Slide 1: Financial Results Presentation for the Fiscal Year Ended March 31, 2025
Financial Results Presentation for the Fiscal Year Ended March 31, 2025 Global Security Experts, Inc., Securities Code: 4417 April 2025
Slide 2: Agenda
Ag e n d a 1 FYE3/2025 Performance Highlights P3 2 Growth Strategy P15 3 FYE3/2026 Consolidated Performance Forecast P26 4 Shareholder Return P30 5 Management Topics P34 6 ESG Initiatives P43 7 Appendix P45 © GLOBAL SECURITY EXPERTS 2
Slide 3: FYE3/2025 Performance Highlights
FYE3/2025 Performance Highlights
Slide 4: Full Year Summary
F u l l Ye a r S u m m a r y Business performance also grew steadily for FYE3/2025 Operating income Consolidated net sales Consolidated margin operating income YoY YoY YoY +25.7% +45.1% ＋2.5pt 8,801.64 1,615.03 million yen million yen 18.3 % Record high values for both net sales and profit Achieved
Slide 5: Full-Year Performance Trends
F u l l - Ye a r P e r f o r m a n c e Tr e n d s The top line expanded in a stable manner and there was rapid growth of profit that exceeded this Achieved management with a highly profitable structure Net sales trend (Millions of yen) Operating income trend (Millions of yen) Operating income margin
Slide 6: Number of Customers & ARPU Trends
N u m b e r o f C u s t o m e r s & AR P U Tr e n d s ARPU increased for new customers because of the provision of relevant services due to emergency response Both the number of customers and ARPU increased for existing customers because of the strong demand for security training and the provision o
Slide 7: Consolidated Net Sales & Gross Profit Composition
Consolidated Net Sales & Gross Profit Composition The composition ratio for FYE3/2025 is as planned These figures consist of the security training business and security personnel business that are growing rapidly, based on stable profit from the cybersecurity business Net sales composition ratio Gro
Slide 8: Net Sales & Gross Profit by Business YoY
N e t S a l e s & G r o s s P r o f i t b y B u s i n e s s Yo Y ( F u l l - Ye a r C u m u l a t i ve ) Both net sales and gross profit increased The security training business and security personnel business are making great progress Net sales (Millions of yen) Gross profit (Millions of yen) Cyber
Slide 9: Transition to Consolidated Accounting
Tr a n s i t i o n t o C o n s o l i d a t e d Ac c o u n t i n g Spin-off of the security personnel SES business on April 1, 2024 into CyberSTAR, a consolidated subsidiary, marking transition to consolidating accounting from the fiscal year ending March 31, 2025 Reflects the profit/loss of BroadBan
Slide 10: Impact of Equity-method Affiliates on GSX Performance
I m p a c t o f E q u i t y - m e t h o d Af f i l i a t e s o n G S X P e r f o r m a n c e Investment gains and losses of entities accounted for using the equity method posted a loss for the cumulative full year total, which slightly lowered the growth rate of ordinary income against the previous
Slide 11: Consolidated Profit and Loss (Full-Year Cumulative)
C o n s o l i d a t e d P r o f i t a n d L o s s ( F u l l - Ye a r C u m u l a t i ve ) Continued high growth in both net sales and profit, with operating income margin of 18.3%, up 2.5 percentage points year on year FYE3/2024 FYE3/2025 YoY change YoY change (Millions of yen) Results Results Chang
Slide 12: Operating Income Change Analysis (Cumulative)
O p e r a t i n g I n c o m e C h a n g e An a l y s i s ( C u m u l a t i ve ) Operating income significantly increased due to the company-wide revenue increase even after headquarters relocation expenses and increased costs due to expanding operations (Millions of yen) -239 53 -48 -51 787 Investme
Slide 13: Reference Material: Quarterly Trends
R e f e r e n c e M a t e r i a l : N e t S a l e s a n d O p e r a t i n g I n c o m e Q u a r t e r l y Tr e n d s Net sales significantly grew by +27.5% and operating income by +74.0% year on year The operating income margin remained at a high level while recording year-end bonuses for employees
Slide 14: Consolidated Balance Sheet
