Internetworking & Broadband Consulting Co., Ltd. · TSE:3920
Internetworking & Broadband Consulting — Q2 FYE Sep-2026 Earnings Presentation
52 slides from Internetworking & Broadband Consulting's earnings presentation, May 14, 2026
Slide 1: Q2 FYE Sep-2026 Financial Results Presentation Materials
Q2 FYE Sep-2026 Financial Results Presentation Materials 14 May 2026 Internetworking and Broadband Consulting Co., Ltd. (Securities code: 3920) © Internetworking & Broadband Consulting Co., Ltd. All rights reserved.
Slide 2: Business Overview
"VRS IBC Business Overview
Slide 3: What Is IBC?
What Is IBC? Specialized in the professional field of "network visualization" The only company in Japan offering "failure prevention monitoring solutions" to achieve stable system operation Field Business Features A high-growth market driven by Achieving stable operation of social The only company i
Slide 4: Mission and Business Overview
Mission and Business Overview Mission Achieve zero IT failures Single segment Software and services-related business * Full-year results for the fiscal year ended September 2025 Other License sales Service provision merchandise Sales ratio Sales ratio Sales ratio 52% 26% 22% Development and sales of
Slide 5: Business Starting Point
Business Starting Point Background ⚫ Around 2000, the IT industry was dominated by major vendors who monopolized the market and of the supported the network infrastructure. company's ⚫ Each vendor developed and used its own communication rules (protocols) optimized for its own founding ecosystem. ⚫
Slide 6: Product Development That Meets Customer Needs
Product Development That Meets Customer Needs ⚫ With the commercialization of the Internet, Internet connections based on the "TCP/IP" communication rules have become a global standard, and all systems and devices are connected via Current the IP protocol. ⚫ Multi-vendor equipment, cloud, and even h
Slide 7: Business Model
Business Model ⚫ With strong customer demand, sales have expanded through a sales strategy involving both direct sales and partner companies (sales agents). ⚫ License sales (System Answer), our key business driver, generate recurring revenue, producing a stable cash flow. A strong need to ensure tha
Slide 8: History
History 2002 2010 2020 October 2002 July 2011 September 2020 IBC Co., Ltd. established Network monitoring software "System Answer G2" released Launch of multi-tenant compatible product "System Answer G3-XC" September 2021 June 2003 Obtained a U.S. patent for an electronic certification system, a new
Slide 9: Earnings Trends
Earnings Trends ⚫ Net sales have reached record highs for two consecutive fiscal years since the fiscal year ended September 2024. ⚫ For the fiscal year ending September 2026, we plan record-high sales for the third consecutive year. 3,000 2,700 million yen Fiscal year ended September 2026 2,500 Fis
Slide 10: Sales Format
Sales Format ⚫ About 40% of sales are direct, and about 60% are through partner companies. ⚫ It has been adopted by over 1,000 companies. ⚫ Partner companies are mainly major vendors. There are many examples of large companies and local governments adopting this system. Direct sales Approximately Pa
Slide 11: Fiscal Year Ending September 2026 Second Quarter Results
Fiscal Year Ending September 2026 Second Quarter Results 11
Slide 12: Highlights
Highlights ⚫ In the second quarter, net sales exceeded the previous year's level; however, the interim earnings forecast (¥1,100 million) was missed because revenue of approximately ¥8 million from two projects scheduled to be recorded in March was deferred to April. ⚫ Operating profit and net profi
Slide 13: Second Quarter Results and Progress
Second Quarter Results and Progress Full-year FYE Sep-2026 FYE Sep-2026 FYE Sep-2025 FYE Sep-2026 Earnings Interim Earnings Full-year Earnings Q2 Results Q2 Results Forecast Forecast Forecast Progress Net sales 1,073 million yen 1,092 million yen 1,100 million yen 2,700 million yen Up 2% YoY 40% 3%
Slide 14: Net Sales
Net Sales ⚫ License sales continued to increase, with switching from competitors remaining steady, resulting in higher net sales. ⚫ Sales from services and other merchandise declined year on year due to a rebound from the large-scale deals recorded in the previous year. ⚫ Meanwhile, sales were secur
Slide 15: Net Sales by Product Category
Net Sales by Product Category ⚫ Against the backdrop of a shortage of IT personnel among mid-sized companies, government agencies, and educational institutions, inquiries for System Answer, which can be operated without advanced IT expertise, are increasing. We will also expand our product lineup fo
Slide 16: Recurring Net Sales
Recurring Net Sales ⚫ Steady license sales drove performance, and both recurring sales and the recurring sales ratio increased. ⚫ Recurring sales have maintained stable contract renewals and are expected to continue increasing, driven by customers switching from competitors. *The main component of r
Slide 17: System Answer Renewal Rate
System Answer Renewal Rate ⚫ The renewal rate for our in-house developed product, System Answer*, is targeted at 95% or higher. ⚫ In the second quarter, the renewal rate was 95%, maintaining the same rate as in the same period of the previous year. ⚫ Contract renewals are progressing smoothly, and w
Slide 18: Operating Profit
Operating Profit ⚫ Operating profit exceeded the interim earnings forecast (operating profit of ¥210 million), supported by solid sales of System Answer. ⚫ Although the operating profit margin declined by 3 percentage points year on year, it remained above 20%. ⚫ As we continue to expand our securit
