Tsuzuki Denki Co., Ltd. · TSE:8157
Tsuzuki Denki — H1 FY2023 Earnings Presentation
29 slides from Tsuzuki Denki's earnings presentation, Nov 16, 2022
Slide 1: Financial Results for the First Half of the Fiscal Year Ending March 31, 2023
Tsuzuki Denki Co., Ltd Financial Results for the First Half of the Fiscal Year Ending March 31, 2023 November 16, 2022 Stock code: 8157 URL https://www.tsuzuki.co.jp Copyright © 2022 Tsuzuki Denki Co., Ltd.
Slide 2: Table of Contents
Table of Contents 1 Overview of Q2 FY03/23 Consolidated Results 2 FY03/23 Consolidated Earnings Forecast 3 Progress of Medium-term Management Plan ４ Shareholder Return 1 Copyright © 2022 Tsuzuki Denki Co., Ltd.
Slide 3: Purpose statement and reorganized management principles
Table of Contents On June 24, 2022 We created a purpose statement and reorganized management principles (Tsuzuki Principles) The purpose statement expresses our values and aspirations, while “values” defines the values we hold and the action guidelines we follow Management principles Purpose stateme
Slide 4: Overview of Q2 FY03/23 Consolidated Results
Table of Contents 1 Overview of Q2 FY03/23 Consolidated Results 2 FY03/23 consolidated earnings forecast 3 Progress of Medium-term Management Plan ４ Shareholder Return 3 Copyright © 2022 Tsuzuki Denki Co., Ltd.
Slide 5: Highlights: Second-highest sales and profit in 10 years
1. Overview of Q2 FY03/23 Consolidated Results Highlights Net sales: JPY55,046mn, an increase of JPY1,945mn (103.7% YoY) Operating income: JPY1,021mn, an increase of 222mn (127.8% YoY) Second-highest sales and profit in 10 years Information Network Solutions ・Customers made steady IT investments (in
Slide 6: Statement of Income
1. Overview of Q2 FY03/23 Consolidated Results Statement of Income (Millions of yen) 1H FY03/22 1H FY03/23 Change (amount) Change (YoY) Net sales 53,100 55,046 1,945 103.7% Gross profit 9,789 10,478 688 107.0% (Cost ratio) （81.6%） （81.0%） （-0.6pt） － SG&A expenses 8,990 9,457 466 105.2% Operating inc
Slide 7: Factors Affecting Sales
1. Overview of Q2 FY03/23 Consolidated Results Factors Affecting Sales +1.4 + (Billions of yen) ++2.5 -1.0 55 -1.0 YoY +3.7% 53.1 +1.9 1H FY03/22 ・Growth in Equipment Special demand Effects of ・Decrease in Service*2 1H FY03/23 Sales ・Growth in cloud services for Electronic semiconductor ・Decrease in
Slide 8: Factors Affecting Operating Income
1. Overview of Q2 FY03/23 Consolidated Results Factors Affecting Operating Income (Millions of yen) + + YoY - +27.8% +222 Increase in gross profit: ＋688 FY03/22 Effects of Improvement in cost Unprofitable Higher SG&A 1H FY03/23 Operating sales ratio projects expenses* Operating income increase (+0.6
Slide 9: Results by Segment
1. Overview of Q2 FY03/23 Consolidated Results Results by Segment (Millions of yen) Net sales Operating income 1H 1H Change Change 1H 1H Change Change FY03/22 FY03/23 (amount) (YoY) FY03/22 FY03/23 (amount) (YoY) Information Network 40,022 40,519 496 101.2% 532 521 -10 98.0% Solutions Electronic Dev
Slide 10: Results by Business Model (Information Network Solutions)
1. Overview of Q2 FY03/23 Consolidated Results Results by Business Model (Information Network Solutions) (Millions of yen) Net sales （YoY） Orders （YoY） Order backlog （YoY） 101.2％ 50,175 52,059 103.8％ 40,022 40,519 28,815 116.5％ 24,738 Equipment 13,899 14,694 105.7％ 20,067 22,763 113.4％ Development 1
Slide 11: Results by Business Model (Electronic Devices)
1. Overview of Q2 FY03/23 Consolidated Results Results by Business Model (Electronic Devices) (Millions of yen) Net sales Orders Order backlog （YoY） （YoY） 18,400 （YoY） 14,526 111.1% 19,063 144.4% 17,153 93.2% 13,078 13,204 1H22/3期2Q FY03/22 23/3期2Q 1H FY03/23 1H22/3期2Q FY03/22 1H FY03/23 23/3期2Q 22/
Slide 12: Results by Business Model (Electronic Devices – by Product)
1. Overview of Q2 FY03/23 Consolidated Results Results by Business Model (Electronic Devices – by Product) Sales composition ratio by product in Electronic Devices: Q2 FY03/23 Other This fiscal year (+) 5% Supplies Semiconductors/electronic parts for FA and industrial 8% equipment Semiconductor 19%
Slide 13: FY03/23 Consolidated Earnings Forecast
Table of Contents 1 Overview of Q2 FY03/23 consolidated results 2 FY03/23 Consolidated Earnings Forecast 3 Progress of Medium-term Management Plan ４ Shareholder Return 12 Copyright © 2022 Tsuzuki Denki Co., Ltd.
