Link and Motivation Inc. - IR Webcasting€¦ · Due to capturing video and print media needs in...
Transcript of Link and Motivation Inc. - IR Webcasting€¦ · Due to capturing video and print media needs in...
Copyright © 2015 by Link and Motivation Group All rights reserved.
Link and Motivation Inc. Consolidated Financial Information
for the Nine Months Ended September 30, 2015
Copyright © 2015 by Link and Motivation Group All rights reserved.
Progress of Measures to Prevent a Recurrence of Improper Accounting
Based on the findings of the Special Investigation and Verification Committee,
we are steadily implementing measures to prevent a recurrence
Improve approval and purchasing processes, strengthen
checks and balances
⇒ Began application using new restructured processes
Raise awareness of compliance
⇒ Conducted training for all Group employees in early October
⇒ Start of training with enhanced content from mid-November
Strengthen and expand internal auditing
⇒ Expand the effective scope of evaluation of internal controls
Copyright © 2015 by Link and Motivation Group All rights reserved.
First Nine Months of 2015: Presentation Agenda
1. Announcement of Results for the Nine Months Ended
September 30, 2015
2. Topics
① Steady Expansion of Incubation Business
② Start of Wellness Management Council in December 2015
③ Promoting Women’s Empowerment at LMG: Current Status and
Policies
Copyright © 2015 by Link and Motivation Group All rights reserved.
1 Announcement of Results
for the Nine Months Ended
September 30, 2015
Copyright © 2015 by Link and Motivation Group All rights reserved. 1-1
Link and Motivation Group Operating Structure
① Organizational & Personnel
Consulting Business
② Event & Media Business
③ Recruiting & Temp
Agency Business
④ ALT Placement Business
Business Division Consumer Division
⑤ Schools Business
⑥ Entertainment Business
Copyright © 2015 by Link and Motivation Group All rights reserved.
Overview of Business Structure
1-2
① Organizational & Personnel
Consulting Business
⑤ Schools Business
② Event & Media Business
③ Recruiting & Temp
Agency Business
④ ALT Placement Business
⑥ Entertainment Business
Business Division
Consumer Division
Organizational/personnel consulting focused on employee motivation
⇒ Offers organizational diagnostics, education and training, HR system
building, recruiting consulting, etc.
Event planning and management/media production focused on
organizational communication
⇒ Offers anniversary events, recruiting events, PR/IR tools, webcasting, etc.
Recruiting/temp staffing to meet corporate HR needs
⇒ Offers recruitment of new graduates/mid-career hires, temp
staffing for sales and clerical workers, etc.
Dispatch of ALTs to meet needs for teachers at educational institutions
⇒ Offers ALT dispatch/contracts for elementary/secondary schools
throughout Japan
School management with the concept of “developing i-companies”
⇒ Management of career schools such as Aviva PC schools and Daiei
qualification schools; management of Motivation Academia preparatory schools
Providing entertainment with the concept of “creating quality of life” for individuals
⇒ Management of Link Tochigi Brex basketball team, Link Dining restaurant
LM Group
Copyright © 2015 by Link and Motivation Group All rights reserved.
(¥ million) 2014 Results 2015 Results YoY Change 2015
Plan vs. Plan
Net Sales 20,594 23,539 +14.3% 24,500 -960
Gross Profit 7,388 7,715 +4.4% 8,200 -484
SG&A
Expenses 6,511 7,492 +15.1% 7,200 +292
Operating
Income 877 223 -74.6% 1,000 -776
Ordinary
Income 843 177 -78.9% - -
Net Income 283 -14 - - -
Due to the addition of Interac to the scope of consolidation, net sales increased substantially YoY,
but fell short of the plan.
Due to an increase in the cost ratio in the Business Division, gross profit also fell short of the plan.
Due to increases from dealing with improper accounting, establishing integrated offices, renewing
core systems and other factors, SG&A expenses exceeded the plan and operating income and all
line items below it decreased substantially YoY.
1-3
Consolidated Statements of Operations (Results/YoY Change/vs. Plan)
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Consolidated Statements of Operations Net Sales/Gross Profit: Factors in Difference from Plan
(¥ million)
8,000
7,000
6,000
5,000
4,000
2,000
3,000
1,000
0
2014 2015
Net Sales
Costs
Net Sales
Costs
Event & Media
Business
Event & Media
Business
Organizational
& Personnel
Consulting
Business Organizational
& Personnel
Consulting
Business
Organizational
& Personnel
Consulting
Business Organizational
& Personnel
Consulting
Business
Event & Media
Business
Event & Media
Business
The Organizational & Personnel Consulting Business and the Event & Media Business in the Business Division
had planned on a substantial increase in sales from the opportunity presented by the change in timing of
corporate recruiting activities, but because they were unable to take full advantage of the opportunity, sales fell
short of the plan.
