8th business period (fy12/07 · (ad, pr expenses: +¥790mn) enhancement of tv commercials and other...

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8th 8th Business Period (FY1 Business Period (FY1 2/07 2/07 Third Quarter Operating Results Summary Third Quarter Operating Results Summary en en - - japan inc. japan inc. ( ( Stock Code: 4849) Stock Code: 4849)

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Page 1: 8th Business Period (FY12/07 · (Ad, PR expenses: +¥790mn) Enhancement of TV commercials and other promotional activities (Ad, PR expenses: +¥790mn) Enhancement of TV commercials

8th8th Business Period (FY1Business Period (FY12/072/07))Third Quarter Operating Results SummaryThird Quarter Operating Results Summary

enen--japan inc.japan inc.

((Stock Code: 4849)Stock Code: 4849)

Page 2: 8th Business Period (FY12/07 · (Ad, PR expenses: +¥790mn) Enhancement of TV commercials and other promotional activities (Ad, PR expenses: +¥790mn) Enhancement of TV commercials

8th Business Period (12/07) Third Quarter Operating Results Summary

■ 8th Business Period Q3 Operating Results Highlights and Topics

Achieved higher sales and earnings for 7th consecutive periodAchieved higher sales and earnings for 7th consecutive periodOperating Results HighlightsOperating Results Highlights

Topics After Third QuarterTopics After Third Quarter

Sales ¥15.44 billion, up 35% year-on-year Ordinary income ¥4.95 billion, up 34% year-on-year

[en] Career Change Info (Up 48% year-on-year )

[en] Career Change Consultant (Up 32% year-on-year )

[en] Temporary Placement Info (Up 26% year-on-year )

[en] Part-time Jobs Plus (Up 43% year-on-year )

Based on Jan.Based on Jan.--Sept. operating results, Sept. operating results, revised FY operating results projections revised FY operating results projections

Sales ¥23.2 billion ⇒ ¥22.5 billionNet income ¥7.0 billion ⇒ ¥7.2 billion

<<Site sales improved steadilySite sales improved steadily>>

RenewalsRenewals

Complete a major renewal of [en]Temporary Placement Info onNovember 26 aimed at furtherincreasing sales!

Upgrade to next generation-typesite, to respond to diversificationof employment

Enter new businessesEnter new businessesLaunch “[en] 高校生(koukousei)”contest& social network service mobile site for high school students only in December. Provide real name registration-typecommunities (Security considerations)Establish revenue sources in sectorsother than recruiting business

2

Launch “[en] Job Info for Students 2009”

The “Professional Work Research Conference” held at Tokyo Big Sight on October 26 attracted a record turnout of 17,395 students!3

Page 3: 8th Business Period (FY12/07 · (Ad, PR expenses: +¥790mn) Enhancement of TV commercials and other promotional activities (Ad, PR expenses: +¥790mn) Enhancement of TV commercials

8th Business Period (12/07) Third Quarter Operating Results Summary

1,3282,206

3,151

4,600

7,973

11,405

15,448

706 981 1,295 1,489

2,9113,700

4,954

0

3,000

6,000

9,000

12,000

15,000

18,000

Jan-Sep2001

(FY2001)

Jan-Sep2002

(FY2002)

Jan-Sep2003

(FY2003)

Jan-Sep2004

(FY2004)

Jan-Sep2005

(FY2005)

Jan-Sep2006

(FY2006)

Jan-Sep2007

(FY2007)

Net Sales

Ordinary Income

3

■ 8th Term, 3rd Quarter Earnings (Companywide)

(million yen)

+44%

+40%

+85%

+32%

+48%+66%

3

Sales rise 35% YOY to ¥15.4 billion, ordinary income rises 34% YOY to ¥4.9 billion.

