Consolidated Financial Results for the Third Quarter of ... · Consolidated Financial Results for the Third Quarter of the Year Ending March 31, 2013

Consolidated Financial Results for the Third Quarter of the Year Ending March 31, 2013

© 2013 CYBERNET SYSTEMS CO.,LTD. All Rights Reserved.2

Contents• Overview of Consolidated Financial Results for the Third

Quarter of the Year Ending March 31, 2013

• Projection of Results for FY2012

• Reference


FY2012 CYBERNET Group

Consolidated companies– CYBERNET SYSTEMS CO., LTD

(From April 1, 2012 to March 31,2013）

– WATERLOO MAPLE INC. (From January 1,2012 to December 31, 2012)

– Noesis Solutions NV .(From January 1,2012 to December 31, 2012)

– CYBERNET CAE SYSTEMS (Shanghai) CO.,LTD. (From January 1,2012 to December 31, 2012)

– Sigmetrix, L.L.C. (From January 1,2012 to December 31, 2012)


［Consolidated］Performance Summary

104.4%8751.5%0.9％911.8%177Net income

155.4%19569.5%3.0％3034.5%436Ordinary income

130.9%15649.5%2.1％2044.2%413Operating income

107.2%3,871100.7%41.7％4,14842.2%4,120Gross profit

99.4%10,020101.9%―9,960―9,773Net sales

Difference from PlanEstimatesY-o-YRatioAmountRatioAmount

FY2012 3QFY2011 3Q

Millions of Yen

Business SummarySales had steady growth due mainly to keep high renewal sales rate for the mainstream CAE software and order receipt of large-scale projects from focused customers and from new segment activities.Since budget execution by Electrical Industry - one of our principal customer segment - has been frozen or postponed, it resulted receipt of forecasted new orders were fell short than expectation levelDeclining of “Operating income” , “Ordinary income”, “Quarterly net income” compare with the same period of the previous was due mainly for the following reason;

Under the circumstances, the impact of “The Great East Japan Earthquake” given to our business performance, our budget execution was in a careful manner in FY2011 thus significant expenditure reduction was carried out, however it was resumed to normal business operation in FY2012.Pursuing “the new midterm business plan for the period between fiscal 2012 and 2014” has increased expenses in the current fiscal year. * Please refer to Page# 19 for summary by application area.


FY 2010 FY 2011 FY 2012Millions of yen

［Consolidated］Quarterly net sales

3,6362,965 2,633

3,784 3,8633,192

2,717

3,840 4,141

3,041 2,776

0

1,000

2,000

3,000

4,000

5,000

1Q(4-6)

2Q(7-9)

3Q(10-12)

4Q(1-3)

1Q(4-6)

2Q(7-9)

3Q(10-12)

4Q(1-3)

1Q(4-6)

2Q(7-9)

3Q(10-12)

4Q(1-3)



151.6%12978.0%4.7％1966.5%251Net income

156.6%24086.9%9.1％37511.2%432Ordinary income


111.7%1,511102.4%40.8％1,68842.7%1,648Gross profit

105.6%3,924107.2%―4,141―3,863Net sales


FY2012 1Q(4-6)FY2011 1Q(4-6)

Millions of Yen

(24)22(75)―(2)2.3%72Net income

81.0%4521.8%1.2％365.2%166Ordinary income


107.7%1,23295.9%43.6％1,32643.3%1,383Gross profit

95.8%3,17695.3%―3,041―3,192Net sales


FY2012 2Q(7-9)FY2011 2Q(7-9)

Millions of Yen

FY2012(4-6)

FY2012(7-9)



(38)(64)44―(102)―(147)Net income

(19)(89)53―(109)―(163)Ordinary income

(73)(103)24―(176)―(201)Operating income

100.5%1,128104.0%40.8％1,13340.1%1,089Gross profit

95.1%2,920102.2%―2,776―2,717Net sales


FY2012 3Q(10-12)FY2011 3Q(10-12)

Millions of YenFY2012(10-12)


［Consolidated］Cost of sales per net sales and Selling, general and administrative expenses per net sales (cumulative)