Consolidated Balance Sheet YoY YoY (Millions of yen) FYE3/2024 FYE3/2025 Change Change (%) Current assets 3,713 4,799 +1,086 +29.3% Cash and deposits 1,233 1,385 +152 +12.3% Accounts receivable - trade, and 1,486 2,149 +662 +44.6% contract assets Other 993 1,264 +271 +27.3% Non-current assets 2,823
Slide 15: Growth Strategy
GSX GLOBAL SECURITY EXPERTS Growth Strategy
Slide 16: The GSX Group's Business Model
Th e G S X G r o u p ’s B u s i n e s s M o d e l segments Semi-large and medium- Companies requiring Target IT companies and system sized companies, SMEs integrators security personnel (End users) (end users/IT companies/etc.) Amid a shortage of Full line-up of security Using security training secu
Slide 17: Business Lines: Cybersecurity Business
Business Lines: Cybersecurity Business One-stop cybersecurity support for semi-large and medium-sized companies and SMEs Targeted Email Training Services Consulting Services (Management Consulting) Visualizing Building issues Planning systems Over Main services No. 1 share when including 11,000 Info
Slide 18: Accelerating Security Needs of Semi-Large and Medium-Sized Companies and SMEs
Ac c e l e r a t i n g S e c u r i t y N e e d s o f S e m i - L a r g e a n d M e d i u m - S i z e d C o m p a n i e s , and SMEs Frequent Security Incidents Social Pressure Acceleration of DX Organizations that have experienced Pressure for security measures from Combining DX with security measur
Slide 19: Business Lines: Security Training Business
Business Lines: Security Training Business Providing training in the security domain for IT companies and system integrators to help them add value to their IT personnel • Improving security standards for engineers • Increasing the number of advanced security IT companies and personnel system integr
Slide 20: Accelerating Security Training Needs of IT Companies and System Integrators
Ac c e l e r a t i n g S e c u r i t y Tr a i n i n g N e e d s o f I T C o m p a n i e s a n d S ys t e m Integrators GSX Training Course Enrollment (Single Year) Security becomes one quality of IT 11,294 System Infrastructure Cloud services building development and operation 5,958 Adding value to
Slide 21: Business Lines: Security Personnel Business
Business Lines: Security Personnel Business Meet the security personnel needs of all companies, regardless of size As a security training company GSX, establish an original business model that provides benefits to both IT companies that have IT personnel and customers that need security personnel IT
Slide 22: Accelerating Needs for Security Personnel SES
Ac c e l e r a t i n g N e e d s f o r S e c u r i t y P e r s o n n e l S E S Shortage of Cybersecurity Personnel in Japan 137 Although the number of security personnel has 1,800 Sales 140 increased, the shortfall has nearly doubled, and the Gross profit increase in personnel has not been able to c
Slide 23: GSX Growth Far Outpaces Security Market Growth
GSX Growth Far Outpaces Security Market Growth Net sales growth rate (CAGR) of 38%, well above the market growth rate of 7.9% FY2024 (forecast) Reasons for GSX’s High Growth and Future Prospects Network 789.5 billion yen Dramatic increase in security needs among security FY2018 business Reason 1 sem
Slide 24: Capital and Business Alliances With 25% Annual Sales Growth
C a p i t a l a n d B u s i n e s s Al l i a n c e s W i t h 2 5 % An n u a l S a l e s G r o w t h a n d Confidence in Further Growth Alliance strategy to achieve 25% annual sales growth and ensure further growth as stated in the medium-term management plan Capital and business alliances with strat
Slide 25: Business Strategies
Business Strategies Basic strategy as the foundation for 25% annual sales growth and alliance strategy and fund formation to ensure further growth Alliance Strategy Fund Formation LP Nippon Cyber Expanding Expansion Security Fund 1 Growth sales Security Funding Investment Limited into new areas acce
Slide 26: FYE3/2026 Consolidated Performance Forecast
FYE3/2026 Consolidated Performance Forecast
