FY2019
Financial Results Briefing Document
V-cube, Inc.
February 12, 2020
Copyright © V-cube, Inc. All Rights Reserved.
Index
1. Current Initiatives
- FY2019 Results
- Segments and KPIs
- FY2020 Forecast
- Appendix
Copyright © V-cube, Inc. All Rights Reserved.
Highlights
Opportunities for the unprecedented spread of telework
FY2019
- Net sales increased 10.6% YoY (excluding divested business)
- Operating profit was in the Red due to conducting Mass Marketing (No plan in 2020)
- Fully impaired China-related business, no negative impact expected in the future
・Cannot be recorded due to delayed sales receipt of sold services
(approx. 200 million yen)
- FY2020 and beyond are not included in the sales and profit plan.
- Only royalty income from distributors' sales in the future
⇒FY2020 will make a positive contribution
FY2020
- Progress in realigning and investing in growth areas, with clear contributions to 2020 (P.11)
- Operating profit target is 900 million yen, and the forecast is 500 million yen.
- FY2019 Dividend forecast 1 JPY unchanged. Aim for a dividend payment ratio of 20%
Copyright © V-cube, Inc. All Rights Reserved. | 3 |
1. Current Initiatives
2. FY2019 Results
- Segments and KPIs
- FY2020 Forecast
- Appendix
Copyright © V-cube, Inc. All Rights Reserved.
Necessary for wider use of telework
Culture | System | Tools | Location |
・ Leadership | ・ Employment | ・ Web conferencing | ・ Share office |
Regulations | |||
・ Pressure from | ・ Chat tools | ・ Satellite office | |
・ Evaluation System | |||
the employment | |||
・ Security Tools | ・ Telecommuting | ||
environment | ・ Telework rules | ||
environment | |||
・ Social pressures | ・ 4G, 5G line | ||
・ Telecube | |||
・ Awareness of the need | ・ Electronic approval | ||
- Olympics | system | ||
- Frequent occurrence | ・ Groupware | ||
of disasters such as | |||
typhoon | |||
- Epidemics of infection |
Previously the tools were relatively complete, but the other 3 were in short supply
Copyright © V-cube, Inc. All Rights Reserved. | 5 |
Social Environment (Telework Wave)
Decided on the implementation policy of "Telework Days 2020" on January 29, 2020
Calling for the Implementation of Telework, Government-led National Campaign for Work Style Reform
- Implementation period: from July 20th 2020 to September 6th 2020
- Period of Olympic games is the "Period for Concentrating Enterprises in Tokyo"
- Approximately 680 thousand participants from 2,887 organizations in 2019
- Aiming for participation by more than 3,000 organizations in 2020
- Encourage telework, satellite offices, holidays, staggered commuting, etc.
Culture System
"Smooth Biz" | (Since 2017, V-cube has been participating as a special cooperative group |
by the Tokyo Metropolitan Government | (with more than 100 participants at the same time). |
As 1 of the 3 initiatives
Promoting the Establishment of Telework
⇒Increasing momentum
for telework toward summer
Copyright © V-cube, Inc. All Rights Reserved. | 6 |
Launch of telework introduction support service (release on February 12.2020)
As a countermeasure against the spread of new coronavirus infections
Support for introduction of telework to companies and organizations that embark on new
introduction of telework and environmental improvement
System Tools
【Target】
All companies and organizations considering the introduction of telework
【Services provided】
Telephone and online consultation desks for the introduction of new
telework systems
Provision of various tools for realizing telework
Introduction to Telework Usage Guidelines
Copyright © V-cube, Inc. All Rights Reserved. | 7 |
Telecube, Killer Products for Telework
Launched the subscription model. | Location |
Large-scale commercials were conducted on television and taxis at | |
the end of 2019.
For 1 person
69,800 yen~/month
For 2 persons
100,800 yen~/month
TelecubeCo.Ltd | JR East |
Image of installation at office lobby | STATION BOOTH image |
https://telecube.jp/ | https://www.stationwork.jp/ |
Copyright © V-cube, Inc. All Rights Reserved. | 8 |
Feedback of Mass Advertising, Including TVCM
Satoshi Ikematsu, an actor of Japan, passionately performs a moderately-sized salaried worker!? On-air service started on December 1st, on the "Telecube" TVCM, which solves "Shortage of meeting room issues" in offices.
- A lot of empathy for the "shortage of meeting rooms" defined in TVCM.
Effects of mass advertising
- Number of visits to websites : 219% YoY
- Number of prospective online customers : 141% YoY
- Number of Telecube business negotiations :
337% compared to before TVCM and the end of January 2020
- Acceleration of business negotiations due to widespread recognition of partner candidates among large corporations and government agencies
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Telecube's Business Deployment
The number of units installed increased significantly from FY2019.3Q level.
In Telecube for public spaces, only 65 units were installed due to location adjustments, but preparations for full-
scale installation in 2020 progressed as planned.
Progress in installing Telecube for public spaces
October. 2019
Telecube 2019 Total number of installed units
- Seibu Railway "Takadanobaba Station" "Tokorozawa Station"
November• Odakyu Railway. 2019"Machida Station" "Kyodo Station"
- Sanno Park Tower (directly connected to Tameike Sanno Station)
December. 2019
- Tobu Railway " Kita-Senju Station"
January. 2020
- Toyosu Foresia, Toyosu Front (Toyosu area)
- Shiodome Building (Shinbashi/Hamamatsu-cho area)
- Kitanomaru Square (Kudan Area)
February. 2020
- Shinjuku Front
- Shinjuku East Side Square
(Units)
400
350
300
250
200
150
100
50
0
65
50
For the public sector
For companies
13319
3228
148
105
FY19.1Q | FY19.2Q | FY19.3Q | FY19.4Q |
Copyright © V-cube, Inc. All Rights Reserved. | 10 |
Growth by Focus Area in 2020
General web conferencing (general purpose web | Video communication services specializing in specific applications | ||
conferencing) and video conferencing | "V-cube for Video Utilizing the Video Business" | ||
V-CUBEmeeting
Image embedding (SDK)
Provide API/SDK to meet the
demand for videos in various
industries, and develop business
jointly.
