Slide 1: Fiscal Year Ended September 30, 2022 (Fourth Quarter) Financial Results Briefing Materials
Hybrid Technologies Co., Ltd. (TSE Growth Securities Code: 4260) Fiscal Year Ended September 30, 2022 (Fourth Quarter) Financial Results Briefing Materials November 14, 2022
Slide 2: Agenda
Hybrid Technologies Co., Ltd. (TSE Growth Securities Code: 4260) Highlights of the Fiscal Year Ended September 30, 2022 Financial Results Forecasts for the Fiscal Year Ending September 30, 2023 Topics from the Fourth Quarter Growth Strategy Overview of Company/Business 2 © 2022 Hybrid Technologies C
Slide 3: Executive Summary: Highlights of the Fiscal Year Ended September 30, 2022
Hybrid Technologies Co., Ltd. Executive Summary (TSE Growth Securities Code: 4260) Highlights of the Fiscal Year Ended September 30, 2022 ・Revenue increased 41% year-on-year, with revenue for stock services increasing by 50% year-on-year. ・Operating profit increased by 176 million yen year-on-year,
Slide 4: Financial Highlights
Hybrid Technologies Co., Ltd. Financial Highlights (TSE Growth Securities Code: 4260) ・The scale of existing projects expanded due to assignment of upstream process personnel, and revenue grew by 706 million yen (+41%) year-on-year. ・Due to the increase in revenue, gross profit rose 292 million yen
Slide 5: Changes by Quarter
Hybrid Technologies Co., Ltd. Changes by Quarter (TSE Growth Securities Code: 4260) ・Full-year revenue increased 41% year-on-year, with sales revenue of core stock services increase by 50% year-on-year. ・Actively assigning high-earning personnel to (especially pre-existing) projects contributed to s
Slide 6: Changes in Major KPIs
Hybrid Technologies Co., Ltd. Changes in Major KPIs (TSE Growth Securities Code: 4260) ・In the fiscal year ended September 2022, especially from July 2022 onward (the fourth quarter), we faced a slowdown in new stock service orders; our contracts mostly denominated in USD, prices in JPY equivalent i
Slide 7: Changes in Major KPIs
Hybrid Technologies Co., Ltd. Changes in Major KPIs (TSE Growth Securities Code: 4260) ・The average price per stock service increased significantly from last year 2.213 million yen to 3.269 million yen. ・As a result of actively assigning in high-earning personnel especially to pre-existing projects,
Slide 8: Operating Profit (Cumulative) Analysis
Hybrid Technologies Co., Ltd. Operating Profit (Cumulative) Analysis (TSE Growth Securities Code: 4260) ・Operating profit in all four quarters increased by 176 million yen (+158%) year-on-year. ・Along with the revenue, personnel expenses (+298 million yen) and outsourcing expenses (+116 million yen)
Slide 9: Balance Sheet and Cash Flows
Hybrid Technologies Co., Ltd. Balance Sheet and Cash Flows (TSE Growth Securities Code: 4260) ・The equity-to-asset ratio improved significantly from 43% to 72% year-on-year due to the public offering at the time of listing and the recording of profit. ・Cash and cash equivalents amounted 1.809 billio
Slide 10: Agenda
Hybrid Technologies Co., Ltd. (TSE Growth Securities Code: 4260) Highlights of the Fiscal Year Ended September 30, 2022 Financial Results Forecasts for the Fiscal Year Ending September 30, 2023 Topics from the Fourth Quarter Growth Strategy Overview of Company/Business 10 © 2022 Hybrid Technologies
Slide 11: Financial Results Forecasts for the Fiscal Year Ending September 30, 2023
Financial Results Forecasts for the Fiscal Year Ending September 30, 2023 Hybrid Technologies Co., Ltd. (TSE Growth Securities Code: 4260) ・Revenue is expected to grow 34% year-on-year, considering the improvement of proposal capabilities of upstream process personnel, new cybersecurity-related serv
Slide 12: Revenue Forecast
Hybrid Technologies Co., Ltd. Revenue Forecast (TSE Growth Securities Code: 4260) ･ Number and average price of stock services will increase due to flexible pricing measures, stronger proposal capabilities through personnel recruitment and acceleration of Hybrid Technologies Capital. ･ In the fiscal
Slide 13: Profit Forecast
Hybrid Technologies Co., Ltd. Profit Forecast (TSE Growth Securities Code: 4260) ･ Profit margins will improve, mainly by using more new graduate and upstream process personnel. ･ At the same time, we expect to invest in the development of internal systems that contribute to recruitment, education a
Slide 14: Revision of Major KPIs
Hybrid Technologies Co., Ltd. Revision of Major KPIs (TSE Growth Securities Code: 4260) ･ Considering that long-term stock services are the core of our profit structure, major KPIs have been revised starting the fiscal year ending September 2023 to more accurately and clearly show business progress.
