VisasQ : FY ending February 2021 Full Year Financial Results Presentation

FY ending February 2021

Full Year Financial Results Presentation

Table of contents

1.Company and service overview

2.Financial results for the fiscal year ending February 2021

3.Management focus for the fiscal year ending February 2022

2

Company profile

Company Name	VisasQ Inc.
Location	4-7-7 Aobadai, Meguro-ku, Tokyo Sumitomo Fudosan Aobadai Hills 9F
Date of Establishment	March 2012
Business content	Operation of knowledge platform specialized in business fields

Representative director
and CEO	Eiko Hashiba
Number of executives and
employees	151 (as of February 2021)
Number of shares	Total number issued shares 8,789,450 (After fully diluted: 9,330,400)*1
VC ownership ratio	Total shareholding ratio: 8.25 %*1

*1 From the shareholder list as of February 28, 2021	3

Connecting Insights and Aspirations Across the Globe

We enable and enhance innovation across the globe by creating the world best platform that maximizes the value of knowledge and opinions obtained from experience, and seamlessly aggregates and shares them as insights beyond boundaries of organizations, generations and regions.

4

Management Team

Representative director and CEO Eiko Hashiba

After graduating from the University of Tokyo, she worked at Goldman Sachs Securities and L'Oréal Japan, and then studied at MIT where she obtained an MBA. She launched VisasQ after spending five years in a buyout investment at Unison Capital, a domestic investment fund.

Director and CFO Toru Yasuoka

After graduating from the University of Tokyo, he worked for JP Morgan. Then he joined Unison Capital, a domestic investment fund, where he was involved in buyout investment for 14 years and realized improved value as a director at the investee companies. At VisasQ, he oversees all corporate operations.

Executive Officer and General Manager of the FIG

Business Division Yurika Imuta

After graduating from Keio University, she worked in internal auditing at JP Morgan Securities in New York and Tokyo for eight years, and then was in charge of marketing in the Asset Management Department. She joined VisasQ in January 2016, and after leading the systemization as General Manager of the Business Division, she became the executive officer in charge of compliance, and now oversees the FIG Business Division.

Executive Officer and VisasQ Development Group Head

Yoshiyuki Tanaka

After graduating from Tokyo Institute of Technology, he joined Dai Nippon Printing Co., Ltd., where he was engaged in the research and development of natural language processing technology and launching photo sharing SNS. After that, he worked as a project manager for native application development at GREE, and then joined VisasQ in April 2017. Oversees system development for "VisasQ".

VPoE Yoshiyuki Tsurukai

After graduating from a vocational school, he gained experience at a number of independent SIers as an engineer and project manager. After that, he became a development executive officer at Willgate, engaging in product development with a focus on organizational management. He joined VisasQ in January 2020.

Director and COO Hidetoshi Uryu

After completing graduate school at the University of Tokyo, he spent roughly 19 years being involved with M&A/financing advisory services at Goldman Sachs for many technology companies both domestic and overseas, and then joined VisasQ. He is responsible for expanding the core business "VisasQ" and overseas expansion.

Executive Officer and Business Corporation Division General Manager Ryo Tanaka

After graduating from Waseda University, he worked at Sumitomo Corporation in chemical trading and then at a recruiting and personnel consulting company, whereafter he joined VisasQ in July 2015. After being tasked with launching various services such as recruitment and CS, he was tasked with overseeing all services for business corporations.

Executive Officer and PF Business Division General Manager Takeshi Shichikura

After graduating from Hitotsubashi University, he was involved in regional economic surveys and long-term financing for medium-sized and large companies at the Development Bank of Japan, and venture investment at DBJ Capital. He joined VisasQ in May 2016 and became head of the FIG business division, whereafter he was tasked with overseeing the PF Business Division.

Executive CEO's Office, VisasQ lite Business Yu Miyazaki

Officer	Division General Manager

He joined Recruit HR Marketing, starting in sales and new business development, and then working as a manager of the Corporate Planning Division of Recruit Holdings and Recruit (formerly Recruit jobs). He joined VisasQ in March 2019, and he is now the General Manager of the CEO's office. From December of the same year, he also starting serving as the general manager of the VisasQ lite division.