58.3% 57.3% 57.0% 57.8% 57.7% 59.2% 58.0% 58.3%

37.3%31.8%

34.3%37.9% 37.7%

32.1%36.7%

39.6%

0%

10%

20%

30%

40%

50%

60%

70%

FY20104Q

FY20111Q

FY20112Q

FY20113Q

FY20114Q

FY20121Q

FY20122Q

FY20123Q

Cost of net sales per net Selling, general and administrative expenses per net revenues


413

FY2011 3Q Operating income

204

＋107

(35)

(90)

(131)

(69)

＋9

Increase of O

utsourcing

Millions of Yen


［Consolidated］Increase and Decrease in Operating Income Changes

Increase of net sales

Decrease of cost of G

oods to net sales

Increase of cost of sales for service

Increase of Labor cost

Increase of the others of selling and general

administrative

expense


［Consolidated］Cost of sales for service

Cybernet +120.2%369.3%+12174Inventory at beginning of period

Research and Development expnese+43Sales support activities +283.4%123.5%+63335271Transfer to other account

19.5%107.0%+1271,9421,814Total

0.2%64.8%(13)2438Inventory at end of period

0.0％146.4％＋132Materials cost

Cybernet (22)0.5%70.2%(22)5375Outsourcing fees

16.1%106.0%+901,6001,509Cost of sales for service

0.4%110.2%+33633Others

0.2%71.1%(6)1623Commission

Cybernet +360.8%210.6%+397636Outsourcing

0.3%112.1%+33027Depreciation

Cybernet +340.5%342.4%+354914Maintenance

1.7%100.2%+ 0166165Rents

0.1%142.8%+3128Office Supplies

Cybernet +100.8%119.0%+138168Traveling and Transportation

0.2%128.6%+41814Communication

Cybernet +1714.0%103.9%+521,3961,343Labor cost

DetailsRatioY-o-YDifferenceFY2012 3QFY2011 3Q

Millions of yen


［Consolidated］ Selling and general administrative expenses

39.6%106.4%+2363,9443,707Total

Research study expenses + 54Sales support activities + 284.6%123.9%+88460371Others

1.5%100.5%+0146145Commission

Cybernet+ 351.5%131.0%+35149114Outsourcing

1.9%100.4%+0193192Advertising

Foreign Exchange Fluctuations (12)2.1%92.8%(16)212228Amortization of goodwill

Depreciation of Distribution rights (25)0.7%72.7%(26)7197Depreciation

0.5%95.1%(2)4648Maintenance

2.5%99.1%(2)250252Rents

0.1%84.0%(1)810Education and Training

Cybernet ＋100.2%207.7%+102010Recruiting

0.2%84.9%(3)2024Office Supplies

Cybernet+ 111.7%111.6%+17164147Traveling and Transportation

1.2%103.9%+4121117Communication

Cybernet + 10120.9%106.7%+1312,0761,945Personal

DetailsRatioY-o-YDifferenceFY2012 3QFY2011 3Q

Millions of yen


(Non-Consolidated)Foreign Exchange Fluctuations and Increases/Decreases in Operating Margin

• Foreign Exchange FluctuationsAverage actual booking rate JPY80.92/USDActual buying rate JPY79.28/USDBudget rate JPY84.00/USD Difference of Y-Y actual booking rate

＋ JPY 0.53/USD（FY2011 3Q: JPY80.39/USD）Difference between booking rate and budget rate－ JPY3.08/USD

※Effect for gross profit compared to budget ＋ JPY63MDifference between actual buying rate and budget rate

－ JPY4.72/USD• Foreign Currency Transaction Gain and Loss (End of term rate JPY86.56/USD)

Gain/loss from revaluation of foreign currency-denominated deposit ＋ JPY5MGain/loss from revaluation of payables ＋ JPY10MGain/loss at book-closing ＋ JPY11MGain/loss from revaluation of foreign exchange forward contracts ＋ JPY6MTOTAL ＋ JPY34M


［Non-Consolidated］Increase and decrease in Operating Income Changes

749

548

(10) ＋89 (35)

(53)

(101)

(90)

