Global Security Experts Inc. · TSE:4417
Global Security Experts — Q3 FYE3/2025 Earnings Presentation
60 slides from Global Security Experts's earnings presentation, January 2025
Slide 1: Financial Results Presentation for the Third Quarter of FYE3/2025
F i n a n c i a l R e s u l t s P r e s e n t a t i o n f o r t h e Th i r d Q u a r t e r o f t h e F i s c a l Ye a r E n d i n g M a r c h 3 1 , 2 0 2 5 Global Security Experts, Inc., Securities Code: 4417 January 2025
Slide 2: Agenda
Ag e n d a 1 FYE3/2025 Q3 Performance Highlights P3 2 FYE3/2025 Q3 Performance Overview by Business P10 3 Management Topics P20 4 FYE3/2025 Consolidated Performance Forecast P25 5 Growth Strategy P29 6 ESG Initiatives P37 7 Appendix P39 © GLOBAL SECURITY EXPERTS 2
Slide 3: FYE3/2025 Q3 Performance Highlights
FYE3/2025 Q3 Performance Highlights
Slide 4: FYE3/2025 First Nine Months Performance Highlights
FYE3/2025 First Nine Months Performance Highlights Net sales Operating income Quarterly net income FYE3/24 Q3 FYE3/24 Q3 FYE3/24 Q3 5,032 million yen 856 million yen 563 million yen 6,289 million yen 1,167 million yen 716 million yen YoY change + 25.0% YoY change + 36.4% YoY change + 27.1% 71.5% 73.
Slide 5: FYE3/2025 Q3 Performance Highlights Summary
FYE3/2025 Q3 Performance Highlights Summary Year on year significant increase in sales and profit Record highs for both the quarter and first half Steady progress toward achieving the performance forecast for FYE3/2025 Security services for semi-large and medium-sized companies and SMEs Security per
Slide 6: Transition to Consolidated Accounting
Tr a n s i t i o n t o C o n s o l i d a t e d Ac c o u n t i n g Spin-off of the security personnel SES business on April 1, 2024 into CyberSTAR, a consolidated subsidiary, marking transition to consolidating accounting from the fiscal year ending March 31, 2025 Reflects the profit/loss of BroadBan
Slide 7: Investment gains and losses from equity-method affiliates
I n ve s t m e n t g a i n s a n d l o s s e s f r o m e q u i t y - m e t h o d a f f i l i a t e s The scale of investment losses from equity-method affiliates BBSec (June settlement) and SIV (March settlement) has recently contracted For the FYE3/2025 full-year performance forecast, we expect pro
Slide 8: Capital and business alliance with BBSec and SIV in line with our alliance strategy
Capital and business alliance with BBSec and SIV in line with our alliance strategy Alliance strategy to achieve 25% annual sales growth and ensure further growth as stated in the medium-term management plan Entered capital and business alliances with BBSec and SIV that can strongly drive business f
Slide 9: Net Sales and Operating Income Quarterly Trends
N e t S a l e s a n d O p e r a t i n g I n c o m e Q u a r t e r l y Tr e n d s Net sales grew by +25.2% and operating income by +41.9% year on year, reaching record highs Operating profit margin exceeded 20% in Q3, and achieved a high profit margin Net sales (Millions of yen) Operating income (Mil
Slide 10: FYE3/2025 Q3 Performance Overview by Business
FYE3/2025 Q3 Performance Overview by Business
Slide 11: Business Lines
Business Lines From FYE3/2025, we have clearly established three target segments—semi-large and medium-sized companies and SMEs, IT companies and system integrators, and companies requiring security personnel—organizing these as business domains Semi-large and Target IT companies and Companies requi
Slide 12: Business Lines: Cybersecurity Business
Business Lines: Cybersecurity Business One-stop cybersecurity support for semi-large and medium-sized companies and SMEs Targeted Email Training Services Consulting Services (Management Consulting) Visualizing Building Planning issues systems Over Main services No. 1 share Information security Manag
Slide 13: Business Lines: Security Training Business
Business Lines: Security Training Business Providing training in the security domain for IT companies and system integrators to help them add value to their IT personnel • Improving security standards for engineers • Increasing the number of advanced security IT companies and Security personnel syst
Slide 14: Business Lines: Security Personnel Business
Business Lines: Security Personnel Business Meet the security personnel needs of all companies, regardless of size As a security training company GSX, establish an original business model that provides benefits to both IT companies that have IT personnel and customers that need security personnel IT
Slide 15: Quarterly Net Sales by Business
Quarterly Net Sales by Business Cybersecurity Business Security Training Business Security Personnel Business YoY (Millions of yen) change 1,601 +19.5% 1,527 UP 1,402 1,258 1,339 1,303 ¥ 1,147 1,052 1,115 1,122 910 215 +45.0% 262 UP 226 202 148 182 162 158 137 127 465 +39.1% 90 404 UP 296 334 341 32
