ランサーズ（4484） – [Delayed]Financial Results for the Fiscal Year Ending March 31, 2022

Financial Results for the Fiscal Year Ending March 31, 2022( Matters related to business plans and growth potential )LANCERS,INC.（TSE Growth: 4484）© LANCERS, Inc. All Rights Reserved© LANCERS, Inc. All Rights ReservedMay 13, 2022HighlightsFull year results for FY ending March 31, 202218% YoY.• The earnings forecast was generally in line with expectations with GMV96.5%, Net sales 104.4%, Gross profit 96.4%•Implemented investments that contributed to long-term business growth and built a foundation for a significant increase in the growth rate forecast for FY03/2023 and a return to profitability.• Meanwhile, the recovery of investment in the marketplace business is falling behind, and the effect during the period is limited, with GMV up •Impairment loss was recorded for the managed services business due to a change in policy from partial to complete withdrawal from the business considering its growth potential and profitability.Management policy for FY endingMarch 31, 2023• Marketplace business continues its growth policy. Expect a further increase in gross profit to +28% YoY with continued investment.• Decided to acquire WSL** and enter the upstream process (consulting area) in order to increase the added value of our entire group.• The 3-year management policy of “achieving high growth and profitability and returning to profitability from the next fiscal year” remains unchanged. On the other hand, some changes were made due to business withdrawal, etc.Forecast of full-year results for FY ending March 31, 2023• Growth is expected to accelerate despite withdrawal from some businesses, with total company-wide GMV of 12.6 billion JPY (+23% YoY) and gross profit of 2.4 billion JPY (+24% YoY).• Gross profit from marketplace business +28% YoY Gross profit from agent business expected to be +158% YoY• Operating loss improves despite continued investment , expects to return to profitability in Q4•In the fiscal year ending March 2024 (next fiscal year), the company expects to return to profitability for the full year and move into a phase of continuous profit growth.*) The name has been changed from “Tech Agent Business” to “Agent Business” to reflect the expansion of job types in the consulting field.**) WSL Company indicates Work Style Labs, Inc.© LANCERS, Inc. All Rights Reserved11Company Profile© LANCERS, Inc. All Rights ReservedCompany profileEmpowerment of Individuals10x your business with LancersBe your own boss with LancersCompany nameLANCERS, INC.Business contentsPlatform businessFounder and CEOYosuke AkiyoshiEstablishmentApril, 2008StaffApprox. 200 employees**) Employees include full-time employees (excluding those who are seconded to outside the Group, but including those seconded to the company within the Group) and temporary workers(part-time workers).© LANCERS, Inc. All Rights Reserved3Changes in Lancers’ Gross Merchandise ValueContinuous growth since foundation.Surpassed 10 billion JPY in FY2021, aiming for 12.6 billion JPY in FY2022.(Unit: 100 million JPY)120100806040200FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022Forecast© LANCERS, Inc. All Rights Reserved4Service Overview: Business ModelsWe operate an ordering platform that matches individuals and companies, which is completed online, and provide excellent human resources to companies and new work styles to individuals regardless of time and where they live.Companies placing ordersMatchingIndividuals with skillsInspection/EvaluationProposal/DeliveryClients (companies)Freelancers(individuals)Requests/Orders/PaymentsOrders received /Rewards© LANCERS, Inc. All Rights Reserved5Service Overview : Types of JobsDeveloping a number of positions that contribute to DX promotion and productivity improvement, with a focus on engineersFocus on positions that support corporate DX operationsWEB productionPhotos/videos/narrationOffice work/professionalEngineersSystem development/operationWeb system development/programming￥3,500-￥7,000/h *iPhone・iPad app development￥300,000-￥2,000,000 *Homepage creation￥50,000-￥400,000/1-10 pages *EC site construction and operation￥500,000 /renovation of in-house EC siteMarketersDigital marketingDesignersDesigningLogo designs￥20,000-￥85,000/piece *Business card production￥10,000-￥50,000 *Video creation/production/video material￥50,000-￥500,000/piece*Image processing/photo editing/image material￥100-￥5,000/piece *SalesSales/telemarketingListing advertisement operationAdvertising fees + approx.20% ofadvertising feesSales/telemarketing￥ 2,000 -￥3,500/hBack officeConsultationBusiness/strategy consulting￥150,000-￥300,000 *Web/IT consultation￥100,000-￥200,000 *PowerPoint creation￥30,000-￥100,000 (10pages)Excel editing￥20,000-￥30,000 *WritersArticle writingArticle writing/blog articles/experiences￥0.5-￥5/letter **)The offer price is the requestprice of the content of typical work, and the detailed request price is as followshttps://www.lancers.jp/help/beginner/lancer/examples© LANCERS, Inc. All Rights Reserved6Service Features : Providing value to companies from DX implementation to operationMatching of human resources who can support areas from implementation to operation of DX, focusing on small to medium-sized businesses (SMB).Strategy formulationDX introduction andBuild a systemDX Operation andmaintenanceStrategic consultationIT consultationA g e n c yLarge CompaniesSMBGeneralserviceprovidersConsultationQuick and OnlinematchingAbundant human resourcesEngineersDesignersMarketersApprox.140thousands peopleApprox.140thousands peopleApprox.20thousands people© LANCERS, Inc. All Rights Reserved7Service Features : Promoting New Ways to Work in JapanFreelancers in each domestic region receive orders for a project from a client based in Tokyo to disperse demand concentrated in Tokyo. By working online and accelerating side businesses, the use of local clients and the use of freelancers in Tokyo are increased.Local freelancers%*76Approx.Clients based in TokyoApprox.%**59*) GMV of Landers alone, the ratio of GMV of Lancers whose place of residence is other than Tokyo (January to March 2022).**) GMV of Lancers alone, the ratio of GMV of clients who are based in Tokyo (January to March 2022).