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Financial results for the second quarter
of the fiscal year ending June 2020
BrainPad Inc.(Securities Code 3655)
February 07, 2020
Analytics Innovation Company ©BrainPad Inc. 1
Introduction
Our Mission
“Create a sustainable futureby advanced data utilization”
Our Vision
“Analytics Innovation Company”Bringing benefits of analytics / AI
to enterprises
Analytics Innovation Company ©BrainPad Inc. 2
Corporate Overview
Group Structure
Certifications
Consolidated subsidiaries
Unconsolidated subsidiaries
BrainPad Inc.
Mynd, Inc. BrainPad US Inc.
100% ownership
100% ownership
Trading name BrainPad Inc.
AddressShirokanedai Bldg.3-2-10 Shirokanedai Minato-ku,Tokyo 108-0071, Japan
Phone +81-3-6721-7001
Established 3/18/2004
Listed Section First section of the Tokyo Stock Exchange (Code: 3655)
Capital ¥ 523M(as of 12/31/’19)
Employees 307 (as of 12/31/’19, Consolidated)
ManagementTeam
Seinosuke Sato Chairman /Representative Director /Co-Founder
Takafumi Kusano CEO / Co-FounderMakoto Yasuda DirectorKo Ishikawa Director/CFOYoichiro Shiozawa Director Tomohiro Sekiguchi DirectorTetsuya Sano Outside DirectorMakiko Ushijima Outside DirectorHaruo Suzuki Statutory AuditorKatsuyuki Yamaguchi Outside AuditorKazutaka Okubo Outside Auditor
JIS Q 15001Auth.No: 10822646
PrivacyMark for enterprise is approved as
taking appropriate measuresto protect personal information.
Certification・SystemISO(JIS Q) 27001
Web recommendation・advertisement distribution technology・SaaS service used data analysis technology are certificated and registered to Japan Quality assurance organization
Analytics Innovation Company ©BrainPad Inc. 3
Analytics Business
Solusion Business
Our business fields to create valuable data
Data Consulting Business
AnalyticsD
igital Marketing
Digital Marketing Business
Products Business
Analytics Innovation Company ©BrainPad Inc. 4
- Receive orders and tackle projects according to the business challenges of each customer
- Project periods varies from several months to multiple years, team structures varies from a few people to around 10 people
- Totals are calculated as flow-type sales, but many customers re-contracting us every few months whomwe support over long terms
Analytics BusinessSupport enterprises to improve their business performance by Data analytics. Analytics consultant and specialized data scientists provide high value to their business. BrainPad holds 100+ data scientists which is biggest in domestically in Japan.
Characteristics/strengthsProfit structure of previous fiscal year (Consolidated results of fiscal year ended June 2019)
Primary services
- Personnel expenses accounts for most part of the cost of sales
- Other costs include server expenses and software expenses
Segment profitability: 42.6%
- Organization boasting the largest number of data scientists in the industry
- Experience in supporting broad range of businesses, without specializing in specific field
- Knowhow that allows us to apply cutting-edge technologies such as AI, statistical sciences and mathematical engineering to actual businesses
- Organizational strength that allows us to start hiring new graduates quicker than other companies in the industry, and to continue training around 10 to 20 new graduates each year
Reorganize and innovate businesses processesthrough the use of AI and machine learning
Training data utilization personnel / structuring organizations and systems
Improve marketing and CRM based on real time data
Apprehension of customer business structure through analysis;Establishment of customer growth strategies;Optimal distribution of resources (time, costs);Construction of marketing systems;Measurement of effects of policies ...and more.
Optimization of supply chains(Distribution, dispatch, staffing, demand prediction, etc.);Optimization of production processes (Fault detection, yield improvements, etc.);Detection of unauthorized transactions;Logic development utilizing AI;Image analysis by using deep learning ...and more.
Structuring and start-up support of organizations and systems for data utilization;Training data utilization personnel and providing customized programs incorporating data scientist training methods...and more.
Cost ofSales
Net Sales ¥1.4billion¥2.4billion
Profit¥1billion
Analytics Innovation Company ©BrainPad Inc. 5
- Approximately half is stock-type sales consisting of monthly usage fees and maintenance fees, and the other half is flow-type sales consisting of batched license sales, development sales, and human support sales
- Flow-type sales instantly increase where there are large license sales or orders for development or human support projects
Solution BusinessBusiness of developing data analytics platform and licensing of foreign-produced machine learning based packages and integrate them into enterprises’ systems. Licensing business domain is marketing automation/CRM, including social listening systems.
Characteristics/strengthsProfit structure of previous fiscal year (Consolidated results of fiscal year ended June 2019)
Primary products handled
- License purchase, subcontract expenses for contracted development, etc., accounts for most part of the cost of sales
- Subcontracting is used mostly for development work to control profitability
- Percentage of purchase and subcontracting expense is highest among our three lines of business
Segment profitability: 27.1%
- From standpoint that is not dependent on vendors, customers can choose from flexible systems that suit their needs
- Find and select unique foreign tools. Numerous tools are available in Japan only through us
- Based on abundance of experience, we are able to provide optimal analysis environments and tools for data utilization
Cost ofSales
Net Sales ¥1.3billion¥1.8billion
Profit¥0.5billion
exQuickWithout using SQL, marketer, business person can obtain necessary data intuitively.
