Slide 1: Business Overview and Financial Results Briefing for FY Ended December 2023
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Cybozu, Inc. Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Tuesday, Feb. 27, 2024
Slide 2: Company Overview
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Company Overview Cybozu, Inc. Develop, sell, and operate groupware platforms/Methods Consulting Business Description Business Representative Director and Yoshihisa Aono President Established August 1997 Head Off
Slide 3: Company Vision
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Company Vision * Will be submitted to the 27th Annual Shareholders Meeting on March 30, 2024 Our Reason for Existing Build a society brimming with teamwork Purpose Culture 1. Share a common vision Culture Create
Slide 4: Information Sharing and Teamwork
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Information Sharing and Teamwork Organization where Organization where information information is siloed is shared openly on one platform Data, information, and communication is separated by Information is share
Slide 5: Cybozu’s Cloud Services
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Cybozu’s Cloud Services As at end of December 2023 Groupware Business app development platform Groupware for SMEs Platform for implementing no-code/low- Installed customer base: code business solutions 78,600 co
Slide 6: Achieving an Insourced Digital Transformation (DX) with No-code
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Achieving an Insourced Digital Transformation (DX) with No-code and the Power of a Supportive Ecosystem Successfully Plug-ins insourced DX Integration with third- No-code party services Reskilling Companion-runn
Slide 7: Company-wide Slogan for 23-2025
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Company-wide Slogan for 2023-2025 25BT “2025 and go Beyond with Trust” We will focus on reaching our next big milestone in 2025, and work on long-term initiatives that look to the future beyond 2025 while placin
Slide 8: FY2023 Financial Results
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 FY2023 Financial Results 8
Slide 9: Consolidated Sales and Operating Profit
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Consolidated Sales and Operating Profit 30,000 Operating 4,000profit Sales (Million JPY) (Million JPY) Fiscal year ended December 31, 2023 3,500 25,000 Consolidated sales: JPY 25,432 million +15.2% YoY 3,000 Con
Slide 10: Consolidated Financial Results
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Consolidated Financial Results Consolidated Financials FY2022 FY2023 FY2024 (Unit: Million JPY) (Actuals) (Actuals) (Projection) Sales 22,067 25,432 28,730 Operating profit 611 3,394 3,097 Ordinary profit 987 3,
Slide 11: Detailed Consolidated Financial Results
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Detailed Consolidated Financial Results Consolidated FY2022 FY2023 PL (Actuals) (Actuals) (Unit: Million JPY) ＋15.2% Consolidated sales YoY Sales 22,067 25,432 + JPY 3,364 million YoY Cost of sales 1,951 2,364 L
Slide 12: Results of Advertising Investment
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Results of Advertising Investment Shift from the Increasing Product Awareness phase to the Deepening Product Understanding phase Trends in Advertising Expenses, Kintone Awareness, and Percentage of Sales that Ad
Slide 13: Financials
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Financials Consolidated BS FY2022 FY202 YoY (Unit: Million JPY) (Actuals) (Actuals) Assets 15,907 19,248 3,340 - Cash & deposits 5,124 6,492 1,367 Liabilities 11,277 7,995 -3,282 Borrowings repaid in full from p
Slide 14: Business Details and Future Challenges
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Business Details and Future Challenges 14
Slide 15: Consolidated Sales by Product: Kintone Sales Break the JPY 13 Billion Mark
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Consolidated Sales by Product Kintone Sales Break the JPY 13 Billion Mark (Million JPY) 14,000 12,000 10,000 Kintone consolidated sales in 2023 8,000 JPY 13,012 million 6,000 +24.9% YoY 4,000 2,000 0 2011 2012 2
Slide 16: Our Users
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Our Users As at end of December 2023 Departments stakeholders driving User companies Customer breakdown by sector Kintone deployment belong to 32,800 companies 93% of users in charge of deploying Kintone are NOT
Slide 17: Consolidated Sales by Product
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Consolidated Sales by Product (Million JPY) ■Cloud Cloud 6,000 ■On-premises, etc. FY2023 5,000 ＋4.4% JPY 5,312 million YoY 4,000 3,000 (Million JPY) ■Cloud 800 ■On-premises, etc. 2,000 1,000 600 FY2023 ＋16.0% 0
Slide 18: Consolidated Sales (Cloud/On-premises)
