Q1 FY2021 Financial Update - RPA Holdings (TSE:6572)
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Q1 FY2021 Financial Update RPA Holdings (TSE:6572)
目次 01 Q1 Financial Overview P.2 02 Growth Strategy P.15 03 Appendix P.28
01 Q1 Financial Overview
Financial Highlights ①
Sales increased but profits decreased as a result of revenue having increased by 46% YoY
driven by the Robot Transformation Segment, and the recording of JPY89MM in upfront
investment for launching RaaS business
The Company made steady progress against its earnings forecasts for FY2021/2
Robot Outsourcing Segment
◼ Although business involving robotic process automation (RPA) accounts of major companies has run its
course, there was growth in the number of companies adopting both BizRobo! Basic and BizRobo! mini
◼ Meanwhile, recurring revenue leveled off given that some companies are currently limiting their use of our
services to certain business tasks, and also given that there have been downgrades to the BizRobo! mini from
the BizRobo! Basic, partial cancellations by companies that have introduced BizRobo! Basic and BizRobo! mini
via partner companies, and cancellation of some of OEM/Resale products
◼ Sales and profits decreased due to the decline in the number of orders received for outsourced projects
caused by the impact of COVID-19
Robot Transformation Segment
◼ Net sales increased by 84% YoY as a result of sales having grown substantially in the financial and
communication categories due to the impact of COVID-19, and segment operating profit also increased
accompanying the sales growth
RaaS Segment
◼ Continue to undertake upfront investment particularly for business development centered on “RoboRobo”
◼ Released “RoboRobo Compliance Check” service, “RoboRobo Credit Check Service,” and other services relating
to personnel and recruitment
3
Financial Highlights ②
◼ Revenue increased by 46% YoY driven by Robot Transformation Segment
◼ Significant decrease in operating profit due to recording of upfront investment of JPY89MM for launching
RaaS business
Revenue Operating Profit
Robot Outsourcing Segment
Robot Transformation Segment 3,102
Others
JPY MM YoY JPY MM
+46%
2,123
2,258
YoY
1,226 -30%
169
118
832 775
1.6億円 1億円
Q1 FY2020/2 Q1 FY2021/2 Q1 FY2020/2 Q1 FY2021/2
4
Financial Highlights ③ (Operating Profit)
JPY MM
Robot Transformation
Segment
33 Robot Outsourcing
Segment
-19 RaaS
Segment
-85
Adjustment
169 19
118
3.2億円
Q1 FY2020/2 Q1 FY2021/2
Operating Profit Operating Profit
5
Financial Highlights ④ (Impact of COVID-19)
Q1 From Q2
✓ Encountered a slowdown in the number ✓ Although the number of enterprise accounts
of enterprise accounts adding new adding new licenses is likely to improve after
licenses due to stagnating economic the declaration of a state of emergency was
activity and lengthening of lead time for rescinded, COVID-19 may continue to cause
Robot Outsourcing delays and decreases in new orders if it
business negotiations.
Segment continues for a prolonged period.
✓ The number of orders received for
✓ We anticipate ongoing decreases in the
consulting, engineering and other
number of orders received for consulting,
outsourced projects declined. engineering and other outsourced projects
as a result of our client companies having
reduced their outsourcing expenditure.
✓ The human resources category ✓ Business is likely to remain strong
generated negative results due to a despite subsiding extraordinary demand
slowdown in recruiting. in the financial and communication
Robot ✓ Sales increased substantially in the categories.
Transformation financial category due to a greater ✓ We hold to our cautious outlook in the
number of brokerage account openings, human resources category.
Segment and also in the communication category ✓ COVID-19 is unlikely to substantially
due to widespread use of remote work affect other categories of business.
arrangements. Sales will continue to increase steadily.
✓ Undertook upfront investment centered ✓ We will persist with ongoing upfront
on “RoboRobo,” with the segment investment centered on “RoboRobo.”
having been in a phase of business ✓ This business model, where sales and
RaaS Segment development and not particularly support can be performed online, will
affected by COVID-19. not be particularly affected.
6
Financial Highlights ⑤ (Impact of COVID-19)
As urgent actions in response to COVID-19 created opportunities for
corporate reform, the pace of digital transformation (DX) has accelerated
Prime opportunities for business expansion
①Make progress on utilizing RPA aimed at automation of existing
systems and remote work
The needs for all companies, regardless of the size, to interconnect personnel, systems and work, such as
on-premises, legacy systems, SaaS, paper business forms, etc., are progressing and accelerating
②Make progress on utilizing RPA and AI as DX tools due to the rapid
adoption of DX
Use BizRobo! designed by on-site operation and enhanced by linking with AI
③Accelerated adoption of BPO for non-core and non-competing work
areas
The process for adoption of BPO with a clear ROI aimed at reducing costs has become established.
