Cube System Inc. · TSE:2335
Cube System — FY2022 Earnings Presentation
29 slides from Cube System's earnings presentation, May 11, 2022
Slide 1: Fiscal Year Ended March 31, 2022 Supplementary Information Material
Fiscal Year Ended March 31, 2022 Supplementary Information Material May. 11, 2022 for Financial Results Securities code: 2335
Slide 2: Contents
Contents Fiscal Year Ended March 31, 2022 1 Overview of Financial Results Fiscal Year Ending March 31, 2023 2 Outlook 3 Appendix Copyright (C) 2022 CUBE SYSTEM INC. All rights reserved 2
Slide 3: Overview of Financial Results
1. Overview of Consolidated Statements of Income 2. Trends in Transition by Accounting Period 1 3. Factors Leading to Changes in Operating Profit Fiscal Year Ended (Compared to the Previous Fiscal Year) March 31, 2022 4. Summary of Consolidated Balance Sheets and Consolidated Overview of Statements
Slide 4: Overview of Consolidated Statements of Income
1-1. Overview of Consolidated Statements of Income Overview of Financial Results Continue to reform the business structure model Increase in sales and profit due to optimization of resources with a focus on SI business(*1 Lift ＆ Shift) 2022/03 FYE 2022 2021/03 Actual Forecast*2 Actual (YoY) (Achieve
Slide 5: Trends in Transition by Accounting Period
1-2. Trends in Transition by Accounting Period Overview of Financial Results (Millions of yen) FYE2021 FYE2022 (%) 25.0 4,500 4,000 20.0 3,500 3,000 Net sales 15.0 Gross margin 2,500 Operating 2,000 10.0 margin 1,500 1,000 5.0 500 0.0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun
Slide 6: Factors Leading to Changes in Operating Profit
1-3. Factors Leading to Changes in Operating Profit Overview of Financial Results (Compared to the Previous Fiscal Year) Concentration of resources on high- Expansion of additional Strengthening development projects in (Unit: millions of yen) profit projects of SI corporate governance business(Lift
Slide 7: Summary of Consolidated Balance Sheets and Cash Flows
1-4. Summary of Consolidated Balance Sheets and Overview of Financial Results Consolidated Statements of Cash Flows (Unit: millions of yen) Consolidated Balance Sheets 2021/03 2022/03 Increase/Decrease Remarks Current assets 7,253 7,805 +551 Increase in cash and deposits Non-current assets 2,190 2,2
Slide 8: Trends in Net Sales and Operating Profit by Service Segment
1-5. Trends in Net Sales and Operating Profit by Service Segment Overview of Financial Results Net Sales Operating Profit Net Sales Composition YOY YOY [Fiscal Year Ended March 31, 2022] +20.7% (Millions of yen) +8.9% (Millions of yen) 18,000 1,500 1,417 16,099 （＋243） 74% System Integration Services
Slide 9: Trends in Net Sales and Operating Profit by Industry
1-6. Trends in Net Sales and Operating Profit by Industry Overview of Financial Results Net Sales Operating Profit YoY YoY Net Sales Composition +20.7% [ Fiscal Year Ended March 31, 2022] (Millions of yen) +8.9% (Millions of yen) 18,000 1,500 1,417 16,099 （＋243） Banking: 8% / Insurance & Securities:
Slide 10: Trends in Net Sales and Operating Profit by Business Model
1-7. Trends in Net Sales and Operating Profit by Business Model Overview of Financial Results Net Sales Operating Profit YoY (Millions of yen) (Millions of yen) Net Sales Composition YoY +20.7% 18,000 1,500 1,417 [ Fiscal Year Ended March 31, 2022] +8.9% （＋243） 16,099 16 （+1,310） （+31） Digital Busin
Slide 11: Trends in Net Sales to Customer Group Companies
1-8 Trends in Net Sales to Customer Group Companies Overview of Financial Results Net Sales YoY (Millions of yen) +8.9% Net Sales Composition [fiscal year ended March 31, 2022] 18,000 16,099 （＋1,310） 15,000 14,788 Others NRI Group 21.0％ 7,170 8,285 （＋1,114） NRI Group 12,000 Mizuho Financial Group 3.
