Freebit Co., Ltd. · TSE:3843

Freebit — Q3 FY2024/04 Earnings Presentation

38 slides from Freebit's earnings presentation, Mar 8, 2024

  1. Slide 1: Financial Results for the Third Quarter FY2024/04

    Notice: This document was prepared by machine translation, and no manual modification has been made to the translated contents. This document is to be used only as a reference, and in cases any differences occur between English version and the original Japanese version, the Japanese version shall pr

  2. Slide 2: Agenda

    Agenda 1. Financial Results for the Third Quarter of FY2024/04 ･････ 3 Financial Results by segment for the Third Quarter 2. of FY2024/04 ･････ 14 3. “SiLK VISION 2024” Landing Forecast ･････ 33 4. Appendix ･････ 38 FreeBit Co., Ltd. All Rights Reserved. 2

  3. Slide 3: 1. Financial Results for the Third Quarter of FY2024/04

    1. Financial Results for the Third Quarter of FY2024/04 FreeBit Co., Ltd. All Rights Reserved. 3

  4. Slide 4: Impact of change in fiscal year-end of consolidated subsidiaries

    Impact of change in fiscal year-end of consolidated subsidiaries (GIGAPRIZE and its subsidiaries) ◼ GIGAPRIZE Group (GPG) changed the date of its fiscal year-end from March 31 to April 30, the same as our consolidated fiscal year-end. As a result, the consolidated subsidiaries in the current fiscal

  5. Slide 5: Summary of Consolidated Financial Results for the Third Quarter of FY2024/04

    Summary of Consolidated Financial Results for the Third Quarter of FY2024/04 FY2024/04 Q3 (Reference) FY2024/04 Q3 (Including the impact of the change (Excluding the impact of the change FY2023/04 in the fiscal year-end) in the fiscal year-end)*2 (Millions of yen) Percentage Q3 Percentage Increase/

  6. Slide 6: Topics for the Third Quarter of the Fiscal Year Ending April 30, 2024

    Topics for the Third Quarter of the Fiscal Year Ending April 30, 2024 • Net sales increased 16.9% year on year due to scale expansion in FreeBit B2B2X(B/C) Mobile Services in the 5G Infrastructure Support Business, progress in acquiring customers (including overseas customers) in Affiliate Services

  7. Slide 7: YoY Variance Analysis Net Sales

    YoY Variance Analysis Net Sales Sales increased 16.9% year on year (excluding the impact of the change in the fiscal year end: 11.8% year on year), due to solid performance in all segments, mainly in the Affiliate Business of the Corporate and Creator 5G DX Support Business. Corporate and Creator 5G

  8. Slide 8: YoY Variance Analysis Operating Income

    YoY Variance Analysis Operating Income While implementing strategic investments, all segments remained solid, mainly in 5G Lifestyle Support Business. As a result, actual results increased by 47.4% year on year and base income increased by 38.0%.(Excluding the impact of the change in the fiscal year

  9. Slide 9: Breakdown of strategic investment for FY 2023 and FY 2024

    Breakdown of strategic investment for FY 2023 and FY 2024 Continuous implementation of strategic investments, including acquisition of "TONE" and "TONE Labo" users for 5G lifestyle support business and promotion of businesses in the incubation zone (Millions of yen) 5G Infrastructure Support Busines

  10. Slide 10: YoY Difference Analysis Ordinary Income

    YoY Difference Analysis Ordinary Income Due to strong base profit, actual results increased by 54.9% year on year and base profit increased by 43.5%.(Excluding the impact of the change in the fiscal year-end: Base profit up 32.8%) (Millions of yen) TOB related Gain on sales GPG actual Strategic Base

  11. Slide 11: YoY Variance Analysis Quarterly net income attributable to owners of the parent

    YoY Variance Analysis Quarterly net income attributable to owners of the parent Increased by 73.2% YoY due to increase in ordinary income, etc. (Excluding the impact of the change in the fiscal year-end: up 63.7%) Gain on sales of Increase in tax (Millions of yen) investment expense Increase in GPG

  12. Slide 12: Consolidated Results Summary BS

    Consolidated Results Summary BS Shareholders' equity ratio increased to 30.5% due to an increase in retained earnings resulting from solid performance and a reduction in interest-bearing debt (Millions of yen) Current Current Liabilities Assets Liabilities Assets 30,640 24,894 29,501 21,343 Cash Cas