(Education/Social/Medical, etc.)
Pharmaceutical
website seminars, etc.
Distribution of web seminars in the pharmaceutical industry. Developed a system for remote detailing, on-line medical care, and medication guidance.
Emergency measures
and disaster
countermeasures
Emergency measures, disaster
countermeasures, and field
support solutions.
Copyright © V-cube, Inc. All Rights Reserved.
LMS/TMS
11
Growth by Focus Area in 2020 | ||||
General web conferencing | Video communication service specializing in specific applications | |||
(general purpose web conferencing) and video conferencing | ||||
"V-cube for Video Utilizing the Video Business," | ||||
Sales :2,726→2,978
MP(marginal profit): 2,103 → 2,021
V-CUBEmeeting
Sales :297→164
MP: 69 → 57
Sales :90→236 | Sales :807→1,217 | Sales :307→545 | |||
MP: 90 → 228 | MP: 653 → 975 | MP: 204 → 335 | |||
Image embedding
(SDK)
Provide API/SDK to meet the
demand for videos in various
industries, and develop business
jointly.
(Education/Social/Medical, etc.)
Pharmaceutical | Emergency measures |
website seminars, etc. | and disaster |
Distribution of web seminars in the | countermeasures |
pharmaceutical industry. Developed |
a system for remote detailing, on- | Emergency measures, disaster |
rcountermeasures, and field support | |
line medical care, and medication | |
solutions. | |
guidance. | |
Sales :526→632 | Sales 496→1,664 |
MP: 439 → 553 | MP 176 → 488 |
Copyright © V-cube, Inc. All Rights Reserved.
Sales :153→214 | Sales 324 → 380 |
MP: 87 → 144 | MP 292→ 344 |
LMS/TMS |
12
1. Current Initiatives
- FY2019 Results
- Segments and KPIs
- FY2020 Forecast
- Appendix
Copyright © V-cube, Inc. All Rights Reserved.
2. FY2019 Results: Consolidated P/L (Pro forma basis) | ※ | ※ Pro forma: Reference values for explanation |
Net sales excluding divested businesses increased YoY.
Cost of sales increased significantly due to expansion of Appliance business.
Operating profit is in the black excluding mass advertising expenses.
FY2018 | FY2019 | YoY | |||
(million yen) | |||||
Full year | Full year | Change | Rate of change | ||
Net sales | 5,580 | 6,172 | +592 | +10.6% |
Cost of sales | 2,904 | 3,669 | +765 | +26.3% |
Gross profit | 2,676 | 2,504 | △173 | △6.5% |
SG & A Exp. | 2,522 | 2,755 | +233 | +9.2% |
Operating profit | 154 | △252 | △406 | - |
Ordinary profit | 120 | △310 | △430 | - |
Profit attributable to owners of parent | 466 | 45 | △421 | △57.1% |
- For Y-o-Y comparison, the following adjusted pro forma P/L is presented.
- Excluding net sales and operating profit from divested businesses (smart board service business, iStudy, Indonesian subsidiary)
- Excluding impairment loss on China and Hong Kong business
- Adjustments to transfer personnel and other costs to cost of sales and SG & A expenses due to reorganization
- Impact of adoption of new revenue recognition rules: △158 mil JPY for net sales and △123 mil JPY for operating profit
Copyright © V-cube, Inc. All Rights Reserved. | 14 |
※
2. FY2019 Results: Breakdown of Changes in Net Sales (Pro forma basis) ※ Pro forma: Reference values
for explanation
Net sales excluding divested businesses grew in Visual Communication business and Appliance business such as "Telecube","V-CUBE Box",etc, despite impact of adoption of new revenue recognition rules and sluggishness in overseas businesses.
Increase in sales of | ||
※ 2 | ||
VC business,etc. | ||
(Unit:Million Yen) | ||
Increase in sales of | △167 | |
Appliance business | 216 | |
Decrease of | ||
337 | sales in | |
Wizlearn | ||
Increase of | ||
Impact of | sales related | |
adoption of | Telecube | |
new | ||
revenue |
recognition | |
rules | 365 |
△158 | 6,172 |
5,580
FY2018 | FY2019 |
Net sales | Net sales |
- The Figures are comparisons excluding divested businesses (smart board service business, iStudy, Indonesian subsidiary).
Copyright © V-cube, Inc. All Rights Reserved. | 15 |
2. FY2019 Results: Breakdown of Changes in Operating Profit (Pro forma basis)※
Growth in Visual communication business and Appliance business contributed to increase marginal profit. Operating profit declined due to impact of adoption of new revenue recognition rules, temporary royalty
expenses, and mass advertising expenses.
△123
290
Impact of
adoption of
new
revenue
recognition
※ Pro forma: Reference values for explanation
(Unit:Million Yen)
Lump-sum
recording of
royalties
Mass
△238 |
advertising |
expenses |
Increase of
marginal
154 profit of
Parent
company
FY2018
Operating
profit
rules
Decrease of | FY2019 | ||
Operating | |||
△257 | profit in | ||
profit | |||
overseas | |||
business | |||
△78 | △252 | ||
- The figures are comparisons excluding divested businesses (smart board service business, iStudy, Indonesian subsidiary).
Copyright © V-cube, Inc. All Rights Reserved. | 16 |
2. FY2019 Results: Consolidated B/S
B/S shrank overall due to deconsolidation following divestment of iStudy and repayment of debts.
Equity ratio rose from 35.0% to 43.2%.
(million yen) | December 31, 2018 | December 31, 2019 | Change |
Current assets | 5,059 | 2,269 | △2,790 |
Cash and deposits | (2,732) | (790) | (△1,942) |
Fixed assets | 5,525 | 4,733 | △792 |
(Software) | (2,507) | (2,025) | (△482) |
(△232) | |||
(Goodwill) | (1,111) | (879) | |
Total assets | 10,585 | 7,002 | △3,583 |
Current liabilities | 4,021 | 2,248 | △1,773 |
(Short-term debt, current portion of long- | (1,815) | (546) | (△1,269) |
term debt) | |||
Long-term liabilities | 2,033 | 1,705 | △328 |
(Long-term debt) | (2,003) | (1,663) | (△340) |
Net assets | 4,530 | 3,049 | △1,481 |
Short-term loan and current portion of long-term loan: 1,570 mil JPY as at June 30, 2019, 1,233 mil JPY as at September 30, 2019, and 546 mil JPY as at
December 31, 2019
Copyright © V-cube, Inc. All Rights Reserved. | 17 |
2. FY2019 Results: Consolidated C/F
Investing C/F: Purchase of property, plant and equipment by relocation of head office, establishment of
Telecube services for affiliated companies, etc.