Foreign exchange fluctuations

Increase of net sales

Increase of cost of Goods

to net sales Increase of cost of sales

for service

Increase of Labor cost

Increase of the others of selling and general

administrative

expense



Millions of Yen


［Consolidated］Statements of Cash Flows

Net cash provided by operating activities Net cash provided by investing activitiesIncome before taxes ＋305 Proceeds from withdrawal of time deposits ＋100Depreciation ＋128 Purchase of shor-term investment securities (999)Amortization of goodwill ＋212 Decrease in investment securities ＋1,686Notes and account receivable(decrease) ＋707 Increase in loans receivable (212)Account payable(decrease) (434)Accrued expenses (92) Net cash provided by financing activitiesProvision for bonuses (223) Payment for dividends (322)Provision for retirement benefits（ increase) ＋65Income taxes paid (793)

[FCF 794] [FCF (96)]

838

(58)(912)

1,996 1,771

488

(322)(180)

(1,000)

(500)

0

500

1,000

1,500

2,000

FY2011 3Q 　　　 FY2012 3Q

Millions of yenOperating activities Investing activities Financing activities Cash and cash equivalent


Elimination

AmountComposition

ratioRatio Amount

Compositionratio

Ratio Amount Amount Ratio

Net sales 8,597 88.0% ― 1,175 12.0% ― 0 9,773 ―Operatingexpenses 7,240 ― 84.2% 1,119 ― 95.2% 1,000 9,359 95.8%Operatingincome 1,357 ― 15.8% 56 ― 4.8% (1,000) 413 4.2%

CAE Soluti on Serv ices IT Solution Serv ices Consolidated

Elimination

AmountComposition

ratioRatio Amount

Compositionratio

Ratio Amount Amount Ratio

Net sales 8,609 86.4% ― 1,350 13.6% ― ― 9,960 ―Operatingexpenses 7,506 ― 87.2% 1,197 ― 88.6% 1,051 9,755 97.9%Operatingincome 1,102 ― 12.8% 153 ― 11.4% (1,051) 204 2.1%

CAE Solution Services IT Solution Services Consolidated

［Consolidated］Business Segment InformationFY2011 3Q Millions of yen

FY2012 3Q Millions of yen

１．CAE solution services (Y-o-Y Net Sales 0.1% increase)(Y-o-Y Operating income 18.8% decrease)

２．IT Solution services (Y-o-Y Net Sales 14.9% increase）(Y-o-Y Operating income 171.3% increase）


133.3%27188.9%4.2%3624.8%407Net income

130.0%47184.2%7.0%6128.5%727Ordinary income

116.3%47173.1%6.3%5488.8%749Operating income

109.0%3,21799.7%40.3%3,50641.2%3,515Gross profit

99.8%8,721102.0%―8,702―8,529Net sales


FY2012 3QFY2011 3Q

Millions of yen

［Non-consolidated］Performance Summary

*The content of “Business Summary” is the same as the “Summary of consolidated Financial Results ” in the page #4.


135.1%23787.3%8.5%32110.5%367Net income

138.3%38393.9%14.1%53016.1%564Ordinary income


114.9%1,337103.0%40.8%1,53742.6%1,492Gross profit

106.5%3,539107.4%―3,768―3,507Net sales


FY2012 1Q(4-6)FY2011 1Q(4-6)

Millions of yen


72.8%9648.1%2.7%695.4%145Net income

70.7%15743.1%4.4%1119.5%259Ordinary income


104.9%1,02092.6%42.0%1,06942.5%1,155Gross profit

92.9%2,74293.7%―2,547―2,718Net sales


FY2012 2Q(7-9)FY2011 2Q(7-9)

Millions of yen

FY2012(4-6)

FY2012(7-9)


33(62)76―(28)―(105)Net income

40(70)66―(29)―(96)Ordinary income

(10)(70)28―(80)―(108)Operating income

104.5%860103.7%37.7%89937.7%867Gross profit

97.8%2,440103.6%―2,386―2,304Net sales


FY2012 3Q(10-12)FY2011 3Q(10-12)

Millions of yen


FY2012(10-12)


Summary by application area

Sales of new license of the focus products (and packages) had substantially increased, however for sales of new license of products produced by Cybernet group companies were fell short than expectation level.New products and others

Increasing demand for analytical data visualization for urban environmental engineering, civil engineering and meteorological has led to steady growth.Demanding for “Image diagnostic management” is being increased in the medical field, however sales could not preserve similar performance with the same period of last year.

