Cybertrust Japan Co.ltd. · TSE:4498
Cybertrust Japan Co.ltd — FY2023 Earnings Presentation
55 slides from Cybertrust Japan Co.ltd's earnings presentation, Apr 24, 2024
Slide 1: FY2023 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. FY2023 Financial Results The Fiscal Year Ending March 31, 2024 Cybertrust Japan Co.,
Slide 2: Executive Summary
▌Executive Summary FY2023 Ninth straight year of increase in both net sales and operating income - Net sales grew by 4.8% and operating income rose 5.5% as recurring services accumulated Double-digit growth expected in both net sales and operating FY2024 Forecast income compared to FY2023 - Growth d
Slide 3: Agenda
◼ FY2023 Full-Year Financial Summary Agenda ◼ Overview by Service Segment Authentication and Security Services Linux/OSS Services IoT services ◼ FY2024 Full-Year Forecast ◼ Appendix 3 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 4: FY2023 Full-Year Financial Summary
◼ FY2023 Full-Year Financial Summary ◼ Overview by Service Segment Authentication and Security Services Linux/OSS Services IoT services ◼ FY2024 Full-Year Forecast ◼ Appendix 4 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 5: FY2023 Consolidated Results
▌FY2023 Consolidated Results Increase in both net sales and operating income for the ninth straight year Net sales rose 4.8% YoY to 6,466 million yen Operating income increased 5.5% YoY to 1,112 million yen (Unit: Millions of yen) FY22 FY23 YoY change Net sales 6,167 6,466 +4.8% Operating income 1,0
Slide 6: Trend in Consolidated Performance
▌Trend in Consolidated Performance Improved profitability Maintained high operating margin from accumulated recurring service sales Net sales Unit: Millions of yen Operating income Unit: Millions of yen Operating margin 6,466 6,167 1,112 5,731 1,053 17.1% 17.2% 15.2% 868 6,466 FY21 FY22 FY23 FY21 FY
Slide 7: Recurring Service Net Sales
▌Recurring Service Net Sales Record-high quarterly recurring service net sales due to Record-high recurring service net sales due to expansion of digital transformation market promotion of digital transformation Net Sales by Transaction Type Unit: Millions of yen Recurring services Professional serv
Slide 8: Sales by Service Segment
▌Sales by Service Segment ◼ Authentication and security: Double-digit YoY growth with accumulation of recurring services centered on high-growth-driver service iTrust ◼ Linux/OSS: Sales fell due to impact of delay in sales promotion activities of CentOS7 extended support and loss of new large-scale
Slide 9: Overview by Service Segment
◼ FY2023 Full-Year Financial Summary Agenda ◼ Overview by Service Segment Authentication and Security Services Linux/OSS Services IoT services ◼ FY2024 Full-Year Forecast ◼ Appendix 9 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 10: Authentication and Security Services: Performance and Initiatives
▌Authentication and Security Services | Performance and Initiatives by Service Segment Recurring services grew led by iTrust (Unit: Millions of yen) Authentication and Recurring services sales up 8.4% Security Services net sales FY22 FY23 YoY change (by transaction type) ◼ Stable, high-revenue servi
Slide 11: Overview by Service Segment
◼ FY2023 Full-Year Financial Summary Agenda ◼ Overview by Service Segment Authentication and Security Services Linux/OSS Services IoT services ◼ FY2024 Full-Year Forecast ◼ Appendix 11 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 12: Linux/OSS Services: Performance and Initiatives
▌Linux/OSS Services | Performance and Initiatives by Service Segment Focused on building service provision structure for end of CentOS7 support (Unit: Millions of yen) Linux/OSS Services net Recurring service sales FY22 FY23 YoY change (by transaction type) ◼ Expanded service lineup in tie-up with C
Slide 13: Overview by Service Segment
◼ FY2023 Full-Year Financial Summary Agenda ◼ Overview by Service Segment Authentication and Security Services Linux/OSS Services IoT services ◼ FY2024 Full-Year Forecast ◼ Appendix 13 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 14: IoT Services: Performance and Initiatives
▌IoT Services | Performance and Initiatives by Service Segment Strong performance by EMLinux support and security consulting (Unit: Millions of yen) IoT Services net sales Increase in sales of recurring services (by transaction type) FY22 FY23 YoY change ◼ In addition to use in existing onboard devi
Slide 15: FY2024 Full-Year Forecast