Financing C/F: Reduction of interest-bearing debt
(million yen) | December 31, 2018 | December 31, 2019 | ||
Operating C/F | 963 | 373 | ||
Investing C/F | △558 | △746 | ||
Financing C/F | △1,035 | △1,581 | ||
Free cash flow | 405 | △373 | ||
Effect of exchange rate change on | △28 | △1 | ||
cash and cash equivalents | ||||
Net increase/decrease in cash and | △658 | △1,930 | ||
cash equivalents | ||||
Cash and cash equivalents | 2,719 | 790 | ||
at the end of period | ||||
Copyright © V-cube, Inc. All Rights Reserved. | 18 | |||
2. FY2019 Results: Progress of "Selection and Concentration" and Impact on Business
Continuously review the business portfolio and improve profitability
Item | Smart board | iStudy Co.Ltd. | Indonesia | China business | ||||||
service business | Subsidiariy | |||||||||
Time of | FY2018.4Q | FY2019.1Q | FY2019.3Q | FY2019.2Q | FY2019.4Q | |||||
implementation | ||||||||||
• | Sale the business | • | Sale of share | • | Sale of share | • Impairment loss on | ||||
• | Exclusion from | • Impairment loss on | ||||||||
Contents | • | For FY2019, only | consolidation at | • | Exclusion from | software for a | investment in a Hong | |||
order backlog in | consolidation since | Kong company operating | ||||||||
the end of FY2019 | Chinese automaker | |||||||||
the previous year. | FY2019 3Q | in China | ||||||||
1Q | ||||||||||
Impact | Learning management | Visual | Visual | Visual | ||||||
Appliance business | Communications | Communications | ||||||||
Segment | system business | Communications Business | ||||||||
Business | Business | |||||||||
Impact on | 1,558 mil JPY | Decrease of 519 mil | Immaterial | N/A | N/A | |||||
Net sales | (FY2018 results) | JPY in FY2019 2Q~4Q | ||||||||
Impact on | 77 mil JPY | |||||||||
operating | Elimination of deficit | Elimination of deficit | N/A | N/Al | ||||||
(FY2018 Results) | ||||||||||
profit | ||||||||||
Copyright © V-cube, Inc. All Rights Reserved. | 19 | |||||||||
2. FY2019 Results: Returns to Shareholders
Measures to increase shareholder returns
(Starting dividends, introducing special gifts for shareholders which can use Telecube in the city, and
conducting stock buy-back)
• | FY2019 year-end dividend: 1 yen per share | ||
Dividend | • | Aiming for a dividend payout ratio of 20% against profit attributable to owners of | |
parent excluding 1-time profit, in the future aiming for a dividend payout ratio of 30% | |||
Shareholder
- Gift of 10,000 yen for Telecube use coupons
(For shareholders with 100 shares or more as of the end of December)
benefits | • Scheduled to be delivered in late March |
Stock buy-
buck
- Period of acquisition: June 3 to July 18, 2019 (completed)
- Total number of shares acquired: 177,700 shares
- Total acquisition cost: 99,954,300 yen
Copyright © V-cube, Inc. All Rights Reserved. | 20 |
(Reference) 2. FY2019 Results: Consolidated P/L (Financial Accounting Figures)
Net sales decreased mainly due to adoption of new revenue recognition rules and separation of businesses such as the sale of
subsidiary iStudy.
SG&A expenses include mass advertising expenses of 257 million yen.
Profit attributable to owners of parent was in the black due to the contribution from gains on sales of subsidiaries and other factors.
FY2019 | |||||
FY2018 | FY2019 | YoYProfit | Forecast | ||
(Announced on | |||||
(million yen) | October. 25) | ||||
Full-year | Full-year | Change | Rate of | Full year | |
change | |||||
Net sales | 7,960 | 6,369 | △1,591 | △19.9% | 6,550 |
Cost of sales | 4,550 | 4056 | △494 | △10.8% | 3,917 |
Gross profit | 3,410 | 2,313 | △1,097 | △32.1% | 2,633 |
SG & A Exp. | 3,065 | 2,598 | △467 | △15.2% | 2,578 |
Operating profit | 345 | △284 | △630 | ー % | 0 |
Ordinary profit | 259 | △341 | △601 | ー % | △62 |
Profit attributable to | 456 | 34 | △421 | △92.5% | 372 |
owners of parent | |||||
- P14 2. FY2019 Results: Consolidated P/L (Pro forma) Reference Materials
- Impact of adoption of new revenue recognition rules: △ 158 mil JPY for net sales, △ 123 mil JPY for operation profit
Copyright © V-cube, Inc. All Rights Reserved. | 21 |
1. Current Initiatives
- FY2019 Results
- Segments and KPIs
- FY2020 Forecast
- Appendix
Copyright © V-cube, Inc. All Rights Reserved.
3. Segments and KPIs: Adoption of new revenue recognition rules (from FY2019)
Sales are postponed from previous revenue recognition. Over the long term, sales are the same.
- Previously, the amount equivalent to the license was recorded at the time of the contract for a term-based cloud service, and the amount equivalent to the maintenance and infrastructure costs was recorded proportionately according to the contract period. Accounted for in full from FY2019 on a straight-line basis over the term of the contract
Impact of Adoption of new Revenue Recognition rules (Image)
< Previous revenue > | < Revenue after the change > | |||||||||||||||||||||||||||||||||||||||||||||||
Start | Start | |
Contract period | Contract period | |
- When we act as an agent to provide our customers with the goods and services of other companies, the amount obtained by offsetting the so-called sales amount against the cost of sales is recorded as sales.
