中期経営計画「NEXT STAGE 2023」英語版リリース のお知らせ

2020 年９月３日
各 位
上 場 会 社 名 株式会社Ｌｉｂ Ｗｏｒｋ
代 表 者 名 代表取締役社長 瀬口 力
(コード番号：1431 東証マザーズ・福証 Q-Board)
問 合 せ 先 責 任 者 取締役管理部長 櫻井 昭生
（TEL．0 9 6 8 - 4 4 - 3 5 5 9 ）


中期経営計画「NEXT STAGE 2023」英語版リリースのお知らせ
Announcement of Medium-Term Management Plan NEXT STAGE 2023

当社は、今後の事業展開につき、国内に加えて海外においても個人及び機関投資家を含めたより多くの投資
家層の拡充を図るべく、英語版中期経営計画をリリースいたしましたのでお知らせいたします。


＜英語版 中期経営計画「NEXT STAGE 2023」ＵＲＬ＞
https://contents.xj-storage.jp/xcontents/AS04572/c9539cc7/566b/47d0/aad2/7ccab2348b5a/140120200901488134.pdf


当社では、今後も引き続き株主様に対し適時適切な情報発信を行って参ります。
以 上
 August 13, 2020


Listed company
Lib Work Co., Ltd.
n a m e
Chik ar a Se guc hi
N a m e o f
P r e s i d e n t a n d
Representative
Representative Director
(Code : 1431, Tokyo Stock Exchange Mothers /
Fukusho Q-Board)
Akio Sakurai, Director and
I n q u i r i e s General Manager of
Administration Department
TEL. +81-968-44-3559


– English Translation –
Announcement of Medium-Term Management Plan NEXT STAGE 2023
(July 2020 – June 2023)

Lib Work Group has formulated a three-year medium-term management plan, NEXT STAGE 2023, for the
three years from the fiscal year ending June 2021.

As a housing technology company with web marketing as its core competence, Lib Work Group has been
striving since its foundation to achieve its mission of providing valuable lifestyles to people around the
world. Our motto is changing lives, changing the world, and creating the future. In January 2020, we
published a long-term business vision entitled VISION2030 and continue working tirelessly towards
achieving it.
With the dramatic changes in people's lifestyles due to the worldwide spread of COVID-19, we have now
decided to revisit parts of our vision and to present a medium-term management plan to further strengthen
our position in the marketplace and the advantages it provides us. In this regard, we are officially
announcing NEXT STAGE 2023.
From a competitive perspective, we believe that the capabilities of digital marketing, that is at the core of
what we do, are expected to become even more important than ever now. In addition, the demand in the
detached housing market is expected to rapidly increase as more and more people are beginning to work
from home and social distancing is at the forefront of everyone’s mind. Accordingly, we will continue to
concentrate on the detached housing business and aim to establish ourselves as a platformer in the
detached housing market.

Basic policy
1. Becoming a platformer in the detached housing market (concentrating on the detached housing

-1-
 business).
2. Accelerating nationwide expansion to achieve rapid growth and expansion of business (net sales x
2.5 times; operating profit x 8 times).
3. Establishing an SPA model in the residential housing business (aiming for a 35% gross profit margin).
4. Monetizing the support business for construction companies and builders nationwide through a
subscription model.

Numerical targets

Fiscal Year ended June 2020 Fiscal Year ending June 2023
Market Capitalization 11 billion yen 50 billion yen
6 billion yen 15 billion yen
Net Sales
(x 2.5 times)
140 million yen 1.2 billion yen
Operating Profit
(x 8 times)
ROE 7.3% 25%

Roadmap
1. Becoming a platformer in the detached housing market.
1) Enhancement of portal sites related to detached housing business:
⚫ Enrich and enhance portal sites specialized in detached housing-related categories (land search
“e tochi net”, custom-built house design “e chumon-jyutaku net”, one-storied house “e hiraya
net”, matching clients with architects “e kenchikushi net”), and expand nationwide.
⚫ Launch two to three new websites a year specialized in the detached housing business
category to secure a major share in the detached housing market.
⚫ In addition to the websites for our houses, launch and expand intermediary portal sites for
ready-built houses by other builders.

2) Focus on YouTube channels:
⚫ The YouTube channel LibWork ch launched in January 2020 and has been steadily increasing
the number of registered users and replays. Our aim is to become number one on the channel
for videos played in the “houses”, “custom-built houses” and “detached houses” categories.

