Japan Business Systems, Inc. · TSE:5036
Japan Business Systems — FY2022 Earnings Presentation
51 slides from Japan Business Systems's earnings presentation, Nov 11, 2022
Slide 1: FY 2022/9 Financial Results
FY 2022/9 Financial Results / November/11, 2022
Slide 2: Contents
Contents 【この注意書きはスライドからは削除してください】 最終行で「右クリック」＞「挿入」＞「下に行を挿入」で行を追加できます。 ※表組の為、Enterキーでは挿入できません。 ￭ Company Introduction 3 ￭ FY2022/9 Results 9 ￭ FY2022/9 Topics 18 ￭ Medium-term Management Plan (FY2023/9-FY2025/9) 21 ￭ FY2023/9 Business Plan 37 ￭ Return to shareholders 40 ￭ Appendix 45 2
Slide 3: 1. Company Introduction
1. Company Introduction Japan Business Systems, Inc.
Slide 4: Company overview
Company overview Company name Japan Business Systems, Inc. Business offices 6 offices (As of eh end of Sep., 2022) Headquarters Toranomon, Minato-ku, Tokyo Domestic Tokyo HQ Established October 4, 1990 Hokkaido, Central, Western, Kyushu, Okinawa Capital 539.63 million yen Representative Yukihiro Mak
Slide 5: Mission / Vision / Value
Mission / Vision / Value Mission 企業理念 Bringing the best technology to ever yone, ever ywhere Vision 目指す姿 No.1 Cloud Integra tor leading the world of DX Value 行動指針 Customer First 「お客さまの期待を超える」 Diversity ＆ Inclusion 「一人ひとりの個性を大切に」 Integrity 「誠実かつ、ひたむきに」 Passion for Technology 「情熱を持ってテクノロジーを追求」 Commitm
Slide 6: JBS history
JBS history Founded in 1990 specialized in the enterprise market in the 2000s growing as a cloud integrator since 2010 2007年 6 * The graph shows trends of net sales
Slide 7: JBS history
JBS history August 2, 2022: Listed on the Standard Market of the Tokyo Stock Exchange 7
Slide 8: Business segments
Business segments 3 business segments Recurring revenue ratio 62％ 3 License & Products business 21% 1Cloud integration business Resale of licenses and Support for introduction, related equipment development, etc., of cloud Composition products with a focus on the ratio of sales three Microsoft cloud
Slide 9: 2. FY2022/9 Results
2. FY2022/9 Results
Slide 10: Company performance
Company performance Driven by growing DX demand, net sales achieved 86.3 billion yen (up 15% YoY) Thanks to the measurements of improvement of operating ratio and expansion of business partner usage etc., operating income achieved 4.05 billion yen (up 78% YoY) billion yen billion yen 90.0 86.3 4.5 4
Slide 11: Cloud Integration Business
Cloud Integration Business Expansion of Microsoft 365 and Azure projects Improvement of segment profit by usage of business partner 18.3 108.2% 2.80 134.2% bil. yen （YoY） bil. yen 28.0億円 （YoY） 2.09 17.0 bil. yen 20.9億円 1.69 bil. yen 170億円 bil. yen 16.9億円 16.0 15.3% bil. yen 160億円 12.3% 10.5% 20/9 21
Slide 12: Cloud Service Business
Cloud Service Business Strong trend by expansion of customer’s cloud shift and orders for large outsourcing projects (Segment mergin decreased slightly due to the impact of advance investment in outsourcing) 13.4 124.4% 1.78 119.8% 134億円 bil. yen （YoY） bil. yen （YoY） 1.49 14.9億円 bil. yen 10.6 10.7 b
Slide 13: License & Products Business
License & Products Business Steady performance due to improved profitability from strengthening the sales operation center and expanding the Microsoft market share 1.84 197.2% 115.6% bil. yen 18.4億円 （YoY） 54.6 （YoY） 47.2 546億円 bil. yen 1.30 bil. yen 472億円 bil. yen 13.0億円 41.6 bil. 416億円yen 0.93 bil.
