Cac Holdings Corporation · TSE:4725
Cac — FY2024 Earnings Presentation
36 slides from Cac's earnings presentation, Feb 19, 2025
Slide 1: FY2024 Annual Results and FY2025 Annual Forecast
FY2024 Annual Results and FY2025 Annual Forecast －January to December 2024－
Slide 2: Table of contents
Table of contents Executive Summary 3 １. FY2024 Annual Results 4 2. FY2025 Annual Forecast 11 3. Progress of Medium-term Management Plan 16 4. Reference 27
Slide 3: Executive Summary
Executive Summary FY2024 FY2025 Consecutive 01 02 03 Sales & Profit Increased Continuous Growth Dividend Increase FY2024 Results FY2025 Forecast Net Sales + 3.0％ Net Sales + 11.４％ 60 80 90 100 Adj. EBITDA ＋10.3％ Adj. EBITDA ＋ 20.３％ 2022 2023 2024予 2025予 04 Medium-term Mgmt Plan 05 AI Transformation
Slide 4: FY2024 Results
1 FY2024 Results
Slide 5: Overview of Consolidated Results YoY Change
Overview of Consolidated Results YoY Change ▍Overview of profit and loss YoY change FY2023 FY2024 (JPY mil) Amount % Divesture of domestic subsidiary and large Net sales 50,539 52,063 +1,523 +3.0% projects sales in India was recognized in previous year. However, net sales Gross profit 12,285 13,57
Slide 6: Net sales increased by 1.5 billion yen from previous year
Net sales increased by 1.5 billion yen from previous year Domestic IT solutions increased by 3 billion yen driven by domestic subsidiary and acquisition of new companies. Oversea IT solutions declined by 1.4 billion yen due to rebound of large-scale project sales recognized in 2023. +12.1 (JPY 1
Slide 7: Adjusted EBITDA increased by 430 million yen from the previous year
Adjusted EBITDA increased by 430million yen from the previous year There was a decrease in profit due to investment for growth (new business development, investment in human capital, etc.) and exclusion from consolidation. However, there was an increase of 430 million yen from the previous fiscal
Slide 8: Operating profit rate in FY2024 was 6% due to upfront investments
Operating profit rate in FY2024 was 6% due to upfront investments Proforma Operating profit excluding upfront investments is 10%, while P&L shows 6.5% in FY2024. Planning to continue this Upfront Growth Investment toward CAC Vision2030. 520 (JPY 100 mil) profit profit Upfront Growth Investments
Slide 9: FY2024 Actual vs Forecast
FY2024 Actual vs Forecast (JPY mil) FY2024 FY2023 Forecast FY2024 Actual Act vs Forecast (%) Actual ▍Financial Results Net sales 51,500 52,063 101.1% 50,539 Sales and adjusted EBITDA achieved Forecast Adjusted EBITDA 4,500 4,570 101.6% 4,143 ▍KPI ROE 8.3% 8.9％ 8.2% 1.3% 1.9％ 1.2% ROE and Equity
Slide 10: Trends in Financial Indicators
Trends in Financial Indicators ROE become higher, exceeded Cost of Capital. Based on the dividend policy, the annual dividend increased from the forecast of 80 yen to 90 yen. Maintain solid balance sheet with equity multiple x 1.5. Cost of Capital & ROE DOE & Dividends Equity Multiple 4.6% Tot
Slide 11: FY2025 Forecast
2 FY2025 Forecast
Slide 12: FY2025 Forecast
FY2025 Forecast In 2025, expecting to expand our business by solid growth of System Integration and Operation Services and M&A’s. FY2025 YoY FY2022 FY2023 FY2024 (JPY mil) Forecast change Net sales 47,971 50,539 52,063 58,000 11.4% 4,029 4,143 4,570 5,500 20.3% Adjusted EBITDA* (as % of sales) 8.4
Slide 13: Aiming to increase net sales by 6 billion yen in FY2025
Aiming to increase net sales by 6 billion yen in FY2025 Achieve solid growth of both Domestic IT and oversea IT solutions and aiming further growth by leveraging M&As. (JPY 100mil) +20 +5 +35 580 Growth Phase Beyond Restructuring 520 ＋Num. of Engineers 505 + Update Pricing + Productivity Improveme
Slide 14: Increase Adjusted EBITDA by 1 billion yen in FY 2025
Increase Adjusted EBITDA by 1 billion yen in FY 2025 Increase profit from incremental net sales and margin improvement by replacing current business to managed services. Companies acquired amid 2024 will contribute by annualizing impact. (JPY 100mil) +2 +2 +6 55 45 FY2024 Domestic IT Upside from
Slide 15: Increase dividend for 3 consecutive years under Dividend Policy
Increase dividend for 3 consecutive years under Dividend Policy In accordance with Dividend Policy of DOE5% level, planning annual dividend of 90 yen for FY2024, increase 10 yen from previous year. FY2025, forecast an annual dividend of 100 yen, increase 10 yen from FY2024. 4.6% 4.7% 4.5% Divide
