Acube Dosystems, 2Q -end ARR is+24.7%year -on -year, accelerating coordination with sales partners such as NTT DOCOMO

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Tsutomu Sasaki: Hello everyone.This is Sasaki of Icube Dosystems Co., Ltd.Thank you for your participation while you are busy today.We will try to deepen our understanding of our business growth, so we look forward to working with you.

About what you are talking about today.First, I will explain the summary of the second quarter.Next, we will explain the particularly important part of our business outline, and then talk about new initiatives for the current term as a business highlight.Finally, I will explain the performance in the second quarter and our growth strategy.In addition, there is a question and answer time after the explanation by the material.

Summary for the second quarter of the year June 2022

Let's explain from the summary of the second quarter.Sales were 1.250 million yen, operating income exceeded 453 million yen, and the number of companies introduced exceeded 3,600.This term has been steadily expanding thanks to customers, partners, and relation.Thank you very much.

Due to the global shortage of semiconductor, some customers have taken time to procure mobile terminals, and in some cases, the start of contract starts, but at this time it has not had a major impact on business performance.The progress rate of sales is 46.9 %, and it can be said that the progress is the same as the second quarter of the previous fiscal year.As soon as the semiconductor shortage is settled and the situation where mobile terminals are difficult to procure, the contract will be started sequentially, but we are watching.

ARR changes

About ARR.As of the end of the second quarter, ARR was 2,375 million yen, an increase of 24.7 % from the same period of the previous year.In this term, we have been working with NTT DOCOMO and other sales partners, and the ARR has been steadily expanded.

ARR is an important index in the subscription business, and if the current contract is not canceled, it will be a number of how much sales can be expected in the next year.Since our ARR was about 2.2 billion yen as of the end of the previous term, sales of 2.2 billion yen are already expected as of the beginning of the current fiscal year, and in addition to additional sales and sales from new customers, sales obtained from new customers.We have added to the sales for the fiscal year ending June 2022.ARR is an important indicator in our business, and we will strive to maintain a high continuation rate and acquire new customers so that it can be expanded every year.

Changes in ARPU

ARPUs tend to decline slowly, but we maintain a certain level.ARPU indicates the monthly sales per corporation that uses our services.ARPU is also watching as an important indicator in the subscription business like ARR.

Although the amount of ARPU is declining, when customers have introduced our services, they will first introduce them initially in a specific department or small range, and expand their scope for the whole company over the years.There is a tendency to go.Therefore, in a phase where new customers increase significantly, the average unit price per customer, that is, ARPU, will be pushed down.In recent years, services have been introduced to small and medium -sized customers, and it has become one of the factors that push down ARPU by reducing the number of licenses per customer.

On the other hand, as the additional license introduction by existing customers is progressing steadily, the decrease in ARPU has been kept in a gentle one, and it is possible to maintain a certain level.The transition of this ARPU is generally as expected.

Overview of Clomo business

I will explain our business outline.Our central business is a software service called "Clomo MDM", which manages mobile terminals.MDM is an abbreviation for mobile device management, and works directly on mobile devices such as smartphones and tablets to manage and security measures.

I will explain it to make it easier to imagine.I think some of you who work every day, using smartphones, tablets, laptops, etc. rented from the company.Such a mobile device is very convenient, but it is always carried by individuals, so there is a risk of loss and theft.In addition, there is anxiety about business use at the same time, such as using a security problem when unfamiliar.

In fact, according to a survey by the Japan Information Economic and Social Promotion Association in 2021, one of the five companies that responded to the questionnaire has experienced loss and theft of mobile devices in the past year.So much security measures for mobile devices are an important issue for companies."Clomo MDM" is a software service to resolve such anxiety.

Understand the usage status of mobile devices lent to employees, distribute applications necessary for business all at once, and install them on the terminal, and when the terminal is lost or stolen.It is also possible to limit some functions in advance so that employees do not use security problems, such as locking the terminal remotely.

In recent years, as a work style reform, the need to suppress hidden overtime has increased."Clomo MDM" also has a "work smart" function that does not allow us to use it in business other than a specific time zone.

In addition to this MDM, we also provide a mobile application called "Clomo Secured Apps" for mobile use.This is an application service for companies that require high security measures in addition to MDM.

Financial institutions require more security measures than ordinary business companies.For example, we provide applications such as setting the file attached to the email so that it cannot be copied or not connecting to dangerous websites.

It will be an application service that is used as a set with MDM according to the customer's request.Our product is a service that allows customers to use mobile terminals safely and safely for customers to centrally and ensure necessary settings necessary for emergency measures and operation.