5

Business performance

⚫

⚫

Expanding competitive advantage as Japan's leading knowledge platform

Achieved high growth in the current fiscal year and strengthened our position as the largest player in Japan

(Million yen)	2,570	1,604	208

Transaction value Operating revenue

Operating income

Growth

acceleration

+63.9%

1,568 983 71

+56.8%

1,000 614 25

478 264 -57

166 100 -121

2017/2	2018/2	2019/2	2020/2	2021/2	6

Development as a general knowledge platform

• Covering all knowledge needs, with knowledge database as core value

Investment

DD

Business

development

knowledge

Industry database research

User research

Corporate training

Business

Consignment

External director search

Advisers

Over 140,000	*as of April 14, 2021
	7

Service developed based on knowledge database

• Knowledge data base is source of VisasQ's added value
• New products will be developed while continuing to offer VisasQ interviews as core service.

2013		2017		2019		2020

Renamed "VisasQ Business consignment " to "VisasQ partner"

Knowledge DB	2013		2018		2019

web exhibition

8

(Reference) List of services
		Content	Client
		Face-to-face interviews /
		teleconferencing in 1 hour units
		Full support by VisasQ members
		Supporting an internal business
		proposal system while utilizing the	Business corporations
		knowledge of an advisor
Full
	Online questionnaire survey in
	specific areas of BtoB	Professional firms
support		(Consulting companies
		and financial companies)
		Support from a wide range of
		advisers with flexible time settings
			Overseas clients
	web exhibition	"Call for ideas" solicited from all
	registered advisors
		External directors matching
Self	Face-to-face interviews /	SME
teleconferencing in 1 hour units
Self-matching on the web	Startups etc.

Take rate

Depends on service

Overall or case 60%+

30%

9

VisasQ's business domain and market size

• Established an overwhelming share in the emerging domestic interview market
• With the expansion of the interview market, we will nurture this market while maintaining and expanding our market share.
• Aiming for further expansion of TAM by branching out into comprehensive knowledge solutions + overseas expansion

Japanese interview market size

Knowledge solution market size

(Billion yen)

200 +17.0% growth*

153

150

to Deployment solutionsknowledge

Overseas m arket

Overseas expansion

• Corporate training market = 527 billion (* 1)
• Questionnaire research market + research report growth market = 230 billion (* 2)

10082

Estimate

50based on GDP rate

		20
0		growth
	Japan
All regions	USA

Current	comprehensive
VisasQ

Current realization market(interview)

・ Corporate R & D 5 trillion yen x 1% = 50 billion (* 3)

・ Business consulting market600 billion x 5% = 30 billion (* 4)

growth・ Active management amount60 trillion yen x 3 bp = 20 billion (* 5)

				Interview
Overwh	market	Research market
elming		20 bil. yen	100 bil. yen
	（forecast）
share
growth

Knowledge overall Approx. 800 bil. yen

(2020)

(2020)

(current&forecast)

• Estimated in-house, based on GDP ratio from InexOne data
• Growth rate of 2015-2020 in all regions

• 1 Source: Yano Research Institute Survey on the Corporate Training Service Market (2020)
• 2 Source: Japan Marketing Research Association 45th Business Survey (April 1st to July 10th, 2020)
• 3 Source: Based on the Ministry of Internal Affairs and Communications Science and Technology Research Survey "2018 Science and Technology Research Survey", assuming that about 10% of the survey cost is 10% external research cost.
• 4 Source: Based on IDC Japan's "domestic consulting service market" forecast, it is assumed that the external survey cost for each consulting service is about 5%.
• 5 Source: Tokyo Stock Exchange's "Summary of 2017 Stock Distribution Survey Results" and statistical data of the Investment Trusts Association. The 10 investment amount of active investors is estimated to be 60 trillion yen, and we assume that about 2% of the 1.5% management fee is external research expenses.

