Slide 1: Financial Results Briefing for FY2019
August 9, 2019 Fibergate Inc. Financial Results Briefing for FY2019 Listing exchange: First Section of the Tokyo Stock Exchange, Sapporo Securities Exchange Securities code : 9450 ©Fibergate Inc. all rights reserved.
Slide 2: Table of Contents
2 Table of Contents Briefing Points Operating Results for the Fiscal Year Ended June 2019 Earnings Forecast for the Fiscal Year Ending June 2020 New Medium-Term Assumptions and Long-Term Strategy Topics Appendix ©Fibergate Inc. all rights reserved.
Slide 3: Briefing Points
3 Briefing Points 1 Operating Results for the Fiscal Year Ended June 2019: Continuous Year-on-Year Growth in Sales and Profits ü Net sales doubled and ordinary profit grew by 2.7 times in the past two years 2 Outlook for the Fiscal Year Ending June 2020: Approaching the Targets of the Medium-Term As
Slide 4: Operating Results for the Fiscal Year Ended June 2019
Operating Results for the Fiscal Year Ended June 2019 ©Fibergate Inc. all rights reserved.
Slide 5: Overview of Consolidated Financial Results
5 Overview of Consolidated Financial Results l Maintained the high growth rate. Achieved a year-on-year increase of 37% in sales and 75% in ordinary profit. l By business segment, sales grew by 42% for the Residential Wi-Fi Business and 23% for the Free Wi-Fi Business, both on a year-on-year basis.
Slide 6: Change in Operating Results
6 Change in Operating Results l Net sales surpassed 5 billion yen, continuing to set record figures. Accelerated growth rate continues. l A new record was also set for ordinary profit, as it reached approximately 900 million yen. Ordinary profit ratio rose to the 16% level. Net Sales Ordinary Profit
Slide 7: Quarterly Change in Consolidated Financial Results
7 Quarterly Change in Consolidated Financial Results l In Q4 of the fiscal year ended June 2019, net sales and ordinary profit increased by 320 million yen and 20 million yen, respectively, year on year. In particular, the Residential Wi-Fi Business drove the overall results. l Although sales and pr
Slide 8: Change in Revenue by Business Type
8 Change in Revenue by Business Type l Subscription revenue has increased for 6 consecutive quarters, and expanded by 1.4 times on a year-on-year basis. l Meanwhile, one-time sale revenue has admittedly been subject to seasonal changes, though it is on an upward trend. Stock-type revenue 1.6 Flow-ty
Slide 9: Change in Key Indicators
9 Change in Key Indicators l The cumulative number of contracted units for residential Wi-Fi services is maintaining a pace of expansion. l The number of access points for free Wi-Fi services is expanding due to marketing endeavors on top of strong social needs. Change in the Number of Contracted Un
Slide 10: Overview of Consolidated Operating Results (Balance Sheet)
10 Overview of Consolidated Operating Results (Balance Sheet) l A continued year-on-year increase in sales has further reinforced shareholders' equity, with the equity-to-asset ratio rising to 37.3%. l Up-front investments associated with orders received for residential Wi-Fi services have continued
Slide 11: Reinforcement of Financial Standing
11 Reinforcement of Financial Standing l Despite a business model posing a heavy burden of up-front investments, free cash flow (FCF) is finally anticipated to turn into the black. l The equity-to-asset ratio has improved due to enhanced earnings capacity and progress in suppressing cash-outs. Chang
Slide 12: Earnings Forecast for the Fiscal Year Ending June 2020
Earnings Forecast for the Fiscal Year Ending June 2020 ©Fibergate Inc. all rights reserved.
Slide 13: Consolidated Earnings Forecast for the Fiscal Year Ending June 2020
13 Consolidated Earnings Forecast for the Fiscal Year Ending June 2020 l Both net sales and ordinary profit are expected to approach the targets for the fiscal year ending June 2021 (7 billion yen and 1.3 billion yen, respectively). l The two businesses are assumed to grow respectively, on the assum
Slide 14: Factor Analysis for Year-on-Year Increase/Decrease in Ordinary Profit Outlook
14 Factor Analysis for Year-on-Year Increase/Decrease in Ordinary Profit Outlook l There is no change in the scheme in which increased revenue should drive profit expansion. l On the other hand, fixed costs are assumed to increase due to progress in reinforcing and improving governance. Factor analy
Slide 15: Change in Revenue by Business Type
15 Change in Revenue by Business Type l Subscription revenue is assumed to continue growing steadily in the fiscal year ending June 2020. The growth rate is anticipated to accelerate. l One-time sale revenue also keeps the high growth rate, backed by strong demand. Stock-type revenue Flow-type reven
Slide 16: New Medium-Term Assumptions and Long-Term Strategy
New Medium-Term Assumptions and Long-Term Strategy ©Fibergate Inc. all rights reserved.