Features as a business platform

It is a feature of our business platform.Our "Clomo" is a SaaS service that provides software through the cloud.In addition, the revenue model is a subscription and is mainly sold to customers through sales agencies.Customers are widely used by those who use mobile terminals, such as business companies in various industries, school corporations and medical institutions.

The dealers here are mobile carriers, mobile phone sales agencies, and IT distribution traders who have contracted with our company.Currently, when introducing a smartphone to a corporation, we often introduce our products together, and the main sales partner is mobile -related agencies.

Among them, nearly 40 % of our sales configuration is sales via NTT DOCOMO, and is the strongest sales partner.In addition, we are working in collaboration with sales partners with strengths, such as Taigaia Co., Ltd. and Solaniwa Co., Ltd.

Stable revenue base with a subscription model

I will explain the profit model and cost structure.First, for the revenue model, the subscription is adopted.With the expectation of continuous sales, it is a business that makes it easier for future prospects.

Sales increase patterns are increasing by acquisition of new customers and increasing the introduction of additional licenses by existing customers.In the acquisition of new customers, sales activities are being carried out through sales partners such as NTT DOCOMO and IT distribution trading companies, which are mobile carriers, and are expanding sales areas while utilizing online sales activities in Corona.

In addition, many of the sales are from existing customers, and sales by maintaining existing customers and adding licenses are most important.As we expand our mobile use of mobile mobile, we will expand the range of introductions and become the benefit of our company, so we are promoting our business by focusing on customer success activities that support customers.

Cost structure that creates scale benefits

About cost structure.We provide services in the cloud, creating a structure that can reduce the rate of increase in cost to our sales ratio by maximizing the maximum of cloud technology.

In particular, the operating cost included in the variable cost has evolved to make it appropriate according to the scale so that efficient operation by adopting new technology is performed, and the operation cost per device is reduced.is.While investing in business growth, we will continue to establish a further high -profit system in the future for our medium -term growth goal of 40 % operating profit margin.

Source of competitiveness = integration

About our competitiveness.The source of our competitiveness is the integration of sales, support, customer saccess, and operation based on our own development.In terms of development, it is important to respond quickly to the year -old OS version upgrade, such as iOS and Android, but in addition to this, it is also necessary to flexibly respond to customer needs, so in -house development is the core.We operate business.

In terms of support and customer success, we follow all customers directly in -house.This is also a feature of our company, which leads to many additional introductions and high continuation rates.In domestic competitors, it is often the case that OEM providers and sales agencies are the support window, so they are not directly contacted with customers, which often leads to customer dissatisfaction.increase.

In addition, in terms of operation, we cover all customers directly in -house, and the know -how in operating operating costs and managing large -scale licenses are accumulated, and utilization for future businesses.Is possible.In this way, our development, direct support, and our own operation are our great strengths to differentiate it from competitors.

Here, I will add a little more about comparison with competitors.First, we do not have a capital and OEM supply relationship with a specific sales partner.For this reason, we have secured an independent and non -restricted sales route.However, among them, NTT DOCOMO has a particularly strong partnership.I heard that NTT DOCOMO still has many so -called Garakae corporate contracts, called Future Phones, compared to other mobile carriers.

Switching to smartphones has already begun, and in our sales, NTT DOCOMO's sales have increased from 28.1 percent in the fiscal year ending June 2020 to 36.3 percent in the June 2021, 2021, which has grown significantly every year.。We believe that the switching movement will continue for the next few years in preparation for the 3G stop, so we will continue to have a high sales growth rate in the future.

One of our technical strengths is a strong partnership with the OS developer.It supports all OSs such as iOS, Android, and Windows, and has built a partnership with the OS developer since the start of service.

Limited disclosure of iOS MDM specifications from Apple has led to the birth of "Clomo MDM", and we have highly evaluated our technical skills.We are working closely with all OS developers, such as Microsoft Japan and Google, to promptly respond to the latest technology and the latest OS.

Especially recently, we have acquired a certification called "Android Enterprise Recommeded" launched by Google in 2018 every year.Unlike iOS, Android has been viewed that there is a security problem in terms of business because the terminal frame and application are not unified.On the other hand, as a company, there is a need to use Android, which is inexpensive with terminals.

"Android Enterprise Recommeded" has begun to promote the use of Android in the enterprise market by selecting a service that can be used for business with high technical skills with high technical skills and recognized as a recommended service.Only two companies, including the Company, are acquired in Japan, and only 10 companies in the world have been certified.It is a great strength to prove our technical skills and differentiate it from competitors.