Needs for the “RoboRobo” robot BPO and “Jimu Robo” BPO that uses RPA
7
Financial Highlights ⑥ (Impact of COVID-19)
Even after COVID-19 is brought under control, we will continue the
evaluations and remuneration system based on results, and remote work.
✓ Remote work based on an environment where duties can be executed while maintaining the balance between high
productivity and high security in front office duties to back office duties by utilizing BizRobo!, which is one of the
Company’s core products, as well as a variety of technologies and IT tools.
✓ “Create a new business with wisdom and technology, and progress to an enjoyable era where personalities shine” has
been set forth as the Group’s mission. The Group provides working styles where all employees can take ownership
and independently make decisions and take action, and has adopted a fair evaluation system based on results.
✓ Develop human resources and make long-term investments in new businesses in anticipation of society that has
progressed after COVID-19 is brought under control.
8Segment Financials: Robot Outsourcing Segment
Robot Outsourcing Segment Highlight ①
◼ Accumulated number of enterprise accounts introduce BizRobo!Basic
1,302
◼ Accumulated number of enterprise accounts introduce BizRobo!mini
1,170 522
1,009
416
853
293
738
179
644 104
44 780
518
440 754
716
370
674
634
600
2018/5 2018/8 2018/11 2019/2 2019/5 2019/8 2019/11 2020/2 2020/5
10Robot Outsourcing Segment Highlight ②
◼ Although business involving RPA accounts of major companies has run its course,
there was growth in the number of companies adopting both BizRobo! Basic and BizRobo! mini
◼ Meanwhile, recurring revenue leveled off given that some companies are currently limiting their use of our services to certain
business tasks, and also given that there have been downgrades to the BizRobo! mini from the BizRobo! Basic, partial
cancellations by companies that have introduced BizRobo! Basic and BizRobo! mini via partner companies, and cancellation of
some of OEM/Resale products
◼ Sales and profits decreased due to a decline in the number of orders received for engineering, consulting and other outsourced
projects as a result of our client companies having reduced their outsourcing expenditure due to COVID-19
Revenue Segment Operating Profit
JPY MM JPY MM
YoY
832 -6%
775
YoY
-1%
Recurring Recurring YoY
Revenue Revenue -21%
531 526 92
72
Q1 FY2020/2 Q1 FY2021/2 Q1 FY2020/2 Q1 FY2021/2 11Segment Financials: Robot Transformation Segment
Robot Transformation Segment Highlight ①
◼ Net sales increased by 84% YoY as a result of sales having grown substantially due to extraordinary demand in the
financial and communication categories, and segment operating profit also increased accompanying the sales growth
◼ Sales increased steadily in other categories of business
Revenue Segment Operating Profit
JPY MM JPY MM
2,258
YoY
+84%
1,226
YoY 227
+17%
193
Q1 FY2020/2 Q1 FY2021/2 Q1 FY2020/2 Q1 FY2021/2
13Robot Transformation Segment Highlight ②
◼ Almost 90% of our customers keep using our services
Revenue
JPY MM
000 96% 96% 95% 96% 97% 97% 100%
92% 91% 91% 91% 2,217
42 90%
000
1,837 80%
1,667 1,694
238 70%
284
000 239 60%
1,324 2,217
1,267
50%
1,048 1,054 120
000 934 455 1,635 40%
202 197 1,410
87 1,428
30%
555 1,147
000 61 869 857 20%
847 846
494 10%
0 0%
Q4 FY2018/2 Q1 FY2019/2 Q2 FY2019/2 Q3 FY2019/2 Q4 FY2019/2 Q1 FY2020/2 Q2 FY2020/2 Q3 FY2020/2 Q4 FY2020/2 Q1 FY2021/2
売上高（アフィリエイト関連） その他 継続率（アフィリエイト関連）
Note:
1. Retention Rate is % of customers who continuously using our services when their advertisements are newly clicked in the new quarter 1402 Growth Strategy
Robot Outsourcing Segment Gaining momentum by RPA/AI expansion
Untapped RPA Market Opportunity in Japan
Lack of engineers Dissatisfaction with Most of IT investments by Japan
in end user side incumbent IT system enterprises are for maintenance
Breakdown of type of engineers Do you agree that incumbent IT system slow Allocation of IT investments by
in Japan and U.S. down the pace of digital transformation? Japan enterprises (2016)
disagree
Agree New investment
End user side 2.8%
65%
17.2% 21.2%
Almost disagree
30.0%
End User side Vendor side
28% 35%
Vendor side 72%
Almost agree Maintenance
# of engineers: # of engineers: 50.0% 78.8%
1.05MM 4.2MM
Source：METI ”DX report” (2018) Source：METI ”DX report” (2018) Source：METI ”DX report” (2018)
Easy-to-install software architectures and cost effective
features are required in Japan RPA market
17BizRobo! Uniquely Positioned in Japan RPA Market
Designed by
on-site operation
✔ No need of coding
Product X BizRobo!