Copyright © V-cube, Inc. All Rights Reserved.
3. Segments and KPIs: Segment changes (from FY2019)
Segments are divided into three categories in order to strengthen the management system and allocate
management resources more optimally.
Supplemental | |
category by type | |
Visual | of sales |
Cloud | |
Communication | |
62% | |
On-premises | |
Service | 9% |
Appliances | |
Business | |
23% | |
Others | |
6% |
* Each percentage shows a composition to sales of FY18
Copyright © V-cube, Inc. All Rights Reserved.
Visual Communication Business
[V-cube, Inc.]
V-CUBE Meeting, V-CUBE Seminar, Prime, Agora.io, Qumu
[iStudy Co., Ltd.] Qumu (until 1Q 2019)
[V-cube USA, Inc.] V-CUBE Seminar
[V-cube Global Services Pte. Ltd. (incl. V-cube (Thailand) Co., Ltd. and PT. V-CUBE INDONESIA)] V-CUBE Services
Learning management system Business
[iStudy Co., Ltd.] LMS、iStudy Academy (until 1Q 2019) [Wizlearn Technologies Pte. Ltd.] AsknLearn
Appliances Business
[V-cube, Inc.] [Group Companies]
V-CUBE Box、TELECUBE, Microphones, Speakers, Headsets, etc.
3. Segments and KPIs: Segment Overview
Operating profit margin deteriorated due to impact of adoption of new revenue recognition rules, mass advertising expenses, and recording royalties in one lamp sum in Visual Communication business.
Appliance business profitability improved due to growth in highly profitable products.
FY2018 | FY2019 | YoY | FY2019 | |||||||||
(million yen) | Full-year | Full-year | Change | Rate of | Full-year forecast | |||||||
(Announced on | ||||||||||||
change | ||||||||||||
October. 25) | ||||||||||||
Visual | Net sales | 4,132 | 4,068 | △64 | △1.5% | 4,270 | ||||||
Communications | OP | 580 | 274 | △306 | △52.8% | 589 | ||||||
Business | (margin) | (14.0%) | (6.7%) | (13.8%) | ||||||||
Learning | Net sales | 1,776 | 1,051 | △725 | △40.8% | 1,040 | ||||||
Management System | OP | 99 | △13 | △112 | - | 23 | ||||||
Business | (margin) | (5.6%) | (-%) | (2.2%) | ||||||||
Appliance | Net sales | 2,051 | 1,250 | △801 | △39.1% | 1,240 | ||||||
OP | 66 | 131 | 118 | |||||||||
Business | +65 | +98.5% | ||||||||||
(margin) | (3.3%) | (10.5%) | (9.5%) | |||||||||
Corporate epenses | Net sales | - | - | - | - | - | ||||||
(including mass | OP | △401 | △677 | △276 | - | △730 | ||||||
advertising expenses) | (margin) | (-%) | (-%) | (-%) | ||||||||
Net sales | 7,960 | 6,369 | △1,591 | △19.9% | 6,550 | |||||||
Total | OP | 345 | △284 | △630 | - | 0 | ||||||
(margin) | (4.3%) | (-%) | (0.0%) | |||||||||
Impact of adoption of new revenue recognition rules: Net sales △ 158 mil JPY, Operating profit △123 mil JPY | ||||||||||||
(Breakdown) Visual communication business: Net sales △88 mil JPY, Operating profit △88 mil JPY, | ||||||||||||
Learning management system business: Net sales △2 mil JPY, Operating profit △ 2 mil JPY | ||||||||||||
Appliance business: Net sales △69 mil JPY, Operating profit | △33 mil JPY | |||||||||||
Copyright © V-cube, Inc. All Rights Reserved. | 25 | |||||||||||
3. Segments and KPIs: Visual communication business
Although segment sales accounted for 95% of the full-year forecast due to the failure to record approximately 200 million yen in sales in China, in Japan, the distribution of seminars and On-premises are driving sales growth.
Subscription-type sales increased YoY
FY2018 | FY2019 | YoY | FY2019 | |||
(million yen) | Rate of | Full-year | ||||
forecast | ||||||
Full-year | Full-year | Change | ||||
change | (Announced on | |||||
October. 25) | ||||||
Net sales | 4,132 | 4,068 | △64 | △1.5% | 4,270 | |
Operating profit | 580 | 274 | △306 | △52.8% | 589 | |
(Ratio) | (14.0%) | (6.7%) | (13.8%) | |||
Subscription-type sales (annual)
(million yen) | Monthly subsc. | Annual subsc. | |||||
3,500 | |||||||
3,068 | 3,212 | ||||||
3,000 | 2,849 | ||||||
2,559 | 1,022 | 1,192 | |||||
2,500 | |||||||
2,306 | 835 | ||||||
593 | |||||||
2,000 | 406 | ||||||
1,500
1,000 | 1,900 | 1,966 | 2,014 | 2,046 | 2,020 |
500 | |||||
0 | |||||
FY15 | FY16 | FY17 | FY18 | FY19 | |
[Major factors for change]
Annual subscription
Pharmaceutical Industry seminar distribution projects increased steadily, contributing to overall growth
Monthly subscriptions
Pharmaceutical projects with large sales shifted from
FY19.2Q to annual revenue
- Impact of adoption of new revenue recognition rules: Net sales △88 mil JPY, Operating profit △88 mil JPY, Lump-sum recording of royalties of 238 mil JPY affected the cost of sales
Copyright © V-cube, Inc. All Rights Reserved. | 26 |
3. Segments and KPIs: KPIs in Visual communication business
Monthly subscription is flat. Churn rate remained at the assumed level.
In 4Q large accumulation of annual subscriptions responding flexibly to the seminar distribution needs of the pharmaceutical industry.