◼ FY2023 Full-Year Financial Summary Agenda ◼ Overview by Service Segment Authentication and Security Services Linux/OSS Services IoT services ◼ FY2024 Full-Year Forecast ◼ Appendix 15 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 16: FY2024 Full-Year Forecast
▌FY2024 Full-Year Forecast Double-digit growth in net sales and operating income Side-by-side with growth investments, high-growth-driver service iTrust and Linux service will lead growth YoY change FY23 FY24 Unit: Millions of yen Change Rate of change Net sales 6,466 7,200 +733 +11.3% Operating inc
Slide 17: FY2024 Full-Year Forecast (Sales by Service)
▌FY2024 Full-Year Forecast (Sales by Service) Net sales by service segment Unit: Millions of yen Double-digit growth by high-growth-driver recurring +6.3％ services due to increased requirements for 1,200 (YoY change) complying with standards and laws and regulations IoT related to economic security
Slide 18: Trend in KPI of High-Growth-Driver Service iTrust
▌Trend in KPI of High-Growth-Driver Service iTrust Number of iTrust transactions (number of paid API use) (Number of transactions) FY23 Number of uses: 28 million /year * In addition to growth in identity verification using Individual Number Cards due to benefits started by specific local government
Slide 19: Basis for Revenue Expansion of iTrust
▌Basis for Revenue Expansion of iTrust: Linked to/Promotion of National Policy Identity verification Digital signature In the Priority Policy Program for Realizing Digital Society*, identity In line with the basic concepts regarding digitalization of disposition verification will, in principle, be c
Slide 20: Basis for Revenue Expansion of Linux Support
▌Basis for Revenue Expansion of Linux Support: CentOS 7 Support to End at the End of June 2024 Sales expected to more than double YoY - Number of inquiries regarding CentOS extended support - Support ends for Expected number of inquiries CentOS7 Sales of CentOS extended support: Quadrupled Total 293
Slide 21: Initiatives Aimed at Further Revenue Expansion of Linux Support
▌Initiatives Aimed at Further Revenue Expansion of Linux Support Promotion of AlmaLinux development and supply system Sales activities in collaboration with major companies Offer high value-added paid service primarily to financial International standard OS AlmaLinux, and manufacturing companies in
Slide 22: Basis for Revenue Expansion of IoT services
▌Basis for Revenue Expansion of IoT services: Economic Security and Standards and Laws and Regulations of Various Countries Expects revenue expansion from requirements for compliance with standards and laws and regulations related to economic security International trends in promotion of Initiatives
Slide 23: Initiatives Aimed at Further Revenue Expansion of IoT Services
▌Initiatives Aimed at Further Revenue Expansion of IoT Services Development of collaborative partners Initiatives related to market environment Enhancing capability to handle projects by Strengthening security solutions for social promoting collaboration with partners having infrastructure compa
Slide 24: Comparison of Operating Income between 1st Half and 2nd Half
▌Comparison of Operating Income between 1st Half and 2nd Half Operating income for FY2024 is expected to be weighted toward the second half of the year compared to the previous year Operating income for FY2024 is expected to be higher in the second half than usual due to increasing expenses such as
Slide 25: 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 26: Appendix
◼ FY2023 Full-Year Financial Summary Agenda ◼ Overview by Service Segment Authentication and Security Services Linux/OSS Services IoT services ◼ FY2024 Full-Year Forecast ◼ Appendix 26 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 27: Numeric data
Numeric data 27 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 28: Full-Term Results Expected (sales by service)
▌ 2025 Full-Term Results Expected (sales by service) Authentication and security Linux / OSS IoT (Millions of yen) (Millions of yen) (Millions of yen) 1,700 5,000 4,300 1,200 4,500 1,394 3,943 +9.0% +21.9% 1,128 +6.3% 4,000 (YoY) (YoY) (YoY) 3,500 3,000 2,500 2,000 1,500 1,000 500 0 1 FY23 2 1 FY23
Slide 29: Composition ratio of major products to recurring service sales
▌ Composition ratio of major products to recurring service sales of Authentication and Security service Device-based 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% 15.5% iTrust 17.3% 90% 22.6% Continue high growth, certification and securi
Slide 30: Cost structure