Page 4: 8th Business Period (FY12/07 · (Ad, PR expenses: +¥790mn) Enhancement of TV commercials and other promotional activities (Ad, PR expenses: +¥790mn) Enhancement of TV commercials

8th Business Period (12/07) Third Quarter Operating Results Summary

Expenses ¥900 million lower than initial projection (–5.3%)

Lower labor costs and personnel expenses: – ¥300 millionLower advertising, public relations and sales promotion expenses: – ¥160 millionLower event expenses: – ¥120 millionOther reductions (including depreciation): – ¥320 million

Initial projection

Sales down ¥700 million from initial projection (–3.0%)

Lower sales in mid-career hiring business: ¥440 million

Lower sales in new graduate hiring business: ¥250 million

Revised projection

¥22.5billion

¥16.2billion

Sales

Expenses

Ordinary income

¥7.0billion

¥7.2billion

Initial projection Revised projection

■ Full Year Revised Operating Results Projections

¥15.3billion

¥23.2billion

Up 33.0% year-on-year

Ordinary income up ¥200 million from initial expectation (+2.9%) Up 28.4%

year-on-year

4

Page 5: 8th Business Period (FY12/07 · (Ad, PR expenses: +¥790mn) Enhancement of TV commercials and other promotional activities (Ad, PR expenses: +¥790mn) Enhancement of TV commercials

8th Business Period (12/07) Third Quarter Operating Results Summary

■ 8th Term Segment Performance

5

Com

pany

-w

ide

Mid

-car

eer

hiri

ng

busi

ness

Net Sales (million yen)

Ordinary Income

(million yen)

Ordinary Income Rate

New

gra

duat

e hi

ring

bu

sine

ss

Edu

catio

n/

Eva

luat

ion

busi

ness

2,206 3,151

13,945

1,328

9,8676,971

4,3525,776

3,7343,0411,5711,295981706

41%38%44%36%41%44%53%

2001 2002 2003 2004 2005 2006 2007

81113

142

317 33

22%29%9%

2001 2002 2003 2004 2005 2006 2007

1,328

11,405

2,206 4,6003,151

7,973

15,448

706 981 1,295 1,489 2,911 3,700 4,954

53% 45% 41%32% 37% 32% 32%

2001 2002 2003 2004 2005 2006 2007

9201,424 1,360

248

-852-137 -67-81

-33% -15% -5%

-63%

2001 2002 2003 2004 2005 2006 2007

Page 6: 8th Business Period (FY12/07 · (Ad, PR expenses: +¥790mn) Enhancement of TV commercials and other promotional activities (Ad, PR expenses: +¥790mn) Enhancement of TV commercials

8th Business Period (12/07) Third Quarter Operating Results Summary

9 ,1 6 4 1 ,4 7 9 2 ,3 4 4 1 ,0 3 38 3 0

5 9 9

6 ,2 0 2 1 ,1 1 7 1 ,8 5 8 1 ,1 4 65 8 2

5 0 0

0% 20% 40% 60% 80% 100%

[ e n ] C a re e r C h an g e I n f o [ e n ] C a re e r C h an g e C o n s u lta n t

[ e n ] T e m po ra ry P la c e m e n t I n f o [ e n ] J o b I n f o f o r S tu de n ts

[ e n ] P a rt- t im e J o bs P lu s [ e n ] O th e r

■ Sales Breakdown by Product

2006 1-3Q

※Other: Hiring outsourcing business, education/evaluation business, etc.

2007 1-3Q

54.4% 9.8% 16. 3% 10.0% 5.1% 4.4%

59.3% 9.6% 15.2% 6.7% 5.4% 3.8%

6

( million yen )

Page 7: 8th Business Period (FY12/07 · (Ad, PR expenses: +¥790mn) Enhancement of TV commercials and other promotional activities (Ad, PR expenses: +¥790mn) Enhancement of TV commercials

8th Business Period (12/07) Third Quarter Operating Results Summary

■ Transition of Quarter Performance (Companywide)

7

3,5184,308

5,514 5,135 5,083 5,2303,574

2,9092,5692,495

3,523

1,6341,9071,338933

1,4299161,0278721,012

1,538 1,782

35%31%26%

40%26%

35%34%41%

30%32%34%

05.1Q 05.2Q 05.3Q 05.4Q 06.1Q 06.2Q 06.3Q 06.4Q 07.1Q 07.2Q 07.3Q

Net Sales (million yen) Ordinary Income(million yen) Ordinary Income rate

95.1%

76.0%56.2%

47.8%43.2% 37%

48.1%

56.7%

43.7%

44.3% 21.4%

33.2%85.3%

149.7%

72.9%

19.7% 41.2% 7% 30.3%

108.2%

14.3%

64.8%

05.1Q 05.2Q 05.3Q 05.4Q 06.1Q 06.2Q 06.3Q 06.4Q 07.1Q 07.2Q 07.3Q

23%(1 ,262)24%(1,042)20%(1 ,025)