Scalable
✔ Scalable architecture for
RDA(1)
continuous improvements
Product Y Product Z ✔ Low cost
Designed by IT system
division/management
Note:
1.Robotic Desktop Automation
18Clear Strategic Vectors to Scale Robot Outsourcing
a b c
Further Strengthen Promote
カスタマーサクセスの
Further Use Upsell in
Partnership Nurturing 更なる強化による
of Robots Existing Customers
ロボット活用の定着、拡大
19Robot Transformation Segment Redefining old-fashioned industry
Huge TAM Driven by AI
◼ AI-related market size in Japan is expected to reach JPY86Tn by 2030
JPY86Tn in 2030
Japan AI-related market forecasts
JPY23Tn in 2020
JPY3.7Tn in 2015
Source: EY Institute (2015) 21Competitive Advantages
Low Cost Technology Know-how
Significant cost advantage Highly advanced technology and Extensive know-how based on
achieved through the utilization in-house engineering capability 10+years experiences in RPA field
of third-party resources backed by robot outsourcing
including RPA licenses and business expertise
engineering network
22Robot Transformation Case Study
◼ Online affiliate marketing market is huge (JPY940bn), but there is still room to optimize
◼ RPA enabled robot coordinator streamlines incumbent agency structure
Incumbent Online Ad Agency
Agency
Purchase ad spot Purchase ad spot
Robot Client Purchase ad spot Purchase ad spot
Media
Transformation
Robot Robot coordinator is able to optimize the
Coordinator operation of incumbent agency
23RaaS Segment Further market opportunities
Our Growth Strategy
◼ Achieve further growth through a full-scale introduction of RaaS (Robot as a Service), in addition to
addressing expanding market opportunities in RPA as well as Robot Transformation
1 2
Robot Robot
Outsourcing Transformation
Redefine
Provide
old-fashioned industry
RPA tools
by using robot
3
RaaS
(Robot as a Service)
Provide
services through
multi-purpose robot
25Positioning of RaaS (Robot as a Service) Segment
◼ Expand business by leveraging the know-how accumulated through building on RPA platform
1-click RPA: RoboRobo
RaaS RaaS
2019 ～
BPO enabled by RPA：Jimu Robo
BizRobo! RPA platform: BizRobo!
2008 ～
26Overview of RaaS Segment
◼ Provide services that are easy to introduce to corporate clients across various industries, utilizing multi-
purpose and templated robots
✓ Started development of RPA services for collaboration with Raku Raku Seisan, the
expense settlement system. Launched “RoboRobo Rakurakuseisan RPA Pack” robot
RoboRobo ✓
services on Rakuraku Seisan
Launched RoboRobo Compliance Check, a compliance check automation service.
1-click RPA Concluded a distributor agreement with Nikkeisha, Inc. of the Nikkei group.
✓ Launched the “RoboRobo Credit Check Service”
✓ Launched the “jinjer RPA powered by RoboRobo” service which is operated jointly with
the “jinjer” SaaS platform service for human resources
✓ Released Jimu Robo (β version)
Jimu Robo ✓ Launched robot services applicable to freee’s cloud-based accounting/payroll software
✓ Launched robot services for processing receipts and invoices
BPO enabled by RPA
✓ Supported work for submitting the “Ehime Prefecture Novel Coronavirus Disease
(COVID-19) Prevention Cooperation Money Application”
【Medical】
Common ✓ Introduced BizRobo! at Tokyo Dental College Ichikawa General Hospital
✓ Jointly researched with The Jikei University School of Medicine
Specialized services on ✓ Started operation of BizRobo! at Daido Hospital, Kojunkai Social Medical Corporation
common works specific to ✓ Shiga University of Medical Science Hospital launched a pilot program for BizRobo! by
respective industries department
【Real Estate】
✓ Established Re-Tech RaaS Inc., a provider of RPA/AI services for the real estate sector
2703 Appendix
Consolidated P/L
JPY MM
Q1 FY2020/2 Q1 FY2021/2 YoY
Total Revenue 2,123 3,102 +46.1%
Robot Outsourcing Segment 832 775 -6.8%
Robot Transformation Segment 1,226 2,258 +84.2%
RaaS Segment 12 5 -51.9%
Other 52 62 +19.0%
Operating Profit 169 118 -30.3%
OP Margin 8.0% 3.8% -
Net Income 51 28 -44.3%
NI Margin 2.4% 0.9% -
29Segment Financials (Q1 FY2021/2)
JPY MM
Robot Robot
Adjust- Consoli-
Outsourcing Transformation RaaS Total Other
ment dated
Segment Segment
Revenue 777 2,260 22 3,060 70 △28 3,102
Revenue from external customers 775 2,258 5 3,040 62 - 3,102
Adjustments 2 1 16 20 7 △28 -
Operating Profit 72 227 △89 210 △0 △91 118
OP Margin 9.3% 10.1% 6.9% 3.8%
30Consolidated B/S
JPY MM
FY2020/2 Q1 FY2021/2 Difference
Current assets 14,323 14,602 278
Cash & cash equivalents 12,394 12,644 250
Non-current assets 3,704 3,786 82
Total assets 18,028 18,389 361
Current liabilities 3,099 3,589 490
Non-current liabilities 1,822 1,664 △158
Total liabilities 4,921 5,253 332
Total debt 3,259 3,098 △161
Common stock 5,881 5,881 -
Capital surplus 6,017 6,017 -
Retained earnings 1,201 1,230 28
Total equity 13,106 13,135 28
31Company Overview
Vision
・Create a New Society Where People Co-work with Robot
・Redefine Old Industries Enabled by Robot Transformation
AI/Robot
Transformation
FY2018
Mobile
Transformation
FY2008
Internet
Transformation
Before Internet Long Journey to Digitalization
FY1998
33Company Overview Mission
Create a New Business with Technology & Wisdom
Company RPA Holdings, Inc.