Monthly subscription KPI
Average monthly billing unit price (thousand yen)
FY14 | FY15 | FY16 | FY17 | FY18 | FY19 | FY19 | FY19 | FY19 | |
1Q | 2Q | 3Q | 4Q | ||||||
139 | 137 | 134 | 137 | 141 | 140 | 139 | 137 | 136 | |
Number of billing companies
FY14 | FY15 | FY16 | FY17 | FY18 | FY19 | FY19 | FY19 | FY19 |
1Q | 2Q | 3Q | 4Q |
Subscription-type sales (quarterly)
(million yen)
monthly subsc | annual subsc |
1,000
800 | ||||||
287 | 322 | 274 | 347 | |||
600 | 289 | 203 | 243 | 258 | ||
1,065 | 1,155 | 1,225 | 1,228 | 1,211 | 1,218 | 1,210 | 1,216 | 1,215 |
Churn rate (%)
FY14 | FY15 | FY16 | FY17 | FY18 | 18/4~ | 18/7~ | 18/10 | 19/1 | |
19/3 | 19/6 | ~19/9 | ~12 | ||||||
19.0 | 16.9 | 13.7 | 14.4 | 12.2 | 12.4 | 11.0 | 10.5 | 10.7 | |
Toward FY2020
Billing price | Number of billing companies |
400
200
0
469 515 525 536 513 494 504 510
Seminars for the pharmaceutical
Strengthen treatment to existing | Low-cost customer acquisition |
customers, which are seeing | through online sales |
increasing use | |
Early transition of Meeting Plaza customers
Annual
industry, etc.
subscription
Account plans for the use of events
Monthly
Monthly subscriptions and long-
subscriptions
term contracts for more than half a year
Copyright © V-cube, Inc. All Rights Reserved. | 27 |
3. Segments and KPIs: Learning management system business
Achieved full-year sales forecast, with operating income negative including iStudy, a subsidiary that has
been sold
Wizlearn: Stop the decline in sales to schools and strengthen sales and R&D to grow sales to companies
FY2018 | FY2019 | YoY | FY2019 | |||
(million yen) | Rate of | Full-year | ||||
forecast | ||||||
Full-year | Full-year | Change | ||||
change | (Announced on | |||||
October. 25) | ||||||
Net sales | 1,776 | 1,051 | △725 | △40.8% | 1,040 | |
(iStudy | 1,168 | 930 | △239 | △20.4% | ||
Excluding sales) | ||||||
Operating profit | 99 | △13 | △112 | △113.1 % | 23 | |
(Ratio) | (5.6%) | (-%) | (2.2%) | |||
(Thousand
SGD) | LMS Transition of sales breakdown in Asia | ||||||||||||
14,000 | |||||||||||||
12,000 | |||||||||||||
10,000 | |||||||||||||
8,000 | |||||||||||||
6,627 | 6,491 | 5,124 | |||||||||||
6,000 | |||||||||||||
4,000 | |||||||||||||
2,000 | 3,120 | 3,655 | 4,053 | ||||||||||
0 | |||||||||||||
2017 | 2018 | 2019 | |||||||||||
Corporate LMS | School LMS | Regional | Support | ||||||||||
Copyright © V-cube, Inc. All Rights Reserved.
[Major factors for change]
- Sale of iStudy in April 2019
Consolidated in 1Q, non-consolidation after
- Wizlearn (Singapore subsidiary)
For schools: Although sales fell sharply due to the government's shift to in-house production, have stopped declining and revenue continues from the next year onward.
For companies: Acquire content creation and
customization projects
28
3. Segments and KPIs: Appliance business
Achieved full-year sales and operating profit forecasts due to business expansion of "Telecube" and growth
of "V-CUBE Box"
FY2018 | FY2019 | YoY | FY2019 | |||
(million yen) | Rate of | Full-year | ||||
Forecast (as | ||||||
Full year | Full year | Change | ||||
change | of October. | |||||
25) | ||||||
Net sales | 2,051 | 1,250 | △801 | △39.1% | 1,240 | |
(Net sales excluding | 492 | 1,196 | +703 | +143.0% | ー | |
Smart board ) | ||||||
Operating profit | 66 | 131 | +65 | 98.5% | 118 | |
(Ratio) | (3.3%) | (10.5%) | (9.5%) | |||
Number of Telecube installations
(Units)
400
Target 400 units
300
200
345
Actual
100
73
0 11
FY2017 FY2018 FY2019
Actual Actual Actual
[Major factors for change]
- Profitability improved due to the transfer of smart board service business.
-
Telecube
117 units installed in 3Q and 106 units in 4Q - Increased sales of V-CUBE Box and related equipment
Capturing demand for video conferencing replacement throughout the year
Copyright © V-cube, Inc. All Rights Reserved. | 29 |
1. Current Initiatives
- FY2019 Results
- Segments and KPIs
- FY2020 Forecast
5. Appendix
Copyright © V-cube, Inc. All Rights Reserved.
4. FY2020 Forecast (Financial Accounting Figures)
FY2020 business forecast is 7.2 billion yen for net sales and 0.5 billion yen for operating profit.
Easy to compare with the previous fiscal year due to adoption of new revenue recognition rules from FY2019
FY2019 | FY2020 | YoY | ||||
(million yen) | ||||||
Full-year | Forecast | Change | Rate of change | |||
results | ||||||
Net sales | 6,369 | 7,237 | +868 | +13.6% | ||
Cost of sales | 4,056 | 4,250 | +194 | +4.8% | ||
Gross profit | 2,313 | 2,986 | +673 | +29.1% | ||
SG & A Exp. | 2,598 | 2,486 | △112 | △4.3% | ||
Operating profit | △284 | 500 | +784 | ー % | ||
Ordinary profit | △341 | 359 | +700 | ー % | ||
Profit attributable to owners | 34 | 185 | +151 | △444.1% | ||
of parent | ||||||
Targets: Net sales of 7.8 billion yen and operating income of 0.9 billion yen
Copyright © V-cube, Inc. All Rights Reserved. | 31 |
4. FY2020 Forecast: Full-year Forecast by segments
Visual communication business: growing demand for telework and growth in services utilizing video business
Learning management system business: expect to return to profitability,
Appliance business : expect to continue growing Telecube.