26%(1 ,320)26%(1 ,371)

17%(429)21%(531) 20%(574)

23%(795)18%(647)

30%(1 ,038)26%(645) 28%(708) 28%(823)

34%(1 ,199)

26%(925)

26%(927)

24%(1 ,269)25%(1 ,285)

32%(1 ,622)

27%(1 ,496)30%(1 ,297)

05.1Q 05.2Q 05.3Q 05.4Q 06.1Q 06.2Q 06.3Q 06.4Q 07.1Q 07.2Q 07.3Q

Labor costs relative to sales Advertising, sales promotion costs relative to sales

Sales Growth rate Ordinary Income Growth rate

Page 8: 8th Business Period (FY12/07 · (Ad, PR expenses: +¥790mn) Enhancement of TV commercials and other promotional activities (Ad, PR expenses: +¥790mn) Enhancement of TV commercials

8th Business Period (12/07) Third Quarter Operating Results Summary

(million yen) % of sales % YOYchange

(million yen) % of sales % YOYchange

Net Sales 11,405 100.0% 43.0% 15,448 100.0% 35.4%

Cost of Sales 1,048 9.2% 48.4% 1,420 9.2% 35.5%

Personnel 430 3.8% 79.9% 575 3.7% 33.7%

Other 618 5.4% 32.3% 844 5.5% 36.6%

Gross Profit 10,356 90.8% 42.5% 14,028 90.8% 35.5%

6,651 58.3% 52.0% 9,092 58.9% 36.7%

Personnel 2,297 20.1% 72.6% 3,140 20.3% 36.7%

Advertising, sales promotion 3,149 27.6% 44.7% 4,176 27.0% 32.6%

Other 1,205 10.6% 38.8% 1,776 11.5% 47.4%

Operating income 3,705 32.5% 28.2% 4,935 31.9% 33.2%

Ordinary income 3,700 32.4% 27.1% 4,954 32.1% 33.9%

Net income 2,123 18.6% 39.8% 2,770 17.9% 30.5%

Jan-Sep 2007

SGA (Sales,general&administrative)

Jan-Sep 2006

■ 8th Term Income Statement

8

(Personnel expenses: +¥840 mn)Increased personnel expenses due to business expansion, strengthened marketing

(Personnel expenses: +¥840 mn)Increased personnel expenses due to business expansion, strengthened marketing

(Ad, PR expenses: +¥1,020mn)Strengthened promotions using TVCM and station, mass transit and other media advertisements

(Ad, PR expenses: +¥1,020mn)Strengthened promotions using TVCM and station, mass transit and other media advertisements

(Sales: +¥4,040mn)・en Career Change Info: +¥2,960 mn・en Career Change Consultant: +¥360mn・en Temporary Placement Info: +¥480mn・en Part-time Jobs Plus: +¥240mn・en Job Info for Students: –¥110mn・Others: +¥90mn

(Sales: +¥4,040mn)・en Career Change Info: +¥2,960 mn・en Career Change Consultant: +¥360mn・en Temporary Placement Info: +¥480mn・en Part-time Jobs Plus: +¥240mn・en Job Info for Students: –¥110mn・Others: +¥90mn

(CGS: +¥140mn)Increase in personnel due to business expansion

(CGS: +¥140mn)Increase in personnel due to business expansion

(Other: +¥570mn)Rent, other expenses from expanded HQ floor space, increased business locations:+¥270mn, depreciation: +¥50mn, telecom expenses: +¥40mn

(Other: +¥570mn)Rent, other expenses from expanded HQ floor space, increased business locations:+¥270mn, depreciation: +¥50mn, telecom expenses: +¥40mn

(Other CGS: +¥220mn)Event costs +¥80mn, depreciation from site renewals +¥60mn, work consignment costs +¥80mn

(Other CGS: +¥220mn)Event costs +¥80mn, depreciation from site renewals +¥60mn, work consignment costs +¥80mn

Page 9: 8th Business Period (FY12/07 · (Ad, PR expenses: +¥790mn) Enhancement of TV commercials and other promotional activities (Ad, PR expenses: +¥790mn) Enhancement of TV commercials