© LANCERS, Inc. All Rights Reserved8Lancers’ Strengths ：Platform for distribution of high value-added workEstablishing a platform for the distribution of high value-added work by guaranteeing reliability.ClientsFurther creation of high value-added and high unit price workFreelancers1Technology to visualize reliability2Our unique matching algorithmA platform to secure reliability3Ecosystem to increase and retainreliable freelancersProvision of high quality outputIncrease in unit price per clientImprovement ofcontinuationrateOpportunities for high value-added workIncrease in reliable freelancersIncrease in per capita renumeration2022年3月期 通期決算説明資料（東証グロース：4484） © LANCERS, Inc. All Rights Reserved9Lancers’ Strengths : A Highly Rewarding PlatformCompared to other companies, the number of orders received per active lancer is approx. 2.5 times higher. The number of reliable freelancers* has increased to 20,000, accounting for approx. 20% of all active lancers, and supports the Group’s platform.*) Reliable freelancers = certified freelancer + silver rank freelancer + bronze rank freelancer.Comparison of order amount (GMV) per person*Changes in the number of reliable freelancers*Approx.2.5times(Unit: 100 people)YoY＋22％211 219 226199186167143 149131110 11897the other companyLancers*)Comparison of order amount received per freelancer who received remuneration from April 2020 to March 2021.1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q2020/32021/32022/3*) It indicates the number of reliable freelancers at the end of each quarter.© LANCERS, Inc. All Rights Reserved102Results of the Fiscal Year Ending March 31, 2022© LANCERS, Inc. All Rights ReservedPerformance SummaryResults were mostly in line with forecasts. Due to the withdrawal of a portion of Managed Services business (contracted services), companywide YoY growth was +11% in GMV and +4% in gross profit.Company-wide (Full-year)Trends in GMV by segment*Gross Merchandise Value10,318million JPYYear-on-year+11％% Achievement 97％NetSalesGross profit4,073million JPY2,003million JPYOperating income△367million JPYYear-on-year+5％% Achievement 104％Year-on-year% Achievement 96％+4％Previous+36million JPY（Unit: Million JPY）Marketplace BusinessManaged Service BusinessTech Agent BusinessOthers2,593 2,495 2,557 2,575 5825756216594213183492842,690 7073162,414 5493752,201 2,222 2,063 617413587280546341Full-yearYoY+18％1,170 1,176 1,308 1,472 1,558 1,601 1,586 1,630 1,666 4Q2020/31Q2Q3Q4Q1Q2Q2022/33Q4Q*)It indicates the business divisions of our group based on management accounting standards.© LANCERS, Inc. All Rights Reserved12Financial Results for Fiscal Year Ending March 31, 2022 (Consolidated)The managed service business changed its policy from partial business withdrawal to complete withdrawal considering growth and profitability. As a result, a net loss of -670 million JPY was recorded due to an impairment loss of 220 million JPY.FY endingMarch 31, 2022 (Full-year)FY endingMarch 31, 2021（Previous Full year）FY endingMarch 31, 2022 （Forecast）(Unit: Million JPY)ActualActual% changeForecast% Achievement Gross Merchandise Value*10,3189,294+11.0%10,69196.5%Net salesGross profitSelling,general and administrative expenses(SG&A )Operating income /lossOrdinary income /lossNet income /loss4,0732,003△367△358△6723,8681,925+5.3%+4.0%3,902104.4%2,07896.4%2,3701,889+25.5%2,44896.8%364837—△370△363△452—*)It is based on in-house management materials and is not an audited number.© LANCERS, Inc. All Rights Reserved13Balance Sheet for Fiscal Year Ending March 31, 2022 (Consolidated)The company has secured a bank borrowing facility* of approximately 1.2 billion JPY. Although in the investment phase, the equity ratio is at about 42%.Fixed assets decreased due in part to impairment losses resulting from the complete withdrawal from Managed services business.(Unit: Million JPY)）Current assetsCash and deposits*Non-current assetsGoodwillTotal assetsCurrent liabilitiesCustomer depositsNon-current liabilitiesNet assetsTotal liabilities/net assetsFY endingMarch 31, 2022FY endingMarch 31, 2021（Previous）ActualActualchange2,3601,6004791702,8401,65183811,1882,8402,8452,0375874273,4331,59280041,8373,433△485△437△107△256△592+58+38△3△648△592*) Cash reserves of 762 million JPY at the end of March2022 = cash and deposits of 1,600 million JPY – interest-bearing debt of 0 – deposits received of 838 million JPY. Total uncommitted bank overdraft facilities of 710 million JPY at the end of March 2022.© LANCERS, Inc. All Rights Reserved14Summary by Segment*The Marketplace business grew +18% YoY as investment recovery was pushed back.In contrast, the Tech agent business saw market expansion accelerate due to the resumption of the economy, growing at an upward pace through the second half of the year.*)It indicates the business divisions of our group based on management accounting standards.Status by segment （Full-year）Business policiesfor FY ending March 31, 2022ConcentratedinvestmentsMarketplace businessGross Merchandise ValueYear-on-year• Enhanced products and released multiple functions and services6,484百万円+18％• Strengthened marketing in the 2nd half of the year, using products as a hook• Investment effects were pushed back and deviated from the initially expected growth rateRe-growthTech agent businessGross Merchandise Value2,564百万円Year-on-year+13％• With the resumption of the economy, the need for IT personnel hasreturned and the market is expanding• Achieved record high number of new contracts and GMV in 4Q• Growth rate also recovered to pre-pandemic growth rate, acceleratingfurtherWithdrawal of somebusinesses (contract)Managed service businessGross Merchandise ValueYear-on-year1,269百万円△11％complete withdrawal•Withdrawal of flat-rate services considering growth rate and profitability•As a result, the business went from partial business withdrawal to © LANCERS, Inc. All Rights Reserved15Review of Marketplace BusinessBecause many measures required time for investment recovery, such as product and new service investments, the effects of these measures was not reflected in 2022/3. However, it will contribute to higher growth rates in 2023/3 and beyond.•••••Investment ResultsInvestment in products154million JPYApprox. 