Insource Co., Ltd.
Q3 FY19 Cumulative Consolidated Financial Results (October 1,2019 to June 30, 2020)
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Disclaimer Regarding Forward-looking Statements
- This report contains estimates and targets pertaining to the future plans and business results of the Insource Group (Insource Co., Ltd and our affiliated companies). Such statements are based on information available at the time of the report's production and based on potential risks and uncertainties. Actual results may differ materially from estimates and targets contained herein.
- Unless otherwise noted, financial statements contained herein are presented in accordance with generally accepted accounting principles in Japan.
- The Group assumes no obligation to update or revise any forward-looking statements to reflect events or circumstances after the date on which the statements are made or to reflect new information, changes in our expectations or the occurrence of anticipated or unanticipated events or circumstances.
- Information in this report regarding companies other than the Group is quoted from public and other sources. We do not guarantee the accuracy of this information.
- This report does not constitute an invitation or solicitation of an offer to subscribe for or purchase any securities (herein referred to as "solicitation activities") and neither this report nor anything contained herein shall form the basis for any contract or commitment whatsoever.
Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「Plants」「WEBinsource」are registered trademarks of Insource Co., Ltd. | 1 |
Contents
Chap. 01 The impact of coronavirus crisis on Insource Group and our group's response as of July 27, 2020
Chap. 02 3Q FY19 Cumulative Consolidated Financial Highlights and Forecast for FY19 (ending September 30, 2020)
Chap. 03 3Q FY19 Cumulative Consolidated Financial Results
Chap. 04 To improve our performance from 4Q onwards
Company Profile & Business ActivitiesCopyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「Plants」「WEBinsource」are registered trademarks of Insource Co., Ltd. | 2 |
Chap. 01 The impact of coronavirus crisis on Insource Group and our group's response as of July 27, 2020
Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「Plants」「WEBinsource」are registered trademarks of Insource Co., Ltd. | 3 |
Performance of 3Q FY19 - Showing Signs of Recovery from June
■ Sales increased by 117 million yen from previous month after hitting the bottom at 50.7% YOY in May and recovering to 64.5% YOY in June.
April MOM | May | MOM | June | MOM July(*1) MOM |
Consolidated | 370 | ▲2 | 177 | ▲192 | 295 | +117 | 370 | |
net sales | +74 | |||||||
(▲251) | (▲172) | (▲162) | (▲153) | |||||
(YOY) | (59.6%) | (50.7%) | (64.5%) | (70.8%) | ||||
Net sales: | ▲93 | +55 | 209 | |||||
On-Site | 175 | +89 | 81 | 136 | +73 | |||
Training | (▲192) | (▲139) | (▲138) | (▲123) | ||||
(47.7%) | (36.8%) | (49.7%) | (62.8%) | |||||
(YOY) | ||||||||
Net sales: | 124 | +80 | 43 | ▲81 | 88 | +45 | 81 | |
Open | ▲7 | |||||||
Seminars | (▲80) | (▲56) | (▲50) | (▲72) | ||||
(60.8%) | (43.6%) | (63.9%) | (52.9%) | |||||
(YOY) |
*1 The numbers shown for July are the forecast figures as of July 22.
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Status of Training Businesses
■ Both On-Site Training and Open Seminars show signs of recoveries after hitting the lowest in May. ■ The number of On-Site Training and the number of attendees at Open Seminars, both conducted online, change at the same level. It is expected that a certain number of trainings will be conducted online for a while.
April | MOM | May | MOM | June | MOM | July(※1) | MOM | |||||||||||||||||
On-Site Training: | ||||||||||||||||||||||||
+401 | ▲438 | +279 | +407 | |||||||||||||||||||||
Number of trainings | ( | 703 | ( | 265 | ( | 544 | ( | 951 | ||||||||||||||||
conducted(times) | %) | %) | %) | %) | ||||||||||||||||||||
(YOY) | 44.2 | 24.4 | 42.9 | 61.4 | ||||||||||||||||||||
Among above, number | +169 | +20 | ▲5 | +24 | ||||||||||||||||||||
of online | 172 | 192 | 187 | 211 | ||||||||||||||||||||
trainings(times) | (24.5%) | (72.5%) | (34.4%) | (22.2%) | ||||||||||||||||||||
(composition ratio) | ||||||||||||||||||||||||
Open Seminars: | + | + | + | |||||||||||||||||||||
Number of | 5,396 | 1,992 | ▲ | 3,404 | 2,898 | 3,286 | ||||||||||||||||||
3,417 | 906 | 388 | ||||||||||||||||||||||
Attendees(attendees) | ( | 66.0 | %) | ( | 42.0 | %) | ( | 47.4 | %) | ( | 44.0 | %) | ||||||||||||
(YOY) | ||||||||||||||||||||||||
Among above, number | ||||||||||||||||||||||||
of people who took | 4,642 | - | 1,971 | ▲2,671 | 2,008 | +37 | 1,386 | ▲622 | ||||||||||||||||
online(attendees) | ( | 86.0 | %) | ( | 98.9 | %) | ( | 69.3 | %) | ( | 42.2 | %) | ||||||||||||
(composition ratio) | ||||||||||||||||||||||||
*1 The figures for July are estimated as of July 22. They are subject to additions and cancellations. |
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Our Efforts for 3Q FY19
- Enhanced non-face-to-face services with "speed and focus" in the coronavirus c risis
April Offered new employees' trainings online on a massive scale,
Developed an online training management system promptly
・Started from full-fledged online trainings for new employees (conducted 1,197 times, 25,237 people attended during 3Q)
・Promoted IT adoption to manage Online Trainings (by automating operations specific to online services such as sending Meeting IDs) ・Developed contents to solve social issues targeting the post-coronavirus crisis
⇒Started online seminars "Insource Energy Forum - Japan Solution" for free
May Offered only Online Trainings mostly, Enhanced non-face-to-face services
・Almost all of the Trainings continued taking place online due to the extension of state of the emergency
・Enforced management services for Online Trainings (started offering services which made attendees possible to print out textbooks at convenience stores "7-Eleven"(*))
・40 Sales Reps. were transferred to other Departments temporarily, among whom 12 are now officially in IT Service Department which may not likely be affected by the coronavirus crisis, and we enforced non-face-to-face services.
June Resumed normal sales activities, Re-started Open Seminars where attendees are actually present at the seminar classrooms (We also continue online trainings)
・Since the state of the emergency was lifted entirely, businesses related to HR departments have returned to normal gradually and business negotiations have resumed
・In parallel with Online Trainings, Open Seminars where attendees are present physically started again nationwide
・Video trainings developed in-house started fully at Insource in addition to those services already done by Mitemo Co., Ltd
July Started BPO and video services using our own technologies
・Started offering new services by making use of our own technologies, such as supporting face-to-face trainings into online and offering e-Learning rental contents for one-week
・Enforced new services targeting at "After Corona/ With Corona" by expanding a l ineup of IT trainings to 48 kinds
* 7-Eleven is a registered trademark.
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Chap. 02 3Q FY19 Cumulative Consolidated Financial Highlights and Forecast for FY19 (ending September 30, 2020)
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3Q FY19 Cumulative Consolidated Financial Highlights
1Q-3Q(19.10-20.6)
■ Net sales:
Decreased by 6.0% (237 million yen)YOY to 3,749 million yen.
The breakdown consists of 1,981 million yen (15.5%) for On-Site Training, 965 million yen (9.9%) for Open Seminars and 802 million yen (+41.0%) for Other Businesses.
■ Gross profit:
Decreased by 6.3% (175 million yen) YOY to 2,617 million yen. Gross profit margin fell by 0.3 points YOY to 69.8%.
