Slide 1: Business Overview and Financial Results Briefing FY2021
Cybozu, Inc. Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2021 February 24, 2022 Cybozu, Inc.
Slide 2: About Cybozu
About Cybozu Cybozu, Inc. Business Develop, sell and operate groupware/Methodology consulting business Representative Yoshihisa Aono Director and President Established August 1997 Head Office Tokyo Nihombashi Tower, 2-7-1 Nihombashi, Chuo-ku, Tokyo Locations Tokyo, Osaka, Matsuyama, Nagoya, Fukuoka,
Slide 3: Our vision since 2020
Our vision since 2020 Purpose Create a society brimming with teamwork Culture Be transparent Share a common vision Build a foundation for open trust Create a common vision that resonates with all members and guides their Be yourself, take actions responsibility Embrace individuality Cultivat
Slide 4: Information sharing and teamwork
Information sharing and teamwork Data, information, and communication is separated by team, making it impossible to share information outside one’s team Information is siloed, cutting the workplace off from the data it needs to innovate Information shared openly on one platform. Workplace-driven bus
Slide 5: Cybozu's cloud services
Cybozu’s cloud services Business app development platform Groupware Platform for implementing Easy and simple no-code/low-code business groupware for solutions SMEs Mail-sharing application Groupware for large and mid-sized organizations Centralized management of team email correspondence
Slide 6: The Cybozu ecosystem strategy
The Cybozu ecosystem strategy Extend product functionality with third-party service integrations and plug-ins Extend functionality with plug-ins and third-party service integrations Core features Core features Process Database management Communication More on extending functionality with plug-ins an
Slide 7: Surround ourselves with partners and users that can grow with us
The Cybozu ecosystem strategy Surround ourselves with partners and users that can grow with us Product partners User Product partners Consulting partners User User User User User Consulting community partners Product User User partners
Slide 8: Consolidated sales and operating profit
Consolidated sales and operating profit Sales Operating profit (Million JPY) (Million JPY) 20,000 2,500 Non-consolidated sales 18,000 Group sales 2,000 16,000 Consolidated operating profit 14,000 1,500 12,000 10,000 1,000 8,000 500 6,000 4,000 0 2,000 0 -500
Slide 9: Consolidated financial results
Consolidated financial results Consolidated Financials FY2020 FY2021 FY2022 (Actuals) (Actuals) (Forecast) ( U n i t : m i l l i o n J P Y ) Sales 15,674 18,489 21,730 Operating profit 2,270 1,441 345 Ordinary profit 2,272 1,468 401 Current net profit 1,435 551 - 429 Net profit per share 31.30 JPY 1
Slide 10: Detailed results FY2021
Detailed results FY2021 Consolidated PL FY2020 FY2021 (Unit: million JPY) Actuals Actuals Consolidated sales +2,815 million JPY YoY S a l e s 15,674 18,489 (+18.0%) Cost of sales 1,086 1,339 Labor costs 5,502 6,315 Advertising Aggressively invested in expenses 2,673 4,907 advertising and promotion O
Slide 11: Ramped up advertising and promotion
Ramped up advertising and promotion Leveraged cloud business growth and aggressively invested in advertising to increase product awareness Expected to pay off in the long run Aired TV commercials to promote product awareness. We expect these campaigns to take several years to yield substantial busin
Slide 12: Consolidated BS
Financials Consolidated BS FY2020 FY2021 YoY (Unit: million JPY) A s s e t s 12,235 14,037 + 1,802 -Cash & deposits 3,956 4,805 + 849 L i a b i l i t i e s 5,829 7,665 + 1,836 -Short-term debt − 2,200 + 2,200 Extra funds for active investment N e t a s s e t s 6,405 6,371 −34 -Treasury stock -1,800
Slide 13: Cloud business still growing 10 years after our shift to the cloud
Cloud business still growing 10 years after our shift to the cloud Consolidated sales (on-premises/cloud) (Million JPY) Cloud-related sales 20,000 On-premises Cloud YoY 18,000 Shift to cloud-based business Sales network development +26% ・Kintone released ・Stable revenue stream from ・ Setting our sig
Slide 14: Business expansion through our ecosystem
Business expansion through our ecosystem Partner sales revenue increasing every year Partners Integrations services Partner sales accounted for 60% of cloud About 360 Over 300 sales in 2021 companies services * As at end of December 2021 * As at end of December 2021 Revamped partner program Direct s
Slide 15: Sales by product
Sales by product * As at December 2021 Package Cloud 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Package Cloud Package Cloud 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Slide 16: Number of customers who have deployed our products
Number of customers who have deployed our products (as of December 2021) 23,000 companies 72,000 companies 6,400 companies 11,800 companies * Kintone: Domestic companies signed up to Kintone (Kintone is cloud only) * Other products: Total number of domestic companies who have deployed product on-pre
Slide 17: Updating Kintone's functionality and UI/UX
Updating Kintone’s functionality and UI/UX 70 Example New New Kintone admin setting feature Block users from creating apps not Around Enhanced control of apps and spaces associated with a specific Kintone space updates OFF (blocked) performed in Setting is Kintone platform 2021 OFF All users with pe
Slide 18: Integration plug-ins create new possibilities
Integration plug-ins create new possibilities Numerous plug-ins released by our partners Use Garoon with Kintone Garoon-Kintone schedule integration plug-in About Garoon-Kintone workflow integration plug-in 47%. * 2021 User Survey Microsoft 365 Teams integration plug-in Zoom scheduling integration p
Slide 19: Registered as ISMAP compliant