FY2019 | FY2020 | YoY | ||||
(million yen) | ||||||
Full-year | Full-year | Change | Rate of | |||
results | forecast | change | ||||
Visual | Net sales | 4,068 | 4,692 | +624 | +15.3% | |
Communications | OP | 274 | 750 | +476 | +173.7% | |
Business | (margin) | (6.7%) | (16.0%) | |||
Learning | Net sales | 1,051 | 830 | △221 | △21.0% | |
Management System | OP | △13 | 70 | +83 | - | |
Business | (margin) | (-%) | (8.4%) | |||
Appliance | Net sales | 1,250 | 1,715 | +464 | △37.1% | |
OP | 131 | 218 | ||||
Business | +87 | +66.4% | ||||
(margin) | (10.5%) | (12.7%) | ||||
Net sales | - | - | - | - | ||
Corporate xpenses | OP | △677 | △538 | +139 | - | |
(margin) | (-%) | (-%) | ||||
Net sales | 6,369 | 7,237 | +868 | +13.6% | ||
Total | OP | △284 | 500 | +784 | - | |
(margin) | (-%) | (6.9%) | ||||
Copyright © V-cube, Inc. All Rights Reserved. | 32 |
Impact of growth in 2020 by focus areas and products (Summary of Target/ Business Forecast)
Operating profit is expected to be 0.5 billion yen due to growth in focus areas. In particular, targeting operating profit of 0.9 billion yen through further growth in general-purpose web conferencing, On-premises and Telecube.
Segment | Focused Products | Increase in sales | Increase in marginal | Background | ||
(million yen) | profit (million yen) | |||||
Expectations for increased use due to the spread of telework | ||||||
Office-use web conferencing | △50~+252 | △248~△82 | Increasing use and intensifying competition and falling unit prices are | |||
expected. | ||||||
Aiming for survivor profits by withdrawing from domestic and overseas | ||||||
On-premises | +6~+106 | 25~114 | competitors | |||
Expanded alliances centered on NTT Techno Cross | ||||||
VC | SDK embedded in video | +146 | +138 | Needs for embedding images in businesses in various industries | ||
Web seminar for the pharmaceutical | +410 | +322 | Needs for small-scale web seminars are expanding significantly. | |||
industry | We expect growth in both the number of customers and the number of events. | |||||
Sales plus and QUMU | +61 | +57 | Proliferation of online sales | |||
Manual video production within the company | ||||||
LMS | LMS/TMS | +56 | +52 | Provided mainly in Asia. Last year's deficit disappeared in Japan. | ||
Efficient training and e-learning in highly liquid Asian countries | ||||||
Need for video conferencing replacement due to decrease in competition | ||||||
V-CUBE Box | △133 | △12 | Last year, large customers could cause sales to decline in 2020 (cost of sales | |||
to improve) | ||||||
Rapid increase in recognition through mass advertising. Significant growth is | ||||||
AP | Telecube | +568~+1,168 | +132~312 | expected in conjunction with the installation in public areas, which will | ||
become full-fledged in 2020. | ||||||
Emergency measures and disaster | Introduction due to frequent and serious accidents | |||||
countermeasures | +238 | +131 | Integrate, organize, and share information in one location | |||
Total | +1,302~+2,304 | +602~1,032 | ||||
Copyright © V-cube, Inc. All Rights Reserved. | 33 | |||||
Growth impact in 2020 by focus areas and products (Comparison of FY2019 Actual and FY2020 forecast)
Expect operating profit of 0.5 billion in FY2020, excluding 1-time FY2019 factors, with investing in
focus areas
Copyright © V-cube, Inc. All Rights Reserved. | 34 |
4. FY2020 Forecast : Top share in the web conferencing market
Expanding new customer base through alliance with NTT Techno Cross, the fourth largest company in web- conferencing market in Japan
On-premises become blue ocean due to withdrawal of domestic competitors and specialization in Cloud for oversea competitors.
- Alliance with NTT Techno Cross (announced on August 28, 2019)
- Meeting Plaza web-conferencing services terminated
- NTT Techno Cross became a distributor of V-CUBE
Meeting
- Strengths by Japanese made products and On-premises
- Domestic competitors, mainly manufacturers, withdrew
from the Web conferencing market.
- Demand for On-premises is strong, particularly among financial institutions and local governments.
- Global competitors are in principle not compliant with On-premises.
- Added value to Japanese-made services in terms of security due to the international situation (others made in U.S.A. and China)
ASP(SaaSType +
SI(On-premises) type
Others,
29% V-CUBE32%
NTTTechno7%
C, 24%
J, 8%
From Seed Planning, Inc., "Current Status of the Latest Market and Video Communication in 2019 Video | |
Conference/Web Conferencing" | |
Copyright © V-cube, Inc. All Rights Reserved. | 35 |
4. FY2020 Forecast: Telecube
Contributing to the effects of TV commercials and other factors, V-cube aims to grow significantly by 2020. Establish a position as an infrastructure within the current fiscal year, and expand it to use it in areas other than
telework.
For Corporate customers (Actual: 280 units in 2019)
Direct sales
- Utilization in companies
- Lack of conference rooms and use of private space
Sales agency
Sales agency
- Bulk purchase and subscription sales as well as direct sales
- Record royalty income
For public spaces (Actual: 65 units in 2019)
Telecube Service,Inc.
- Office entrances, complex facilities, and stations
JR East
-
Providing Telecube in train stations as
"STATION BOOTH" - Introduced to STATION DESK shared offices
2020 | 500 to 1,000 units | 200 to 400 units |
Target | Full-scale deployment of subscription models | JR East: Target for "STATION BOOTH" at 30 stations (FY2020) |
Copyright © V-cube, Inc. All Rights Reserved. | 36 |
4. FY2020 Forecast : Application-specific video communications: Pharmaceutical seminars
Held low-cost,high-quality web seminars to disseminate information from pharmaceutical companies to doctors
"Attentive and helpful" one-stop service
Provision of one-stop services for web seminars,
which are increasing due to regulations on visits by
MR and strengthening of area marketing
V-cubedistributes about 2,000 times a year in the
pharmaceutical industry. This is precisely because it provides not only technical support in studios and local areas, but also "attentive and helpful" services through various agency services such as lines and meals.
