Business Brain Showaota Inc. · TSE:9658
Business Brain Showaota — FY2022 Earnings Presentation
38 slides from Business Brain Showaota's earnings presentation, May 19, 2023
Slide 1: Financial Results Briefing for the fiscal year ended March 2023
Financial Results Briefing for the fiscal year ended March 2023 Securities code: 9658 May 19, 2023 Business Brain Showa-Ota Inc. © 2023 Business Brain Showa-Ota Inc.
Slide 2: Medium-term Management Plan 2021-2023 Progress Report
Digital and analog, HR and technology, cloud and on-site Developing a hybrid near future with customers Business Brain Showa-Ota Medium-term Management Plan 2021-2023 Progress Report © 2023 Business Brain Showa-Ota Inc.
Slide 3: Goal 2030 (repost)
Goal 2030 (repost) Goals and Values of the BBS Group Back Office Comprehensive Supporter Become a new management partner Sustainability Management / Strengthening human resources Sales Profit Sales Profit 40 billion yen 3.4 billion yen 100 billion yen 10 billion yen *Maintain 70% of consulting/SI bu
Slide 4: BBS 2023 Progress Summary
BBS 2023 Progress Summary Business Progress Company-wide strategy Business Strategy Corporate Strategy Strengthen group synergies “R” CN2 strategy Revenue Orders received among Royal Customer sales group companies Strengthen Human 100 8,508 Resources million yen Hands-on internships 70 mid-career hi
Slide 5: Business Progress
Business Progress Revenue 100,000 Operating profit Unit: millions of yen Unit: millions of yen 10,000 40,000 37,063 3,400 3,208 32,346 29,159 2,745 2,200 FY2020 FY2021 FY2022 (now) FY2023 FY2030 FY2020 FY2021 FY2022 (now) FY2023 FY2030 In the second year of the medium-term management plan, and for t
Slide 6: GSX Made Affiliated Company
GSX Made Affiliated Company Back Office Comprehensive Supporter Management Strategy BBS Group Information System Cybersecurity Accounting Legal Independent operation Focused management Affairs resources HR Able to make prompt management Focused management decisions and take action resources in the G
Slide 7: Capital Policy - Measures to Achieve ROE Targets
Capital Policy - Measures to Achieve ROE Targets ROE for the current fiscal year was 13% (target not achieved). Will continue to implement three measures to achieve the target of 14%. Improve dividend payout Acquire and eliminate Strengthen profitability ratio and dividend yield treasury stock Divid
Slide 8: Earnings Outlook for the Fiscal Year Ended March 31, 2024
Earnings Outlook for the Fiscal Year Ended March 31, 2024 Revenue Operating profit Unit: millions of yen Unit: millions of yen 37,063 3,208 GSX performance GSX performance adjustment 34,000 adjustment 2,600 -5,315 -699 Result of GSX Result of GSX equity method equity method 31,748 2,509 Year ended M
Slide 9: Strengthen Human Resources
Strengthen Human Resources Hire new grads Hire experienced personnel Secure human resources by expanding work Expand hiring of mid-career human resources experience internships (PM, SE, BPO, sales) ・Work experience as a business accounting consultant ・52 new hires in the previous year ・Work experien
Slide 10: Strengthen M&As/Alliances
Strengthen M&As/Alliances Exponential growth Increase corporate value Achieving Goal 2030 Appeal to corporate value Aim for discontinuous growth to achieve our In addition to sales and profits, increase our target of 100 billion in sales in FY2030 value as a company and increase the trust of our sta
Slide 11: Sustainability Initiatives - TCFD Recommendations
Sustainability Initiatives - TCFD Recommendations The BBS Group complies with the Task Force on Climate-related Financial Disclosures (TCFD) and discloses its governance, strategy, risk management and metrics and targets. Goal2030 ~BBS aims for 2030~ Governance Strategy [Sustainability and strengthe
Slide 12: Initiatives for TCFD Recommendations
Initiatives for TCFD Recommendations BBS Group's climate-related risks and opportunities and their financial impact Type of risk or opportunity Description of risk and opportunity [Strengthening of environmental laws and administrative environmental policies] Transitory Policy/legislation Increase i
Slide 13: Topics
Topics © 2023 Business Brain Showa-Ota Inc.
