Cybertrust Japan Co.ltd. · TSE:4498

Cybertrust Japan Co.ltd — Q2 FY2024 Earnings Presentation

49 slides from Cybertrust Japan Co.ltd's earnings presentation, Oct 29, 2024

Slide 1: FY2024 Q2 Financial Results
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. FY2024 Q2 Financial Results Second Quarter of the Fiscal Year Ending March 31, 2025
Slide 2: Executive Summary
▌ Executive Summary FY2024 Q2 Double-digit YoY increases in sales and profits, reaching record high Financial Results net sales and operating income - Performance driven by high growth-driver services contributing to earnings FY2024 Full-Year Q2 net sales and operating income both increased, showing
Slide 3: Agenda
◼ FY2024 Q2 Financial Summary Agenda (Including Services Realignment) ◼ Overview by Service Segment  Authentication and Security Services  Platform Services ◼ FY2024 Full-Year Forecast ◼ Appendix 3 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 4: FY2024 Q2 Financial Summary
◼ FY2024 Q2 Financial Summary (Including Services Realignment) ◼ Overview by Service Segment  Authentication and Security Services  Platform Services ◼ FY2024 Full-Year Forecast ◼ Appendix 4 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 5: FY2024 Q2 Consolidated Results (six-month total)
▌ FY2024 Q2 Consolidated Results (six-month total) YoY double-digit increase in both sales and profits, record high Q2 net sales and operating income 3,331 million yen Net sales rose 11.8% YoY to Operating income increased 27.8% YoY to 543 million yen FY23 Q2 FY24 Q2 (Unit: Millions of yen) YoY Chan
Slide 6: Trend in Quarterly Sales by Transaction Type
▌ Trend in Quarterly Sales by Transaction Type Growth driven by Q2 recurring services post leap in net sales growth high growth-driver services (Unit: Millions of yen) 1,842 1,837 Professional services 1,729 Licenses 1,661 1,643 Recurring services 1,536 1,560 1,537 421 415 1,468 1,468 1,493 1,408 49
Slide 8: Realignment of Services Offerings
▌ Realignment of Services Offerings Aiming for further growth by strengthening proposal capabilities to match customers’ total needs amid DX progress Previous Linux/OSS Services and IoT Services merged into Platform Services Old services alignment New services alignment Market environment changes Au
Slide 9: Sales by Service Segment (six-month total)
▌ Sales by Service Segment (six-month total) ■ Authentication and Security: Grew with accumulation of recurring services centered on high-growth-driver service iTrust ■ Platform: CentOS7 extended support posted strong sales growth on full-fledged monetization; EMLinux support also grew FY23 Q2 FY24
Slide 10: Overview by Service Segment
◼ FY2024 Q2 Financial Summary (Including Services Realignment) ◼ Overview by Service Segment  Authentication and Security Services  Platform Services ◼ FY2024 Full-Year Forecast ◼ Appendix 10 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 11: Authentication and Security Services | Performance and Initiatives
▌Authentication and Security Services | Performance and Initiatives by Service Segment Recurring services grew led by high-growth-driver service iTrust (Unit: Millions of yen) Authentication and Security FY23 Q2 FY24 Q2 Recurring service sales ratio of 85.7％ (+2.3pt YoY ) Service net sales (Six-mont
Slide 12: Quarterly Trend in KPI of High-Growth-Driver Service iTrust
▌Quarterly Trend in KPI of High-Growth-Driver Service iTrust Number of iTrust transactions (number of paid API use) grew (Number of transactions) Q1 Q2 Q3 Q4 Number of uses: 871 million per quarter YoY change: 1.3 times 8,719,449 Trust service boasting outstanding performance 6,559,760 3,633,852 1,6
Slide 13: Initiatives to Expand Scope of Use of iTrust
▌Initiatives to Expand Scope of Use of iTrust (Identity Verification) Expanding identity verification needs Adoptions Demand for digitalization of identity verification is expanding as Digitalization and tightening of standards for identity verification legal frameworks are put in place amid the dig
Slide 14: Platform Services
◼ FY2024 Q2 Financial Summary (Including Services Realignment) ◼ Overview by Service Segment  Authentication and Security Services  Platform Services ◼ FY2024 Full-Year Forecast ◼ Appendix 14 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 15: Platform Services | Performance and Initiatives
▌Platform Services | Performance and Initiatives by Service Segment Full-fledged monetization of CentOS extended support started in July; performance better than forecast (Unit: Millions of yen) FY23 Q2 FY24 Q2 ◼ CentOS community support ended in June before full-fledged Platform Services sales (Six
Slide 16: Initiatives to Expand Applications of AlmaLinux
▌Initiatives to Expand Applications of AlmaLinux Expand customer base in key infrastructure markets Collaboration with Fsas Technologies Target markets Key infrastructure Fsas Technologies has adopted AlmaLinux as its standard OS markets New! for PC servers Paid Proposals for Offering AlmaLinux exte
