Freebit Co., Ltd. · TSE:3843
Freebit — Q3 FY2025/04 Earnings Presentation
42 slides from Freebit's earnings presentation, Mar 14, 2025
Slide 1: Financial Results for the Third Quarter FY2025/04
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. FY2025/04 Financial Results for the Third Quarter FreeBit Co., Ltd. March 14, 2025
Slide 2: Agenda
Agenda 1. Consolidated Financial Results for the 3rd Quarter of FY2025/04 3 2. Results by Segment for the 3rd Quarter of FY2025/04 12 3. Progress of Consolidated Financial Results for the 3rd Quarter of 24 FY2025/04 4. Appendix 31 FreeBit Co., Ltd. All Rights Reserved. 2
Slide 3: 1. Consolidated Financial Results for the 3rd Quarter of FY2025/04
1. Consolidated Financial Results for the 3rd Quarter of FY2025/04 FreeBit Co., Ltd. All Rights Reserved. 3
Slide 4: Consolidated period
Impact of change in fiscal year-end of consolidated subsidiaries (GIGAPRIZE and its subsidiaries) The GigaPrize Group (GPG) changed its fiscal year-end from March 31 to April 30 in the previous consolidated fiscal year, aligning it with our consolidated fiscal year-end. As a result, in the previou
Slide 5: Summary of Consolidated Financial Results for the Third Quarter
Summary of Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending April 30, 2025 FY2024/04 Q3 (Reference) FY2025/04 Q3 FY2024/04 Q3 (including the impact of (Millions of yen) (Excluding the impact of (Reference) the fiscal year-end (Reference) the fiscal year-end Percentage c
Slide 6: Topics for the Third Quarter of the Fiscal Year
Topics for the Third Quarter of the Fiscal Year Ending April 2024 Operating profit to profit Net sales attributable to owners of parent Results Increase in net sales YoY comparison Expansion of offerings + (values excluding the impact of the change in in FreeBit's B2B2X (B/C) fiscal year-end)*1 mobi
Slide 7: YoY Variance Analysis: Net Sales
YoY Variance Analysis: Net Sales All segments, led by the 5G lifestyle support business, performed steadily (YoY comparison excluding the impact of the change in fiscal year-end: 6.0% increase) Enterprise/Creator (Millions of yen) 5G Lifestyle 5G DX Support Fluctuations in inter- Support Business: B
Slide 8: YoY Variance Analysis: Operating profit
YoY Variance Analysis: Operating profit While the 5G Infrastructure Support Business saw a decrease, the 5G Lifestyle Support Business and the Enterprise/Creator 5G DX Support Business performed steadily (YoY comparison excluding the impact of the change in fiscal year-end: 9.8% increase) Enterprise
Slide 9: Investment in New Growth Drivers
Investment in “New Growth Drivers” Investments include data center relocation, multifaceted development of the “StandAlone” platform, and web3-related projects 5G Infrastructure Support Business (Millions of yen) Examples of anticipated new growth drivers 5G Lifestyle Support Business Enterprise/Cre
Slide 10: YoY Variance Analysis: Ordinary profit
YoY Variance Analysis: Ordinary profit Steady rise in ordinary profit driven by strong operating profit performance (YoY comparison excluding the impact of the change in fiscal year-end: 10.5% increase) Increase in Gain on sale of Capital and business (Millions of yen) operating investment alliance/
Slide 11: YoY Variance Analysis: Profit Attributable to Owners of Parent
YoY Variance Analysis: Profit Attributable to Owners of Parent Profit attributable to owners of parent declined YoY due to the absence of extraordinary income recorded in the previous fiscal year (YoY comparison excluding the impact of the change in fiscal year-end: -6.8%) (Millions of yen) Increase
Slide 12: 2. Results by Segment for the 3rd Quarter of FY2025/04
2. Results by Segment for the 3rd Quarter of FY2025/04 FreeBit Co., Ltd. All Rights Reserved. 12
Slide 13: Composition by Segment
Composition by Segment Net sales increased with steady progress in all segments. Segment profit decreased in the 5G Infrastructure Support Business due to a partial increase in costs, while other segments recorded profit growth 5G Infrastructure Support Business Net sales Segment profit or loss*1 18
Slide 14: Performance Progress: 5G Infrastructure Support Business Performance zone
Performance Progress: 5G Infrastructure Support Business Examples of anticipated new growth drivers SiLK VISION 2020 SiLK VISION 2024 SiLK VISION 2027 SiLK VISION 2030 Collaborative areas with GigaPrize, new B2B platforms, Platform Maker services (web3, 5G, IoT, AI), DX, healthcare, IoT fields, etc.