Easily hold web lectures from your area
Small web lectures and minisessions are easy to operate with
an Internet environment, a PC, and a distribution staff. Easy-
to-use software to provide low-cost,high-quality web
seminars
Copyright © V-cube, Inc. All Rights Reserved. | 37 |
4. FY2020 Forecast : Application-specific video communications/disaster countermeasures
"V-CUBE Board", emergency solutions for collecting, organizing, and sharing information in times of disaster Strengthening the Government's Budget for Strengthening National Land (last year of 3-year urgent measures)
- A scene-specific solution for dealing with all kinds of disasters, which have been on the rise in recent years.
- V-CUBEBoard, a large-screentouch-screen operation table, and V-CUBE Collaboration, a visual communication service, enable quick decision-making required in emergencies, such as simultaneous examination of multiple documents, aggregation of information based on maps, simultaneous writing by multiple persons, and real-time information sharing with remote locations.
- (Reference Video) https://japan-demo.qumucloud.com/view/2ngfYK6jQUt?start=140#/ ((Link))
Expansion of introduction municipalities and
companies
- Aviation Bureau of the Ministry of Land, Infrastructure, Transport and Tourism
- Kumamoto Prefectural Government
- Miyazaki Prefectural Government
- Oita Prefectural Government
- Kobe City Hall
- Kumamoto City Hall
- Okinawa Nanjo City Hall
- Fire Department, Ono City, Fukui Prefecture
- Tokyo Gas Co., Ltd. Ohgishima LNG Terminal
- ASKA SOKEN CO., LTD.
- Tokyu Corporation
- Gero City Hall, Gifu Prefecture
And many others
Copyright © V-cube, Inc. All Rights Reserved.
Exhibited at the Crisis-Management Industry Exhibition 2019 (RISCON TOKYO)
(October 2019)
38
4. FY2020 Forecast: Application-specific video communications: VCaaS
Increasing need to incorporate video and audio functions into company services and devices, provide business
support while people view images remotely when needed, and provide unique communication services
Live distribution platform
Live for PCs and smartphones
Large-scale distribution and live commerce
Video distribution service infrastructure
Online lesson platform
Online English conversation schools and online interviews, For remote dialogue systems such as telemedicine Visual communication infrastructure
according to application and purpose>
Labor-saving and unmanned stores
Stores that are increasingly labor-saving and unmanned incorporate them into self-
registers, ATMs, digital signage, etc., and
provide instructions and guidance on how to
use them when remote support is required.
Copyright © V-cube, Inc. All Rights Reserved.
Labor-saving and unmanned on-site operations
Incorporated into IoT Construction Machinery, which is becoming more labor-saving and unmanned, as well as into automobiles for automatic operation. Incorporated into wearable glasses, as well as remotely monitored
and operated by advanced engineers, to provide work
support for construction sites and infrastructure
equipment inspections from remote locations.
39
VCaaS
(Visual Communication as a Service)
Solution Provider
Copyright © V-cube, Inc. All Rights Reserved.
1. Current Initiatives
- FY2019 Results
- Segment and KPIs
- FY2020 Forecast
- Appendix
Copyright © V-cube, Inc. All Rights Reserved.
Mission Statement
Provide Even Opportunity to Everybody
We want to create a world where everyone can get even opportunity
in any circumstances.
We believe that we can realize more affluent society
by reducing the time and distance of face-to-face communication.
The world is facing social issues such as extreme concentration of population and industry in city area, declining birthrate and aging society, long working hours, educational and healthcare gaps, etc.
We aim to provide even opportunity to everybody
by solving these social issues with our Visual Communication solutions.
Copyright © V-cube, Inc. All Rights Reserved.
Corporate summary (As of December 31, 2019)
VCaaS (Visual Communication as a Service) Solution Provider
Company name
Established
Fiscal year end
Capital (including capital
reserve)
Listed Markets
Group companies
Number of members
V-cube, Inc.
October 16, 1998
December
2,801 million JPY
The 1st Section of the Tokyo Stock Exchange (3681)
Domestic 3 Overseas 5.
(3 in Singapore, 1 in United States, 1 in Thailand.)
Board members 14・ Employees 402
(consolidated) *As of December 31, 2019
Copyright © V-cube, Inc. All Rights Reserved.
Group Companies (As of December 31, 2019)
V-cube, Inc. and 6 subsidiaries operate in Japan, USA and ASEAN area.
Singapore
V-cube,Inc.
Telecube,Inc. | V-cube Global Services Pte. Ltd. | V-cube USA, Inc. | ||||||
Telecube Service,Co.Ltd.
※Equity Method Affiliate
Wizlearn Technologies Pte. Ltd. | V-cube (Thailand) Co., Ltd. |
Pave Education Pte. Ltd.
Other group company: SENSYN ROBOTICS, Inc.
Copyright © V-cube, Inc. All Rights Reserved.
Corporate History
Established V-cube Internet Ltd. for Web creating, system and app development
Conversion to stock company
Began developing and selling Web conferencing due to high TV conferencing costs
Changed corporate name to V-cube,Inc and decided to focus in visual communication
Investment from Capital investment and started business in Asian market
Listed on TSE Mothers
Listed on theTSE first section
1998 2001 2004 2009 2012 2013 2014 2015 2016 2017 2018 2019
2003 V-cube USA, Inc.
2009 V-cube Malaysia Sdn. Bhd. | Sale |
2012 V-cube Global Services Pte. Ltd. Singapore
2012 PT. V-cube INDONESIA | Sale | ||||||||
Net sales(million yen) | 2013 BRAV International Limited | Sale | |||||||
V-cube | 7,239 | 7,960 | 2014 Pioneer VC | Merged into V-cube, Sale of Smartboard | |||||
affiliate | 6,638 | ||||||||
6,083 | 2015 Wizlearn Technologies Pte. Ltd. | ||||||||
4,681 | 26.5% | 2015 iStudy Co., Ltd. | Sale | ||||||
21.4% | 17.1% | ||||||||
19.8% | 2016 V-cube (Thailand) Co., Ltd. | ||||||||
2,525 9.5% 14.7% | 15.6% | ||||||||
3,972 | 5,924 | 5,020 | 2019 Telecube Inc. | ||||||
2,419 | 3,149 | 3,540 | 3,483 | ||||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | |||
Copyright © V-cube, Inc. All Rights Reserved. |
Exchange rates for major currencies
- Full Year
FY19 | FY20 | |||
Full | Average | Year end | Full | |
(JPY) | (forecast) | (results) | (results) | (forecast) |
US$ | 111.00 | 109.06 | 109.55 | 111.00 |
S$ | 81.00 | 79.95 | 81.06 | 81.00 |
Copyright © V-cube, Inc. All Rights Reserved.