8th Business Period (12/07) Third Quarter Operating Results Summary

(million yen) % of sales % YOYchange

(million yen) % of sales % YOYchange

Net Sales 9,867 100.0% 41.5% 13,945 100.0% 41.3%

Cost of Sales 733 7.4% 49.6% 908 6.5% 23.9%

Gross Profit 9,133 92.6% 40.9% 13,036 93.5% 42.7%

5,394 54.7% 56.0% 7,279 52.2% 34.9%

Personnel 1,615 16.4% 88.2% 2,284 16.4% 41.4%

Advertising, sales promotion 2,878 29.2% 44.8% 3,668 26.3% 27.4%

Other 901 9.1% 47.0% 1,327 9.5% 47.3%

Operating income 3,739 37.9% 23.7% 5,757 41.3% 54.0%

Ordinary income 3,734 37.8% 22.8% 5,776 41.4% 54.7%

SGA (Sales,general&administrative)

Jan-Sep 2006 Jan-Sep 2007

■ 8th Term Income Statement – Mid-Career Hiring Business

9

Mid-Career Hiring Business: [en] Career Change Info, [en] Career Change Consultant, [en] Temporary Placement Info, [en] Part-time Jobs Plus, other mid-career hiring related

(Ad, PR expenses: +¥790mn)Enhancement of TV commercials and other promotional activities

(Ad, PR expenses: +¥790mn)Enhancement of TV commercials and other promotional activities

(Sales: +¥4,070mn)・en Career Change Info: +¥2,960mn・en Career Change Consultant: +¥360mn・en Temporary Placement Info: +¥480mn・en Part-time Jobs Plus: +¥240mn

(Sales: +¥4,070mn)・en Career Change Info: +¥2,960mn・en Career Change Consultant: +¥360mn・en Temporary Placement Info: +¥480mn・en Part-time Jobs Plus: +¥240mn

(CGS: +¥170mn)Increase in contents production costs due to business expansion: +¥120mn, event costs: +¥30mn

(CGS: +¥170mn)Increase in contents production costs due to business expansion: +¥120mn, event costs: +¥30mn

(Personnel expenses:+¥660mn)Increased personnel expenses due to business expansion, strengthened marketing

(Personnel expenses:+¥660mn)Increased personnel expenses due to business expansion, strengthened marketing

(Others: +¥420mn)Rent, other expenses from expanded HQ floor space, increased business locations: +¥200mn, depreciation: +¥40mn, telecom expenses: +¥30mn

(Others: +¥420mn)Rent, other expenses from expanded HQ floor space, increased business locations: +¥200mn, depreciation: +¥40mn, telecom expenses: +¥30mn

Page 10: 8th Business Period (FY12/07 · (Ad, PR expenses: +¥790mn) Enhancement of TV commercials and other promotional activities (Ad, PR expenses: +¥790mn) Enhancement of TV commercials

8th Business Period (12/07) Third Quarter Operating Results Summary

(million yen) % of sales % YOYchange

(million yen) % of sales % YOYchange

Net Sales 1,424 100.0% 54.8% 1,360 100.0% -4.5%

Cost of Sales 301 21.1% 52.8% 495 36.4% 64.5%

Gross Profit 1,122 78.8% 55.2% 864 63.5% -23.0%

1,189 83.5% 38.1% 1,717 126.3% 44.4%

Personnel 632 44.4% 46.3% 791 58.2% 25.2%

Advertising, sales promotion 271 19.0% 44.1% 507 37.3% 87.1%

Other 286 20.1% 18.7% 419 30.8% 46.5%

Operating income -67 -4.7% - -852 -62.6% -

Ordinary income -67 -4.7% - -852 -62.6% -

Jan-Sep 2007Jan-Sep 2006

SGA (Sales,general&administrative)

■ 8th Term Income Statement – New Graduate Hiring Business

10

New Graduate Hiring Business: [en] Job Info for Students, other new graduate hiring related

(Sales: –¥60mn)・Site sales: ¥1,030mn (–¥110mn)・Other (hiring outsourcing): ¥320mn

(+¥50mn)

(Sales: –¥60mn)・Site sales: ¥1,030mn (–¥110mn)・Other (hiring outsourcing): ¥320mn

(+¥50mn)

(Personnel expenses: +¥150mn)Increased personnel expenses due to business expansion, strengthened marketing