Increasing the number of advisors to enhance the database

⚫

⚫

Advocating for new opportunities for individuals from the dawn of "work style reform"

Over 140,000 people have registered worldwide all industries and occupations

Fluctuation in the number of domestic registrants

(persons)

January 2018

Ministry of Health,

Labor and Welfare

October 2016 ModelWork Rule

Issued "LIFE SHIFT" Revision

September 2016

Established "Work Style

Reform Realization

Promotion Office" at the

Cabinet Secretariat

October 2015

Established the "100 Million

Achievement Promotion

Office" at the Cabinet

Secretariat

	(As of April 14)
*Derived as of April 14, 2021 Excludes withdrawn subscriptions as of the end of each month. "Number of domestic registrants" is the total number of people registered on our	11
Japanese website. Domestic registrants are divided into individuals who provide knowledge (advisors) and individuals who request this (requesters using VisasQ lite. This also
includes individuals who belong to a corporation that has signed a contract to use VisasQ lite and are registered under the contract.). Any registrant can act as an advisor in the
full support format "VisasQ" and the self-matching format "VisasQ lite", and can use the "VisasQ lite" as a requester.

Adequate and good quality advisor base

• Compared to the existing expert network, VisasQ has many registrants and the target audience is broad, so it is possible to cover a wide range of industries and operations.

Number of registrants	VisasQ Advisor Experience Area
	Japan	APAC all regions
	only	total
100,000

50,000

0
	VisasQ	Foreign	Japanese
		competitor A	competitor B

*Data of VisasQ as of April 2021

12

Mechanisms that increase the value of the database

• Increased number of advisors x Increased number of matchings = Improvement in data quality and quantity
• • Improvement of platform value: "Finding the desired knowledge quickly and reliably"
  • A virtuous cycle that leads to more requests
• Creating a database of advisor knowledge leads to high barriers to entry

Advisor

Registration

Profile registration

Facts that you can easily recognize

・real name ・work history

・results that are easy to explain

・experienced industries / businesses

Matching
Digging deep for
associations with
requests	Enhance
・ unknown knowledge
database

• keywords
• age/scale/phase, etc.

Input Data

Increased number of	13
matches

VisasQ interview, the core service

• VisasQ's core service, where matching is fully supported by VisasQ staff
• • Create a list of advisor candidates for each request
  • Conduct a screening questionnaire in advance to achieve highly accurate matching
  • Support for schedule adjustment on the interview date

Client	VisasQ
Customer base, which is
centered on large	Provide platform
companies	Advance payment
	using tickets, etc
	1

Advisor referral request

*Requester decides to carry this out

based on screening results

2

Service flow

Money flow

Advisor

Register in knowledge

screening/ database Interview request

3

Providing

knowledge

(interview)

4

Payment of fee

(Deduction of usage fee)

5

14

Recurring revenue model beyond SaaS

• In addition to building up existing clients, acquire new clients each period
• Advance expansion of usage, grow transaction per account among existing clients
• Build a recurring revenue model to add revenue for each level of client (See p.25)

							(See p.25)
Growth in corporate	Growth in transaction
Build recurring revenue model
client accounts	per account
							Acquire
							new clients
							+
							Grow
							existing
							clients

15

Competitive environment of VisasQ interview

• Have established a strong competitive advantage as a leader in Japan
• Competing with global players by accelerating overseas growth

VisasQ strengths

	Overwhelming
iV	number of domestic
advisors *1
	Technology × operation *2
s	Domestic investment
a	resources *3
s	Diverse service lineup *4
Q	Current strong points

Increase overseas advisors

• Utilization of DeepBench
• Expand of SNG office

*1：see p.11 *2：see p.13,14

*3：see p.27,37,38 *4：see p.8,9

		Competitive situation
l G	•	Many overseas advisors are registered
b o	•	Few / no bases in Japan
l a
•	Low investment resources (personnel / funds)
l p	General global players
a
•	Gerson Lehrman Group(USA)
y
•	Guidepoint (USA)
e
•	AlphaSights (UK)
r
•	Third Bridge (UK) etc
Domestic player	•	Many small players
•	Few registered advisors
	•	Some players are withdrawing

