Japan Business Systems, Inc. · TSE:5036
Japan Business Systems — FY2023 Earnings Presentation
31 slides from Japan Business Systems's earnings presentation, Nov 14, 2023
Slide 1: FY 2023/9 Financial Results
FY 2023/9 Financial Results 2023 / 11 / 14
Slide 2: Contents
Contents ￭ The Business Environment for FY2023/9 3 ￭ Consolidated Financial Results for FY2023/9 4 • Consolidated Financial Results for FY2023/9 (Summary) 5 • Consolidated Financial Results for FY2023/9 6 (Analysis of Factors Contributing to Change in Operating Profit) • Consolidated Financial Resul
Slide 3: The Business Environment for FY2023/9
The Business Environment for FY2023/9 Customer Trends Manufacturer Trends Growth Potential Cloud-Enabled digital Development Race of Strengthening Cloud AI transformation (DX) Intensifies Generative AI Proposals • Adoption of Microsoft 365 leads • Manufacturers accelerate • The number of group emplo
Slide 4: Consolidated Financial Results for FY2023/9
Consolidated Financial 1 Results for FY2023/9 / /
Slide 5: Consolidated Financial Results for FY2023/9 (Summary)
Consolidated Financial Results for FY2023/9 (Summary) The Company has started to adopt consolidated accounting in FY 2023/9 Increased net sales & profit, breaked record profit Consolidated companies NEXTSCAPE Inc. (consolidated subsidiary) NTV Wands Inc. (equity method affiliate) FY2022/9 FY2023/9 P
Slide 6: Analysis of Factors Contributing to Change in Operating Profit
Consolidated Financial Results for FY2023/9 (Analysis of Factors Contributing to Change in Operating Profit) SG&A expenses increased due to business expansion Gross profit margin declined due to prior acquisition of large new licenses in the L&P business (Unit: 100 million yen) Gross margin improvem
Slide 7: Consolidated Financial Results for FY2023/9 (Cloud Integration Business)
Consolidated Financial Results for FY2023/9 (Cloud Integration Business) Increase in projects for cloud utilization, such as Azure and ERP Contribute to business expansion by associated with NEXTSCAPE becoming a subsidiary 125.5% （ Millions of yen ） 1H 2H 1H 2H （ Millions of yen ） 1H 2H 1H 2H Segmen
Slide 8: Consolidated Financial Results for FY2023/9 (Cloud Service Business)
Consolidated Financial Results for FY2023/9 (Cloud Service Business) Steady expansion of operation and maintenance projects, mainly ongoing projects （ Millions of yen ） 1H 2H 1H 2H 115.1% （ Millions of yen ） 1H 2H 1H 2H Segment profit rate （YoY） 3,000 16.0% 18,000 13.8% 15,389 13.3% 12.9% 111.3% 16,
Slide 9: Consolidated Financial Results for FY2023/9 (License & Products Business)
Consolidated Financial Results for FY2023/9 (License & Products Business) The acquisition of large bulk orders for licenses and expansion of products sales （ Millions of yen ） 1H 2H 1H 2H 136.2% （ Millions of yen ） 1H 2H 1H 2H Segment profit rate （YoY） 3,500 3.4% 3.5% 80,000 74,381 3,000 2.8% 3.0% 1
Slide 10: Consolidated Financial Forecast for FY2024/9
Consolidated Financial 2 Forecast for FY2024/9 / /
Slide 11: Consolidated Financial Forecast for FY2024/9
Consolidated Financial Forecast for FY2024/9 Through continuous business expansion to record sales and profits FY2024/9 Forecast FY2023/9 Results Net increase from Percent change from previous period previous period Consolidated Consolidated Net sales （Millions of yen) 126,800 112,800 14,000 12.4% G
Slide 12: Analysis of Factors Contributing to Change in Operating Profit (FY2024/9)
Consolidated Financial Forecast for FY2024/9 (Analysis of Factors Contributing to Change in Operating Profit) In addition to the increase in income due to sales growth, improvement in gross profit margin in each business will absorb the increase in personnel and other expenses in anticipation of fut
Slide 13: Progress of the Medium-Term Management Plan
Progress of the Medium-Term Management Plan Due to the expansion of L&P business, net-sales exceeded the medium-term management plan. On the other hand, due to changes in the business portfolio and environment, costs are ahead of the curve. FY23 FY23 FY24 FY24 FY25 Medium-term plan Results Medium-te
Slide 14: Shareholder Returns
3 Shareholder Returns / /
Slide 15: Dividend forecast
Dividend forecast The annual dividend for FY2023/9 of 20 yen is planned to be in line with the initial forecast The annual dividend for FY2024/9 of 25 yen is forecasted thanks to an increase in profit. Annual Annual Annual Dividend Payout ratio 配当性向 ROE Dividend Dividend 20.5yen 35% 33.0% 20.0yen 20
Slide 16: Consolidated Financial Forecast for FY2024/9 by Business Segments
Consolidated Financial 4 Forecast for FY2024/9 by Business Segments / /
Slide 17: Priority Measures for FY2024/9
