サイバーリンクス（3683） – [Delayed]Financial Results for Q1 FY12/22

Toward a shared, connected futureCYBERLINKS CO., LTD.Financial Results for Q1 FY12/22(January 1, 2022 – March 31, 2022)May 20, 2022Securities Code: 3683INDEX１．Consolidated Financial Results for Q1 FY12/22 ・・・・・・・・ P2２．Performance in Distribution Cloud Business・・・・・・・・ P9３．About CYBERLINKS・・・・・・・・ P13Ⓒ2022 CYBERLINKS CO.,LTD.11. Consolidated Q1 FY12/22 Results1. Consolidated Financial Results for Q1 FY12/22 ■Change in Accounting PolicyWe began applying the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) from the outset of FY12/22.For details, please refer to the subsection of our consolidated financial results for the three months ended March 31, 2022 entitled “(3) Notes to quarterly financial statements” and included under the section “Quarterly Consolidated Financial Statements andPrimary Notes.”Ⓒ2022 CYBERLINKS CO.,LTD.21. Consolidated Q1 FY12/22 Results: HighlightsNet sales3,248 million yenYoY-17.5%↓(millions of yen)Recurring revenue1,689 million yenYoY+6.7%↑Ordinary profit400 million yenYoY-15.6%↓4,500Net salesRecurring revenue4,0003,935 Profit269 million yenYoY-19.1%↓3,500474 3,248 （-17.5%）下期◆ Distribution Cloud: Profitability improved thanks to an increase in recurring revenue and lower amortization expenses.◆ Government Cloud: Sales and profitdeclined significantly due to the absence of special demand that previously boosted results in FY12/21.◆ Trust: Sales declined as we devoted resources to the development of new services.◆ Mobile Network: Sales decreased due primarily to a shortage of handset inventory. Profit also declined mainly because of a reduction in subsidies received from NTT Docomo.3,0002,5002,0001,5001,0005000Ⓒ2022 CYBERLINKS CO.,LTD.1,689 （＋6.7％）1,583 Ordinary profitProfit attributable to owners of the parent company(millions of yen)600400 （-15.6％）333 269 300（-19.1％）50040020010003Q1 FY12/21Q1 FY12/22Q1 FY12/21Q1 FY12/221. Consolidated Q1 FY12/22 Results: Distribution Cloud / Government CloudDistribution CloudGovernment Cloud(millions of yen)1,200Net salesRecurring revenue(millions of yen)(millions of yen)Segment profit1802,500Net salesRecurring revenue(millions of yen)Segment profit3501,026 （＋11.2％）156 （+49.7％）1601,000923 807 876 （＋8.6％）Segmentprofit margin15.2%104 Segmentprofit margin11.3%80060040020002,092 Special demand projects:Digitalization of government radio networks for disaster prevention (Approx. JPY400mn)309 GIGA-school projects( Approx. JPY400mn)Includes a total ofapprox. JPY800mn1,437 （-31.3％）237 （-23.3％）250623 676 （+8.5％）3002001501005001401201008060402002,0001,5001,0005000Q1 FY12/21Q1 FY12/22Q1 FY12/21 Q1 FY12/22Q1 FY12/21Q1 FY12/22Q1 FY12/21 Q1 FY12/22Ⓒ2022 CYBERLINKS CO.,LTD.1. Consolidated Q1 FY12/22 Results: Trust / Mobile NetworkTrust(millions of yen)Net salesRecurring revenue40 Segment profit(millions of yen)(millions of yen)Segment profit(millions of yen)Mobile Network1,000Net salesRecurring revenue900879 772 （-12.1％）151120（-20.3％）12 （-69.7％）(41)8 （+58.0％）5 (54)（-）147 128 （-13.3％）Q1 FY12/21Q1 FY12/22Q1 FY12/21 Q1 FY12/22Q1 FY12/21Q1 FY12/22Q1 FY12/21 Q1 FY12/22Ⓒ2022 CYBERLINKS CO.,LTD.50-10-20-30-40-50-6080070060050040030020010001801601401201008060402004540353025201510501. Consolidated Q1 FY12/22 Results: Factors affecting ordinary profit（millions of yen）DistributionGovernmentTrustMobileCompany-wideOrdinary profitPositive factorsNegative factorsDecrease in software amortizationDecrease in SG&A expensesIncrease in salesIncrease in recurring revenue due to service lineup expansionDecrease in amortization of @rms for medium and large businessesDecrease in salesDropout of special demand in FY12/21R&D investmentPromotion of R&DDecline in handsets soldDecrease in units sold occurred due primarily to a decline in handset inventoryDecrease in subsidies, etc.Reduction in subsidies received from NTT Docomo+52(72)(13)(31)(11)Q1 FY12/21Q1 FY12/22Ⓒ2022 CYBERLINKS CO.,LTD.61. Consolidated Q1 FY12/22 Results: Consolidated Income StatementQ1 FY12/21 (Actual)Q1 FY12/22 (Actual)YoY Change(%)1H FY12/22(Plan)AchievementRate (%)（millions of yen）Net salesDistribution CloudGovernment CloudTrustMobile NetworkRecurring revenueDistribution CloudGovernment CloudTrustMobile NetworkOperating profitOrdinary profitDistribution CloudGovernment CloudTrustMobile