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CYBERNET SYSTEMS CO., LTD.

Results of Operations for the First Half of the Fiscal

Year Ending December 31, 2023

9 August, 2023

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Business Summary of Financial Results for the First Half of FY2023

Projection for FY2023

Our main efforts against Medium-term Business Plan

References

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©2023 CYBERNET SYSTEMS CO., LTD. All Rights Reserved.

Understanding of the current external environment and its impact on the results of the first half of FY2023

Understanding of the current environment

  • Normalization of economic activities due to a decrease in the number of people infected with COVID and easing of behavioral restrictions.
  • A mild slowdown in the global economy against a backdrop of monetary tightening and the end of stay-at-home consumption.
  • Continued high resource prices and inflation due to the prolonged situation in Russia and Ukraine.
  • Concerns about geopolitical risks in East Asia.
  • Promotion of Digital Transformation (DX) to secure competitive advantage for companies and Green Transformation (GX) to achieve carbon neutrality.

Impact on results of the first half of FY2023

  • In Japan, sales of security solutions are strong. Expansion of engineering services that support the promotion of DX at customers.
  • Sales in Asia declined due to weak customer purchasing sentiment, while sales in Europe and the U.S. increased despite cautious investment stance.

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©2023 CYBERNET SYSTEMS CO., LTD. All Rights Reserved.

Financial Results for the First Half of FY2023

  • Net sales increased mainly due to strong renewal of maintenance contracts, despite weak sales of new licenses in Japan and overseas sales subsidiaries.
  • Operating income decreased due to an increase in personnel expenses and recruiting expenses associated with human capital investments, and an increase in travel expenses associated with an increase in sales activities.
  • Simulation: simulation solution services
  • IT: information technology solution services
  • EBITDA: operating income + depreciation

Millions of yen

22/12 1H

23/12 1H

YoY

23/12

Percentage

Results

Results

Change %

Plan

of progress

Net sales

9,736

10,003

+2.7%

22,000

45.5%

Gross profit

4,029

3,948

(2.0%)

-

-

Selling, general and

2,995

3,308

+10.4%

-

-

administrative expenses

Operating income

1,033

640

(38.0%)

1,850

34.6%

(Operating profit margin)

10.6%

6.4%

-

8.4%

-

Ordinary income

979

613

(37.4%)

1,850

33.2%

Profit attributable to

573

289

(49.5%)

1,050

27.6%

owners of parent

EBITDA

1,153

767

(33.4%)

2,170

35.4%

(EBITDA margin)

11.8%

7.7%

-

9.9%

-

EPS (yen)

18.49

9.38

(49.3%)

33.99

-

Number of employees as the

568

583

+15

-

-

end of the quarter (persons)

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©2023 CYBERNET SYSTEMS CO., LTD. All Rights Reserved.

Changes in operating income (YoY comparison)

  • Despite the increase in net sales, income decreased due to a change in the sales mix in the distributor business, an increase in cost of sales due to higher labor costs, and an increase in selling, general and administrative expenses due to higher labor costs, recruiting and hiring expenses, and travel and transportation expenses.

+266(347)

(312)

1,033

640

Millions of yen

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©2023 CYBERNET SYSTEMS CO., LTD. All Rights Reserved.

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Disclaimer

Cybernet Systems Co. Ltd. published this content on 25 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 August 2023 07:57:02 UTC.