Slide 14: Certifications
Certifications Japan Sports Agency 2023 Certified Health and Productivity Sports Yell Company 2023 Management Outstanding Organization BBS has been certified as a company that actively This is the second year in a row that BBS has been certified. engages in sports to promote employee health. In addi
Slide 15: Financial Highlights
Financial Highlights Hitoshi Uehara Senior Executive Officer, General Manager, Administration Division © 2023 Business Brain Showa-Ota Inc.
Slide 16: Revision of the Statement of Accounts
Revision of the Statement of Accounts (announced May 18, 2023) 1. Reason and details of the revision Regarding the "Statement of Accounts for the Fiscal Year Ended March 31, 2023 [IFRS] (Consolidated)" released on April 28, 2023, BBS decided on May 10, 2023 to sell shares of its subsidiary, as annou
Slide 17: Consolidated Operating Results
[Financial Highlights] Consolidated Operating Results (millions of yen) Year ended March Year ended March Change from Earnings * Ratio to 31, 2022 31, 2023 previous year forecast expected value Orders received 33,647 42,171 25.3% - - Revenue 32,346 37,063 14.6% 36,000 103.0％ Operating profit 2,745 3
Slide 18: Orders Received, Backlog of Orders, and Revenue
[Financial Highlights] Orders Received, Backlog of Orders, and Revenue (millions of yen) Orders Received, Backlog of Orders, and Revenue Orders 42,171 ・ Orders received grew 25.3% yoy (start of consulting and system developing +20.1%, BPO +41.6%) Revenue ・ The backlog of orders also increased, reach
Slide 19: Operating Profit
[Financial Highlights] Operating Profit 8.7% Continued growth in profits Operating 8.5% Operating profit margin profit 7.5% 7.5% Fiscal year ended March 31, 2022 2,745 (first half) 6.9% 7.0% Target operating profit margin Gross profit increase 997 3,208 Increase in SG&A expenses (- indicates an incr
Slide 20: Trend in Quarterly Operating Income
[Financial Highlights] Trend in Quarterly Operating Income (millions of yen) Increase in IFRS adjustment amount -280 Primarily stock compensation -184 Employee benefits -115 1,044 933 Cost of quality trouble -148 742 488 第1四半期 1Q 第2四半期 2Q 第3四半期 3Q 第4四半期 4Q © 2023 Business Brain Showa-Ota Inc. 20
Slide 21: Return on Equity (ROE)
[Financial Highlights] Return on Equity (ROE) Target not achieved Net profit margin on sales revenue (5.5%→5.0%) Despite an increase in revenue, the operating Target return profit margin improved by 0.2 percentage on equity 14.9% (ROE) points, but the profit margin attributable to 15.7% 15.6% 14% ow
Slide 22: Dividends
[Earnings Forecast] Dividends Interim dividend of 22 yen. Based on the basic policy of a 30% dividend payout ratio, the year-end dividend will be 26 yen, with total annual dividend expected to be 48 yen. Dividend 38.0% 37.9% 30.9% 30.3% 30.9% 27.0% 27.3% 22.8% 23.3% 23.3% Dividend 18.0% payout ratio
Slide 23: Income (Loss) by Segment
[Financial Highlights] Income (Loss) by Segment Significant increase in sales and profit in the consulting and system development businesses Consulting and system development business Management services (BPO) business Revenue Revenue ■YoY: 4,520 million yen (+18%) ■ YoY: 188 million yen (+2%) 29,20
Slide 24: Consulting and System Development Business Details
[Financial Highlights] Consulting and System Development Business Details (millions of yen) Revenue Segment income Year ended Year ended YoY Increase Year ended Year ended YoY Increase March 31, 2022 March 31, 2023 (decrease) March 31, 2022 March 31, 2023 (decrease) Accounting system consulting and
Slide 25: Management Services (BPO) Business Details
[Financial Highlights] Management Services (BPO) Business Details (millions of yen) Revenue Segment income Year ended Year ended YoY Increase Year ended Year ended YoY Increase March 31, 2022 March 31, 2023 (decrease) March 31, 2022 March 31, 2023 (decrease) HR and payroll related outsourcing 3,243
Slide 26: Consolidated B/S [Assets] (IFRS)
[Financial Highlights] Consolidated B/S [Assets] (IFRS) Assets (millions of yen) 〔19,460〕 〔20,651〕 〔22,786〕 〔28,296〕 〔30,393〕 Other non-current assets 1,951 1,773 2,654 Deferred tax asset 2,495 3,074 Other financial assets 1,754 3,726 1,521 2,367 Right-of-use assets 1,593 1,779 1,335 1,698 1,899 2,2
Slide 27: Consolidated B/S [Liabilities and Equity] (IFRS)
[Financial Highlights] Consolidated B/S [Liabilities and Equity] (IFRS) Liabilities and Equity (millions of yen) 〔19,460〕 〔20,651〕 〔22,786〕 〔28,296〕 〔30,393〕 Lease liability (floating) 2,379 2,328 Trade and other payables 5,384 Contract liability 1,778 4,484 Other current liabilities 1,580 2,408 1,8
Slide 28: Earnings Forecast
Earnings Forecast © 2023 Business Brain Showa-Ota Inc.