20 engineers employedLancers “packaging system” and other functional additions, and improvements are on trackProfit and Loss Structure ofMarketplace Business(Unit: Million JPY)Investment in marketing152million JPYStrengthen customer success from the 2nd half of the yearStrengthen marketing, including SEO1,206 Investment in new services243million JPYInvestments aimed atstrengthening medium-to long-term growth, including investments in “Teams” and “MENTA”※The results of investment by category are as follows: personnel expenses 186 million JPY, outsourcing expenses 180 million JPY, advertising expenses 118 million JPY, and other expenses 63 million JPY. The total amount remains unchanged, although there is a slight change in the number of items due to the recalculation of investment categories.487Operating profit ratio57.5％550719 Further increase in operating income expected depending on investment selection and reviewOperating profit ratio13.6％169 0Gross profitSG&A fees売上総利益 販管費(excluding(投資除く)Investments)Operating income営業利益(excludingInvestments)(投資除く)OperatingInvestment投資費用 営業利益incomefees© LANCERS, Inc. All Rights Reserved16Review of Tech Agent BusinessWith the resumption of economic activity by clients, demand for IT personnel returned and the market continued to expand. The number of new contracts reached a record high in 4Q and recovered to the pre- pandemic growth rate of +21% YoY.Changes in GMV of tech agent businessChanges in the number of new contractsDemand is growing as clients resume economic activity+21％1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q2020/32021/32022/3© LANCERS, Inc. All Rights Reserved173Forecast for the Fiscal Year Ending March 31, 2023© LANCERS, Inc. All Rights ReservedPolicy for FY Ending March 31, 2023 (This Fiscal Year)Focus on the Marketplace and Agent businesses* to raise the growth angle a notch. Completely withdraw from the managed services business and improve profitability of the entire company, returning to profitability from 4Q onward.Policy for FY ending March 31, 2023 (this fiscal year)Marketplace businessAgent business*Managed service businessAccelerate growthRegrowComplete withdrawalExpansion of distribution by new clients.Take rate improvement through value additionAcceleration of growth throughorganizational expansion.Entering a new area of occupationService closureand partial transferEntire groupImprove profitability to achieve constant profitability from the next fiscal year onward.*) The name has been changed from “Tech Agent Business” to “Agent Business” to reflect the expansion of job types in the consulting field.© LANCERS, Inc. All Rights Reserved19Partial Changes to the 3-year Management Policy in Response to This Fiscal Year’s PolicyAiming for high growth and high profitability, our policy for returning to profitability and expanding profits from the next fiscal year remains unchanged. Meanwhile, based on the decision to postpone investment recovery in 2022/3, and to withdraw completely from some businesses, a part of the 3-year management policy has been changed.Concentrate investment in the marketplace business.Aiming for a 40% growth rate in GMV in 3 years.Accelerate growth in the marketplace and agent businessesTotal company-wide GMV CAGR +30% in 3 years to over 20 billion JPY. Gross profit to expand to 4 billion JPY scale.Company-wide gross profit to 3-3.5 billion JPYEstablishing a platform for high growth and high profitability. Return to profitability within three years and enter the profit expansion phase while continuing to invest.© LANCERS, Inc. All Rights Reserved2012No change3Partiallychanged12PartiallychangedChanges in Company-wide Gross Merchandise Value and Gross ProfitAiming for +23% YoY GMV and +24% YoY gross profitChanges in company-wide GMVChanges in company-wide gross profit(Unit: Million JPY)Withdrawn business,etc.*Agent businessMarketplace business10,318 2,564 9,294 2,267 5,516 6,484 8,114 2,084 4,589 12,642 4,671 7,970 Forecast YoY+23％(Unit: Million JPY)Withdrawn business,etc.*Agent businessMarketplace businessForecast YoY+24％2,490 960 1,547 1,794 314 884 1,925 2,003 335 1,021 372 1,206 2020/32021/32022/32023/32020/32021/32022/32023/3*)Includes withdrawn businesses and consolidation adjustments. Negative figures are not shown.*) Includes withdrawn businesses and consolidation adjustments. Negative figures are not shown.© LANCERS, Inc. All Rights Reserved21Changes in Company-wide Quarterly Operating IncomeProfitability in 4Q of the fiscal year ending March 31, 2023, and full-year profitability in the next fiscal yearChanges in company-wide operating incomeProfitable in 4QFull year profitable in the next fiscal year(Unit: Million JPY)0-41-70-121-134 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q2022/32023/3（Forecast ）2024/3（image ）© LANCERS, Inc. All Rights Reserved22Marketplace Business PolicyIn The Marketplace business, continue to invest in marketing and products to strengthen new client acquisition, while improving take rate through value-added improvements to push up the growth angle.Changes in growth rate and profitability of marketplace business(Unit: Million JPY)Gross Merchandise ValueGross profitYoY(Gross profit）116%5,516 118%6,484 Forecast YoY128％7,970 1,021 1,206 1,547 2021/32022/32023/3Policies for FY ending March 31, 2023Expand new client base through disciplined marketing investmentsIncrease No. of users and unit price through continuous product investmentValue-added increase in Take rate improvement© LANCERS, Inc. All Rights Reserved23Agent Business PolicyIn The Agent business, aim to increase gross profit by adding value through expansion of the organization and expansion of job types into new areas.Changes in growth rate and profitability of agent business4,671 1,410Forecast YoY258％Policies for FY ending March 31, 2023Expansion of GMVthrough organizational expansion(Unit: Million JPY)Gross Merchandise ValueGross profitYoY(Gross profit）YoY(Gross profit）※Tech Agent BusinessReference: GMV in the consulting areaReference: Gross profit in the consulting area107%111%3,2602,267 2,564 3353722021/32022/32023/3Forecast YoY147％Increase added value by expanding job categories into new areas960415545Increase productivity per capita through system investment© LANCERS, Inc. All Rights Reserved24Agent Business Policy：Increase gross profit through organizational expansionAim to improve gross profit per employee by reallocating personnel to the agent business without significantly increasing the number of employees company-wide.Trends in company-wide personnelTrends in gross profit per capita in agent business(Unit: Person)Agent businessOthersCommon列1(Unit: Million JPY)Gross profit per capitaPersonnelTransfer from withdrawn businesses, etc., to growing businesses3.23.33.22.7Improved gross profit per employee after organizational expansion237 50 55 31 101 252 49 84 119 214 35 85 25 69 30282931842021/32022/32023/3 1Q 2Q 4Q 1Q 2Q 3Q 4Q 3Q2022/32023/3© LANCERS, Inc. All Rights Reserved25Agent Business Policy: Add Value by Expanding Job Types to New AreasIn order to enter the consulting domain and evolve into a platform that can provide one-stop support for corporate DX, We will acquire Work Style Lab, Inc. as a new group company.Strategy formulationDX introduction andBuild a systemDX Operation andmaintenanceConsulting areaIT consultationA g e n c yLarge CompaniesSMBGeneralserviceprovidersGrouping・Company Name ：Work Style Lab, Inc.