outlook)

1,691companies

1,560companies

1,469companies

1,381companies

305 314 309 312

(Million yen)


Number of affiliates

250


3. Growth Strategy


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.

3. Growth Strategy Marriage Intention of Unmarried People

50.0%

46.2％

40.0% 30.0% 20.0% 10.0% 0.0%

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

Want to focus on own hobbies

Want to focus on work and study

About 90% of unmarried people answered that

“they will get married eventually.” 87.5％ 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


Potential customer development progresses due to aggressive entry of

major corporations.

3. Growth Strategy Market Size

Dating apps

Potential market size

1 trillion yen

66 billion yen

Increase in potential customers mainly in their 20’s 16 Copyright © IBJ, Inc. All rights reserved.

Entry of major corporations Invested by institutional investors

and financial funds (ESG investment*)

3. Growth Strategy ESG Investment

Entry of major corporations

Marriage-hunting 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).


One of IBJ’s strengths is to be able to provide support until engagement with its:

3. Growth Strategy Systems and People

Systems People

system human


3. Growth Strategy Strength of the systems

Search for persons to meet

Register them as favorites

Request an arranged-marriage meeting

Contact a matchmaker

Headquarters

Tokai Office

Kansai Office

What kind of system is it?

Provide full support from joining to marriage

With the system, you can:

Strength of the systems and more The largest membership network for matchmaking in Japan with approx. 60,000 members and

1,691 affiliate companies

PARTY☆PARTY app release

Improve the system UI and UX


3. Growth Strategy Strength in people

Strength in people and more The method of connecting

people for marriage cultivated through a 17-year marriage support business

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

Strengthening recruitment and development (newly established a department dedicated for human resources development)

Matchmaker network of 1,691

companies and 3,000 matchmakers


3. Growth Strategy Domains to expand

Marriage proposal

Ring

Marriage

Marriage hunting

Single

Business Domain

Domains to expand

Honeymoon

Insurance

Home

Childbirth

Child-raising

Vacation

Job changes

Insurance

Self-improvement

Senior community

Second life (life after retiring)


IBJ membership base contributes to the group company businesses.

3. Growth Strategy Life Design Business

Wind and Sun Inc. (wedding) Kamome Co., Ltd. (travel)

IBJ Life Design Support Co., Ltd. (insurance)

Insurance

Travel

Wedding Target

Number of referrals to wedding venues

Married couples About

6,000 couples per year

Number of members registered with IBJ’s

marriage meeting system

About 60,000 members

Target

Target

1,000 couples per year

500 couples per year

500 couples per year

276couples

Number of couples signing an insurance policy 92couples

Number of couples signing an agreement for honeymoon travel 58couples

* FY2017 893 couples

* FY2017 101 couples

* FY2017 42 couples


Invest in Headwaters Co., Ltd.

3. Growth Strategy Introduce to marriage-hunting parties

Point 1

Point 2

Has proven performance in implementing robot app development.

Introduce to marriage-hunting parties

Take on a wide range of operations such as attending marriage meetings


Japan has a serious issue of isolation of elderly people.

3. Growth Strategy Isolation of the elderly people

Netherlands U.S. Germany South Korea France Mexico Japan

0.0

2.0

4.0

6.0

8.0

16.0

18.0

2.0 3.1 3.5

7.5 8.1

14.1

10.0

12.0

14.0

15.3

2005 (%) State of social isolation (comparison of OECD countries)

* 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 1999–2002. Source: Society at a Glance OECD Social Indicators-2005 Edition


Provide senior services different from previously provided ones

3. Growth Strategy Senior Services

20 30 40 50 60 70 80 90 10

Sports activity

Reading

Shopping

Travel

News Paper/ Magazine

TV/Radio

20.1%

23.2%

31.3%

41.2%

55.0%

83.2%

Daily leisure and hobbies of elderly people

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 Copyright © IBJ, Inc. All rights reserved.