16

Table of contents

1.Company and service overview

2.Financial results for the fiscal year ending February 2021

3.Management focus for the fiscal year ending February 2022

17

Results in fiscal year ending February 2021

• Business performance grows with platform value increased

Increased platform value

Business results growth

	Advisers
+33%※	140,000	+64%
+51%	Corporate client accounts
735		+63%
	Interview matches (full support)
+55%	19,473	+191%
*% in the arrow is year-on-year
	6→７	No. of
products	staff 109→151

Transaction volume 2,570million yen

Operating revenue 1,604 million yen

Operating income 208 million yen

offices 1→２

18

Business results highlights

• Transaction volume reached + 76.5% year-on-year in 4Q (December-February)
• Achieved + 63.9% growth for the full year . Accelerating growth from the last fiscal year

	Year to Feb 2021	4th quarter
	(December 2020 to February
		2021)
(Millions of		Year-on-year (previous 4Q)
yen)		(December 2019 to February 2020)
	This 4Q
		Actual	Rate of
		change
Transaction	789	447	+76.5%
value
Operating	477	286	+66.9%
revenue
Operating	75	9	+733.3%
income
Ordinary	74	△ 1	-
income
Net income	74	△ 1	-

Year to Feb 2021 full year

(March 2020-February 2021)

		Year-on-year
All year	(March-November 2019)
Cumulative
		Actual	Rate of
		change
2,570		1,568	+63.9%
1,604		983	+63.0%

1. 71 +191.5%

1. 57 +244.5%

1. 52 +282.0%

Full-year earnings

forecast

(previous forecast)

Forecast Progress value

2,250 114.3%

1,400 114.6%

1. 379.0%

1. 410.4%

1. 558.3%

19

Outline of 21/2 business results

• By product, transaction volume increased in both the core service and the new product group (p.21)
• Accelerated aggressive investment for future growth (p.27)
• Part of the excess profit was distributed to officers and employees as a result

Year to Feb

2020

(Millions of yen)	100

62.7

10.9	5.2	5.1	4.5

Transaction volume honorarium etc. Operating revenue Base SG&I costs Base earnings ① Advertising costs Recruitment cost Base earnings ② Singapore investment operating income bonus fund operating income

① Expansion of	② Acceleration of proactive
transaction volume
investment
+1,002 million yen
+74 million yen

	Year to Feb
	2021
								Proactive investment areas
(Millions of yen)	100
					62.4
							17.6		11.2		10.4		8.1

20

Transaction volume honorarium etc. Operating revenue Base SG&I costs	Base earnings ① Advertising costs Recruitment cost Base earnings ② Singapore investment operating income	bonus fund	operating income

Increased transaction volume:

Multi-layered revenue sources

• Both core service and new products expand
• Utilization of knowledge DB progresses, contribution of new product groups to the overall performance progresses

（Million yen）

478

419

New product

groups +71.5%

1,568

1,000

1,227

820

2,570

other

etc

1,985

Core service +61.8%

Diversification of the revenue base progressed with new product groups

In particular, the growth of VisasQ lite contributed

(See p.26)

See next page onward

2018/2 2019/2 2020/2 2021/2

21

Growth of VisasQ interview, a core service

• Achieved a significant increase in the number of accounts due to increased marketing
• "Transaction volume of VisasQ interviews per account" grows mainly for existing customers

KPI①			KPI②
Number of corporate client accounts			Transaction volume of VisasQ
* 1, 2				interviews per account
	(Millions of yen)
(accounts)		+8.0%
	+51.5%

KPI ① x②

Transaction volume of the main product, VisasQ interview * 3

(Millions of yen)

+61.8%

※1． "Corporate client" means a corporate customer who concludes a corporate contract and utilizes the full support format "VisasQ", this does not include corporate customers who utilize only "VisasQ lite".