Slide 27: FYE3/2026 Basic Policy and Consolidated Performance Forecast
FYE3/2026 Basic Policy and Consolidated Performance Forecast Continue to expand net sales and strengthen the management base Basic Policy to support medium- to long-term growth by placing importance on improving profit margins Aim for consolidated net sales of +25% YoY and an operating income margin
Slide 28: Business Lines
Business Lines From FYE3/2025, we have clearly established three target segments—semi-large and medium-sized companies and SMEs, IT companies and system integrators, and companies requiring security personnel—organizing these as business domains Semi-large and Target IT companies and Companies requi
Slide 29: FYE3/2026 Forecast of Consolidated Net Sales Composition
FYE3/2026 Forecast of Consolidated Net Sales Composition The cybersecurity business is experiencing stable growth while the security training business and security personnel business are making progress All businesses are expected to increase their revenue compared to the previous year Security Trai
Slide 30: Shareholder Return
GSX GLOBAL SECURITY EXPERTS Shareholder Return
Slide 31: Information About Dividends
I n f o r m a t i o n Ab o u t D i vi d e n d s The Company continues to pay dividends while improving the dividend payout ratio each period Started a new interim dividend for FYE3/2025. The annual dividend payout ratio was increased to 31% 41.71 Fiscal year- end 26.21 20.86 14.00 Interim Dividends
Slide 32: Shareholder Benefit
Shareholder Benefit GSX started the shareholder benefit program from FYE3/2025 to thank shareholders for their ongoing support and to increase the attractiveness of investing in the Company’s shares Benefits Number of shares held Benefits QUO Card 100 shares 2,000 yen value or more ➢ Eligible shareh
Slide 33: Stock Split Implementation
Stock Split Implementation A stock split in the ratio of 1:2 will be implemented with the effective date being June 1, 2025 Establishing an Further expanding the environment for easy Improving liquidity investor base investment 7,500 November 01, 2022 1:2 stock split 6,000 4,500 4417 GSX stock price
Slide 34: Management Topics
GSX GLOBAL SECURITY EXPERTS Management Topics
Slide 35: FYE3/2025 Topics
F Y E 3 / 2 0 2 5 To p i c s Capital and business alliance with Marubeni I-DIGIO Holdings Relocation to new office and stimulating internal and external communication Improving our presence within the industry involving such as the Nippon Cyber Security Fund activities Copyright (c) GLOBAL SECURITY
Slide 36: Capital and Business Alliance With Marubeni I-DIGIO Holdings
C a p i t a l a n d B u s i n e s s Al l i a n c e W i t h M a r u b e n i I - D I G I O H o l d i n g s C o . , L t d . Marubeni I-DIGIO Holdings is a core business of the Marubeni Group IT sector Deploying GSX’s security services to the Marubeni Group’s customer base and trading area is expected t
Slide 37: Relocation to New Office
Relocation to New Office The number of employees has increased in line with our expanding business so we have relocated our headquarters to create a better working environment Various events were held at the inviting new office, and this new location will stimulate internal and external communicatio
Slide 38: Nippon Cyber Security Fund Activities
N i p p o n C yb e r S e c u r i t y F u n d Ac t i vi t i e s Nippon Cyber Security Fund was established in April 2024. After a joint press conference, this created a great deal of interest in various fields and both METI and the media also contacted us about this event We held an information excha
Slide 39: L.P. Companies
L . P. C o m p a n i e s General trading IT trading companies companies Trading companies New New New New New New member member member member member member Development SIer SIer Consulting and SIer SIer SIer and SI SI System integration Security consulting Security consulting (Large and semi-large)
Slide 40: Nippon Cyber Security Fund Scheme