International marriages account for about 5% of the total marriages in Japan

3. Growth Strategy Annual changes in international marriages

60 62 64 66 68 70 72 74 76 78 80 82

5.9％

6.1％

5.3％

5.1％

Annual changes in the number of marriages by nationality of couples

(10,000 couples)

Total marriages in Japan

Either husband or wife is non-Japanese 2009

2008 2007 2005 2002

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

Copyright © IBJ, Inc. All rights reserved.

4.7％

26

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%

Ratio of international marriages by country

3. Growth Strategy Ratio of international marriages by country

Japanese man

non-Japanese woman

and Japanese woman

non-Japanese

man and

Provide international marriage services focusing on Japanese and Korean couples.


Source: Special report on vital statistics of 2016.Overview of "statistics on marriage"

4. Reference Materials


4. Reference Materials Consolidated Balance Sheets

(Million yen)

As of end of

December 2017 As of end of March 2018

Increase/ decrease

Factors in change

Current Assets 4,485 3,932 -372 Acquisition of treasury stock

Cash and Deposits 3,607 3,102 -505

Non-current Assets 1,736 1,847 +111

Property, Plant and Equipment/ Intangible Assets

766 831 +65 New store opened in Ueno, Nagoya,Namba

Investments and Other Assets 970 1,016 +46

Total Assets 6,220 5,779 -442

Current Liabilities 2,032 1,660 -372

Non-current Liabilities 1,017 969 -49

Total Liabilities 3,049 2,628 -421

Capital Stock/Capital Surplus 1,141 1,217 +76 Increase stated capital by

exercising stock option

Retained Earnings 2,519 2,380 -139

Treasury Stock -508 -508 ±0

Valuation and Translation Adjustments

16 29 +13

Stock Acquisition Rights 3 32 +29

Total Net Assets 3,171 3,150 -21

Total Liabilities and Net Assets 6,220 5,779 -442


Sales = Unit Price in Each Business x Quantity

4. Reference Materials Business model

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 180,000–240,000 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


Shareholder benefits as of the end of June 2018

4. Reference Materials Shareholder benefits

Shareholder benefits as of the end of December 2018

Shareholders holding more company’s shares

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

Customized QUO cards Free service coupons/discount tickets

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.


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

4. Reference Materials Company Profile

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 February 2006

Paid-in Capital 608,720,750 yen *As of end of March 2018

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)

443 *As of end of March 2018

Number of halls

43 (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 2018


4. Reference Materials Company History

2000 Bridal Net Inc. is established. Formally launches Japan’s first Internet marriage information service Bridal Net.

2003 Becomes a wholly-owned subsidiary of Yahoo Japan Corporation and creates marriage hunting service for Yahoo! JAPAN.

2004 Provides benefit program services to the Federation of National Public Service Personnel Mutual Aid Associations (KKR).

2006 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.

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.

2011 Completes full renovation of Bridal Net, transforming it into a marriage hunting site. Grows into Japan’s largest social-marriage-hunting network.

2012 Listed on the JASDAQ (Standard) market of the Osaka Securities Exchange (now the Tokyo Stock Exchange).

2014 Changes listed exchange to the Second Section of the Tokyo Stock Exchange.

2015 Changes listed exchange to the First Section of the Tokyo Stock Exchange.

2016 Establishes Konkatsu Souken Inc. (a subsidiary). Consolidates Wind and Sun, Inc. Consolidates Kamome Co., Ltd.

2017 Establishes IBJ Life Design Support Inc. (a joint company with Sony Life Insurance Co., Ltd.) Establishes Kansai Office and Tokai Office.

2018 Releases PARTY☆PARTY app. Totally redesigns IBJ’s marriage meeting system app.


Contact:

IBJ, Inc. (IBJ, Inc.)

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

E-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 May 2018 and certain assumptions that are considered rational, and may be altered without notice for reasons such as changes in the business environment.


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