Corporate Directors(As of December 31, 2019)
Management team consisting mainly of members from the time of founding
President, CEO & Founder | Managing Director, CRO | ||
Naoaki Mashita | (Chief Revenue Officer) | ||
Jun Mizutani | |||
1977 | Born in Tokyo | ||
1998 | Established V-cube | 2006 | Entered V-CUBE as new graduate |
2000 | Graduated from Keio University | 2009 | Sales Department Group Manager |
2002 | Graduated from Keio Graduate School | 2012 | Vice President of Sales Department |
2003 | Established V-cube USA, Inc. | 2014 | Manager of Customer Experience |
2009 | Established V-cube Malaysia | 2015 | President of Sales Department |
2012 | Established V-cube Singapore | 2016 Became Director at V-cube, Inc.(sales) | |
2012 | Established P.T. V-cube Indonesia | 2019 | Became Managing Director at V-cube, Inc. |
2015 | Established V-cube Robotics Japan, Inc. |
Deputy President, COOCTO
Masaya Takada | Yosuke Kamezaki | ||
2001 | Became Executive at V-cube Internet, | 2002 | Joined V-cube Internet, Inc. |
2002 | Graduated from Keio Graduate School | 2003 | Developed the 1st Web Conference model |
2006 | Became Deputy President | 2007 | Became Officer at V-cube, Inc. |
2013 | Became Executive Deputy President | 2012 | Became Director at V-cube, Inc. |
at V-cube, Inc.
Copyright © V-cube, Inc. All Rights Reserved.
Outside Officers and Adviser (As of December 31, 2019)
Corporate governance by experienced and powerful outside officers
Outside corporate director
Outside corporate director
Norio Murakami
Kenichi
Nishimura
CEO at Murakami Norio Office, Inc. Outside director, CellSource Co., Ltd.
Former Executive Vice President at Google, Inc. Former CEO of Google Japan
Outside Director, Hakusan
Former NTT-Neomeit President
Former Mirait, Inc. Adviser
Corporate
Directors
External ratio
42.9%
Outside corporate director
Hajime Nakano
Senior Director, Regional Economy Vitalization Corporation of Japan Director, REVIC Partners
Outside Auditor, SENSHUKAI CO.,LTD
Outside Audit
- Supervisory Board Member
Outside Audit
- Supervisory Board Member
Outside Audit
- Supervisory Board Member
Kikuo
Fukushima
Kiyoji
Odashima
Arifumi Sunada
Representative, Success Coaching Studio
President, Odashima Kiyoji Tax Accountant Office
Outside Auditor, Ebara Foods Industry, Inc.
Senior Director, Regional Economy Vitalization Corporation of Japan Senior Director, REVIC Partners
Outside Auditor, I-ne CO.,LTD.
Adviser
Hiroshi
Komiyama
Chairman of the Board of Trustees at Mitsubishi Research Inst., Inc. Former President of Tokyo University
Copyright © V-cube, Inc. All Rights Reserved.
Group Employees (As of December 31, 2019)
By group | By region | By function | ||||||||||||||||||||||||||||||||||||
V-cube | Subsidiaries | Japan | Singapore | Others | Technical | Sales | Admn. | |||||||||||||||||||||||||||||||
420 | 402 | 420 | 402 | 420 | 402 | |||||||||||||||||||||||||||||||||
16 | 9 | 50 | 52 | |||||||||||||||||||||||||||||||||||
174 | ||||||||||||||||||||||||||||||||||||||
166 | 158 | 153 | 141 | 129 | ||||||||||||||||||||||||||||||||||
246 | 236 | 246 | 240 | 229 | 221 | |||||||||||||||||||||||||||||||||
'19/6 | '19/12 | '19/6 | '19/12 | '19/6 | '19/12 | |||||||||||||||||||||||||||||||||
Number of Staff | ||||||||||||||||||||||||||||||||||||||
V-cube | Subsidiaries | |||||||||||||||||||||||||||||||||||||
470 | 500 | 450 | 457 | |||||||||||||||||||||||||||||||||||
420 | ||||||||||||||||||||||||||||||||||||||
402 | ||||||||||||||||||||||||||||||||||||||
296 | ||||||||||||||||||||||||||||||||||||||
284 | 201 | 213 | 174 | 166 | ||||||||||||||||||||||||||||||||||
186 | 204 | 249 | 244 | 246 | 236 | |||||||||||||||||||||||||||||||||
'15/12 | '16/12 | '17/12 | '18/12 | '19/6 | '19/12 |
Copyright © V-cube, Inc. All Rights Reserved.
Disclaimer
This documents contains forecast, target, plans and other future-related information of V-cube,
Inc. (including all subsidiaries). This information stated in this documents is based on the information at hand when creating this document. The statements in this document is based on the aforementioned principle. The statements and prerequisite stated in this documents is only a prediction and forecast of the future, we do not guarantee all statements will be realized in the future. Please refer to V-cube's summary of accounts, securities report, disclosure magazines, annual report, etc., for uncertainty and risks of the information in this document. The information in this documents was received at the time of creating this documents, thus for changes occurred after the creating of the documents, V-cube does not resume responsibility
of updating the information. Your understanding is appreciated.
Information disclosed regarding other companies in this document are from public releases, in case of misinterpretation, V-cube do not guarantee the accuracy of this information. V-cube does not resume responsibility for any misinterpretation, mistake, or damages caused by the use of this document and the data used in this documents. Your understanding is appreciated. V-cube claims all rights of this documents, please do not by any means or purposes, electronically or mechanically copy or forward this documents.
Copyright © V-cube, Inc. All Rights Reserved.
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V-cube Inc. published this content on 12 February 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 February 2020 11:43:02 UTC