(Personnel expenses: +¥150mn)Increased personnel expenses due to business expansion, strengthened marketing

(CGS: +¥190mn)Depreciation from site development: +¥60mn, event costs: +¥40mn, work consignment costs: +¥60mn

(CGS: +¥190mn)Depreciation from site development: +¥60mn, event costs: +¥40mn, work consignment costs: +¥60mn

(Other: +¥130mn)Rent, other expenses from expanded HQ floor space, increased business locations: +¥60mn, other

(Other: +¥130mn)Rent, other expenses from expanded HQ floor space, increased business locations: +¥60mn, other

(Ad, PR expenses: +¥230mn)Mass transit and newspaper advertising, conference-related, other

(Ad, PR expenses: +¥230mn)Mass transit and newspaper advertising, conference-related, other

Page 11: 8th Business Period (FY12/07 · (Ad, PR expenses: +¥790mn) Enhancement of TV commercials and other promotional activities (Ad, PR expenses: +¥790mn) Enhancement of TV commercials

8th Business Period (12/07) Third Quarter Operating Results Summary

(million yen) % of sales % YOYchange

(million yen) % of sales % YOYchange

Net Sales 113.7 100.0% 40.2% 142.2 100.0% 25.1%

Cost of Sales 13.1 11.5% -25.1% 15.2 10.7% 16.0%

Gross Profit 100.5 88.4% 58.0% 126.9 89.2% 26.3%

67.2 59.1% 19.1% 95.3 67.0% 41.8%

Personnel 49.8 43.8% 28.0% 63.8 44.9% 28.1%

Advertising, sales promotion 0.5 0.4% 150.0% 0.5 0.4% 0.0%

Other 16.9 14.9% -2.3% 31.0 21.8% 83.4%

Operating income 33.3 29.3% 369.0% 31.6 22.2% -5.1%

Ordinary income 33.3 29.3% 369.0% 31.6 22.2% -5.1%

SGA (Sales,general&administrative)

Jan-Sep 2006 Jan-Sep 2007

■ 8th Term Income Statement – Education/Evaluation Business

11

Page 12: 8th Business Period (FY12/07 · (Ad, PR expenses: +¥790mn) Enhancement of TV commercials and other promotional activities (Ad, PR expenses: +¥790mn) Enhancement of TV commercials

8th Business Period (12/07) Third Quarter Operating Results Summary

■ 8th Business Period Q3 Operating Results by Site – [en] Career Change Info

2,960

4,308

6,520

9,175

51.3%

40.7%

41.3%

45.5%

FY2003 FY2004 FY2005 FY2006

12

(million yen)

YOY growth

Ann

ual S

ales

Tre

ndQ

uart

erly

Sal

es T

rend

(million yen)

448 490 535 598 686 709 717825 854 932

3 ,147

1 ,1431 ,379

1 ,5021 ,695

3 ,0522 ,964

2 ,369

2 ,972

1 ,8901 ,942

1 ,479

1 ,845

02.1Q 2Q 3Q 4Q 03.1Q 2Q 3Q 4Q 04.1Q 2Q 3Q 4Q 05.1Q 2Q 3Q 4Q 06.1Q 2Q 3Q 4Q 07.1Q 2Q 3Q

Achieved record high sales in Q3 of ¥3.14bn, up ¥770mn or 32.8% year-on-year.

Steady growth in sales of hiring outsourcing related products and planning for clerical work.

Strong demand from manufactures and the financial institutions in addition to IT.

Job seeking registered users rose to 1.80 million as of the end of September. Customer satisfaction levels remained high.

Corporate client satisfaction of 91.4% (March survey) Job seeker satisfaction of 96.5% (September survey)

Page 13: 8th Business Period (FY12/07 · (Ad, PR expenses: +¥790mn) Enhancement of TV commercials and other promotional activities (Ad, PR expenses: +¥790mn) Enhancement of TV commercials

8th Business Period (12/07) Third Quarter Operating Results Summary

■ 8th Business Period Q3 Operating Results by Site – [en]Career Change Consultant

807

1,557

1,011

1,208

28.9%19.5%

26.8%

25.3%

FY2003 FY2004 FY2005 FY2006

13

(million yen)

YOY growth

Ann

ual S

ales

Tre

ndQ

uart

erly

Sal

es T

rend

(million yen)

131154 167 184 196 192 200 218 225

247 263 275 273293

318 324344

365406

439463

492522

02.1Q 2Q 3Q 4Q 03.1Q 2Q 3Q 4Q 04.1Q 2Q 3Q 4Q 05.1Q 2Q 3Q 4Q 06.1Q 2Q 3Q 4Q 07.1Q 2Q 3Q

Against the backdrop of an excellent market, Q3 sales reached a record high of ¥520mn, up ¥110mn or 28.5% year-on-year. en-japan retained its dominant No. 1 position in the industry.

