ブイキューブ（3681） – Revision of Forecast for Fiscal Year Ending December 31, 2021 and Medium-Term Management Plan

Revision of Forecast for Fiscal Year Ending December 31, 2021 and Medium-Term Management PlanV-cube, Inc.株式会社ブイキューブJan 11, 2022Copyright © V-cube, Inc. All Rights Reserved.Revision of Forecast for FY2021Due to the impact of the change in the business structure of Event DX, we expect to achieve our initial sales forecast, but the sales forecast, which was revised upward on August 13, has been revised downward.The operating profit forecast has also been revised downwards due to the delay in the business structure transformation and advertising investment.（Millions of yen）FY2020FY2021Forecast(1/11Revised)FY2021Forecast(Initial Forecast)FY2021Forecast(8/13Revised)Net Sales11,50011,50013,0008,2821,9591,0461,020EBITDA※Operating profit + depreciation and amortization of goodwillOperating ProfitOrdinary ProfitProfit attributable to owners of parent2,6501,4001,2503,0402,0001,8703,6002,4002,300Copyright © V-cube, Inc. All Rights Reserved.21,1381,1501,5602,000※Please note that the figures for FY2021 in this document are forecasts as of today, These will be changed depending on the results of the financial procedures currently underway and the audit.FY2021 Full Year Forecast “Net Sales”Full year sales were revised upwards to 13,000 million yen on 13 August due to strong Event DX growth in the first half and the acquisition of Xyvid in the US.However, the Event DX Business was significantly impacted by the sharp decline in small-scale events that began in the late 3Q, resulting in a significant drop in sales.Some delays also occurred in the Enterprise DX Business, but the Third-Place DX Business performed well.Breakdown of changes in full year forecast Sales474 1,026 EV: Event DXTP: Third-Place DXEP: Enterprise DXXyvid: US subsidiary acquired in June 20211,350 13,000 450 300 11,500 11,200 11,500 （Millions of yen） 13,000 12,500 12,000 11,500 11,000 10,500 10,000As of the beginning ofFY21Upward in 1HConsolidation of XyvidAs of 8/13EV downwardTP upwardAs of 1/11Postponed projects inEPCopyright © V-cube, Inc. All Rights Reserved.3FY2021 Full Year Forecast “Operating Profit”Marginal profit margins in Event DX improved by around 3% over the year, but the impact of a significant decline in small events has led to a significant downturn in marginal profit. Third Place DX performed well but marginal profit margins for Enterprise DX declined due to the impact of missed deadlines for large projects and an increase in resale products such as Zoom. We are managing to it by improving fixed costs.Breakdown of changes in full year forecast Operating Profit（Millions of yen） 2,600160160400750EV: Event DXTP: Third-Place DXEP: Enterprise DXXyvid: US subsidiary acquired in June 20212,000 2,400 10003504001,400 2,400 2,200 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 -As of the beginningof FY21Upward in 1HConsolidation ofXyvidInvestment forgrowthAs of 8/13Marginal profitdownward in EVMarginal profitupward in TPFixed costimprovementAs of 1/11Postponed projectsand decrease ofprofit margin in EPCopyright © V-cube, Inc. All Rights Reserved.4FY2021 Changes in the Event DX BusinessSmall-scale events in the pharmaceutical industry, which had grown strongly in Q1 FY21, suddenly slowed down in Q3, and Q4 was even worse than expected.Medium and larger scale events softened in Q4 due to cancellations caused by client problems, but sales activities are progressing and solid growth is expected.We will achieve strong growth in FY22 through solid expansion of medium and larger scale and higher value-added events, rapid growth in non-pharma industries, and tight control of cost structure. We held a taxi commercial in November and a DX conference in December that attracted over 1,000 people.（Millions of yen）2-year quarterly comparison（ Note the seasonality. Difficult to compare with previous and subsequent quarters. ）（Millions of yen）Latest quarterly previous year comparison1,6001,4001,2001,000800600400200057850629111,004258315814166615991003205641862478113030581183499High Value AddedMedium and LargerSmall1,4001,2001,0008006004002000111004315 High ValueAddedMedium andLarger814 Small258100 FY20 Q4 FY21 Q4FY20Q1 FY20Q2 FY20Q3 FY20Q4 FY21Q1 FY21Q2 FY21Q3 FY21Q4※Please note that the figures for FY2021 in this document are forecasts as of today, These will be changed depending on the results of the financial procedures currently underway and the audit.Copyright © V-cube, Inc. All Rights Reserved.5Progress and Update of Medium-term Management Plan (announced on Nov. 12, 2020)We are updating our mid-term management plan in response to the significant impact of the rapid changes in the business structure of Event DX and the rapidly expanding Telecube.FY22 will be a year of accelerated growth and acceleration toward the next mid-term plan, with an aggressive marketing investments that includes TV commercials.