■ Operating profit:
Decreased by 54.0% (510 million yen) YOY to 434 million yen. Operating profit margin decreased by 12.1 points YOY to 11.6%.
3Q(20.4-20.6)
■ Net sales:
Decreased by 41.0% (587 million yen) YOY to 843 million yen.
The breakdown consists of 392 million yen (54.5%) for On-Site Training, 257 million yen (42.1%) for Open Seminars and 193 million yen (+56.5%) for Other Businesses.
■ Gross profit:
Decreased by 46.2% (468 million yen) YOY to 544 million yen. Gross profit margin decreased by 6.3 points YOY to 64.5%.
■ Operating profit:
Decreased YOY to 567 million yen and operating loss was 190 million yen.
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FY19 Revised Consolidated Earnings Forecast
- Assumptions of forecasts
This forecast is calculated based on the actual situation of sales activities as of July 22, 2020 and current situation of the coronavirus infection.
■ Earnings Forecasts
・Net sales: 5,160 million yen, 8.0% decrease YOY(330 million yen from the previous forecast)
・Operating profit: 760 million yen, 41.7% decrease YOY (125 million yen from the previous forecast)
・Net profit: 465 million yen, 44.3% decrease YOY (100 million yen from the previous forecast)
・Whole Business
The changes in 3Q FY19 are almost in line with our expectations made as of May 14. As for 4Q, the changes are expected to be about 90% YOY.
・By Business
4Q sales of training business, especially Open Seminars, will have slower recovery than expected. On the other hand, 4Q sales of Other Businesses will be slightly below the previous forecast, but with the growing needs for home learning due to the coronavirus crisis, sales for e-Learning and term-end customization of LMS (Learning Management System; LMS*1) will be expected to increase.
July | August | September | 4Q Total | |
Consolidated net sales | 70% | 75% | 110% | 90% |
Net Sales: On-Site Training | 60% | 80% | 105% | 85% |
Net Sales: Open Seminars | 50% | 65% | 80% | 65% |
*Figures show the approximate number of sales compared to the previous year
*1 LMS (Learning Management System): Management system necessary for conducting e-learning | 9 |
Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「Plants」「WEBinsource」are registered trademarks of Insource Co., Ltd. |
FY19 | Revised Consolidated Earnings Forecast | ||||||||
■ Net sales decreased by 330 million yen to 5,160 million yen from the previous forecast | |||||||||
(448 million yen YOY) | |||||||||
■ Operating profit decreased by 125 million yen to 760 million yen from the previous forecast | |||||||||
(543million yen YOY) | FY19 | Unit: million yen | |||||||
FY18 | |||||||||
Previous | Revised | Changes | YOY | ||||||
(Actual) | forecast | forecast | (Change rate) | ||||||
Net sales | 5,608 | 5,490 | 5,160 | ▲330 | ▲448 | ||||
(▲6.0%) | (▲8.0%) | ||||||||
Gross profit | 3,959 | 3,860 | 3,610 | ▲250 | ▲349 | ||||
(▲6.5%) | (▲8.8%) | ||||||||
(Gross profit margin) | (70.6%) | (70.3%) | (70.0%) | (▲0.3pt) | (▲0.6pt) | ||||
Operating | 1,303 | 885 | 760 | ▲125 | ▲543 | ||||
profit | |||||||||
(▲14.1%) | (▲41.7%) | ||||||||
(Operating profit margin) | (23.2%) | (16.1%) | (14.7%) | (▲1.4pt) | (▲8.5pt) | ||||
Ordinary | 1,298 | 870 | 750 | ▲120 | ▲548 | ||||
profit | |||||||||
(▲13.8%) | (▲42.2%) | ||||||||
(Ordinary profit | (23.2%) | (15.8%) | (14.5%) | (▲1.3pt) | (▲8.7pt) | ||||
margin) | |||||||||
Net profit | 835 | 565 | 465 | ▲100 | ▲370 | ||||
(▲17.7%) | (▲44.3%) | ||||||||
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Shareholder Dividends Policy & Next Mid-Term Management Plan
■ Dividends
We plan to pay dividends in line with our original forecast as business activities are returning to normal.
FY18 | FY19 | FY19 | ||
(Actual) | (Previous forecast) | (Revised forecast) | ||
Dividend per share | 16 yen 00 sen | 18 yen 50 sen | 18 yen 50 sen | |
(after stock split) * | ||||
Stock split | 336 million yen | 388 million yen | 387 million yen | |
Payout ratio (consolidated) | 40.3% | 68.8% | 83.6% | |
* As of September 1, 2019, we split stock per share of common stock at 1.25-to-1 ratio.
■ Revision of the mid-term management plan, "Road to Next 2022"
We will disclose the next medium-term management plan (for FY20 to FY22) when the financial results for FY19 are announced.
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Chap. 03 3Q FY19 Cumulative Consolidated Financial Results
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Consolidated Profit & Loss Statement ① Overview | 1Q-3Q(19.10-20.6) | |||||||||||
■ Net sales decreased by 6.0% YOY to 3,749 million yen | ||||||||||||
■ Operating profit decreased by 54.0% YOY to 434 million yen | ||||||||||||
■ Recorded an extraordinary loss of 38 million yen due to impairment of investment securities | Unit: million yen | |||||||||||
FY17 | FY18 | FY19 | FY19 | FY19 | FY19 | FY19 | ||||||
1Q-3Q(Actual)1Q-3Q(Actual) | 1Q-3Q(Actual) | 1Q-3Q(YOY) | 3Q(Actual) | 3Q(YOY) | (Revised target) | |||||||
Net sales | 3,294 | 3,986 | 3,749 | 843 | Changed | 5,160 | ||||||
▲6.0% | ▲41.0% | ▲330 | ||||||||||
(YOY) | (+672) | (+692) | (▲237) | (▲587) | (Progression rate:72.7%) | |||||||
Gross profit | 2,264 | 2,793 | 2,617 | 544 | ||||||||
▲6.3% | ▲46.2% | ▲250 | 3,610 | |||||||||
Changed | ||||||||||||
(YOY) | ||||||||||||
(+514) | (+529) | (▲175) | (▲468) | (Progression rate:72.5%) | ||||||||
(Gross profit | (68.7%) | (70.1%) | (69.8%) | (▲0.3pt) | (64.5%) | (▲6.3pt) | (70.0%) | |||||
margin) | ||||||||||||
Operating | 697 | 944 | 434 | ▲190 | 760 | |||||||
▲54.0% | Changed | |||||||||||
profit | - | ▲125 | ||||||||||
(+278) | (+247) | (▲510) | (▲567) | |||||||||
(YOY) | (Progression rate:57.1%) | |||||||||||
(Operating profit | (21.2%) | (23.7%) | (11.6%) | (▲12.1pt) | (▲22.6%) | (▲48.9pt) | (14.7%) | |||||
margin) | ||||||||||||