Companies listing jobs on our site totaled 371 firms as of the end of September, up 59 companies or 18% year-on-year. Our average unit price remained at a high level.

We upgraded the corner for highly-qualified job applicants in order to obtain higher unit prices.

Also expanded our corporate client base through growth in the number of job placement agencies.

The number of registered users also expanded steadily to 383,000 as of the end of September, up 94,000 or 32.6% year-on-year.

Page 14: 8th Business Period (FY12/07 · (Ad, PR expenses: +¥790mn) Enhancement of TV commercials and other promotional activities (Ad, PR expenses: +¥790mn) Enhancement of TV commercials

8th Business Period (12/07) Third Quarter Operating Results Summary

1,694

2,557

983

605

72.3%

50.9%60.9%

62.4%

FY2003 FY2004 FY2005 FY2006

■ 8th Business Period Q3 Operating Results by Site – [en]Temporary Placement Info

14

(million yen)

YOY growth

Ann

ual S

ales

Tre

ndQ

uart

erly

Sal

es T

rend

77 87 96 116 132 139 157 177 200233 255

295

388448

577614

665698

743

820779

516

342

02.1Q 2Q 3Q 4Q 03.1Q 2Q 3Q 4Q 04.1Q 2Q 3Q 4Q 05.1Q 2Q 3Q 4Q 06.1Q 2Q 3Q 4Q 07.1Q 2Q 3Q

(million yen)

Achieved record high sales in Q3 of ¥820mn, up ¥150mn or 23.3% year-on-year.

Based on the effectiveness of our sites and excellent cost-performance profile we provide, we are selected more often by our clients. Companies listing jobs on our site totaled 613 firms as of the end of September, up 82 companies or 15% year-on-year.

Renew our site on November 26 to achieve further sales growth.

Released Test “3E-is,” a new product for temporary staffing agencies, in August.

The number of registered users also expanded steadily to 410,000 as of the end of September, up 110,000 or 36.2% year-on-year.

Page 15: 8th Business Period (FY12/07 · (Ad, PR expenses: +¥790mn) Enhancement of TV commercials and other promotional activities (Ad, PR expenses: +¥790mn) Enhancement of TV commercials

8th Business Period (12/07) Third Quarter Operating Results Summary

■ 8th Business Period Q3 Operating Results by Site – [en] Part-time Jobs Plus

299

838

180%

FY2005 FY2006

15

(million yen)

YOY growth

Ann

ual S

ales

Tre

nd

Qua

rter

ly S

ales

Tre

nd

(million yen)

18

64

93

124

169

193

218

256272 275 282

05.1Q 2Q 3Q 4Q 06.1Q 2Q 3Q 4Q 07.1Q 2Q 3Q

Achieved record high sales in Q3 of ¥280mn. Up ¥60mn or 29.0% year-on-year.

Companies listing jobs on our site totaled 400 firms as of the end of September, up 130 companies or 48% year-on-year.

Strong demand from distributors and real estate companies (sales staff).

The number of registered users also rose steadily, to 173,000 as of the end of September, up 68,000 individuals or 64% year-on-year.

Applies from job seekers through mobile sites increased to three times the level of the same period in the previous year.