Intuitivedata extraction
Crimson Hexagon ForSight™ PlatformAnalysis of worldwide customer engagement through social media.
Social listening platform
WPS AnalyticsAn Integrated Modular System perform statistical and graphing functionality, and makes it possible to run many applications written in the SAS language.
SAS-compatiblesystem
SAP® Predictive AnalyticsPredict target with score (%) , cluster, project demand by machine learning. Automate whole process.
Machine learning
Microsoft AzureProvide necessary functions for utilization of Big Data on Cloud Platform.
Cloud platform
BrainRoboRPA (Robot Process Automation) software.Improve efficiency of enterprises’ business process.
Robotics process automation
ProbanceMarketing automation for B2C market. Web visitors preference prediction by machine learning, get highest ROI.
MarketingAutomation
VizTactSupport business decisions with visual analytics enhanced by Machine Learning and Natural Language Processing.
Augmented Analytics
BrainPad is the exclusive reseller in Japan In-house product The others
Analytics Innovation Company ©BrainPad Inc. 6
- Products developed by our company are used on a monthly subscription basis (Majority of sales are related to “Rtoaster”)
- A stock-type business model in which sales increase as long as customers do not cancel their subscriptions
- Some flow-type sales from customized development and deployment consulting expenses
Digital Marketing BusinessSupport to enhance enterprises’ digital marketing businesses. Our home grown Rtoaster, provides DMP and recommendation services to enterprises. Rtoaster and Ad products are integrated by natural language processing developed by our wholly owned subsidiary Mynd, and our own analytics technologies.
Characteristics/strengthsProfit structure of previous fiscal year(Consolidated results of fiscal year ended June 2019)
Primary products handled (all developed in-house)
A majority of the costs of sales is for server expenses for operating products developed by our company and personnel expenses for developing products
Segment profitability: 22.4%
- Develop and provide “Rtoaster” which is the top-class share in the DMP market (3.0 billion cases of tracking, and 200 million items)
- Productization of sophisticated algorithms developed in-house, characteristic of an analysis company
- Can be incorporated with products of other companies, regardless of the vendor, and can perform digital marketing by employing “Rtoaster,” a private DMP, at the center
AdNoteOperation supporting tool for Ads. The two features are auto reporting (20 report types) and a simulation for advertising budget allocation.
Ads operation Support
ConomiAn algorithm find the most effective combination of an individual and a product from various combinations by utilizing collected and accumulated data source.
Recommend engine
FUSE LIGHTAutomate internet Ads by utilizing AI. Without using human operation, internet Ads is delivered to customer.
Ads operationAutomation
RtoasterVarious marketing tactics are applied using DMP. Top-class product in the private DMP domain.
Private DMPrecommendation
Mynd plusNatural language processing engine.
Analyze context, abridge, etc.
Natural LanguageProcessing
AdPencilSubmission supporting tool for web advertising. An easy operation and automation by AI.
Ads operation Support
Cost ofNet Sales Sales¥1.5billion ¥1.1billion
Profit¥0.3billion
Analytics Innovation Company ©BrainPad Inc. 7
Our Clients & PortfoliosThese listed clients have conducted business with us and permitted the use and publication of their name, or have already hadtheir name published alongside our own in press releases or other publications. published in the media.
(as of February 7, 2020; titles omitted; in no particular order)
Information technology and communications
Google Cloud Japan G.K., Yahoo Japan Corporation, NIFTY Corporation、GMO Research, Inc., OTSUKA CORPORATION, CCC Marketing Co.,Ltd., istyle Inc., Interspace Co.,Ltd., Aerosense Inc, ATLED CORP. , OM Network Co., Ltd., CrowdWorks Inc., JR East Net Station Co.,Ltd., STAR FESTIVAL INC., DAIWABO INFORMATION SYSTEM CO., LTD., Trend Micro Incorporated
Electronics Mitsubishi Electric Corporation
Chemical (include consumer product) Lion Corporation, KOSÉ PROVISION CO., LTD., FANCL CORPORATION, FUJIFILM Healthcare Laboratory Co., Ltd.
Medical・Pharmaceutical Bayer Yakuhin, Ltd., Medical Data Vision Co.,Ltd.
Retail・DistributionLawson,Inc., Takashimaya Company,Limited, TSUTAYA Co., Ltd, GEO CORPORATION,I-ne CO.,LTD, ASKUL Corporation, ENOTECA CO.,LTD., OAK LAWN MARKETING, INC., AUTOBACS SEVEN CO.,LTD., kai industries co., ltd., KONAKA CO.,LTD., ANA TRADING CO., LTD., Sogo & Seibu Co., Ltd., DIESEL JAPAN CO.,LTD, Dinos Cecile Co., Ltd., DORAMA INC., Nishikawa Sangyo Co.,Ltd., Baroque Japan Limited., PEACH JOHN CO.,LTD, K.K.B4F, FELISSIMO CORPORATION, Wacoal Corp.