Slide 16: Quarterly Gross Profit by Business
Quarterly Gross Profit by Business Cybersecurity Business Security Training Business Security Personnel Business (Millions of yen) YoY change 564 588 +23.6% UP ¥ 437 475 389 416 373 409 308 344 +43.3% 257 133 90 UP 90 63 97 75 44 85 59 69 52 134 144 +30.9% 99 110 99 84 UP 44 49 50 49 47 Q1 Q2 Q3 Q4
Slide 17: Profit and Loss (First Nine Months)
Profit and Loss (First Nine Months) Continued high growth in both net sales and profit, with operating income margin of 18.6%, up 1.6 percentage points year on year FYE3/2024 First FYE3/2025 First (Millions of yen) Nine Months Nine Months YoY Change YoY Change (%) Results Results Net sales 5,032 6,2
Slide 18: Operating income change analysis (cumulative)
O p e r a t i n g i n c o m e c h a n g e a n a l ys i s ( c u m u l a t i ve ) One-time expenses from headquarter relocation all recognized in Q2 SG&A expense ratio in Q3 cumulative period almost the same as the previous year (Millions of yen) Selling, general, and administrative expense ratio -167
Slide 19: B/S
B/S Change from the Change from the (Millions of yen) FYE3/2024 FYE3/2025 End of Q3 previous year previous year (%) Current assets 3,713 3,910 +196 +5.3% Cash and deposits 1,233 858 -374 -30.4% Accounts receivable - trade, and 1,486 1,893 +406 +27.3% contract assets Other 993 1,157 +164 +16.6% Non-c
Slide 20: Management Topics
GSX GLOBAL SECURITY EXPERTS Management Topics
Slide 21: Progress and initiatives of Nippon Cyber Security Fund
P r o g r e s s a n d i n i t i a t i ve s o f N i p p o n C yb e r S e c u r i t y F u n d Security Fund gains broad industry support and expands L.P. Progress of Security Fund Related initiatives and events October 22, 2024 President and CEO Aoyagi • The second round of delivered a speech on openi
Slide 22: L.P. companies
L . P. c o m p a n i e s General trading IT trading companies companies Trading companies Development SIer SIer Consulting and SI System and SI integration Security consulting Security consulting (Large and semi-large) (Semi-large and medium- Consulting sized) Software testing Software testing Secur
Slide 23: Benefits to GSX from the Activation of the Japan Cyber Security Fund
B e n e f i t s t o G S X f r o m t h e Ac t i va t i o n o f t h e J a p a n C yb e r S e c u r i t y F u n d Expansion of scale of industry Acquisition of revenue Acceleration of GSX’s and support for the implementation of GSX’s outside of the core business alliance strategy management strategy In
Slide 24: Strengthening IR activities
S t r e n g t h e n i n g I R a c t i vi t i e s Market capitalization will increase in line with business growth. Opportunities to meet with Japanese and foreign institutional investors will increase We will proactively promote understanding of business activities and sharing growth strategies Chan
Slide 25: FYE3/2025 Consolidated Performance Forecast
FYE3/2025 Consolidated Performance Forecast
Slide 26: FYE3/2025 Basic Policy and Consolidated Performance Forecast
FYE3/2025 Basic Policy and Consolidated Performance Forecast Continue to expand net sales and strengthen the management Basic Policy base to support medium- to long-term growth by placing importance on improving profit margins Aim for net sales of +25.7% YoY and an operating income margin of 18.0% F
Slide 27: Progress Toward Full-Year Forecast
P r o g r e s s To w a r d F u l l - Ye a r F o r e c a s t Although operating income’s progress rate is slightly lower than usual due to one-time expenses for headquarter relocation in the first half, both net sales and operating income are progressing well Net sales (Millions of yen) Progress rate
Slide 28: Forecast of Consolidated Net Sales Composition
Forecast of Consolidated Net Sales Composition Flexibly responding to customer needs through up-selling and cross-selling, leading to expected YoY revenue growth in all businesses Security training Security training Security 11% Personnel Security Business Personnel 10% Business FYE3/25 Forecast Con
Slide 29: Growth Strategy
GSX GLOBAL SECURITY EXPERTS Growth Strategy
Slide 30: The GSX Group's Business Model
Th e G S X G r o u p ’s B u s i n e s s M o d e l segments Semi-large and medium- Companies requiring Target IT companies and system sized companies, SMEs integrators security personnel (End users) (end users/IT companies/etc.) Amid a shortage of security Full line-up needed Using security training
Slide 31: Accelerating Security Needs of Semi-Large and Medium-Sized Companies, and SMEs
Ac c e l e r a t i n g S e c u r i t y N e e d s o f S e m i - L a r g e a n d M e d i u m - S i z e d C o m p a n i e s , and SMEs Frequent Security Incidents Social Pressure Acceleration of DX Organizations that have experienced an incident in the past year comprise Pressure for security measures
