Japan Business Systems, Inc. · TSE:5036
Japan Business Systems — 1H FY2023/9 Earnings Presentation
31 slides from Japan Business Systems's earnings presentation, May 9, 2023
Slide 1: FY 2023/9 1H Financial Results
FY 2023/9 1H Financial Results 2023 / 05 / 09
Slide 2: Contents
Contents ￭ The Business Environment for JBS in 2023 3 ￭ FY2023/9 1H Results 4 ￭ FY2023/9 1H Topics 13 ￭ Consolidated: FY2023/9 Business Plan 16 ￭ Consolidated: Medium-term Management Plan 23 (FY2023/9-FY2025/9) 2
Slide 3: The Business Environment for JBS in 2023
The Business Environment for JBS in 2023 Customer Manufacturer New Possibilities Trends Trends Remote Work ⇒ Ongoing investment Acceleration of Shift to Cloud DX テキストテキストテキストテキストテキストテキストテキ in the cloud cloud-based AI テキストテキストテキストテキストテキストテキストテキ ストテキストテキストテキストテキストテキストテキスト ストテキストテキストテキストテキストテキストテキスト テキ
Slide 4: FY2023/9 1H Results
1 FY2023/9 1H Results / /
Slide 5: A Summary of Results for First Half of Fiscal Year Ending September 2023
A Summary of Results for First Half of Fiscal Year Ending September 2023 Sales increased steadily. Operating profit declined year on <year due to upfront investments primarily due to shifting engineer skill sets and license agreements. ✓ The Company has started to adopt consolidated accounting in th
Slide 6: Company Performance
Company Performance Net sales expanded steadily in all business segments. Operating profit declined year on year due to upfront investments. 48.5 46.6 123.2% （YoY） 50億円 42.5 bil.yen bil.yen 3億円 2.56 20.0% bil.yen 37.8 bil.yen 2.21 86.4 18.0% % 3億円 （YoY） 40億円 32.5 bil.yen bil.yen 16.0% bil.yen 2億円 14
Slide 7: Cloud Integration Business
Cloud Integration Business Higher costs were caused by an engineer skill shift made to respond to expected changes in demand. 10.8 116.3% 50.0% （YoY） 9.3 9.0 bil.yen 1.69 100.5 % 45.0% 8.3 8.6 1.68 40.0% （YoY） bil.yen bil.yen bil.yen 35.0% bil.yen bil.yen bil.yen 30.0% 1.13 1.12 0.96 25.0% bil.yen b
Slide 8: Cloud Service Business
Cloud Service Business Net sales and profit improved with the stabilization of the operation of large projects won in the previous fiscal year. 7.7 125.9% 60.0% （YoY） 1.10 111.3 55.0% % 7.3 bil.yen 0.99 （YoY） bil.yen 50.0% 6.1 bil.yen 45.0% 5.4 bil.yen 40.0% 5.3 bil.yen 0.77 0.79 bil.yen 0.72 35.0%
Slide 9: License & Products Business
License & Products Business Net sales expanded due to new large-scale license agreement Lead to acquisition of future CI/CS projects 12.0% 28.4 32.2 28.1 125.4% 0.94 0.90 86.6% 0.81 10.0% 11.0% bil.yen （YoY） bil.yen bil.yen bil.yen bil.yen （YoY） bil.yen 9.0% 22.4 0.63 8.0% 18.9 bil.yen 7.0% bil.yen
Slide 10: Consolidated Results in First Half: Effect of Consolidated Accounting
Consolidated Results in First Half: Effect of Consolidated Accounting Increase in Net sales and slight decrease in operating profit due to the consolidation of NEXTSCAPE Inc. (Upfront acquisition cost) / Small impact on EBITDA basis Consolidated NEXTSCAPE Inc. (consolidated subsidiary) NTV Wands Inc
Slide 11: Major KPI (Trend of ID numbers)
Major KPI (Trend of ID numbers) Expansion of Dynamics 365 IDs and Azure sheets, in addition to increase of Microsoft 365 IDs Trend of Microsoft 365 ID numbers Trend of Dynamics 365 ID numbers 120.6% 126.2% （compared （compared with ‘22/9E) 2,073K with ‘22/9E) 1,719K 1,464K 19/9 20/9 21/9 22/9 23/3 98
Slide 12: Major KPI (Progress of ARPU)
Major KPI (Progress of ARPU) Demand shift from remote work to Infrastructure and application development Up Sell Cross Sell ARPU * In-house support (Skill fostering) DX promotion by usage of JBS Cloud Suite Sales growth of Dynamics / Power Platform and SAP Apps development Securing app development e
Slide 13: FY2023/9 Topics
2 FY2023/9 Topics / /
Slide 14: Strengthening Development Capabilities by Making NEXTSCAPE Inc. a Subsidiary
Strengthening Development Capabilities by Making NEXTSCAPE Inc. a Subsidiary Enhanced capability to meet growing Microsoft Cloud demand with NEXTSCAPE Inc. which is strong in agile development on Microsoft Azure Solution for Public Sectors Solution for ✓ Microsoft MVP 3 members Media Sectors ✓ Micro
Slide 15: JBS Cloud Suite: Achievement increase in scenarios
JBS Cloud Suite: Achievement increase in 3 scenarios An integrated solution to promote cloud DX using CAF framework Renewal of AEMSP Certification Sub Brand 1. The highest certification of Microsoft Azure Expert MSP renewal A one-stop solution for supporting strategy formulation and design/planning/
Slide 16: Consolidated: FY2023/9 Business Plan
Consolidated: 3 FY2023/9 Business Plan / /
