Cybertrust Japan Co.ltd. · TSE:4498
Cybertrust Japan Co.ltd — Q1 FY2023 Earnings Presentation
53 slides from Cybertrust Japan Co.ltd's earnings presentation, Jul 26, 2023
Slide 1: FY2023 Q1 Financial Results
Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. FY2023 Q1 Financial Results First Quarter of the Fiscal Year ending March 31, 2024 C
Slide 2: Executive Summary
▌Executive Summary Increase in both sales and profit compared to the same period of the previous year ◼ Making progress as expected compared to consolidated forecast towards achieving full-year forecast ◼ Profit increased while we made active investments in overseas partnerships for CentOS-related b
Slide 3: Agenda
◼ Overview of FY2023 Q1 Financial Results Agenda ◼ Overview by Service Segment Authentication and Security Services Linux/OSS Services IoT services ◼ FY2023 Full-Year Forecast ◼ Medium-Term Management Plan and Growth Strategy ◼ APPENDIX 3 Copyright Cybertrust Japan Co., Ltd. All rights reserve
Slide 4: Overview of FY2023 Q1 Financial Results
◼ Overview of FY2023 Q1 Financial Results ◼ Overview by Service Segment Authentication and Security Services Linux/OSS Services IoT services ◼ FY2023 Full-Year Forecast ◼ Medium-Term Management Plan and Growth Strategy ◼ APPENDIX 4 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 5: FY2023 Q1 Consolidated Results (3 months)
▌FY2023 Q1 Consolidated Results (3 months) Year-on-year increase in both sales and profits, record high Q1 net sales and operating income Net sales rose 2.5% YoY to1,443 million yen Operating income increased 4.8% YoY to 179 million yen ◼ Strong build-up of recurring service sales under Authenticati
Slide 6: Trend in Quarterly Sales by Transaction Type
▌Trend in Quarterly Sales by Transaction Type Growth driven by Record high recurring service sales ratio of 70.7% high growth-driver services (Millions of yen) Professional services 1,729 1,661 Licenses 1,536 1,560 Recurring services 1,468 1,468 1,443 1,408 490 1,367 497 1,234 401 1,221 345 379 284
Slide 7: Sales by Service Segment
▌Sales by Service Segment ■ Authentication and Security Strong performance by recurring services led by iTrust, a high-growth-driver service, due to expansion of digital transformation market Net sales posted steady growth year on year, rising 4.1% ■ Linux / OSS Renewal rate improved for CentOS supp
Slide 8: Overview by Service Segment
◼ Overview of FY2023 Q1 Financial Results ◼ Overview by Service Segment Authentication and Security Services Linux/OSS Services IoT services ◼ FY2023 Full-Year Forecast ◼ Medium-Term Management Plan and Growth Strategy ◼ APPENDIX 8 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 9: Authentication and Security Services Performance and Initiatives
▌ Authentication and Security Services | Performance and Initiatives by Service Segment Recurring services grew led by high-growth-driver service iTrust (Unit: Millions of yen) Authentication and security Recurring service sales ratio of 86.3% (up 4.3 pp YoY) service net sales FY22 Q1 FY23 Q1 YoY ch
Slide 10: Quarterly Trend in KPI of High-Growth-Driver Service iTrust
▌Quarterly Trend in KPI of High-Growth-Driver Service iTrust Number of iTrust transactions (number of paid API use) (Number of transactions) 5,756,761 Number of transactions 5.75 million/quarter 3,360,350 YoY change 1.7 times 1,466,391 Trust service boasting outstanding performance 205,178 *Cybertru
Slide 11: Initiatives to Expand Scope of Use of iTrust
▌Initiatives to Expand Scope of Use of iTrust Full implementation of continuous Individual Number Cards on smartphones Real estate electronic contracts customer management iTrust (Identity Verification) iTrust (Identity Verification) iTrust (Digital Signature) Based on FATF*² recommendations, financ
Slide 12: Linux/OSS Services
◼ Overview of FY2023 Q1 Financial Results ◼ Overview by Service Segment Authentication and Security Services Linux/OSS Services IoT services ◼ FY2023 Full-Year Forecast ◼ Medium-Term Management Plan and Growth Strategy ◼ APPENDIX 12 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 13: Linux Support: Progress and Initiatives in CentOS Support
▌High-Growth-Driver Service Linux Support | Progress and Initiatives in Focus Area (CentOS Support) Renewal rate of recurring services remained high and partner collaborations around the nation strengthened Record high FY20 Q1 FY21 Q1 FY22 Q1 FY23 Q1 Recurring service sales to expand from Q4 of FY20