Food provisions・Foodservice
SKYLARK HOLDINGS CO.,LTD., Ajinomoto Co.,Inc., Kirin Company, Limited, Kewpie Corporation, COCA-COLA(JAPAN)COMPANY,LIMITED, Meiji Co., Ltd., ASAHI BREWERIES, LTD., UCC HOLDINGS CO.,LTD,MORINAGA MILK INDUSTRY CO.,LTD., KIKKOMAN CORPORATION, SHiDAX CORPORATION, JAPAN TOBACCO INC.
Banking・Securities・CardSMBC Nikko Securities Inc., Mizuho Securities Co., Ltd., The Bank of Yokohama,Ltd., Yamaguchi Financial Group, Inc., JCB Co., Ltd., Daiwa Securities Co. Ltd.,MATSUI SECURITIES CO.,LTD., MUFG Bank, Ltd., Shinsei Bank,Limited, Sumitomo Mitsui Trust Bank, Limited,The Iyo Bank,Ltd., Orient Corporation,POCKET CARD CO., LTD.
Education・Human resource・Consulting service
Benesse Corporation, Persol Career Co., Ltd., Mynavi Corporation, Recruit Staffing Co.,Ltd., en-japan inc., BizReach, Inc.,Matching Service Japan Co., Ltd., TechnoPro Holdings,Inc., DISCO CORPORATION, Nikkei HR,Inc., Kawaijuku Educational Institution, Z-kai Inc., Pasona Tech, Inc., EXPERT STAFF INC.
Air transportation ・Travel・Hotel
Japan Airlines Co.,Ltd., ALL NIPPON AIRWAYS CO., LTD., Kyushu Railway Company, JTB Corp., Nippon Travel Agency Co.,Ltd.,YAMATO TRANSPORT CO., LTD, Yuko Yuko Holdings Inc., TABIKOBO Co. Ltd., Hilton WorldWide, PRINCE HOTELS, INC.
Construction・Housing Yachiyo Engineering Co., Ltd., MISAWA HOMES CO.,LTD., DAITO TRUST CONSTRUCTION CO.,LTD., Sekisui House,Ltd.,Nomura Real Estate Urban Net Co., Ltd., Mitsui Fudosan Residential Lease Co.,Ltd.
Media・Advertisement・Entertainment
NIKKEI STYLE, WOWOW INC., PIA Corporation, The Asahi Shimbun Company, SEGA Holdings Co., Ltd., SEGA Games Co., Ltd.,Fuji Television Network, Inc., THE YOMIURI SHIMBUN(Tokyo head office), JTB Publishing,Inc., HAKUHODO PRODUCT‘S INC., Starts Publishing Corporation, Delphys inc., Beacon Communications K.K., ㈱J-WAVE i.INC.
The others Satofull Co., Ltd., ANISPI HOLDINGS Co., Itamiarts.Inc.
Consolidated financial highlights
for the second quarter
of the fiscal year ending June 2020
Analytics Innovation Company ©BrainPad Inc. 9
923 1,1681,551
1,0481,342
1,6391,138
1,5331,222
1,6354,332
5,677
3,191
0
1,000
2,000
3,000
4,000
5,000
6,000
2018年
6月期
2019年
6月期
2020年
6月期2Q
百万円四半期別売上高
4Q
3Q
2Q
1Q
Consolidated net sales
■Digital Marketing ■Solution ■Analytics
Net salesMillion JPY
Million JPY
FY2018
FY2019
FY2020
FY2018
FY2019
FY20192Q
+27.1%
FY20202Q
FY20182Q
Net sales by Segment
Analytics Innovation Company ©BrainPad Inc. 10
560
1,021
410 444661
301
495
227 270 303322 326
176 240278
-598 -657
-327-468
-617-1,000
-750
-500
-250
0
250
500
750
1,000
1,250百万円 セグメント別営業利益
アナリティクス事業ソリューション事業マーケティングプラットフォーム事業本社費
51208 314160
278312
207
406
166
293
585
1,185
625
0
200
400
600
800
1,000
1,200
1,400
2018年
6月期
2019年
6月期
2020年
6月期2Q
百万円 四半期別営業利益4Q3Q2Q1Q
Consolidated operating income
FY2018
FY2019
FY2020
FY2018
Operating income Operating incomeby SegmentMillion JPYMillion JPY
+28.7%
■Digital Marketing■Solution■Analytics■Head office costs
FY2019
FY20192Q
FY20192Q
Retroactive Adjustment
(※)
FY20202Q
(※)Due to change of the organization in July,results of fiscal years ended June 2019 ispresented after retroactive adjustments.
