Cybertrust Japan Co.ltd. · TSE:4498
Cybertrust Japan Co.ltd — Q1 FY2024 Earnings Presentation
55 slides from Cybertrust Japan Co.ltd's earnings presentation, Jul 30, 2024
Slide 1: FY2024 Q1 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. FY2024 Q1 Financial Results First Quarter of the Fiscal Year Ending March 31, 2025 C
Slide 2: Executive Summary
▌Executive Summary Increase in sales compared to the same period of the previous year FY2024 Q1 Financial Results Record-high net sales Profit declined due to systematic investment activities - Investments including temporary expenses for full-fledged operation of Cybertrust’s root certification aut
Slide 3: Agenda
◼ FY2024 Q1 Financial Summary Agenda ◼ Overview by Service Segment Authentication and Security Services Linux/OSS Services IoT Services ◼ Management Topics ◼ FY2024 Full-Year Forecast ◼ Appendix 3 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 4: FY2024 Q1 Financial Summary
◼ FY2024 Q1 Financial Summary ◼ Overview by Service Segment Authentication and Security Services Linux/OSS Services IoT Services ◼ Management Topics ◼ FY2024 Full-Year Forecast ◼ Appendix 4 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 5: FY2024 Q1 Consolidated Results
▌ FY2024 Q1 Consolidated Results Record high Q1 net sales; decline in profit due to systematic investment activities 1,493 million yen Net sales rose 3.4% YoY to Operating income decreased 19.4% YoY to 144 million yen (Unit: Millions of yen) FY23 Q1 FY24 Q1 YoY Change Net sales 1,443 1,493 +3.4% Ope
Slide 6: Trend in Quarterly Sales by Transaction Type
▌ Trend in Quarterly Sales by Transaction Type Growth driven by Record high Q1 recurring service sales ratio of 72.3% high growth-driver services (Unit: Millions of yen) 1,842 1,729 Professional services 1,661 1,643 Licenses 1,536 1,560 1,537 421 1,468 1,468 1,493 Recurring services 1,408 490 1,443
Slide 7: Sales by Service Segment
▌ Sales by Service Segment ■ Authentication and Security: Grew with accumulation of recurring services centered on high-growth-driver service iTrust ■ Linux/OSS: CentOS7 extended support accumulated order backlog beyond expectations ■ IoT: Sales of contract development was stagnant despite growth in
Slide 8: Overview by Service Segment
◼ FY2024 Q1 Financial Summary ◼ Overview by Service Segment Authentication and Security Services Linux/OSS Services IoT Services ◼ Management Topics ◼ FY2024 Full-Year Forecast ◼ Appendix 8 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 9: Authentication and Security Services | Performance and Initiatives by Service Segment
▌Authentication and Security Services | Performance and Initiatives by Service Segment Recurring services grew led by high-growth-driver service iTrust (Unit: Millions of yen) Recurring service sales ratio of 87.6% (+1.3pt Authentication and Security Service net sales FY23 Q1 FY24 Q1 YoY Change YoY)
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) grew (Number of transactions) 8,990,446 Number of uses:8.99 million per quarter YoY change: 1.6 times 3,360,350 1,466,391 Trust service boasting outstanding performance 205,178 Q1 Q2 Q
Slide 11: Initiatives to Expand Scope of Use of iTrust (Identity Verification)
▌Initiatives to Expand Scope of Use of iTrust (Identity Verification) Examples of identity verification carried out in Trend towards stricter identity verification person and at stores The government will make identity verification, through reading of In-person/over-the-counter identity verification
Slide 12: Overview by Service Segment
◼ FY2024 Q1 Financial Summary ◼ Overview by Service Segment Authentication and Security Services Linux/OSS Services IoT Services ◼ Management Topics ◼ FY2024 Full-Year Forecast ◼ Appendix 12 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 13: Linux/OSS Services | Performance and Initiatives by Service Segment
▌Linux/OSS Services | Performance and Initiatives by Service Segment CentOS7 extended support accumulated order backlog beyond expectations (Unit: Millions of yen) Linux/OSS Services net Recurring services sales FY23 Q1 FY24 Q1 YoY Change (by transaction type) ◼ Order backlog for CentOS7 extended su