• 2 ． The "number of corporate client accounts" is the total number of corporate clients who have used the "VisasQ interview" in the past year calculated from the time of each aggregation based on the corporate contract. If multiple departments conclude separate contracts for the same corporation, multiple counts will be applied.
• 3 ． "VisasQ interview transaction volume" refers to the transaction volume based on "VisasQ interview", And is calculated for the past 12 months starting from the end of each period .

22

KPI① Increase in the number of corporate client accounts

• Grow with a wide customer base including business corporations, consulting and financial corporations, and overseas clients
• In fiscal year ending in 21/2, significant acceleration in the number of accounts, especially with business corporations

Trend in the number of corporate client accounts

(accounts) 700

600		Overseas
		Consulting / financial
500		Business corporations

400			329
300		245
200	153
100
0
	2017/2	2018/2	2019/2

735 Overall +51.5%

485
	Business
	corporations
	+78.4%
2020/2	2021/2

23

KPI ② VisasQ interview transaction volume per account

• Increased due to increased frequency of customer use
• Although the number of new customers of business corporations increased, the amount of interviews per account grew.

VisasQ interview transaction volume per account

(Million yen)	+8.0%
3.0	2.7
2.5
2.5
2.5

2.0

1.6

1.5

1.00.8

0.5

0

2017/2

2018/2

2019/2

2020/2

2021/2

24

① KPIx② VisasQ interview transactions

• Increased service usage, accelerated the growth rate of existing customers.
• New customers that accumulate every term are directly linked to growth from next year onward. We achieved a significant increase in new customers in the 21/2 period
• We steadily build a recurring revenue model

	Changes in VisasQ interview transaction volume
	by customers acquired in each fiscal year
(Million yen)	1,984	When acquired

1,800	Acceleration on both sides

1,500	Growth of	Acquire new
existing	+ customers
	customers
1,200			+51.2%
900			811
			new
600			+36.9%
		401
300		new
	139
0
	2017/2	2018/2	2019/2

new customers

+59.0%

1,227

new

Existing

customers

+40.7%

2020/2

new	2021/2
	2020/2
	2019/2
	2018/2

2017/2

2016/2

2015/2

2021/2

25

Growth of new products: VisasQ lite

• We achieved particularly large growth in this new product group
• Clients and advisors match themselves on a web-based platform

Large companies

Mid-sized companies

Professional firms

SME

Startup

individuals

Take rate

60%+

30%

VisasQ (full support)

• Centered on large companies and professional firms
• Our staff step in with matching

Due to different customer base,

cannibalization is restricted

VisasQ lite (self matching)

• SMEs, startup individuals
• Matching is done by the client and advisor on the web

26

Investment performance backed by strong performance

• Since the return on investment of customer acquisition exceeds expectations, additional advertising expenses was invested
• • Held a large-scale online event for clients in February
• Actively promoted recruitment and respond to growth
• Losses in Singapore are limited. Make balanced investments for growth

Advertising expenses

(Millions of yen)

Number of officers and employees	Investment in Singapore
at the end of the term
(* Impact on recruitment costs as a one-time cost)
(persons)	(Millions of yen)

3Q

results

3Qres

ults

N/A N/A

* "Singapore investment": The amount obtained by deducting the expenses 27 of the Singapore corporation from the contribution of the operating revenue

by the Singapore corporation in management accounting.

Changes in SG&A expenses (= operating expenses)

⚫

⚫

Recorded bonus of 60 million yen for performance allocation as personnel expenses in the 21/2 period SG & A expenses increase, but SG&A ratio declined even after distribution of bonus reserve

Ratio of SG&A to operating revenue	92.7%		87.0%
Ratio of SG&A to transaction value	58.2%		54.3%
			1,396
			309
(Million yen)			22
			82
	912		48
		+20	115
Other	233
SNG investment	2	+74
Rent	48
Recruitment cost	49
Advertising expense	41
			820
		+281
Personnel expenses	539
	2020/2		2021/2

For the past trends See p.39

28

(Reference) Trends in Quarterly Results

• Transaction volume continued to grow and profitability steadily improved
• 4Q take rate dropped due to promotional campaigns and product mix

Million yen

(Millions of yen)

Transaction value Operating revenue Operating income

Operating revenue margin (Take rate)

2020/2

｜

2021/2

Factors of lower take rate

• Core service take rate remained stable
• Conducted sales expansion campaign for new products
• Product mix by

expanding VisasQ lite

*Different target groups, small cannibalization with core services

29

Balance sheet

⚫

⚫

Implemented public offering of 693 million yen due to an IPO in March 2020.