Slide 17: Initiatives to Expand Scope of Use of EMLinux
▌Initiatives to Expand Scope of Use of EMLinux Meeting standards and legal frameworks related to international Main initiatives safety standards New adoptions and cross-sales to existing customers Focused initiatives to expand earnings among operators requiring vulnerability management and long-term
Slide 18: FY2024 Full-Year Forecast
◼ FY2024 Q2 Financial Summary (Including Services Realignment) ◼ Overview by Service Segment  Authentication and Security Services  Platform Services ◼ FY2024 Full-Year Forecast ◼ Appendix 18 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 19: FY2024 Full-Year Forecast
▌FY2024 Full-Year Forecast Q2 net sales and operating income both increased, showing steady progress in achieving full-year targets YoY change FY23 FY24 Unit: Millions of yen Change Rate of change Net sales 6,466 7,200 +733 +11.3% Operating income 1,112 1,300 +187 +16.9% Operating margin (%) 17.2 18
Slide 20: FY2024 Dividend Forecast
▌FY2024 Dividend Forecast As of the beginning of FY2024, Cybertrust forecasts to continue paying a stable dividend Forecast of 17.50 yen per share Cybertrust’s basic dividend policy is to pay dividends from the surplus, once a year, as year-end Dividend dividend in a stable and continuous manner wit
Slide 21: Appendix
◼ FY2024 Q2 Financial Summary (Including Services Realignment) ◼ Overview by Service Segment  Authentication and Security Services  Platform Services ◼ FY2024 Full-Year Forecast ◼ Appendix 21 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 23: Sales by type of transaction before Services Realignment
[Reference] Sales by type of transaction in the three services before the change in Services Realignment Unit (Millions of yen) FY23 Q2 FY24 Q2 Services Type of transaction Change Change (%) (Six-month total) (Six-month total) License 97 75 △22 △23.1 Authentication and security Professional services
Slide 24: Composition ratio of major products to recurring service sales
Authentication ▌ Composition ratio of major products to recurring service sales of Authentication and Security service Security Device ID, iTrust has grown steadily, following server certificates. 100% 0.4% 1.1% 2.6% 4.4% 6.1% 7.4% 9.6% 12.3% 90% 15.5% 17.3% 18.8% iTrust 22.6% Continue high growth a
Slide 25: Cost structure
▌ cost-structure Implementation of human and capital investment necessary for the continuous growth of recurring services Changes in Expenses (Consolidated) Capital investment policy The sales (Millions of yen) 3,331 Aggressively invested in provisions and in-house developed software for The sales t
Slide 26: Consolidated PL (Detailed Sales by Service)
▌ Consolidated PL (Detailed Sales by Service) (Millions of yen) Consolidated FY22 FY23 Change The sales 6,167 6,466 +298 Authentication and security services 3,543 3,943 +399 License 155 158 +3 Professional services 448 598 +149 Recurring service 2,939 3,186 +247 Platform Services 2,624 2,523 △101 L
Slide 27: Consolidated BS
▌ consolidated BS (Millions of yen) End of March 2023 End of March 2024 Change Rate of change Current assets 5,401 6,181 +779 +14.4% (Cash and deposits) 4,366 4,891 +525 +12.0% (Notes, accounts receivable and contract assets) 878 1,068 +190 +21.7% Fixed assets 2,465 2,235 △229 (9.3)% (Software) 980
Slide 28: Major Consolidated Management Indicators
▌ Major Consolidated Management Indicators The sales 1Net assets per share (yen)BPS) Return on equity (ROE) (Millions of yen) 6,466 (Unit: yen) 743.93 (%) 6,167 699.26 13.8 5,731 610.12 12.2 8.9 1 FY21 FY22 2 FY23 3 FY21 1 FY22 2 FY23 3 FY21 1 FY22 2 FY23 3 Operating income and operating income marg
Slide 30: Corporate Philosophy and Mission
▌ Corporate Philosophy and Mission Security and Trust We will realize a Safe and Secure Digital Society As a socially responsible company, We recognize that “responding to the Sustainable Development Goals (SDGs)” is a key management issue. Through our business and corporate activities, we work to r
Slide 31: About Us
▌ About Us Company Name Cybertrust Japan Co., Ltd ◼ Authentication and Security Services Business Activities ◼ Platform Services Sever solution, IoT embedded solution Date of Establishment June 1, 2000 〒106-0032 Address Ark Hills Sengishiyama Mori Tower 35F, 1-9-10 Roppongi, Minato-ku, Tokyo <Consol
Slide 32: History
▌ History On October 1, 2017, we (former MIRACLE LINUX Corporation) as the surviving company completed an absorption-type merger with former Cybertrust Japan co., Ltd. and name change of and commenced operations as Cybertrust Japan co., Ltd. Year and month Summary MIRACLE LINUX CORPORATION is establ
Slide 33: History and Targets
