Cube System Inc. · TSE:2335
Cube System — Q1 FY2024 Earnings Presentation
24 slides from Cube System's earnings presentation, Aug 2, 2023
Slide 1: 1Q FY Ending March 31, 2024 Supplementary Information Material
1st Quarter of the Fiscal Year Ending March 31, 2024 Supplementary Information Material Aug. 2, 2023 for Financial Results Securities code: 2335
Slide 2: Contents
Contents 1 Overview of Financial Results 1Q of the Fiscal Year Ending March 31, 2024 2 Outlook Fiscal Year Ending March 31, 2024 3 Appendix Copyright (C) 2023 CUBE SYSTEM INC. All rights reserved 2
Slide 3: Overview of Financial Results
1 1. Overview of Consolidated Statements of Income 1Q of the Fiscal Year Ending March 31, 2024 2. Trends in Transition by Accounting Period Overview of 3. Factors Leading to Changes in Operating Profit Financial (Compared to the Previous Fiscal Year) 4. Trends in Net Sales and Operating Profit by Se
Slide 4: Overview of Consolidated Statements of Income
1-1. Overview of Consolidated Statements of Income Overview of Financial Results Continue to reform the structure of Business model, invest in expansion of development organization and facilities Both income and profit increase driven by SI business FYE 2024 FYE 2023 FYE 2024 1Q 1Q Forecast Actual A
Slide 5: Trends in Transition by Accounting Period
1-2. Trends in Transition by Accounting Period Overview of Financial Results (Millions of yen) FYE2022 FYE2023 FYE2024 (%) 4,500 25.0 4,000 20.0 3,500 3,000 Net Sales 15.0 Gross Margin 2,500 Operating 2,000 Margin 10.0 1,500 1,000 5.0 500 0 0.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Apr-Jun Jul-Sep Oct-Dec Jan-
Slide 6: Factors Leading to Changes in Operating Profit
1-3. (Compared Factors Leading to Changes in Operating Profit to the Previous Fiscal Year) Overview of Financial Results Expansion of (Unit: millions of yen) Centralization of development resources for organization and facilities SI business (Lift & Shift*) (recruitment Development of projects enhan
Slide 7: Net Sales and Operating Profit by Service Segment
1-4. Trends in Net Sales and Operating Profit by Service Segment Overview of Financial Results Net Sales Operating Profit YoY YoY Net Sales Composition (Millions of yen) +12.4% (Millions of yen) 4,376 400 +35.9% [1Q Fiscal Year Ending March 31, 2024] 4,500 (+484) 369 (+97) 76% System Integration Ser
Slide 8: Net Sales and Operating Profit by Industry
1-5. Trends in Net Sales and Operationg Profit by Industry Overview of Financial Results Net Sales Operating Profit YoY (Millions of yen) +12.4% (Millions of yen) YoY Net Sales Composition [1Q Fiscal Year Ending March 31, 2024] 4,500 4,376 400 +35.9% (+484) 369 (+97) 4,000 3,892 350 Insurance & Secu
Slide 9: Net Sales and Operating Profit by Business Model
1-6. Trends in Net Sales and Operating Profit by Business Model Overview of Financial Results Net Sales Operating Profit YoY YoY +12.4% Net Sales Composition (Millions of yen) +35.9% 4,376 (Millions of yen) [1Q Fiscal Year Ending March 31, 2024] 4,500 400 (+484) 126 369 (+24) (+97) 4 3% Digital Busi
Slide 10: Index Per Capita
1-7. Index Per Capita Overview of Financial Results Net Sales Operating Profit Number of Per Capita* Per Capita* Employees Number of Domestic Employees (Thousands of yen) (Thousands of yen) (Persons) Number of Overseas Employees 5,744 6,000 (+661) 1,000 600 904 5,402 （+22） 900 882 5,082 513 485 829
Slide 11: Outlook
2 1. Overview of Earnings Outlook Fiscal Year Ending March 31, 2024 2. Order Status by Industry Outlook 3. Order Status by Business Model 4. Net Sales Outlook by Industry 5. Net Sales Outlook by Business Model 6. Trends in Dividends and Dividend Payout Ratio Copyright (C) 2023 CUBE SYSTEM INC. All r
Slide 12: Overview of Earnings Outlook
2-1. Overview of Earnings Outlook Outlook FYE 2024 FYE 2024 Earnings forecast 1Q (Increase/decrease from the previous fiscal year) Actual (Unit: millions of yen) A YoY increase of 10.3% is expected Net Sales 18,000 4,376 (+1,674／+10.3%) - Proactively acquire clients' strategic IT investment projects
Slide 13: Order Status by Industry