Page 16: 8th Business Period (FY12/07 · (Ad, PR expenses: +¥790mn) Enhancement of TV commercials and other promotional activities (Ad, PR expenses: +¥790mn) Enhancement of TV commercials

8th Business Period (12/07) Third Quarter Operating Results Summary

2 ,051

1 ,255

501

636

1,572

2,500

147.2%

59.0%

FY2004 FY2005 FY2006

449

317

135

■ 8th Business Period Q3 Operating Results by Site – [en] Job Info for Students

16

(million yen)

YOY growth

* FY2004 includes 7 months of sales from business transferred from Nihon Brain Center

Others

Net Sales

Ann

ual S

ales

Tre

nd

(million yen) YOY growth

Qua

rter

ly S

ales

Tre

nd

* 2Q/2004 includes sales from the month of June only

384

1,077

588

372462

651

315271335411

42

184

605

371

-35%

71%58%

87%

65%

37%38% 31%

0%

Others 28 41 67 118 86 25 88 143 89 44 172 178 87 62

Net Sales 13 144 343 217 185 289 563 319 283 544 905 428 283 321

Growth 70.9% 58.7% 38.0% 37.3% 86.9% 65.4% 31.0% -0.2% -34.7%

04.2Q 3Q 4Q 05.1Q 2Q 3Q 4Q 06.1Q 2Q 3Q 4Q 07.1Q 07.2Q 07.3Q

3Q sales were 35% lower year-on-year, reflecting a change in accounting method for sales. Without this change, sales were up 44% year-on-year to ¥840mn.

We formally opened the 2009 site (employment site for students graduating in 2009) in October.

Companies listing jobs on our site at the grand opening totaled 834 firms, up 16% year-on-year.

The number of registered users at the grand opening was up 69% year-on-year. 2008 site: 123,185 users ⇒ 2009 site: 208,013 users

Page 17: 8th Business Period (FY12/07 · (Ad, PR expenses: +¥790mn) Enhancement of TV commercials and other promotional activities (Ad, PR expenses: +¥790mn) Enhancement of TV commercials

8th Business Period (12/07) Third Quarter Operating Results Summary

Explanation of Q3operating results

Current FY operatingresults forecast Future outlook

The price-cutting stance adopted by the two leading companies negatively affected our new client development.

Spent greater time on efforts to obtain orders, which resulted in longer delivery time for services.

Q1-Q3 sales were ¥1,360mn, with service orders outstanding at end 3Q of ¥1,490mn

⇒ Total of ¥2,850mn secured at the end of Sept. (Up 38% year-on-year)

Percentage of 3,250mn sales forecast achieved: 88% (prior year: 82% )Project ordinary income of ¥100mn from reduced budget for CGS and personnel expenses

FY forecastSales: ¥3,250mn

Ordinary income: ¥100mn

Q3 sales were ¥380mn(70% of budget)

Confident we willcontinue increasing

share in future

Increase Registered users(At grand opening)Site for 2008 graduates: 123,185Site for 2009 graduates: 208,013(Up 69% year-on-year)Increase average number of entries one week after opening:About 6X 2008 siteMaintain at high levelIncrease repeater percentage07→08 site: 55%08→09 site: Keep at 60~65%

■ Explanation of Operating Results in Our New Graduate Business

17

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8th Business Period (12/07) Third Quarter Operating Results Summary

Launched high school student-only “[en] 高校生(koukousei)” contest and social network service mobile site!Objectives:

Provide a space where students can participate safely in mobile communications, where problems such as young people falling victims to scams have occurred frequently recently at some sites. Establish a basis for earnings other than Job Advertising.

Characteristics:Focus on participatory contests in a wide variety of fields related to hobbies, language and sports, to encourage high school students to immerse themselves in areas of their own interest, provide opportunities for achievement and stimulate a community of peers engaged in the same interest.

Members restricted to high school students - Avoids problems arising from false online identities.

Introduces a point system for members and grants privileges based on the number of points.

Revenue sources:1. E-mail magazine and banner advertising fees2. Certified community participation fees from sponsors3. Contest advertisement insert fees4. Others (income from affiliate advertisements, sampling, etc.)