In operational terms, there has been no great structural change in the balance sheet

(Millions of yen)	2020/2	2021/2	change			2020/2	2021/2	change
Current assets	559	1,799	+1,240		Current Liabilities	358	758	+400
Cash and deposits	321	1,357	+1,036		Accounts payable	68	118	+50
Accounts receivable	202	411	+209		Interest-bearing	11	0	△11
	debt
Other	36	29	△7		Pre-payments	140	333	+193
					Other	139	307	+168
Fixed assets	88	169	+81		Fixed liabilities	190	190	±0
					Interest-bearing	190	190	±0
					debt
					Equity	99	1,020	+921
Total assets	648	1,969	+1,321		Total liabilities	648	1,969	+1,321
	and equity

30

Table of contents

1.Company and service overview

2.Financial results for the fiscal year ending February 2021

3.Management focus for the fiscal year ending February 2022

31

Full-year earnings forecast for the fiscal year ending February 2022

• Transaction volume is expected to grow by more than 40%
• Operating income is expected to be flat in order to anticipate aggressive investment

Full year to February		Full-year earnings forecast for the
2021 (March 2020-		fiscal year to February 2022 (March
February 2021)		2021-February 2022)

(Million yen)	Year ending February
				Forecast value	growth
	2021
Transaction volume	2,570				3,700	+43.9%
Operating revenue	1,604				2,180	+35.9%
Operating income	208				230	+10.3%
Ordinary income	197				220	+11.5%
Net income	201				150	△25.7% *

*Net income is expected to decrease due to a decrease in the amount of

deferred tax assets as the entire amount of tax loss carryforwards is 32 expected to be used in the fiscal year ending February 2022

Future policy for expansion of business domains

• Establish policies for the current fiscal year to expand business domains(p.10)
• Aggressive investment in FY21/2, recovery by high transaction volume
• Continue aggressive investment in FY22/2 as long as return on investment is expected

Future

vision

Expansion		of Development comprehensive solutions knowledge
domainsbusinessof 10)(p.
Overseas expansion

Investment to realize future vision

Main initiatives

for this term

Sustained growth

of VisasQ interviews

Expansion of new

product group

Monetization and

acceleration of

overseas business

Marketing

Investment

Acquisition of

human resources

• Sustain growth it is a stable source of revenue
• Continue proactivev expansion measures to business corporations
• Promote new product groups by utilizing the knowledge database
• Multi-layeredrevenue sources for future growth
• Acceleration of overseas business centered on the Singapore subsidiary
• Planning and preparing for expansion to other regions
• Expansion of marketing to acquire business corporations
• Achieving both aggressive recruitment planning and productivity improvement

33

Main measures by client attribute

• Actively spend on advertising to increase the number of new corporate client accounts
• We aim to increase transaction volume per account of existing customers

Business

corporation

Consulting &

Financial

corporation

Overseas client

⚫ Active spending on advertising, to increase the number of v

new corporate client accounts

• Promote use within existing customers, horizontal expansion to other departments
• Boost sales to hedge funds, securities companies, regional banks, etc.
• Acquiring new clients at Singapore corporation
• Introducing Japanese advisors as our core value

34

Initiatives for this term ①

Growth into a comprehensive knowledge platform

⚫

⚫

⚫

VisasQ interview, our core service, is growing steadily

Utilizing the knowledge database, the contribution of new product groups is expanding lite has a low take rate, but there is no cannibalization with other services