2. Accelerating nationwide expansion to achieve rapid growth and expansion of business.
1) Expansion of areas and number of stores:
Currently, we have stores in Kumamoto Prefecture (8 stores), Fukuoka Prefecture (1 store), Saga
Prefecture (1 store), Oita Prefecture (1 store), and Kanagawa Prefecture (1 company). We plan to
increase the number of stores nationwide from the current total of 12 stores to 25 stores within the
next 3 years. Based on market research, we will select the appropriate locations and launch new
stores accordingly.

2) Development of “sketch” brand for shopping malls:
Launch a low-priced “sketch” brand for shopping malls and expand to 3 to 5 stores nationwide
within the next 3 years.

3. Establishing an SPA model in the residential housing business.
1) Taking into consideration the shortage of craftsmen and contractors in the future, we will insource
-2-
 main construction work. By doing this, we aim to increase the gross profit margin in the detached
housing business to 35% by 2023.

2) Start to develop our proprietary construction methods.

4. Monetizing the support business for construction companies and builders nationwide through a
subscription model.
We plan to release an AI-based support system for construction companies and builders nationwide
in April 2021. This has been adopted as a new collaboration support project entitled “Utilizing
Advanced Technologies such as IoT, AI, and Block Chain” by the Ministry of Economy, Trade and
Industry. We aim to expand the service for construction companies all over Japan. Our goal is to
also make an operating profit of 40 million yen in the fiscal year ending June 2022, and 100 million
yen in the fiscal year ending June 2023.

In accordance with the roadmap above, we have set the KPIs as follows:

KPI

Fiscal Year ended in Fiscal Year ending in
June 2020 June 2023
6 billion yen 15 billion yen
Net Sales
(x 2.5 times)
140 million yen 1.2 billion yen
Operating profit
(x 8 times)
Operating profit to net sales 2.4% 8%
ROE 7.3% 25%
Gross profit margin in the detached
28% 35%
housing business
Number of stores 12 stores 25 stores
Web traffic Increase by 50% year on year
YouTube channel
500 100,000
number of registered users
Support business through a Adopted as METI’s New Operating profit of 100
subscription model Collaboration Support Project million yen




-3-
Medium-Term Management Plan (July 2020 – June 2023)


NEXT STAGE 2023



August 13, 2020
(Securities Code : 1431)
 1


01 Basic Policy P.02

02 Numerical Targets P.04

03 Roadmap P.07
[1] Becoming a platformer in the detached housing market
[2] Accelerating nationwide expansion to achieve rapid growth
and expansion of business
[3] Establishing an SPA model in the residential housing business
[4] Monetizing the support business through a subscription model

P.18
04 KPI
 2

Basic Policy

Platformer SPA model New Support
Acceleration Business
in in the
Nationwide through
Detached Expansion Residential Subscription
Housing Business Model

Monetize the
Concentrating Net Sales x 2.5 35% gross
support
on the Operating Profit x 8 profit margin in
business for
detached the detached
construction
housing housing
companies
business business
nationwide
 3


01 Basic Policy P.02

02 Numerical Targets P.04

03 Roadmap P.07
[1] Becoming a platformer in the detached housing market
[2] Accelerating nationwide expansion to achieve rapid growth
and expansion of business
[3] Establishing an SPA model in the residential housing business
[4] Monetizing the support business through a subscription model

P.18
04 KPI
 4

Fiscal Year 2023 Numerical Targets

Market Capitalization 50 billion yen



Operating ROE
Net Sales
15 billion yen Profit 25%
(x 2.5) 1.2 billion yen
(x 3.4)
(x 8)


* Figures in parentheses are in comparison with the ones for the fiscal year ended June 30, 2020.
 5
Fiscal year 2023 Numerical Targets

15 billion yen 1.2 billion yen
Net Sales Operating
Profit
X 2.5
X 8
6 billion yen


140 million
yen


2020/6 2023/6 (forecast) 2020/6 2023/6 (forecast)
 6


01 Basic Policy P.02

02 Numerical Targets P.04

03 Roadmap P.07
[1] Becoming a platformer in the detached housing market
[2] Accelerating nationwide expansion to achieve rapid growth
and expansion of business
[3] Establishing an SPA model in the residential housing business
[4] Monetizing the support business through a subscription model

P.18
04 KPI
 7
Traditional Business Model for
House Builders


House
Builders



Inviting Prospective Clients to Model Houses and Sales

About one year after the opening of a model house,
● stagnate the number of prospective clients, and
● increase client acquisition cost
then rebuild the model house in 5 years time.
 8
Lib Work’s Business Model
Utilizing Websites to Attract Clients Significant
reduction
to the
Lib Work client
acquisition
cost
Send prospective clients to one of our
model houses according to their needs and preferences




The websites are independent from a region and easy to expand nationwide.
[1] Becoming a platformer in the detached housing market 9
1) Enhancement of portal sites