name
Foundation April 2000
Business
Creation
Common JPY 5,881,796,555 (As of February 29, 2020) ×
stock Technology
Location Toranomon Hills Mori Tower 8F
1-23-1 Toranomon, Minato-ku, Tokyo
Board of Representative Tomomichi Takahashi Business
directors Director Creation
Director Nobuyuki Osumi
Director Satoshi Matsui Business
Director Takashi Nishiki
Consulting
Director* Yoshihiko Masuda
Director* Toshihiro Hanyu
Director* Eiichi Nagai
Director* Hideaki Takahashi
Business
Creation
* Audit and supervisory committee member
34Business Overview
RPA-centric Business Portfolio
• Provide an RPA solution “BizRobo!” to various industries
Robot
Outsourcing
• Envision to redefine old-fashioned industries by applying RPA
solutions
Robot
• Operate “PRESCO”, an online advertising/affiliate business
Transformation
utilizing in-house RPA technologies
• Sales outsourcing Others
RaaS • Provide services through multi-purpose robot
35Robot Outsourcing Segment Overview
◼ Provide RPA solutions to various enterprises through direct sales and sales partnerships
RPA Holdings End Users
RPA Solution
Direct Sales
License fee
Through Sales
Lease “Digital Labor” RPA Solution Partners RPA Solution
License fee License fee
(Revenue share)
36Robot Transformation Segment Overview ①
◼ Apply RPA solutions to redefine old-fashioned industries
◼ Changed the segment name from “Advertising Network” to “Robot Transformation”
Old-fashioned Industries Redefining Old-fashioned Industry Enabled by RPA/AI
End User End User
Agency Robot Coordination
✔ On-demand & real time delivery
✔ Easy to manage & customize
✔ Efficient coordination
Coordination by RPA×AI
Coordination by ✔ Transparent & low price
an agency
Service
Provider / Service Provider / Media
Media
37Robot Transformation Segment Overview ②
Solid expertise as a leading RPA solution provider in Japan
RPA know-how Cognitive know-how AI know-how
BizRobo! Scanning Robot AI Robot
⚫ Free
✔ up office workers from ⚫ Automatically
✔ scan ⚫ Enable
✔ to coordinate the
manual & repetitive tasks and unstructured data such as most efficient option in
allow them to focus on value- handwritings real-time
added works
38Robot Transformation Segment Overview ③
◼ Offer online affiliate marketing services as the first application of Robot Transformation
For online advertising players,
01
PRESCO Robo enhances the
One-stop Solution PRESCO Robo efficiency of data collection
Provide one-stop solutions related to and reporting tasks
affiliate marketing services
02 Diversified & Strong Ecosystem
Build media platform leveraging strong network
Ex. Get search results Ex. Examine Ex. Create outputs
of online advertising/affiliate players and
search trends
influencers
39Disclaimer
This material includes forward-looking statements. These forward-looking statements were
created based on the information available at the time they were created. They do not
guarantee our future results and involve certain risks and uncertainties. Please note that actual
results may differ materially from those discussed in the forward-looking statements due to
changes in environments surrounding RPA Holdings or any other factors.
The factors which may affect actual results include but not limited to: Japanese and global
economic conditions, conditions of markets in which RPA Holdings operates.
RPA Holdings is not obligated to update or revise any contents of the forward-looking
statements within this material, even in cases such as where new information becomes
available or future events take place.
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