The competition, which had more than 60 companies at the beginning of the service about 10 years ago, was gradually being eliminated, and the main companies, including the Company, are about six to seven companies.Under these circumstances, we have won the MDM's own brand market for 11 consecutive years, and have spread throughout the market with the strengths of integrated power as we mentioned earlier.

Achievement of the No. 1 share of the domestic MDM market for 11 consecutive years

I will explain the highlights of the business.First, "Clomo MDM" won the share number one in the company's brand MDM market in 2021.Since 2011, we have achieved the number one in the 11 consecutive years, and we have been able to continue to expand our share every year.Gaining more than 40 % share in the MDM market is our important goal, and we will continue to work on expanding the market.

Expanding the usage scene of MDM services

About expanding the use of MDM services.MDM services are being introduced at various business sites regardless of industry and occupation, and their usage scenes are constantly expanding.With the waves of social transformation such as DX, the use of new mobile devices is expected to further increase the market for MDM services that manage them.

In fact, our "Clomo" service has been introduced in many new uses such as manufacturing, medical care, and service industries.By actively publishing cases of using mobile terminals in various types of industries, the "Clomo" service as a foundation for promoting customer DX and using the mobile terminal safely and securely.I am working on the introduction.

Promotion of customer success activities

I will explain about customer success activities.This year's "Clomo" user meeting, but this year, a new attempt was to have a panel discussion with a person in charge of a company that gave a keynote lecture and a case presentation by an external instructor.I think we have been able to deliver what is useful for customer mobile activities.

In addition, a user questionnaire conducted in November responded that more than 80 % of customers were generally satisfied with our support centers.Rather than outsourcing to an external call center, we believe that our staff who is familiar with the product can provide more questions and troubles by providing direct support, leading to customer satisfaction.increase.

Efforts to accelerate collaboration with sales partners

I will explain the new business base.This time, we have decided to open a new sales base.We received a strong request from NTT DOCOMO, a sales partner who is particularly increasingly cooperating, so we decided to open it in Hiroshima first.

We opened a base in Osaka in March 2020, and we have decided to open it with requests from NTT DOCOMO.After opening, the acquisition of customers in the Kansai area has progressed at once.

In the future, we would like to continue to open sales offices in major areas nationwide, accelerate collaboration with sales partners and increase sales.With regard to the opening of Hiroshima, we believe that a realistic base will accelerate collaboration with NTT DOCOMO in the Chugoku region, and to introduce services to local companies.

Start of new services that support MDM operation

"Clomo Operation Agency Service" has been launched as a new service.Based on the results of the user questionnaire conducted by the Company earlier, nearly 90 % of mobile management staff had one to three small people, and more than 80 % of them worked with other tasks.I understand the situation.

In some cases, we have introduced our services with a sense of assignment for mobile management, but it is difficult to use it.The background seems to be that there is no sufficient human resources.

In order to solve such problems, the "Clomo Operation Agency Service" is a part of the operation of "Clomo".For customers, we believe that it is a very advantageous service that can safely use mobile terminals while reducing the work burden, and that in addition to expanding sales, we can also expect a decline in cancellation rate due to customer retention.

Started business investment to improve corporate value

We will report that business investment has been started in earnest to create a new source of revenue.A specialized department specialized in the investment field has been established in the company, and in November, I Cubebentures Co., Ltd. has been established, and funds have been set up to start investment activities.

Through the investment business, we believe that our continuous development can be expected by expanding our business area and helping to create a new wonderful business.We hope to be able to help the ecosystem that respects the entrepreneurial spirit throughout Fukuoka, Kyushu, and Japan as a whole.

Number of introduced corporations / continuation rate

We will report on the second quarter of the fiscal year ending June 2022.First, the number and continuation rate are set as the KPI of the Clomo business.Until the end of the second quarter, the number of net increase in the company was 297 compared to the end of the previous fiscal year.As mentioned at the beginning, there are some delays in the start of contracts due to the shortage of semiconductors this term.

In the previous fiscal year, the introduction of MDM to elementary and junior high schools was accelerated at a stretch due to the GIGA school concept, etc., and the number of companies introduced by the Company increased significantly.This is a situation where the introduction of a mobile device to the school has been settled until March last year, and it is currently being followed by MDM and introduction to private schools.

It is expected that the increase in primary demand in the previous fiscal year has calmed down the increase in the number of companies introduced in the current term, but even though there is a shortage of semiconductors, the number of companies is steadily steadily.Is able to extend, and the need for MDM remains strong.In addition, the continuation rate is still 96.1 %, maintaining a high level.