Slide 14: We raised our FY03/23 consolidated earnings forecast
2. FY03/23 Consolidated Earnings Forecast We raised our FY03/23 consolidated earnings forecast (released on May 13, 2022) (Millions of yen) Previous forecast Revised forecast Change FY03/22 Change (Change) (A） (B) （B-A） results (YoY) Change Net sales 120,000 121,000 1,000 0.8% 119,316 1,683 1.4% Ope
Slide 15: Long-term Trends in the Cost Ratio and Operating Margin
2. FY03/23 Consolidated Earnings Forecast Long-term Trends in the Cost Ratio and Operating Margin Consolidated 83.7% 3.7% Cost ratio improved significantly over the 3.4% 4.0% 84.0% 83.4% 3.6% medium to long term; operating margin rose 83.5% 3.5% 3.0% Cost ratio 82.5% 82.6% 2.7% 83.0% 2.8% accordingl
Slide 16: Progress of Medium-term Management Plan
Table of Contents 1 Overview of Q2 FY03/23 consolidate results 2 FY03/23 consolidated earnings forecast 3 Progress of Medium-term Management Plan ４ Shareholder Return 15 Copyright © 2022 Tsuzuki Denki Co., Ltd.
Slide 17: Medium-term Management Plan "Innovation 2023"
３．Progress of Medium-term Management Plan Overview of Medium-term Management Plan (FY03/21 to FY03/23) Medium-term Management Plan "Innovation 2023” Help customers achieve digital transformation and boost competitiveness Create a prosperous Vision society ＝ Innovation Service Provider Key priorities
Slide 18: Progress of Key Priorities in the Medium-term Management Plan (Overview)
３．Progress of Medium-term Management Plan Progress of Key Priorities in the Medium-term Management Plan (Overview) 1. Reforming our business structure by expanding the service we offer Maintaining a high service-sales composition ratio by promoting human-resource training, etc. to release new servic
Slide 19: Strengthening the Service Business
３．Progress of Medium-term Management Plan Strengthening the Service Business New service releases and enhancements of existing services are progressing under our TSF service framework Total SolutionService Framework（TSF） Implementation support Services Common services service D-VUE Customer Tsuzuki
Slide 20: Strengthening the Service Business
３．Progress of Medium-term Management Plan Strengthening the Service Business (a sales-management system for Cyber security management support services TCloud for Smart Fruits fruit and vegetable wholesalers) Support for the visualization of cybersecurity Industry-wide cloud platform covering the bas
Slide 21: Strengthening the Service Business
３．Progress of Medium-term Management Plan Strengthening the Service Business D-VUE® Implementation Support Services TManaged Service (Server-surveillance starter service) One-stop support service for upstream processes Monitors up to 10 servers in cloud and on-premises environments; such as business
Slide 22: Co-creation with Partners
３．Progress of Medium-term Management Plan Co-creation with Partners Digital Platformer Corp. JIG-SAW INC. Business alliance agreement signed (August 23, 2022) Release of Tsuzuki IoT StarterKit NEQTO Engine Linux version was released by the company We will combine blockchain technology, which is esse
Slide 23: Co-creation with Partners
３．Progress of Medium-term Management Plan Co-creation with Partners Nextgen, Inc. 【Joint development】 Cloud PBX No physical PBX needed Reduction in operational Extensible loads No physical assets Works in any location No maintenance needed needed Flexible High quality Low costs ✔ Customers in variou
Slide 24: Shareholder Return
Table of Contents 1 Overview of Q2 FY03/23 consolidated results 2 FY03/23 consolidated earnings forecast 3 Progress of Medium-term Management Plan ４ Shareholder Return 23 Copyright © 2022 Tsuzuki Denki Co., Ltd.
Slide 25: Shareholder Return
４．Shareholder Return Shareholder Return Interim dividend: JPY25 (including JPY2 commemorative dividend for the 90th anniversary) Dividend yield Annual dividend: JPY50 (provisional) Year-end price Year-end Year-end Aiming to maintain stable dividends with a payout ratio JPY1,100 price price of around
Slide 26: Press Releases
Reference Press Releases Link to press release No. Date Content 1 2022/06/24 Established a purpose statement 2 2022/07/14 Released FINDISH, an AI-based tableware-search site, on a trial basis 3 2022/08/23 TSUZUKI DENKI and Digital Platformer concluded a business alliance agreement Released informati
Slide 27: Stock Price History
Reference Stock Price History (Volume: Shares) (Stock price: Yen) 160,000 1,600 140,000 1,400 120,000 1,200 100,000 1,000 80,000 800 60,000 600 40,000 400 20,000 200 0 0 2022/4/1 2022/5/1 2022/6/1 2022/7/1 2022/8/1 2022/9/1 2022/10/1 2022/11/1 26 Copyright © 2022 Tsuzuki Denki Co., Ltd.
Slide 28: Contact
Contact Tsuzuki Denki Co., Ltd. Contact Management Planning Office Address 6-19-15 Shinbashi, Minato-ku, Tokyo 105-8665, Japan (Tokyo Art Club Building) Phone: 050-3684-7780 ir-tantou@tsuzuki.co.jp https://www.tsuzuki.co.jp/ Disclaimer The forward-looking statements, including earnings forecasts, co
Slide 29: Bring to society "yohaku" filled with possibilities
Bring to society “yohaku ” filled with possibilities, Lf through people, insight, and technology, together.