Business Brain Showaota Inc. · TSE:9658

Business Brain Showaota — H1 FY2023 Earnings Presentation

37 slides from Business Brain Showaota's earnings presentation, Nov 21, 2023

Slide 1: 1st Half Financial Results Briefing for the Fiscal Year Ended March 2024
1st Half Financial Results Briefing for the Fiscal Year Ended March 2024 Securities code: 9658 November 21, 2023 Business Brain Showa-Ota Inc. © 2023 Business Brain Showa-Ota Inc.
Slide 2: Medium-term Management Plan 2021-2023 Progress Report
Digital and analog, HR and technology, cloud and on-site Developing a hybrid near future with customers Business Brain Showa-Ota Medium-term Management Plan 2021-2023 Progress Report © 2023 Business Brain Showa-Ota Inc.
Slide 3: Goal 2030 (repost)
Goal 2030 (repost) Goals and Values of the BBS Group Back Office Comprehensive Supporter Become a new management partner Sustainability Management / Strengthening human resources Sales Profit Sales Profit 40 billion yen 3.4 billion yen 100 billion yen 10 billion yen * Maintain 70% of consulting/SI b
Slide 4: BBS 2023 Progress Summary
BBS 2023 Progress Summary Company-wide Business Progress Business Strategy Corporate Strategy strategy Strengthen group synergies “R” CN2 strategy Revenue Orders received among Royal Customer sales group companies Strengthen Human 4,398 Resources Hands-on internships Strengthen million yen 57 mid-ca
Slide 5: Business Progress
Business Progress Revenue 100,000 Business profit Unit: millions of yen Unit: millions of yen 10,000 37,062 34,000 3,208 32,346 31,160 2,745 2,473 2,400 29,159 19,436 2,200 17,309 GSX 1,677 15,026 MICS after 1,578 GSX MICS deconsolidation 1,097 after deconsolidation 17,626 16,988 1,531 1,365 14,133
Slide 6: Capital Policy - Measures -
Capital Policy - Measures - ROE Target Pay reliable dividend Strengthen M&As and alliances Target Payout ratio Reason Focused resources on Basic policy of business models centered on management accounting Made Fresco Inc. a subsidiary For the BBS Group Interim dividend increase Measures Expanded and
Slide 7: Company-wide strategy: M&As - Made Fresco Inc. a subsidiary
Company-wide strategy M&As – Made Fresco Inc. a subsidiary Background Deepening the BBS cycle / Purpose Enhancing and expanding production management-related solutions to provide deeper management accounting Enabling the provision of consistent services to customers in the manufacturing and construc
Slide 8: Promoting Employee Engagement
Promoting Employee Engagement Reaffirming corporate culture - In anticipation of Goal 2030 - Goal 2030 Sales 100 billion yen Profit 10 billion yen B B S Sustainability Management / Strengthening human resources ― Reaﬃ rming corporate principles― Creation Accountab Partnership ility © 2023 Business B
Slide 9: Dialogs with Executives
Dialogs with Executives Purpose of dialogs with executives Held interactive dialogs with BBS executives as an opportunity for employees to think more deeply about “corporate culture (corporate philosophy/corporate principles)” and “diversity and inclusion” and how they can put them into practice. ©
Slide 10: DX (Digital Transformation)
DX (Digital Transformation) DX of back office operations DX of group companies Improve operational Roll out BBSʼs DX initiatives to efficiency through DX of group companies back office operations Support for understanding the Use RPA/AI-OCR to promote needs of each company and operational efficiency
Slide 11: Better IR Information (English versions available)
Better IR Information (English versions available) Financial results Financial summary briefing(Explanatory Notice of AGMs materials /transcriptions) URL: https://www.bbs.co.jp/english/ir/accounting/ URL: https://www.bbs.co.jp/english/ir/briefing/ URL: https://www.bbs.co.jp/english/ir/general/ © 202
Slide 13: Awards and Social Contribution Activities
Awards and Social Contribution Activities Major awards “mcframe Award” Excellent Partner • Recognized for customer perspective and consulting in the manufacturing industry mcframe Award 2023 award ceremony “Biz∫ AWARD 2023” Project Award • Recognized for advancing multiple projects mainly in the rea
Slide 14: Financial Highlights
Financial Highlights Hitoshi Uehara Senior Executive Officer, General Manager, Administration Division © 2023 Business Brain Showa-Ota Inc.
Slide 15: Consolidated Operating Results
[Financial Highlights] Consolidated Operating Results (millions of yen) Change from Earnings* Ratio to 1st half FY2022 1st half FY2023 previous year forecast expected value Orders received 19,117 17,124 -10.4% - - Revenue 17,626 16,988 -3.6% 16,000 106.2％ Business profit 1,531 1,365 -10.8% 1,200 113
Slide 16: Adjustment from Business Profit to Quarterly Profit Before Tax
Adjustment from Business Profit to Quarterly Profit Before Tax (millions of yen) 1st half FY2022 1st half FY2023 Business profit 1,531 1,365 Gain from loss of control of subsidiaries － 18,154 Other 1 － Operating profit 1,532 19,519 Financial revenue 41 26 Financial expenses 62 16 Share of profit (lo
Slide 17: Orders Received and Backlog of Orders (financial reporting basis)
[Financial Highlights] Orders Received and Backlog of Orders (financial reporting basis) 42,171 (millions of yen) Decrease due to deconsolidation Orders: 16% decrease YoY 33,647 Backlog of orders: 32% decrease YoY 29,852 23,054 ・Consulting/System development 28,163 〜Impact of deconsolidating GSX 16,
Slide 18: Orders Received and Backlog of Orders (after deconsolidation)
[Financial Highlights] Orders Received and Backlog of Orders (after deconsolidation) 42,171 After adjusting for the impact of (millions of yen) deconsolidating GSX and others Orders received: 2.2% increase YoY 33,647 ・Consulting/System development +487 million yen 29,852 23,054 〜Strong performance i