V i s u a l i z a t i o n

Established wholly-owned overseas subsidiary in Korea and one sales subsidiary in North America of a group company-Noesis to boost group company product and solution business, Opened Beijing branch office of CYBERNET SYSTEMS (Shanghai) in PRC to strengthening sales force.

O v e r s e a s B u s i n e s s

Had substantial sales growth in IT Asset Management solution and Full-disk encryption software and other IT infrastructure products.Made a great contribution to the operating achievement as the result of won a big bid of Security Threat Protection solution from a large institutional customers and also accepted orders from a major Equipment manufacturer for PC Scan Engine/Remote Control solution.

IT Solution Services

Sales of new license of products produced by Cybernet group companies showed a substantial increase until the Second Quarter of FY2013, however could not preserve similar performance with the same period of last year in the Third Quarter.Sales and deployment of “Engineering services” had steady growth.

N u m e r i c a l a n d c o n t r o l

Overall sales of new license has led to sluggish, though renewal sales is back on course for recovery.Expect more sales from Strategic products such as Upstream process design and Validation software for "System LSI” which received a multi-year contract.

E D A

Sales of new license for Illumination design and analysis Software was slightly declined, though renewal sales for the main software had steady growth.O p t i c a l / I l l u m i n a t i o n

Overall sales of new license has led to sluggish, though renewal sales and business deployment of Engineering Services preserved similar performance with the same period of last year.M e c h a n i c a l

CAE Solution Services


45.0% 42.0% 39.3%31.7%

45.2% 40.3% 38.6%

1.9% 3.8%

26.3%18.8%

15.2% 23.8%

25.0%17.2% 16.9%

8.6%11.9%

12.6% 9.0%

8.0%

11.3% 12.0%

2.5%

3.7% 8.9%2.0%

5.6% 5.5%

5.2%

5.6%5.8% 4.3%

3.9% 5.5%

12.3% 11.1%19.2% 13.9% 13.4% 17.2% 17.2%

4.3%4.4%6.9%

2.1%4.5%

7.2%3.4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1Q( 4- 6)

2Q( 7- 9)

3Q(10-12)

4Q( 1- 3)

1Q( 4- 6)

2Q( 7- 9)

3Q(10-12)

4Q( 1- 3)

Mechanical system Numerical and Control Optical system Circuit design Visualization Others IT solution

［Non-consolidated］Net Sales by Business Line

FY2011 FY2012

* Effective from this term, we made “ Visualization” independent from “Mechanical system” category and also moved some of “Mechanical system” to “Others” category and reflected it in this report.


45.0% 43.7% 42.5% 39.5% 45.2% 43.2% 42.0%

1.9% 2.7%

26.3% 23.1% 20.9% 21.8%25.0% 21.9% 20.5%

8.6%10.0% 10.7% 10.2%

8.0%9.3% 10.1%

2.5%4.3% 5.6% 2.0% 3.5% 4.0%

4.2% 4.6% 4.9% 4.3% 4.1% 4.5%

12.3% 11.8% 13.8% 13.8% 13.4% 14.9% 15.5%

3.4%3.2% 4.2%2.1% 3.1%

4.5%3.4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1Q( 4- 6)

2Q( 4- 9)

3Q（4-12）

4Q（4-3）

1Q( 4- 6)

2Q( 4- 9)

3Q（4-12）

4Q（4-3）

Mechanical system Numerical and Control Optical system Circuit design Visualization Others IT solution

FY2011 FY2012

［Non-consolidated］(Cumulative) Net Sales by Business Line

* Effective from this term, we made “ Visualization” independent from “Mechanical system” category and also moved some of “Mechanical system” to “Others” category and reflected it in this report.