Slide 14: Linux/OSS Initiatives Aimed at Expanding Sales of High-Growth-Driver Services
▌ Linux/OSS Initiatives Aimed at Expanding Sales of High-Growth-Driver Services Strengthen high value-added services through global Support CentOS users’ transition to successor OS collaborations Offer highly rated AlmaLinux OS as transition OS to users of Collaboration with U.S.-based CloudLinux Ce
Slide 15: IoT Services
◼ Overview of FY2023 Q1 Financial Results ◼ Overview by Service Segment Authentication and Security Services Linux/OSS Services IoT services ◼ FY2023 Full-Year Forecast ◼ Medium-Term Management Plan and Growth Strategy ◼ APPENDIX 15 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 16: IoT Services Performance and Initiatives
▌IoT Services | Performance and Initiatives by Service Segment Steady progress in adoption of high-growth-driver service EMLinux (Unit: Millions of yen) Professional services, which lead to recurring services, continued to IoT service net sales grow from the previous fiscal year. Making steady progr
Slide 17: Increase in Demand for Security Consulting and Business Growth
▌ Increase in Demand for Security Consulting and Business Growth Adapting to the transition to 14 critical domestic infrastructure fields subject Government to make it mandatory for companies to international safety standards to international security standards introduce pre-screening system Fourtee
Slide 18: FY2023 Full-Year Forecast
◼ Overview of FY2023 Q1 Financial Results ◼ Overview by Service Segment Authentication and Security Services Linux/OSS Services IoT services ◼ FY2023 Full-Year Forecast ◼ Medium-Term Management Plan and Growth Strategy ◼ APPENDIX 18 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 19: FY2023 Full-Year Forecast
▌FY2023 Full-Year Forecast High growths in excess of 20% in net sales and in excess of 30% in operating income Recurring growth is expected to continue with high-growth-driver services YoY change FY22 FY23 Change Rate of change Unit: Millions of yen Net sales 6,167 7,500 +1,332 +21.6% Operating inco
Slide 20: FY2023 Dividend Forecast
▌FY2023 Dividend Forecast As of the beginning of FY2023, Cybertrust forecasts to pay 17.50 yen per share as dividend, which is the same amount as that it paid in FY2022. Cybertrust’s basic dividend policy is to pay dividends from the surplus, once a year, as year-end Dividend dividend in a stable an
Slide 21: Medium-Term Management Plan and Growth Strategy
◼ Overview of FY2023 Q1 Financial Results ◼ Overview by Service Segment Authentication and Security Services Linux/OSS Services IoT services ◼ FY2023 Full-Year Forecast ◼ Medium-Term Management Plan and Growth Strategy ◼ APPENDIX 21 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 22: BizX 20/40 (Medium-Term Management Plan)
▌BizX 20/40 (Medium-Term Management Plan) Medium-Term Achieve dramatic growth in performance over three years from FY2022 Management Plan through initiatives to address the five key themes for business transformation 1 Organization growth and human 2 3 New market creation and focus R&D for the futur
Slide 23: BizX 20/40 Net Sales and Operating Income Targets
▌BizX 20/40 (Medium-Term Management Plan) Net sales target to be achieved by FY2024: 10.0 billion yen Operating income of 2.0 billion yen or more by FY2024 Aim for 20% growth in CAGR centered on recurring • Operating margin goal of 20 to 24% sales of various services • The target compound annual gro
Slide 24: High-Growth-Driver Services and Stable, High-Revenue Services
▌BizX 20/40 (Medium-Term Management Plan) Aim for net sales of 10 billion yen and operating income of 2 billion yen in 2024 through stable, high-revenue services and high-growth-driver services High-growth-driver services iTrust Linux support High-growth-driver services EMLinux Services in which man
Slide 25: iTrust (Identity Verification) Business Model
High-growth-driver services Authentication ▌1. iTrust (Identity Verification) Business Model and Security Adoption of Individual Number Cards to Increase in online identity verification Increase in iTrust transactions continue usage Expectations on increased usage in daily life as Use of iTrust incr