Slide 19: Sales Revenue (financial reporting basis)
[Financial Highlights] Sales Revenue (financial reporting basis) (millions of yen) Decrease due to impact of 37,063 deconsolidation Yoy decrease of 638 million or 3.6% 32,346 29,159 Consulting/System development -774 million yen 28,351 ・Deconsolidation of GSX -2,172 million yen 19,437 (Information s
Slide 20: Business Profit (financial reporting basis)
[Financial Highlights] Business Profit (financial reporting basis) Business profit margin (full-year) 8.7% 8.5% Decrease due to impact of deconsolidation Business Business profit 8.0% profit margin (millions of (first half) yen) Target business profit margin 3,208 1st half FY2022 (previous interim)
Slide 21: Income (Loss) by Segment (financial reporting basis)
[Financial Highlights] Income (Loss) by Segment (financial reporting basis) Sales and profits decreased in the consulting and system development business due to deconsolidation. Consulting and system development business Management services (BPO) business Revenue Revenue ■ YoY: -774 million yen (-6%
Slide 22: Income (Loss) by Segment (reflecting deconsolidation)
[Financial Highlights] Income (Loss) by Segment (reflecting deconsolidation) Sales and profits steadily increased in both segments Consulting and system development business Management services (BPO) business Revenue Revenue ■ YoY: 1,397 million yen (+12%) ■ YoY: 305 million yen (+8%) 12,801 (millio
Slide 23: Details of Consulting and System Development Business
[Financial Highlights] Details of Consulting and System Development Business (financial reporting basis) (millions of yen) Revenue Business profit 1st half 1st half YoY Increase 1st half 1st half YoY Increase FY2022 FY2023 (decrease) FY2022 FY2023 (decrease) Accounting system consulting and system d
Slide 24: Consulting and System Development Business Details (GSX deconsolidation)
[Financial Highlights] Consulting and System Development Business Details (GSX deconsolidation) (millions of yen) Revenue Business profit 1st half 1st half YoY Increase 1st half 1st half YoY Increase FY2022 FY2023 (decrease) FY2022 FY2023 (decrease) Accounting system consulting and system developmen
Slide 25: Management Services (BPO) Business Details
[Financial Highlights] Management Services (BPO) Business Details (millions of yen) Revenue Business profit 1st half 1st half YoY Increase 1st half 1st half YoY Increase FY2022 FY2023 (decrease) FY2022 FY2023 (decrease) HR and payroll related outsourcing 1,479 1,572 93 224 261 37 Outsourcing for glo
Slide 26: Management Services (BPO) Business Details (excluding MICS)
[Financial Highlights] Management Services (BPO) Business Details (excluding MICS) (millions of yen) Revenue Business profit 1st half 1st half YoY Increase 1st half 1st half YoY Increase FY2022 FY2023 (decrease) FY2022 FY2023 (decrease) HR and payroll related outsourcing 1,479 1,572 93 224 261 37 Ou
Slide 27: Consolidated B/S [Assets] (IFRS)
[Financial Highlights] Consolidated B/S [Assets] (IFRS) Assets (millions of yen) 〔20,651〕〔22,786〕〔28,296〕〔30,393〕〔43,427〕 Other non-current assets 2,287 Deferred tax assets Other financial assets 16,684 Investments accounted for 1,951 1,773 using the equity method 2,654 Right-of-use assets 2,495
Slide 28: Consolidated B/S [Liabilities and Equity] (IFRS)
[Financial Highlights] Consolidated B/S [Liabilities and Equity] (IFRS) Liabilities and Equity (millions of yen) 〔20,651〕〔22,786〕〔28,296〕〔30,393〕〔43,427〕 Lease liability (floating) 2,094 Trade and other payables 4,553 1,863 Contract liability 3,947 Other current liabilities 2,379 2,328 Lease lia
Slide 30: Consolidated Operating Results
[Earnings Forecast] Consolidated Operating Results The full-year outlook remains unchanged despite strong progress in the second quarter (millions of yen) Year ended March Year ended March Year ending 31, 2024 31, 2024 Progress of full- March 31, 2023 Year-on-year year outlook comparison 1 half resu
Slide 31: Dividend
[Earnings Forecast] Dividend Interim dividend of 36 yen Annual forecast of 75 yen based on the basic policy of a dividend payout ratio of 40% 40.0% 38.0% 37.9% 30.9% Dividend 30.2% 30.0% payout 27.0% 27.3% ratio 22.8% 23.4% 23.3% 23.3% 18.0% 17.2% Dividend 6 7.5 9.5 11 14 15 17.5 20 27.5 30 45 48 75
Slide 32: Thank you for joining us today.
Thank you for joining us today. NOTE The earnings forecasts in this document are based on managementʼs assumptions and beliefs in light of the information available to it at the time of writing. Actual results may differ from these forecasts due to various factors and risks, and no assurances or gua
Slide 34: BBS DX Initiatives for Back Office Operations
BBS DX Initiatives for Back Office Operations ~Improving the efficiency of sales and accounting operations~ In order for the BBS Group to achieve Goal 2030, continuous reform is required in the back-office operations that support it, and this is a measure to strengthen the foundation that supports t
Slide 35: Company Profile
[Company Profile] Name Name in English Business Brain Showa-Ota Inc. Headquarters 15F Hibiya Fort Tower, 1-1-1 Nishishimbashi, Minato-ku, Tokyo Headquarters, Osaka Branch, Nagoya Branch, Shizuoka Branch, Outsourcing Services Offices Division (Shizuoka Office), Global Shared Services Division (Kumamo
Slide 36: Company Profile: BBS Group Network
[Company Profile] BBS Group Network GLOBAL SECURITY EXPERTS Inc. Provides information security consulting and solutions https://www.gsx.co.jp Fresco Inc. joyworks inc. Provides engineering CAD/PDM system development Provides system development, application development, https://www.fresco.co.jp/ web