Slide 15: Major KPI: Number of Stock Service Projects
Hybrid Technologies Co., Ltd. Major KPI: Number of Stock Service Projects (TSE Growth Securities Code: 4260) ･ As of the end of September 2022, there were 49 long-term stock service projects with contracts of six months or more. ･ In the fiscal year ending September 2023, we plan to have 55 stock se
Slide 16: Major KPI: Average Price Per Stock Service
Hybrid Technologies Co., Ltd. Major KPI: Average Price Per Stock Service (TSE Growth Securities Code: 4260) ･ In the fiscal year ended September 2022, the average price, mainly for existing customers, increased due to improved proposal capabilities for upstream processes and personnel supply capabil
Slide 17: Agenda
Hybrid Technologies Co., Ltd. (TSE Growth Securities Code: 4260) Highlights of the Fiscal Year Ended September 30, 2022 Financial Results Forecasts for the Fiscal Year Ending September 30, 2023 Topics from the Fourth Quarter Growth Strategy Overview of Company/Business 17 © 2022 Hybrid Technologies
Slide 18: Memorandum of Cooperation with Vietnam National Cyber Security Center
Memorandum of Cooperation with Vietnam National Cyber Security Center Hybrid Technologies Co., Ltd. (TSE Growth Securities Code: 4260) ･ Signed a memorandum of cooperation with the National Cyber Security Center (NCSC), an organization under Vietnam`s Ministry of Information and Communications. ・Thi
Slide 19: Market overview of Cybersecurity Services
Hybrid Technologies Co., Ltd. Market overview of Cybersecurity Services (TSE Growth Securities Code: 4260) ・Demand for cybersecurity services is increasing both domestically and internationally and the global market is expected to reach 266.2 billion US dollars in 2027. ・Cybersecurity services offer
Slide 20: Vietnam: Academic-Industrial Alliance Progress
Hybrid Technologies Co., Ltd. Vietnam: Academic-Industrial Alliance Progress (TSE Growth Securities Code: 4260) ・Signed a memorandum of understanding with two new universities: The University of Da Nang, University of Science and Technology and Vietnam National University, Hanoi University of Scienc
Slide 21: Vietnam: Academic-Industrial Alliance
Hybrid Technologies Co., Ltd. Vietnam: Academic-Industrial Alliance (TSE Growth Securities Code: 4260) ・Signed two new universities, making eight Vietnam schools in this education and recruitment alliance. Hanoi ･ VNU University of Engineering and Technology ･ Hanoi University of Technology As of FY
Slide 22: Nikkei Virtual Global Forum "Japan on the Move Toward an International Financial Hub"
Nikkei Virtual Global Forum “Japan on the Move Toward an International Financial Hub” (Organizer: Nikkei Inc.) ・Sponsored the Nikkei Virtual Global Forum“Japan on the Move Toward an International Financial Hub”(organizer: Nikkei Inc.) ・As one of the panelists in a discussion on the theme of “Diversi
Slide 23: Appointment of Masaaki Matsuzawa as Advisor
Hybrid Technologies Co., Ltd. Appointment of Masaaki Matsuzawa as Advisor (TSE Growth Securities Code: 4260) ・As of July 2022, Masaaki Matsuzawa, former Executive Vice President and Business Group Officer of ITOCHU Techno-Solutions Corporation (CTC), was appointed as an advisor. ・Utilizing his knowl
Slide 24: Creation of English IR Website
Hybrid Technologies Co., Ltd. Creation of English IR Website (TSE Growth Securities Code: 4260) ・Created an English IR website through a support project by FinCity.Tokyo promoting the “Tokyo as an international financial city” concept. ・English disclosure of financial results briefing materials, fin
Slide 25: Results of Recruiting Campaign of Engineers
Hybrid Technologies Co., Ltd. Results of Recruiting Campaign of 150 Engineers (TSE Growth Securities Code: 4260) ・The campaign to recruit 150 engineers in Vietnam from July to September has ended. ・During the period, there were over 1,200 total entries, and now, about 70 engineers with a wide range
Slide 26: Agenda
Hybrid Technologies Co., Ltd. (TSE Growth Securities Code: 4260) Highlights of the Fiscal Year Ended September 30, 2022 Financial Results Forecasts for the Fiscal Year Ending September 30, 2023 Topics from the Fourth Quarter Growth Strategy Overview of Company/Business 26 © 2022 Hybrid Technologies