Initial FY plan Sales : ¥300 million

■ Future Business Strategy

18

-New Business Developed by the New Business Promotion Office--New Business Developed by the New Business Promotion Office-

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8th Business Period (12/07) Third Quarter Operating Results Summary

Talent Alliance (Beijing) Technology Development Limited, our JV in China, continues to grow steadily

2007 Q1-Q3 operating results> Sales: 11.28mn yuan (¥180mn)

Ordinary income: ¥0.94mn yuan (¥15.0mn)2007 full-year projection > Sales: 15.0mn yuan (¥240mn)

Ordinary income: 1.0mn yuan (¥16.0mn)⇔ FY2006: -4.8mn yuan (-¥73.0mn)

19

Investment forecast for current FY: 10 projects, ¥300 millionInvestment as of September 30

Number of investment projects : 7Investment amount : ¥210mn

New investments in 3QNumber of investment projects : 2Investment amount: ¥80mn

Upgraded [en] Temporary Placement Info to next-generation website!Objectives:

1. Broaden user bracket2. Increase orders from large clients3. Respond to diversification of users’ needs

Characteristics:1.Site design is easy-to-use, even for first-time

temporary placement users2.Enhanced information to include professional and

service occupational categories, in addition to regular clerical works

3.Enhanced suburban dispatch information to respond to workers’ need for jobs close to home

-Renewal of Temporary Placement Website--Renewal of Temporary Placement Website-

-VC Business--VC Business- -Overseas Business--Overseas Business-

■ Future Business Strategy

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8th Business Period (12/07) Third Quarter Operating Results Summary

0

10,000

20,000

30,000

40,000

(%)

0%

20%

40%

60%

80%

100%

Net Sales 11,491 16,919 22,500 29,200 34,200

Ordinary Income 3,827 5,607 7,200 9,500 11,500

Number of employees 538 879 1,120 1,300 1,430

Ordinary Income Rate 33.3% 33.1% 32.0% 32.5% 33.6%

FY2005 FY2006FY2007

(Revisedprojection)

FY2008(projection)

FY2009(projection)

+33%

+30%

+47%

+17%

(million yen)

■ Performance Forecast (Companywide)

20

Initial projectionsSales: ¥23,200mn

Ordinary income: ¥7,000mn

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8th Business Period (12/07) Third Quarter Operating Results Summary 21

Overview

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8th Business Period (12/07) Third Quarter Operating Results Summary 22

■ Overview

【 Name 】 en-japan inc.

【 Establishment 】 January 14, 2000

【 Representative 】 Michikatsu Ochi ( President & CEO )

【 Headquarters 】 Shinjuku I-land Tower, 6-5-1 Nishi-Shinjuku, Shinjuku-ku, Tokyo

【 Total Stockholder’s Equity 】 JPY 11,725 million (as of end of Sep 2007)

【Stock Listing 】 Nippon New Market “Hercules”

【Fiscal Year 】 January 1 – December 31

【 Number of Employees 】 1,126 (as of end of Sep 2007)

【 Number of Outstanding Shares】 242,365(as of end of Sep 2007)

(1) Internet job recruitment service【 Business Description 】

(2) Consultation on recruitment, employee education and personnel evaluation system

22

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8th Business Period (12/07) Third Quarter Operating Results Summary 2323

[en] Career Change Info[en] Career Change Info

[en] Career Change Consultant

[en] Career Change Consultant

[en] Temporary Placement Info

[en] Temporary Placement Info

Planning, proposing, interviewing and

creating job advertisements

Corporate informationRecruitment information

Scouting

Providing recruitment information

ScoutingResume coaching

RegistrationApplication

Internet site

Job advertisement feeFree of charge

[en] Job Info for Students[en] Job Info for Students

[en] Part-time Jobs Plus[en] Part-time Jobs Plus

■ Business Model

ClientsJob seekers

General Companies

Job placement agencies

Temporary staffing companies

“Person who want to apply to

companies directly”

“Person who want to register with

temporary dispatch companies”

“Person who want to register with

recruiting companies”

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■ Our Main Business Contents - Sites We Operate

[en]Career Change Info

[en]Career Change Consultant

[en]Temporary Placement Info

[en]Job Info for Students

[en]Part-time Jobs Plus

* Sales breakdown are based on FY12/06 data

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8th Business Period (12/07) Third Quarter Operating Results Summary 25

■ en-japan inc. IR Administration OfficeTEL:03-3342-4506 Mail: [email protected] URL:http://corp.en-japan.com

Cautionary StatementThis material is for informational purpose only. You are fully responsible for the final decision to invest in the company. The

statements included in these documents that are not historical facts are forward-looking statements which reflect management’s current views with respect to certain future events and financial performance of the company. The company makes no guarantee or promise as to the accuracy or completeness of the information provided here and shall not be liable for any errors or delays in the

content, or for any actions taken in reliance thereon. The content is subject to change without notice hereon.