Ordinary | 689 | 940 | 431 | 750 | ||||||||
▲54.1% | ▲191 | Changed | ||||||||||
profit | ▲120 | |||||||||||
(YOY) | (+254) | (+250) | (▲508) | (▲566) | (Progression rate:57.6%) | |||||||
(Ordinary profit | (20.9%) | (23.6%) | (11.5%) | (▲12.1pt) | (▲22.7%) | (▲48.9pt) | (14.5%) | |||||
margin) | ||||||||||||
Net profit | 464 | 621 | 261 | ▲57.9% | ▲159 | - | 465 | |||||
▲100 | ||||||||||||
Changed | ||||||||||||
(YOY) | (+179) | (+156) | (▲359) | (▲407) | ||||||||
(Progression rate:56.2%) | ||||||||||||
13 | ||||||||||||
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Consolidated Profit & Loss Statement ② (by business) 1Q-3Q(19.10-20.6)
Unit: million yen
FY17 | FY18 | FY19 | FY19 | FY19 | FY19 | FY19 | |||||||||||
1Q-3Q(Actual) | 1Q-3Q(Actual) | 1Q-3Q(Actual) | 1Q-3Q(YOY) | 3Q(Actual) | 3Q(YOY) | (Revised target) | |||||||||||
Net sales | 3,294 | 3,986 | 3,749 | 843 | Changed | ||||||||||||
▲6.0% | ▲41.0% | ▲330 | 5,160 | ||||||||||||||
Whole | ( | ||||||||||||||||
(YOY) | (+672) | (+692) | ( 237) | 587) | (Progression rate:72.7%) | ||||||||||||
▲ | ▲ | ||||||||||||||||
Business | |||||||||||||||||
Changed | 3,610 | ||||||||||||||||
Gross profit | 2,264 | 2,793 | 2,617 | ▲6.3% | 544 | ▲46.2% | ▲250 | ||||||||||
(Progression rate:72.5%) | |||||||||||||||||
(Gross profit margin) | (68.7%) | (70.1%) | (69.8%) | ▲ | (64.5%) | ▲ | (70.0%) | ||||||||||
( 0.3pt) | ( 6.3pt) | ||||||||||||||||
Net sales | 2,035 | 2,345 | 1,981 | 392 | Changed | 2,760 | |||||||||||
On-Site | ▲15.5% | ▲54.5% | ▲130 | ||||||||||||||
(YOY) | (+300) | (+310) | ( 364) | ( | 470) | (Progression rate:71.8%) | |||||||||||
▲ | ▲ | ||||||||||||||||
Training | |||||||||||||||||
Gross profit | Changed | 2,030 | |||||||||||||||
1,473 | 1,683 | 1,477 | ▲12.2% | 294 | ▲52.5% | ▲110 | |||||||||||
(Progression rate:72.8%) | |||||||||||||||||
(Gross profit margin) | (72.4%) | (71.8%) | (74.6%) | (+2.8pt) | (75.0%) | (+3.1pt) | (73.6%) | ||||||||||
Net sales | 841 | 1,072 | 965 | 257 | Changed | 1,260 | |||||||||||
Open | ▲9.9% | ▲42.1% | ▲140 | ||||||||||||||
(YOY) | (+210) | (+230) | ▲ | ( | ▲ | (Progression rate:76.6%) | |||||||||||
Seminars | ( 106) | 187) | |||||||||||||||
Gross profit | Changed | 770 | |||||||||||||||
551 | 691 | 586 | ▲15.2% | 128 | ▲57.5% | ▲120 | |||||||||||
(Progression rate:76.1%) | |||||||||||||||||
(Gross profit margin) | (65.5%) | (64.5%) | (60.7%) | (▲3.8pt) | (50.0%) | (▲18.2pt) | (61.1%) | ||||||||||
Net sales | |||||||||||||||||
418 | 569 | 802 | +41.0% | 193 | +56.5% | Changed▲60 | 1,140 | ||||||||||
Other | (YOY) | (+162) | (+150) | (+233) | (+69) | (Progression | rate:70.4%) | ||||||||||
Businesses Gross profit | 239 | 418 | 554 | +32.3% | 120 | +36.3% | Changed | 810 | |||||||||
▲20 | |||||||||||||||||
(Progression rate:68.4%) | |||||||||||||||||
(Gross profit margin) | (57.3%) | (73.6%) | (69.1%) | (▲4.5pt) | (62.5%) | (▲9.2pt) | (71.1%) | ||||||||||
* Our gross profits by business were not audited by Ernst & Young ShinNihon LLC. | 14 | ||||||||||||||||
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Composition Ratio・Progress Rate of Sales (by business・by quarter)
& Operating Profit 1Q-3Q(19.10-20.6) | ||||||
Sales composition | ■ On-Site Training | ■ Open Seminars | Progress rate of | |||
■ Other Businesses | Unit: million yen | |||||
ratio by business | ||||||
% represents composition ratio | operating profit | |||||
3,986 | ||||||
3,749 | ||||||
569 | 14.3% | FY19 | ||||
(Target) | ||||||
3,294 | 802 | 21.4% | ||||
760 | ||||||
418 | 12.7% | |||||
1,072 | 26.9% | |||||
841 | 25.5% | 965 | 25.8% | |||
FY18 | ||||||
(Actual) | ||||||
1,303 | ||||||
2,035 | 2,345 | 58.8% | 52.8% | |||
61.8% | 1,981 | |||||
FY17 | ||||||
(Actual) | ||||||
937 | ||||||
FY17 | FY18 | FY19 | ||||
1Q-3Q(Actual) | 1Q-3Q(Actual) | 1Q-3Q(Actual) |
Unit: million yen
% represents progress rate
FY19
1Q-3Q(Actual)
434
57.1%
FY18
1Q-3Q(Actual)
944
72.5%
FY17
1Q-3Q(Actual)
697
74.3%
Composition ratio | ■ 1Q | ■ 2Q ■ 3Q | ■ 4Q | Unit: million yen | ||
and progress rate of | % represents composition ratio | |||||
or progress rate | ||||||
sales by quarter | ||||||
FY19 Progress rate | 31.5% | 24.8% | 16.4% | <Forecast> | ||
5,160 | ||||||
1,625 | 1,280 | 843 | ||||
FY18 Composition ratio | 23.1% | 22.5% | 25.5% | 28.9% | 5,608 | |
1,294 | 1,261 | 1,430 | 1,621 | |||
FY17 Composition ratio | 23.3% | 22.4% | 26.9% | 27.4% | 4,536 | |
1,055 | 1,018 | 1,220 | 1,242 | |||
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Consolidated Profit & Loss Statement③ Breakdown of SG&A expenses
■ SG&A expenses increased by 18.1% YOY to 2,183million yen due to hiring more employees SG&A ratio increased significantly to 58.2%, due to a decline in sales. Office & system expenses increased due to cloud usage of Other Businesses
Unit: million yen | |||||||||
Breakdown of | FY17 | FY18 | FY19 | FY19 | FY19 | ||||
SG&A | 1Q-3Q(Actual) | 1Q-3Q(Actual) | 1Q-3Q(Actual) | 1Q-3Q(YOY) | (Revised target) | ||||
Personnel | 1,222 | 1,432 | 1,703 | +18.9% | 2,230 | ||||
▲40 | |||||||||
expenses *1 | |||||||||
Changed | |||||||||
(YOY) | (+270) | ||||||||
Rent expenses | 87 | 93 | 101 | +8.1% | 130 | ||||
▲15 | |||||||||
Changed | |||||||||
(YOY) | (+7) | ||||||||
Office & system | 147 | ||||||||
83 | 117 | +26.2% | Changed | 190 | |||||
expenses | |||||||||
▲10 | |||||||||
(YOY) | (+30) | ||||||||
Other expenses | 173 | 204 | 230 | +12.5% | 300 | ||||
▲60 | |||||||||
Changed | |||||||||
(YOY) | (+25) | ||||||||
Total SG&A | 1,567 | 1,849 | 2,183 | +18.1% | 2,850 | ||||
▲125 | |||||||||
expenses | |||||||||
Changed | |||||||||
(YOY) | (+334) | ||||||||
(SG&A expense | (47.6%) | (46.4%) | (58.2%) | - | (55.2%) | ||||
ratio) |
* 1 Total personnel expenses include wages, recruitment, training, and benefit expenses.