N i p p o n C yb e r S e c u r i t y F u n d S c h e m e Nippon Cyber Security Fund 1 Investment Limited L.P. (Investors who invest in the fund) Partnership Investment G.P. (General partners) Advisory Board Investee Review Returns Committee Business support Invest Discernment Investee companies Secu
Slide 41: Benefits to GSX from the Activation of the Japan Cyber Security Fund
B e n e f i t s t o G S X f r o m t h e Ac t i va t i o n o f t h e J a p a n C yb e r S e c u r i t y F u n d Expansion of scale of industry Acquisition of revenue outside Acceleration of GSX’s alliance and support for the of the core business strategy implementation of GSX’s management strategy In
Slide 42: METI Cyber Security Industry Promotion Strategy
B u s i n e s s E n v i r o n m e n t To p i c s : M E T I “ C yb e r S e c u r i t y I n d u s t r y P r o m o t i o n S t r a t e g y” “Cyber Security Industry Promotion Strategy” is a comprehensive policy package to create a series of promising cybersecurity products and services in Japan Its goa
Slide 43: ESG Initiatives
GSX GLOBAL SECURITY EXPERTS ESG Initiatives
Slide 44: ESG Initiatives
E S G I n i t i a t i ve s We will proactively address ESG and the SDGs with the aim of both realizing a sustainable society and increasing corporate value. In our Internet society, cybersecurity threats are one of the most important social issues that threaten people’s lives and livelihoods. There
Slide 45: Appendix
GSX GLOBAL SECURITY EXPERTS Appendix
Slide 46: About Global Security Experts
Ab o u t G l o b a l S e c u r i t y E x p e r t s A cybersecurity training company that operates throughout the security industry, aiming to improve the self-defense capabilities of companies throughout Japan －Purpose－ To protect all companies from security threats To unwaveringly tell companies wh
Slide 47: Corporate Profile
Corporate Profile A cybersecurity specialist company, established at the dawn of cybersecurity Engaged in three businesses: Cybersecurity Business, Security Training Business, and Security Personnel Business *CyberSTAR Inc., a wholly owned subsidiary, was established on April 1, 2024 by spinning off
Slide 48: Management Members
Management Members Director General Manager of Sales Division and General Manager of Training Business Division Takayuki Nakamura President and CEO Apr. 2001: Joined SB Technology Corp. Nov. 2019: Joined the Company, Senior Manager of Sales Division Shiro Aoyagi June 2023: Director and General Manag
Slide 49: History: A Cybersecurity Specialist Company
H i s t o r y: A C yb e r s e c u r i t y S p e c i a l i s t C o m p a n y t h a t H a s E x i s t e d S i n c e t h e D a w n o f C yb e r s e c u r i t y M a r k e t Our founding business is a vulnerability diagnostic service within the Consulting Business. We began providing services at the dawn
Slide 50: Our Origins
Our Origins Predecessor company Hospital Brain Showa Inc. established as a consolidated subsidiary of Business Brain Showa- Ota Inc. In 2000, TIGER TEAM SERVICE was transferred to Hospital Brain Showa Inc. from a Group company, and the Company was reborn as one specializing in cybersecurity, changin
Slide 51: Uniquely Positioned, Primarily Targeting Semi-Large and Medium-Sized Companies and SMEs
U n i q u e l y P o s i t i o n e d , P r i m a r i l y Ta r g e t i n g S e m i - L a r g e a n d M e d i u m - S i z e d Companies and SMEs A large disparity exists between the security needs of large enterprises and other types of companies. For this reason, other security specialists have contin
Slide 52: Differences in Security Needs and Service Optimization
D i f f e r e n c e s i n S e c u r i t y N e e d s a n d S e r vi c e O p t i m i z a t i o n Large enterprises seek security measures to completely eliminate threats, while semi-large and medium-sized companies and SMEs seek the minimum necessary security measures to eliminate reputational risk to
Slide 53: Barriers to Entry in the Security Market
Barriers to Entry in the Security Market for Semi -Large and Medium-Sized Companies and SMEs Structural challenges exist for competitors attempting to enter the market for semi-large and medium-sized companies and SMEs The market environment is not conducive to earning short-term revenue, and in ord
