Financial Results Explanatory Material
Financial Results for the 2nd Quarter of
Fiscal Year Ending September 30, 2019
Atrae,Inc.（TSE 1st Section：6194）
©2019 Atrae, Inc.
Agenda
1 . C om pa n y Ove r v iew
2 . F i n a n c i a l High l igh ts
3 . A b ou t B us in e s s
4 . Referen ce s
©2019 Atrae, Inc. 2
Agenda
1 . C om pa n y Ove r v iew
2 . F i n a n c i a l High l igh ts
3 . A b ou t B us in e s s
4 . Referen ce s
©2019 Atrae, Inc. 3
O u r V i si on
Create the Company that
Attracts People
in the World.
We stick to creating a company and our ser vices we are proud of to
continue be ing an attractive com pany that people want to c heer for.
We will become an essential company from all over the world as a
global company of Japan.
J apan’s Fi rst
People Tech Company
Re d e f ine d ou r com pany w it h a hope for
“Creating business that expands people’s possibility through technolog y”
What is “Company”?
Making people who
Company =
are involved happy
Employees Clients Stockholders Partners and Society
2019Atrae, Inc. 6
Value cycle of “making people happy”
We think that it is important to always “do the right things” in order to continuously keep
this cycle. By keeping this cycle and have more people get involved, we will achieve our
vision to “Create the Company that Attracts People in the World”.
The most competitive advantage in the
intellectual industrial society is “manpower”
Pursuit employees’ happiness Hiring capable members and
and feel rewarding making an environment for them to flourish
Creating valuable business
Capable members will join
By working in Atrae,
and continuously work Enables providing value
it enriches employees’ life
enthusiastically and proactively to users and clients
Social Contribution through
patronage, employment, tax Increase Value of Stock Increase Sales and Profit
2019Atrae, Inc. 7
Our vision “Create the company that attracts people
in the world.” is on the extension of
the value cycle of “making people happy”.
The most competitive advantage in the
intellectual industrial society is “manpower”
Pursuit employees’ happiness Hiring capable members and
and feel rewarding making an environment for them to flourish
Creating valuable business
Capable members will join
By working in Atrae,
and continuously work Enables providing value
it enriches employees’ life
enthusiastically and proactively to users and clients
Social Contribution through
patronage, employment, tax Increase Value of Stock Increase Sales and Profit
2019Atrae, Inc. 8
Future Development
With our highly engaged organization,
we challenge in creating business to expand people’s possibility
Creating many job satisfaction via suitable matching.
Continuous growth exceeding the market growth.
As one and only platform for organizational improvement,
contributed to improving engagement of many organizations
With a valuable matching,
becoming a must-have app throughout the world
Challenging a new business within the
New Business People Tech field
©2019 Atrae, Inc. 9
Agenda
1 . C om pa n y Ove r v iew
2 . F i n a n c i a l High l igh ts
3 . A b ou t B us in e s s
4 . Referen ce s
©2019 Atrae, Inc. 10
First Half of FY2019
Sales 1,485 Million yen YonY +41.9 % Progress 49.5 %
FY2019 Q2
Operating Profit 461 Million yen YonY +40.8 % Progress 66.0 %
Green’s major indicator Updated Our Best
Business （Number of active users・Hired Employees・Job Posted・ Cumulative Registered Companies）
Companies adopting wevox Significant increase
Great Place to Work Japan
No.1
under 100 members
To p i c s
Great Place to Work Asia
No.5 Asia’s Best
under 500 members Workpl aces
2019
©2019 Atrae, Inc. 11
Y on Y Comparison
Updated Our Best Sales and Operating Profit
FY2018 FY2019
YonY
（Million yen）
Q2 Q2
Sales 1,047 1,485 +41.9%
Operating
Expense
719 1,024 +42.4%
Operating
Profit
327 461 +40.8%
Operating
Margin
31.3% 31.1% △ 0.2pt
©2019 Atrae, Inc. 12
Y on Y Comparison（sales）
FY2018 FY2019
YonY
Q2 Q2
（Million yen） Actual % of Sales Actual % of Sales % % of Sales