Slide 32: Accelerating Security Training Needs of IT Companies and System Integrators
Ac c e l e r a t i n g S e c u r i t y Tr a i n i n g N e e d s o f I T C o m p a n i e s a n d S ys t e m Integrators GSX Training Course Enrollment (Single Year) Security becomes one quality of IT System Cloud Infrastructure 5,958 building and development services operation 4,217 Adding value to I
Slide 33: Accelerating Needs for Security Personnel SES
Ac c e l e r a t i n g N e e d s f o r S e c u r i t y P e r s o n n e l S E S Shortage of Cybersecurity Personnel in Japan Net Sales Over Time in SES Businesses Although the number of security personnel has increased, Security SES Business net sales growth: About 1.5x the shortfall has nearly doubl
Slide 34: GSX Growth Far Outpaces Security Market Growth
GSX Growth Far Outpaces Security Market Growth Net sales growth rate (CAGR) of 40%, well above the market growth rate of 7.6% FYE3/2024 (expected) Reasons for GSX’s High Growth and Future Prospects FYE3/2019 501.6 Network security 722.4 billion yen Reason 1 Dramatic increase in security needs among
Slide 35: Medium-Term Quantitative Targets
M e d i u m - Te r m Q u a n t i t a t i ve Ta r g e t s 25% annual sales growth in existing businesses Emphasis on improving operating income margin to create a solid management foundation to support sustainable growth Net Sales and Sales Composition Operating income Operating Income Margin (Millio
Slide 36: Business Strategies
Business Strategies Basic strategy as the foundation for 25% annual sales growth and alliance strategy and fund formation to ensure further growth Alliance Strategy Fund Formation LP Nippon Cyber Expanding Security Fund 1 Expansion Growth Security Funding Investment sales into new areas acceleration
Slide 37: ESG Initiatives
GSX GLOBAL SECURITY EXPERTS ESG Initiatives
Slide 38: ESG Initiatives
E S G I n i t i a t i ve s We will proactively address ESG and the SDGs with the aim of both realizing a sustainable society and increasing corporate value. In our Internet society, cybersecurity threats are one of the most important social issues that threaten people’s lives and livelihoods. There
Slide 39: Appendix
GSX GLOBAL SECURITY EXPERTS Appendix
Slide 40: About Global Security Experts
Ab o u t G l o b a l S e c u r i t y E x p e r t s A cybersecurity training company that operates throughout the security industry, aiming to improve the self-defense capabilities of companies throughout Japan －Purpose－ To protect all companies from security threats To unwaveringly tell companies wh
Slide 41: Corporate Profile
Corporate Profile A cybersecurity specialist company, established at the dawn of cybersecurity Engaged in three businesses: Cybersecurity Business, Security Training Business, and Security Personnel Business * CyberSTAR Inc., a wholly owned subsidiary, was established on April 1, 2024 by spinning of
Slide 42: Management Members
Director General Manager of Sales Division and Management Members General Manager of Training Business Division Takayuki Nakamura Apr. 2001: Joined SB Technology Corp. Nov. 2019: Joined the Company, Senior Manager of Sales Division President and CEO June 2023: Director and General Manager of Sales D
Slide 43: History: A Cybersecurity Specialist Company Since the Dawn of the Market
H i s t o r y: A C yb e r s e c u r i t y S p e c i a l i s t C o m p a n y t h a t H a s E x i s t e d S i n c e t h e D a w n o f C yb e r s e c u r i t y M a r k e t Our founding business is a vulnerability diagnostic service within the Consulting Business. We began providing services at the dawn
Slide 44: Our Origins
Our Origins Predecessor company Hospital Brain Showa Inc. established as a consolidated subsidiary of Business Brain Showa- Ota Inc. In 2000, TIGER TEAM SERVICE was transferred to Hospital Brain Showa Inc. from a Group company, and the Company was reborn as one specializing in cybersecurity, changin
Slide 45: Uniquely Positioned, Primarily Targeting Semi-Large and Medium-Sized Companies and SMEs
U n i q u e l y P o s i t i o n e d , P r i m a r i l y Ta r g e t i n g S e m i - L a r g e a n d M e d i u m - S i z e d Companies and SMEs A large disparity exists between the security needs of large enterprises and other types of companies. For this reason, other security specialists have contin
Slide 46: Differences in Security Needs and Service Optimization
D i f f e r e n c e s i n S e c u r i t y N e e d s a n d S e r vi c e O p t i m i z a t i o n Large enterprises seek security measures to completely eliminate threats, while semi-large and medium-sized companies and SMEs seek the minimum necessary security measures to eliminate reputational risk to
Slide 47: Barriers to Entry in the Security Market for Semi-Large and Medium-Sized Companies