▌ cost-structure Implementation of human and capital investment necessary for the continuous growth of recurring services Changes in Expenses (Consolidated) (Millions of yen) Capital investment policy Operating Operating income Aggressively invested in provisions and in-house developed software for
Slide 31: Consolidated PL (Detailed Sales by Service)
▌ Consolidated PL (Detailed Sales by Service) (Millions of yen) Consolidated Results 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 Linux/OSS servicing 1,447 1,
Slide 32: 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 33: Major Consolidated Management Indicators
▌ Major Consolidated Management Indicators The sales 1Net assets per share (yen)BPS) Return on equity (ROE) 6,466 (Unit: yen) 743.93 (Millions of yen) (%) 6,167 699.26 13.8 610.12 5,731 12.2 8.9 1 2 3 1 2 3 1 2 3 Operating income and operating income margin 1Net income per share (yen)EPS) Return on
Slide 34: Corporate Profile
Corporate Profile 34 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 35: 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 36: About Us
▌ About Us Company Name Cybertrust Japan Co., Ltd ◼ Certification services and security solutions businesses ◼ Develop Linux OS, use OSS for enterprise Business Activities Software development, support and consulting services Date of Establishment June 1, 2000 ◼ IoT related business and embedded Lin
Slide 37: 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 establis
Slide 38: 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 ("Bal
Slide 39: 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 o
Slide 40: 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 41: Business Overview
Business Overview 41 Copyright Cybertrust Japan Co., Ltd. All rights reserved.
Slide 42: 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 things) record
Slide 43: Business Overview
▌Business Overview Cybertrust provides original Trust services for solving DX issues by combining Authentication and security and Linux/OSS technologies. Trust Services Authentication/security IoT Linux/OSS digital authentication expertise Embedded Linux Linux/OSS expertise Operating domestic certif
Slide 44: 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 45: Overview of Linux / OSS Services
▌ Overview of Linux / OSS Services Japan’s only Linux/OSS distributor run by a group of engineers active in the global OSS community Application Application General Siers Building application systems on operating systems Application domain Linux distributions Functions needed for the Linux kernel ar
Slide 46: Overview of IoT Services
▌ Overview of IoT Services Providing technology expertise ranging from Linux operating systems for IoT devices to authentication and lifecycle management providing secure operation of IoT devices used to verify IoT device authenticity enabling lifecycle management of IoT devices Linux/OSS technology
Slide 47: Glossary ①
▌ Glossary ① Term Description Digitized identity certificates that properly certify and identify targets. These certificates verify the authenticity of people, goods, etc. by digital certificate examining and issuing them by a certification authority as a reliable third-party organization. Preventin
Slide 48: 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 the user as the authorized Client certificate user. There are two main types: User certificates and device certificates. Issued to information devices suc
Slide 49: Glossary ③
▌ Glossary ③ Term Description RHEL Abbreviation for Red Hat Enterprise Linux. A Linux distribution developed and sold by Red Hat for 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 50: 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 Institute of Standards and What is FIPS 140-3? Technology) that was certified in March 2019. Functions as a standard for realizing
Slide 51: 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 52: 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 53: Press Release List (FY23 Q4~)
▌ Press Release List ( FY23 Q4～ ) 01.23 01.25 01.29 02.06 Cybertrust Japan Launched extended support after Cybertrust Japan started to provide vulnerability Cybertrust Japan won a bid for "Provision of Client Cybertrust Japan joins C2PA, a standardization body completing support for open-source syst
Slide 54: 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
Slide 55: Security and Trust
Security and Trust Copyright Cybertrust Japan Co., Ltd. All rights reserved. 55 Copyright Cybertrust Japan Co., Ltd. All rights reserved.