▌ History and Targets The history of the former Cybertrust Japan co., Ltd. since its establishment until its mergered is as follows Year and month Summary Sep. 1995 NSJ Corporation established to develop software May, 1999 Contracted as the sole Japanese distributor of Baltimore Technologies Plc ("B
Slide 34: SDGs Initiatives
SDGs Initiatives Contributing to the Realization of a Sustainable Society Along with Business Growth Social Issues Addressed through Business Activities Social Issues Addressed through Corporate Activities By promoting trust services to support DX Achieving corporate growth by creating resilient org
Slide 35: Policies and Indicators and Targets
Policies and indicatorsators and Targets We have established KPI (evaluation indicators) for the following two of the four materiality items in the strategic plan. Materiality KPI (Valuation Indicators) Percentage of female employees in managerial positions: Achieved at least 8.2% (at least average
Slide 37: Issues Solved by Cybertrust and Value Provided
▌ Issues Solved by Cybertrust and Value Provided Providing essential trust services in the era of digital transformation (DX) people, experiences and things Issues for digitalization Identity theft ⚫ Longest operation track (people, infrastructure connecting New safe and secure civil record of any c
Slide 38: Business Overview
▌Business Overview Providing Trust Services to Realize a Safe and Secure Digital Society Authentication and security Platform Expertise in electronic authentication Expertise in Linux/OSS Longest domestic electronic certification International Standards OS authority investment performance to Support
Slide 39: Overview of Authentication and Security Services
▌ Overview of Authentication and Security Services Providing trust services for areas such as digital certificate, digital Identity verification and digital signature - the ‘ID cards’ of the digital economy An operation track record as Japan’s first commercial certification authority and one conform
Slide 40: Overview of Platform Services
▌ Overview of Platform Services By a group of engineers working in the global OSS community Only domestic Linux/OSS distributor Application Combines functions required for Linux kernels Provided and supported as a Linux distribution Middleware Large number of adoptions in critical systems System man
Slide 41: Glossary ①
▌ Glossary ① Term Description Digitized identity certificates that properly certify and identify targets. These certificates verify the authenticity digital certificate of people, goods, etc. by examining and issuing them by a certification authority as a reliable third-party organization. Preventin
Slide 42: Glossary ②
▌ Glossary ② Term Description A digital certificate that installs a certificate on the user’s device (such as a PC or smartphone) to authenticate Client certificate the user as the authorized user. There are two main types: User certificates and device certificates. Issued to information devices suc
Slide 43: Glossary ③
▌ Glossary ③ Term Description Abbreviation for Red Hat Enterprise Linux. A Linux distribution developed and sold by Red Hat for RHEL business use. CentOS Community-based free LinuxOS that is highly compatible with RHEL A nonprofit organization of users, developers and fans created mainly to develop,
Slide 44: Glossary ④: Security-Standard FIPS 140-3
▌ Glossary ④: Security-Standard "FIPS 140-3" Summary Standard for cryptographic modules established by the National Institute of Standards and Technology (NIST:National What is FIPS 140-3? Institute of Standards and Technology) that was certified in March 2019. Functions as a standard for realizing
Slide 45: Product name comparison table
▌ Product name comparison table Function Official product name Abbreviations in this document 【Authentication and Security] SSL/TLS server certificate SureServer SureServer device authentication Cybertrust Device ID Device ID Certification bureau outsourcing services Cybertrust Managed PKI Managed P
Slide 46: Product and Service Introduction Pages
▌ Product and Service Introduction Pages Product and service introduction page URL CyberTrust Japan Co., Ltd. Web website https://www.cybertrust.co.jp/(Link) [Authentication and Security] SureServer service https://www.cybertrust.co.jp/sureserver/(Link) Cybertrust Device ID Service https://www.cyber
Slide 47: Press Release List (FY24 Q2~)
▌ Press Release List (FY24 Q2~) ,グサライフト Webィカルユーザーインターフェイス ,グサライフト Webィカルユーザーインターフェイステキスト ,座屋る人女内が含まれている画像性自動的に生成された説明自動的に生成された説明低い精度で自動的に生成された説明自動的に生成された説明 09.12 09.18 10.09 10.17 Terminal Authentication Service Fsas Technologies and Cybertrust Begin Cybertrust and Rikei collabo
Slide 48: Disclaimer
▌ Disclaimer ◼ The materials and information provided in this presentation contain ‘forward-looking statements’. ◼ They are based on current expectations, forecasts and risk-bearing assumptions, and involve uncertainties that could lead to results that differ materially from these statements. ◼ Thes

