Slide 1: Presentation Materials for the Earnings Briefing
Presentation Materials for the Earnings Briefing for the Fiscal Year Ended March 31, 2021 May 25, 2021
Slide 2: Table of contents
2 1 Overview of Consolidated Financial Results for FY3/21 2 Business Topics for FY3/21 Table of 3 Growth Strategies: Review and Future Development contents 4 Consolidated Earnings Forecast for FY3/22 and Other Information 5 Group Overview and Business Activities
Slide 3: Overview of Consolidated Financial Results for FY3/21
3 Overview of Consolidated Financial Results for FY3/21
Slide 4: Summary of consolidated financial results
4 Summary of consolidated financial results Sales: Firm ASP service (monthly fees) sales, but total sales below plan due to decline in new customers Shalom Business Profit: Expenses decreased because of teleworking, cancelation of events, business travel restrictions and other reasons Sales: Contrac
Slide 5: Consolidated balance sheet
5 Consolidated balance sheet Property, plant and equipment increased because of the relocation of the Tokyo office Current liabilities decreased because of tax payments and other reasons (Thousands of yen, %) FY3/21 FY3/20 Change % Change Notes (Mar. 31, 2021) (Mar. 31, 2020) Cash and deposits (105)
Slide 6: Operating results of the Shalom Business
6 Operating results of the Shalom Business (Thousands of yen, %) YoY YoY FY3/21 FY3/20 Notes Change % Change Net sales 1,897,373 1,771,842 +125,531 +7.1% (ASP service) ・Basic Plan 438 million yen (+3.8%) Cloud service 1,787,781 1,658,019 +129,762 +7.8% ・House Plan 485 million yen (+12.2%) ・ Shalom C
Slide 7: Operating results of the CuBe Business
7 Operating results of the CuBe Business (Thousands of yen, %) YoY YoY FY3/21 FY3/20 Change % Change Notes Net sales 541,700 608,774 (67,073) (11.0)% Breakdown of contracted developments: Contracted Develop-and-deliver projects 495,912 564,149 (68,236) (12.1)% 292 million yen (-18.3%) development Ma
Slide 8: Business Topics for FY3/21
8 Business Topics for FY3/21
Slide 9: Sales promotion activities for labor and social security attorney offices
9 Sales promotion activities for labor and social security attorney offices Online seminars for labor and social security attorneys (34 times), and Shalom user meetings (Online + On-site) (9 times) April and May 2020 July 2020 August and September 2020 Seminar for labor and social security attorneys
Slide 10: Online seminars (April 2020 – March 2021)
10 Online seminars (April 2020 – March 2021) More than 3,700 people have attended nationwide online seminars since April The seminars are very popular as a way for people anywhere in Japan to participate in these events with ease. Many seminars are planned for labor and social security attorneys and
Slide 11: Sales promotion activities for general corporations
11 Sales promotion activities for general corporations Participated in the online event of the Revival Management Forum Secretariat and co-hosted online seminars Total of 211 professionals from the personnel and general affairs divisions of major companies attended the co-hosted online seminars. MKS
Slide 12: Target markets and market shares (1)
12 Target markets and market shares (1) Labor and Social Security Attorney Office Market End-Mar 2021 Large-scale offices Offices with our systems introduced*2 2,602 offices (10 or more workers) 2,963 offices YoY change Up 108 offices Other Our market share 9.8% 14,761 offices Small- to medium-scale
Slide 13: Target markets and market shares (2)
13 Target markets and market shares (2) General Corporate Market 62,820 companies with 100 or more 5,000 or more employees employees 636 companies 2,000 to less than 5,000 employees 1,375 companies End-Mar 2021 1,000 to less than 2,000 employees Introductions in 2,454 companies 300 to less than 1,00
Slide 14: Trends in services for labor and social security attorneys
14 Trends in services for labor and social security attorneys Users of the mainstay products are increasing steadily. Basic Plan House Plan Lite Plan 1,600 1,390 1,426 1,400 1,341 1,407 1,291 1,200 1,000 800 694 653 591 600 549 467 424 400 371 288 255 200 186 0 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21
Slide 15: Trends in services for labor and social security attorneys
15 Trends in services for labor and social security attorneys Users of accessories are increasing steadily. MYNABOX eNEN 1,800 1,704 1,601 1,657 1,600 1,429 1,400 1,347 1,200 1,000 800 600 400 200 118 0 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21
Slide 16: Trends in services for general corporations
16 Trends in services for general corporations As the government is promoting online one-stop social security and tax procedures, the number of systems introduced by general corporations is showing an increasing trend. Number of corporate customers 160 148 137 140 109 120 100 87 80 66 60 40 20 0 FY3
Slide 17: IR news
17 IR news May 1, 2020 Redesign of the Shalom Company Edition Logo May 8, 2020 Notice of Establishment of the Shalom National Organization and Website May 21, 2020 Notice of Change in Format of the FY3/20 Financial Results Meeting June 1, 2020 Notice Concerning the “#Remote Work for Business Partner
Slide 18: Growth Strategies: Review and Future Development
18 Growth Strategies: Review and Future Development
Slide 19: FY3/21 business segment strategy review
19 FY3/21 business segment strategy review Shalom Business: CuBe Business: Market-specific strategies Service-specific strategies Maintained a Demand remains Labor and social security stable revenue Contracted development very strong attorney market stream type semi-customized Improved profit servic
Slide 20: Shalom Business: Market overview
20 Shalom Business: Market overview Overview of the current market In terms of the number of labor and social Given that our market share is 9.8%, there is a 670,000 security attorney offices: large market waiting to be tapped. 3,850,000×30% In terms of the number of companies involved by The number
Slide 21: Shalom Business: Market-specific strategies (general corporations)
21 Shalom Business: Market-specific strategies (general corporations) Promote market-specific strategies (General corporations) corporate Expand the customer base Approx. Expand the range of service 1,160,000 offerings Strengthen the tuning support companies service Enrich service offerings Strength
