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CYBERNET SYSTEMS CO., LTD.

Results of operations for the first quarter of the fiscal

year ending December 31, 2023

10 May, 2023

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2

3

Business summary of financial results for the first quarter of FY2023

Projection for FY2023

References

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

Analysis of the current external environment and its impact on the results of the first quarter of FY2023

Analysis 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.
  • Continued high resource prices and inflation due to the prolonged situation in Russia and Ukraine.
  • A mild slowdown in the global economy against a backdrop of monetary tightening and the end of stay-at-home consumption.
  • Normalization of economic activity due to the lifting of China's zero-COVID policy.
  • Concerns about geopolitical risks such as the US-China confrontation.
  • 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 quarter of FY2023

  • Against the backdrop of a moderate slowdown in the global economy and heightened geopolitical risks overseas, there is a cautious stance on investments in Europe, the United States, Asia, etc. However, sales increased.
  • In Japan, sales of security solutions are strong. Expansion of engineering services that support the promotion of DX at customers.

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

Financial results for the first quarter of FY2023

  • Net sales increased due to strong performance in overseas simulation business and IT.
  • 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 Q1

23/12 Q1

YoY

23/12

Percentage

change %

plan

of progress

Net sales

4,636

4,895

+5.6%

22,000

22.3%

Gross profit

1,923

1,912

(0.6%)

-

-

Selling, general and

1,451

1,612

+11.0%

-

-

administrative expenses

Operating income

471

300

(36.3%)

1,850

16.3%

(Operating profit margin)

10.2%

6.1%

-

8.4%

-

Ordinary income

446

317

(28.9%)

1,850

17.1%

Profit attributable to

263

168

(36.3%)

1,050

16.0%

owners of parent

EBITDA

531

364

(31.4%)

2,170

16.8%

(EBITDA margin)

11.5%

7.4%

-

9.9%

-

EPS (yen)

8.48

5.44

-

33.99

-

Number of employees at the

563

585

+22

-

-

end of the quarter (persons)

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

Changes in operating income (YoY comparison)

  • Although sales increased, profit decreased due to an increase in cost of sales related to an increase in labor costs, and an increase in selling, general and administrative expenses related to increases in personnel costs, recruiting costs, and travel expenses.

+258(269)

(160)

471

300

Millions of yen

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

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Cybernet Systems Co. Ltd. published this content on 16 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 May 2023 06:59:07 UTC.