In addition, because they secured outsourcing and made advance investments in personnel based on the
planned sales, costs increased substantially YoY and gross profit fell short of the plan.
Copyright © 2015 by Link and Motivation Group All rights reserved.
(¥ million) 2014
Results
2015
Results YoY Change
Personnel Expenses 2,791 3,135 +12.3%
Recruiting, Training and Welfare Expenses 307 381 +24.1%
Rent 448 508 +13.4%
Office and System Expenses 575 781 +35.8%
Sales-related Expenses 1,361 1,405 +3.2%
Transportation and Other Expenses 534 573 +7.3%
Amortization of Goodwill 492 550 +11.8%
Expenses for Dealing with Improper Accounting - 161 -
Total SG&A Expenses 6,511 7,492 +15.1%
Consolidated Statements of Operations SG&A Expenses: Factors in Difference from Plan
Assumed an overall YoY increase due to addition of Interac Co., Ltd. (amount of impact: ¥629 million)
Due to establishment of integrated offices and renewal of core systems to promote business synergy within the
Group, office and system expenses temporarily increased. (amount of impact: ¥163 million)
As a result of dealing with improper accounting, recorded one-time expenses for auditor compensation, etc.
(amount of impact: ¥161 million)
1-5
Copyright © 2015 by Link and Motivation Group All rights reserved.
(¥ million)
[Gross profit in brackets]
2014
Results
2015
Results YoY Change
Business
Division
Sales 15,061 18,437 +22.4%
Gross
Profit [5,630] [5,681] +0.9%
Consumer
Division
Sales 6,334 5,901 -6.8%
Gross
Profit [2,156] [2,297] +6.5%
1-6
In the Business Division, with the contribution of the addition of Interac Co., Ltd. to the scope of consolidation,
sales increased substantially YoY. However, with the impact of increased outsourcing costs in the field of
recruiting, gross profit increased slightly YoY.
In the Consumer Division, due to the impact of closure or consolidation of unprofitable locations in the Schools
Business, sales decreased YoY. However, by improving the profit structure, gross profit increased YoY.
Sales and Gross Profit by Segment (Results/YoY Change)
Copyright © 2015 by Link and Motivation Group All rights reserved.
(¥ million)
[Gross profit in brackets]
2014
Results
2015
Results
YoY
Change
① Organizational & Personnel
Consulting Business
4,377 4,858 +11.0%
[2,662] [2,332] -12.4%
② Event & Media Business 2,236 2,435 +8.9%
[801] [598] -25.3%
③ Recruiting & Temp
Agency Business
5,460 5,636 +3.2%
[1,340] [1,339] -0.0%
④ ALT Placement Business* 4,499 7,090 +57.6%
[1,120] [1,836] +63.9%
1-7
(Results/YoY Change)
① The Organizational & Personnel Consulting Business captured needs for manager training and sales
increased substantially, but due to an increase in outsourcing costs in the recruiting field, gross profit decreased
substantially.
② The Event & Media Business captured needs for video and print media and sales increased, but due to an
increase in outsourcing costs in the recruiting field, gross profit decreased substantially.
③ The Recruiting & Temp Agency Business captured corporate needs to increase personnel and sales increased,
but due to high personnel procurement costs, gross profit was basically unchanged.
④ In the ALT Placement Business, sales and gross profit both grew steadily as the number of instructors
increased smoothly.
* 2014 results are for April-September 2014. * ALT (Assistant Language Teacher): Foreign language
teaching assistant in elementary and middle schools
Business Division: Sales and Gross Profit by Business
Copyright © 2015 by Link and Motivation Group All rights reserved.
(¥ million) 2014
Results
2015
Results YoY Change (¥ million)
2014
Results
2015
Results YoY Change
① Organizational & Personnel
Consulting Business 4,377 4,858 +11.0% ③
Recruiting & Temp
Agency Business 5,460 5,636 +3.2%
Package 1,611 1,785 +10.8% Store temp staff 4,416 4,394 -0.5%
Consulting 2,167 2,002 -7.6% Sales temp staff 145 107 -26.3%
Outsourcing* 224 660 +194.5% Office temp staff 52 440 +754.6%
Database 270 290 +7.7% Contract sales* 446 228 -48.9%
Member services 106 121 +13.7% New graduates 360 407 +13.3%
② Event & Media Business 2,236 2,435 +8.9% Mid-career 42 60 +42.7%
Event production 1,600 1,643 +2.7% ④ ALT Placement
Business 4,499 7,090 +57.6%
Media production 637 793 +24.4%
(Results/YoY Change)
① In the Organizational & Personnel Consulting Business, due to stronger promotion of manager training,
package sales increased substantially. Due to capturing needs for corporate contract sales, outsourcing
increased substantially YoY.