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Consolidated Balance Sheet
■ Current assets decreased by 38.9% YOY to 2,535 million yen due to a decline in cash and deposits caused by acquisition of the company's building (547 million yen), payment of corporation tax (435 million yen) , dividend payments (336 million yen) and buying back treasury stock (297 million yen)
Unit: million yen
FY17 | FY18 | |
(Actual) | (Actual) | |
Current assets | 3,434 | 4,150 |
Fixed assets | 524 | 806 |
Total assets | 3,959 | 4,957 |
Current | 979 | 1,787 |
liabilities | ||
Fixed | 89 | 86 |
liabilities | ||
Net assets | 2,889 | 3,082 |
Total liabilities | 3,959 | 4,957 |
and net assets | ||
FY19 | FY18 vs. FY19 | ||
3Q(Actual) | Changes | YOY | |
2,535 | ▲1,615 | ▲38.9% | |
1,378 | +572 | +71.0% | |
3,913 | ▲1,043 | ▲21.1% | |
1,131 | ▲656 | ▲36.7% | |
81 | ▲5 | ▲6.4% | |
2,700 | ▲381 | ▲12.4% | |
3,913 | ▲1,043 | ▲21.1% | |
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On-Site Training 3Q(20.4-20.6)
- The number of trainings conducted decreased largely and net sales fell by 54.5% YOY due to the declaration of state of the emergency
■ The average unit price per training increased by 18.8% YOY to 259.9 thousand yen as online trainings are mainly offered to private companies
FY18 | FY19 | FY19 | FY19 | FY19 | FY19 | Revised target | |||||||||
( | ) | 1Q(Actual) | ( | ) | ( | ) | 3Q(YOY) | 1Q-3Q(Actual) | |||||||
Actual | 2Q Actual | 3Q Actual | |||||||||||||
Net sales | 3,279 | 1,006 | 581 | 392 | ▲54.5% | 1,981 | 2,760 | ||||||||
Changed | (Progression | ||||||||||||||
(YOY) | (▲470) | (▲364) | ▲130 | rate:71.8%) | |||||||||||
Gross profit * | 2,341 | 742 | 440 | 294 | ▲52.5% | 1,477 | 2,030 | ||||||||
(YOY) | Changed | (Progression | |||||||||||||
(▲326) | ( | ▲ | 206) | ||||||||||||
▲110 | rate:72.8%) | ||||||||||||||
(Gross profit | (71.4%) | (73.8%) | (75.7%) | (75.0%) | (+3.1pt) | (74.6%) | (73.6%) | ||||||||
margin) | |||||||||||||||
Changed | |||||||||||||||
Total number | |||||||||||||||
▲800 | |||||||||||||||
11,600 | |||||||||||||||
of trainings | 14,873 | 4,471 | 2,480 | 1,512 | ▲61.7% | 8,463 | |||||||||
conducted | (Progression | ||||||||||||||
rate:73.0%) | |||||||||||||||
(unit:times) | |||||||||||||||
Average unit | 225.0 | 234.3 | 259.9 | ||||||||||||
price | 220.5 | +18.8% | 234.1 | 237.9 | |||||||||||
(unit:Thousand yen) | |||||||||||||||
* Our gross profits by business were not audited by Ernst & Young ShinNihon LLC. | |||||||||||||||
Copyright © Insource Co., Ltd. All rights reserved. | 「insource」「Leaf」「Plants」「WEBinsource」are registered trademarks of Insource Co., Ltd. | 18 |
Open Seminars 3Q(20.4-20.6)
■ Gross profit margin decreased by 18.2pt YOY to 50.0% due to an increase in expense rate for the use of external venues, which had been prepared in anticipation of increasing demands for new employee trainings
■ The average unit price rose by 7.3% YOY due to the increase of long-term IT Trainings whose average unit prices are high
Unit: million yen | |||||||||||
FY18 | FY19 | FY19 | FY19 | FY19 | FY19 | FY19 | |||||
(Actual) | 1Q(Actual) 2Q(Actual) | 3Q(Actual) | 3Q(YOY) | 1Q-3Q(Actual) | (Revised target) | ||||||
Changed | |||||||||||
Net sales | 1,527 | 419 | 289 | ▲140 | |||||||
257 | ▲42.1% | 965 | 1,260 | ||||||||
(YOY) | (▲187) | (▲106) | (Progression rate: 76.6%) | ||||||||
Gross profit* | 128 | 586 | Changed | 770 | |||||||
▲57.5% | ▲120 | ||||||||||
(YOY) | 1,011 | 284 | 172 | ||||||||
(▲174) | (▲105) | (Progression rate: 76.1%) | |||||||||
(Gross profit | (66.2%) | (67.9%) | (59.7%) | (50.0%) | (▲18.2pt) | (60.7%) | (61.1%) | ||||
margin) | |||||||||||
Total number | Changed | ||||||||||
▲8,900 | |||||||||||
72,107 | 21,132 13,717 | 10,286 | ▲46.0% | 45,135 | 58,700 | ||||||
of attendees | |||||||||||
(Progression rate: 76.9%) | |||||||||||
(unit:attendees) | |||||||||||
Average unit | |||||||||||
price | 21.1 | 19.8 | 21.0 | 25.0 | +7.3% | 21.3 | 21.4 | ||||
(unit:Thousand yen) | |||||||||||
* Our gross profits by business were not audited by Ernst & Young ShinNihon LLC. | 19 | ||||||||||
Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「Plants」「WEBinsource」are registered trademarks of Insource Co., Ltd. |
Other Businesses - Net Sales/Gross Profit 3Q(20.4-20 .6)
■ Net sales steadily increased by 56.5% YOY, as the non-face-to-face service was hardly affected by coronavirus crisis
■ Net sales for e-Learning and video production rose by 90.2% YOY due to the increased use of STUDIO (cloud-basede-learning contents)
■ Gross profit margin decreased by 9.2pt YOY to 62.5% due to the increased communication costs for introducing
highly-graded server FY18 | Unit: million yen | |||||||||||||||||
FY19 | FY19 | FY19 | FY19 | FY191Q-3Q1Q-3Q | Revised target | |||||||||||||
(Actual) | ( | ) | ( | ) | 3Q(Actual) | 3Q(YOY) | (Actual) | (YOY) | ||||||||||
1Q Actual | 2Q Actual | |||||||||||||||||
Changed | ||||||||||||||||||
Net Sales | 801 | 199 | 409 | 193 | +56.5% | ▲60 | ||||||||||||
802 +41.0% | 1,140 | |||||||||||||||||
(YOY) | (+72) | (+90) | (+69) | (Progression rate: 70.4%) | ||||||||||||||
610 | ||||||||||||||||||
IT Services | 431 | 106 | 232 | 94 | +53.8% | 433 +38.9% | ||||||||||||
(Progression rate: 71.0%) | ||||||||||||||||||
Monthly subscription | - | 57 | 59 | 73 | - | 191 | - | - | ||||||||||
Customization | - | 37 | 76 | 18 | - | 128 | - | - | ||||||||||
Stress Check Support | - | 12 | 97 | 3 | - | 114 | - | - | ||||||||||
Service | ||||||||||||||||||
e-Learning/ | ||||||||||||||||||
218 | 49 | 78 | 72 | 200 +21.6% | Changed | 360 | ||||||||||||
Video Production | +90.2% | ▲40 | ||||||||||||||||
(Progression rate: 55.8%) | ||||||||||||||||||
Consulting | Changed | 120 | ||||||||||||||||
85 | 19 | 51 | 18 | +1.2% | 90 +63.9% | +10 | ||||||||||||
(Progression rate: 75.4%) | ||||||||||||||||||
Gross Profit | 605 | |||||||||||||||||
134 | 298 | 120 | +36.3% | 554 +32.3% | Changed▲ 20 | 810 | ||||||||||||
(Gross profit margin) | (75.5%) | (67.4%) | (73.0%) | (62.5%) | (▲9.2pt) | (69.1%) | (▲4.5pt) | (Progression rate: 68.4%) | ||||||||||
* Our gross profit margins by business were not audited by Ernst & Young ShinNihon LLC.
Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「Plants」「WEBinsource」are registered trademarks of Insource Co., Ltd. | 20 |
Other Businesses KPIs
Monthly subscription | FY17 | FY18 | FY19 | 3Q Progression | FY19 (Revised target) | |||||||||||||||||||||||||||||||
model | (Actual) | ( | Actual | ) | Q( | Actual | ) | rate against FY19 | (FY18 vs. FY19) | |||||||||||||||||||||||||||
3 | ||||||||||||||||||||||||||||||||||||
Total number of Leaf | ||||||||||||||||||||||||||||||||||||
IT | 224 | Changed | 250 | |||||||||||||||||||||||||||||||||
Paid subscribers(*1) | 92 | 162 | ||||||||||||||||||||||||||||||||||
70.5% | ▲103 | |||||||||||||||||||||||||||||||||||
Services | (organizations) | (+ | 62 | ) | (+ | 88 | ) | |||||||||||||||||||||||||||||
(YOY) | ||||||||||||||||||||||||||||||||||||
Total number of | ||||||||||||||||||||||||||||||||||||
IT | 77 | |||||||||||||||||||||||||||||||||||
organizations using on-the- | 26 | 50 | 56.3% | 98 | ||||||||||||||||||||||||||||||||
Services | ||||||||||||||||||||||||||||||||||||
web appraisal form service | (+27) | (+ | 48 | ) | ||||||||||||||||||||||||||||||||
(organizations)(YOY) | ||||||||||||||||||||||||||||||||||||
Direct-selling model | FY17 | FY18 | FY19 | YOY | FY 19 | |||||||||||||||||||||||||||||||
3Q(Actual) | ( | ) | ( | ) | ( | Revised target | ) | |||||||||||||||||||||||||||||
3Q Actual | 3Q Actual | |||||||||||||||||||||||||||||||||||
Total number of organizations | 270 | |||||||||||||||||||||||||||||||||||
IT | (※2) | ▲80 | ||||||||||||||||||||||||||||||||||
16 | +33.3% | Changed | ||||||||||||||||||||||||||||||||||
implementing Stress Check | 0 | 12 | ||||||||||||||||||||||||||||||||||
Services | (Progression rate: | |||||||||||||||||||||||||||||||||||
(Total 241) | ||||||||||||||||||||||||||||||||||||
Support Service | ) | |||||||||||||||||||||||||||||||||||
89.3% | ||||||||||||||||||||||||||||||||||||
Total number of Video | Changed | |||||||||||||||||||||||||||||||||||
e-Learning/ | 11 | 18 | 14 | ▲22.3% | ▲30 | 90 | ||||||||||||||||||||||||||||||
Video | ||||||||||||||||||||||||||||||||||||
production Solutions | ||||||||||||||||||||||||||||||||||||
Production | (Total 71) | ( | : | %) | ||||||||||||||||||||||||||||||||
Total number of consulting | Progression rate | 78.9 | ||||||||||||||||||||||||||||||||||
20 | 24 | 16 | ▲33.3% | 120 | ||||||||||||||||||||||||||||||||
Consulting | ||||||||||||||||||||||||||||||||||||
services | ||||||||||||||||||||||||||||||||||||
(Total 95) | ( | : | 79.2 | %) | ||||||||||||||||||||||||||||||||
Progression rate | ||||||||||||||||||||||||||||||||||||
Periodical payment model | FY17 | FY18 | FY19 | YOY | FY 19 | |||||||||||||||||||||||||||||||
( | Actual | ) | 3Q(Actual) | 3Q(Actual) | (1-3Q total YOY) | (Revised target) | ||||||||||||||||||||||||||||||
3Q | ||||||||||||||||||||||||||||||||||||
Total number of e-Learning | Changed | |||||||||||||||||||||||||||||||||||
e-Learning/ | ||||||||||||||||||||||||||||||||||||
20,899 | 21,874 | 39,464 | +80.4% | +15,000 | ||||||||||||||||||||||||||||||||
Production | (STUDIO & STUDIO | |||||||||||||||||||||||||||||||||||
Video | ||||||||||||||||||||||||||||||||||||
Powered by Leaf) IDs per year (※3) (1-3Qtotal:28,337) | (1-3Q total34,113) | (1-3Q total | (+57.7%) | 60,000 | ||||||||||||||||||||||||||||||||
(Progression rate: | ||||||||||||||||||||||||||||||||||||
(end of Sep. FY17 34,566) | (end of Sep. FY18 | 40,548) | 53,787 ) | |||||||||||||||||||||||||||||||||
%) | ||||||||||||||||||||||||||||||||||||
89.6 | ||||||||||||||||||||||||||||||||||||
*1 Total number as of the end of the year * 2 The number of Stress Check Support implemented since 2Q FY18 | is based on the number of orders delivered. | |||||||||||||||||||||||||||||||||||
*3 Since 1Q FY19, the annual total number of e-learning subscription IDs has been calculated based on the periodical payment system (the number of IDs used during a certain period), including the | 21 | |||||||||||||||||||||||||||||||||||
monthly subscription system. | Copyright © Insource Co., Ltd. All rights reserved. | 「insource」「Leaf」「Plants」「WEBinsource」are registered trademarks of Insource Co., Ltd. | ||||||||||||||||||||||||||||||||||
Business model of Leaf - Subscription +Customization
1.Reasonable monthly fee (Subscription)
・In order to make implementation easier, basic monthly fee are set reasonable.
2. Variety of customizations
(1)Customize available to meet the needs of our customer`s personnel system
- 20 different optional functions have been developed, allowing customers to add more at a lower cost
⇒Realized a service model that is less likely to be cancelled
■ Future Prospects for Leaf ~Expanding sales targets
3.Sales promotion with low advertising costs
(1)Cross-selling to existing clients by sales reps.
in charge of trainings and only cost little additional sales expense
(2)Sales using digital marketing (web and email), no mass advertising.
- Achieving low-cost promotion
- With points 1-3 above, high profit rate is secured
1.Expansion of sales targets to medium-sized and growing companies
Currently, our targets are mainly large companies, but with expansion of services for medium-sized and growing companies, we will flexibly respond to different needs.
For large companies | Packaged and sold as an LMS that can withstand the high load of a large organization |
For medium-sized and | Packaged and sold as a one-stop ASP, human resource management, evaluation |
growing companies | and LMS |
2.Expansion of sales target to universities, colleges and high schools ~Academic Leaf
Customized Leaf (Learning Management System) for universities, colleges and high schools to meet the
new learning management needs of implementing online education (increasing burdens for teaching sides such as checking homework assignments, sending reminders to students who have not submitted their work, and management of whether students have taken e-learning courses or not, etc.).
Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「Plants」「WEBinsource」are registered trademarks of Insource Co., Ltd. | 22 |
Number of Employees
■ We will curb the recruitment of mid-career employees expect engineers for FY19, but are planning to employ 30 newcomers in spring 2021
- To improve productivity, we will continue to train all employees to be skillful in IT and advance DX
FY17 | FY18 | FY19 | 3Q Progression | FY19 | ||||||||||||||||
3Q(Actual) | rate against | (revised target) | ||||||||||||||||||
( | Actual | ) | (Actual) | |||||||||||||||||
(FY18 vs. FY19) | FY19 target | (FY18 vs. FY19) | ||||||||||||||||||
476 | 480 | |||||||||||||||||||
Total number of employees | 379 | 443 | 89.2% | Changed | ||||||||||||||||
(+33) | 5 | (+37) | ||||||||||||||||||
296 | 321 | 86.2% | 325 | |||||||||||||||||
Number of full-time employees | 249 | |||||||||||||||||||
(+25) | (+29) | |||||||||||||||||||
155 | Changed | 155 | ||||||||||||||||||
Number of part-time employees | 130 | 147 | 100.0% | 5 | ||||||||||||||||
(+8) | (+8) | |||||||||||||||||||
Transition of | ||||||||||||||||||||
quarterly number | ■ Full-timers | ■ Part-timers | ||||||||||||||||||
of employees | 480 | |||||||||||||||||||
476 | ||||||||||||||||||||
379 | 443 | |||||||||||||||||||
147 | 155 | 155 | ||||||||||||||||||
130 | ||||||||||||||||||||
249 | 296 | 321 | 325 | |||||||||||||||||
FY17 | FY18 | 3Q FY19 | FY19 | |||||||||||||||||
(Actual) | (Actual) | (Actual) | (Revised target) |
Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「Plants」「WEBinsource」are registered trademarks of Insource Co., Ltd. | 23 |
FY19 KPIs
- Corresponding to "After Corona/ With Corona", we have developed multiple new trainings/services.
FY18 | 3Q FY19 | 3Q progression | FY19 |
(Actual) | (Actual) | rate against | (Revised target) |
(Changes) | FY19 target | (Changes) |
Total number of business sites | 22 | 23 | 100.0% | 23 | |||
(+1) | (+1) | ||||||
Total number of permanent classrooms | 41 | 48 | 100.0% | 48 | |||
(+7) | (+7) | ||||||
Total number of new contracts | Changed | 2,165 | |||||
for WEBinsource (organizations) | 2,771 | 1,679 | 77.6% | ▲250 | |||
(11,335) | (13,014) | (13,500) | |||||
(Cumulative contracts) | |||||||
Number of new programs/content types | 239 | 243 | 319 | ||||
for On-Site training | 76.2% | ||||||
(2,821) | (3,064) | (3,140) | |||||
(Total number) | |||||||
Number of new programs/content types | 297 | 254 | 301 | ||||
for Open Seminars | 84.4% | ||||||
(2,589) | (2,843) | (2,890) | |||||
(Total number) | |||||||
Number of new content types | 74 | 30 | 73 | ||||
for e-learnings | 41.1% | ||||||
(307) | (337) | (380) | |||||
(Total number) | |||||||
Total number of Core solution plans * | - | 136 | 90.7% | 150 | |||
Number of new webpages | 3,123 | 4,000 | |||||
2,830 | 78.1% | Changed | |||||
(Total number) | (14,171) | (17,294) | +991 | (18,171) | |||
Total number of sessions | 1,712 | 1,375 | 66.7% | 2,062 | |||
(Thousand times) | |||||||
* Core solution plan is a one-stop service that solves organizational challenges by providing a unique mix of multiple trainings and services tailored to clients' specific needs by subject, industry or job
function(former name: package plan). | 24 |
Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「Plants」「WEBinsource」are registered trademarks of Insource Co., Ltd. |
Chap. 04 To improve our performance from 4Q onwards
It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change.
(Charles Darwin)
Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「Plants」「WEBinsource」are registered trademarks of Insource Co., Ltd. | 25 |
Market Forecast for Career Development Education (Year 2020 & 2021)
1.Demands from organizations which outsource trainings are expected to stay almost the same
・The number of organizations who carry out trainings have been changing around 50% in the last 10 years despite economic fluctuations (52.9% in 2018) *1
・Training expense per person has been changing around 13,000-21,000 yen in the last 10 years (14,000 yen in 2018*1
2.Market sizes for 2020 and 2021 is expected to be 270 and 350 billion yen respectively
・We calculated the market size of 2020, assuming that the impact of the coronavirus crisis will continue for over seven- month from March to September (25% between March and June, 75% between July and September) , and then
will return to normal level
・As for the market size for 2021, we calculated that the number of organizations conducting trainings would decrease by 2% and training expense per person would fall by 1,000 yen, referring to the market size 391.9 billion yen in 2018*2
⇒ Our Group's sales was 5.6 billion yen (FY18) and we still have huge market opportunity | |||||||||||||
Market Size of Training | |||||||||||||
Training expense per person | (Training expense per person: | 4,500 | Service | ||||||||||
Rate of organizations conducted trainings | |||||||||||||
100.0% | thou. yen) | 25 | 391.9 bill.yen | ||||||||||
4,000 | |||||||||||||
350 bill . yen | |||||||||||||
90.0% | 2011.3 | ||||||||||||
A year | A year after | ||||||||||||
the Great East | 3,500 | ||||||||||||
80.0% | after global | the Great East | 20 | ||||||||||
Japan Earthquake | |||||||||||||
financial crisis | Japan Earthquake | 3,000 | 270 bill. yen | ||||||||||
70.0% | |||||||||||||
60.0% | 52.9% | 15 | 2,500 | ||||||||||
50.0% | 2,000 | ||||||||||||
40.0% | 10 | 1,500 | |||||||||||
30.0% | 13 | 13 | 15 | 14 | 13 | 14 | 17 | 21 | 17 | 14 | 1,000 | ||
20.0% | 5 | 500 | |||||||||||
10.0% | |||||||||||||
0.0% | 0 | 0 | |||||||||||
2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 |
*1 The survey done by Ministry of Health, Labour and Welfare from 2009 to 2018 | (Forecast) (Forecast) |
*2This figure is calculated based on the surveys done by Ministry of Health, Labour and Welfare (2018) and Ministry of Internal Affairs and Communications | 26 |
Copyright © Insource Co., Ltd. All rights reserved. | 「insource」「Leaf」「Plants」「WEBinsource」are registered trademarks of Insource Co., Ltd. |
Respond Quickly to Environmental Changes to Achieve Recovery
■ Seeing coronavirus crisis as an opportunity for business expansion, we aim for new growth
1. Strengthening online-related services
~Leveraging the nationwide spread of online education as an opportunity for business expansion
・Online trainings are spreading and expanding from private companies to the rest of the country. We will establish a system that will allow at least 30% of the trainings to be offered online even after the coronavirus crisis is resolved
・Starting online training support (BPO) services by leveraging our online training management know-how and IT infrastructure
・Starting individualized follow-up services for each attendee
2. Enhancement of IT Services which are hardly affected by environmental Changes
・We will expand Leaf's sales target (to medium-sized companies and schools), build a strong sales structure, and develop new IT services and strengthen sales system
3. Enhancement of developing and promoting training programs to meet new needs
~Working from home, DX, web marketing etc.