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Consolidated Sales (Cloud/On-premises) Solid Growth in Cloud Sales 30,000 (Million JPY) ■Cloud ■On-premises, etc. 25,000 2023 consolidated Cloud sales: 20,000 JPY 22,283 million +19.5% YoY 15,000 Cloud sales as
Slide 19: SaaS Management Indicators
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 1st Ever Disclosure of SaaS Stats SaaS Management Indicators As at end of December 2023 ARR (1) ARR (2) MRR (3) Subscription sales (Million JPY) Growth Rate(YoY) (Million JPY) percentage (4) Consolidated 24,018
Slide 20: SaaS Management Indicators｜Non-Consolidated Sales by Product
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 1st Ever Disclosure of SaaS Stats SaaS Management Indicators｜Non-Consolidated Sales by Product As at end of December 2023 ARR(2) MRR(3) Subscription Gross Revenue ARPA(7) (JPY) ARR (1) Net Revenue Growth Rate (M
Slide 21: Striving to create a Platform for More Diverse Customers
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Striving to create a Platform that Allows More Diverse Customers to Handle Diverse Information Digitization of specific Information sharing departments throughout the organization Data is fragmented by departmen
Slide 22: User DX Case Study｜TAIYO NIPPON SANSO Corporation
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Private Company User DX Case Study｜TAIYO NIPPON SANSO Corporation The company started deploying Kintone in 2017. Now their Kintone platform has grown to span 53 group companies with approx. 8,000 employees who a
Slide 23: User DX Case Study｜Marubeni-Itochu Steel Inc.
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Private Company User DX Case Study｜Marubeni-Itochu Steel Inc. Using Kintone as its organization-wide information sharing platform for more than 1,500 people, across 100 group companies in Japan and overseas Digi
Slide 24: User DX Case Study｜Kitakyushu City, Fukuoka Prefecture
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Public Sector User DX Case Study Kitakyushu City, Fukuoka Prefecture Measures to install Kintone throughout the entire organization All 8,000 staff members use Kintone and are working to digitalize the entire ci
Slide 25: Cybozu NEXT
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Striving to create a Platform that Allows More Diverse Customers to Handle Diverse Information Expand the range of operations and Eliminate barriers between departments information that can be handled and organi
Slide 26: Cybozu NEXT: Product Development
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Striving to Create a Platform that Allows More Diverse Customers to Handle Diverse Information □ Product development Kintone Mail Sharing Option First release is scheduled in 2024 Cybozu NEXT Expand the range of
Slide 27: Striving to create a Platform: Pricing/Services
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Striving to create a Platform that Allows More Diverse Customers to Handle Diverse Information Scheduled to go on sale in summer 2024 □ Pricing/Services Kintone Company-wide Kintone Company-wide Deployment Licen
Slide 28: Ecosystem Expansion
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Ecosystem Expansion 28
Slide 29: Expansive Cybozu Ecosystem
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Expansive Cybozu Ecosystem Cybozu has expansive ecosystems centered around official partners Regional Increasing official partners OEM Partner financial New ecosystem expansion 2 institutions u official pa Suppo
Slide 30: Expanding the Partner Business
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Increasing official partners Expanding the Partner Business As at end of December 2023 Partner sales No. of partners Registered companies: more than 650 No. of companies preparing to register as official partner
Slide 31: Stream of AI-integrations Coming On Line
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Stream of AI-integrations Coming On Line A series of AI-integrated services available with Kintone have been released since 2023 Kore.ai Kinchabo Works ID Co.,Ltd. NDI Solutions, Ltd. Alntone+ Associate AIHub fo
Slide 32: Support regional ICT initiatives: Regional Bank Partnerships
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Support regional ICT initiatives No. of Partnerships/Results Achieved Rose in 6th Year Since Partnerships with Regional Banks Started As at end of December 2023 Helping regional SMEs achieve DX by combining regi
Slide 33: Semi-custom solutions
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 New ecosystem expansion 1 Users Have Become Partners through Joint Development, DX Savvy People Development Semi-custom solutions Joint Development Case A wide variety of industries and business types, not just
Slide 34: OEM Partnership with Ricoh Co., Ltd.