Business Brain Showa-Ota — H1 FY2023 Earnings Presentation on 6ix

Business Brain Showaota — H1 FY2023 Earnings Presentation

Slide 1: 1st Half Financial Results Briefing for the Fiscal Year Ended March 2024

Slide 2: Medium-term Management Plan 2021-2023 Progress Report

Slide 3: Goal 2030 (repost)

Slide 4: BBS 2023 Progress Summary

Slide 5: Business Progress

Slide 6: Capital Policy - Measures -

Slide 7: Company-wide strategy: M&As - Made Fresco Inc. a subsidiary

Slide 8: Promoting Employee Engagement

Slide 9: Dialogs with Executives

Slide 10: DX (Digital Transformation)

Slide 11: Better IR Information (English versions available)

Slide 12: Topics

Slide 13: Awards and Social Contribution Activities

Slide 14: Financial Highlights

Slide 15: Consolidated Operating Results

Slide 16: Adjustment from Business Profit to Quarterly Profit Before Tax

Slide 17: Orders Received and Backlog of Orders (financial reporting basis)

Slide 18: Orders Received and Backlog of Orders (after deconsolidation)

Slide 19: Sales Revenue (financial reporting basis)

Slide 20: Business Profit (financial reporting basis)

Slide 21: Income (Loss) by Segment (financial reporting basis)

Slide 22: Income (Loss) by Segment (reflecting deconsolidation)

Slide 23: Details of Consulting and System Development Business

Slide 24: Consulting and System Development Business Details (GSX deconsolidation)

Slide 25: Management Services (BPO) Business Details

Slide 26: Management Services (BPO) Business Details (excluding MICS)

Slide 27: Consolidated B/S [Assets] (IFRS)

Slide 28: Consolidated B/S [Liabilities and Equity] (IFRS)

Slide 29: Earnings Forecast

Slide 30: Consolidated Operating Results

Slide 31: Dividend

Slide 32: Thank you for joining us today.

Slide 33: APPENDIX

Slide 34: BBS DX Initiatives for Back Office Operations

Slide 35: Company Profile

Slide 36: Company Profile: BBS Group Network

Slide 37: END