Ubicom Holdings. Inc. · TSE:3937
Ubicom — FY2023 Earnings Presentation
35 slides from Ubicom's earnings presentation, May 9, 2024
Slide 1: Full Year Financial Results
Ubicom Holdings, Inc. (Prime Market of TSE: 3937) FY2023 ended March 31, 2024 Full Year Financial Results May. 9, 2024
Slide 2: Table of Contents
Table of Contents 01 Overview of consolidated financial results (P/L) for FY2023 p3 02 Medical business P4 03 Global business p16 04 Earnings forecast for FY2024, for promotion of the p22 second growth phase 05 Appendix p28 © Ubicom Holdings, Inc. 2
Slide 3: Overview of consolidated financial results (P/L) for FY2023
Overview of consolidated financial results (P/L) for FY2023 As our business grew thanks to the favorable external environment, Consolidated sales were 5,942million yen, 113.3% of the previous fiscal year, hitting a record high. Full-year results in FY2022 Full-year results in FY2023 YoY [unit: milli
Slide 4: Medical Business
Medical Business 4
Slide 5: Overview of results of each segment in FY2023: Medical business
Overview of results of each segment in FY2023: Medical business Both sales and operating income of the medical business hitting a record high. medical business Medical business Full-year results in FY2022 Full-year results in FY2023 Thanks to strong demand, YoY [unit: million yen] comparison sales g
Slide 6: Review of FY2023: Medical business
Review of FY2023 Medical business The DX of medical institutions has been accelerated due to the Workplace Reform related laws application to medical doctors from April 2024. In May 2023, COVID-19 was recategorized into class-5 infectious diseases, so medical institutions started post-pandemic measu
Slide 7: AI×Subscription model services sales ratio
AI×Subscription model services sales ratio 8% Others(Contracted development・ the insurance knowledge platform) In the future, we aim to increase profitability by expanding the insurance knowledge platform in the life insurance field. 17% 2.7億円 Mighty QUBE® Series 8% We continuously aim to expand sal
Slide 8: IT solution for supporting the management of medical institutions (doctors)
IT solution for supporting the management of medical institutions AI×Subscription model Benefits of adopting business support solutions for medical doctors *1 Return on investment: 1,154% (Example: a medium-sized hospital with 300 beds・ ※ Medical 01 institutions Increase in revenue: 61.98M yen/year)
Slide 9: IT solution for supporting the management of medical institutions (staff)
IT solution for supporting the management of medical institutions AI×Subscription model Benefits of adopting business support solutions for medical staffs 医師向け業務支援ソリューション導入のメリット * Return on investment: 411% (Example: a medium-sized hospital with 300 beds Medical Increase in revenue: 9.12M yen/year)
Slide 10: 「Mighty」series changes in our users
「Mighty」series changes in our users AI×Subscription model +1,660 （Increase Year-on-Year 243％） (+1,660) 20,817 (+682) Core Solutions (+1,023) 19,157 (+638) 18,475 Mighty Series 17,452 16,814 【Reason for the increase】 The application of The Workplace Reform rela 13,602 14,141 15,041 15,598 17,109 to m
Slide 11: To implement measures for cross-selling Mighty QUBE Hybrid
To implement measures for cross-selling “Mighty QUBE® Hybrid” Small and medium-sized hospitals make up 91% of all hospitals and we will enhance marketing target at them. Through the alliances with electronic medical record manufacturers mainly for small and medium-sized hospitals, the sales of “Migh
Slide 12: Focus on the electronic medical record market for small and medium-sized hospitals
To implement measures for cross-selling “Mighty QUBE® Hybrid” Mighty QUBE® Hybrid Focus on the electronic medical record market for small and medium- Market size sized hospitals *The linkage with electronic medical records is indispensable. Installation rate of electronic medical records 49％ Report
Slide 13: Market size for Mighty QUBE Hybrid: 6.2 billion yen
Market size for Mighty QUBE® Hybrid: 6.2 billion yen The market size of Mighty QUBE® Hybrid is 6.2 billion yen. This includes the implementation of cross-selling measures to facilities that have already adopted electronic medical records for small and medium-sized hospitals and the creation of the N
Slide 14: Progress of the insurance knowledge platform
Progress of the insurance knowledge platform ➢ Annual contract based on the number of statements of medical expenses ➢ Million to tens of millions yen/year sales per company ➢ A recurring model aimed at a GP of 75% ➢ AI×Subscription model Life insurance market No. of life insurance companies announc
Slide 15: Promotion of new platform business
Promotion of new platform business We will enter a new business field by utilizing our customer base, medical database, and intellectual property. We started preparations for “a remote service platform” in the runup to promoting the new platform business. ① Support for over 20,000 medical institutio
Slide 16: Global Business
Global Business 16
Slide 17: Overview of each segment in FY2023: Global business
Overview of each segment in FY2023: Global business The sales of the global business marked a record high. Operating income dropped from the previous fiscal year due to the upfront investment and the decline in utilization rate. global business Full-year results in FY2022 Full-year results in FY2023
Slide 18: Reasons for failure to reach the full-year forecast and points for achieving the goals
Reasons for failure to reach the full-year forecast and points for achieving the goals in the next fiscal year Sales and operating income fell below the forecast amounts due to the upfront investment and the decline in utilization rate. Operating income was about 300 million yen below the forecast.
