Japan Business Systems, Inc. · TSE:5036
Japan Business Systems — 1H FY2024/9 Earnings Presentation
30 slides from Japan Business Systems's earnings presentation, May 14, 2024
Slide 1: FY 2024/9 1H Financial Results
FY 2024/9 1H Financial Results 2024 / 5 / 14
Slide 2: Contents
Contents ￭ The Business Environment for FY2024/9 1H 3 ￭ FY2024/9 1H Consolidated Financial Results 4 ￭ FY2024/9 1H Business Status by Segment 8 ￭ FY2024/9 Consolidated Financial Forecast 15 ￭ Progress of Medium-Term Management Plan 18 and future measures ￭ Appendix 24 2
Slide 3: The Business Environment for FY2024/9 1H
The Business Environment for FY2024/9 1H Customer Trends Manufacturer Trends Areas of Focus Cloud-Enabled DX Generative AI Strengthening Investment Intensifies Development Race in Growth Areas • M365 adoption projects for • Copilot was launched last Nov. • Strengthening Investment in major companies
Slide 4: FY2024/9 1H Consolidated Financial Results
1 FY2024/9 1H Consolidated Financial Results / /
Slide 5: FY2024/9 1H Consolidated Financial Results (Summary)
FY2024/9 1H Consolidated Financial Results (Summary) Sales and operating profit increased Profit decreased due to extraordinary losses resulting from the revision of the NEXTSCAPE’s business plan FY2023/9 1H FY2024/9 1H Net increase from Percent change FY2024/9 1H previous period from previous Conso
Slide 6: Company Performance
Company Performance Business environment remained robust with both net sales and operating profit increasing （ Millions of yen ） 1H 2H 1H 2H （ Millions of yen ） 1H 2H 1H 2H Operating margin 6,000 4.7% 4.6% 120,000 112,800 3.7% 5.0% 5,000 3.0% 100,000 86,325 4,052 4,192 115.7% 113.4% 1.0% （YoY） 4,000
Slide 7: Analysis of Factors Contributing to Changes in Operating Profit
FY2024/9 1H Consolidated Financial Results (Analysis of Factors Contributing to Changes in Operating Profit) Despite delays in improving profitability in the Cloud Integration Business, sales growth and improved profitability in the Cloud Service Business and License & Products Business compensated
Slide 8: FY2024/9 1H Business Status by Segment
FY2024/9 1H 3 Business Status by Segment / /
Slide 9: Cloud Integration Business
FY2024/9 1H Business Status by Segment (Cloud Integration Business) Increase in the number of projects due to strengthening the engineer skills system the previous fiscal period Segment profit growth was sluggish due to the postponement of some projects, but this is expected to be resolved by the en
Slide 10: Efforts to meet new demand: Generative AI
Efforts to meet new demand: Generative AI Support for both horizontal and vertical AI technical assistance First, we will help customers to learn about the usefulness of AI in the horizontal domain, and then we will help them to use AI in the vertical domain as well Horizontal Vertical STEP 0 STEP 1
Slide 11: Cloud Service Business
FY2024/9 1H Business Status by Segment (Cloud Service Business) Sales growth due in part to customers' increasing use of cloud computing In addition, expansion of managed services contributed significantly to improved profitability （ Millions of yen ） 1H 2H 1H 2H （ Millions of yen ） 1H 2H 1H 2H Segm
Slide 12: Efforts to meet new demand: Security
Efforts to meet new demand: Security Provide security services tailored to customers' business challenges Security Management Challenges A Unable to make an B Don't know the scope of C investment plan what needs to be addressed Inability to operate Threats to the business are Inability to manage sec
Slide 13: License & Products Business
FY2024/9 1H Business Status by Segment (License & Products Business) In license sales, gradual shift from expansion of user IDs to cultivation of existing customers Revenue and profits also increased from securing large-scale deals in sales, among other factors （ Millions of yen ） 1H 2H 1H 2H （ Mill
Slide 14: Efforts to meet new demand: Global
Efforts to meet new demand: Global Starting with global licensing and support projects for customers under contract with the head office in Japan, we will connect to local (country-specific) projects including cloud integration, and finally to regional (area) businesses to cover the entire world Mul
Slide 15: FY2024/9 Consolidated Financial Forecast
4 FY2024/9 Consolidated Financial Forecast / /