Slide 15: Performance Progress: 5G Infrastructure Support Business
Performance Progress: 5G Infrastructure Support Business Despite increased service usage for B2B2X (B/C) mobile, profit decreased by 25.7% YoY due to communication quality enhancement expenses, one-off expenses, increased common costs, etc. Net sales / Segment profit (loss) YoY variance analysis for
Slide 16: Performance Progress: 5G Infrastructure Support Business
Performance Progress: 5G Infrastructure Support Business A portable fixed IP address service that enables easy and highly secure access to internal servers from outside the office, A comprehensive MVNO support service that packages lines, network independent of the contracted provider/communication
Slide 17: Performance Progress: 5G Lifestyle Support Business Performance zone
Performance Progress: 5G Lifestyle Support Business Examples of anticipated new growth drivers SiLK VISION 2020 SiLK VISION 2024 SiLK VISION 2027 SiLK VISION 2030 Collaborative areas with GigaPrize, new B2B platforms, Platform Maker services (web3, 5G, IoT, AI), DX, healthcare, IoT fields, etc. Crea
Slide 18: Performance Progress: 5G Lifestyle Support Business
Performance Progress: 5G Lifestyle Support Business A 27.3% YoY profit increase (excluding the impact of the change in fiscal year-end) was achieved due to the steady progress of 5G Homestyle and cost control measures etc. Net sales / Segment Profit (Loss) YoY Variance Analysis for Segment Profit (L
Slide 19: Performance Progress: 5G Lifestyle Support Business
Performance Progress: 5G Lifestyle Support Business The number of units served by 5G Homestyle (GPG)'s key indicator, the ISP service for apartment buildings, increased by 90,000 from the end of the previous fiscal year (1.209 million units), reaching a cumulative total of 1.299 million units, showi
Slide 20: Performance Progress: Enterprise/Creator 5G DX Support Business Performance zone
Performance Progress: Enterprise/Creator 5G DX Support Business Examples of anticipated new growth drivers SiLK VISION 2020 SiLK VISION 2024 SiLK VISION 2027 SiLK VISION 2030 Collaborative areas with GigaPrize, new B2B platforms, Platform Maker services (web3, 5G, IoT, AI), DX, healthcare, IoT field
Slide 21: Enterprise/Creator 5G DX Support Business: Performance Progress
Enterprise/Creator 5G DX Support Business: Performance Progress Profit increased by 26.6% YoY, mainly due to the steady growth in net sales in the affiliate business and the success of cost-cutting measures Net Sales and Segment Profit (Loss) Segment Profit (Loss) YoY Variance Analysis (Millions of
Slide 22: Enterprise/Creator 5G DX Support Business: Topics
Enterprise/Creator 5G DX Support Business: Topics (Announced on November 6, 2024) Full Speed, in collaboration with Group company For it, has launched a consulting service for overseas affiliate management By connecting Full Speed’s proprietary one-tag platform for affiliate advertising, DeepTrack,
Slide 23: Enterprise/Creator 5G DX Support Business: Topics
Enterprise/Creator 5G DX Support Business: Topics We have released a number of new apps for artists on StandAlone. We aim to expand the practice of building fan communities in the 5G/web3 era. ■StandAlone apps released in FY2025/04 (Dates in parentheses indicate when released) Supporting global crea
Slide 24: 3. Progress of Consolidated Financial Results for the 3rd Quarter of FY2025/04
3. Progress of Consolidated Financial Results for the 3rd Quarter of FY2025/04 FreeBit Co., Ltd. All Rights Reserved. 24
Slide 25: Net Sales and Operating Profit Targets Under SiLK VISION 2027
Net Sales and Operating Profit Targets Under SiLK VISION 2027 Millions of yen Transformation 80,000 Term SiLK VISION 2024 SiLK VISION 2027 12,000 70,000 Net sales Net sales 63,000–70,000 Operating profit Operating profit 10,000 60,000 54,000 52,009 51,306 8,000 50,000 46,771 43,075 8,000 5,700 40,00
Slide 26: Trend in Cumulative Quarterly Results
Trend in Cumulative Quarterly Results Net sales and operating profit for the third quarter of the fiscal year ending April 2025 were solid compared to the full-year earnings forecast (Millions of yen) Net sales Operating profit Earnings forecast Earnings forecast 54,000 5,700 52,009 51,306 5,489 46,
Slide 27: Progress Towards the Consolidated Earnings Forecast for FY April 2025
Progress Towards the Consolidated Earnings Forecast for the Fiscal Year Ending April 2025 We saw steady growth in net sales and each line-item profit through the third quarter. Expenses related to the capital and business alliance and TOB for GIGA PRIZE are expected to be incurred as non-operating e
Slide 28: Major Press Releases Issued (on January 31, 2025)