Analytics Innovation Company ©BrainPad Inc. 11
35 147217111
192291
144
283117
259
407
881
508
0
200
400
600
800
1,000
1,200
1,400
2018年
6月期
2019年
6月期
2020年
6月期2Q
百万円 四半期別当期純利益
4Q3Q2Q1Q
53215 320162
281318
209
409
172
309
596
1,214
638
0
200
400
600
800
1,000
1,200
1,400
2018年
6月期
2019年
6月期
2020年
6月期2Q
百万円 四半期別経常利益4Q
3Q
2Q
1Q
Consolidated ordinary income / profit
FY2018
FY2019
FY2020
FY2018
FY2019
FY2020
Ordinary income ProfitMillion JPYMillion JPY
+28.7%
+49.9%
Unconsolidated financial highlights
for the second quarter
of the fiscal year ending June 2020
Analytics Innovation Company ©BrainPad Inc. 13
62 80116 138 124 143
2942
4855
4853
4462
7386
6981
42
33
2424
63
91
177217
261303 304 318
368
0
100
200
300
400
2016年
6月期末
2017年
6月期末
2018年
6月期末
2019年
6月期末
2020年
6月期2Q
2020年
2月7日時点
2020年
6月期目標
セグメント修正済
名 従業員数の内訳(単体)
その他
マーケティングプラットフォーム事業
ソリューション事業
アナリティクス事業
The number of employees
+22.6%
+20.3%+16.1%
FY2018
FY2019
FY20202Q
FY2016
FY2017
FY2020Plan
The number of employees
■Digital Marketing■Solution■Analytics■Others
As of02/07/’20
Analytics Innovation Company ©BrainPad Inc. 14
93 167 182315125
243 262
346
197
338145
273
560
1,021
444
66135.0%42.6%
44.8%48.9%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
0
200
400
600
800
1,000
1,200
2018年
6月期
2019年
6月期
2019年
6月期2Q修正
2020年
6月期2Q
百万円 四半期別セグメント利益
4Q
3Q
2Q
1Q
利益率
338 445 633360
545719459
682443
7241,600
2,397
1,352
0
500
1,000
1,500
2,000
2,500
3,000
2018年
6月期
2019年
6月期
2020年
6月期2Q
百万円 四半期別売上高
4Q3Q2Q1Q
Analytics Business(1)
Net sales Operation IncomeMillion JPYMillion JPY
FY2018
FY2019
FY2020
FY2018
FY2019
FY2019
Retroactive Adjustment
OperatingIncometo salesratio
+36.6%+48.9%
FY2020
Analytics Innovation Company ©BrainPad Inc. 15
198 205 204 177 161220
280
204267 249
305 306338 360
459 443 445
545
682724
633
719
38
5558 60
37
4953 53
4149 51 48
42
5255
46
36
46
55
45
35 37
0
10
20
30
40
50
60
70
80
0
100
200
300
400
500
600
700
800
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
顧客数百万円
売上高 顧客数
Analytics Business(2)
FY2015 FY2016 FY2017 FY2018 FY2019 FY2020
■Net sales■The number of customersMillion JPY
Customers
Analytics Innovation Company ©BrainPad Inc. 16
34 92114 16797
135155
13769
136101
131
301
495
27030321.4%
27.1%
32.8%29.2%
0.0%
10.0%
20.0%
30.0%
40.0%
0
200
400
600
2018年
6月期
2019年
6月期
2019年
6月期2Q修正
2020年
6月期2Q
百万円 四半期別セグメント利益4Q
3Q
2Q
1Q
利益率
282 385 529357
438510327
458441
5441,407
1,826
1,039
0
500
1,000
1,500
2,000
2,500
2018年
6月期
2019年
6月期
2020年
6月期2Q
百万円 四半期別売上高4Q3Q2Q1Q
Solution Business(1)
FY2018
FY2019
FY2020
FY2018
FY2019
FY2019
Retroactive Adjustment
FY2020
+26.2%
OperatingIncometo salesratio
+12.5%
Net sales Operation IncomeMillion JPYMillion JPY
Analytics Innovation Company ©BrainPad Inc. 17
108 109 117 123 109 110 110 114 119 125151 148 146 146 149 166 164
169 183208 227 228
65
145104
145
77 89
140 150 141 120
182224
136
211178
276
222
269 275
336 302 282
0 0
6574
90 91101 108
124 127 127142 146
153 158172
183 188175
186195 198 192 195
0
50
100
150
200
0
100
200
300
400
500
600
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
顧客数百万円
ストック型売上:月額サービス利用料、保守売上などフロー型売上:開発売上、人的支援売上など顧客数
Solution Business(2)
■Flow-type-sales■Stock-type-sales■The number of customers CustomersMillion JPY
FY2015 FY2016 FY2017 FY2018 FY2019 FY2020
Analytics Innovation Company ©BrainPad Inc. 18
65 85120 143
8896
126 123100113
6636
319 330
246 26624.2%22.8%
35.5%33.4%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
0
100
200
300
400
500
2018年
6月期
2019年
6月期
2019年
6月期2Q修正
2020年
6月期2Q
百万円 四半期別セグメント利益
4Q
3Q
2Q
1Q
利益率
301 336 388
331 358409
351 391
333365
1,3161,450
797
0
500
1,000
1,500
2,000
2018年
6月期
2019年
6月期
2020年
6月期2Q
百万円 四半期別売上高
4Q3Q2Q1Q
Digital Marketing Business(1)
FY2018
FY2019
FY2020
FY2018
FY2019
FY2019
Retroactive Adjustment
FY2020
OperatingIncometo salesratio
Net sale Operation IncomeMillion JPY
Million JPY
+14.9%
+8.1%
Analytics Innovation Company ©BrainPad Inc. 19
230 230 221 215 216 227 223 218 231239 250 251
260283 292 286 290 287 294 291
300 30020 11 13 41
58 62 64 61 4453 53 59 41
48 59 47 46 7097 74 88
109
125 126 124 127 123 130138 136 130 136
153 162164 171
180 180 178 181
217 219 225 220
0
50
100
150
200
250
0
100
200
300
400
500
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
顧客数百万円
ストック型売上:月額サービス利用料、保守売上などフロー型売上:開発売上、人的支援売上など顧客数
Digital Marketing Business(2)
CustomersMillion JPY
■Flow-type-sales■Stock-type-sales■The number of customers
FY2015 FY2016 FY2017 FY2018 FY2019 FY2020
The Medium-term
Management Plan(FY2020~FY2023)
Analytics Innovation Company ©BrainPad Inc. 21
BrainPad’s Mission and Medium-term Corporate Vision
MISSION Unwavering mission since our foundation
Create a sustainable future by advancing data utilization