Slide 54: Lineup That Can Provide Appropriate Services Tailored to the Customer's Situation
L i n e u p t h a t C a n P r o vi d e Ap p r o p r i a t e S e r vi c e s Ta i l o r e d t o t h e C u s t o m e r ’s Situation A structure that facilitates long-term transactions by providing optimal services tailored to the situation Large number of Incident* incidents* countermeasures Normalcy (
Slide 55: GSX's Sales and Capacity Strategies
G S X ’s S a l e s a n d C a p a c i t y S t r a t e g i e s ( B u s i n e s s E x p a n s i o n M o d e l ) Increasing the number of customers and ARPU by implementing different approaches to new and existing customers Carrying out capacity strategy by cultivating security personnel in IT companies
Slide 56: Sales Strategy — Existing Customers: Up-Sell/Cross-Sell
Sales Strategy — Existing Customers: Up-Sell/Cross-Sell Cross-selling and up-selling through multi-faceted service offerings. ARPU* of existing customers is higher than that of new customers, and we have achieved efficient business expansion through ongoing transactions Efficient Business Expansion
Slide 57: Sales Strategy: Become a Sales Partner for IT Companies Throughout Japan
S a l e s S t r a t e g y: B e c o m e a S a l e s P a r t n e r f o r I T C o m p a n i e s Th r o u g h o u t Japan Leveraging the customer base and presence of IT firms to open up markets that had previously been untapped opportunities By partnering with GSX, IT companies can expand their securit
Slide 58: Capacity Strategy: Developing Delivery Partner Companies
C a p a c i t y S t r a t e g y: D e ve l o p i n g D e l i ve r y P a r t n e r C o m p a n i e s Expanding order capacity by leveraging highly specialized training content to cultivate security personnel in IT companies, partnering with and fostering industry peers, and developing a large number o
Slide 59: Sales Strategy — New Customers: Strengthening Digital Marketing
Sales Strategy — New Customers: Strengthening Digital Marketing Strategy For new customer acquisition, implementing digital marketing measures that lead to orders and shifting to an efficient and effective digital marketing focus to acquire high quality leads Selecting media that specialize in secur
Slide 60: Why GSX is Preferred by Semi-Large and Medium-Sized Companies and SMEs
Why GSX is Preferred by Semi-Large and Medium-Sized Companies and SMEs Positioning Expanding net sales through cross-selling Capturing the High profits Wide-ranging Semi-large and medium- and diverse issues needs of many customers + thanks to GSX-unique offerings sized companies, SMEs and up-selling
Slide 61: Security Environment
S e c u r i t y E n vi r o n m e n t With the promotion of DX, including the use of IoT and cloud computing, and the increase in telecommuting, the number of connections with other entities has increased, internal and external threats in organizations have changed, and a variety of incidents have oc
Slide 62: Market Environment for the Domestic Cybersecurity Market
M a r k e t E n vi r o n m e n t f o r t h e D o m e s t i c C yb e r s e c u r i t y M a r k e t In the cybersecurity market, demand for countermeasures is on the rise. In addition, the rapid shift of companies to digital technologies is a tailwind for growth in this market On the other hand, an un
Slide 63: Financial Highlights
Financial Highlights Fiscal Period FYE3/2020 FYE3/2021 FYE3/2022 FYE3/2023 FYE3/2024 FYE3/2025 Net sales (Thousands of yen) 1,616,613 2,948,871 4,391,317 5,558,022 7,002,941 8,801,647 Ordinary income (Thousands of yen) 73,103 239,370 414,331 737,512 1,104,319 1,562,981 Net income (Thousands of yen)
Slide 64: Precautions
Precautions This document contains forward-looking statements about Global Security Experts, Inc.’s financial results, business operations, and industry trends that are based on Global Security Experts, Inc.’s current plans, estimates, forecasts or projections. Various risks and uncertainties are in
Slide 65: GSX Global Security Experts
GSX GLOBAL SECURITY EXPERTS