NetworkAdjustment3,9359232,092408791,5838076235147469474104309(41)151(49)3333,2481,0261,437127721,6898766768128398400156237(54)120(60)269(17.5)11.2(31.3)(69.7)(12.1)6.78.68.558.0(13.3)(15.0)(15.6)49.7(23.3)ーーー(20.3)(19.1)6,4282,0872,838401,4633,3151,7371,31723238592592351345(112)170(162)38050.549.250.730.852.851.050.551.337.953.967.467.644.668.971.071.0ーーーProfit attributable to owners of parentEPSJPY32.30JPY26.09JPY36.74Ⓒ2022 CYBERLINKS CO.,LTD.71. Consolidated Q1 FY12/22 Results: Consolidated Balance Sheet（millions of yen）End-Dec. 2021End-Mar. 2022AmountCompositionAmountCompositionChangeFactors behind changesCurrent Assets5,89660.9%5,54855.6%(347)Decreases in cash and deposits and work in processNon-currentAssets3,78639.1%4,43244.4%645 Rose due to the acquisition of landTotal Assets9,682100.0％9,980100.0%Current Liabilities2,24023.1%2,42824.3%Non-currentLiabilities2,02320.9%1,95019.5%Total Liabilities4,26444.0%4,37943.9%297188(73)115Total Net Assets5,41856.0%5,60156.1%182Total Liabilities &Net Assets9,682100.0％9,980100.0%297Increases in provision for bonuses and accounts payable—tradeDecrease in long-term borrowings due to repaymentsGrowth in retained earnings stemming from the accumulation of quarterly net profitAssetsiLabilities &Net AssetsⒸ2022 CYBERLINKS CO.,LTD.82. Performance in Distribution Cloud Business２. Performance in Distribution Cloud BusinessⒸ2022 CYBERLINKS CO.,LTD.9Net sales（millions of yen）1,2001,1008007006005002. Performance in Distribution Cloud Business Net sales & Ordinary profit (Quarterly)Recurring revenueOrdinary profit（millions of yen）Recurring revenue ratioRecurring revenueNet sales1,163 1,20090.7%（millions of yen）100.0%87.7%87.4%89.1%85.4%90.0%1,10081.3%20018016014079.9%81.7%80.0%73.8%70.0%Ordinary profitOrdinary profit margin189 160 156 40.0%60.0%120876 858 830 50.0%10097 110 103 104 788 786 799 800810 807 819 1,013 1,016 1,026 1,000983 896 900868 923 919 50.0%45.0%35.0%30.0%25.0%20.0%15.0%10.0%5.0%0.0%1081 15.8%15.3%12.1%16.3%40.0%8030.0%6020.0%4010.0%0.0%2003.6%202010.6%30 10.9%11.3%8.0%q12020q2q3q4q2q3q4q2q3q4q2q3q4q12021q1202年q12020q12021q12022q1q2q3q4q1q2q3q4q120212022Ⓒ2022 CYBERLINKS CO.,LTD.1,0009007006005002. Performance in Distribution Cloud Business Recurring Revenue ① (Quarterly)Distribution Cloud(millions of yen)1,000715 737 758 774 788 786 799 810 807 819 830 ■Services for Food Retailers858 876 (millions of yen)Detailed breakdown included on p. 12486 494 502 502 511 511 512 519 470 460 550 553 530 q1Q12019q1Q12020q2Q2q3Q3q4Q4q2Q2q3Q3q4Q4q2Q2q3Q3q4Q4q1Q12021q1Q12022■Services for food retailers ■Services for processed food wholesalers ■Services for the overall food distribution industry ■Services for Specialty Stores加工食品卸業向けサービス食品小売業向けサービス専門店向け販売管理システム食品流通業界全体q1 q2 q3 q4 q1 q2 q3 q4 q1 q2 q3 q4 q1Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1Q1 Q2 Q3 Q42022201920202021■Services for Processed Food Wholesalers■Services for the Overall Food Distribution Industry ■Services for Specialty Stores(millions of yen)211 205 210 213 219 230 176 180 186 188 193 198 167 Last year, through C2Platform, we launched a support service that facilitates digital transformation in the field of retail business negotiations.We will strive to expand the availability of this service in the future.(millions of yen)27 28 27 26 29 27 26 26 29 31 28 29 31 (millions of yen)50060 61 63 67 68 63 62 60 59 57 57 59 60 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1q1 q2 q3 q4 q1 q2 q3 q4 q1 q2 q3 q4 q12019202020212022q1 q2 q3 q4 q1 q2 q3 q4 q1 q2 q3 q4 q1Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q12019202020212022q1 q2 q3 q4 q1 q2 q3 q4 q1 q2 q3 q4 q1Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q12019202020212022Ⓒ2022 CYBERLINKS CO.,LTD.1190080070060050040030020010002502001501005006005505004504003503008060402002. Performance in Distribution Cloud Business Recurring Revenue ② (Quarterly)Services for Food Retailers: Breakdown of service(millions of yen)■ERP system■Fresh Food EDI■Internet EDI■Others■Shelf allocation system 460 470 486 494 502 502 511 511 512 550 553 519 530 6005004003002001000q12019q2q3q4q2q3q4q2q3q4q12020q12021Ⓒ2022 CYBERLINKS CO.,LTD.q12022123. About CYBERLINKS３. About CYBERLINKSⒸ2022 CYBERLINKS CO.,LTD.133. About CYBERLINKS: Management Philosophy and Basic Management StrategyTo be