Japan Business Systems, Inc. · TSE:5036
Japan Business Systems — FY2024 Earnings Presentation
35 slides from Japan Business Systems's earnings presentation, Nov 8, 2024
Slide 1: 2024/9 Financial Results
2024/9 Financial Results 2024 / 11 / 8
Slide 2: 目次
目次 1. The Business Environment for 2024/9 3 2. Consolidated Financial Results for 2024/9 5 3. Consolidated Financial Forecast for 2025/9 11 4. Shareholder Returns 15 5. Measures of Business Initiatives 17 6. Appendix 26 2
Slide 3: The Business Environment for 2024/9
The Business Environment for 1 2024/9 / /
Slide 4: The Business Environment for 2024/9
The Business Environment for 2024/9 Market Outlook For Future Growth Increasing cloud Building a platform for demand growth • Application of the cloud to • Strengthening recruitment businessareas • Strengthening the generative • Competition in generative AI AI support system development • Enhancing
Slide 5: Consolidated Financial Results for 2024/9
2 Consolidated Financial Results for 2024/9 / /
Slide 6: 2024/9 Consolidated Financial Results (Summary)
2024/9 Consolidated Financial Results (Summary) As a result of steady expansion in each business, net sales and operating profit both increased. On the other hand, net income fell due to recording of extraordinary loss. Consolidated companies NEXTSCAPE Inc. (consolidated subsidiary) NTV Wands Inc. (
Slide 7: Analysis of Factors Contributing to Change in Operating Profit
Consolidated Financial Results for 2024/9 (Analysis of Factors Contributing to Change in Operating Profit) Profit increased as the revenue increase effect from business expansion and the improvement of profitability of the Cloud Service Business compensated for the decrease in profitability of the C
Slide 8: 2024/9 Business Status by Segment (Cloud Integration Business)
2024/9 Business Status by Segment (Cloud Integration Business） Needs are shifting from adoption of Microsoft 365 (M36)5 to utilization of Azure due to advancement in customers’ use and application of the cloud. On the other hand, profit decreased due to the effect sluggish project unit prices and th
Slide 9: 2024/9 Business Status by Segment (Cloud Service Business)
2024/9 Business Status by Segment (Cloud Service Business) Revenue and profit increased due to the expansion of resident support for each customer company and the acquisition of new customers for cloud managed services such as security services （ Millions of yen ） 1H 2H 1H 2H 123.0% （ Millions of ye
Slide 10: 2024/9 Business Status by Segment (License & Products Business)
2024/9 Business Status by Segment (License & Products Business) Revenue and profit increased due to the expansion of contracts with major existing customers and an expansion of global support. （ Millions of yen ） 1H 2H 1H 2H （ Millions of yen ） 1H 2H 1H 2H Operating margin 132.2% 3.4% （YoY） 3,500 4.
Slide 11: Consolidated Financial Forecast for 2025/9
3 Consolidated Financial Forecast for 2025/9 / /
Slide 12: Consolidated Financial Forecast for 2025/9
Consolidated Financial Forecast for 2025/9 Although the profit levels set in the first medium-term management plan are out of reach, we aim to achieve new records in net sales and profit through continuous business expansion. 2025/9 2024/9 Net increase from Percent change Forecast Results previous p
Slide 13: Forecast Analysis of Factors Contributing to Change in Operating Profit
Consolidated Financial Forecast for FY2025/9 (Analysis of Factors Contributing to Change in Operating Profit) Profit is expected to increase due to the expansion of net sales in each business as well as the improvement of profitability of the Cloud Integration Business including NEXTSCAPE compensati
Slide 14: Consolidated Financial Forecast for 2025/9 by Business Segments
Consolidated Financial Forecast for 2025/9 by Business Segments Forecasted increase in revenue and profit in each business segment 2025/9 2024/9 Net increase from Percent change previous period from previous Forecast Results period Net Sales Net Sales Net Sales Net Sales Segment Profit / Segment Pro
Slide 15: Shareholder Returns
THUMM Shareholder Returns
Slide 16: Dividend forecast
Dividend forecast For the fiscal year ended Sep. 2024, the annual dividend will be 25 yen as forecasted at the beginning of the fiscal period. For the fiscal year ending Sep. 2025, the annual dividend is forecasted to be 35 yen due to business expansion and an increase in the dividend payout . Annua
Slide 17: Measures of Business Initiatives
5 Measures of Business Initiatives / /
Slide 18: Progress of each business segments – Cloud Integration Business
Progress of each business segments –Could Integration Business We are responding to the shift in demand from M365 adoption to cloud for information systems infrastructure. 対応。Despite an expansion trend for work process apps, growth is insufficient for driving profit. Net sales Net sales Net sales CA
Slide 19: Progress of each business segments – Cloud Service Business