Slide 17: Medium-Term Assumptions for the Fiscal Year Ending June 2022
17 Medium-Term Assumptions for the Fiscal Year Ending June 2022 l The current medium-term assumptions have been rolled ahead in the light of the ongoing performance pace, setting new targets of the assumptions for the fiscal year ending June 2022 at 9.6 billion yen in net sales and 1.7 billion yen i
Slide 18: Performance Trend
18 Performance Trend l Aim to increase the ordinary profit ratio toward the fiscal year ending June 2022 in an effort to make the Company highly profitable. l Secure orders for the one-time sale business, which leads to expansion of the subscription business that is the key to greater performance, a
Slide 19: Major Conditions for Medium-Term Assumptions
19 Major Conditions for Medium-Term Assumptions l The cumulative number of contracted units for residential Wi-Fi services continues to expand steadily at a pace somewhat higher than is assumed. l The number of access points for the free Wi-Fi services has already exceeded the initial estimate due t
Slide 20: Long-Term Strategy: Aim to Become an Alternative Carrier
20 Long-Term Strategy: Aim to Become an Alternative Carrier l Aim to become an integrated, end-to-end alternative carrier that commands presence in all areas from short-range to super-long-range communications services. l As the first step, participate in the home IoT (short-range) area, planning to
Slide 21: Topics
Topics ©Fibergate Inc. all rights reserved.
Slide 22: Listed on the Sapporo Securities Exchange
22 Listed on the Sapporo Securities Exchange l Listed on the First Section of the Tokyo Stock Exchange in June 2019. Also listed on the Sapporo Securities Exchange, with wishes for regional development as the Company is headquartered in Sapporo. March 23, 2019 June 14, 2019 July 24, 2019 Mothers mar
Slide 23: New Service: Customizing the Free Wi-Fi Authentication Screen
23 New Service: Customizing the Free Wi-Fi Authentication Screen l Launched “Custom UI Manager,” a CMS (content management system) tool enabling customization of the authentication screen for the Company’s free Wi-Fi services (July 2019). l The first customer was the Otaru Sakaimachi-Dori Shopping S
Slide 24: Information on Investor Briefing in October 2019
24 Information on Investor Briefing in October 2019 l The Company will hold an investor briefing regarding its long-term strategy on technology. l Those who wish to join the briefing are requested to contact the IR staff of the Business Management Division (please refer to page 32). l Please note th
Slide 25: Appendix
Appendix ©Fibergate Inc. all rights reserved.
Slide 26: Company Profile
26 Company Profile An independent (not belonging to any telecommunication carriers) Wi-Fi solution company* that conducts end-to-end operations from development and production of networking devices to telecommunications services. * Independent public wireless LAN operators In the public wireless LAN
Slide 27: Overview of Main Businesses
27 Overview of Main Businesses l The Company conducts two main businesses, of which the Residential Wi-Fi Business is the mainstay business accounting for 74.8% of all sales (for the fiscal year ended June 2019). l Focus is placed on "provision of private brand services to customers” (the Company ma
Slide 28: Business Flow
28 Business Flow l Monetary compensation is received from the parties with which service agreements have been concluded. Users of internet connection bears no monetary burden. l The mainstay operation is “provision of private brand services to customers” Service agreement companies, etc. management
Slide 29: Business Model
29 Business Model l Built on the two pillars of one-time sale business and subscription business aimed at the niche market. l Differentiated from others by the three aspects of “product development capabilities," "price competitiveness" and "authentication technology." Target Niche market: owners of
Slide 30: Company History
30 Company History Year Content Ø Established in Wakabayashi Ward, Sendai City, to arrange subscriptions to domestic and international 2000 telephone services. Ø Relocated the head office to Chuo Ward, Sapporo City 2003 Ø Conducted network building for companies based on multiple locations and onlin
Slide 31: Financial Highlights
31 Financial Highlights Fiscal year Dec. 2015 June 2016 June 2017 June 2018 June 2019 (*non-consolidated, **6-month operating results) (FY 2015)* (FY 2016)** (FY 2017) (FY 2018) (FY 2019) Net sales (thousand yen) 1,464,802 1,023,483 2,787,387 3,977,485 5,446,396 Ordinary profit (thousand yen) 63,061
Slide 32: Thank you for your attention.
32 Thank you for your attention. <Notes on Outlook> The contents of this document are based on certain assumptions, and should not be construed as a promise or guarantee of achieving the planned figures and measures for the future. Contact IR staff, Business Management Division fgir@fibergate.co.jp