(million yen)

other

VisasQ lite

VisasQ interview

other

(forecast) 35

Initiatives for the current term ① -2

Growth of VisasQ interview

• Expect a significant increase in the number of accounts through aggressive marketing
• "Transaction volume of VisasQ interviews per account" is maintained or increased by promoting usage

		KPI①		KPI②	Transaction volume of the main product,
		Number of corporate client		Transaction volume of VisasQ
		accounts * 1, 2		interviews per account	VisasQ interview * 3
(accounts)	(Millions of yen)	(Millions of yen)

	(forecast)		(forecast)
		(forecast)
*1． "Corporate client" means a corporate customer who concludes a corporate contract and utilizes the full support format "VisasQ", this does not include corporate customers who
utilize only "VisasQ lite".
*2 ． The "number of corporate client accounts" is the total number of corporate clients who have used the "VisasQ interview" in the past year calculated from the time of each	36
aggregation based on the corporate contract. If multiple departments conclude separate contracts for the same corporation, multiple counts will be applied.

*3 ． "VisasQ interview transaction volume" refers to the transaction volume based on "VisasQ interview", And is calculated for the past 12 months starting from the end of each period .

Initiatives for this term ②

Spend on boosting the number of corporate client accounts

⚫

⚫

Increased awareness of services, higher advertising costs and reduced CPA

Improved efficiency allows aggressive boost in advertising expenses in the 22/2 period.

Marketing activity flow (example)

•	web advertising	Inside	Field	contract	Interview	Interview
•	Webinar
sales	sales	request	proceed
•	Exhibition
•	Introduction

advertising expenses

million yen	173

Further increase

planned

+180.4%

(forecast)

CPA*

30% decrease

*

Reducing CPA while increasing

advertising expenses

*CPA= Cost per Acquisition of new contract	37
*Graph created with numerical values calculated exponentially, from FY19 / 3Q as 100

*FY20 / 4Q figures increased due to the conference held in February 2021.

Initiatives for this term ②-2

Investment in human resources

• Continued aggressive hiring on the back of strong performance
• Look forward to growth in the next fiscal year and beyond

Number of officers and employees	Hiring cost
at the end of the term
（people）	（million yen）

	(forecast)
	(forecast)

38

Operating Expenses (= SG&A Expenses)

• The ratio of operating expenses to transaction volume continues to decline and operational efficiency continues to improve.
• A slight increase relative to operating revenues due to the growth of new products with low take-rates

(Million yen)

307

51

15

16

38

187

	Ratio of SG&A to		Ratio of SG&A to
	transaction value		operating revenue
				1,396
				274
				57
		912	82
		48
		233	115
567	2
48
		49
144	41	820
31
37
39	539
316

1,950

419

82

82

60

173

1,133

other

SNG expense Rent Recruitment cost

Advertising expenses Personnel expenses

(forecast)

39

(Ref.) Quarterly progress forecast

• Continuous quarterly growth
• Progress rate is therefore set to increase as the period elapses.

Quarterly progress	3,700
Million yen

4Q

2,570

2,180

4Q	789	3Q

1,604

3Q	691	478	2Q
2Q	609	435
		386	1Q
1Q	481
304

Transaction	Operating	Transaction	Operating
volume	revenue		volume	revenue

2021/22022/2((forecast)

40

Disclaimer

Handling of this document

This document contains forward-looking statements. These statements were made solely from the information available at the time these statements were made. Furthermore, these statements do not guarantee future results, and involve risks and uncertainties. Please note that the actual results may largely differ from the future forecasts due to environmental changes, etc.

Factors that affect the actual results include, but are not limited to, domestic and overseas economic conditions and industry trends relating to our company.

In addition, the information about other companies included in this document is cited from publicly- available information, etc., and our company has not performed any verification on the accuracy, appropriateness, etc. of such information, and offers no guarantee of such.

Contact information: IR email: [e-mail])

Regarding the progress of the management indicators disclosed in this document, we plan to disclose them in the explanatory material which is supplementary to the quarterly financial results announcement. We also plan to disclose the latest information, including the progress of this document, in the full-year financial results announcement.