［Non-consolidated］Net Sales by Category of Industry

FY 2011 FY 2012

38.4% 33.8% 28.4% 27.6%36.7% 33.1% 27.9%

20.1%19.3%

20.3% 17.5%

20.3%19.7%

20.9%

7.9%8.2%

8.1% 11.7%

7.4% 9.5%9.1%

8.5%10.6%

7.5% 12.9%11.2% 8.7% 10.5%

11.3% 11.2%17.5% 13.7%

10.4%11.8% 13.4%

18.2%17.2%14.0%16.6%18.2%16.9%13.8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1Q(4-6)

2Q(7-9)

3Q(10-12)

4Q(1-3)

1Q(4-6)

2Q(7-9)

3Q(10-12)

4Q(1-3)

Electrical equipment Machinery & Precision machinery

Transportation equipment Education & Research institution Telecommunication industry Others


［Non-consolidated］(Cumulative) Net Sales by Category of Industry

FY 2011 FY 2012

38.4% 36.4% 34.2% 32.3% 36.7% 35.3% 33.2%

20.1% 19.7% 19.9% 19.2%20.3% 20.0% 20.3%

7.9% 8.1% 8.1% 9.1%7.4% 8.2% 8.5%

8.5% 9.4% 8.9% 10.0%11.2% 10.2% 10.3%

11.3% 11.3% 12.9% 13.2% 10.4% 11.0% 11.6%

16.1%15.3%14.0%16.2%16.0%15.1%13.8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1Q(4-6)

2Q(4-9)

3Q(4-12)

4Q(4-3)

1Q(4-6)

2Q(4-9)

3Q(4-12)

4Q(4-3)

Electrical equipment Machinery & Precision machinery

Transportation equipment Education & Research institution Telecommunication industry Others


28.3%

47.0%40.1%

49.9%

29.9%44.3% 42.9%

71.7%

53.0% 59.9%50.1%

70.1%55.7% 57.1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1Ｑ( 4- 6)

2Ｑ( 7- 9)

3Ｑ(10-12)

4Ｑ( 1- 3)

1Ｑ( 4- 6)

2Ｑ( 7- 9)

3Ｑ(10-12)

4Ｑ( 1- 3)

New contract Renewal

FY 2011 FY 2012

［Consolidated］Net Sales by ContractEffective from this term, we included part of new/renewal hardware sales in this figure.


28.3%36.1% 37.2% 40.5%

29.9% 35.6% 37.5%

71.7%63.9% 62.8% 59.5%

70.1% 64.4% 62.5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1Ｑ( 4- 6)

2Ｑ( 4- 9)

3Ｑ(4-12)

4Ｑ( 4- 3)

1Ｑ( 4- 6)

2Ｑ( 4- 9)

3Ｑ(4-12)

4Ｑ( 4- 3)

New contract Renewal

FY 2011 FY 2012

［Consolidated］(Cumulative) Net Sales by Contract

Effective from this term, we included part of new/renewal hardware sales in this figure.


Transition of the number of employees

353 358 357 356 357 365 364 366

140164 164 164 165 175 174 177

0

100

200

300

400

500

600

FY2010 4Q FY2011 1Q FY2011 2Q FY2011 3Q FY2011 4Q FY2012 1Q FY2012 2Q FY2012 3Q

Non-consolidated Consolidated

522 521 520

number

522 540 538 543493


Projection of Results for FY2012


[Consolidated] FY2012 Forecast

(2)FY2012 currency hedge status: 84% of product cost that is in foreign currency are reserved approximatelyJPY78/USD average.

(1) FY2012 Exchange rate for beginning of term result forecast is JPY84.0 per USD.Result forecast

Millions of yen

Y-o-Ydifference

Net sales 13,613 14,000 102.8%Gross profit 5,762 5,634 97.8%

ratio 42.3% 40.2% (2.1P)Operating income 631 697 110.3%

ratio 4.6% 5.0% ＋ 0.3POrdinary income 698 750 107.3%

rato 5.1% 5.4% ＋ 0.2PIncome before tax 736 714 96.9%

ratio 5.4% 5.1% (0.3P)Net income 300 385 128.2%

ratio 2.2% 2.8% ＋ 0.5P

FY2012FFY2011

Full Year


70.5%963.95

680

Annualdividends

FY2011 FY2012(Forecast)