Slide 14: Major KPI (Trend of ID numbers)
Major KPI（Trend of ID numbers） Number of Microsoft 365 IDs has a high CAGR of 54% through aggressive sales expansion measures On truck to cultivate business in the areas of IT infrastructure and application development for ARPU growth Number of Microsoft 365 ID Number of Dynamics 365 ID CAGR (17/9-2
Slide 15: Major KPI (Increase of Azure consumption)
Major KPI（Increase of Azure consumption） Azure consumption*¹ CAGR60% increase 6.0 bil. yen 60.0億円 50.0億円 5.0 bil. yen CAGR (17/9-22/9) 60％ 4.0 bil. yen 40.0億円 3.0 bil. yen 30.0億円 2.0 20.0億円 bil. yen 1.0 10.0億円 bil. yen 0.0 bil. yen 0.0億円 17/9 18/9 19/9 20/9 21/9 22/9 15 *1 The amount is based on the
Slide 16: Major KPI (Progress of ARPU)
Major KPI（Progress of ARPU） Cloud shifting demand of communication platform, infrastructure and business areas increase Up Sell Cross Sell ARPU DX promotion by usage of JBS Cloud Suite In-house support (Skill fostering) Apps development Sales growth of Dynamics / Power Platform & SAP (CRM/ERP etc.)
Slide 17: Major KPI (Business partner ratio)
Major KPI（Business partner ratio） Realize sales expansion by improving capabilities and cost reduction due to expanding the core partner system 社員・契約社員 Number of Employee BP人数 Number of BP BP比率 BP ratio 32% 3,000人 35% 2,500人 30% 25% 2,000人 25% 23% 20% 1,500人 15% 1,000人 10% 500人 5% 0人 0% 20/9 21/9 22
Slide 18: 3. FY2022/9 Topics
3. FY2022/9 Topics
Slide 19: Gain a competitive edge by obtaining an Azure Expert MSP
Gain a competitive edge by obtaining an Azure Expert MSP Azure Expert MSP ,the highest certification of Microsoft (JBS is the only company in Japan got certification with CAF/WAF base AEMSP. ) Won “Microsoft Partner of the Year” for the 10th consecutively Number of Microsoft Certification certified
Slide 20: Release of JBS Cloud Suite
Release of JBS Cloud Suite Released JBS Cloud Suite as a unique solution brand Standardization of best practices for Cloud utilization Main Brand (JCS) An integrated solution to promote cloud DX using CAF framework Sub Brand 1. (CPS) Sub Brand 2. (SCC) A one-stop solution for supporting strategy for
Slide 21: 4. Medium-term Management Plan (FY2023/9-FY2025/9)
4. Medium-term Management Plan (FY2023/9-FY2025/9)
Slide 22: Medium-term Management Plan (FY2023/9-FY2025/9)
Medium-term Management Plan (FY2023/9-FY2025/9) Driving DX in the enterprise market with cloud ID as the axis FY2025/9 Net sales CAGR Net sales 12％ 120.0 bil. yen Security & hybrid cloud Operating income 8.5 bil. yen FY2022/9 Industry solution Operating margin 7.1％ Net sales 86.3 bil. yen Accelerati
Slide 23: Market background: Forecast of domestic cloud market
Market background：Forecast of domestic cloud market FY2022: 4.6 trillion yen ⇒ FY2026: 7.5 trillion yen Trend of domestic cloud market*1 Billion yen CAGR 8000.0 80,000 (2022－2026) 7484.9 74,849 70,000 7000.0 12.7％ 60,000 6000.0 50,000 5000.0 4636.8 46,368 40,000 4000.0 30,000 3000.0 20,000 2000.0 10
Slide 24: Market background: High growth potential of Microsoft Cloud
Market background：High growth potential of Microsoft Cloud Microsoft Cloud: Expansion of domestic market share Largest global market share of total of SaaS & IaaS Year 2020-2021 Year 2021 Cloud service vendor Cloud service bender Global market share*2 Domestic sale trend *1 Domestic sales share *1 （
Slide 25: KPI target: Cloud ID & ARPU
KPI target: Cloud ID & ARPU Cloud ID increase ＜ ARPU increase Number of cloud IDs in enterprise companies エンタープライズ企業におけるクラウドID数 Scope of cloud coverage at enterprise （Microsoft 365） (Microsoft 365) companies (ARPU) CAGR CAGR (2022－2025) (2022－2025) 5.0％ 6.3％ 1,990K 60,313 57,524 1,895K 54,882 1,805K
Slide 26: Cloud ID: Key to connecting cloud and on-premise
Cloud ID: Key to connecting cloud and on-premise of infrastructure and application environments ID obtain ⇒ Increase opportunities for proposal of Infra/App/Data Cloud Infra Endpoint (End user) Data Cloud ID App On-premise 26