Major Press Releases Issued (on January 31, 2025) FreeBit Forms Capital and Business Alliance with SoftBank Corp. and FreeBit To Commence TOB for Shares of Decides to Dispose of Treasury Shares through Third-Party Allotment GIGA PRIZE Co., Ltd. (Securities Code: 3830) For more details, Announced on
Slide 29: Major Press Releases Issued (on January 31, 2025)
Major Press Releases Issued (on January 31, 2025) Through our partnership with SoftBank and the delisting of GIGA PRIZE, we are boldly driving forward our transformation into a “web3 social implementation company leveraging expertise in telecommunications” with a four-pronged business strategy Trans
Slide 30: Updating the Capital Allocation Announced in SiLK VISION 2027
Major Press Releases Issued (on January 31, 2025) Updating the capital allocation announced in SiLK VISION 2027 to drive further sustainable growth and enhance corporate value When announced the SiLK VISION 2027 Cash-in Cash-out Others Sustainability, human capital investment, internal reserves, etc
Slide 31: 4. Appendix
4. Appendix FreeBit Co., Ltd. All Rights Reserved. 31
Slide 32: Corporate Profile and History
Corporate Profile and History (As of April 30, 2024) Corporate Profile History Company Name FreeBit Co., Ltd. May 2000 Established Head Office E-Space Tower, 3-6 Maruyama-cho, Shibuya-ku, Tokyo Mar. 2007 Listed on the TSE Mothers Market Made DREAM TRAIN INTERNET INC. (DTI) a consolidated Representat
Slide 33: Major Group Companies
Major Group Companies (As of April 30, 2024) 5G Infrastructure Support Business 5G Lifestyle Support Business Enterprise/Creator 5G DX Support Business FreeBit Co., Ltd. ISP support services, MVNE, cloud services, web3 related platforms https://freebit.com/en/ GIGA PRIZE Co., Ltd. Full Speed Inc. In
Slide 34: Segment Overview: 5G Infrastructure Support Business
Segment Overview 5G Infrastructure 5G eSIM Using 5G, eSIM, AI and Blockchain technology to provide infrastructure platforms that Support Business AI Blockchain connect people and products in a secure and affordable way Highlight Technology “Free you a bit” that began with “Free ISP’s ISP” “Emotion L
Slide 35: Segment Overview: 5G Lifestyle Support Business (TONE/DTI)
Segment Overview 5G Lifestyle We provide business platforms that support the creation of services for safe and secure lifestyles, health, workstyles, and housing Support Business (1) 5G Lifestyle (TONE/DTI) We provide mobile communication services using smartphones and fixed line internet-related se
Slide 36: Segment Overview: 5G Homestyle (GIGA PRIZE)
Segment Overview 5G Lifestyle We provide business platforms that support the creation of services for safe and secure lifestyles, health, workstyles, and housing Support Business (2) 5G Homestyle (GIGA PRIZE) We are also focusing on establishing a new service in addition to our provision of internet
Slide 37: Segment Overview: Enterprise/Creator 5G DX Support Business
Segment Overview Enterprise/Creator A business that supports the creation of platforms that enable everything from market creation and entry to the maintenance of 5G DX Support Business customer relationships for not only enterprises but for the creators and influencers who will be key to the future
Slide 38: Website information on SiLK VISION 2027 and the Integrated Report
Website information on SiLK VISION 2027 and the Integrated Report For more information, please visit our website home page and click on the appropriate images. SiLK VISION 2027 explanatory video https://freebit.com/ir/movie/movie_20240724.html (available in Japanese only) FreeBit, Here and The Road
Slide 39: Quarterly Segment Changes
Quarterly Segment Changes Stable sales growth through recurring charges and steady improvement of profit margin (Net sales) 5G Infrastructure Support Business 5G Lifestyle Support Business Enterprise/Creator 5G DX Support Business (Segment profit margin) 5G Infrastructure Support Business ５Ｇインフラ支援事業
Slide 40: Quantitative Information (Financial Indicators)
Quantitative Information (Financial Indicators) FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 /04 /04 /04 /04 /04 /04 /04 /04 /04 /04* Number of consolidated subsidiaries 11 11 14 20 24 27 19 20 21 21 Results (Millions of yen) Net Sales 21,469 28,389 35,222 38,653 50,365 55,2
Slide 41: Quantitative Information (Financial Indicators)
Quantitative Information (Financial Indicators) FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 /04 /04 /04 /04 /04 /04 /04 /04 /04 /04* Profitability Ratio of operating profit to net sales (%) 5.8 6.7 3.8 4.8 5.9 4.7 6.5 7.3 8.6 11.1 ROA (Return on assets) (%) 5.4 6.4 3.4 5.1
Slide 42: Disclaimer
Disclaimer Forward-looking statements in this document, including our forecasts, outlooks, targets, plans and strategies, are based on information that we believe to be reasonable at the time of preparation of this document and on certain assumptions (hypotheses). Actual results may differ materiall