Slide 26: iTrust (Digital Signature) Business Model
High-growth-driver services Authentication ▌2. iTrust (Digital Signature) Business Model and Security Expansion of scope of use of digital Further progress in digitalization Increase in iTrust transactions signatures Digitalization advancing as society breaks away Expansion in scope of use of digita
Slide 27: Growth of Recurring Business through Paid Support Business
High-growth-driver services ▌ 3. Realize Growth of Recurring Business through Paid Support Business Linux/OSS Two pillars Indicators for business Paid Linux/OS Support expansion Growth from increase in number of [1] International collaborations new contracts and renewal rate Initiative for developme
Slide 28: Growth of Recurring Business through Expansion of EMLinux Business
High-growth-driver services IoT ▌ 4. Realize Growth of Recurring Business through Expansion of EMLinux Business Increase in number of EMLinux contracts Transition to recurring business Adopted by IoT device developers to comply with IoT security requirements both within and outside Japan Work with O
Slide 29: Collaboration with OSS Global Community Leading to Business Expansion
▌Collaboration with OSS Global Community Leading to Business Expansion Cybertrust Japan’s concept regarding Contributing to and driving forward OSS Achievement from collaboration with OSS community activities Security Mobilization Plan OSS community Provision of OS that can be safely operated by med
Slide 30: APPENDIX
◼ Overview of FY2023 Q1 Financial Results ◼ Overview by Service Segment Authentication and Security Services Linux/OSS Services IoT services ◼ FY2023 Full-Year Forecast ◼ Medium-Term Management Plan and Growth Strategy ◼ APPENDIX 30 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 31: Numeric data
Numeric data 31 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 32: Consolidated PL (Detailed Sales by Service)
▌ Consolidated PL (Detailed Sales by Service) Consolidated Financial Results (Millions of yen) FY20 FY21 FY22 Net sales 4,895 5,731 6,167 Authentication and security services 2,925 3,359 3,543 License 126 203 155 Professional services 592 567 448 Recurring service 2,205 2,588 2,939 Linux/OSS service
Slide 33: Consolidated BS
▌ consolidated BS (Millions of yen) End of Mar. 2021 End of Mar. 2022 End of Mar. 2023 YoY comparison Current assets 3,124 4,613 5,401 +788 Cash and deposits 1,962 3,577 4,366 +788 Trade notes and accounts receivable 893 861 878 +16 And Contract Assets Fixed assets 2,725 2,606 2,465 △141 Property, p
Slide 34: Major Consolidated Management Indicators
▌ Major Consolidated Management Indicators Net sales Book value per share (BPS) Return on equity (ROE) (Millions of yen) (Unit: yen) (%) 6,167 699.26 13.8 5,731 610.12 12.2 526.35 11.2 4,895 FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22 Operating income and operating income margin Earnings per share
Slide 35: Corporate Information
Corporate Information 35 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 36: Corporate Philosophy and Mission
▌ Corporate Philosophy and Mission Security and Trust We will realize a Safe and Secure Digital Society As a socially responsible company, We recognize that “responding to the Sustainable Development Goals (SDGs)” is a key management issue. Through our business and corporate activities, we work to r
Slide 37: SDGs Initiatives
▌SDGs Initiatives Contributing to the Realization of a Sustainable Society Along with Business Growth Social Issues Addressed through Business Activities Social Issues Addressed through Corporate Activities By promoting trust services to support DX Achieving corporate growth by creating resilient or
Slide 38: About Us
▌ About Us Company Name Cybertrust Japan Co., Ltd. ■Certification services and security solutions businesses ■Develop Linux OS, use OSS for enterprise Business Activities Software development, support and consulting services Date of Establishment June 1, 2000 ■IoT related business and embedded Linux
Slide 39: Business Overview
Business Overview 39 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 40: Issues Solved by Cybertrust and Value Provided
▌ Issues Solved by Cybertrust and Value Provided Providing essential trust services in the era of digital transformation (DX) people, experiences and things Issues for digitalization Identity theft ⚫ Longest operation track (people, infrastructure connecting New safe and secure civil things) record