Sales 1,047 100.0% 1,485 100.0% +438 +41.9% -
Operating
719 68.7% 1,024 68.9% +304 +42.4% +0.2pt
Expense
Investment in
（Ad Spend） (439) (41.9%) (615) (41.4%) (+176) +40.2% (-0.5pt) consideration of
advertising effects
（Personnel Hiring conscious of
Cost）
(164) (15.7%) (219) (14.8%) (+55) +33.6% (-0.9pt)
productivity
Development costs
（Other） (115) (11.0%) (188) (12.7%) (+73) +63.4% (+1.7pt)
etc
Operating
327 31.3% 461 31.1% +133 +40.8% - 0.2pt
Profit
©2019 Atrae, Inc. 13
FY2019 Guidance
Progress as planned
FY2019 Q2 Actual FY2019 Guidance （Million yen）
Sales 1,485 3,000
49.5%
Operating Profit 461 700
66.0%
Ordinary profit 462 690
67.1%
Net income 319 476
67.0%
０％ 50％ 100％
©2019 Atrae, Inc. 14
Shareholding structure
Rising prevalence of Institutional investors
100%
6.8 % 13.1 %
33.6 %
33.9 %
50%
26.7 %
26.0 %
Foreign corporation
31.7 % Trust Bank
25.6 % Other Financial institutions
Financial Instruments Business Operators
Other Corporation
Individuals
0%
FY2018 Q4 FY2019 Q2
©2019 Atrae, Inc. 15
Agenda
1 . C om pa n y Ove r v iew
2 . F i n a n c i a l High l igh ts
3 . A b ou t B us in e s s
4 . Referen ce s
©2019 Atrae, Inc. 16
Our People Tech Business
Job offer media with
contingency fee
Attain locating the right
person in the right place via
suitable matching between
company and job seeker
Organizational
Improvement Platform Business Networking App
Visualize employee With a valuable match
engagement in order to between persons, accelerate
activate organization, utilize business
and nurture sustainment of
personnel via Saas model
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Job search website for IT
industry with contingency fee
Point1 The First Model in this industry
High recognition from both users and clients due to the leading
advantage
Point2 Inexpensive uniform fixed price
Comparing with competitive services, low cost of hiring excellent talent
without risk
Wh ere d oes t h e n a me of
Point3 Direct recruiting platform
Green com e f rom?
Traffi c li gh t " green l igh t" mea n s t h at we ca n Job seekers and companies can take action and communicate
go. T h e s i te “ G re e n " m ea n s t hat job s eekers interactively
ca n f i n d t h e ir ow n " g re e n l ig ht”.
©2019 Atrae, Inc. 18
Green Job search website for IT/Web industry with contingency fee
Attain efficient matching via technology
Labor intensive business model is being replaced by IT in many industries.
Green is replacing recruiting agencies by matching job seekers and companies with IT.
Ex.:Replacement of Travel Agency by Expedia
Expedia
Customer Travel Agency Accommodations Customer Accommodations
Internet Platform
Replacement of Recruiting Agency by Green
Green
Job Seeker Recruiting Companies Job Seeker Companies
Agency
©2019 Atrae, Inc. 19
Green Job search website for IT/Web industry with contingency fee
Green established a unique position
Superiority × Low Cost × Technology
Stoc k a n d Us e of Pr i ce Pre d o min an t
Bi g D ata Com pet i tive n e ss S up e rio rity
Stocking and making use of Low price due to no need of Pioneer of Contingency fee
data via Green ※1 advisers and facility cost model（ over 10 years ）
Number of Cumulative
Registered Company
Professional Adviser
More than 6,000
more
than
Number of
making use of
10 Registered User ID
data years
Counseling Facility
More than 600 thousand
Business with no fixed cost
High precision within High recognition between
High competitiveness
the use of big data in terms of cost
both companies and users
※1 Action data, profile data, selection data
©2019 Atrae, Inc. 20
Green Job search website for IT/Web industry with contingency fee
Companies from various industries introduce Green
Though companies adopting Green is mostly in the IT/Web industry, digitalization is
taking part in many industries. With the raise of credibility and recognition due to the
market change to 1st section of TSE, many prominent companies have introduced Green.