・We will enhance developing new trainings for managing remote employees, productivity improvements,
training DX personnel, new non-face-to-face sales styles such as inside sales and web marketing
4. Expansion of video/e-Learning education ~Diversifying contents and delivery methods
・In addition to the traditional subscription model, we are diversifying our e-Learning delivery methods
to include rental and buy-out services, and strongly promoting the use of more than 3,000 types of video contents
Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「Plants」「WEBinsource」are registered trademarks of Insource Co., Ltd. | 27 |
Company Profile & Business Activities
Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「Plants」「WEBinsource」are registered trademarks of Insource Co., Ltd. | 28 |
Company Profile
・Company name
・Date of foundation
・Headquarters
・Affiliated companies
・Representative
Insource Co., Ltd.Takayuki Funahashi director and president
November, 2002 | ・Capital | 800,623 thousand yen |
Kandabashi Park Bldg. 5F 1-19-1 Kanda Nishiki-cho,Chiyoda-ku. Tokyo
Mitemo Co., Ltd, Rashiku Corporation, MIRAISOUZOU & COMPANY, Inc., Insource Digital Academy Cooperation, Double Work Management Co., Ltd
・Branch Offices & Business Sites
Kyoto Office
Osaka ※
Branch
Kobe Office
Okayama
Office
Chu-Shikoku Branch※
Kyushu ※
Branch
25 places nationwide
Tohoku ※
Branch
Niigata
Office
Nagoya Branch ※
Nagoya Branch Annex
・Seminar Rooms | 48 Classrooms in 10 Cities | |||||
・Online training booths | 40 booths* | |||||
*As the of end of June,2020 | ||||||
Hokkaido※ | ||||||
Branch | ||||||
Tsuchiura | ||||||
Office | ||||||
Urawa | ||||||
Office | Utsunomiya Office※ | |||||
Makuhari ※ | (opened on March 9, 2020) | |||||
Office | ||||||
Head Office | ・IT Media Lab | |||||
・ | ||||||
・Surugadai Office | ・ | |||||
Ikebukuro Office (Kanto Branch) | ||||||
・Shinjuku Office | ・Shibuya Office | |||||
・Nihonbashi Office | ・Hamamatsucho Office | |||||
・Akasaka Office | ・Machida Office | |||||
Yokohama | ||||||
Branch | ※ | |||||
※ Branches with Seminar Rooms. | ||||||
Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「Plants」「WEBinsource」are registered trademarks of Insource Co., Ltd. | 29 |
Management Policy
■ We will continue to aim for sustainable growth by increasing market share
Strategy① Accelerating growth with speed and focus
Accelerate growth by implementing business and organizational restructuring with fast speed while adapting to the external environment
Work on major issues, and solve them by making proactive decisions from a company-wide perspective.
Strategy② Practicing diversity
-Expediting business expansion and
new business development through diversity
Achieve higher results through the collaboration of diverse workforce
Develop contents and expand business by maintaining and enlarging diverse workforce in the organization
Strategy③ Continuing ESG Management
Contribute to society by offering various trainings to help revitalize the Japanese economy in the post-corona era since our business itself is deeply related to solving social problems
Proactively disclose non-financial information and ensure highly transparent management
* We reallocate our resources in the organization speedily and concentrate staff on divisions which contribute to sales and growth.
Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「Plants」「WEBinsource」are registered trademarks of Insource Co., Ltd. | 30 |
Speed and Focus -Implementing Online Training Business
■ Structuring and Systematization of Implementing Online Training business in 10 Days
The issues were identified and developed by the entire company, and System Department worked together to develop the system. Tests were conducted immediately and the system was put into operation.
PLAN
Insource is incorporating the essence of | |
*What is OODA Loop? | OODA Loop into its training programs. |
OODA Loop is a simple practical framework inspired by US Marine Corps' decision-making process. By practicing OODA Loop, you can deal flexibly with changing situations at high speed.
:Mid-Term
Management Plan, "Road to Next 2022"
DO: Practice OODA Loop
Changing
situation
OODA Loop
決断 | 決断 |
OODA Loop
決断 | |||||||||
OODA Loop | |||||||||
OODA Loop | |||||||||
By flexibly changing the strategy depending決断 | |||||||||
on situations with "speed and focus", |
we will be able to grow in response to the external environment.
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Diverse Workforce
-
Ratio of female employees in managerial positions: 28.0%
Employment rate of people with disabilities: 3.11%
Total | Female employees | |||||||||||||
Total number | ||||||||||||||
476 | 279 | Ratio of female | ||||||||||||
of employees | ||||||||||||||
(58.6%) | employees in managerial | |||||||||||||
*2 | ||||||||||||||
Total number | positions: | |||||||||||||
125 | 35 | 14.9% *1 | ||||||||||||
of managerial | (28.0%) | (Source: The Gender Equality | ||||||||||||
positions | Bureau of the Cabinet Office) | |||||||||||||
(As of the end of June, 2020 (consolidated)) | ||||||||||||||
Foreign | 4 | Seniors | 13 | LGBTs | 4 | People with | 9 | |||||||
nationals | Disability employment rate: | |||||||||||||
(aged over 60) | disabilities | |||||||||||||
※4 | 3.11% *3 | |||||||||||||
・Legal employment rate: 2.2%
・Actual employment rate: 2.11%
(Source: "2019 Disability Persons' Employment Status" released by the Ministry of Health, Labour and Welfare)
Workforce by job function: Diverse specialists work at Insource.
Content Creators
Digital
marketers
138
29
Sales
Representatives
AI /RPA
Engineers
157
10
IT Engineers
Designers
71
16
*1 | Administrative and managerial workers include board members, managers or above, administrative civil servants. | |
*2 | Directors, auditors and corporate officers are excluded. *3 Non-consolidated (Insource only) | |
*4 | "Foreign nationals" refers to employees with foreign nationalities . This includes naturalized Japanese. | 32 |
Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「Plants」「WEBinsource」are registered trademarks of Insource Co., Ltd. |
Balancing ESG + P (performance) The Importance of Performance
■ A company's existence is to continue to improve its performance while being conscious of ESG.
Environment/Social
Environment:Company-wide power saving / LED installation | 150 courses | |
: | "Japanese Economy Revitalization Campaign" | More than |
Social |
We offer trainings at up to 50% off to help organizations turn around and expand their business in the "After Corona/ With Corona" world.
Practicing diversity at work | The number of employees Female 279 Seniors13 | ||
(As of the end of June, 2020 ) | |||
Governance | |||
・Active disclosure of non-financial information on a monthly basis | |||
■ Newly developed training programs | ■ No. of Open Seminar attendees | ■ No. of Leaf monthly paying subscribers (organizations) | |
■ No. of On-Site training conducted | ■ No. of WEBinsource subscribers | ■ No. of organizations implementing Stress Check Support Service |
・Disclose earnings forecasts frequently depending on the situation
We will disclose the situation as soon as it becomes apparent so that the right decision can be made for us in the ever-changing environment.
Performance
We contribute to society by solving social issues through trainings. In addition, we will continue to improve our performance by providing trainings at a low cost through our IT capabilities and systematization.
Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「Plants」「WEBinsource」are registered trademarks of Insource Co., Ltd. | 33 |
Concept of Insource's Service
Our core value of product and service provision
Challenging | Perfect fit | ● Pursuing what the customer wants | ||||
Speed | ● | Immediate response to the environment and customer | ||||
~Developing training that meets | Something new | ● Constantly improving and creating | ||||
the latest social trends | ||||||
Full force and energy | ● No compromises | |||||
Empathy | ● Practical, realistic ● Sincere, helpful | |||||
High quality | Contributing to | ● Solving the challenges for all workers | ||||
development | ● Making organization strong | |||||
~Delivering cost effective trainings | Cost effective | ● Cost-effective●Sustainable | ||||
and putting empathy to workers | ||||||
Diversity | ● Valuing diversity ●To all workers | |||||
Professional | ● Sophisticated service production | |||||
Reliable, | ● Provable to every customer's needs | |||||
Everything | Completeness | ● Anything can be found | ||||
~ C omprehensive product lines | Universal | ● Solving social issues | ||||
Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「Plants」「WEBinsource」are registered trademarks of Insource Co., Ltd. | 34 |
Business Activities ① Clients and Average growth rate by business
■ Composition ratio of clients by industry
The total number of clients who used our services from June 2003 to March 2020
31,883 organizations
- Utility Service 1.2%
■ Finance/Banking 2.8% | ■ Others 5.3% | ||
■ Transportation/Warehouse 2.9% | ■ Manufacturing | ||
20.9 | |||
■ Educational Services/ 5.9% | |||
% | |||
Academic institution | |||
■ Logistics/ Trading 6.0% | ■ Government | ||
■ Health/Medical 6.8% | 15.1 /Public administrations | ||
% | |||
8.0% | |||
12.9 | |||
■ Construction/Real state | 12.2 | ||
% | |||
■ Telecommunications | % | ||
■ Service/Hospitality | |||
/IT services
■ Compound annual growth rate by business (Target)
FY17 | FY18 | FY19 | CAGR | ||||
(Actual) | (Actual) | (Revised forecast) | FY17-FY19 | ||||
Whole Business | 4,536 | 5,608 | 5,160 | +12.9% | |||
On-Site Training | 2,827 | 3,279 | 2,760 | +5.2% | |||
Open Seminars | 1,166 | 1,527 | 1,260 | +12.0% | |||
Other Businesses | 541 | 801 | 1,140 | +53.5% | |||
Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「Plants」「WEBinsource」are registered trademarks of Insource Co., Ltd. | 35 |
Business Activities ② Trainings
- Hands-onapproach: Attendees can make the most use of what they have learned immediately. Programs mainly consist of exercises (60%)
Positive feedback | 95.2% | Positive feedback | 93.8% |
■ Positive feedback rates from training attendees rate (trainings) | rate (trainers) |
*As of the end of March,2020
■ By using IT technologies, we can provide high quality trainings frequently and nationwide
On-Site Training | (52.8%) | Open Seminars | (25.8%) | |
Offer on-site trainings tailored to organizations' needs
Separate trainers from content development and utilize IT technologies
・Specialized divisions create contents in-house and trainers concentrate on giving trainings
・Utilizing IT technologies and systematic development system enables us to offer uniform services nationwide
Clients | Develop over 200 | ||
contents a year | |||
Trainers | Sales reps | Content creators |
334 | 157 | 138 | *Unit: persons | ||||
* As of the end of June 2020 | |||||||
Annual total number of | 14,971 *From April 2019 to March 2020 | ||||||
trainings conducted: | |||||||
・Out of the total number of trainings conducted:
Total number of online Total number of online trainings conducted: 502 attendees:16,619
* As of the end of June 2020
Offer open seminars that each person from various organizations can attend
Hold seminars quite frequently nationwide
・Seminars can be attended at a reasonable fee and | anywhere in the | ||||||||||||||||||||||
country | |||||||||||||||||||||||
・Demands for our unique package deal "HRD SmartPack" | |||||||||||||||||||||||
Hokkaido | |||||||||||||||||||||||
are high mainly by large companies. | |||||||||||||||||||||||
10 cities 48 classrooms | Sendai | Utsunomiya | |||||||||||||||||||||
Osaka | Makuhari | ||||||||||||||||||||||
Tokyo | |||||||||||||||||||||||
Hiroshima | |||||||||||||||||||||||
Kawasaki | |||||||||||||||||||||||
Fukuoka | |||||||||||||||||||||||
Nagoya | |||||||||||||||||||||||
* As of the end of June 2020 | |||||||||||||||||||||||
Annual total number of | 75,654 *From April 2019 to March 2020 | ||||||||||||||||||||||
attendees | |||||||||||||||||||||||
・Out of the total number of trainings conducted:
Total number of online Total number of online trainings conducted:695 attendees:8,701
* As of the end of June 2020
* Figures in parentheses indicate percentage of 1Q~3Q FY19 sales ratio | 「insource」「Leaf」「Plants」「WEBinsource」are registered trademarks of Insource Co., Ltd. | 36 |
Copyright © Insource Co., Ltd. All rights reserved. |
Business Activities ③ Other Businesses
■ We are expanding content lineup since we aim to offer services essential for HR departments.
Other Businesses (Leaf (HR support system), e-Learning, Consulting, Staffing & Recruitment Services) (21.4%)
■ IT Services | ■ e-Learning / Video production (Mitemo Co., Ltd) | ||||
・ Leaf (HR support system) | ・STUDIO (Cloud-basede-Learning system) *3 | ||||
Integrates every service line on our in-house platform, | ・Video Production | ||||
Earning revenue from monthly subscription fees | |||||
'Leaf', including training scheduling, stress check ing | |||||
and personnel appraisal. | (subscription model) and direct-selling model | ||||
Leaf earns revenue from monthly subscription fees | Total number of e-Learning | 90subjects 337contents | |||
(subscription model) and customization fees*2. | contents | ||||
Total number of e-learning | 39,464 IDs | ||||
Demands for LMS by large companies and use of on- | subscription IDs per year | ||||
the-web appraisal form service by mid-sized | * As of the end of March 2020 | ||||
Actual no. of active subscription IDs (Jan - Mar 2020) | |||||
companies increased | |||||
■ Consulting | |||||
Total number of Leaf paid | 224 organizations | ・Establishing personnel appraisal service | |||
subscribers | |||||
・Assessment services | |||||
Total number of organizations | |||||
77 organizations | |||||
using on-the-web appraisal form | ■ Staffing & Recruitment Services | ||||
service | ・Recruitment promotion | ||||
Total number of organizations | |||||
241 organizations | ・Staffing services for (potential) returners, | ||||
implementing Stress Check | |||||
short-time workers with regular employment | |||||
Support Service | |||||
- As of the end of June 2020
Actual no. of Stress Check Support Service applied (Oct 2019 - June2020)
*1 Figures in parentheses indicate percentage of 1Q~3Q FY19 sales ratio. *2 Direct-selling model *3 STUDIO is powered by Leaf partly.
Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「Plants」「WEBinsource」are registered trademarks of Insource Co., Ltd. | 37 |
4 Major Pillars to Achieve Our Goals and Visions
1 A wide range of industries | 2 | ||||
Strong client | Robust in-house developed | ||||
Contents | |||||
base | |||||
3 | Linkage of sales force | 4 | In-house IT systems and | ||
and digital marketing | AI-driven tools | ||||
Strong sales | Information | ||||
power | Technologies |
Systematic cross-functional cooperation through IT utilization
Inquiries via our website
WEB pages 17,294 pages
Update
our website
No. of Designers 16
Develop new
trainings/ services
No. of Content creators 138
Approach | Acquire new |
nationwide clients | WEBinsource |
quickly | subscribers |
We are also actively engaged in online sales via Zoom.
No. of business sites: 23
No. of Sales reps: 157
Our services
Open
Seminars
New needs and | On-Site | Other |
opportunities | Businesses | |
Training | ||
・Leaf |
・e-Learning
* As of the end of June 2020
Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「Plants」「WEBinsource」are registered trademarks of Insource Co., Ltd. | 38 |
Insource's 4 Pillars to Achieve High Profitability
- "Strong client base" +"Mixed approach"
1
A wide range of industries | Number of Clients: 31,883 organizations *1 | |||
Strong client base | Total Number of WEBinsource Subscribers: 13,014 organizations | |||
*1 Total number of clients who used our services from June 2003 to March 2020-. | ||||
Mixed approach to keep high profitability by sharing information cross-functionally.
2
Robust in-house developed
Contents
- Linkage of sales force and digital marketing
Strong sales power
- In-houseIT systems, AI-driven tools & DX
Information
Technologies
- Separate content creations from trainers.
・138 Content Creators produce more than 200 new titles a year.
- Provide the best suitable options with 23 business site nationwide and 157 Sales Representatives.
・29 Digital Marketers will offer proposals effectively by emails and WEB system.
・71 IT engineers and 10 AI/RPA engineers provide in-house developed ASP services while maximizing business efficiency
and achieve significant cost reductions.
* As of the end of June 2020
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Insource Co. Ltd. published this content on 27 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2020 07:35:19 UTC