・Main service ：Platform business for freelance consultants・No. of registrants : Approx. 4000 persons(mainly from strategy/IT/DX consulting firms)© LANCERS, Inc. All Rights Reserved26Forecast for FY Ending March 31, 2023For the current fiscal year, SG&A expenses, excluding WSL, are expected to remain almost flat, and operating loss will improve.FY endingMarch 31, 2022 (previous period)FY ending March 31, 2023 (forecast)YoYGross Merchandise Value*10,31812,642+22.5%(Unit: Million JPY)Net salesGross profitOperating income /lossOrdinary income /lossNet income /lossSelling,general and administrative expenses(SG&A )2,780+17.3%4,0732,0032,370△367△358△6725,4012,490△289△284△286+32.6%+24.3%+77+74+385*)It is based on in-house management materials and is not an audited number.© LANCERS, Inc. All Rights Reserved27Forecast by FY Ending March 31,2023 by Segment*Marketplace business grows to +28% YoY in gross profit due to accelerated growth.Agent business aims for gross profit growth of 158% YoY, partly due to expansion into new areas.*) It shows the business division of our group based on management accounting standards.FY ending March 31, 2023 ( forecast)Gross Merchandise Value(YoY)Gross profit(YoY)Take rate(YoY)Operating/SegmentprofitOperatingmargin(Unit: Million JPY)Marketplace businessAgent businessOthers*shared cost**1,547+28.3％960+158.1％△177,970+22.9％4,671+82.2％–19.4％+0.8pt20.6％—33817.8％170.5％△17△628△289—Company-wide total12,642+22.5％2,490+24.3％19.7％+0.29pt*)Includes other gross merchandise value ,gross profit, consolidation adjustments, etc., in accordance with the Group’s management accounting standards.**)Includes corporate expenses (corporate, development, etc.). Expenses directly related to business segments are not included as they are considered business expenses.© LANCERS, Inc. All Rights Reserved28Medium-Long-Term Outlook (Prediction of Changes in Operating Income)Phase for profit expansionFurther growth investmentTo a high-growth, high-revenue platformProfitability in the next fiscal yearWith speedy growth Returned to profitability in 4Q280△million JPY360△million JPY…2021/32022/32023/32024/3*Med-long termLong-term outlook*) While continuing to invest, we plan to return to profitability and increase profits within three years. However, if temporary expenses are incurred for medium- to long-term growth and operating income does not increase beyond the previous fiscal year, investments will be made after dialogue with the market. © LANCERS, Inc. All Rights Reserved29MissionEmpowerment of IndividualsBy maximizing the potential of technology, Lancers will achieve the empowerment of all individuals to continue to live more smoothly, more freely, more like themselves, and with a smile on their faces.We aim to contribute to make a better society through providing values and growth opportunities, and by revolutionizing the work-style and lifestyle of individuals. © LANCERS, Inc. All Rights Reserved30APPENDIX© LANCERS, Inc. All Rights ReservedService DetailsLancers’ StrengthsPerformance DetailsFinancial Details12345Initiatives for Sustainability (SDGs)2022年3月期 通期決算説明資料（東証グロース：4484） © LANCERS, Inc. All Rights Reserved32Freelance Market Trends Compared to 2015, the population of freelancers continues to grow by +68%. The size of its economy also expanded by +63%.Expanding the size of the freelance economy and population *Size of economy (Trillion JPY)Population (10,000 people)1,090 937 14.6 16.4 After COVID-19 pandemic 1,577 1,518 1,148 1,151 1,118 1,062 18.9 20.6 21.0 17.6 25.5 23.8 2015201620172018201920202021/12021/10*) Reference from “New Freelance Survey 2021-2022″. Please refer to the following URL for details:https://speakerdeck.com/lancers_pr/xin-huriransushi-tai-diao-cha-2021-2022nian-ban© LANCERS, Inc. All Rights Reserved33Lancers’ targets in Freelance marketMarket is expected to expand to about 1 trillion JPY around 2030 as online and outsourcing become more prevalent in the futurePotential expansion of Lancers’ target marketOverall market for specific occupations (approx. 45 trillion JPY*)特定職種の全体市場（約45兆円*）External HR market (approx.5 trillion JPY*)In-house HR market(approx. 40 trillion JPY*)Onli nerateLong-term market(several trillions of JPY)Market by 2030**(approx. 1 trillion JPY)GMV of our group (3/2022)About 10.3 billion JPYMarket in 2020 ***(approx. 50 billion JPY)Outsourcing (utilization of external HR) rate*) We calculated the external HR utilization rate and the target HR market and estimated the market size based on materials such as 2015 National Census, 2016 Economic Census, Specified Service Industry Dynamic Statistics Survey August 2020, Reiwa 1st Annual Wage Structure Basic Statistics Survey, Yano Research Institute “2020-2021 BPO (Business Process Outsourcing) Market” Actual conditions and prospects”, Industry Trends SEARCH.COM, Career Change Service doda” Average Annual Income Ranking by Job Type 2019”.**)The online rate of specific occupations (weighted average online rate of 31%) is estimated from the “Freelance Survey 2020” conducted by our group in February 2020 and the “Freelance Survey 2021” conducted in February 2021, calculating the market size from the above data. We estimate that the figures will reach around 2030 from the growth rate of other companies in the same industry (average 30-40%).***)It is estimated from GMV disclosed by other companies in the same industry.アウトソース（社外人材活用）化率Market size ratio by specific occupationsMarket by 2030 (approx. 1trillion JPY)Front officeApprox. 60%Middle officeApprox. 10%Back officeApprox. 30%DevelopmentDesignSalesConsulting/PlanningMarketing/PRHR/Recruitment/LaborAcconunting/Finance/LegalSecretary/Admin© LANCERS, Inc. All Rights Reserved34Needs TargetApproximately 90% of work distributed by Lancers is related to DX promotion, and most of the clients are SMBs.Percentage by needs of distributed work*Percentage of clients by size*OthersApprox.10%DX operation Approx.30%DX introduction Approx.60%DXpromotionApprox.90%Large companiesApprox.10%SMBApprox.90%*)Percentage of Gross Merchandise Value of our group by other details.