Fibergate, Inc. · TSE:9450
Fibergate — FY2021 Earnings Presentation
34 slides from Fibergate's earnings presentation, Aug 13, 2021
Slide 1: Financial Results Briefing for FY2021
August 13, 2021 Fibergate Inc. Financial Results Briefing for FY2021 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 Financial Results for the Fiscal Year Ended June 2021 Forecast for the Fiscal Year Ending June 2022 Topics Appendix ©Fibergate Inc. all rights reserved.
Slide 3: Briefing Points
3 Briefing Points Operating Results for the Fiscal Year Ended June 2021: 1 Year-on-year increase in sales by 14% and ordinary profit gain by 27% ✓ The Home Use Business performed well in line with an increase in the number of residential units contracted. Meanwhile, sales and profits in the Business
Slide 4: Operating Results for the Fiscal Year Ended June 2021
Operating Results for the Fiscal Year Ended June 2021 ©Fibergate Inc. All rights reserved.
Slide 5: Overview of Consolidated Financial Results
5 Overview of Consolidated Financial Results ⚫ Sales increased by 14% from the previous year and ordinary gain increased by 27%. The Home Use Business contributed to the increase in the number of residential units contracted. Meanwhile, sales and profits in the Business Use Business declined for the
Slide 6: Analysis of Factors Behind Changes in Ordinary Income
6 Analysis of Factors Behind Changes in Ordinary Income ⚫ Higher sales related to home use and lower variable costs such as sales commissions drove recurring profit growth. Profit increased by 320 million yen, absorbing the negative factors such as the change in composition due to the decrease in th
Slide 7: Quarterly Change in Consolidated Financial Results
7 Quarterly Change in Consolidated Financial Results ⚫ Sales and profit increased significantly year on year in Q4, driven by the growth of the Residential Wi-Fi Business. ⚫ On the other hand, compared with Q3, sales and profit for Q4 decreased due to seasonal factors. Still, the Free Wi-Fi Business
Slide 8: Trends in Revenue by Business Type
8 Trends in Revenue by Business Type ⚫ Subscription revenue has increased for 13 consecutive quarters since listing. Achieved 2.5 times Q4 based on FY2018/6 Q3 standards ⚫ It grows at 45% per year from Q3 in June 2018. Steady growth in the number of residential units contracted, no change in growth
Slide 9: Trends in Key Indicators
9 Trends in Key Indicators ⚫ The cumulative number of contracted units for Residential Wi-Fi services was 370,000 at the end of Q4. The penetration of remote work following the Corona crisis accelerated the accumulation of the number of contracted units. The increasing pitch is not blunted even one
Slide 10: Consolidated Financial Results (B/S)
10 Consolidated Financial Results (B/S) ⚫ The equity ratio was 39.1%. Compared to the previous fiscal year, it rose only 0.3pp, and the trend toward strengthening the financial position has come to a pause. Having almost achieved our de-emergence, we intend to maintain this level of financial levera
Slide 11: Cash Flows
11 Cash Flows ⚫ FCF in FY6/2021 was ¥550 million in red. Losses widened by ¥210 million year-on-year due to the impact of increased acquisition of fixed assets, increases in receivables and payables, and inventories. There is no problem with financing, but cash outflows to new customers have an impa
Slide 12: Dividends
12 Dividends ⚫ The FY6/2021 net sales exceeded the initial forecast by ¥80 million. Based on this, we plan to increase the dividend by ¥0.5 per share to ¥4.0 per share. ⚫ Although there is no change in the basic dividend policy, the amount of dividends will be revised if a comprehensive judgment is
Slide 13: Earnings Forecast for the Fiscal Year Ending June 2022
Earnings Forecast for the Fiscal Year Ending June 2021 ©Fibergate Inc. All rights reserved.
Slide 14: Consolidated Earnings Forecast (1) Summary
14 Consolidated Earnings Forecast for the Fiscal Year Ending June 2021 (1) Summary ⚫ In FYE June 2022, we expect a 27% increase in sales and a 12% increase in ordinary gain. By segment, sales and profits continued to increase in the Home Use Business due to strong demand. The Business Use Business i
Slide 15: Earnings Forecast (3) Factor Analysis for Year-on-Year Change
15 Consolidated Earnings Forecast for the Fiscal Year Ending June 2022 (3) Factor Analysis for Year-on-Year Increase/Decrease ⚫ The increase in recurring profit of ¥190 million year-on-year is driven by the effects of increased sales accompanying the expansion of sales. By accelerating the pace of s
Slide 16: Earnings Forecast (2) Analysis of Key Preconditions
16 Consolidated Earnings Forecast for the Fiscal Year Ending June 2021 (2) Analysis of Key Preconditions ⚫ The assumption for the cumulative Wi-Fi of residential units contracted is set at 477000 units, which is an increase of more than 0.1 million units YoY. Expansion of home use demand is not a te
Slide 17: Consolidated Earnings Forecast (4)
17 Consolidated Earnings Forecast for the Fiscal Year Ending June 2022 (4) ⚫ On a quarterly basis, unlike in normal years, recurring profit in FY6/2022 is expected to be weighted toward 2H. Assume a situation in which the effects of customer stock accumulation are easily reflected due to factors suc
Slide 18: Performance Trend
18 Performance Trend ⚫ Apart from the unforeseen obstacles caused by the COVID-19 pandemic, we are accelerating our efforts to reform our company. In the fiscal year ending June 2021, when these efforts will be put to the test, we will focus our efforts on achieving the interim targets set in the Me
Slide 19: Performance Trends
19 Performance Trends ⚫ Rolling medium-term targets. Targeting sales of approximately 13.8 billion yen and recurring profit of approximately 2.2 billion yen in FY2024. ⚫ Previous medium-term targets remained unchanged for FY2023. Despite the impact of the adoption of IFRS and higher costs under “Wit
Slide 20: Topics
Topics ©Fibergate Inc. All rights reserved.