Slide 12: Index Per Capita
1-9. Index Per Capita Overview of Financial Results Net Sales Operating Profit Number of Per Capita* Per Capita* Employees Number of Domestic Employees (Thousands of yen) (Thousands of yen) (Persons) Number of Overseas Employees 1,985 25,000 2,000 (+280) 900 830 22,548 (+49) 22,558 (+1,084) 1,705 80
Slide 13: Trends in Total Equity and ROE
1-10. Trends in Total Equity and ROE Overview of Financial Results Our continuous target for ROE is 13% or higher with efforts to enhance capital efficiency and profit margin. (Millions of yen) Total equity (left axis) ROE (right axis) （％） 8,000 20 6,000 13.5 14.0 13.8 15 13.2 11.6 11.4 11.4 9.1 9.6
Slide 14: Trends in Number of Shareholders and Market Cap
1-11. Trends in Number of Shareholders and Market Cap Overview of Financial Results 2-for-1 1.5-for-1 2-for-1 Share split share split share split share split Listed on the First Listing category Section of Tokyo Stock Exchange (March 2014) Number of shareholders Market cap (Persons) (right axis) (10
Slide 15: Outlook
2 1. Overview of Earnings Outlook Fiscal Year Ending March 31, 2023 2. Order Status by Industry Outlook 3. Order Status by Business Model 4. Net Sales Outlook by Industry 5. Net Sales Outlook by Business Model 6. Trends in Dividends and Dividend Payout Ratio Copyright (C) 2022 CUBE SYSTEM INC. All r
Slide 16: Overview of Earnings Outlook
2-1. Overview of Earnings Outlook Outlook FYE 2023 Earnings FYE 2022 forecast Actual (Increase/decrease from the (Unit: millions of yen) previous fiscal year) A YoY increase of 7.5% is expected Net sales 17,300 16,099 （+1,200／+7.5％） - Proactively acquire clients' strategic IT investment projects Net
Slide 17: Overview of Earnings Outlook (half-year breakdown)
2-1. Overview of Earnings Outlook Outlook First half of the year Second half of the year Operating Ordinary Net Profit Attributable Net Sales to Owners of Parent Profit Profit (Millions of yen) (Millions of yen) (Millions of yen) (Millions of yen) ＋7.5％ ＋7.9％ +7.8％ 1,200 20,000 1,800 1,800 ＋5.9％ 18,
Slide 18: Order Status by Industry
2-2. Order Status by Industry Outlook Order Volume Order Backlog (Millions of yen) (Millions of yen) 18,000 5,000 +1,009 16,072 (+6.7%) 15,062 -27 4,303 (-0.6%) 4,276 15,000 4,042 4,000 Finance 1,065 4,053 -10 +133 1,198 (-0.3%) (+12.5%) 12,000 3,000 Distribution 3,331 -10 2,823 +507 949 (-1.1%) 9,0
Slide 19: Order Status by Business Model
2-3. Order Status by Bussiness Model Outlook Order Volume Order Backlog (Millions of yen) (Millions of yen) -27 (-0.6%) 1,800 +1,009 4,500 4,303 4,276 (+6.7%) 16,072 55 +133 15,062 189 484 4,000 (+241.9%) Digital Business 96 +388 1,500 (+404.6%) 1,054 891 3,500 -162 SI Business (Lift & Shift) 3,096
Slide 20: Net Sales Outlook by Industry
2-4. Net Sales Outlook by Industry Outlook Trends in Consolidated Net Sales by Industry Net Sales Composition Ratio by Industry YoY [earnings forecast for fiscal year ending March 31, 2023] ＋18.8% (Millions of yen) (+857) 6,000 YoY 5,420 +13.1% （+510） YoY 5,000 -8.8% YoY (-375) 4,420 4,562 Others Fi
Slide 21: Net Sales Outlook by Business Model
2-5. Net Sales Outlook by Business Model Outlook Net Sales YoY +7.5% (Millions of yen) 17,300 Digital Business 18,000 （＋1,200） - Promotion of collaborative consultation models 16,099 Digital Business - Sales expansion of Smile Share Product *1 780 350 （＋429） - Reinforcement and promotion of agile so
Slide 22: Trends in Dividends and Dividend Payout Ratio
2-6. Trends in Dividends and Dividend Payout Ratio Outlook Our basic policy is to continue paying stable dividends, so as to achieve a 35% consolidated dividend payout ratio, while securing necessary internal reserves. Ordinary dividends per share Commemorative dividends Dividend payout ratio (right
Slide 23: Appendix
3 1. Five Year Summary Appendix 2. Consolidated Balance Sheets: Major Items 3. Net Sales and Operating Profit by Service Segment 4. Net Sales and Operating Profit by Industry 5. Assets and Capital-Related Items 6. Share Price and Equity-Related Items Copyright (C) 2022 CUBE SYSTEM INC. All rights re
Slide 24: Five Year Summary
3-1. Five Year Summary Appendix (Millions of yen) Net sales Gross margin (Millions of yen) Operating Profit Operating margin (%) (left axis) (right axis) (%) (left axis) (right axis) 20,000 24.0 1,500 12.0 1,250 10.0 15,000 18.0 1,000 8.0 10,000 12.0 750 6.0 500 4.0 5,000 6.0 250 2.0 0 0.0 0 0.0 201
Slide 25: Consolidated Balance Sheets: Major Items
3-2. Consolidated Balance Sheets: Major Items Appendix (Unit: millions of yen) Increase/ Increase/ Assets 2021/03 2022/03 Decrease Liabilities 2021/03 2022/03 Decrease Current assets 7,253 7,805 +551 Current liabilities 2,357 2,199 -158 Accounts payable - trade 775 753 -21 Cash and deposits 4,467 5,
Slide 26: Net Sales and Operating Profit by Service Segment and Industry
3-3. Net Sales and Operating Profit -4. Net Sales and Operating Profit Appendix by Service Segment by Industry Net Sales and Operating (Unit: millions of yen) Net Sales and Operating (Unit: millions of yen) Profit by Service Segment 2021/03 2022/03 YoY Profit by Industry 2021/03 2022/03 YoY Net sale
Slide 27: Assets and Capital-Related Items; Share Price and Equity-Related Items
3-5. Assets and Capital-Related -6. Share Price and Equity-Related Items Appendix Items Assets and Capital-Related Items Net Assets/Equity Ratio (Millions of yen) Total Assets (Millions of yen) Net assets Equity ratio(right axis) (%) (left axis) 12,000 10,000 100 68.1 65.4 69.6 68.6 71.2 8,000 80 9,
Slide 28: Share Price and Equity-Related Items
3-6. Share Price and Equity-Related Items Appendix Share Price and Equity-Related Items Market Cap Share Price (Yen) Company’s Share Nikkei Stock Average (right axis) (Yen) (100 million yen) Price (left axis) 1,200 30,000 200 1,000 1,176 25,000 160 800 932 20,000 179 859 120 600 799 15,000 80 135 40
Slide 29: Company website and forward-looking statements notice
https://www.cubesystem.co.jp/en/ The earnings outlook and other forward-looking statements provided in this material are based on the information currently available to the Company and are subject to potential risks and uncertainties. Please understand that there is a large possibility that actual r