  13. Slide 13: Net Sales and Operating Income per Employee

    Net Sales and Operating Income per Employee Net sales and operating income (base profit) per employee are expected to increase from the previous fiscal year (Thousands of yen) SiLK VISION SiLK VISION SiLK VISION FY2021 SiLK VISION 2013 2016 2020 /04 2024 60,000 10,000 Net sales per capita 40,000 Ope

  14. Slide 14: 2. Financial results by segment for the Third Quarter of FY2024/04

    2. Financial results by segment for the Third Quarter of FY2024/04 FreeBit Co., Ltd. All Rights Reserved. 14

  15. Slide 15: Composition by segment

    Composition by segment Revenues and profits increased in all segments: 5G Infrastructure Support Business, 5G Lifestyle Support Business, and Corporate and Creator 5G DX Support Business 5G Infrastructure Corporate and creator Support Business 17.7% Net sales Segment profit or loss 5G DX Support Bus

  16. Slide 16: Performance Progress: 5G Infrastructure Support Business (Mobile Revolution Area)

    [Performance Progress] 5G Infrastructure Support Business (Mobile Revolution Area) SiLK VISION 2020 SiLK VISION 2024 SiLK VISION 2027 SiLK VISION 2030 Corporate and Creator 5G DX Support Business Creator Maker (StandAlone) Bizmodel Maker (4.0) 5G Lifestyle Support Business 5G Workstyle / 5G Healthst

  17. Slide 17: 5G Infrastructure Support Business: Performance Progress

    5G Infrastructure Support Business : Performance Progress B2B2X(B/C) Operating income increased 13.5% year on year due to increase in use of B2B2X(B/C) mobile services, despite decrease in use of fixed network services and increase in personnel expenses (compared to the base) 4,000 Net Sales and Seg

  18. Slide 18: 5G Infrastructure Support Business Topics

    5G Infrastructure Support Business Topics Cultivate a broader range of new customers such as startups Continuous announcement of construction of direct sales system and provision of new services ● Develop ICT-packaged products "freebit ● Continuous launch of ICT services for corporations Business”,

  19. Slide 19: Future Strategic Image

    Future Strategic Image Pre 5G/Pre web3 Core 5G/Core web3 5G system web3(DAO) Industrial 5G Homestyle 5G Lifestyle 5G Healthstyle freebit Business Service 5G 5G Related services Blockchain freebit web3 Blocks (B2B direct sales) (Powered by CountUp) Unique management (Showroom) Platform Maker (5G) /we

  20. Slide 20: "IP everywhere" Interview articles

    “IP everywhere" Interview articles “freebit Business” initiatives’ first phase “IP everywhere” published interview-article ranked No. 1 in weekly access on the third day of public offering ● "IP everywhere" interview article ● Interview article ranked No. 1 in weekly access on "Users of Fixed IP Ser

  21. Slide 21: 5G Lifestyle Support Business: Performance Progress

    5G Lifestyle Support Business: Performance Progress Operating income increased 52.9% year on year due to solid 5G Homestyle and improved profit in TONE business (compared to the base) (excluding the impact of the change in the fiscal year end: increased 32.5% year on year) Net Sales and Segment Inco

  22. Slide 22: 5G Lifestyle Support Business: Performance Progress

    5G Lifestyle Support Business: Performance Progress The number of units provided for ISP services for apartment buildings, a key indicator of 5G Homestyle(GPG), was steady, increasing by 106,000 units compared to the end of the previous fiscal year to a cumulative total of 1,157,000 units FY2024/04

  23. Slide 23: 5G Lifestyle Support Business Topics

    5G Lifestyle Support Business Topics Leveraging our expertise in developing new products and ISP services for apartment buildings, we will horizontally expand into existing markets and develop new markets. ● Utilizing the expertise cultivated in ISP services for apartment buildings, implement develo

  24. Slide 24: 5G Lifestyle Support Business Topics

    5G Lifestyle Support Business Topics Announced on December 8, 2023, web3 stakeholder community demonstration tests “One Vision” launched “TONE Coin” real-value exchange for customers Real value exchange began on February 1, 2024 TONE users At the beginning of the service, “ 1 Tone Coin” exchanges 10