Registered as ISMAP compliant (security evaluation standard for government information systems) The cloud service infrastructure cybozu.com as well as Garoon and Kintone (both hosted on cybozu.com) are registered in the ISMAP-certified cloud service directory. cybozu.com common authentication (log/u
Slide 20: Third-party commendations
Third-party commendations Nikkei Computer, Sept. 2, 2021 edition Nikkei BP Government Technology Nikkei Computer, Feb. 17, 2022 Customer Satisfaction Survey 2021-22 Fall 2021 edition edition Cloud Infrastructure Services Municipal Government IT System Partner Satisfaction Survey 2022 IaaS/PaaS categ
Slide 21: Growing Kintone as a tool for workplace-driven business improvements
Growing Kintone as a tool for workplace-driven business improvements Total Kintone customer volume 93% of stakeholders Customer breakdown by sector deploying Kintone in their 23,000 companies not in organizations are (As of December 2021) the IT department Average number of Department of customer st
Slide 22: Kintone perfect for corporate digital transformations (DX)
Enterprises Kintone perfect for corporate digital transformations (DX) Rapid business improvement done in-house, thanks to Kintone Collaboration between IT/DX department and business divisions Responding to business changes Business improvement powered by workplace-driven app development and Kintone
Slide 23: DX division and business divisions collaborate to build new solutions
Enterprises DX division and business divisions collaborate to rapidly build new business solutions and improve operations Operations digitized by the DX department can be instantly implemented in the workplace. Providing a digital environment from the get-go translates to a continuous "build, scra
Slide 24: Kintone in local governments
Public Sector Expanding the use of Kintone in local governments TMG Tokyo Managing vaccination of healthcare workers against COVID Kintone used throughout the Tokyo Metropolitan Government (TMG), (2) Input required data in including for managing inoculation of healthcare workers against Kintone to c
Slide 25: Share DX for local governments, made possible by Kintone
Public Sector “Share DX" for local governments, made possible by Kintone Mutual sharing of know-how and best Govtech Kintone Community practices between local governments Connecting local governments Main features of the community Customer stories from Best-practice templates local governments Local
Slide 26: Partnership scheme with regional banks to grow new partner channels
Banks Partnership scheme with regional banks to grow new partner channels Business model for cooperation with regional banks Deliver Kintone Regional bank Customers Backup & support Business matching Local sales staff Proposal and consulting services Official Cybozu partners Consultation Business im
Slide 27: Engaging local businesses with regional banks
Banks Engaging local businesses regional banks have close community ties with to build dynamic regional economies Regional bank partnerships Consulting by regional banks - Track record Partnership with 10 regional banks After approx. 4 years, 200 300 around 300 nationwide Another 13 banks are affili
Slide 28: Expanding the Cybozu way: Disaster DX
Expanding the Cybozu way Disaster recovery support with Kintone "Disaster DX" Utilize Kintone at disaster sites because it can improve operations from Seminars: 149 the bottom-up A flexible solution that can be updated according to the situation on Training and consulting 87 the ground to rapidly
Slide 29: More offices and increased hiring
More offices and increased hiring Bolstered our product, sales, and marketing support organizations April 2021 Sapporo Office opened Headcount and turnover rate 800 30 May 2021 700 Fukuoka office relocated & Headcount at end of FY (non- 25 expanded 600 consolidated) Turnover rate: %. 20 500 January
Slide 30: Global expansion
Global expansion Shift targeting local YoY companies into high gear YoY + 7.2% Half of new deals are local companies. + 30.8% Greater China 1,190 US 680 SDs With the opening of our Improve sales and support to representative office in Bangkok companies increase customer in Oct. 2020, our strategy sa
Slide 31: Enhanced user approach with hands-on support
Enhanced user approach with hands-on support Kintone enables people on the frontline in workplaces to improve business operations from the bottom-up US Market Trends Kintone Corp. Booming aPaaS market Hands-on proactive support (“companion runner service”) Initially considered mere shadow IT, aPaaS
Slide 32: Boosting sales base in Southeast Asian markets
Boosting sales base in Southeast Asian markets Press release on Feb. 24, 11:00 a.m. (Japan time) March 2022 Cybozu establishes first Southeast Asian sales office in Kuala Lumpur, the capital of Malaysia Thailand Bangkok Representative Office Malaysia subsidiary Kintone Southeast Asia Sdn. Bhd. Kinto
Slide 33: Aggressively investing in future cloud growth
Aggressively investing in future cloud growth Sales Operating profit (Million JPY) (Million JPY) 25,000 2,500 Sales (consolidated) New TV ad airing from Feb. 7 Operating profit 2,000 20,000 (consolidated) Active investment in 1,500 advertising promotions 15,000 and other awareness 1,000 measures 10,
Slide 34: Next-gen cloud infrastructure to support future cloud business growth
Next-gen cloud infrastructure to support future cloud business growth Ten years after releasing cybozu.com in 2011, we are revamping our cloud infrastructure to prepare for future growth cybozu.com (cloud services platform) Current cloud infrastructure ("Forest”) Next-gen cloud infrastructure ("Neco
Slide 35: Updated corporate blueprint
Updated corporate blueprint DX CX Digital Transformation Corporate Transformation New advisory process for all employees to give feedback on management decisions Nominating candidates for Board of Directors’ positions from within Appointing Outside Directors in accordance with the revised Comp