Slide 41: Business Overview
▌Business Overview Cybertrust provides original Trust services for solving DX issues by combining Authentication and security and Linux/OSS technologies. Trust Services Authentication/security IoT Linux/OSS digital authentication expertise Embedded Linux Linux/OSS expertise Operating domestic certif
Slide 42: Overview of Authentication and Security Services
▌ Overview of Authentication and Security Services Providing trust services for areas such as digital certificate, digital Identity verification and digital signature - the ‘ID cards’ of the digital economy An operation track record as Japan’s first commercial certification authority and one conform
Slide 43: Overview of Linux / OSS Services
▌ Overview of Linux / OSS Services Japan’s only Linux/OSS distributor run by a group of engineers active in the global OSS community Application Application General Siers Building application systems on operating systems Application domain Linux distributions Functions needed for the Linux kernel ar
Slide 44: Overview of IoT Services
▌ Overview of IoT Services Providing technology expertise ranging from Linux operating systems for IoT devices to authentication and lifecycle management providing secure operation of IoT devices used to verify IoT device authenticity enabling lifecycle management of IoT devices Linux/OSS technology
Slide 45: Glossary ①
▌ Glossary ① Term Description Digitized identity certificates that properly certify and identify targets. These certificates verify the authenticity of people, goods, etc. by digital certificate examining and issuing them by a certification authority as a reliable third-party organization. Preventin
Slide 46: Glossary ②
▌ Glossary ② Term Description A digital certificate that installs a certificate on the user’s device (such as a PC or smartphone) to authenticate the user as the authorized Client certificate user. There are two main types: User certificates and device certificates. Issued to information devices suc
Slide 47: Glossary ③
▌ Glossary ③ Term Description RHEL Abbreviation for Red Hat Enterprise Linux. A Linux distribution developed and sold by Red Hat for business use. CentOS Community-based free LinuxOS that is highly compatible with RHEL A nonprofit organization of users, developers and fans created mainly to develop,
Slide 48: Glossary ④: Security-Standard FIPS 140-3
▌ Glossary ④: Security-Standard "FIPS 140-3" Summary Standard for cryptographic modules established by the National Institute of Standards and Technology (NIST:National Institute of Standards and What is FIPS 140-3? Technology) that was certified in March 2019. Functions as a standard for realizing
Slide 49: Product name comparison table
▌ Product name comparison table Function Official product name Abbreviations in this document 【Authentication and Security] SSL/TLS server certificate SureServer SureServer device authentication Cybertrust Device ID Device ID Certification bureau outsourcing services Cybertrust Managed PKI Managed P
Slide 50: Product and Service Introduction Pages
▌ Product and Service Introduction Pages Product and service introduction page URL CyberTrust Co., Ltd. Web website https://www.cybertrust.co.jp/(Link) 【Authentication and Security] SureServer service https://www.cybertrust.co.jp/sureserver/(Link) Cybertrust Device ID Service https://www.cybertrust.
Slide 51: Press Release List (FY23 Q1～)
▌Press Release List (FY23 Q1～) 04.18 04.26 05.12 05.22 Cybertrust launches AI Scan Diagnostics Service, Provision of identity verification system compatible "iTrust electronic signature certificate" and "iTrust Cybertrust Japan participates in the AlmaLinux OS which enables quick and high-precision
Slide 52: Disclaimer
▌ Disclaimer ◼ The materials and information provided in this presentation contain ‘forward-looking statements’. ◼ They are based on current expectations, forecasts and risk-bearing assumptions, and involve uncertainties that could lead to results that differ materially from these statements. ◼ Thes
Slide 53: Security and Trust
Security and Trust Copyright Cybertrust Japan Co., Ltd. All rights reserved. 53 Copyright Cybertrust Japan Co., Ltd. All rights reserved.