Slide 22: CuBe Business: Service-specific strategies
22 CuBe Business: Service-specific strategies Service-specific strategies Contracted development type semi-customized services → Continue stable operation as a key revenue driver by: Steadily improving and maintaining existing systems for existing customers Efficiently developing services with the c
Slide 23: Consolidated Earnings Forecast for FY3/22 and Other Information
23 Consolidated Earnings Forecast for FY3/22 and Other Information
Slide 24: Consolidated earnings forecast
24 Consolidated earnings forecast Sales: Demand of systems to support diverse work styles is expected to grow in line with the “digital government initiatives” and “work style reform.” Shalom Business Costs: Profit expected to remain flat due to higher expenses caused by increase in labor cost for s
Slide 25: Earnings forecast by segment: Shalom Business
25 Earnings forecast by segment: Shalom Business (Millions of yen, %) FY3/22 FY3/21 YoY YoY Forecast Actual Change % Change For sales to labor and social security Net sales 2,282 1,897 +384 +20.3% attorneys, forecast steady growth as in prior years while proceeding with migration to Cloud services 2
Slide 26: Earnings forecast by segment: CuBe Business
26 Earnings forecast by segment: CuBe Business (Millions of yen, %) FY3/22 FY3/21 YoY YoY Forecast Actual Change % Change Forecast no change in contracted development Net sales 610 541 +68 +12.6% sales, with many system improvement and maintenance projects. The cloud services Contracted development
Slide 27: Dividend forecast for FY3/22
27 Dividend forecast for FY3/22 Our earnings distribution policy is to pay dividends while placing emphasis on the consistent distribution of earnings to shareholders. The FY3/21 dividend is based on this earnings distribution policy. (Yen) 20.0 Annual dividend per share after adjustment 60.0% Payou
Slide 28: Group Overview and Business Activities
28 Group Overview and Business Activities
Slide 29: Company profile
29 Company profile ◆Company name MKSystem Corporation ◆Business ・ The Shalom Business The business of providing software to support business processes associated with social insurance and labor insurance as a cloud service provider. ・ The CuBe Business The business of developing and providing front-
Slide 30: Summary of the Group’s lines of business
30 Summary of the Group’s lines of business • Provision of cloud services including software to support business processes associated with social insurance, labor insurance, and payroll • Provision of cloud services with applications aimed at clients of labor and social security ASP service attorney
Slide 31: Our mainstay service (Shalom)
31 Our mainstay service (Shalom) Database for IDC Clients of Labor (Internet Data Center) Employee Client and Social Security Database Database Attorney Office Client Company Labor and Social Security Attorney Office Administrative Agencies (Shalom) ⃝ Social insurance procedure Public Employment ⃝ A
Slide 32: Our mainstay service (MYNABOX)
32 Our mainstay service (MYNABOX) Operation Login Labor and authentication API Linkage Social Security Decryption key Print Shalom Attorney Various legal forms Electronic application Outsource Register/Cross-check/ View history Shalom Login Database authentication API Reference • Referring app • Ope
Slide 33: Our mainstay service (Shalom Company Edition)
33 Our mainstay service (Shalom Company Edition) Intra-company personnel management system Company Administrative Database Agency Automatic generation of necessary procedures Electronic Employee application Database CSV DATA Application Application processing on forms Procedure Employment Shalom Sta
Slide 34: Our mainstay service (DirectHR)
34 Our mainstay service (DirectHR) Centralized management using the cloud for all applications submitted by employees during their entire time at the company, including for events like childbirth. Smartphones and PCs can be used for applications. Handles everything from data input to e- applications
Slide 35: Our mainstay service (eNEN) (1)
35 Our mainstay service (eNEN) (1) Fully supporting year-end tax adjustment operations by reducing tax filling input and implementing progress management function Division in charge of operation Tax filer Accurate & efficient! Simple & easy! Following up is easy because we can keep track of the
Slide 36: Our mainstay service (eNEN) (2)
36 Our mainstay service (eNEN) (2) Fully supporting year-end tax adjustment operations by reducing tax filling input and implementing progress management function 1. It makes the operation easy to understand! Enhanced control with authority settings The screen guides you “what to do,” “when to do,”
Slide 37: A new mainstay service (Cloud Pocket)
37 A new mainstay service (Cloud Pocket) NEW! For the safe and easy distribution and receipt of official documents. Greatly simplifies the distribution of job separation forms, benefit receipt qualification confirmation notices, workplace accident forms and other official forms as well as important
Slide 38: Our mainstay services (Contracted development type semi-customized services)
Our mainstay services 38 (Contracted development type semi-customized services) Jinzai CuBe Shugyo CuBe Human resource profile Attendance management Target and performance management Self-assessment CuBe Employee profile inquiry Business process event guidance Salary / bonus detail inquiry Private B
Slide 39: Our mainstay service (GooooN)
39 Our mainstay service (GooooN) evaluation and training tool that you can use on-site on a day-to-day basis, The latest crystalizing know-how that has been used by large companies for over 20 years. GooooN coordinates the above three business operations, deepens communication with employees, and su
Slide 40: We provide cloud solutions that benefit you
40 “We provide cloud solutions that benefit you” The plans, estimates and other forward-looking statements contained in this material are forecast based on information available at the time this material was prepared, and these statements include risk and uncertainty. Actual performance may differ f