Slide 27: ARPU: Accelerating the Cloud Solution/Service
ARPU：Accelerating the Cloud Solution/ Service Expanding solution with both Horizontal and Vertical aspects Managed service supports the solution industry Industry common focus a. Horizontal Solutions b. Vertical Solutions Telecom Modern workplace & Security Finance Media Public Hybrid Infra・Data＆AI
Slide 28: Horizontal Solution: Hybrid Infra and Data & AI
a. Horizontal Solution : Hybrid Infra と Data & AI Siloed Data is integrated by Hybrid Cloud⇒ Utilizing Data＆AI Driving data analysis in each business units Data & AI Apps for Data Analysis JBS Biz Partner optimizing the data to Data Siloed utilization Solution Biz Area On premise Cloud Hybrid JBS Op
Slide 29: Vertical Solution: Cloud ID to Industry Operation
b. Vertical Solution : Cloud ID to Industry Operation Cloud ID to Field work / Solution with Digital twin for each industry Office Work Field work Horizontal Vertical Online/virtual Cloud Moern work App VR Digital twin App VR Solution for Cloud ID Each industry Operation App VR Real On premise 29
Slide 30: ARPU: Strengthen with partner
ARPU：Strengthen with partner Complementing upstream consulting and industry knowledge MRI⇒JBS 20％ financing JBS⇒Wands 20％ financing Solution Solution for Mass for public sector media industry Complement the support insourcing architecture knowledge 30
Slide 31: ARPU: Managed Service
ARPU：Managed Service The trend, IT control center is changed from IT division to business/admin division. JBS Cloud Suite supports those changes. JBS Cloud Suite supports to enhance the Business Unit become the IT management Sec governance and optimize the cost for each IT division is accelerating
Slide 32: Human capital management
Human capital management Strengthen the hiring and skill shifting Recreuitment Building a framework for growth Target number of Target number of new graduate Mid-career HR portfolio Enhancing HR for Architecture/AppDev/Security Keep Low-retirement rate（22/9：7.7%） Engagement Increasing productivity p
Slide 33: Business partner
Business partner Alliance/M&A with strategic partner 33
Slide 34: Future business portfolio
Future business portfolio To FY2025 Expanding the sales volume, After FY2026 Increasing the portion of cloud service segment In mid-term Results Plan Accelerating cloud service segment growth CI CI CI 21％ Sales Sales ¥120bil. L&P Sales L&P ¥86.3bil. CS 63％ 16％ L&P CS Bil. CS 2022/9 2025/9 34 After 2
Slide 35: Medium-term Management Plan Target
Medium-term Management Plan Target FY2025/9: Net sales 120.0 bil. Yen Operating income 8.5 bil. yen FY2023/9 FY2024/9 FY2025/9 Segment profit/ Segment profit/ Segment profit/ Business Segment Net sales Net sales Net sales Operating income Operating income Operating income Cloud Integration 21.0 3.7
Slide 36: Medium-term Management Plan Target by business segment
中期経営計画 目標値（事業セグメント別） 1Cloud Integration Business 2 Cloud Service Business 3 License & Products Business CAGR CAGR bil. yen bil. yen bil. yen 9％ 11％ 25.0 24.0 240億円 80.0 74.0 25.0 CAGR 250億円 35% 250億円 35% 800億円 740億円 10% 22.0 220億円 22.0 220億円 70.0 700億円 21.0 210億円 18％ 30% 30% 67.2 627億円 200億円 18.3 20
Slide 37: 5. FY2023/9 Business Plan
5. FY2023/9 Business Plan
Slide 38: FY2023/9 Business Plan
FY2023/9 Business Plan Continues growth on par with the previous fiscal year Sales growth 115% Operating income growth 119% FY2023/9 Net sales 99.1 bil. yen FY2022/9 Operating income Net sales 86.3 bil. yen 4.85 bil. yen FY2021/9 Operating income Net sales 75.0 bil. yen 4.05 bil. yen FY2020/9 Operat
Slide 39: FY2023/9 business plan by segments & priority measures
FY2023/9 business plan by segments & priority measures Deep cultivation of customers ＆ Business structure transformation Target Priority measures Segment Net sales Segment profit * Introduction to existing enterprise customers 21.0bil. yen 3.7 bil. yen JBS Cloud Suite Cloud * Additional function dev