Slide 16: FY2024/9 Consolidated Financial Forecast
FY2024/9 Consolidated Financial Forecast Full-year forecasts remain unchanged from those disclosed at the beginning of the fiscal year Profit has been revised downward due to the impact of extraordinary losses FY2024 FY2024 Net increase FY2023 Results Net increase Percent change Revised forecast Pre
Slide 17: Dividend forecast
Dividend forecast In light of business conditions and dividend policy, the annual dividend forecast of 25 yen (up 5 yen YoY), remains unchanged. The interim dividend was 12 yen (up 2 yen YoY), as forecasted at the beginning of the fiscal period. Annual Annual Annual Dividend Payout ratio 配当性向 ROE 10
Slide 18: Progress of Medium-Term Management Plan and future measures
Progress of Medium-Term 5 Management Plan and future measures / /
Slide 19: Reconsidering operating profit targets for the fiscal year ending Sep. 2025
Reconsidering operating profit targets for the fiscal year ending Sep. 2025 Although sales are expected to be achieved ahead of schedule, the gap is large in terms of operating profit Reconsidering the targets to respond to changes in the market environment • Remote work ⇒ Shift to full-fledged clou
Slide 20: Major KPIs for Medium-Term Management Plan
Major KPIs for Medium-Term Management Plan (At the time of announcement in Nov. 2022) Expand business with the two wheels of cloud ID x ARPU*1 Number of cloud IDs in enterprise companies Scope of cloud coverage （Microsoft 365） at enterprise companies (ARPU) CAGR CAGR (2022－2025) 1,990K (2022－2025) 5
Slide 21: Progress of Medium-Term Management Plan: IDs
Progress of Medium-Term Management Plan ：IDs The number of Microsoft 365 IDs is far exceeding the target due to the transfer of domestic contracts and global bulk contracts Basic Strategy of the Medium-Term Management Plan “ID*” 2,323K Based on extensive knowledge and 2,390K (as of 24/3) support cap
Slide 22: Progress of Major KPI: ARPU
Progress of Major KPI：ARPU While the areas of support within customers are steadily expanding, Increased project unit price has not yet been achieved Urgent need to meet new demand Basic Strategy of the Medium-Term Management Plan “ARPU*” Up Sell Cross Sell Increased support for Power New demand In-
Slide 23: Medium-Term Plan Progress: Business Profit Structure
Medium-Term Plan Progress: Business Profit Structure In the engineer operation business (CI/CS), which has a large profit contribution, improving unit prices is an issue In parallel with expanding the skills of internal resources, promote skill complementation through partner collaboration CI / CS C
Slide 24: Appendix
5 Appendix / /
Slide 25: Company Performance (Trends in quarterly business performance)
Company Performance（Trends in quarterly business performance） Net Sales Operating Profit Operating margin （ Millions of yen ） （ Millions of yen ） 10.0% 40,000 4.9% 4.6% 5.0% 4.5% 4.7% 35,698 2,000 1.3% 5.0% 35,000 0.0% 30,487 30,000 28,053 1,513 -5.0% 25,883 1,500 -10.0% 1,330 25,000 23,154 23,459 1
Slide 26: Cloud Integration Business (Trends in quarterly business performance)
Cloud Integration Business（ Trends in quarterly business performance ） Net Sales Segment Profit Segment margin （ Millions of yen ） （ Millions of yen ） 7,000 6,406 1,600 14.8% 16.2% 18.5% 15.1% 20.0% 5,980 11.5% 12.4% 5,927 5,792 15.0% 6,000 5,653 1,400 10.0% 4,888 1,185 5.0% 5,000 1,200 0.0% 961 -5.
Slide 27: Cloud Service Business (Trends in quarterly business performance)
Cloud Service Business（ Trends in quarterly business performance ） Net Sales Segment Profit Segment margin （ Millions of yen ） （ Millions of yen ） 5,000 4,640 15.0% 15.1% 17.9% 20.0% 4,395 13.7% 12.5% 1,000 10.5% 3,987 3,964 10.0% 4,000 3,678 3,759 830 800 0.0% 665 3,000 596 -10.0% 600 503 468 2,000
Slide 28: License & Products Business (Trends in quarterly business performance)
License & Products Business（ Trends in quarterly business performance ） Net Sales Segment Profit Segment margin （ Millions of yen ） （ Millions of yen ） 30,000 1,000 3.6% 3.6% 3.7% 5.0% 26,143 2.3% 2.1% 1.9% 900 25,000 800 0.0% 20,113 724 20,000 700 17,429 582 15,832 600 531 -5.0% 14,584 509 15,000 1
Slide 29: 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 30: JBS
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