Segment Information

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. Focusing on security and generative AI, which are expected to see increased demand in the future and have high customer needs, support is being provided by offering new services tailored to the installation and consideration status of each customer. Additionally, in order to accelerate the provision of comprehensive, cross-business solution services to client companies, the Company has been transitioning towards an organization that integrates manufacturing and sales, and has been providing optimal solutions tailored to the circumstances and needs of each client.
As a result,business results for the consolidated accounting year under review showed increased revenue and profit with recorded net sales of 140,858 million yen (up 24.9% year-on-year), operating profit of 4,593 million yen (up 9.6% year-on-year), ordinary profit of 4,587 million yen (5.5% year-on-year). On the other hand, an impairment loss on goodwill was recorded in connection with the consolidated subsidiary, NEXTSCAPE INC., so profit attributable to owners of parent was 1,514 million yen (down 54.8% year-on-year).
The breakdown of sales by business segment is as follows. The cloud service and license/products businesses generate recurring revenues and account for 69% of total sales.

In the cloud integration business, which is responsible for implementing cloud services, while net sales expanded due to an increase in projects driven by strong demand for cloud computing, costs increased due to sluggish growth in project unit prices, changes in development schedules for some projects, and the prolongation of some projects at subsidiary Nextscape Inc.. As a result, sales were 23,593 million yen (up 2.5% year-on-year) and segment profit was 2,985 million yen (down 15.6% year-on-year).

In the cloud services business, which performs maintenance, operation, and improvement of cloud utilization, strengthening sales activities led to increased net sales through the acquisition of new clients and the expansion of contracts with existing clients, and profitability improved due to an increase in orders for managed services, including our own services. As a result, net sales were 18,922 million yen (up 23.0% year-on-year) and segment profit was 2,854 million yen (up 43.9% year-on-year)

In the licenses and products business, which is responsible for sales of Microsoft licenses and various hardware, software, and the other goods, as a result of increased up-selling and cross-selling of Microsoft licenses to existing clients, primarily large corporate clients, by promoting cloud utilization, as well as favorable sales of physical products, net sales were 98,330 million yen (up 32.2% year-on-year), and segment profit was 2,417 million yen (up 18.2% year-on-year).

• 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.