Our business performance highlights by segment
FY2023/9
the JBS Group has expanded its businesses by dealing directly with major enterprises, leveraging its strengths in the provision of a comprehensive range of solutions from designing value to construction and promoting utilization in the continually expanding public cloud market, particularly involving Microsoft products. Our customers have an increasing need to promote the use of cloud computing. In addition to actively recruiting personnel and shifting skills to enhance our support system, we have established a new integrated production and sales organization to serve our key customers, and have deepened our customer relationships.
In December 2022, we acquired Nextscape Inc., which has strengths in Microsoft cloud services, particularly in Microsoft Azure, MR devices, video streaming, and app development. In addition, we have established a system that enables us to contract Microsoft licenses globally on a lump-sum basis, expanded our overseas sites, and concluded a business alliance with Crayon Group Holding ASA to enhance our global support system for Japanese companies.
As a result, business results for the consolidated fiscal year under review recorded net sales of 112,800 million yen, operating profit of 4,192 million yen, ordinary profit of 4,349 million yen, and profit attributable to owners of parent of 3,350 million yen.
The breakdown of sales by business segment is as follows. The cloud service and license/products businesses generate recurring revenues and account for 65% of total sales.
1. Cloud integration business
In the cloud integration business, which is responsible for implementing cloud services, although the company anticipated expansion of Microsoft365, the shift in customer demand to infrastructure and apps was met by a shift in the skills of engineers, resulting in an increase in projects for cloud utilization, such as Azure and ERP, resulting in net sales of 23,023 million yen and segment profit of 3,537 million yen.
2. Cloud service business
In the cloud services business, which performs maintenance, operation, and improvement of cloud utilization, net sales and segment profit totaled 15,403 million yen and 1,983 million yen, respectively, due to steady expansion of operation and maintenance projects, mainly ongoing projects.
3. License & Products business
In the licenses and products business, which is responsible for sales of Microsoft licenses and various hardware, software, and the other goods, In Microsoft license sales, the acquisition of large bulk orders for licenses from the manufacturing and public sectors led to increased sales, and the expansion of product sales due to hybrid demand contributed especially to increased profits, resulting in net sales of 74,398 million yen and segment profit of 2,045 million yen.
Trends in business performance by segment (full-year)
- The Company has started to adopt consolidated accounting in the fiscal year ended September 30, 2023.
- Cloud integration business
-
- Cloud service business
-
- License & Products business
-
(mil. yen)
| FY2021/9 （Non-consolidated） |
FY2022/9 （Non-consolidated） |
FY2023/9 （Consolidated） |
|
|---|---|---|---|
| Cloud integration business | |||
| Net Sales | 16,961 | 18,344 | 23,015 |
| Segment profit | 2,087 | 2,800 | 3,537 |
| Cloud service business | |||
| Net Sales | 10,745 | 13,371 | 15,389 |
| Segment profit | 1,487 | 1,781 | 1,983 |
| License & Products business | |||
| Net Sales | 47,225 | 54,593 | 74,381 |
| Segment profit | 930 | 1,835 | 2,045 |
Trends in business performance by segment (quarterly)
- The Company has started to adopt consolidated accounting in the fiscal year ended September 30, 2023.
(mil. yen)
| 22/09 1Q |
22/09 2Q |
22/09 3Q |
22/09 4Q |
23/09 1Q |
23/09 2Q |
23/09 3Q |
23/09 4Q |
24/09 1Q |
24/09 2Q |
|
|---|---|---|---|---|---|---|---|---|---|---|
| Cloud integration business | ||||||||||
| Net Sales | 4,468 | 9,299 | 13,483 | 18,344 | 4,888 | 10,816 | 16,608 | 23,015 | 5,653 | 11,633 |
| Segment profit | 800 | 1,676 | 2,161 | 2,800 | 723 | 1,685 | 2,351 | 3,537 | 703 | 1,604 |
| Cloud service business | ||||||||||
| Net Sales | 2,927 | 6,091 | 9,589 | 13,371 | 3,678 | 7,666 | 11,425 | 15,389 | 4,395 | 9,036 |
| Segment profit | 493 | 988 | 1,448 | 1,781 | 503 | 1,100 | 1,568 | 1,983 | 665 | 1,496 |
| License & Products business | ||||||||||
| Net Sales | 13,279 | 22,432 | 39,461 | 54,593 | 14,584 | 28,124 | 54,268 | 74,381 | 15,832 | 33,261 |
| Segment profit | 663 | 937 | 1,318 | 1,835 | 531 | 811 | 1,321 | 2,045 | 582 | 983 |
- 2nd Quarter (2Q) represents an aggregate of the 1st to 2nd quarters.
- 3rd Quarter (3Q) represents an aggregate of the 1st to 3rd quarters.
- 4th Quarter (4Q) represents an aggregate of the 1st to 4th quarters.
Financial Forecasts by Business Segments
Against the backdrop of the corporate DX shift, cloud demand is expected to expand in a wide range of areas, including infrastructure, app development, and ERP. We will continue to provide proposals and services to maximize cloud benefits for our customers by combining the superior products of each company, with Microsoft Cloud at the core.
In the Cloud integration business, in addition to enhancing the system of engineers to handle infrastructure, app development, ERP, etc., which continue to be in strong demand, we will enhance proposals using ChatGPT and other generative AI. In the Cloud service business, in addition to expanding resident services to customers by uncovering demand through an integrated production and sales organization, we will expand managed services. In the License & Products business, we will continue to expand our customer base by offering micro-licenses through the global licensing agreement that we started in the last fiscal year, while taking into consideration the balance between business growth and profitability.