Slide 17: Consolidated: Financial Forecasts for FY2023/9
Consolidated: Financial Forecasts for FY2023/9 Through consolidation with NEXTSCAPE Inc., Net sales increase, operating profit decrease due to upfront acquisition costs FY2023/9 Net Sales 101.7 bil. yen Operating Profit FY2022/9 Net Sales 4.67 bil. yen Consolidated 86.3 bil. yen FY2021/9 Operating P
Slide 18: Consolidated: Financial Forecasts for FY2023/9 (PL)
Consolidated: Financial Forecasts for FY2023/9 (PL) Non-consolidated financial forecasts remains unchanged Including the impact of the application of the subsidiary of NEXTSCAPE and the equity method of NTV wands JBS Previous forecast JBS Revised forecast Major changes from Non-consolidated Consolid
Slide 19: Consolidated: Financial Forecasts for FY2023/9 (by Business Segments)
Consolidated: Financial Forecasts for FY2023/9 (by Business Segments) The performance of NEXTSCAPE which focuses on agile development reflected in Cl/L&P business JBS Previous forecast JBS Revised forecast Effects of consolidation Non-consolidated Consolidated of NEXTSCAPE Business Segment Net Sales
Slide 20: Building a Customer-Oriented Organization (from April 2023)
Building a Customer-Oriented Organization (from April 2023) Shift to more customer-oriented organization structure to realize the flexible resource allocation under the acceleration of cloud demand changes President & CEO Internal (from April 2023) Committees Audit Office Business Group Corporate Gr
Slide 21: Priority theme: Efforts for Enterprise AI (1/2)
Priority theme: Efforts for Enterprise AI (1/2) We launched ChatGPT adoption consulting and app development services designed for enterprise utilization. Leakage risk Enterprise solutions that make possible prevention the use of internal knowledge ChatGPT Adoption Consulting Service A consulting ser
Slide 22: Priority theme: Efforts for Enterprise AI (2/2)
Priority theme: Efforts for Enterprise AI (2/2) Focus on productivity invocation of office work and development automation by utilization of Microsoft cloud, not limited to ChatGPT Feb. 3 Security Copilot announced Mar. 16 Microsoft 365 Copilot announced Mar. 28 ChatGPT integrated with Teams Premium
Slide 23: Consolidated: Medium-term Management Plan (FY2023/9-FY2025/9)
Consolidated: 4 Medium-term Management Plan (FY2023/9-FY2025/9) / /
Slide 24: Medium-term Management Plan (23/9-25/9)
Medium-term Management Plan (23/9－25/9） Driving DX in the enterprise market with cloud ID as the axis FY2025/9 Net sales CAGR Net sales 13％ 124.4 bil. yen Security and hybrid cloud Operating profit FY2022/9 Industry solution 8.9 bil. yen Operating margin 7.2％ Net sales Acceleration of managed 86.3 b
Slide 25: Consolidated: Medium-term Management Plan Target (by Business Segments)
Consolidated: Medium-term Management Plan Target (by Business Segments) 1 Cloud Integration Business 2 Cloud Service Business 3 License & Products Business bil. yen bil. yen bil. yen CAGR CAGR 30.0 300億円 35% 25.0 250億円 80.0 800億円 11％ 75.0 750億円 14％ 27.3 273億円 CAGR 35% 10% 22.0 220億円 709億円 70.9 246億円
Slide 26: ARPU: Accelerating the Cloud Solution / Service
ARPU: Accelerating the Cloud Solution / Service No change in expansion on triaxial by Horizontal × Vertical × Managed Industry Industry F M MT P i common focus n t a u n e e d l u a r u i e b a c l a. Horizontal Solutions b. Vertical Solutions n i f c n a o i e g c m c Industry Telecom Modern workpl
Slide 27: Synergies with NEXTSCAPE
Synergies with NEXTSCAPE [JBS] M365/D365/Infrastructure × [NS] Agile Development / App Development Roll-out to Both Customers Company A JBS Customers JBS Company B Maximize the value of cloud-based １ 2 3 Microsoft implementation NEXTSCAPE Company C Customers Company D Promotion of In-house Service S
Slide 28: NEXTSCAPE's Solutions
NEXTSCAPE's Solutions Track record in agile development focused on Azure and MR combined with the development of in-house solutions Apps Azure Development Mixed Reality Azure-based agile development Smartphone & tablet apps Adoption of TV/STB app xR development development Mob Service for Azure Supp
Slide 29: Human capital management
Human capital management Continued aggressive recruitment including NEXTSCAPE Set up specific targets for D&I Recruitment Building a framework for growth Target number of Target number of Enhancing HR for new graduate Mid-career HR portfolio Architecture/AppDev/Security Keep Low-retirement rate（22/9
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 NEF I/OI—E&, BLBVT<
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