2-2. Order Status by Industry Outlook Order Volume Order Backlog (Millions of yen) (Millions of yen) 5,000 5,000 4,828 +881 4,633 +692 (+23.5%) (+16.8%) 4,135 4,000 3,751 4,000 1,632 1,548 +427 1,204 (+35.5%) Finance +415 1,133 (+36.7%) 3,000 3,000 970 +184 1,033 Distribution +274 848 (+21.8%) 695 (
Slide 14: Order Status by Business Model
2-3. Order Status by Bussiness Model Outlook Order Volume Order Backlog (Millions of yen) (Millions of yen) 5,000 5,000 4,828 4,633 +692 159 +881 116 (+16.8%) (+23.5%) +11 4,135 4,000 3,751 148 (+7.6%) +54 4,000 Digital Business 1,746 61 (+87.8%) 1,935 997 +748 SI Business (Lift & Shift) 960 +975 (+
Slide 15: Net Sales Outlook by Industry
2-4. Net Sales Outlook by Industry Outlook YoY Net Sales Composition Ratio by Industry Trends in Consolidated Net Sales by Industry ＋19.1% [earnings forecast for fiscal year ending March 31, 2024] YoY (+963) +13.2% (Millions of yen) (+643) 5,993 6,000 5,501 YoY 5,029 5,000 4,857 +10.6% (+376) Others
Slide 16: Net Sales Outlook by Business Model
2-5. Net Sales Outlook by Business Model Outlook Net Sales YoY +10.3% 18,000 (Millions of yen) (+1,674) Digital Business 18,000 - Promotion of collaborative consultation models 16,325 Digital Business - Expansion of services by utilizing AI technologies 920 602 (+317) - Reinforcement and promotion o
Slide 17: Trends in Dividends and Dividend Payout Ratio
2-6. Trends in Dividends and Dividend Payout Ratio Outlook To aim for further returns to shareholders, we will change part of our basic policy on profit distribution from FYE2024 and raise consolidated dividend payout ratio from 35% to 40%. Ordinary dividends per share Commemorative dividends Divide
Slide 18: Appendix
3 1. Five Year Summary Appendix 2. Consolidated Balance Sheets: Major Items 3. Net Sales and Operating Profit by Service Segment 4. Net Sales and Operating Profit by Industry 5. Assets and Capital-Related Items 6. Share Price and Equity-Related Items Copyright (C) 2023 CUBE SYSTEM INC. All rights re
Slide 19: Five Year Summary
3-1. Five Year Summary Appendix (Millions of yen) (Millions of yen) Operating Profit Operating Margin (%) (%) Net Sales (left axis) Gross Margin(right axis) (left axis) (right axis) 400 12.0 5,000 24.0 4,000 18.0 300 9.0 3,000 12.0 200 6.0 2,000 6.0 100 3.0 1,000 0 0.0 0 0.0 2019/06 2020/06 2021/06
Slide 20: Consolidated Balance Sheets: Major Items
3-2. Consolidated Balance Sheets: Major Items Appendix (Unit: millions of yen) Increase/ Increase/ Assets 2023/03 2023/06 Decrease Liabilities 2023/03 2023/06 Decrease Current assets 9,703 9,291 -411 Current liabilities 2,188 2,053 -135 Accounts payable - trade 796 859 +63 Cash and deposits 6,748 6,
Slide 21: Net Sales and Operating Profit by Service Segment and Industry
3-3. Net Sales and Operating Profit by Service Segment -4. Net Sales and Operating Profit by Industry Appendix Net Sales and Operating (Unit: millions of yen) Net Sales and Operating (Unit: millions of yen) Profitby Service Segment 2022/06 2023/06 YoY Profitby Industry 2022/06 2023/06 YoY Net Sales
Slide 22: Assets and Capital-Related Items; Share Price and Equity-Related Items
3-5. Assets and Capital-Related Items -6. Share Price and Equity-Related Items Appendix Assets and Capital-Related Items Net Assets/Equity Ratio (Millions of yen) Total Assets (Millions of yen) Net assets Equity ratio(right axis) (%) (left axis) 15,000 12,000 100 72.3 73.8 76.5 68.1 70.8 12,000 80 9
Slide 23: Share Price and Equity-Related Items
3-6. Share Price and Equity-Related Items Appendix Share Price and Equity-Related Items Share Price (Yen) Company’s Share Price (left axis) Nikkei Stock Average (Yen) (100 million yen) Market Cap (right axis) 1,750 35,000 200 1,400 28,000 160 1,050 21,000 195 1,241 120 1,064 1,046 162 700 904 14,000
Slide 24: Company website and forward-looking statements note
https://www.cubesystem.co.jp/en/ The earnings outlook and other forward-looking statements provided in this material are based on the information currently available to the Company and are subject to potential risks and uncertainties. Please understand that there is a large possibility that actual r