noble, strong, and devotedBusiness is a noble social activityTake on challenges with a strong mindsetWork together with devotionMarket Selection StrategyNo.1 StrategyCategorize industries and regions into segments, then make concentrated investments to become No. 1 in each segmentAll-inclusive Management StrategyCyber Cell ManagementStabilizationStrategyRecurringRevenue FocusSales per cell hour＝Sales – Expenses――――――――TimeIncreasing sales ,lowering expenses and boost time efficiencyBoost recurring revenue such as information processing fees and maintenance fees as a central part of management* Cell: The smallest unit for managing profitability in management accounting. A section or small group of sections or subsections. * Recurring revenue is revenue that can be earned on an ongoing basis, such as through information processing fees and maintenance fees, and is a management indicator unique to the Company, which aims to expand stable earnings.Ⓒ2022 CYBERLINKS CO.,LTD.143. About CYBERLINKS: Business ModelOur business model is characterized by our “Shared Cloud” service, which focuses on providing the industry’s best functions at affordable prices through “shared use” rather than by addressing the functional requirements of individual companiesCloud Service＋ Shared CloudContinuous UpgradesSharedUseReliableSupportSafeSecureLow cost＝High functionality and high quality through functional improvements (version upgrades) • Reflect as many requests as possible as an industry standard system • Continuous improvement in quality and functionLow cost through shared use • Shared use of not only software and hardware, but also development and operation •Total service from building cloud infrastructure to development, implementation, operation, and maintenanceⒸ2022 CYBERLINKS CO.,LTD.153. About CYBERLINKS Key Services – Distribution Cloud – Food RetailIn 2005, we introduced @rms ERP, Japan’s first cloud retail ERP service, along with a full range of peripheral services for medium and large companies@rms seriesERP system for order, purchase, inventory, sales, and profit managementPeripheral services for medium and large companiesFresh Food Ordering SystemOnline Supermarket SystemPlanogram System forRetailersIndividual Product Information Analysis SystemInternet EDINo.1 in cloud retail ERP system installationsInstalled at1,288 stores *1 out of 21,000 total stores*2As of end FY12/21*1 Number of stores using @rms ERP *2 Total stores in the market based on internal estimatesⒸ2022 CYBERLINKS CO.,LTD.163. About CYBERLINKS Key Services – Distribution Cloud – Food WholesaleThe Cloud EDI-Platform centrally organizes all order data received from retailers via various communication methods on behalf of wholesalers (first in the industry)Cloud Service for WholesalersCloud EDI-PlatformGTV*1JPY8.9tnout of JPY36tn (overall market)*2As of end FY12/21Installed in 7 of the top 10processed food wholesalerscompanies by salesAlso installed at major manufacturers*1 The value of orders received and placed by customers using the Cloud EDI-Platform*2 Overall market GTV figure is an internal estimateLeading Distribution EDI Cloud service (in terms of wholesaler EDI processing volume)Order data received via a wide variety of communication methodsSent to wholesalers via an unified standard (distribution BMS)RetailerRetailerRetailerRetailerRetailerRetailerRetailerZengin TCP/IPJCAFTPAS2ebXML-MSJX procedureWeb-EDIWholesalerWholesalerWholesalerConsolidate network types and communication methodsRetailerRetailerRetailerRetailerRetailerRetailerRetailer(distributionBMS )Unified standard WholesalerWholesalerWholesalerⒸ2022 CYBERLINKS CO.,LTD.173. About CYBERLINKS Key Services – Government Cloud, Mobile NetworkGovernment CloudMobile NetworkNo. 