2022 FY022, 2 quarter of sales and operating income

The second quarter track record is 660 million yen and operating income of 220.1 billion yen.Sales in the quarter have exceeded 600 million yen, and businesses are expanding steadily as 26.7 % of the previous year show.

From this time, the classification of the advertising segment is divided into a single segment to the Clomo business and investment business.It is important to note that the sales associated with the Clomo services that have been displayed as "other businesses" are collected in the "Clomo business".

Clomo Business Sales Trends

Regarding the quarterly transition of sales, we continue to steadily increase the right shoulder.Our services are BtoB, and there are some seasonality, where relatively large -scale new and additional introductions are concentrated in the end of the year, early in March and April.For this reason, sales in the second half of the year tend to increase significantly in the second half of the year.Until the second quarter, it is possible to steadily accumulate with the same progress as usual.

2022 Fiscal FY022 February profit and loss statement

As you can see, the profit and loss statement for the second quarter.

Cumulative sales / operating income in the second quarter of the year June 2022

Looking at the cumulative track record until the second quarter, as described in the summary, sales of 1,250 million yen and operating income of 453 million yen, which is much higher than the same period of the previous year in both sales and operating income.It is.

Cumulative income statement in the second quarter of the June June 2022, 2022

In the second quarter of income statements, gross profit was 86 %, rising significantly compared to the same period of the previous year.Although the cost of sales has declined significantly, we amortized the released software in one year, and the depreciation of the large software released in the fourth quarter of the fiscal year ending June 2020 has ended the depreciation of the current term.The cost is significantly decreasing.

Regarding the changes in depreciation expenses in the future, I hope that you will be paying attention to the amount of the software on the balance sheet.The software under development is recorded as a software pseudonym, and when released, assets are recorded as software.Since the asset is completed, it has been apportioned as a depreciation for one year depreciation and recorded in sales costs.

As for the fact that operating income is firmly improved, you can see it from the income statement, but the factors in the next page will be explained in detail the factors of increasing operating income compared to the same period of the previous year.

Increase and decrease in operating income

I will explain a little more about the factors of increasing operating income.First, in addition to acquiring new customers, operating margins are increasing due to the increase in sales associated with the introduction of additional licenses from existing customers.In addition, as described above, the cost of sales was reduced due to the end of depreciation of software.

On the other hand, we are investing in business expansion, such as human resource investment and system -related investment.Therefore, the number of sales management expenses has increased, but there were some expenses that were part of the advertising expenses, such as advertising expenses, so the operating profit up to the fourth quarter increased by 196 million yen to the same period of the previous year 4.It is landed with a slightly higher number than the plan, which is 153 million yen.

As a result, the operating profit margin up to the second quarter is 37.6 %, which is close to 40 % of the operating profit margin, which is our medium -term goal.However, the operating margin on the full year is planned to be 28.6 % as expected, and we plan to continue investing in human resources and information system infrastructure in the second half.

Balance sheet of the second quarter of the fiscal year ending June 2022

Finally, the balance sheet as of the end of the second quarter.With the start of the investment business, we have purchased a securities that are temporary but are included in fluid assets.This is a temporary acquisition of a short -term financial trust for smooth investment business, and will be cashed during the third quarter.

The equity ratio is 68.7 %, and a stable high level continues, and a financial base for growth investment has been built.Based on this financial base, we will aim to grow and expand the Clomo business and investment business.

So far, we have explained based on the second quarter of the fiscal year ending June 2022.Thank you for your attention.

Q & A: About top lines and profits

The first question is, "The top lines and profits are increasing compared to the growth of the number of introduced corporations, what is the reason?"

As described in the ARR, sales have already been built with a certain base of 2.2 billion yen as of the beginning.In addition, in addition to the increase in sales, in addition to the increase in sales, the depreciation of large software has been terminated, and some of the advertising expenses for sales and management expenses have shifted to the second half of the year.increase.

Q & A: About benchmarks

"Is there a company that is a benchmark?"In addition, the same question is, "Where are the competitors?" And "Where are the companies you are aiming for?"

Basically, all companies that provide MDM services are positioned as competition.Currently, the main companies are about 6 to 7 companies, including the Company.

Among them, we provide services in collaboration with NTT DOCOMO, but there are also MDM vendors that provide services with strong partnerships in other carriers.Therefore, vendors who provide such services to other communication carriers are companies that are strongly conscious of our business development.

Q & A: About continuation of high growth rate

I was asked the question, "Will the high growth rate continue in the future?"

This time, it is not described in the reference material due to time, but it is expected that the entire MDM market will continue to grow from 110 to 115 % every year.