Slide 19: Review of FY2023: Global business
Review of FY2023 Global business In response to the Economic Security Promotion Act enacted in May 2022, large companies and leading system integrators reconsidered their suppliers. As a result, the demand for the services of our company as a safe outsourcee grew considerably. Start of transactions
Slide 20: Survey on the actual situation of response to the Economic Security Promotion Act
Survey on the actual situation of response to the Economic Security Promotion Act About 90% of offshore development staff of listed companies concern about “geopolitical risks” in regions of their offshore business. In response to the Economic Security Promotion Act, many companies plan to reconside
Slide 21: Impact of currency fluctuations
Impact of currency fluctuations Currency fluctuations caused valuation losses on our overseas subsidiaries yen-based assets. However, FX risk associated with our business are under control. ▲9.0 million pesos Exchange Rate Trends between : Business domain the Japanese Yen and the Philippine Peso Reg
Slide 22: FY2024 Forecast: Promoting the Second Growth Phase
FY2024 Forecast Promoting the Second Growth Phase 22
Slide 23: Earnings forecast for FY2024
Earnings forecast for FY2024 Towards the second growth phase (investment return phase), we plan to increase both operating income and ordinary income by more than 40% by enhancing the utilization rate of advanced technology engineers and capturing on demand since the establishment of the company. ①
Slide 24: Accelerate AI×Subscription model
① Operation of multiple new platforms (medical business) To expand the business with new platforms based on the medical customer base, a medical database, and intellectual property. We aim to develop a new recurring model for expanding sales and profit. Markets we will enter in the second growth pha
Slide 25: Launch the consulting business by merging two existing departments
※ ②Launch the consulting business by merging two existing departments into the technology consulting business We respond to the clients who are affected by the Economic Security Promotion Act; there has been the considerable increase for our company as a trusted outsourcing partner. Utilizing 30 yea
Slide 26: Implementing multiple measures to increase operating income
③Implementing multiple measures to increase operating income （Technology consulting business） The 2nd growth phase（ medium/long-term vision ） New market and Measures to improve operating margin ➀ ② ③ Up utilization rate Launch Expansion business consulting business by highly skilled Alliance and M&A
Slide 27: Promotion of measures in the second growth phase
Promotion of measures in the second growth phase ① Operation of multiple new platforms (medical business) ② Full-scale launch of Mighty QUBE® Hybrid and MightyChecker® EX’s cross-selling (medical business) ③ Enhancement of marketing for consulting in Japan through organizational reform (technology c
Slide 28: Appendix
Appendix 28
Slide 29: Major releases and topics in FY2023
Major releases and topics in FY2023 We reported the progress of the memorandum signed for expanding the business of the Ubicom Group further in the presence of President Marcos of the Philippines (on Dec. 18, 2023). ⚫ During the trip of President Ferdinand Marcos to Japan, a session for reporting th
Slide 30: Medical Business Win-Win Investment
Promotion of our group’s business that is socially meaningful Considering business and capital alliances with leading global companies for the second growth phase Provision of solutions that are beneficial to three things: reform of workstyles of medical doctors, which are Training of young IT engin
Slide 31: ESG: For sustainable growth of business, society, and client companies
ESG: For sustainable growth of business, society, and client companies Goals Concrete activities Related SDGs ・To make the electric power consumed at the head office 100% derived from ・To reduce CO2 emissions E renewable energy ・Investment in equipment of ・Global partnership subsidiaries in the Phil
Slide 32: Dividend for FY2023
Dividend for FY2023 As we have established a robust revenue base thanks to the recent strong demand, we distributed a year-end dividend of 13.00 yen/share, up 2 yen/share from that in the previous fiscal year. Fiscal year FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 Annual dividend 0 5 5 7 9 11
Slide 33: Corporate Profile
Corporate Profile ■Corporate name: Ubicom Holdings, Inc. (Prime Market of TSE: 3937) ■Strategic markets: healthcare, finance, public services, automobiles, manufacturing, robotics, etc. ■Business description: Technology Consulting Business In order to solve the problem of shortage of IT engineers an
Slide 34: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements ▪ The materials and information provided in this announcement include forward-looking statements based on our current estimates and expectations at this point of time. ▪ Such forward-looking statements are subject to various risks and uncertaintie
Slide 35: © Ubicom Holdings, Inc.
Ubicom Holdings, Inc. y fi a 14 35