  25. Slide 25: Changes in the number of TONE Chain nodes

    Changes in the number of TONE Chain nodes “Real value exchange for TONE Coin” Since its announcement, the number of TONE Chain nodes has further increased. Even after the real value exchange began, the number continues to be steady. Transition of TONE Chain nodes *User nodes, Partner nodes, etc. Tot

  26. Slide 26: World ranking in the number of nodes of Layer 1 blockchain

    World ranking in the number of nodes of Layer 1 blockchain Announced TONE Coin expanded to third in the world, today in terms of the number of nodes used by users (as of March 2024, according to own research) ※ The number of Nodes per Blockchain varies from day to day. Bitcoin • Point system using E

  27. Slide 27: Performance Progress: Corporate and Creator 5G DX Support Business

    [Performance Progress] Corporate and Creator 5G DX Support Business (Production Revolution Area) SiLK VISION 2020 SiLK VISION 2024 SiLK VISION 2027 SiLK VISION 2030 Corporate and Creator 5G DX Support Business Creator Maker (StandAlone) Bizmodel Maker (4.0) 5G Lifestyle Support Business 5G Workstyle

  28. Slide 28: Corporate and Creator 5G DX Support Business: Performance Progress

    Corporate and Creator 5G DX Support Business：Performance Progress Operating income increased 46.7% year on year due to higher net sales and gross profit with strong performance in the Affiliate Business, and with the impact of PMI following the conversion of FS to a wholly owned subsidiary. Net Sale

  29. Slide 29: Corporate and Creator 5G DX Support Business Topics

    Corporate and Creator 5G DX Support Business Topics Progress in development of new artists' services StandAlone Aiming to form a fan community in 5G/web3 era ● Through development and demonstration tests, artists are expanding horizontally, such as selling tickets and goods using platforms and imple

  30. Slide 30: "One Vision" progress

    “One Vision" progress December 8, 2023 announced Web3 demonstration tests of stakeholder communities Shareholder-oriented initiatives progress of “One Vision” Shareholders Employees World’s third largest layer 1 blockchain Customers 30

  31. Slide 31: "One Vision" progress: shareholder return roadmap

    “One Vision" progress Regarding the shareholder return measure of “One Vision”, Announced today a roadmap has been announced to provide the service for shareholders as of the end of April 2024 ● Announcement of roadmap on "One Vision” ● "One Vision" Shareholder Benefits as a shareholder-return measu

  32. Slide 32: 3. "SiLK VISION 2024" Landing Forecast

    3. "SiLK VISION 2024" Landing Forecast FreeBit Co., Ltd. All Rights Reserved. 32

  33. Slide 33: Progress of Consolidated Financial Results for FY 2024/04

    Progress of Consolidated Financial Results for FY 2024/04 Strong performance against forecast after upward revision (announced on December 8, 2023). Q4 is also expected to progress as planned Q3 Full year cumulative Earnings results Forecasts (Upward Revision) Net sales 75.5% 39.99 53 billion billio

  34. Slide 34: Medium-term management plan "SiLK VISION 2024"

    Medium-term management plan "SiLK VISION 2024" As a result of the three-year medium-term management plan, the performance targets for the final year of the plan are expected to exceed net sales of 50 billion yen and operating income of 5 billion yen, and the forecasts are for net sales of 53 billion

  35. Slide 35: Toward "SiLK VISION 2027"

    Toward "SiLK VISION 2027" In the current fiscal year, as the second [Transformation Term] toward SV2027, we also conducted a strategic reexamination. In SV2027, lifted the ban on M&A and expanded the strategic portfolio Setup Implementation 500/50 Retry (No Acquisition/Business Investment) (Social I

  36. Slide 36: Disclaimer

    Disclaimer Forward-looking statements in this document, including our forecasts, goals, targets, plans and strategies, are based on information that we believe to be reasonable at the time of preparation of this document. Actual results and targets may differ materially from these forecasts and targ

  37. Slide 37: 4. Appendix

    4. Appendix FreeBit Co., Ltd. All Rights Reserved. 37

  38. Slide 38: Explanation of the Three Revolution Areas and Each Business

    Explanation of the Three Revolution Areas and Each Business Mobile revolution area 5G Infrastructure Support Market potential In order to solve various social Business 5G related market for the domestic industry is 210.6 problems, such as environmental billion yen, IoT market is 10.2 trillion yen. W

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