*)Percentage of Gross Merchandise Value of our group by size of client companies.© LANCERS, Inc. All Rights Reserved35Our Serviced We Offer from Our Business Segments*Disclosed by business segments* due to the impact of the pandemic that differs for each business. Reported market changes and strategic updates by each segment.*)It shows the business division of our group based on management accounting standards.Our group’s business segmentsMajor servicesMajor clientsMajor categoriesBusiness modelsTake rate*Marketplace businessSMBCreative productionApprox.18％-19％Development/operationBack officeDirectly used bycompanies onlineAgent businessSMBDevelopment/operationIT human resource Large companiesCreative productionsupport provided by our Approx. 14％-15％Consultingstaff*)Take rate level for the previous year. **) Workstyle Lab’s Professionals on Demand is not disclosed at this time due to the lack of achievements of our group© LANCERS, Inc. All Rights Reserved36Each Service ModelsLancers has a common platform and offer multiple services depending on the needs of our clients.Marketplace businessManaged service businessAgent business(Request format)Package scheme（Selling format）ClientsClientsClientsClientsSubcontractingSubmission/completionSubmissionPurchasepaymentsRecruitmentrequestLancers EmployeesWork Style Lab EmployeesProject RequestSelection interview adjustmentSelection of a freelancerProceed/ submissionSellingRewardWorkWorkSelection interview adjustmentFreelancers© LANCERS, Inc. All Rights Reserved37Reference: Services Offered by Work Style Lab, Inc.Work Style Lab, Inc. offers “Professionals On Demand (POD)” as its main service, which mediates between registered consultants and large and small-to-medium companies (SMB).Services providedProject detailsFreelanceconsultantsConsulting firm graduates, etc.Approx. 4,000 registered consultantsStrategic(30%)・Management planning support・New business start-up・M＆A supportMatching ona project-by-project basisPaymentProject requestsPaymentClientsCumulative total of 5,000 projectsPast transactions: 500 companiesIT-related(35%)DX-related(35％)・Introduction of core system・ Web and app development ・ Review and promotion of IT strategy・Business reform (including organization/accounting, etc.)・Marketing・Data application© LANCERS, Inc. All Rights Reserved38Differences from Other Human Resource ServicesHighly convenient in terms of human resource expertise, completion online, and Overwhelming speed.Expertise in HRCompletion onlineOverwhelming speedProviding highly specialized personnelProviding a workflow that is completed onlineProviding resources immediately when neededExpertise HighWork in the office (Employees)Online staffingEmployeesFreelancersTemp staff / contractorsTemporarystaffingCrowd sourcingFreelancersExpertise LowDependab ilityonasinglecompanyLow Dependab ilityonasinglecompany HighJob request to a freelancerEscrow (payment in advance)Implementation of the projectInspection of the projectEvaluationStart of applicationTemp staffEmployee1-6weeks 2weeksto3months iMatchngfrom1daytoaweek© LANCERS, Inc. All Rights Reserved39Business Models / FeaturesOnline staffing* (OS) that provides a job offer to specific individual is our main feature, which contributes 90% of Gross Merchandise Value. It puts us on a unique position in Japan.*)Online staffing (OS) is an abbreviation for online staffing platform .Online Staffing (OS)Crowdsourcing (CS)1Request for workafter selecting arequest destination(order)Business models4Inspection3Startthe project2A job offer to a specificfreelancer (offer)1Job recruitment(order)2Job recruitment(offer)Clients or our companyFreelander (specific)ClientsFreelancers (unspecified number)Examples of jobsDevelopment, designs, office workUnit priceGMV ratio**)Percentage of our group’s GMV.High unit price90%Approx. x 4約 倍４© LANCERS, Inc. All Rights Reserved404Choose amongThe deliverables 3Selling of deliverablesTasks, data entryLow unit price10%Service DetailsLancers’ StrengthsPerformance DetailsFinancial Details12345Initiatives for Sustainability (SDGs)2022年3月期 通期決算説明資料（東証グロース：4484） © LANCERS, Inc. All Rights Reserved41Lancers’ StrengthsEstablishing a platform for the distribution of high value-added work by guaranteeing reliability.ClientsFurther creation of high value-added and high unit price workFreelancers1Technology to visualize reliability2Our unique matching algorithmA platform to secure reliability3Ecosystem to increase and retainreliable freelancersProvision of high quality outputIncrease in unit price per clientImprovement ofcontinuationrateOpportunities for high value-added workIncrease in reliable freelancersIncrease in per capita renumeration2022年3月期 通期決算説明資料（東証グロース：4484） © LANCERS, Inc. All Rights Reserved42Reference: Definition of Reliable FreelancersRank evaluation is conducted and certified every month.Increasing reliable freelancers to establish a higher quality and more valuable platform.Approx.80%of GMVReliable freelancersDefinition of reliable freelancersRegularBronzeSilverCertified FreelancerIdentity verification and NDA verification completedFreelancers with a track record of receiving ordersHighly rated activefreelancersHighly-rated freelancers with achievements and rewards2022年3月期 通期決算説明資料（東証グロース：4484） © LANCERS, Inc. All Rights Reserved431. Technology to visualize “reliability”We have developed a mechanism that recommends a real-name system that is effective for strengthening reliability and displays it with priority© LANCERS, Inc. All Rights Reserved442. Our unique matching algorithmIt promotes matching with reliable freelancers and clientsMatching freelancers with clients with high affinityRegister reliable dataRequest projects at appropriate priceFreelancersClients RealnamesIDphotosSkillsAchievementsBestpricesFairpricesDifference from market price© LANCERS, Inc. All Rights Reserved453. Ecosystem to increase and retain reliable freelancersDevelop and secure highly skilled freelancers by establishing a cycle of skill acquisition and job acquisition.Reinforcing the cycle of skill acquisition and job acquisitionFeatures of “Lancers Digital Academy” linking highly skilled HR development