② In the Event & Media Business, despite the impact of fewer recruiting events, event production increased YoY.
Due to capturing video and print media needs in the PR and IR fields, media production increased substantially
YoY.
③ In the Recruiting & Temp Agency Business, new graduate and mid-career hiring, which have been areas of
focus, increased substantially YoY. Office temp staff increased substantially YoY due to success in strengthening
links with the Schools Business in the Consumer Division.
1-8
* Contract sales in ③ are recorded under Outsourcing in ① from
the second quarter of 2015.
Business Division: Product Sales by Business
Copyright © 2015 by Link and Motivation Group All rights reserved.
(¥ million)
[Gross profit in brackets]
2014
Results
2015
Results
YoY
Change
⑤ Schools Business
5,875 5,388 -8.3%
[1,975] [2,095] +6.1%
⑥ Entertainment Business
483 533 +10.3%
[189] [208] +9.9%
Consumer Division: Sales and Gross Profit by Business
In the Schools Business, due to the closure or consolidation of unprofitable locations (128 schools
→ 108 schools), sales decreased YoY. On the other hand, by improving the profit structure, gross
profit increased YoY.
In the Entertainment Business, due to the increased number of games as the Link Tochigi BREX
advanced to the playoffs, and increases in ticket and sponsorship income, sales increased
substantially YoY and gross profit increased.
1-9
(Results/YoY Change)
Copyright © 2015 by Link and Motivation Group All rights reserved.
(¥ million) 2014 2015 YoY
Change Results % of total Results % of total
⑤ Schools Business 5,875 - 5,388 - -8.3%
[1,975] [2,095] +6.1%
PC courses 3,067 52% 2,678 50% -12.7%
Civil servant courses 654 11% 694 13% +6.1%
Accounting courses 522 9% 423 8% -19.0%
National exam courses 370 6% 388 7% +4.9%
Corporate training, etc. 668 11% 786 15% +17.7%
Sales of educational
materials, etc. 317 5% 246 5% -22.4%
Sales of tests, etc. 101 2% 63 1% -37.6%
Preparatory schools 177 3% 111 2% -37.6%
⑥ Entertainment Business 483 - 533 - +10.3%
[189] [208] +9.9%
Consumer Division: Product Sales by Business
Amid an overall decrease in sales due to closure or consolidation of locations, sales of civil servant courses and
national exam courses remained firm and increased YoY.
PC courses for new employees, offered in coordination with the Business Division, performed well and corporate
training, etc. increased substantially YoY.
Preparatory schools decreased substantially YoY with the impact of the strategic withdrawal from the Kashiwa
School. However, with solid performance by the Jiyugaoka School, existing schools (Shibuya School, Jiyugaoka
School) increased substantially YoY.
1-10
(Results/YoY Change)
Copyright © 2015 by Link and Motivation Group All rights reserved.
(¥ million) Dec. 31, 2014 Sept. 30, 2015 Change
Current Assets 6,198 6,479 +281
Property and
Equipment 11,687 12,207 +520
Assets Carried
Over 10 7 -3
Total Assets 17,896 18,694 +798
Current Liabilities 7,785 9,494 +1,709
Long-term
Liabilities 3,276 2,756 -520
Net Assets 6,834 6,443 -391
Total Liabilities and
Net Assets 17,896 18,694 +798
Consolidated Balance Sheets (Results/Change)
Property and equipment increased substantially due to the establishment of integrated offices and
renewal of core systems.
Current liabilities increased substantially due to short-term borrowings for funds to pay taxes.
Long-term liabilities decreased steadily due to the regular repayment of long-term debt.
Net assets decreased due to payment of dividends.
1-11
Copyright © 2015 by Link and Motivation Group All rights reserved.
Scheduled Third-Quarter Dividend for 2015
・ A dividend of 110 yen is scheduled to be paid on Friday, December 25,
as originally planned.