Corporate Vision Vision for the next medium-term management plan
Analytics Innovation CompanyContinue to produce advanced and practical data utilization results in business, customer experience, and operations to become the leading company of the data capital society which has an impact on the world
Analytics Innovation Company ©BrainPad Inc. 22
Basic Policies of the Next Medium-term Management Plan
Business environment assumptions in the next medium-term management plan
Basic policies of the next medium-term management plan
We recognize that the market surrounding the data utilization related business (AI, data analytics, digital marketing, etc.) will continue to grow by more than 20% per year while enveloping peripheral areas. (*1)
Due to the anticipated market expansion and the expected entry from start-up companies and adjacent industries, the demand for talent and personal services to support data utilization will continue to increase going forward.
(*1) Reference documents: March 2019 Fuji Chimera Research Institute, Inc. “2019 Overall Survey of AI Business”; December 2018 MIC Research Institute Ltd. “Business Analytics Market Outlook 2019 Edition”; February 2019 “ITR Market View: E-mail/Web Marketing Market 2019,” “ITR Market View: SFA/Integrated Marketing Support Market 2019”
Expand the organizational scale including the hiring and training of diverse personnel to meet the demand to provide the personal services and solutions which are essential to data utilization*The diverse talent required by our company will be described later
1
Strengthen cooperation with domestic and foreign technology firms through business alliances and investment in addition to our own R&D to accelerate data utilization using advanced technology
2
Enhance the systems for providing and demonstrating the comprehensive strengths required for data utilization in order to increase the advanced and practical data utilization results which have an impact on business
3
Analytics Innovation Company ©BrainPad Inc. 23
Target Value of the Next Medium-term Management Plan
FY2019(Result)
FY2023(Target) Growth rate
Net sales
Ordinary income
Operating incometo sales ratio
ROE
Employees
5,676
1,213
21.4%4years average
(FY2016-FY2019)21.2%
306
11,500
2,000
17.4%4years average
(FY2020-FY2023)About 20%
580~650
CAGR 19.3%
CAGR 13.3%
ー
ー
ー
Million JPY
Analytics Innovation Company ©BrainPad Inc. 24
Current AnalyticsBusiness
Current SolutionBusiness
Business Strategy: Cultivate the Comprehensive Data Utilization Strengths Which Create an Impact
Consulting and human support
Anal
ytic
sD
igita
l*
Current Digital MarketingBusiness
Expand support for practical data and AI utilization associated with
systemization/structuralization through continuous organization expansion and
capability improvements
Lengthen and enlarge projects by enhancing our abilities to respond and
make proposals targeting company management
Enhance consulting services in the digital area
Identify and introduce highly unique overseas analytics tools to the Japanese market
Create solutions (or products) from previous analytics results
Provide integrated solutions in the digital area which capture the needs of customer companies
Deepen major products and take on the
challenge of launching new products
Product provisionBased on the shortage of data utilization talent in Japan, the demand will only increase. The trend to demand human support when introducing tools is growing even stronger. As the number of companies entering the market increases, we will consistently provide services which focus on quality.
As good products continue to be created one after another by global vendors and open source, we will take the stance of selecting and skillfully applying those products which are most suitable to the needs of our customer companies. (We will develop solutions which do not exist in the market)Ap
proa
ch
*Digital: Area centered on the reform and support of digital marketing, which used to be called web marketing, within the area called digital transformation (DX)
Analytics Innovation Company ©BrainPad Inc. 25
Current Analytics Services
Current System Integration
Talent Strategy: Expand the Diverse Professional Talent Which Supports Our Comprehensive Data Utilization Strengths
Consulting and human support
Anal
ytic
sD
igita
l
Current Digital Marketing Services
Data Scientists / Data Analysts /AI and Machine Learning Engineers /
Data Engineers /Analysis Training Specialists, etc.
Marketers/Sales Personnel /AI Business Producers /
IT Business Consultants /System Architects / SEs /
Cloud Engineers /Infrastructure Engineers, etc.