and job acquisitionStarts JuneJob acquisition Highly Skilled HR developmentLearning by mentoringGaining achievementsand experienceHR developmentLearn the skills and knowledge of the top players in the industryLearn cutting-edge skills from high-quality video materials through full online learningExperience an unprecedented learning environment through virtual classroomsthat create interaction in a virtual space © LANCERS, Inc. All Rights Reserved46Service DetailsLancers’ StrengthsPerformance DetailsFinancial Details12345Initiatives for Sustainability (SDGs)2022年3月期 通期決算説明資料（東証グロース：4484） © LANCERS, Inc. All Rights Reserved47Sources of KPI and CompetitivenessEmphasizing expansion of Gross Merchandise Value and Gross profitrepresenting our added value.Gross profitGMV*×Take RateMaintain the status quoKPINumber of active clientsSpend per client×Source of competitiveness▲▲▲▲The number of reliable freelancers© LANCERS, Inc. All Rights Reserved48Changes in the Number of Client Companies and Usage Amount (Annual)The number of clients and the amount spent by clients remained steady.Annual trends in number of active clients *Annual trends in spend per client*(Unit: Hundred active clients )(Unit: Thousand JPY)2562932053193323373633791651671941411122402512642015/32016/32017/32018/32019/32020/32021/32022/32015/32016/32017/32018/32019/32020/32021/32022/3*) It indicates the “number of clients” as the “number of active clients” respectively up to the 1st quarter financial statements for the fiscal year ended March 2021. *) It indicates the “unit price of clients” as the “spend per client” respectively up to the 1st quarter financial statements for the fiscal year ended March 2021. The spend per client indicates the average spend per client during the limited period. It does not include businesses in other areas such as “Lancers AREA PARTNER”, “Sharefull” and “MENTA”.© LANCERS, Inc. All Rights Reserved49Marketplace BusinessGMV of new clients and existing clients diverge from the target line of sightChanges in GMV of new and existing (repeat) clients(Unit: Million JPY)New (first contract) clientsExisting (repeat) clients＋18％1,558 1,601 1,586 1,630 1,666 2202242192102131,472 1,308 2131,067 1,106 1,131 1,180 1,170 1,176 186173167173158167173908 938 957 1,006 1,002 1,002 1,121 1,258 1,337 1,377 1,366 1,419 1,452 4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q2019/32020/32021/32022/3GMV of new clientsYoY＋9 ％Delayed recovery of investment, effect will be reflected from this fiscal year onward.GMV of existing clientsYoY＋19％Steady accumulation but affected by new clients© LANCERS, Inc. All Rights Reserved50Managed Service BusinessWithdrawal of contract-based services and flat-rate services, and transfer of some clients to existing servicesChanges in GMV of manages service business(by service)Flat-rate Contract△25％Some clients transferred to existing servicesContract-based serviceFlat-rate service▲▲Transfer to matching services with corporate partners, etc.Introducing partnersofficeOrderClientDirecting partnerFreelancersInternal resourcesExternal resources1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q2020/32021/32022/3© LANCERS, Inc. All Rights Reserved51Strategies for Medium-to Long-Term Realization and Future DevelopmentCompany-wide target transition of gross profitIncreasing profits by restructuring peripheral businesses・Increasing profits by regrowth of tech agent business(consolidate into the agent business) ・Stabilizing profits by restructuring the managed service business3-3.5Billion JPY scale1.9Billion JPY2021/32022/32023/32024/3Business expansion by building an ecosystem for individuals・Provide new compensation opportunities that are not limited to existing work areas・Expand the value of services provided to lancers and individuals, such as educationExpand client LTV through platform evolution・Diversifying product matching mechanisms・Take-rate changes due to value-added improvements ・Promoting continuous usage by strengthening customer successAttracting new clients by expanding categories・Subdividing existing categories based on market needs・ Launch and expansion of new categories with high market needs・Entry into high value-added consulting areas© LANCERS, Inc. All Rights Reserved52Service DetailsLancers’ StrengthsPerformance DetailsFinancial Details12345Initiatives for Sustainability (SDGs)2022年3月期 通期決算説明資料（東証グロース：4484） © LANCERS, Inc. All Rights Reserved53Consolidated P/L for FY Ending March 31, 2022 (Single Quarter)SG&A expenses increased due to intensive investment in the marketplace business.Impact on sales structure due to structural shift toward withdrawal from managed services business.4Q of FY Ending March 31, 2022 ( single quarter）4Q of FY Ending March 31, 2021 （Previous single quarter）3Q of FY Ending March 31, 2022 （Previous single quarter）(Unit: Million JPY)ActualActual% changeForecast% Achievement Gross Merchandise Value*Net salesGross profitSelling,general and administrative expenses(SG&A )Operating income /lossOrdinary income /lossNet income /loss2,6901,066521655△134△130△3762,5931,081542491505447+3.7%△1.4%△3.9%+33.3%—2,5751,001493614△121△119△119+4.5%+6.5%+5.6%+6.6％—*)It is based on in-house management materials and is not an audited number.© LANCERS, Inc. All Rights Reserved54Financial Results by Segment* for 4Q (Single Quarter) of FY Ending March 31, 2022 The marketplace business will be reviewed as the recovery of investment has been pushed back. The managed service business scaled back for withdrawal. The tech agent business is on a renewed growing trend.*) It shows the business division of our group based on management accounting standards.4Q(single quarter) of FY Ending March 31, 2022 Gross Merchandise Value (YoY)Net sales(YoY)Gross profit（YoY）Sales/segment profitOperating margin1,666+6.9％316△24.8％707+21.3％320 +10.8％287△24.9％462+22.2％309 +7.2％115△22.9％99+16.0％△6 27113Q of FY Ending March 31, 2022 （Previous single quarter）Gross Merchandise Value% changeNet sales% changeGross profit% change+2.2%+3.3%＋1.7%9.7%+11.3%+11.2%+20.1%2.4%+7.2%+5.9%+3.1%０△4△4△167—2,690+3.7％1,066△1.4％521△3.9％△134+4.5%+6.5%+5.6%—(Unit: Million JPY)Marketplace businessManaged service businessTech agent businessOthers*Total*) It includes other Gross Merchandise Value amount, sales, gross profit, company-wide expenses (corporate/development, etc), consolidated adjustments, etc in our management accounting standards. Expenses directly linked to business segments are not included because they are considered as business expenses.