Slide 14: CentOS7 Extended Support Acquisition Status of New Projects
▌CentOS7 Extended Support Acquisition Status of New Projects Order backlog for new CentOS7 extended support Steady progress beyond initial projects expectations compared to the FY2024 net sales forecast In excess of 550 million yen *As of June-end 2024 Order backlog steadily accumulated beyond expec
Slide 15: Overview by Service Segment
◼ FY2024 Q1 Financial Summary ◼ Overview by Service Segment Authentication and Security Services Linux/OSS Services IoT Services ◼ Management Topics ◼ FY2024 Full-Year Forecast ◼ Appendix 15 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 16: IoT Services | Performance and Initiatives by Service Segment
▌IoT Services | Performance and Initiatives by Service Segment Sales in contract development was stagnant despite growth in recurring services and security consulting (Unit: Millions of yen) IoT Services net sales Increase in sales of recurring services (by transaction type) FY23 Q1 FY24 Q1 YoY Chan
Slide 17: Initiatives Aimed at Further Revenue Expansion of IoT Services (Progress in Q1)
▌ Initiatives Aimed at Further Revenue Expansion of IoT Services (Progress in Q1) Initiatives related to market environment Development of collaborative partners Strengthening security solutions for social infrastructure Overseas partner companies from the perspective of economic security ⚫ Star
Slide 18: Management Topics
◼ FY2024 Q1 Financial Summary ◼ Overview by Service Segment Authentication and Security Services Linux/OSS Services IoT Services ◼ Management Topics ◼ FY2024 Full-Year Forecast ◼ Appendix 18 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 19: Participation in Security Funds
▌ Participation in Security Funds Cybertrust has joined Nippon Cyber Security Fund 1 Investment Limited Partnership, Japan’s first fund that is financed by as well as invests in security companies, as a limited partner (investing company) Strengthening cooperation with security companies, which are
Slide 20: FY2024 Full-Year Forecast
◼ FY2024 Q1 Financial Summary ◼ Overview by Service Segment Authentication and Security Services Linux/OSS Services IoT Services ◼ Management Topics ◼ FY2024 Full-Year Forecast ◼ Appendix 20 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 21: FY2024 Full-Year Forecast
▌FY2024 Full-Year Forecast Double-digit growth in net sales and operating income Side-by-side with growth investments, high-growth-driver service iTrust and Linux service will lead growth YoY change FY23 FY24 Unit: Millions of yen Change Rate of change Net sales 6,466 7,200 +733 +11.3% Operating inc
Slide 22: FY2024 Dividend Forecast
▌FY2024 Dividend Forecast As of the beginning of FY2024, Cybertrust forecasts to continue paying a stable dividend Forecast of 17.50 yen per share Cybertrust’s basic dividend policy is to pay dividends from the surplus, once a year, as year-end Dividend dividend in a stable and continuous manner wit
Slide 23: Appendix
◼ FY2024 Q1 Financial Summary ◼ Overview by Service Segment Authentication and Security Services Linux/OSS Services IoT Services ◼ Management Topics ◼ FY2024 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: 2025 Full-Term Results Expected (sales by service)
▌ 2025 Full-Term Results Expected (sales by service) Authentication and security Linux / OSS IoT (Millions of yen) (Millions of yen) (Millions of yen) 1,700 5,000 4,300 1,200 4,500 1,394 3,943 +9.0% +21.9% 1,128 +6.3% 4,000 (YoY) (YoY) (YoY) 3,500 3,000 2,500 2,000 1,500 1,000 500 0 1 FY23 2 1 FY23
Slide 26: Consolidated PL (Detailed Sales by Service)
▌ Consolidated PL (Detailed Sales by Service) (Millions of yen) Consolidated Results FY22 FY23 Change The sales 6,167 6,466 +298 Authentication and security services 3,543 3,943 +399 LICENSE 155 158 +3 Professional services 448 598 +149 Recurring service 2,939 3,186 +247 Linux/OSS servicing 1,447 1,
Slide 27: Consolidated BS
▌ consolidated BS (Millions of yen) End of March 2023 End of March 2024 Change Rate of change Current assets 5,401 6,181 +779 +14.4% (Cash and deposits) 4,366 4,891 +525 +12.0% (Notes, accounts receivable and contract assets) 878 1,068 +190 +21.7% Fixed assets 2,465 2,235 △229 (9.3)% (Software) 980