Slide 40: 6. Return to shareholders
6. Return to shareholders Japan Business Systems, Inc.
Slide 41: Dividend amount and dividend plan for FY2023/9
Dividend amount and dividend plan for FY2023/9 FY2022/9 ¥40.00(scheduled) (Year-end: ¥35.00 + Commemorative: ¥5.00) FY2023/9 ¥40.00(scheduled) (2Q-end: ¥20.00 + Year-end: ¥20.00) 50円 ¥50.00 40円 ¥40.00 ¥5.00 Commemorative ¥30.00 30円 Start from ¥20.00 FY2023/9 2Q-end 20円 ¥20.00 ¥35.00 *1 Year-end 10円
Slide 42: Dividend payout ratio and ROE
Dividend payout ratio and ROE Dividend payout ratio : 30.3% Dividend 配当性向 payout ROE ratio 35% 30.3% 30% 25% 20% 16.0% 15% 10% 5% 20/9 21/9 22/9 42
Slide 43: Notes concerning forward-looking statements
Notes concerning forward-looking statements This material contains forward-looking statements. These forward-looking statements, including forecasts, are based on the Company’s assumptions in light of information available at this moment. This presentation contains forward-looking statements. These
Slide 44: JBS
JBS BNEFI/ODT—&, MLBOT<
Slide 45: Appendix
Appendix Japan Business Systems, Inc.
Slide 46: Business overview
Business overview Net sales Operating income Net income CAGR +12% CAGR CAGR 900 86.3 bil. yen 863億円 +64% +78% 4.7% 5.0% 4.0% 800 75.0 bil. yen 750億円 50.0 50 3.5% 68.2 682億円 bil. yen 3.1% 700 4.1 bil. yen 41億円 4.0% 3.0% 40.0 40 600 3.0% 2.5% 3.0% 2.1% 500 30.0 30 2.65 bil. yen 26.5億円 2.2% 2.0% 400 2.
Slide 47: Balance sheet
Balance sheet Current 流動負債 12.3 123億円 bil. yen 13.4 134億円 bil. yen liabilities 10.9 109億円 bil. yen Current 21.8 218億円 bil. yen 流動資産 17.3 173億円 16.4 164億円 assets bil. yen bil. yen Fixed 固定負債 6.0 60億円 5.2 52億円 57億円 5.7 liabilities bil. yen bil. yen bil. yen 20/9 21/9 22/9 20/9 21/9 22/9 Fixed 固定資産 12.
Slide 48: Statement of cash flows
Statement of cash flows 3.5 bil. yen 4.0 bil. yen 7.6 bil. yen 76億円 ＋88％ 4.0 bil. yen (4.0 bil. Yen) Cash at CF from CF from CF from beginning operating investing Cash at financing of year activities activities end of year activities 48
Slide 49: Quarterly trend in revenue of Microsoft licenses
Quarterly trend in revenue of Microsoft lisenses 14.3 bil. yen 143億円 11.7 117億円 bil. yen 12.0 120億円 bil. yen 10.8 108億円 bil. yen 10.4 104億円 bil. yen 7.6 76億円 bil. yen 5.3 53億円 bil. yen 3.4 34億円 bil. yen 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2021/9 2021年9月期 FY2022/9 2022年9月期 49
Slide 50: Cloud Premium Services (CPS)
Cloud Premium Services（CPS） Governance Strategy and planning Preparation and introduction management CAF strategic consulting Governance MVP constitution Cloud management solution Strategic cloud integration solution Virtual desktop server/ database transformation Container migration Cloud security
Slide 51: Smart Cloud Controller (SCC)
Smart Cloud Controller（SCC） License Purchase Microsoft Azure / Microsoft 365 (Microsoft Azure / Microsoft 365) License control ● License purchase inquiry ● Additional purchasing order ● License purchase ● cancelling order ● Other free option service ● invoicing Operating monitoring function SCC JBS
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