---

Land search Nationwide Accelerating
expansion Web Traffic
Year-on-year increase
50%
Design 442

FY 2017/6 = 100

One-storied house
Actual and Forecast 295

Enlarged image 197
“e tochi net"

---

Matching between clients and

---

New Category Sites

+
architects

---

2-3 launches/year

---

[1] Becoming a platformer in the detached housing market 10
1) Strengths and characteristics of the land search site

Kyushu area
Information supplier for land for sale Kumamoto
(such as real-estate agencies) Fukuoka

Saga
Free posting ＋ Paid posting
No agent’s commission （Advertise Model） Oita

+
Kanto area
large number of properties Kanagawa




Continue to scale throughout Japan
[1] Becoming a platformer in the detached housing market 11
1) Strengths and Features of Architect
Matching Client’s offers coming from their review of
Accepting Orders
architects or construction use cases



Select Offer




Architects Clients

Select Offer




Platform matching
clients and architects (image) Expansion of
each area version

Started from ★ ★ Version
● ● version
Kumamoto
version
■ ■ version
[1] Becoming a platformer in the detached housing market 12
2) Focus on YouTube channels (Lib Work ch)
10K
Started in January 2020
Solid growth of number of replays
(cumulative)




ch



January 2020 June 2020

In the following categories,
Target number of registrations
・ Home
* Each of the above is a screen capture of Lib Work ch
as of August 10, 2020.
・ Custom-Built Housing #1 100,000
・ Detached Houses
Our aim is to become #1 on the channel for videos played.
[2] Accelerating nationwide expansion to achieve 13
rapid growth and expansion of business
1) Expansion of areas and number of stores



12 stores 25 stores




Kumamoto Prefecture (8 stores)
Fukuoka Prefecture (1 store)
Saga Prefecture (1 store)
Oita Prefecture (1 store)
Kanagawa Prefecture (1 company)
[2] Accelerating nationwide expansion to achieve 14
rapid growth and expansion of business
2) Development of “sketch” brand for shopping malls

Sales target ¥ 2 billion
1 store 3-5 stores



Enlarged image of
sketch




Target contracting fee :
¥18,000,000 x 40 houses
[3] Establishment of an SPA model 15
in the residential housing business

Improvement of the gross profit margin


28% 35%

Insourcing the 5 major construction works.
(water supply and drainage facilities, foundation work, erection work, siding work,
and soil improvement work)

Start developing our own proprietary methods.
[4] Monetize the support business through 16
a subscription model
Adopted as “Utilizing Advanced Technologies such as IoT, AI, and Blockchain”
by the Ministry of Economy, Trade and Industry

Start of New revenue
Research and Operating Profit
Development 100 million yen


AI-based support system for construction companies and builders
(to be launched in April 2021).
 17


01 Basic Policy P.02

02 Numerical Targets P.04

03 Roadmap P.07
[1] Becoming a platformer in the detached housing market
[2] Accelerating nationwide expansion to achieve rapid growth
and expansion of business
[3] Establishing an SPA model in the residential housing business
[4] Monetizing the support business through a subscription model

P.18
04 KPI
KPI 18
Fiscal Year ended June 2020 Fiscal Year ending June 2023
15 billion yen
Net Sales 6 billion yen
(x 2.5 times)
1.2 billion yen
Operating Profit 140 million yen
(x 8 times)
Operating Profit to Net Sales
2.4% 8%
ROE
7.3% 25%
Gross profit margin in the detached
housing business 28% 35%
Number of stores
12 stores 25 stores
Web traffic Increase by 50% year on year

YouTube Channel
number of registered users 500 100,000
Support business through a Adopted as METI's New Operating profit of 100 million
subscription model Collaboration Support Project yen
 Forward-Looking Statement
This document contains “forward-looking statements” regarding the intent, belief or current expectations of us
and our management with respect to our future financial condition and results of operations. In many cases,
but not all, these statements contain words such as “forecast,” “believe,” “estimate,” “expect,” “intend,” “may,”
“plan,” “probability,” “risk,” “project,” “should,” “seek,” “target,” “will” and similar expressions. Such forward-
looking statements are not guarantees of future performance and involve risks and uncertainties, and actual
results may differ from those expressed in or implied by such forward-looking statements contained or deemed
to be contained herein. Given the risks and uncertainties, you should not place undue reliance on forward-
looking statements, which speak only as of the date of this document. We undertake no obligation to update or
revise any forward-looking statements.



Contact:

Administration Department
Lib Work Co., Ltd.
TEL: +81-968-44-3559
https://www.libwork.co.jp/