©2019 Atrae, Inc. 21
Green Job search website for IT industry with contingency fee
The number of active users
Updated the number of newly registered users too
（people）
40,000
Y on Y increase due to effective advertising
32,510
27,151
30,118
28,135
26,920
23,434
22,150
20,682
19,488
20,000
16,900 17,080
15,443 15,758
12,842
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
※Quarter transition
FY2016 FY2017 FY2018 FY2019
※1 Active user：Job seekers who log in at least once a month among job seekers who are registered with Green
©2019 Atrae, Inc. 22
Green Job search website for IT industry with contingency fee
Seasonal fluctuation but steady growth
（people） H i re d E m p l o y e e s （ Q u a r te r ）
1,000
Y on Y +20%
721
695
602 609 619
547 543
511
491
500
412 397
396
342
226
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
FY2016 FY2017 FY2018 FY2019 ※Quarter transition
©2019 Atrae, Inc. 23
Green Job search website for IT industry with contingency fee
Steady increase of
newly registered companies
Cu m u l at i v e Reg i ste re d C o m pa n i e s
（Company）
8,000
6,334
5,963
5,277
4,585
4,027
4,000
FY2015 FY2016 FY2017 FY2018 FY2019
©2019 Atrae, Inc. 24
Green Job search website for IT industry with contingency fee
Increase of job posted due to increase of
registered companies
J o b s Po s t e d
（Job）
18,000
15,201
14,873
13,982
13,019
12,424 12,493
12,000 11,404
10,360
9,593
8,835
8,222
7,368
7,057
6,665
6,000
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
FY2016 FY2017 FY2018 FY2019
※Quarter transition
©2019 Atrae, Inc. 25
Green Job search website for IT/Web industry with contingency fee
Potential Growth of Green
Green not only covers IT industry but also sales, accounting, and more
Occupancy of Green towards the market size is insignificant, huge potential of growth remains.
※3 ※4
Recruitment
Green’s Market Size Green Occupancy
Market Size
All Industry 286 B yen ※1
170 B yen 1.3%
IT Industry 86 B yen ※2
51 B yen 4.5%
※1 Yano Research Institute "Current Status and Future of Human Resource Business 2017 Edition
※2 DODA job change job offer magnification report (July 2018) figures calculated for how many candidates for mid-career recruitment
are applied to one job applicant
※3 Green is a discounted model of Recruitment Agency by 60% The market size is estimated 1700 B yen
※4 Green’s sales calculated as 23 B yen（FY2019 Guidance）
©2019 Atrae, Inc. 26
Platform for organizational
improvement
Point1 Visualization of engagement score
The first platform to visualize engagement in Japan, supervised by
professor Shimazu of Keio University, a leading expert in the country
Point2 Utilizing technology
Automatically analyze the huge amount of data collected and enables
immediate grasp of the organization's issues
E nga gem e nt Point3 Low price with SaaS model
In d ex to measu re th e u n d e rsta nding a nd Offer a low price of ¥ 300 per employee per month
con tri b uti o n o f ea c h e m p l oyees fo r th e
com pa n y ’s st rateg y o r goa l .
Ca us a l re l atio n sh ip w ith p e rforma nce is
a ca d e mi cal l y p rove n .
©2019 Atrae, Inc. 27
wevox Organizational Improvement Platform by Engagement Survey
wevox Use Case
Answer
Settings
Simple UI and answer anywhere with any device
1 Register Employee Data ※1
wevox
Engagement Cycle
2 3
Data Process・Analyze Action
Tally automatically real time Take action towards problems
Analyze each group and attribute
※1 wevox introduces “pulse survey” that is a simple questionnaire which repeats every 1-2 months
©2019 Atrae, Inc. 28
wevox Organizational Improvement Platform by Engagement Survey
wevox has been introduced in many industries
Companies adopting wevox cover many different industries and sectors such as, IT, securities, medical,
750 companies and organizations adopts wevox and obtained
food, sports teams. Currently, more than
more than 7 million respond data.
Reference from wevox homepage
©2019 Atrae, Inc. 29
wevox Organizational Improvement Platform by Engagement Survey
Potential growth of wevox
Price Potential
Potential Target
Competitiveness Market Size
Number of Employed Person More than
300 month 240B
※2
※1
￥ per
67.2M People
￥
yearly
Wide range of industries Pursuit the expansion
Targeting wide range of
including sports and
Apple, Amazon, Facebook of the market size by
clients via SaaS model
educational organizations
を含む35%が取り⼊れている rising wevox’s pricing
※1 Ministry of Internal Affairs and Communications Statistics Bureau
※2 Calculation : Number of Employed Person 67.25M people×¥300per person×12months＝¥242B
©2018 Atrae, Inc. 30
完全審査制AIビジネスマッチングアプリ yenta
Professional networking app to create
“Encounters for accelerating business”
Realize an attractive encounter
Point1
beyond organizational boundaries
Promote open innovation, diversification of working methods,
productivity improvement, etc.