41

Appendix

42

(Reference) Business risks and strategies

Main business risks

Possibility of occurrence

Timing of occurrence

Impact on realizing
growth and	Risk content and our strategy
implementing business
plans

competition

medium

Any time

• Decline in market share
• falling order unit prices

There is competition with a) overseas companies that mainly develop similar businesses overseas and b) relatively small domestic companies. Our USP is a knowledge database with about 140,000vpeople registered, from which we provide various services. Overseas companies which are developing similar businesses in Japan will find it difficult to create a database of knowledge of Japanese advisors, due to differences in culture, values, language, etc.

Service stability /

soundness

low

Any time

• Decline in clients
• Defection of advisors

Advisors may unintentionally provide customers with information that is subject to

confidentiality. For that reason we have a dedicated matching team in the full support format

to check if there are any items that seem inappropriate in the content of the request. In addition, VisasQ lite confirms the content of the request, including automatic detection of keywords. We also provide regular training to our advisors to alert them and advise them to pay attention to their confidentiality obligations.

Focus on specific business partners

low

falling

⚫ Decline in	There is one business partner whose sales performance exceeds 10% of the total. The business
transaction
relationship with that company is good and stable. Further, the ratio to that company is
volume
declining while sales to other customers are increasing.

Overseas

expansion / M & A

medium

occasionally

• Reduction of overseas expansion
• Stagnation of M&A

We had been expanding our business mainly in Japan, but from April 2020 we have been proceeding with overseas expansion by establishing a local subsidiary in Singapore. In addition, we consider M&A as one of the options for business development for our future business expansion. As a result, there is a possibility that risks different from those of our own business development in Japan may occur, but we will proceed with business development after taking sufficient measures to minimize the risks.

From the perspective of proactive information disclosure, this report describes matters that our company considers particularly important to investors' judgment. The information contained in this section does not
necessarily include all risks associated with investments in our company shares. We are aware of the potential for these risks and is committed to avoiding them and responding promptly if they do occur. For risks other	43
than those described in this section, please refer to "Business Risks" in the securities report in addition to this document.

(Reference) Stock information

• VC ownership ratio dropped from 11.0% to 8.3%

other	0.6%	0.4%
			8.3%
VC	11.0%
		20.8%
	19.9%
Individual investors
			19.9%
Institutional	16.8%
investors

51.7%50.6%

founders

As of August 31, 2020

As of February 28, 2021

44

(Ref.) Make up of employees

• Engineers make up nearly 30%
• A sophisticated and productive organization, with technology x operations

Board of Directors,

Audit & Supervisory

Board Members

Marketing etc.

Back office

VisasQ interview matching

Technology x Operation

Engineers

In charge of new products

(expert survey, project、partner, lite)

sales

45

(Ref.) History

March 2012	Established walkntalk Co., Ltd.
December 2012	'VisasQ' beta version operation started
October 2013	'VisasQ' officially released
November 2014	Changed trademark to 'VisasQ'
December 2016	Entrusted with comprehensive support project for the Teijin "One Teijin Award" (The first project of the current VisasQ
	project)
April 2017	Inauguration of dedicated overseas response team "VQ Global"
January 2018	Launched "VisasQ expert survey", a web survey for BtoB
February 2018	Received the Female Entrepreneur Award (Minister of Economy, Trade and Industry Award) at the 4th "Japan Venture
	Awards"
June 2018	Selected as a "J-Startup" company by the Ministry of Economy, Trade, and Industry
June 2019	"VisasQ web exhibition" release
August 2019	Full support format "VisasQ", self-matching format "VisasQ lite", English name of the service changed to "VQ" to
	strengthen global support
December 2019	Established a representative office in the Republic of Singapore
January 2020	Began providing a team plan in the self-matching format "VisasQ lite"
April 2020	Established a local corporation "VisasQ SINGAPORE PTE. LTD" in the Republic of Singapore
December 2020	"VisasQ board" released
January 2021	Renamed "VisasQ Business consignment " to "VisasQ partner"	46