Digital Marketing Consultants /Customer Success, etc.
Product Researchers /Product Marketers /
Product Sales Personnel /Product Introduction Consultants /
Technical Support, etc.
Analysis Service Development Engineers /
Technology Researchers /R&D, etc.
Product Planning /Software Development
Engineers /UI Designers, etc.
Product provision
Appr
oach
Cor
pora
te S
taff
Based on the shortage of data utilization talent in Japan, the demand will only increase. The trend to demand human support when introducing tools is growing even stronger. As the number of companies entering the market increases, we will consistently provide services which focus on quality.
As good products continue to be created one after another by global vendors and open source, we will take the stance of selecting and skillfully applying those products which are most suitable to the needs of our customer companies. (We will develop solutions which do not exist in the market)
Analytics Innovation Company ©BrainPad Inc. 26
Capital Policy: Investment (Including M&A) and the Direction of Shareholder Returns
1 Investment approach (including M&A) Consider M&A for the purpose of acquiring talent that can accelerate the organic growth
of existing businesses Consider investment and M&A for the purpose of investigating and implementing
advanced technologies as contributions to medium- to long-term growth*In addition to external investments, also consider and carry out new product development and the practical application of advanced technologies internally within reasonable limits
Initially focus on research and examination with an eye toward establishing expert personnel to promote investment and M&A
2 Direction of shareholder returns We recognize that the effective utilization of capital for business growth, including the
investments described above, is the highest priority issue for improving the enterprise value as expected by all shareholders
However, in the event that the effective utilization of capital makes no progress, consider share buybacks, dividends, and other shareholder returns from the perspective of avoiding imprudent decreases in ROE
Analytics Innovation Company ©BrainPad Inc. 27
Earnings Forecast for the Next Term (First Fiscal Year of the Next Medium-term Management Plan)
The earnings forecast figures for the next term (fiscal year ending June 2020, the first fiscal year of the next medium-term management plan) are scheduled to be released together with the announcement of financial statements in August of this year.However, while sales growth is being maintained, profit growth is forecast to be limited for the following reasons.(While we are aiming for sales growth of over 10%, because there are possibilities that growth may not reach 20% and the
amount of profit may be at roughly the same level as the current term, we are currently investigating)
【Factors behind the slowing sales growth and the limited profit growth】
1Increase in resource allocation to recruiting and training
2 Reevaluation of the pay system and restructuring
3 Investment in the office environment
Due to the intensifying competition to acquire talent in the data utilization field, our company is behind in some areas in securing the necessary personnel during the current medium-term plan period.To make up for this delay, we are drafting a plan to increase the allocation of human and financial resources to recruiting and training.
The employee turnover rate is decreasing, but the pay system including the incentive plan needs to be reevaluated in terms of both retaining existing employees and improving hiring efficiency.Moreover, we will also start restructuring to better demonstrate our comprehensive strengths.
In anticipation of a headcount increase during the next medium-term plan, facility related costs including office floor space expansion are expected to increase.
APPENDIX
Analytics Innovation Company ©BrainPad Inc. 29
Our values: The best way to create valuable data
A variety of IT related vocabulary has nowadays become popular and commonplace.
“It is however necessary to utilize this vocabulary in order to obtain efficiency and innovation.”
• BrainPad is a leading company of data utilization. We have been engaged with Business Creation&
Management Improvement since our establishment in 2004.
• Business Creation& Management Improvement are driven by the use of data derived from Analytics
and Engineering.
Big DataMachine Learning
IoT/IoEInternet of ThingsInternet of Everything
AIArtificial Intelligence
Prediction・Optimization
Data Scientist Deep LearningData Analytics
Data Utilization FinTech
MA (MarketingAutomation)
Analytics Innovation Company ©BrainPad Inc. 30
3 competences BrainPad can add unique value
Since its founding in 2004, BrainPad have supported utilizing data
for more than 1,000 companies. By utilizing an abundance of accumulated
knowledge, we can solve management issues for a wide range of industries.
BrainPad employs more data scientists than the any other company in Japan -
100 in-house specialists in total. Our Data scientists specialize in various
disciplines, and technical expertise across all industries, with a wealth of
analytical experience. We organize teams according to our customer's needs at
the highest analytical level.
Through technical experience and cutting-edge technology, BrainPad boasts the
ability to effectively ”shape" systems and software. The high level of technologyand expertise has been effectively proven with the creation of our No. 1 product
"Rtoaster" in the digital marketing domain
Data utilization for more than 1,000+ companies
100+ Data scientists
No.1 product in DMP Area
Analytics Innovation Company ©BrainPad Inc. 31
Our USP & Cutting Edge Capabilities
Verification of
feasibility & ROI
by Trial Analysis
Development of
Platform & algorithm analysis
to solve business challenge
Application to
actual business operations
&
Monitor and support
operation improvements
for
lasting business success
Visualization of business challenges
Assessment & Concept design
Our services can be applied to whole stages where big data analysis is necessary for solving business challenges.
The stages include concept design through to actual operations.