Slide 19: Breakdown of SG&A Expenses
Breakdown of SG&A Expenses ⚫ To expand the business, we have continued to invest in human resources (increasing headcount and raising wages), and personnel expenses increased as planned. We expect personnel expenses to continue increasing to some extent going forward, as we will secure talented pers
Slide 20: Balance Sheet & Equity-to-Asset Ratio (Non-Consolidated)
Balance Sheet & Equity-to-Asset Ratio (Non-Consolidated) ⚫ Stable cash flow is secured through recurring revenue, and a sound financial structure is maintained with an equity- to-asset ratio of 63%. (Unit: JPY mil) 4000 664 599 Other liabilities 374 3000 482 Interest-bearing 801 liabilities 801 801
Slide 21: Net Profit and EPS
Net Profit and EPS ⚫ Although profit decreased year on year, net profit came in above the interim earnings forecast of ¥145 million. ⚫ For the same reasons as for operating profit, although progress is expected to vary between the third and fourth quarters, we expect to achieve the figures set out i
Slide 22: Shareholder Returns
Shareholder Returns ⚫ Returning profits to shareholders is our top management priority, and we will implement progressive dividends. ⚫ The company has decided to pay an interim dividend of 11 yen for the fiscal year ending September 2026 as planned. There is no change to the planned year-end dividen
Slide 23: Human Resources Strategy
Human Resources Strategy ⚫ In the fiscal year ending September 30, 2026, we plan to hire a total of ten people, mainly in engineering and sales positions, to further accelerate growth. ⚫ Two people were hired in the second quarter. ⚫ We will continue to bolster human resource development. (Level-bas
Slide 24: Market Size
Market Size ⚫ The overall market continues to expand due to IT investment driven by digitalization and DX promotion. ⚫ High potential for further growth. Domestic IT Market 27.8953 trillion yen 2025 forecast / CAGR (2024–2029): 6.4% Service provision business and other License sales business merchan
Slide 25: Approach to Future Growth
"VRS IBC Approach to Future Growth
Slide 26: Approach to Future Growth
Approach to Future Growth ⚫ Although the market for monitoring tools such as simple alive monitoring is saturated, there is strong replacement demand for tools that automate and enhance incident response through the adoption of AI, DX and the cloud shift; overall, the market is expanding and becomin
Slide 27: Cash Allocation
Cash Allocation ⚫ We will use operating cash flow and cash on hand to accelerate business growth through the creation of new products and services and aggressive M&A. While ensuring financial soundness, we will also strive to enhance corporate value, shareholder value, and return on capital. Investm
Slide 28: Initiatives for a Sustainable Society
Initiatives for a Sustainable Society 28
Slide 29: Contribution to a Sustainable Society
Contribution to a Sustainable Society Reduction in the amount of equipment reduces electricity consumption and contributes to reduction of CO₂ emissions ⚫ By introducing our in-house developed products System Answer and ITOGUCHI, we are able to visualize the overall network performance. (Status of n
Slide 30: Reduction of Environmental Impact
Reduction of Environmental Impact Switch to renewable energy and promote paperless operations ⚫ All electricity used at the Company's sites has been switched to renewable energy, which does not emit CO₂. ⚫ As an initiative to achieve both reduction of environmental impact and improvement of operatio
Slide 31: Promoting Diversity and Inclusion
Promoting Diversity and Inclusion Fostering opportunities and a corporate culture where diverse human resources mutually recognize and accept each other ⚫ We invested in AlonAlon, a non-profit organization that operates a Type B Support for Continuous Employment business, and supported projects such
Slide 32: Financial Results FAQs
"VRS IBC Financial Results FAQs
Slide 33: Financial Results FAQs
Financial Results FAQs Q Why did operating profit and net profit up to the second quarter decrease year on year? License sales, driven by our core product System Answer, account for approximately 50% of both net sales and profit. A On the other hand, we are working to expand our security-focused sol
Slide 34: Appendix
"VES * |BC Appendix
Slide 35: Strengthening Customer Touchpoints
Strengthening Customer Touchpoints ⚫ By participating in trade shows and large-scale conferences, we will create touchpoints with information systems departments and management, increase awareness of our company and products, and strengthen our presence within the industry, thereby expanding sales c
Slide 36: Social Infrastructure Supported by IT
Social Infrastructure Supported by IT IT is now used in almost everything we need in our daily lives IT is the computer infrastructure that supports social activities behind the scenes ⚫ IT is essential for businesses to provide services and conduct business, and for consumers to live their lives. D
Slide 37: The Need for IT System and Network Monitoring
The Need for IT System and Network Monitoring An IT failure will have a major impact on the lives of many people. IT systems must always operate normally. ⚫ When an IT failure occurs, it can have an impact such as not being able to withdraw money from banks, not being able to shop at stores, or not
Slide 38: What Is System Answer G3, Our Flagship Product?