First Quarter
(Actual)
Second Quarter
(Actual)
Third Quarter
(Scheduled)
Fourth Quarter
(Scheduled)
Dividend per
unit 110 yen 110 yen 110 yen 110 yen
Dividend Policy for 2015
・Dividends paid quarterly
1-12
Third Quarter of 2015 Dividends
Copyright © 2015 by Link and Motivation Group All rights reserved.
(¥ million) 2014 Results
Before Revision After Revision
2015
Forecast YoY Change
2015
Forecast YoY Change
Net Sales 28,873 33,000 +14.3% 31,800 +10.1%
Operating
Income 1,751 1,930 +10.2% 1,050 -40.0%
Ordinary
Income 1,665 1,860 +11.7% 1,000 -39.9%
Net Income 950 1,060 +11.6% 680 -28.4%
1-13
Revision of Forecast
Although results for the fourth quarter are expected to be basically in line with the plan,
each level of the forecast has been revised downward to reflect the results of the first
nine months.
Copyright © 2015 by Link and Motivation Group All rights reserved.
Topics 2 ① Steady Expansion of Incubation Business
② Start of Wellness Management Council in December 2015
③ Promoting Women’s Empowerment at LMG: Current
Status and Policies
Copyright © 2015 by Link and Motivation Group All rights reserved.
Completed investment in Blue Wall Japan Inc.
We will continue to invest in growing venture companies, with a targeted investment rate of 3% to 10%,
and provide support in the areas of organization and personnel.
① RichMedia Co., Ltd.
⑥ FiNC inc.
③ AgentGate, Inc.
④ FROM SCRATCH Co., Ltd.
② Uchinavi, Ltd.
⑤ Akatsuki Inc.
⑦ Neo Career Co., Ltd.
⑨ schoo Inc.
⑩ raksul, Inc.
⑪ renoveru co., ltd.
⑬ PLAN-B co., Ltd.
⑭ Innovation Inc.
New Investment November 4
⑧ Leading Mark, Inc.
⑫ LiB, Inc.
⑮ Blue Wall Japan Inc.
Business: Peer-to-peer lending for corporations
Topic 1: Steady Expansion of Incubation Business
2-1
Copyright © 2015 by Link and Motivation Group All rights reserved.
Broadening wellness management,
which promotes the physical and mental health of employees, throughout society
with the following 20 inaugural members, including Link and Motivation
2-2
Topic 2: Start of Wellness Management Council in December 2015
All companies will share their measures and data on wellness management.
In addition to being used within the companies, data collected will also be disseminated in
Japan and overseas to broaden the circle of activities.
Observers: Kanagawa Prefecture and Yokosuka City
Copyright © 2015 by Link and Motivation Group All rights reserved.
Based on the act to promote women’s role in the workplace passed in August 2015,
Link and Motivation’s policies on promoting the empowerment of women and their
current status are as follows.
① Ratio of
females among
new hires
② Gender
difference in
length of service
③ Ratio of female
managers
54.1% 40 women
34 men
-2.3 years Women: 6.5 years
Men: 8.9 years
15.1% Female managers: 25
All managers: 166
Current Status
Maintain
50% level
2 years or less
20-30%
Policy
Topic 3: Promoting Women’s Empowerment at LMG:
2-3
Current Status and Policies
Copyright © 2015 by Link and Motivation Group All rights reserved.
Motivation Factors
Company
foundation
Principles/
Strategies
Business
content
Job
content
Organizational
climate
Personal
appeal
Facility
environment
System/
Compensation
Direct
supervisor
Workplace
conditions
Image of Analysis Results
Magellan Motivation Survey Note: LMG product
Expectation level (toward company)
Satisfaction level (toward company) Viewed on 2 axes
Topic 3: Promoting Women’s Empowerment at LMG:
2-4
High
Expectation
Hig
h
Satis
factio
n
Lo
w
Low
Current Status and Policies
Copyright © 2015 by Link and Motivation Group All rights reserved.
Motivation Index (MI) ○ Motivation index for an organization decided based
on the results of the motivation survey
○ Comprehensively calculated from factors including
expectations toward the company, satisfaction with
the company and their degree of consistency
④ Gender
difference in MI
values
-1.2 Women: 79.6 (A Rank)
Men: 80.8 (A Rank)
Current Status
Maintain the
same level
Policy
In addition to the indicators required by society, we add our original indicator to further
promote the empowerment of women.
Topic 3: Promoting Women’s Empowerment at LMG:
2-5
Current Status and Policies
Copyright © 2015 by Link and Motivation Group All rights reserved.
Link and Motivation Inc. Consolidated Financial Information
for the Nine Months Ended September 30, 2015