Our services
Strategic consulting firm Related product vendors specialize indigital marketing and analysis
Major systems integrated company(Current condition: lack of Analysis specialists )
Major consulting firm (Strategy, organization. technology Outsourcing )(Current condition: pool of specialists analysis is small, and still accumulating knowledge of IT )
The other company’s
Business domain
Analytics Innovation Company ©BrainPad Inc. 32
Build the entire infrastructure
for data utilization
・Plan data utilization・Build analysis infrastructure・Operations support
Our Service①:Big Data Utilization ServiceBrainPad provides services that solve the following problems
by utilizing the knowledge of many professionals who specialize in managing big data.
Improve overall of PDCA
(in terms of marketing)
・Understand customer behavior ・Lead nurturing・Measure effectiveness・Optimization
Improve marketing and CRM based on
real time data
Optimize business processes
using analytics
・Sales・Manufacturing・Supply chain management ・New business
Develop human resource,
Build specialized structure
・A roadmap for autonomous data utilization
・Train human resources to be able to utilize data
・Develop specialized organization and structure
Reorganize and innovate businesses processes
through the use of AI and machine learning
Build platform for big data analysis
・Develop human resources to manage and utilize data professionally and accurately・Built Organization/ structure
Marketing Analytics
Specialists
(Consultant/advisor・Data Scientist)
Machine Learning
/Deep Learning,
IoT, AI Specialist
(Data Scientist・ Engineer)
Analysis Environment & Software Production Specialist
(Product consultant・System engineer)
Corporate Training & HR
Development Specialist
(Consultant/advisor・Instructor)
Specialists provide these services
Analytics Innovation Company ©BrainPad Inc. 33
Our Service②:Digital Marketing Service
High Value Products & Services
BrainPad provides expert digital marketing services.
These service includes; data analysis, system builds and implementation, and expert consultancy,
with the option of our Top-class digital marketing product:"Rtoaster" .
+ Analysis + System building +Consulting for implementation
Understand and develop customer requirements through analysis made conducted by our expert team (Data Scientists)
Build, modify and Repair systems to integrate with existing data, creating a more efficient system.
Implementation & operational support provided by our expert DM specialists.
AdNoteOperation supporting tool for Ads. The two features are auto reporting (20 report types) and a simulation for advertising budget allocation.
Ads operation Support
ProbanceMarketing automation for B2C market.
Web visitors preference prediction by machine learning, get highest ROI.
MarketingAutomation
ConomiAn algorithm find the most effective combination of an individual and a product from various combinations by utilizing collected and accumulated data source.
Recommend engine
Crimson HexagonAnalysis of worldwide customer engagement through social media.
Social listeningplatform
FUSE LIGHTAutomate internet Ads by utilizing AI. Without using human operation, internet Ads is delivered to customer.
Ads operationAutomation
RtoasterVarious marketing tactics are applied using DMP. Top-class product in the private DMP domain.
Private DMPrecommendation
Mynd plusNatural language processing engine.
Analyze context, abridge, etc.
Natural LanguageProcessing
AdPencilSubmission supporting tool for web advertising. An easy operation and automation by AI.
Ads operation Support
Analytics Innovation Company ©BrainPad Inc. 34
Our Product:Specialist of utilizing data
In-house developed product BrainPad is the exclusive reseller in Japan The others
UltiPadOptimization tool, satisfying large number of constraints working with predictive scores.
Optimizationengine
BrainRoboRPA (Robot Process Automation) software.Improve efficiency of enterprises’ business process.
Robot processautomation
ConomiAn algorithm find the most effective combination of an individual and a product from various combinations by utilizing collected and accumulated data source.
Recommend engine
Marketing
Visualization&
BusinessIntelligence
・Augmented
Analytics
Data mining &
Machine learning
Analytical Infrastructure
Optimization
RPAapplications
RtoasterVarious marketing tactics are applied using DMP. Top-class product in the private DMP domain.
Private DMPrecommendation
AdNoteOperation supporting tool for Ads. The two features are auto reporting (20 report types) and a simulation for advertising budget allocation..
Ads operation Support
FUSE LIGHTAutomate internet Ads by utilizing AI. Without using human operation, internet Ads is delivered to customer.
Ads operationAutomation
Mynd plusNatural language processing engine.Analyze context, abridge, etc.
Natural LanguageProcessing
ProbanceMarketing automation for B2C market. Web visitors preference prediction by machine learning, get highest ROI.
MarketingAutomation
Crimson Hexagon ForSight™ PlatformAnalysis of worldwide customer engagement through social media.
Social listeningplatform
exQuickWithout using SQL, marketer, business person can obtain necessary data intuitively.
Intuitivedata extraction
TableauInteractive data visualizations.
Visualization
SAP® PredictiveAnalyticsPredict target with score (%) , cluster, project demand by machine learning. Automate whole process.
Machinelearning
WPS AnalyticsAn Integrated Modular System perform statistical and graphing functionality, and makes it possible to run many applications written in the SAS language.
SAS-compatiblesystem
Cloudplatform
SAP HANA®In-memory database developed for high speed analysis of numerous data.