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 New ecosystem expansion 2 OEM Partnership with Ricoh Co., Ltd. Accelerating Kintone deployment through new methods of service provision and sales RICOH kintone plus Features of RICOH Kintone Plus Installed custo
Slide 35: Enhancing DX Quality Thru User Communities
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Active communication in user communities Enhancing DX Quality Thru User Communities Kintone user community for enterprises How to develop DX savvy people using no-code tools Kintone Enterprise Circle Presented a
Slide 36: Global Expansion
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Global Expansion Sales grew mainly to Japanese companies As at end of December 2023 after COVID restrictions were lifted. ＋6.2% Number of contracts in Taiwan jumped by YoY 30% YoY. 70% of the contracts are with
Slide 37: Other Activities
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Other Activities 37
Slide 38: Efforts to Improve the Quality of Cloud Infrastructure
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Efforts to Improve the Quality of Cloud Infrastructure ✓ Highly reliable in-house Granular account Security protection initiatives development ✓ Established the Cy-SIRT* team dedicated to management functionalit
Slide 39: Security Assessments by Third-party Organizations
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Security Assessments by Third-party Organizations NEW Received SOC2 Type1 Security Report We received a SOC2 Type1 Report in December 2023 for Kintone as Cloud service provided to overseas customers. External au
Slide 40: Third-party Commendations (Customer Support/User Experience)
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Third-party Commendations (Customer Support/User Experience) HDI Rating Benchmarks Nikkei Computer, March 7, 2024 edition Per response record/monitoring evaluation Partner Satisfaction Survey 2024 (telephone) Cl
Slide 41: Human Resources and Organization Updates
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Human Resources and Organization Updates Headcount and turnover rate A NEW website opened in late February 2024 Human Capital Management of Cybozu 1100人 14% 1000人 Our owned media that delivers information such 9
Slide 42: Corporate Governance Update
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Corporate Governance Update Maintaining proper governance by selecting candidates for the Board of Directors from inside and outside of the company Board Composition (Candidates for FY2024) Outside Directors Oth
Slide 43: Locations in 10 Cities in Japan and 9 Cities Overseas
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Locations in 10 Cities in Japan and 9 Cities Overseas Offices that opened, relocated, or where the floor space was expanded in 2023 or later As at end of December 2023 Offices in Japan Overseas offices Shanghai
Slide 44: Our IT Support for Disasters in Japan and Overseas
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Our IT Support for Disasters in Japan and Overseas Provide free licenses and IT support for disaster recovery Published training textbook for disaster volunteer centers Support disaster affected areas and on-sit
Slide 45: Future Plans
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Future Plans 45
Slide 46: Company-wide Slogan for 23-2025
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Company-wide Slogan for 2023-2025 25BT “2025 and go Beyond with Trust” We will focus on reaching our next big milestone in 2025, and work on long-term initiatives that look to the future beyond 2025 while placin
Slide 47: Striving to create a Platform for More Diverse Customers
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Striving to create a Platform that Allows More Diverse Customers to Handle Diverse Information Digitization of specific Information sharing departments throughout the organization Data is fragmented by departmen
Slide 48: Aggressive Investment to Further Expand Cloud Business
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Aggressive Investment to Further Expand Cloud Business Sales (Million JPY) Consolidated Sales and Operating Income Operating profit (Million JPY) 30,000 3,500 3,000 25,000 2,500 20,000 Consolidated sales Non- 2,
Slide 49: Build a society brimming with teamwork
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Build a society brimming with teamwork
Slide 50: Appendix
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 Appendix By Product (non-consolidated) - Cloud services user companies - Gross Revenue Churn Rate - Net Revenue Retention Rate - ARPA: (Average Revenue per Account)/per subdomain
Slide 51: SaaS Management Indicators: Kintone
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 * As of the end of SaaS Management Indicators： December of each year (1) (firms) No. of Cloud Services User Companies Gross Revenue Churn Rate 2.00% 1.67% 40,000 32,800 27,500 30,000 23,000 1.50% 1.27% 1.24% 1.2
Slide 52: SaaS Management Indicators: Cybozu Office
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 * As of the end of SaaS Management Indicators： December of each year (1) (firms) No. of Cloud Services User Companies Gross Revenue Churn Rate 30,000 24,700 1.20% 1.00% 22,000 23,100 0.92% 0.94% 0.91% 25,000 20,
Slide 53: SaaS Management Indicators: Garoon
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 SaaS Management Indicators： * As of the end of December of each year (1) (firms) No. of Cloud Services User Companies Gross Revenue Churn Rate 3,000 2,600 0.80% 0.66% 2,300 2,500 2,000 0.55% 0.52% 0.60% 0.51% 0.
Slide 54: SaaS Management Indicators: Mailwise
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023 SaaS Management Indicators： * As of the end of December of each year (1) (firms No. of Cloud Services User Companies Gross Revenue Churn Rate )10,000 8,300 1.35% 7,500 1.50% 1.20% 1.28% 8,000 6,900 1.17% 1.17% 6
Slide 55: Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023
Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023