Progress of each business segments –Could Service Business Revenue and operating profits are steadily expanding due to large-scale deals in sales, among other factors. Managed services are also seeing increased results. Net sales Net sales Net sales CAGR Support for resident CAGR 24 12 Managed servi
Slide 20: Progress of each business segments – License & Products Business
Progress of each business segments –License & Products Business Net sales are greatly increasing due to large-scale orders for Microsoft licenses including global bulk contracts. As a result of prioritizing expansion of business partners (ID), profit margins remain low. Net sales Net sales Net sales
Slide 21: Skill expansion of engineers
Skill expansion of engineers Skill expansion of engineers needed to secure profit is progressing steadily. On the other hand, there is an urgent need to develop and secure PM (project manager) class talent needed for promoting projects. Upstream design App development Security （Unit：person） +5.7％ +2
Slide 22: For future business growth
For future business growth Promote the two wheels of robust growth in current demand and strengthening capabilities to solve customers’ issues through integrated manufacturing and sales, and revise growth strategy Future issues that need to be addressed Future actions Deceleration of current mainsta
Slide 23: Initiatives for future growth – ① AI
Initiatives for future growth –① AI Our track record is growing in Copilot-related services utilizing our knowledge of M365, which is our strength. In addition, we will strengthen support for use cases in the AI era and the necessary data environment development through the establishment of the Data
Slide 24: Initiatives for future growth – ② Global support
Initiatives for future growth –② Global support Currently expanding comprehensive support in cloud utilization in response to increasing demand for global IT support. Increasing track record not just in licenses but also helpdesks and other areas (net sales tripled from FY22 to FY24) Purchasing & As
Slide 25: Initiatives for future growth – ③ Security
25 Response JBS SOC Operation Support for ransomware countermeasures （ (Monitoring for ransomware) Detection Work to expand scope of application through partner collaboration. Managed Security Services (E Security) 5 Expand security services focusing on strengths in MS Cloud. CyberArk Starter Pack A
Slide 26: Appendix
5 Appendix / /
Slide 27: Consolidated Financial Results (Quarterly Financial Results)
Consolidated Financial Results (Quarterly Financial Results) （ Millions of yen ） Net Sales （ Millions of yen ） Operating Profit Operating margin 60,000 2,000 10.0% 4.9% 4.6% 5.0% 4.5% 4.7% 3.3% 52,210 1,800 1.3% 1.8% 50,000 0.0% 1,600 1,513 1,400 1,330 40,000 -10.0% 35,698 34,710 1,176 1,150 1,200 1
Slide 28: Cloud Integration Business (Quarterly Financial Results)
Cloud Integration Business (Quarterly Financial Results) （ Millions of yen ） Net Sales （ Millions of yen ） Segment profit Segment profit rate 1,600 16.2% 18.5% 20.0% 14.8% 15.1% 14.3% 7,000 11.5% 12.4% 6,406 6,418 8.4% 5,980 1,400 10.0% 5,927 5,792 6,000 5,653 5,540 1,185 1,200 0.0% 4,888 5,000 1,00
Slide 29: Cloud Service Business (Quarterly Financial Results)
Cloud Service Business (Quarterly Financial Results) （ Millions of yen ） Net Sales （ Millions of yen ） Segment profit Segment profit rate 6,000 17.9% 20.0% 15.0% 15.1% 14.9% 13.7% 12.5% 12.5% 5,140 10.5% 1,000 5,000 4,640 4,746 10.0% 4,395 830 3,987 3,964 800 765 3,759 0.0% 4,000 3,678 665 596 591 -
Slide 30: License & Products Business (Quarterly Financial Results)
License & Products Business (Quarterly Financial Results) （ Millions of yen ） Net Sales （ Millions of yen ） Segment profit Segment profit rate 6.0% 45,000 3.6% 3.6% 3.7% 41,920 1,200 4.0% 2.1% 1.9% 2.3% 2.3% 2.0% 40,000 2.0% 972 1,000 0.0% 35,000 -2.0% 30,000 800 -4.0% 26,143 724 25,000 23,148 -6.0%
Slide 31: Composition Ratio of Sales
Composition Ratio of Sales The ratio of recurring revenue continue to grow And the composition ratio of Manufacturing and Distribution is expanding by industry. 3 business segments Composition Ratio of Sales by industry 3 License & Products business 1 Cloud integration business Services and Finance
Slide 32: Sales ratio of Microsoft license and progress of number of IDs
Sales ratio of Microsoft license and proress of number of IDs Shift from expanding the number of IDs to utilizing the cloud Microsoft license sales ratio Number of Microsoft 365 ID （ Millions of yen ） （thousand） License Products License Products License ratio* 3,000 82% 120,000 90% 80% 2,390 2,385 7
Slide 33: Changes in the number of personnel
Changes in the number of personnel Steady progress has been made in strengthening the personnel structure due to aggressive recruitment activities Number of personnel、 the turnover rate Business partner rate Engineers Sales department Administrative department the turnover rate* Business partner rat
Slide 34: 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 35: JBS
JBS BNEFI/OI—2, BLHOT<
Japan Business Systems — FY2024 Earnings Presentation on 6ix