Slide 28: Major Consolidated Management Indicators
▌ Major Consolidated Management Indicators The sales 1Net assets per share (yen)BPS) Return on equity (ROE) 6,466 (Unit: yen) 743.93 (Millions of yen) (%) 6,167 699.26 13.8 610.12 5,731 12.2 8.9 1 FY21 FY22 2 FY23 3 FY21 1 FY22 2 FY23 3 FY21 1 FY22 2 FY23 3 Operating income and operating income marg
Slide 29: Corporate Profile
Corporate Profile 29 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 30: 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 31: 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 Lin
Slide 32: 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 establ
Slide 33: 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 ("B
Slide 34: 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 35: 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 36: Business Overview
Business Overview 36 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 37: 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 38: 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 39: 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 40: 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 41: 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 42: Basis for Revenue Expansion of iTrust: Linked to/Promotion of National Policy
▌Basis for Revenue Expansion of iTrust: Linked to/Promotion of National Policy 2024/4/24 FY2023 Financial Results Reprinted Identity verification Digital signature In the Priority Policy Program for Realizing Digital Society*, identity In line with the basic concepts regarding digitalization of disp
Slide 43: Basis for Revenue Expansion of Linux Support: CentOS 7 Support to End
2024/4/24 ▌Basis for Revenue Expansion of Linux Support: CentOS 7 Support to End at the End of June 2024 FY2023 Financial Results Reprinted Sales expected to more than double YoY - Number of inquiries regarding CentOS extended support - Support ends for Expected number of inquiries CentOS7 Sales of
Slide 44: Initiatives Aimed at Further Revenue Expansion of Linux Support
▌Initiatives Aimed at Further Revenue Expansion of Linux Support 2024/4/24 FY2023 Financial Results Reprinted Promotion of AlmaLinux development and supply system Sales activities in collaboration with major companies Offer high value-added paid service primarily to financial International standard
Slide 45: Basis for Revenue Expansion of IoT services: Economic Security and Standards
▌Basis for Revenue Expansion of IoT services: Economic Security and Standards and Laws 2024/4/24 FY2023 Financial Results and Regulations of Various Countries Reprinted Expects revenue expansion from requirements for compliance with standards and laws and regulations related to economic security Int
Slide 46: Initiatives Aimed at Further Revenue Expansion of IoT Services
▌Initiatives Aimed at Further Revenue Expansion of IoT Services 2024/4/24 FY2023 Financial Results Reprinted Development of collaborative partners Initiatives related to market environment Enhancing capability to handle projects by Strengthening security solutions for social promoting collaborat
Slide 47: 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 48: 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 49: 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 50: 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 51: 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 52: 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 53: Press Release List (FY24 Q1~)
▌ Press Release List (FY24 Q1~) ,グ サラ イフ ト Webィ カルユーザーインターフェ イス ,ス 建ト 屋 座物 外 るリ ートが含まれている画像 自動的に生成された説明 自動的に生成された説明 04.03 04.09 04.23 04.24 Cybertrust Device ID, a terminal Cybertrust's iTrust Remote Signing Service Cybertrust iTrust Identity Confirmation A high-performance Contec FA computer is aut
Slide 54: 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 55: Security and Trust
Security and Trust Copyright Cybertrust Japan Co., Ltd. All rights reserved. 55 Copyright Cybertrust Japan Co., Ltd. All rights reserved.