Barriers to Entry in the Security Market for Semi -Large and Medium-Sized Companies and SMEs Structural challenges exist for competitors attempting to enter the market for semi-large and medium-sized companies and SMEs The market environment is not conducive to earning short-term revenue, and in ord
Slide 48: Lineup That Can Provide Appropriate Services Tailored to the Customer's Situation
L i n e u p t h a t C a n P r o vi d e Ap p r o p r i a t e S e r vi c e s Ta i l o r e d t o t h e C u s t o m e r ’s Situation A structure that facilitates long-term transactions by providing optimal services tailored to the situation Large number of Incident* incidents* countermeasures Normalcy (
Slide 49: GSX's Sales and Capacity Strategies (Business Expansion Model)
G S X ’s S a l e s a n d C a p a c i t y S t r a t e g i e s ( B u s i n e s s E x p a n s i o n M o d e l ) Increasing the number of customers and ARPU by implementing different approaches to new and existing customers Carrying out capacity strategy by cultivating security personnel in IT companies
Slide 50: Sales Strategy — Existing Customers: Up-Sell/Cross-Sell
Sales Strategy — Existing Customers: Up-Sell/Cross-Sell Cross-selling and up-selling through multi-faceted service offerings. ARPU* of existing customers is higher than that of new customers, and we have achieved efficient business expansion through ongoing transactions Efficient Business Expansion
Slide 51: Sales Strategy: Become a Sales Partner for IT Companies Throughout Japan
S a l e s S t r a t e g y: B e c o m e a S a l e s P a r t n e r f o r I T C o m p a n i e s Th r o u g h o u t Japan Leveraging the customer base and presence of IT firms to open up markets that had previously been untapped opportunities By partnering with GSX, IT companies can expand their securit
Slide 52: Capacity Strategy: Developing Delivery Partner Companies
C a p a c i t y S t r a t e g y: D e ve l o p i n g D e l i ve r y P a r t n e r C o m p a n i e s Expanding order capacity by leveraging highly specialized training content to cultivate security personnel in IT companies, partnering with and fostering industry peers, and developing a large number o
Slide 53: Sales Strategy — New Customers: Strengthening Digital Marketing
Sales Strategy — New Customers: Strengthening Digital Marketing Strategy For new customer acquisition, implementing digital marketing measures that lead to orders and shifting to an efficient and effective digital marketing focus to acquire high quality leads Selecting media that specialize in secur
Slide 54: Why GSX is Preferred by Semi-Large and Medium-Sized Companies and SMEs
Why GSX is Preferred by Semi-Large and Medium-Sized Companies and SMEs Positioning Expanding net sales through cross-selling Capturing the Wide-ranging High profits and diverse issues needs of many customers + thanks to GSX-unique offerings Semi-large and medium-sized companies, SMEs and up-selling
Slide 55: Capital and Business Alliances With 25% Annual Sales Growth and Confidence in Further Growth
C a p i t a l a n d B u s i n e s s Al l i a n c e s W i t h 2 5 % An n u a l S a l e s G r o w t h a n d Confidence in Further Growth Alliance strategy to achieve 25% annual sales growth and ensure further growth as stated in the medium-term management plan Capital and business alliances with strat
Slide 56: Security Environment
S e c u r i t y E n vi r o n m e n t With the promotion of DX, including the use of IoT and cloud computing, and the increase in telecommuting, the number of connections with other entities has increased, internal and external threats in organizations have changed, and a variety of incidents have oc
Slide 57: Market Environment for the Domestic Cybersecurity Market
M a r k e t E n vi r o n m e n t f o r t h e D o m e s t i c C yb e r s e c u r i t y M a r k e t In the cybersecurity market, demand for countermeasures is on the rise. In addition, the rapid shift of companies to digital technologies is a tailwind for growth in this market On the other hand, an un
Slide 58: Financial Highlights
Financial Highlights Fiscal Period FYE3/2019 FYE3/2020 FYE3/2021 FYE3/2022 FYE3/2023 FYE3/2024 Net sales (Thousands of yen) 1,302,976 1,616,613 2,948,871 4,391,317 5,558,022 7,002,941 Ordinary income (Thousands of yen) 37,096 73,103 239,370 414,331 737,512 1,104,319 Net income (Thousands of yen) 28,
Slide 59: Precautions
Precautions This document contains forward-looking statements about Global Security Experts, Inc.’s financial results, business operations, and industry trends that are based on Global Security Experts, Inc.’s current plans, estimates, forecasts or projections. Various risks and uncertainties are in
Slide 60: GSX Global Security Experts
GSX GLOBAL SECURITY EXPERTS
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