84.2%－－Dividend payout ratio

1,235.63－－Net income per share

1,040520520 Dividend per share

Annualdividends

Year-enddividends

Interimdividends

Yen

Forecasted Dividends for FY2012

[Reference]Number of shares outstanding at end of period (including treasury stock) : 324,000Number of treasury stock at end of period : 12,417


[Non-consolidated] FY2012 Forecast

(2)FY2012 currency hedge status: 84% of product cost that is in foreign currency are reserved approximatelyJPY78/USD average.

(1) FY2012 Exchange rate for beginning of term result forecast is JPY84.0 per USD.Result forecast

Millions of yen

Y-o-Ydifference

Net sales 11,904 12,200 102.5%Gross profit 4,900 4,589 93.6%

ratio 41.2% 37.6% (3.5P)Operating income 1,044 940 90.0%

ratio 8.8% 7.7% (1.1P)Ordinary income 1,068 940 88.0%

rato 9.0% 7.7% (1.3P)Income before tax 1,106 904 81.7%

ratio 9.3% 7.4% (1.9P)Net income 586 560 95.5%

ratio 4.9% 4.6% (0.3P)

Full Year

FY2011 FY2012F

Reference


Company Name : CYBERNET SYSTEMS CO., LTD. (Stock code: 4312, the First Section of Tokyo Stock Exchange)

Head Office : Fuji Soft Bldg., 3, Kanda Neribei-cho, Chiyoda-ku, Tokyo 101-0022Branch Offices : Nishi-Nihon Branch Office in Osaka and Chubu Branch Office in Nagoya Founding date : April 17, 1985 Capital : 995 million yen (as of December 31, 2012)Number of Employees : Consolidated / 543, Non-Consolidated / 366 Subsidiaries & affiliates :

Consolidated / Waterloo Maple Inc.Noesis Solutions NVCYBERNET CAE SYSTEMS (Shanghai) CO., LTD. Sigmetrix, L.L.C.CYBERNET HOLDINGS CANADA, INC. (Special Purpose Company)Cybernet Systems Holdings U.S. Inc. (Special Purpose Company)

Non-Consolidated / CYBERNET SYSTEMS TAIWAN CO., LTD.Cybernet Systems Korea Co., LTD.

Software Vendors : 20 software companies mostly in the US, including ANSYS, Inc. Synopsys, Inc.and Cadence Design Systems, Inc., and so on.

Business : Providing CAE and IT solutions, as well as professional services including consulting

CAE stands for “Computer Aided Engineering”

Corporate Overview


Cybernet Group

Japan

Asia

CAE solutionIT Solution

MarketCooperate in control, IT field

FUJISOFT Group

CAE Solution

CAE Development SubsidiariesSales Subsidiaries

Cybernet Group

Europe and NA

CYBERNET China

CYBERNET Taiwan

Direct sales and sales through WW distributors (partners)

CAE Solution

CYBERNET Korea CAE Solution

Direct sales locations: NA, German, France

Direct sales location: NA

Direct sales locations： Belgium, NA, France

■ Public Relations DepartmentAddress: Fuji Soft Bldg., 3, Kanda Neribei-cho, Chiyoda-ku, Tokyo 101-0022, JapanTEL.: +81-3-5297-3066FAX.: +81-3-5297-3609E-mail: [email protected]: http://www.cybernet.co.jp

These materials are prepared for the sole purpose of providing information as a reference to investors in making investment decisions, and are not intended as a solicitation for investment. These materials were created from data obtained through our operations. We make no guarantees, however, with respect to integrity. In addition, the opinions and predictions provided in these materials relate to the Company’s outlook at the time the materials were prepared. No guarantees whatsoever extend to any outcomes over the use of such opinions or predictions.The contents of these materials are subject to change without notice. Investors are requested to use their own judgment in making any final decisions regarding investments.

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Consolidated Financial Results for the Third Quarter of ... · Consolidated Financial Results for the Third Quarter of the Year Ending March 31, 2013