FY 2021 Q3 Financial Results

FY 2021 Q3 Financial Results

Third Quarter of the Fiscal Year ending December 31, 2021

Kaizen Platform Inc. Securities Code 4170

November 12, 2021

KAIZEN the World

Friction-less work lifestyle of the 21st century, making the world a better place

Contents

• Company and Service Overview

• FY 2021 Q3 Business Results

• Revision of Full-year Earnings Forecasts and Mid to Long-Term Management Policies

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Company Overview

Company ： Kaizen Platform Inc.

Incorporation Date ： April 2017（US Entity KAIZEN platform Inc. created on March 2013 *)

Addrress ： Minato-ku, Tokyo

Employees ： 115 （As of September 2021）

Kaizen Platform Inc. and Kaizen Platform USA, Inc. ： 69

D-ZERO Inc.：46

Capital ： JPY 1,722,075（As of September 2021）

Board of Directors ： Kenji Sudo	CEO
Takuya Watabe	Director
Keita Umimoto	Director
Masanori Sugiyama	Outside Director
Tomohide Matsuyama	Outside Director（NTT Advertising Inc., Director）
Kaoru Oda	Audit & Supervisory
Shigeo Goho	Audit & Supervisory
Eriko Hayashi	Audit & Supervisory

Subsidiaries ： D-ZERO Inc. ／ Kaizen Platform USA,Inc. ／

DX Catalyst K.K.

• Previous company KAIZEN platform Inc. was the absorbed company and Kaizen Platform USA, Inc. became the stock company surviving an absorption-the merger. At that time, the investors of KAIZEN platform Inc. was given stock of our current company (Kaizen Platform Inc.) as part of a triangular merger. The Japanese business was transferred from Kaizen USA, Inc. to our current company Kaizen Platform Inc in July 2017.

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Founding Purpose

Gathering talent from around the world through the cloud to enable

DX for customers

and increasing productivity with our SaaS platform

Market Environment

• The retirement rate at large Corporations in Japan is 2.4%※
• • Difficult to change the human resource portfolio and to train experts
• A huge outsourcing market
  already exists for IT services such as contract development

DX creates huge

outsourcing market

The Past Situation

• Full Time Employment with regulation regarding job termination makes it difficult to dismiss employees.
  The trend was to hire contract employees to maintain elasticity
• Office Facetime was required along with unproductive meetings, decreasing employee productivity

Outsourcing

was not productive

in the past

Founding Goals

• Provide remote work by outsourcing through our SaaS platform to create work for our digital professionals
• Avoid one-off project matching and contract professionals across multiple complex projects simultaneously

Provide DX BPO service by combining SaaS with highly talented digitalprofessionals

• Source Nikkei「Smartwork Management」Research 2018

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4

Our Business Opportunity in DX

"UX leads to DX" is a new competitive strategy in the digital age,

but large companies are lagging in DX investments due to the maintenance of existing systems

and this GAP is our business opportunity

UX that leads to DX	80% of system investments	Business Opportunity =
are for legacy system	The gap between Business and IT
is the strategy of the next era
maintenance	Department Needs

With €1 of investment in design, increase sales profit by €4, sales by €20, and export value by €5

+€4

Operating income

€1 +€20

DesignSales investment

+€5

Export Value

4x Return

※Source：British Design Council "Design Delivers for Business Report 2012"

Due to the shortage of engineers, about 80% of IT resources are devoted to maintenance of the current IT systems.

Value - Up

（New）

21.2%

Running the Business

（Maintenance/Operation)

78.8%

80% IT Budget

for maintenance

Value ・Up ：IT investment to create new added value

Run・The・BUsiness：Conservative costs for maintenance/ operation of exsisting system

The biggest problem with DX in large companies is the friction between business and IT departments.

Demand from

Business

GAP

IT

Resources Time

Potential loss of

JPY 12 trillion

conversion doesn't progress after 2025, there is a possibility that Japan as a whole will lose JPY 12 trillion every year. ※Source：Ministry of Economy, Trade and Industry「DX Report」

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