We have also heard from NTT DOCOMO, the largest partner of the Company, that there are still more feature phones for corporations.In addition to the progress to smartphones in the future, we would like to increase the attachment rate to smartphones and the MDM service attachment itself, and the number of companies introduced will continue to increase in the future.I think there is enough.

As a medium -term goal, we will achieve 125 % continuation of 125 % every year, so we hope to continue this growth in the future.

Q & A: About shareholder return measures

I have been asked, "What are you thinking about the shareholder reduction measures?"

In order to realize our continuous growth, it is desirable that we will carry out stable and continuous profit reduction in business growth and feel the benefits of long -term holding of our shares.I have judged.The policy is to continue investing in business as before, but also work on the return of shareholders.

Q & A: About transactions with carriers other than NTT DOCOMO

We have been asked, "Will trading with careers other than NTT DoCoMo expand?"

We believe that NTT DOCOMO's corporate contracts have sufficient growth, such as the migration rate to smartphones and the improvement of MDM attachments and incidental rates.Therefore, I would like to first extend it with emphasis on collaboration and share acquisition here.

Q & A: About the overseas expansion of the Clomo business

"I think that the market size of the ClOMO business is likely to get 40 % of the share and growing peak, but are you thinking about the horizontal deployment and overseas expansion of the Clomo business?"I have.

As I mentioned a little in the explanation mentioned earlier, at the beginning of the service, various services were messed up, and there were more than 60 MDM services.The main points are narrowed from six to seven, but unfortunately many services continue with small share.

We believe that by proceeding with this 40 % share, we can fully achieve the growth we want.In addition, we believe that this continuous growth can be sufficiently expected because there is a larger market with an affinity and continuity in the market, such as the MDM, such as the PC asset management market.。

In addition, there is no technical disability in overseas expansion, so we are thinking of finding opportunities, so I hope you can expect it.

質疑応答:M&Aについて

「成長のためのM&Aは考えていますか?　どのような会社が対象ですか?」とご質問いただいています。

参考資料の「中長期的な成長イメージ」に記載のとおり、新たな収益源の創出としてM&Aについても具体的な検討を開始しています。投資先の企業や分野については、当社のMDMとセットで利用することで、セキュリティを守った上で業務上の利便性が向上するようなサービスであるかを考えています。

一例を挙げると、社内業務システムのクラウドサービスを提供している企業などを対象として考えています。そのような意味では、これからもより具体的にM&Aの可能性も探っていきたいと考え、専任の部署や専任の会社を作ったという状況です。

Q & A: About the effects of investment businesses on their main business

We have been asked, "Is the investment business effective for your main business?"

Of course, we plan to invest in companies and businesses with the Clomo business and synergies.We also believe that our main business is also effective because we will also discover cross -cell products.

In addition, the investment business has just begun, but since this investment business is raised, information related to investment business has been gathered more and more.We already believe that we will be able to fully benefit from getting information in the future to continue to develop in the future.We can expect future investment businesses, of course, and we believe that this investment business will help to determine our business direction.

Q & A: About eliminating semiconductor deficiency

We are asked the question, "When will the semiconductor deficiency be resolved? Will the growth rate be higher if it is resolved?"

Regarding the shortage of semiconductors, there are some places where related terminals are created, so it is difficult for us to say when to resolve.In fact, we believe that there is a time lag from the maker shortage of semiconductors to return to Japan's distribution.

Therefore, we would like to make a cross -selling opportunity to cross -cells to existing customers today, expand the steady continuation rate, and promote more customs activity to this existing customer.increase.

In addition, it is difficult to imagine that this terminal is supplied at once about the fact that the growth rate will be higher if it is resolved.Therefore, we hope that our growth rate will return again according to the status of a certain terminal supply, but we want to proceed so that we can achieve our medium -term goals even if not.thinking about.

Q & A: About the barrier to the entry of "Clomo"

It is said that there is a vendor working for each communication carrier, but is there a high barrier for "Clomo" to operate other than DOCOMO? "

In fact, there are cases where you have been in contact with other careers and have become customers.However, for example, if you are in a scene where your carriers compete, there are some proposals with their own characteristics.

Therefore, in a situation where NTT DOCOMO has proposed with a very strong partnership, we will continue to maximize our efforts to select our products, so that this barrier will become steadily lower. thinking about.

In other words, when you say "Is it a high wall?"

Greetings from Mr. Sasaki

Half of half ended in the year June 2022.In this first half, we have been actively working on new challenges, such as the start of business investment, establishing a subsidiary, and new services.I would like to continue to steadily accumulate while focusing on new initiatives to achieve medium- to long -term growth goals.

Thank you very much for participating in our briefing while you are busy today.Thank you for your continued support.