Slide 29: Consolidated Operating Results
[Earnings Forecast] Consolidated Operating Results Lower sales and income expected due to group restructuring. (millions of yen) Fiscal year ended March Fiscal year ending March 2024 (forecast) Difference YoY change 2023 (actual) Orders received 42,171 35,500 -6,671 -15.8% Revenue 37,063 34,000 -3,0
Slide 30: Consolidated Operating Results (equity method)
[Earnings Forecast] Consolidated Operating Results When the equity method is applied to GSX in the fiscal year ended March 31, 2023. (millions of yen) Fiscal year ended March Fiscal year ending March 2024 (forecast) Difference YoY change 2023 (actual) Orders received 35,965 35,500 -465 -1.3% Revenue
Slide 31: Outlook for orders received and revenue
[Earnings Forecast] 1. Outlook for orders received and revenue (*Assuming that the equity method is applied to GSX in the fiscal year ended March 31, 2023) Consulting and system development business Management services (BPO) business Orders Orders Revenue Revenue received received 26,600 25,713 24,3
Slide 32: Thank you for joining us today.
Thank you for joining us today. NOTE The earnings forecasts in this document are based on managementʼs assumptions and beliefs in light of the information available to it at the time of writing. Actual results may differ from these forecasts due to various factors and risks, and no assurances or gua
Slide 33: APPENDIX
APPENDIX © 2023 Business Brain Showa-Ota Inc.
Slide 34: Expansion of Introduction of FBS Fund Wraps and its Ripple Effect
Expansion of Introduction of FBS Fund Wraps and its Ripple Effect - Expand sales channels and create new solutions - Increased industry recognition and expectations for BBS due to expansion of sales channels → Creation of more opportunities for proposals Promote collaboration/partnership for new sol
Slide 35: BSC Corporate Tools to Support Promotion of Digital Transformation
BSC Corporate Tools to Support Promotion of Digital Transformation While the demand for paperless systems to promote digital transformation in the corporate world is growing stronger, there are an increasing number of cases where companies are introducing additional systems that can be easily integr
Slide 36: Company Profile
Company Profile Name Name in English Business Brain Showa-Ota Inc. Headquarters 15F Hibiya Fort Tower, 1-1-1 Nishishimbashi, Minato-ku, Tokyo Headquarters, Osaka Branch, Nagoya Branch, Shizuoka Branch, Outsourcing Services Offices Division (Shizuoka Office), Global Shared Services Division (Kumamoto
Slide 37: Company Profile BBS Group Network
Company Profile BBS Group Network joyworks inc. Provides system development, application development, web GLOBAL SECURITY EXPERTS Inc. production, infrastructure construction, etc. Provides information security consulting and solutions PLM Japan INC. Provides PLM (product lifecycle management) solut
Slide 38: END
END © 2023 Business Brain Showa-Ota Inc.
Business Brain Showa-Ota — FY2022 Earnings Presentation on 6ix