1 market share for local disaster prevention systems in Wakayama PrefectureOperates largest NTT Docomo reseller in Wakayama Prefecture with seven Docomo Store locationsLocal governmentAdministrative information system (ERP and information systems)•Local government information security cloud service• Shared information system services• ERP systemsLocal disaster prevention system (disaster prevention radio, etc.)Docomo Store Iwade (largest store in Wakayama Prefecture)Elementary and junior high school• School administration cloud service (Clarinet)Medical institutions• Medical collaboration platform• Electronic medical records, medical office system■ Nankai Station Store■ Hashimoto Store■JR Wakayama Station Store■ Hashimoto Ayanodai Store■ Iwade Store■ Tanabe Store■ Katsuragi StoreⒸ2022 CYBERLINKS CO.,LTD.183. About CYBERLINKS: Trust ServiceLeveraging our core strength in “Third Trust” service based on the My Number Card, we offer comprehensive trust services for people (identity), objects (existence), and experience (actions).Public Personal Authentication Infrastructure + Digital ProxyPerson (Identity)Authenticity of person, orlegitimacy of person chosen as proxyTime stampObject (Existence)CloudCerts(Blockchain certification)Event(Action)Certainty of existence at given timeCertainty of action at given timeGovernment/MunicipalitiesDigital application serviceProfessionalsDigital application serviceCompaniesDigital contract serviceCertificate issuance serviceCertification• Acquired Time Stamp Authority (TSA) certification (April 2017)• Acquired Public Personal ID Authentication service certification (December 2017)(My Number Card)• Acquired Digital Proxy Authorization Management service certification (July 2020)Ⓒ2022 CYBERLINKS CO.,LTD.193. About CYBERLINKS: Breakdown of Business (Consolidated)Mobile Network 22.4％DistributionCloud30.4％FY12/21Net salesJPY13.2bnGovernment Cloud46.5％Trust0.7％Distribution Cloud売上構成FY12/21Sales JPY4.0bnGovernment CloudFY12/21Sales JPY6.1bnTrustFY12/21Sales JPY90mnMobile NetworkFY12/21Sales JPY2.9bnⒸ2022 CYBERLINKS CO.,LTD.Food RetailersProduct Image Database2.1％Retailpro10.0％ERP Cloud for Food Retailers@rms SeriesERP systemInternet EDI（BXNOAH)Shelf allocation system (Shelf POWER)Fresh Food EDI(@rms fresh food/Sendonet)Other(Online supermarket, single item product information analysis, etc.)C2PF0.9％Internet EDIfor wholesalers24.8％Processed foodwholesalersCloud EDI Service for WholesalersCloud EDI-PlatformOverall fooddistributionindustryInter-company CollaborationPlatformC2 Platform NewOthers for retailers7.5％Shelf allocation system9.2％Product Image DatabaseMdb（Image Database）Specialty stores Sales Management System forSpecialty Stores (Retailpro)Note: Beginning with this presentation, we have made changes to the categories included under the Distribution Cloud business and have accordingly adjusted the elements that appear in the corresponding pie chart.School admin cloud & community medical collaboration22.7%LocalgovernmentGovernment information systemERP and information systemsLocal disaster prevention systemDisaster prevention radio & app, air pollution monitoringCommunitydisasterprevention20.0%Elementary andjunior high schoolsClarinetSchool administration cloud serviceMedicalinstitutionsPrivatecompaniesGovernmentProfessionalsCompaniesIndividualsCorporationsCommunity medical collaborationCommunity Medical Collaboration PlatformElectronic medical recordsMedical office systemCustomer support servicesComputer maintenance, etc.My Number Card TrustTsunAGCloudCertsNewNewMobile phone reselling businessERP system27.0％Internet EDIfor retailers12.5％Governmentinformation55.5%Distribution Sales mixFresh Food EDI6.0％FY12/21Customersupport1.8%GovernmentSales mixFY12/21OthersF Co.E Co.D Co.MobileNo.1 sharein WakayamaPrefecture35.1%C Co.Wakayama Prefecture Market ShareB Co.A Co.FY12/21* Share of reselling stores (%)20CYBERLINKS CO., LTD.Corporate Planning DivisionEmail：keiki@cyber-l.co.jphttps://www.cyber-l.co.jp/ir/■ Disclaimerto the public.This document contains forward-looking statements, including forecasts, future plans, and management targets pertaining to the Company. These forward-looking statements are based on current assumptions about future events and trends, and the accuracy of these assumptions is not guaranteed. Actual results may differ significantly from those described in this document due to a variety of factors. Unless otherwise specified, the financial data in this document is presented in accordance with accounting principles generally accepted in Japan. The Company makes no guarantee that it will revise any of the forward-looking statements it has already made, regardless of the occurrence of future events, except as required by disclosure regulations. Information regarding other companies is based on information that is generally known Ⓒ2022 CYBERLINKS CO.,LTD.21