Cybertrust Japan — Q2 FY2024 Earnings Presentation on 6ix

Cybertrust Japan Co.ltd — Q2 FY2024 Earnings Presentation

Slide 1: FY2024 Q2 Financial Results

Slide 2: Executive Summary

Slide 3: Agenda

Slide 4: FY2024 Q2 Financial Summary

Slide 5: FY2024 Q2 Consolidated Results (six-month total)

Slide 6: Trend in Quarterly Sales by Transaction Type

Slide 7: Services Realignment

Slide 8: Realignment of Services Offerings

Slide 9: Sales by Service Segment (six-month total)

Slide 10: Overview by Service Segment

Slide 11: Authentication and Security Services | Performance and Initiatives

Slide 12: Quarterly Trend in KPI of High-Growth-Driver Service iTrust

Slide 13: Initiatives to Expand Scope of Use of iTrust

Slide 14: Platform Services

Slide 15: Platform Services | Performance and Initiatives

Slide 16: Initiatives to Expand Applications of AlmaLinux

Slide 17: Initiatives to Expand Scope of Use of EMLinux

Slide 18: FY2024 Full-Year Forecast

Slide 19: FY2024 Full-Year Forecast

Slide 20: FY2024 Dividend Forecast

Slide 21: Appendix

Slide 22: Numeric data

Slide 23: Sales by type of transaction before Services Realignment

Slide 24: Composition ratio of major products to recurring service sales

Slide 25: Cost structure

Slide 26: Consolidated PL (Detailed Sales by Service)

Slide 27: Consolidated BS

Slide 28: Major Consolidated Management Indicators

Slide 29: Corporate Profile

Slide 30: Corporate Philosophy and Mission

Slide 31: About Us

Slide 32: History

Slide 33: History and Targets

Slide 34: SDGs Initiatives

Slide 35: Policies and Indicators and Targets

Slide 36: Business Overview

Slide 37: Issues Solved by Cybertrust and Value Provided

Slide 38: Business Overview

Slide 39: Overview of Authentication and Security Services

Slide 40: Overview of Platform Services

Slide 41: Glossary ①

Slide 42: Glossary ②

Slide 43: Glossary ③

Slide 44: Glossary ④: Security-Standard FIPS 140-3

Slide 45: Product name comparison table

Slide 46: Product and Service Introduction Pages

Slide 47: Press Release List (FY24 Q2~)

Slide 48: Disclaimer

Slide 49: Security and Trust