Cybertrust Japan Co.ltd. · TSE:4498
Cybertrust Japan Co.ltd — Q3 FY2023 Earnings Presentation
49 slides from Cybertrust Japan Co.ltd's earnings presentation, Jan 30, 2024
Slide 1: FY2023 Q3 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 Q3 Financial Results Third Quarter of the Fiscal Year Ending March 31, 2024 C
Slide 2: Executive Summary
▌Executive Summary FY2024 Q3 Financial Results Increase in both sales and profit compared to the same period of the previous year (Nine months) Achieved record high net sales and operating income for the third quarter Revision of Revised downward as Linux/OSS Services and IoT Services failed to perf
Slide 3: Agenda
◼ FY2023 Q3 Financial Summary Agenda ◼ Overview by Service Segment Authentication and Security Services Linux/OSS Services IoT Services ◼ FY2023 Full-Year Forecast ◼ Appendix 3 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 4: FY2023 Q3 Financial Summary
◼ FY2023 Q3 Financial Summary ◼ Overview by Service Segment Authentication and Security Services Linux/OSS Services IoT Services ◼ FY2023 Full-Year Forecast ◼ Appendix 4 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 5: FY2023 Q3 Consolidated Results (9 months)
▌FY2023 Q3 Consolidated Results (9 months) Achieved record high Q3 net sales and operating income 4,624 million yen Net sales rose 4.2% YoY to Operating income increased 5.1% YoY to 694 million yen (Unit: Millions of yen) FY22 Q3 FY23 Q3 YoY Change Net sales 4,438 4,624 +4.2% Operating income 660 69
Slide 6: Trend in Quarterly Sales by Transaction Type
▌Trend in Quarterly Sales by Transaction Type Growth driven by Record high Q3 recurring service sales ratio of 65.1% high growth-driver services (Millions of yen) Professional services 1,729 1,661 1,643 Licenses 1,560 1,536 1,537 Recurring services 1,468 1,468 1,443 1,408 490 1,367 427 497 1,234 401
Slide 7: Sales by Service Segment
▌Sales by Service Segment ◼ Authentication and Security: Double-digit YoY growth with accumulation of recurring services centered on high-growth-driver service iTrust ◼ Linux/OSS: Number of contracts on the rise despite delay in sales promotion activities for AlmaLinux support and CentOS7 extended s
Slide 8: Overview by Service Segment
◼ FY2023 Q3 Financial Summary ◼ Overview by Service Segment Authentication and Security Services Linux/OSS Services IoT Services ◼ FY2023 Full-Year Forecast ◼ 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 Services net sales FY22 Q3 FY23 Q3 YoY Change Recurring services sales up 9.4% (Sales by transac
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) 7,453,967 Number of uses: 7.45 million per quarter *Continuing from Q2, identity verification using Individual Number Cards grew due to benefits started by spe
Slide 11: Initiatives to Expand Scope of Use of iTrust (Identity Verification)
▌Initiatives to Expand Scope of Use of iTrust (Identity Verification) Multiple examples of adoption by major banks Identity verification anywhere Launched identity verification for account opening at Identity verification now possible with PCs and tablets in megabanks and major online banks in colla
Slide 12: Progress on Expanding Scope of Use of iTrust
▌Progress on Expanding Scope of Use of iTrust Launch of new Launch of Integration overseas use of Individual NISA Number Cards and Q4 and of Individual Number program Cards health insurance on card ⚫ Identity verification: Adoption by multiple major Present banks Q3 ⚫ Identity verification: Identity
Slide 13: Linux/OSS Services
◼ FY2023 Q3 Financial Summary ◼ Overview by Service Segment Authentication and Security Services Linux/OSS Services IoT Services ◼ FY2023 Full-Year Forecast ◼ Appendix 13 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 14: Linux/OSS Services | Performance and Initiatives by Service Segment
▌Linux/OSS Services | Performance and Initiatives by Service Segment Focus on sales promotion activities to acquire CentOS7 extended support contracts (Unit: Millions of yen) Linux/OSS Services net Recurring service sales (by transaction FY22 Q3 FY23 Q3 YoY Change type) ◼ Sales promotion activities
Slide 15: Linux Support Market Size
▌Linux Support Market Size Size of market for CentOS7 extended CentOS Extended Support LITE service for support for small and medium-sized small and medium-sized businesses businesses Number of CentOS7 installations at private companies ⚫ Can be provided from 1 server * ⚫ Sustainable pricing 219,100
Slide 16: AlmaLinux Progress and Initiatives
▌AlmaLinux Progress and Initiatives Issue of source code access restrictions in developing OS compatible with RedHat amicably resolved Foothold for AlmaLinux expansion in Asia Community board member appointment World’s first event in Tokyo Signed distributorship agreement with Our OSS Technology Dir
Slide 17: IoT Services
◼ FY2023 Q3 Financial Summary ◼ Overview by Service Segment Authentication and Security Services Linux/OSS Services IoT Services ◼ FY2023 Full-Year Forecast ◼ Appendix 17 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 18: IoT Services | Performance and Initiatives by Service Segment