（Billions of yen）KPIFY20（Medium-term）FY20（Actual）FY21（Medium-tem）FY21（1/11Revised）FY22（Medium-term）FY22（1/11Revised）Net SalesEBITDAOperating ProfitNet Profit(*1)7.91.780.91.08.281.961.041.1411.53.042.01.411.52.651.41.1515.34.63.52.713.93.382.01.5Less than 0.5 in advertising expenses plannedROE27％33％More than 30%28%More than 35%28%Dividend Payout Ratio(*2)20%15%12%22.8%Based on 20％aiming for 30％Copyright © V-cube, Inc. All Rights Reserved.（*1）Net Profit ＝ Profit attributable to owners of parent（*2）NOPLAT＝Deemed after-tax profit、Calculated based on an effective tax rate of 34%6Sales Plan by Segment (disclosed on January 11, 2022)The Event DX Business and Third-Place DX Business are expected to continue to drive strong growth.In the general-purpose web conferencing business, some unprofitable businesses will be withdrawn or scaled back, but SDK is expected to continue to grow strongly.【Billions of yen】13.9(1/11Updated)Service ClassificationNew Segment14.012.010.08.06.04.02.00.08.28（Actual）1.02.60.80.50.43.0FY2011.5（1/11Forecast）2.34.70.70.40.72.8FY213.26.20.50.61.02.4Third Place DX(TP)Event DX(EV)Enterprise DX(EP)TelecubeEventLMSEmergency MeasuresSDKGeneral-purpose web, etc.0.9(Goods, On-premises）0.7(Goods, On-premises ）0.3(Goods, On-premises ）FY22Copyright © V-cube, Inc. All Rights Reserved.7Direction of FY22 for each Segment and ServiceSince the impact of the COVID 19 pandemic and changes after the pandemic will vary depending on the business, We described our opinions on each of them.SegmentService classificationComment on the third year of the mid-term management plan, FY22 planThird place DXTelecubeEvent DXEventLMSEmergency MeasuresEnterprise DXWith the change in work styles after the COVID 19 pandemic, we have entered a phase of full-scale diffusion.With a view to selling 10,000 units per year, we will further expand the market within companies and to the public. Start of TV commercialsWork to further expand applications and revenue source through use of technology.Small-scale events in the pharmaceutical industry are minimally factored in with a focus on self-management.Medium and larger scale and high value-added are expected to grow steadily in the pharmaceutical industry and various other industries such as human resources, finance, B2B marketing, and shareholder meetings.Enterprise business grew steadily due to the recovery of customers damaged by COVID 19.Further changes in government policy affect school business, and both sales and profit are expected to decrease by about 150 million yen.FY21 results were sluggish due to limited sales activities in FY20, but are expected to return to a growth trajectory in FY21 due to resumption of sales activities and heightened awareness of disaster preparednessSDKAlthough the start of large-scale projects was delayed in FY21, growth is expected due to the start of these projects and solid demand for SDK usageGeneral-purpose web, etc.FY21 sales are expected to decline by 400 million yen due to withdrawal from on-premise general-purpose web conferencing and withdrawal/reduction from unprofitable product sales, given the impact of lower demand for on-premise services. Total SaaS sales of V-CUBE Meeting and Zoom are expected to remain flat.Copyright © V-cube, Inc. All Rights Reserved.8Provide Even Opportunity to EverybodyB e y o n d T e l e w o r kCopyright © V-cube, Inc. All Rights Reserved.9DisclaimerThis documents contains forecast, target, plans and other future-related information of V-cube,Inc. (including all subsidiaries). This information stated in this documents is based on theinformation at hand when creating this document. The statements in this document is basedon the aforementioned principle. The statements and prerequisite stated in this documents isonly a prediction and forecast of the future, we do not guarantee all statements will be realizedin the future. Please refer to V-cube’s summary of accounts, securities report, disclosuremagazines, annual report, etc., for uncertainty and risks of the information in this document.The information in this documents was received at the time of creating this documents, thus forchanges occurred after the creating of the documents, V-cube does not resume responsibilityof updating the information. Your understanding is appreciated.Information disclosed regarding other companies in this document are from public releases, incase of misinterpretation, V-cube do not guarantee the accuracy of this information. V-cubedoes not resume responsibility for any misinterpretation, mistake, or damages caused by theuse of this document and the data used in this documents. Your understanding is appreciated.V-cube claims all rights of this documents, please do not by any means or purposes,electronically or mechanically copy or forward this documents.Copyright © V-cube, Inc. All Rights Reserved.10