Slide 21: Topics
21 Topics 1 Development of Wi-Fi for healthcare facilities 2 Expansion of satellite-communications Wi-Fi 3 Progress in SDGs Response ©Fibergate Inc. all rights reserved.
Slide 22: Development of Wi-Fi for healthcare facilities
22 Development of Wi-Fi for healthcare facilities Radio status of medical facilities Currently, most hospitals (including waiting rooms, etc.) do not have an internet communications environment. On the other hand, there is a strong demand for Internet communications connections for patients with min
Slide 23: Promote sales of satellite-communications Wi-Fi
23 Promote sales of satellite-communications Wi-Fi From autumn 2021 Planning to launch a service that directly connects to communication satellites through the provision of Antenna + Routers Our Aim ① Started expansion into the super long-distance field to realize “Alternative Carrier” concept ② Res
Slide 24: Diagram of Our concept: Alternative Carrier
24 Diagram of Our concept: “Alternative Carrier” Communication distance Major carrier means Major players category (wireless) Large phone companies Very long distance Satellite communication /MVNO Long distance 5G Comprehensive alternative carrier 4G(LTE) (Alternative Carrier concept) Medium distanc
Slide 25: Progress in SDGs Response
25 Progress in SDGs Response Mission 1 Mission 2 Mission 3 Working styles that can be chosen To human resources with diverse Through the renewable energy according to the life stage, perspectives and values business Realizing Diverse Lifestyles Promoting Diversity to Engage in Active To protect and
Slide 26: Appendix
Appendix ©Fibergate Inc. All rights reserved.
Slide 27: Company Profile
27 Company Profile An independent (not belonging to any telecommunication carriers) Wi-Fi solution company* that provides end-to-end services from the development and production of networking devices to telecommunications services * Independent public wireless LAN operators In the public wireless LA
Slide 28: Overview of Main Businesses
28 Overview of Main Businesses ⚫ The Company conducts two main businesses, of which the Residential Wi-Fi Business is the mainstay business accounting for 83.2% of all sales (for the fiscal year ended June 2021). ⚫ Focus is placed on “provision of private brand services to customers” (the Company ma
Slide 29: Business Flow
29 Business Flow ⚫ Monetary compensation is received from the parties with which service agreements have been concluded. Users of internet connection bear no monetary burden ⚫ The mainstay operation is “provision of private brand services to clients.” Service agreement companies, etc. Service manage
Slide 30: Business Model
30 Business Model ⚫ Built on the two pillars of one-time sale business and subscription business aimed at the niche market. ⚫ Differentiated from others by the three aspects of “product development capabilities,” “price competitiveness,” and “authentication technology.” Target Niche market: owners o
Slide 31: Medium-term Vision: Forward to Alternative Carrier
31 Medium-term Vision Forward to "Alternative Carrier" ～Aiming for all communication gateways ~ 4G/LTE/5G Satellite communication World of before Corona Wi-Fi is a "tool for attracting customers”. Global Outlook for Wi-Fi After/With Corona Wi-Fi to the "Infrastructure" of Lifestyle Needs Comfortable
Slide 32: Company History
32 Company History Year Description ➢ Established in Wakabayashi-ku, Sendai-shi, as a subscription agency for domestic and international 2000 telephone services ➢ Head office relocated to Chuo-ku, Sapporo 2003 ➢ Mainly focuses on building networks of multi-base companies and selling broadband lines
Slide 33: Financial Highlights
33 Financial Highlights Fiscal Year (*6-month operating results) June 2017 June 2018 June 2019 June 2020 June 2021 (FY 2017) (FY 2018) (FY 2019) (FY 2020) (FY 2021) Net sales (thousand yen) 2,787,387 3,977,485 5,446,396 7,424,440 8,491,521 Ordinary profit (thousand yen) 334,836 510,171 886,999 1,215
Slide 34: Thank you for your attention.
34 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 ©