© LANCERS, Inc. All Rights Reserved55Financial Results by Segment* for Full Year Ending March 31, 2022 The marketplace business fell short of the forecast due to client acquisition issues. The managed services business is making progress toward withdrawal. The tech agent business is expanding as the market recovers.*) It indicates our group’s business segmentation based on management accounting standards.FY Ending March 31, 2022 ( Full-year )FY Ending March 31, 2022 （Forecast）Gross Merchandise Value (YoY)Net sales(YoY)Gross profit（YoY）Sales/segment profitOperating marginNet salesachievement rateGross profitachievement rateGross Merchandise Valueachievement rate(Unit: Million JPY)Marketplace businessManaged service businessTech agent businessOthers*Total1,206+18.0％438△15.0％372+11.0％6,484+17.6％1,269△10.6％2,564+13.1％０10,318+11.0％1,251+22.4％1,153△10.6％1,682+15.1％△134,073+5.3％16913.6%90.8%94.2%90.8%64685.6%124.4%124.5%111.0%4.1%101.4%101.6%102.5%△13△6692,003+4.0％△367—–96.5%104.4%96.4%*) It includes other Gross Merchandise Value amount, sales, gross profit, company-wide expenses (corporate/development, etc), consolidated adjustments, etc in our management accounting standards. Expenses directly linked to business segments are not included because they are considered as business expenses.© LANCERS, Inc. All Rights Reserved56Performance Trends by Segment*（Unit: Million JPY）1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4QGrossMarketplace business9601,0001,0701,067 1,106 1,131 1,180 1,170 1,176 1,308 1,472 1,558 1,601 1,586 1,630 1,666FY2018FY2019FY2020FY2021*)It shows the business division of our group based on management accounting standards.MerchandiseManaged service businessValueTech agent businessOthers*Net salesMarketplace businessManaged service businessTech agent businessOthers*Managed service businessTech agent businessOthers*2712930199251122158760155841264327021224614797853872323083840216285186512161045934634726041002132402031021389631023-4389489322236127321222142761460729021302012419438745228588-24-9237041328034137542131834928431656661758754654958257562165970730182516310000224223220242269289309311310320336375254310341382289317258287318378372351359378375407436462165419261831-1-3 ‐4 ‐414015510612912915010212396115-186107102-3410411114315485135116892913188912-1021781413138283138617192483-198-01692-354302096 -422 619Profit by segmentMarketplace businessManaged service businessTech agent business-21-16-22Gross profitMarketplace business201199212224223220242269288297294304309Others*-130-152-125-102-120-126-134-131-136-159-147-156-175-170-167*) It includes other Gross Merchandise Value amount, sales, gross profit, company-wide expenses (corporate/development, etc), consolidated adjustments, etc in our management accounting standards. Expenses directly linked to business segments are not included because they are considered as business expenses.© LANCERS, Inc. All Rights Reserved99-4-6271157Trend in Gross Merchandise Value (Consolidated)Companywide growth was +11% YoY, and Tech agent business accelerated to re-grow from 2Q onward.(Unit: Million JPY)Marketplace businessManaged service businessTech agent businessOthers*2,0154893891,7784102602,1202,2015663706174132,0635872802,222546341＋11％9,29410,3182,5932,4952,5572,5755824215753186213496592842,6907073162,4145493751,1061,1311,1801,1701,1761,3081,4721,5581,6011,5861,6301,6661Q2Q4Q1Q2Q4Q1Q2Q3Q2021/33Q2022/34Q3Q2020/3*) Others” includes other businesses and consolidation adjustments. In addition, negative figures are not shown.© LANCERS, Inc. All Rights Reserved58Trend in Net sales (Consolidated)Net sales increased by 5% YoY, partly due to the impact of withdrawal from Managed services business.(Unit: Million JPY)Marketplace businessManaged service businessTech agent businessOthers*8788952733183613362222Q2020/32243Q6692032402131Q1,0313783752234Q8673722542201Q9883593413,8689303513102422021/3＋5％1,0813789713754,0731,0331,0011,0664074364623822893172582872692893093113103202Q3Q4Q1Q3Q4Q2Q2022/3*) Others” includes other businesses and consolidation adjustments. In addition, negative figures are not shown.© LANCERS, Inc. All Rights Reserved59Trend in Gross profit (Consolidated)Gross profit increased 4% YoY, partly due to the impact of withdrawal from Managed services business.(Unit: Million JPY)Marketplace businessManaged service businessTech agent businessOthers*＋4％4557646385142140497891554657812948982129428891061,9252,00354286150480831025079212349396965219911522222422322024226928829729430430937763892131Q2Q3Q4Q1Q2Q4Q1Q2Q4Q3Q2021/33Q2022/32020/3*) Others” includes other businesses and consolidation adjustments. In addition, negative figures are not shown.© LANCERS, Inc. All Rights Reserved60Trend in SG & A Expenses (Consolidated)Overall SG&A expenses were within budget.(Unit: Million JPY)647Others (rent, audit fees, etc.)Goodwill/depreciationPayment costs/communication costs98544Advertising costsOutsourcing costsLabor costs400111947492615641911394858361543243613863415110531687617444499105751434631031057545648949111116626156991664566952111616726457577123186870966141211968969965512620761051001821821811851941992082261Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q2020/32021/32022/3© LANCERS, Inc. All Rights Reserved61Personnel Composition (Consolidated)The marketplace business expanded its organization by hiring approximately 20 engineers. Continued reallocation to growing businesses through internal transfers.FY ended in March 2021FY ending March 2022 (expectation)FY ending March 2022 (Actual)16%12%32%40%47%17%24%▲▲13%▲▲14%18%44%24%*)The marketplace business includes the number of personnel in the development department.Marketplace business*Managed service businessTech agent businessCorporate (common department) *excluding directors and corporate auditors© LANCERS, Inc. All Rights Reserved62Shareholder CompositionShareholder Composition(as of end of September, 2021)Shareholder Composition (as of end of March, 2022)48%▲▲▲48%8%14%23%6%1%10%11%24%6%1%Overseas institutional investorsDomestic institutional investorsIndividual investors/othersBusiness companiesVCFounders/managers© LANCERS, Inc. All Rights Reserved63Important Risk and Response Policies for Business Execution 1/2We will appropriately identify major risks* that we recognize may have a significant impact on the realization of our goals and the execution of our business plans, and take measures to address them.