In-memorydatabase
SAP® IQHigh performance column based Database Software.
Big datadata warehouse
Microsoft AzureProvide necessary functions for utilization of Big Data on Cloud Platform.
AdPencilSubmission supporting tool for web advertising. An easy operation and automation by AI.
Ads operation Support
VizTactSupport business decisions with visual analytics enhanced by Machine Learning and Natural Language Processing.
Augmented Analytics
In-house product
Analytics Innovation Company ©BrainPad Inc. 35
420 625 8001,078 1,295 1,327 1,588
1,740 1,8871,054
9271,320 1,282
1,436 1,386 1,5651,928
2,5913,786
2,1351,347 1,9462,082
2,514 2,6802,893
3,516
4,332
5,673
3,189
33.1%
0%
20%
40%
60%
80%
100%
0
1,000
2,000
3,000
4,000
5,000
6,000
2011年
6月期
2012年
6月期
2013年
6月期
2014年
6月期
2015年
6月期
2016年
6月期
2017年
6月期
2018年
6月期
2019年
6月期
2020年
6月期2Q
百万円 単体売上高(ストック/フロー別)およびストック型売上高の比率
フロー型売上:開発売上、一括計上型のライセンス売上などストック型売上:月額サービス利用料、保守売上など売上高に占めるストック型売上高の比率
Stock-type / Flow-type-sales
FY2017
FY2018
FY2019
FY2015
FY2016
FY2013
FY2014
FY2011
FY2012
Stock-type / Flow-type salesMillion JPY
■Flow-type-sales■Stock-type-sales■Stock-type-sales rate of net sales
FY20202Q
Analytics Innovation Company ©BrainPad Inc. 36
458 660 734 723 818 818865 1,127
1,6002,397
290317
633 730885 915 899
1,209
1,407
1,826
158370
580 629838 980
1,135
1,192
1,325
1,454
72 130368 420
646906
1,347
1,946 2,0822,541 2,713
2,899
3,528
4,332
5,677
0
200
400
600
800
1,000
1,200
1,400
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2005年
6月期
2006年
6月期
2007年
6月期
2008年
6月期
2009年
6月期
2010年
6月期
2011年
6月期
2012年
6月期
2013年
6月期
2014年
6月期
2015年
6月期
2016年
6月期
2017年
6月期
2018年
6月期
2019年
6月期
経常利益(百万円)売上高(百万円)
連結売上高、連結経常利益の推移
マーケティングプラットフォーム事業売上高
ソリューション事業売上高
アナリティクス事業売上高
経常利益
History of Net Sales/Ordinary income
FY2017
FY2018
FY2019
FY2015
FY2016
FY2013
FY2014
FY2011
FY2012
Consolidated net sales / Ordinary income
Net Sales(Million JPY)
FY2010
FY2009
FY2008
FY2007
FY2006
FY2005
■Digital Marketing
■Solution
■Analytics
●Ordinary income
Ordinary income(Million JPY)
Analytics Innovation Company ©BrainPad Inc. 37
This material is unpublished document protected by Copyright Law of Japan and each country.This material contains confidential information.The contents of this material all information here in may not be disclosed to any third party.Except for evaluation purposes, copying or publishing any or part of information herein is strictly prohibited.Using or disclosing any or part of information from Brainpad inc. without prior written authorization is strictly prohibited.
BrainPad Inc.Shirokanedai Bldg.3-2-10 Shirokanedai Minato-ku,Tokyo 108-0071, Japan+81-3-6721-7001www.brainpad.co.jp [email protected]
Analyt ics Innovat ion Company
スライド番号 1IntroductionCorporate OverviewOur business fields to create valuable dataAnalytics BusinessSolution BusinessDigital Marketing BusinessOur Clients & PortfoliosConsolidated financial highlights�for the second quarter�of the fiscal year ending June 2020Consolidated net salesConsolidated operating incomeConsolidated ordinary income / profitUnconsolidated financial highlights�for the second quarter�of the fiscal year ending June 2020The number of employeesAnalytics Business(1)Analytics Business(2)Solution Business(1)Solution Business(2)Digital Marketing Business(1)Digital Marketing Business(2)The Medium-term�Management Plan(FY2020~FY2023)BrainPad’s Mission and Medium-term Corporate VisionBasic Policies of the Next Medium-term Management PlanTarget Value of the Next Medium-term Management PlanBusiness Strategy: Cultivate the Comprehensive Data Utilization Strengths Which Create an ImpactTalent Strategy: Expand the Diverse Professional Talent Which Supports Our Comprehensive Data Utilization StrengthsCapital Policy: Investment (Including M&A) and �the Direction of Shareholder ReturnsEarnings Forecast for the Next Term (First Fiscal Year of the Next Medium-term Management Plan)スライド番号 29Our values: The best way to create valuable data3 competences BrainPad can add unique valueOur USP & Cutting Edge CapabilitiesOur Service①:Big Data Utilization ServiceOur Service②:Digital Marketing ServiceOur Product:Specialist of utilizing dataStock-type / Flow-type-salesHistory of Net Sales/Ordinary incomeスライド番号 38