What Is "System Answer G3," Our Flagship Product Developed In-house? ⚫ It is a tool for monitoring whether a company's IT systems and networks are functioning properly. ⚫ By simply connecting System Answer G3 to each device, monitoring settings are configured automatically without the need for advan
Slide 39: Why Is System Answer G3 Adopted by So Many Companies?
Why Is System Answer G3 Adopted by So Many Companies? Point Enables an at-a-glance understanding of the status of the entire IT system across multiple 1 vendors on a single screen Before Implementing System Answer G3 After implementing System Answer G3 Internet Cloud Internet Cloud service service N
Slide 40: Case Study: Tokyo Stock Exchange
Case Study: Tokyo Stock Exchange Stable Operation of the Network that Supports Japan's Largest Securities Trading Market: 13 years of protecting the JPX Group's core network "arrownet" System Answer G3 Finance/Insurance System overview All communications within the Japan Exchange Group (including th
Slide 41: Why Is System Answer G3 Adopted by So Many Companies?
Why Is System Answer G3 Adopted by So Many Companies? Point 2 No need for highly specialized engineers to build and operate monitoring configurations Open-source software System Answer G3 Building and Building and operation operation Company A Company B Company C Company D Network devices products p
Slide 42: Examples of Issues Faced by a Board of Education
Examples of Issues Faced by a Board of Education ⚫ Because Boards of Education undergo regular personnel changes, there is a risk that IT operations may become difficult if newly assigned staff members lack experience in system operations. ■Board of Education organizational structure Possibility tha
Slide 43: Examples of Challenges in Government Administration
Examples of Challenges in Government Administration ⚫ Amendments to the Local Autonomy Act are driving DX in local governments, resulting in changes to the networks and tools they use. As operations become more complex, there is a risk that staff without IT expertise will have difficulty responding
Slide 44: Case Study: Kanagawa Prefectural Board of Education
Case Study: Kanagawa Prefectural Board of Education Protecting the infrastructure of 169 schools in the prefecture through proactive preventive maintenance! Eliminating dependency on specific individuals: To pass on and maintain a high operational standard for the next five to ten years Government,
Slide 45: System Answer Shares in Local Governments
System Answer Shares in Local Governments ⚫ The adoption rate in prefectures is 32%, and 20% in government ordinance cities, etc.. ⚫ It is used not only by local government operations staff, but also by companies that undertake operations management for local governments. Prefectures Government ordi
Slide 46: Why Is System Answer G3 Adopted by So Many Companies?
Why Is System Answer G3 Adopted by So Many Companies? Point High barriers to entry make it difficult for other companies to undertake development and 3 operations comparable to ours Achieving multi-vendor support Identify individual Continuous Version upgrades specifications of verification and Keep
Slide 47: Revenue Structure (Growth Drivers)
Revenue Structure (Growth Drivers) 47
Slide 48: Revenue Structure (Growth Drivers)
Revenue Structure (Growth Drivers) ⚫ Our revenue structure is supported by a business model that combines stability and high profitability, with a recurring sales ratio of over 70%, a System Answer renewal rate of over 95%, and an operating profit margin of over 20%, ensuring a strong business found
Slide 49: Synergies with Security Products
Synergies with Security Products ⚫ By combining the server and network performance data collected by System Answer G3 (SA) with logs and detection information from various security products, we can more accurately assess the security situation and make proposals (upselling and cross-selling) for sol
Slide 50: Synergies with the Integration Business
Synergies with the Integration Business ⚫ Provides a one-stop service for the design, construction, verification, and operation of IT infrastructure, including networks, servers, virtual platforms, and cloud environments. ⚫ In addition to infrastructure optimization based on environment-specific per
Slide 51: IBC's Business Mission
Mission IBC's Business Mission Achieve zero IT failures 51
Slide 52: Disclaimer
Disclaimer [Disclaimer and Caution Regarding Forward-Looking Statements] This document is intended to provide financial and management information about our company and does not provide any guarantees regarding the content. The information contained in this document relating to companies other than
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