*)Please refer to “Business and Other Risks” in the Annual Securities Report for other risks.Significant risks for our businessPossibility/durationImpact on businessexecutionExamples of risky situationsMain response policiesChanges in thecompetitiveenvironmentMedium/Short-term• Drop in shares• Decrease inusage rate• Possible intensification of competitions with companies that offer similar services and failure to sufficiently differentiate with them.• Potential for innovative changes in the structure• Building services that pursue appropriate usability• Ensuring safety when using our website• Enhanced customer support functions• Business development based on a code of conduct thatof the business domain itself.puts the success of freelancers firstLabour-related lawsand regulations andtrends in theworking populationLow/Long-term•Impact onbusinessoperations• Due to domestic labour laws and regulations, population trends, etc., the growth of the freelance population may slow down and side businesses may not increase. The market environment may also change.• Aiming to reduce risks by collecting information on labour-related laws and regulationsSecurity for informationLow/Occasionally• Outflow of customers• Damage on brand image• Due to unauthorized access from outside or defects in the internal management systems, social credibility of our group may be damaged if personal or confidential information is leakedand a claim for damages is made to us.• Establishing information security policies and strictlymanaging personal and confidential information• Establishing security-related rules and manuals andproviding in-house training for directors and employees• Obtaining and renewing the privacy mark systemcertification from the Japan Institute for Promotion ofDigital Economy and Society (JIPDEC)© LANCERS, Inc. All Rights Reserved64Important Risk and Response Policies for Business Execution 2/2We will appropriately identify major risks* that we recognize may have a significant impact on the realization of our goals and the execution of our business plans, and take measures to address them.*) Please refer to “Business and Other Risks” in the Annual Securities Report for other risks.Significant risks for our business Possibility/durationImpact on businessexecutionExamples of risky situationsMain response policiesSystem failureLow/Occasionally• Outflow of customers• Damage on brand image• Possible server outages and loss of stored data due to unexpected events such as natural disasters and accidents, rapid increase in the number of users and traffic, software malfunctions, unauthorized access via networks, and computer virus infections.• Saving data in the cloud.• Ensuring a security system to prevent unauthorizedexternal access.Acquisition and development of human resourcesMedium/Med-term• Loss ofcompetitivenessImpact on business operations• Our business and our business performance may be affected if the human resources required cannot be sufficiently secured and trained, or if the out flow of human resources accelerates.•• Acquiring excellent highly motivated human resources who fully understand our mission and vision.Implementing measures to secure excellent humanresources and appropriately developing and allocatethem, as well as introducing a personnel system with a mission to continuously expand our business.Uncertainty of newbusinessesLow/ Long-termImpact ondiscontinuousgrowth• An unexpected situation may occur and new businesses may not proceed as planned and the investment funds may not be recovered.• Carefully analysing the market and business plans• Strengthening the monitoring system, including apparent information, to minimize the impact on our business and performance. ••© LANCERS, Inc. All Rights Reserved65Service DetailsLancers’ StrengthsPerformance DetailsFinancial Details12345Initiatives for Sustainability (SDGs)2022年3月期 通期決算説明資料（東証グロース：4484） © LANCERS, Inc. All Rights Reserved66Initiatives for Sustainability (SDGs)SustainabilityBuilding a sustainable society with an understanding of diversity by providing new work stylesWhile valuing the relationship between individuals and client partner companies, we will fulfill our responsibilities through business operations as an innovator for the next generation to contribute to the healthy and dramatic development of society and the creation of a sustainable society.In addition, we consider that “realization of Mission Vision (creation of new work styles and new job satisfaction)” is in a field “job satisfaction” that can contribute to the SDGs, and are committed to deal with 5 important issues (materiality) which are involved in the SDGs.An environment where any work is worthwhile for individualsRealization of Mission & VisionTransaction / GovernanceProviding human resources to client companiesA workplace where everyone can work in a way that suits them※ See below for more details.https://www.lancers.co.jp/sustainability/2022年3月期 通期決算説明資料（東証グロース：4484） © LANCERS, Inc. All Rights Reserved67“Lancer of the Year” Held in March 2022Freelancers’ celebration “Lancer of the Year” is held every year.© LANCERS, Inc. All Rights Reserved68DisclaimerHandling of this documentThis document contains statements regarding expectations and prospects. These descriptions are only based on the information at the time this document was created.Moreover, these statements do not guarantee future results, but involve risks and uncertainties. Please note that actual results may differ significantly from future expectations due to changes in the social environment and other factors.Factors that affect the above actual results may include, but are not limited to, domestic and international economic conditions and related industry trends of our company.The information contained in this document regarding other companies is be quoted from public information, and we have not verified and do not guarantee the truth, accuracy. Appropriateness or completeness of such information.Disclosure policyWe will disclose the latest content, including the progress of the materials in the “Business Plan and Growth Potential Matters” in the full-year financial results. We also plan to disclose the progress of management indicators (financial figures and KPI figures) quarterly.© LANCERS, Inc. All Rights Reserved69© LANCERS, Inc. All Rights Reserved