Point2 Utilizing technology
Artificial intelligence realizes large number of matching
Point3 High user satisfaction
★4.1 (309 responds)
Most responds are positive with a high satisfaction rate
©2019 Atrae, Inc. 31
yenta Business Matching app based on AI recommending system
How to use yenta
Recommendation Matching Meet Up
Analyze swipe data with artificial Swipe the recommended users User exchange messages and
intelligence and select 10 based on your interest. meet up for a lunch or a tea etc.
candidates who are compatible Matching is made only when It also leads to entrepreneurship,
with users. Recommend at 12 both users swipe right. investment and recruitment
o'clock every day.
©2019 Atrae, Inc. 32
yenta Business Matching app based on AI recommending system
Matching Cases
Entrepreneurship Recruitment Obtained Job Offers Investment＆Participation
Inner Resource Inc. connehito Inc. Freelance Researcher Mr. Kuroda Freak Out Inc.
Entrepreneur × Engineer Internal PR × Engineer Freelance × Various Business Persons Executive × Engineer
©2019 Atrae, Inc. 33
yenta Business Matching app based on AI recommending system
Potential growth of yenta
Shifting from companies
High Active Rate Expansion based on cities
to individuals
C o m pa n y Individual
Platforms such as SNS or Currently, yenta has a high Since yenta is an app, it is
Crowdfunding has expanded active rate despite of saving on relatively easy to expand both
and widen individuals’ stages advertisement expenses. In locally and globally. Especially
which led to an era future, yenta will start strategic in South East Asia, there is a
independent from companies advertisement and aim on high demand on meet ups
and organizations obtaining more users by between business persons
expanding areas.
©2019 Atrae, Inc. 34
Agenda
1 . C om pa n y Ove r v iew
2 . F i n a n c i a l High l igh ts
3 . A b ou t B us in e s s
4 . Referen ce s
©2019 Atrae, Inc. 35
Competitive Advantage
Organizational Strength
to Attain Growth Strategy
High Rete ntio n Rate H i g h E n gage m e nt High Productivity
Yearly Average
60
People Leaving No.
No. 1
1
1.6 people
Energize your team with honest communication cycle
※ immediate 3 years
30
No.1 No. 5
Average Age
29.5 years old
※ under 100 members ※SMALL AND MEDIUM FY2012 FY2014 FY2016 FY2018
High employee engagement enables mid/long term Productivity has been
strategy planning and practicing increasing this past 7 years
©2019 Atrae, Inc. 36
Transition of sales per employee
Updated our best
productivity
（million yen）
60
57
52
45
37
30
FY2015 FY2016 FY2017 FY2018
©2019 Atrae, Inc. 37
FY 2019 Guidance
Green will maintain a high growth rate
wevox and yenta will invest in advance for the expanding phase
+30 %
3,000
Sales 3 billion yen ( YonY 30% )
Sales Profit 0.7 billion yen
2,306
1,830
1,312
837
691 700
560
390
94
（million yen） FY2015 FY2016 FY2017 FY2018 FY2019 Forecast
©2019 Atrae, Inc. 38
FY 2019 Guidance
FY2018 FY2019 YonY
(million yen)
Sales 2,306 3,000 +30.1%
Operating Profit 691 700 +1.3%
Ordinary profit 659 690 +4.6%
Net Income 464 476 +2.7%
©2019 Atrae, Inc. 39
Appendix
Name At ra e , I n c .
Business Outline G re e n : a cont i n ge n c y fe e ba si s j o b si te
ye n ta : a m atc h i n g a p p for bu si n ess p rofessi on al s w i th
a n A I ba se d re co m m e n d i n g sy ste m
we vox : a p l atfor m for orga n i zati on a l i mp rovemen t
Foundation Octob e r, 2 0 0 3
Management Yosh i h i de A rai, Fou n d er/C E O
Employee 4 6 (A s of Ma rc h , 2 0 1 9 )
Capital Stock 1 , 0 7 4 (i n JPY M M )
Location Mi nato -ku , Tok yo, J a pa n
©2019 Atrae, Inc. 40
This material has been prepared based on information gathered at the time of its
preparation and is not in any way intended as a commitment to future
implementation. Also note that information contained herein has not been audited by
an independent certified public accountant or audit corporation, and includes financial
information based on past financial statements or accounting documents as well as
management figures not based on financial statements or accounting documents.
This document is an English translation of the original Japanese language document
and has been prepared solely for reference purposes. No warranties or assurances
are given regarding the accuracy or completeness of this English translation. In the
event of any discrepancy between this English translation and the original Japanese
language document, the original Japanese language document shall prevail in all respects.
©2019 Atrae, Inc. 41
©2019 Atrae, Inc.