Slide 27: Growth Strategy: Growth of Existing Business
Hybrid Technologies Co., Ltd. Growth Strategy: Growth of Existing Business (TSE Growth Securities Code: 4260) Growth by increasing the number of stock service projects, our main service, and improving average price. Stock service Increase in number of projects Implement flexible pricing measures Imp
Slide 28: Growth Strategy: Hybrid Technologies Capital
Hybrid Technologies Co., Ltd. Growth Strategy: Hybrid Technologies Capital (TSE Growth Securities Code: 4260) ・Hybrid Technologies is developing Hybrid Technologies Capital, a new project supporting start-up businesses which was launched this fiscal year. ・In the fourth quarter, Hybrid Technologies
Slide 29: Capital Investment Examples: Spes Co., Ltd.
Hybrid Technologies Co., Ltd. Hybrid Technologies Capital Investment Examples: Spes Co., Ltd. (TSE Growth Securities Code: 4260) ･ Provides software called“Spes”that centralize ordering, warehousing and inventory management completely free of charge. ･ Our hybrid service supports API development to
Slide 30: Capital Investment Examples: EHON Inc.
Hybrid Technologies Co., Ltd. Hybrid Technologies Capital Investment Examples: EHON Inc. (TSE Growth Securities Code: 4260) ･ Offers original picture book services, such as “Avatar Picture Book Gift”, which gives the reader the experience of exploring the world of the picture book through their 3D a
Slide 31: Capital Investment Examples: Bionics Co., Ltd.
Hybrid Technologies Co., Ltd. Hybrid Technologies Capital Investment Examples: Bionics Co., Ltd. (TSE Growth Securities Code: 4260) ･ Developed a highly accurate identity authentication system using blood flow recognition. ･ In addition to opening locks, which is the current main service, future exp
Slide 32: Growth Strategy: Hybrid Technologies Capital
Hybrid Technologies Co., Ltd. Growth Strategy: Hybrid Technologies Capital (TSE Growth Securities Code: 4260) ･ Hybrid Technologies Capital has invested in seven companies as of the end of the fourth quarter. ･ It aims to grow the business of both parties by providing customers in various industries
Slide 33: Growth Strategy
Hybrid Technologies Co., Ltd. Growth Strategy (TSE Growth Securities Code: 4260) The Company aims to achieve non-continuous business growth, such as new projects and business alliances, while expanding the scale of the existing business by increasing the number of stock service projects and improvin
Slide 34: Growth Strategy: Our M&A Strategy
Hybrid Technologies Co., Ltd. Growth Strategy: Our M&A Strategy (TSE Growth Securities Code: 4260) We consider M&A strategies in two directions: growth of existing businesses (project number/average price increase) and business diversification. M&A to increase the number and average prices of existi
Slide 35: Growth strategy: M&A to Increase the Number and Average Prices of Existing Businesses
Growth strategy: M&A to Increase the Number and Average Prices of Existing Businesses Hybrid Technologies Co., Ltd. (TSE Growth Securities Code: 4260) ・Consider M&A that helps expand our current priority sectors such as recruitment in UX/UI design, development, maintenance and operation, DX strategy
Slide 36: Growth Strategy: M&A to Diversify Businesses
Hybrid Technologies Co., Ltd. Growth Strategy: M&A to Diversity Businesses (TSE Growth Securities Code: 4260) Utilizing Hybrid Technologies Capital’s corporate network, we have established a certain level of positioning in growth industries; now we aim to achieve non-continuous growth by diversifyin
Slide 37: Our Approach to ESG
Hybrid Technologies Co., Ltd. Our Approach to ESG (TSE Growth Securities Code: 4260) We contribute to realizing a sustainable society through DX promotion projects that enable more efficient social activities and flexible working systems for a diverse workforce. Reduce public transportation use by T
Slide 38: Agenda