▌IoT Services | Performance and Initiatives by Service Segment Delay in developing collaborative partners necessary for handling projects (Unit: Millions of yen) IoT Services net sales Increase in sales of recurring services (Sales by transaction type) FY22 Q3 FY23 Q3 YoY Change ◼ EMLinux adopted by
Slide 19: Environment Surrounding IoT Supply Chain Security and Initiatives
▌Environment Surrounding IoT Supply Chain Security and Initiatives International safety standards materialize into industry-specific laws and regulations Our products and services addressing international safety standards ahead of competition International safety standards apply to companies Utiliza
Slide 20: FY2023 Full-Year Forecast
◼ FY2023 Q3 Financial Summary ◼ Overview by Service Segment Authentication and Security Services Linux/OSS Services IoT Services ◼ FY2023 Full-Year Forecast ◼ Appendix 20 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 21: Revision of FY2023 Full-Year Forecast
Revision of FY2023 Full-Year Forecast Full-year forecast revised downward based on Q3 results and full-year outlook (Unit: Millions of yen) ◼ Authentication and Security Services expected to perform FY23 FY23 Vs initial forecast according to initial forecast due to iTrust growth Initial Unit: Millio
Slide 22: FY2023 Dividend Forecast
▌FY2023 Dividend Forecast Even after the revision of the full-year forecast, 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 div
Slide 23: Appendix
◼ FY2023 Q3 Financial Summary ◼ Overview by Service Segment Authentication and Security Services Linux/OSS Services IoT Services ◼ FY2023 Full-Year Forecast ◼ Appendix 23 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 24: Numeric data
Numeric data 24 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 25: 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 26: 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 27: 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 28: Corporate Information
Corporate Information 28 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 29: 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 30: 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 31: History
History On October 1, 2017, we (former MIRACLE LINUX Corporation) as the surviving company completed an absorption-type merger with former Cybertrust Japan co., Ltd. and name change of and commenced operations as Cybertrust Japan co., Ltd. Year and month Summary MIRACLE LINUX CORPORATION is establis
Slide 32: History and Targets
History and Targets The history of the former Cybertrust Japan co., Ltd. since its establishment until its mergered is as follows Year and month Summary Sep. 1995 NSJ Corporation established to develop software May, 1999 Contracted as the sole Japanese distributor of Baltimore Technologies Plc ("Bal
Slide 33: 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 o
Slide 34: Policies and Indicators and Targets
Policies and indicatorsators and Targets We have established KPI (evaluation indicators) for the following two of the four materiality items in the strategic plan. Materiality KPI (Valuation Indicators) Percentage of female employees in managerial positions: Achieved at least 8.2% (at least average
Slide 35: Business Overview
Business Overview 35 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 36: 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 37: 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 38: 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 39: 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 40: 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 41: Glossary ①
▌ Glossary ① Term Description Digitized identity certificates that properly certify and identify targets. These certificates verify the authenticity of digital certificate people, goods, etc. by examining and issuing them by a certification authority as a reliable third-party organization. Preventin
Slide 42: 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 Client certificate user as the authorized user. There are two main types: User certificates and device certificates. Issued to information devices suc
Slide 43: 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 44: 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 What is FIPS 140-3? Institute of Standards and Technology) that was certified in March 2019. Functions as a standard for realizing
Slide 45: 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 46: Product and Service Introduction Pages
▌ Product and Service Introduction Pages Product and service introduction page URL CyberTrust Japan 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.cyber
Slide 47: Press Release List (FY23 Q3~)
▌ Press Release List ( FY23 Q3～ ) 10.03 10.04 11.01 11.14 SBOM-compliant supply chain security Cybertrust Achieves Record Share of Cybertrust's iTrust Remote Signature Cybertrust Offers SIOTP Client enhancement and EV SSL/TLS Server Certificate Market in Service Time-Stamping Function Manager for De
Slide 48: 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 49: Security and Trust
Security and Trust Copyright Cybertrust Japan Co., Ltd. All rights reserved. 49 Copyright Cybertrust Japan Co., Ltd. All rights reserved.