Priority Measures for FY2024/9 FY2023/9 Review FY2024/9 Priority measures • Weak demand for Microsoft 365 construction projects • Meeting Hybrid Infrastructure Demand Cloud • Expanding demand for hybrid • Business expansion to business divisions Integration infrastructure • Promoting the use of gene
Slide 18: Consolidated Financial Forecast for FY2024/9 by Business Segments
Consolidated Financial Forecast for FY2024/9 by Business Segments Forecasts for increased sales and profits in each business segment FY2024/9 Forecast FY2023/9 Results Net increase from Percent change from previous period previous period Consolidated Consolidated Net Sales Net Sales Net Sales Net Sa
Slide 19: Appendix
5 Appendix / /
Slide 20: Consolidated Financial Results (Quarterly Financial Results)
Consolidated Financial Results (Quarterly Financial Results) （ Millions of yen ） Net Sales （ Millions of yen ） Operating Profit Operating margin 2,000 10.0% 6.8% 6.7% 40,000 4.9% 4.6% 5.0% 35,698 1,800 3.7% 2.4% 5.0% 35,000 1.3% 1,600 1,513 30,487 1,409 0.0% 30,000 1,400 24,714 1,148 1,127 -5.0% 25,
Slide 21: Cloud Integration Business (Quarterly Financial Results)
Cloud Integration Business (Quarterly Financial Results) （ Millions of yen ） Net Sales （ Millions of yen ） Segment profit Segment profit rate 7,000 1,600 17.7% 18.4% 18.5％ 20.0% 6,406 16.2% 14.8% 5,927 5,792 1,400 13.1% 15.0% 6,000 11.6% 11.5% 1,185 4,830 4,861 4,888 1,200 10.0% 5,000 4,468 4,184 96
Slide 22: Cloud Service Business (Quarterly Financial Results)
Cloud Service Business (Quarterly Financial Results) （ Millions of yen ） Net Sales （ Millions of yen ） Segment profit Segment profit rate 4,500 800 16.6% 20.0% 15.9% 14.9% 3,987 3,964 13.2% 13.7% 4,000 3,782 3,759 12.4% 15.0% 3,678 700 10.5% 3,498 8.8% 596 10.0% 3,500 3,164 600 2,927 5.0% 3,000 502
Slide 23: License & Products Business (Quarterly Financial Results)
License & Products Business (Quarterly Financial Results) （ Millions of yen ） Net Sales （ Millions of yen ） Segment profit Segment profit rate 30,000 1,000 5.0% 6.0% 26,143 900 3.6% 3.6% 3.4% 4.0% 3.0% 25,000 2.2% 800 2.1% 1.9% 724 2.0% 20,113 700 662 20,000 17,028 0.0% 600 516 531 15,132 14,584 509
Slide 24: Composition Ratio of Sales
Composition Ratio of Sales Continuous expansion of recurring revenue ratio, Expanding the sales ration of Manufacturing and Distribution sector by industry 3 business segments Composition Ratio of Sales by industry 3 License & Products business 1 Cloud integration business Services and Public Organi
Slide 25: Sales ratio of Microsoft license and progress of number of IDs
Sales ratio of Microsoft license and proress of number of IDs Growing the number of IDs steady and strengthening the customer base Microsoft license sales ratio Number of Microsoft 365 ID （ Millions of yen ） （thousant） License Products License Products License ratio* 100,000 90% 78% 80% 3,000 139.0%
Slide 26: Steady progress in strengthening the personnel structure
人員数推移 Steady progress has been made in strengthening the personnel structure due to smooth progress of recruitment & decrease the turnover rate Number of personnel、 the turnover rate Business partner rate Engineers Sales department Administrative department the turnover rate* Business partner rate 3
Slide 27: FY2023/9 4Q Topics
FY2023/9 4Q Topics In addition to driving customer adoption of Open AI, JBS has signed a partnership agreementwith Crayon for the global market Driving customer adoption of Open AI Case Study ① Case Study ② a comprehensive collective a logistics company of entertainment company Sega Sammy 6,000 focu
Slide 28: Secure File Transfer App; metis fiebie
Secure File Transfer App; metis fiebie Just add-on to Microsoft Office Outlook or Microsoft Teams to easily and securely send and collect files with external parties Easily send and receive files by simply entering the email address of the recipient Per file Max. Send files Service Overview In-house
Slide 29: Efforts for Enterprise AI
Efforts for Enterprise AI 2023/4 AIplicity Chat 2023/11 Release Copilot NAVI Release Powered by ChatGPT API In addition to Chat GPT adoption consulting service, Support services to encourage extensive utilization A ChatGPT app that customers can immediately start using of Copilot for Microsoft 365 a
Slide 30: Notes concerning forward looking statements
Notes concerning forward looking statements This material contains forward looking statements. These forward-looking statements, including forecasts, are based on the Company’s assumptions in light of information available at this moment. These statements do not guarantee future performance, and inv
Slide 31: JBS
JBS BNEFI/OI—2, BLHOT<
Japan Business Systems — FY2023 Earnings Presentation on 6ix