Hybrid Technologies Co., Ltd. (TSE Growth Securities Code: 4260) Highlights of the Fiscal Year Ended September 30, 2022 Financial Results Forecasts for the Fiscal Year Ending September 30, 2023 Topics from the Fourth Quarter Growth Strategy Overview of Company/Business 38 © 2022 Hybrid Technologies
Slide 39: Mission
We - Mission - Business
Slide 40: Company Profile
Hybrid Technologies Co., Ltd. Company Profile (TSE Growth Securities Code: 4260) Company name Date of establishment Officers (as of November 14, 2022) Hybrid Technologies Co., Ltd April 28, 2016 CEO Tran Van Minh 〈Consolidated subsidiary〉 Director/CFO Kazuma Hirakawa Hybrid Technologies Vietnam Co.,
Slide 41: Officers
Hybrid Technologies Co., Ltd. Officers (TSE Growth Securities Code: 4260) CEO Director/CFO Director Tran Van Minh Kazuma Hirakawa Yosuke Kubota After representing the Vietnamese affiliate After passing the second stage Certified After joining Recruit Co., Ltd. as a new of a Japanese company and the
Slide 42: Business Overview
Hybrid Technologies Co., Ltd. Business Overview (TSE Growth Securities Code: 4260) With our hybrid-type services, the Japanese side of the business plays a central role in handling upstream processes (customer’s service design, system design) while collaborating with engineer resources on the Vietna
Slide 43: Service Details
Hybrid Technologies Co., Ltd. Service Details (TSE Growth Securities Code: 4260) We offer quasi-mandate-based stock services and service contract-based flow services according to customers’ needs. *The proportions represent the percentage of revenue from stock services and flow services, respectivel
Slide 44: Strengths of Our Business
Hybrid Technologies Co., Ltd. Strengths of Our Business (TSE Growth Securities Code: 4260) We believe that the strengths of our business are the three points below. For details, see the following pages. 1. Japan-Vietnam 3. Resource supplying 2. Business model synergy capacity By using Vietnamese eng
Slide 45: Strengths of Our Business 1: Japan-Vietnam Synergy (Demographics)
Strengths of Our Business 1: Japan-Vietnam Synergy (Demographics) Hybrid Technologies Co., Ltd. (TSE Growth Securities Code: 4260) ・ Unlike Japan, which is facing the issue of a declining birthrate and aging society, Vietnam’s total population is projected to continue growing in the future as of 202
Slide 46: Strengths of Our Business 1: Japan-Vietnam Synergy (Market Environment)
Strengths of Our Business 1: Japan-Vietnam Synergy (Market Environment) Hybrid Technologies Co., Ltd. (TSE Growth Securities Code: 4260) ・ While the DX market among Japanese companies is projected to grow to 3 trillion yen by 2030, the forecast is that there will be a shortage in the IT human resour
Slide 47: Strengths of Our Business 2: Business Model
Hybrid Technologies Co., Ltd. Strengths of Our Business 2: Business Model (TSE Growth Securities Code: 4260) By using Vietnamese engineers who understand Japanese business practices as a bridge between the Japanese side, which handles upstream processes, and Vietnamese side, which handles developmen
Slide 48: Strengths of Our Business 3: Resource Supplying Capacity
Hybrid Technologies Co., Ltd. Strengths of Our Business 3: Resource Supplying Capacity (TSE Growth Securities Code: 4260) Our recruiting network, which leverages our high profile within Vietnam, enables agile recruitment of personnel suited to the needs of each project, which is difficult in Japan.
Slide 49: Strengths of Our Business 3: Resource Supplying Capacity
Hybrid Technologies Co., Ltd. Strengths of Our Business 3: Resource Supplying Capacity (TSE Growth Securities Code: 4260) Our articles have been published in many media in Vietnam, which is steadily generating more widespread awareness of us, particularly among job candidates within Vietnam. On Nove
Slide 50: Forward-looking statements disclaimer
・ This document contains forward-looking statements related to industry trends and Hybrid Technologies’ business based on the Company’s current plans, estimates, forecasts, and expectations. ・ A variety of risks and uncertainties are inherent in the assertions made in these forward-looking statement