Slide 16: Progress of Medium-term Management Plan
3 Progress of Medium-term Management Plan
Slide 17: Current Medium-Term Management Plan
Current Medium-Term Management Plan Phase Current Mid-Term Management Plan (FY 2022 to FY 2025) 1 FY 2025 Forecast Building Product & Service Sales JPY 58 billion Infrastructure Adjusted EBITDA JPY 5.5 billion ROE * 10% Equity spread * 3.0% DOE 5% level Fiduciary… P&S 505 520 100 Millions of yen 479
Slide 18: Establish Stable Earnings Phase from the System Integration & Operation
Outline of the Medium-Term Management Plan Establish Stable Earnings Phase from the1System (2022~2025) Integration & Operation and Acquire capability to generate New Products and Services consinuouslly. Progress by 2024 [New Business: Products & Services] - Establish structure to launch new business
Slide 19: Growth Strategy - Establish structure to launch new businesses continuously
Growth Strategy - Establish structure to launch new businesses continuouslly Established New Business Development Department to hire hypo talent to accelerate new business. Ellaborate selection of successful Product & Service based on biz-development experience from 2022. Focus on growth of th
Slide 20: Growth Strategy – Expand System Integration & System Operation Business
Growth Strategy – Expand System Integration & System Operation Business The increase in headcount is achieved as planned. Expecting to contribute our incremental sales. Focusing on the development of AI Transformation as a key measure in 2025 Headcount Increase AI Transformation M&A - Hired 400
Slide 21: AI Transformation - Business Development of In-house AI Solutions
AI Transformation - Business Development of In-house AI Solutions In 2025, CAC Group will focus on developing IT services for specific industries that are highly effective in utilizing AI, while promoting existing Gen AI services. Products & Services AI Based Products & Services Based on In-house
Slide 22: AI Transformation – AI Agent maximize Customer Value of On-going Business
AI Transformation – AI Agent maximize Customer Value of On-going Business Automate system integration, system operation, and BPO by introducing AI agents Aim to improve operational efficiency and make effective use of project resources. Make “knowledge”, “technologies”, and “methodologies” as As
Slide 23: AI Transformation – Fully Dedicated Team of AI Deployment
AI Transformation – Fully Dedicated Team of AI Deployment Asset-based Business Promotion Dept. The Asset-based Business Promotion Department was established in January 2025 to deploye AI Transformation. Responsible for planning and promoting AI Transformation for the entire Group. Responsible
Slide 24: Growth Investments – Invested over half of budget so far
Growth Investments – Invested over half of budget so far From 2022 to 2024, 8 billion yen, which is more than half of budget was invested. Investment was funded by sales of assets and debt. Source of Actual Investment Budget Remainings investment Until Year-end of 2024 In 2023 total Human Capita
Slide 25: Improve Capital Efficiency: Reduce cross-shareholdings to less than 20% by 2026
Improve Capital Efficiency: Reduce cross-shareholdings to less than 20% by 2026 Refer to the “Notice The BoD regularly discusses capital costs and capital efficiency as critical agenda. Regarding Reducing the net asset ratio of cross-shareholdings lower than 20% by 2026. Implementation of Manage
Slide 26: Visit our Web Site! CAC Group’s Services and Technologies
Visit our Web Site ! CAC Group’s Services and Technologies New Business Web Media - CAC Innovation Hub CAC Corporate Site CAC Group operate a Web media that disseminates information on Renewed website of our core subsidiary : CAC Corporation. innovation and business development introducing our i
Slide 27: Reference
4 Reference
Slide 28: Net Sales / Adjusted EBITDA
Net Sales / Adjusted EBITDA ▍Net sales FY2023 FY2024 YoY change (JPY mil) Amount % Amount % Amount % Domestic IT 35,905 71.0% 38,866 74.7% +2,961 +8.2% Overseas IT 14,633 29.0% 13,196 25.3% (1,437) ( 9.8)% Total 50,539 100.0% 52,063 100.0% +1,523 +3.0% ▍Adjusted EBITDA FY2023 FY2024 YoY change (JPY
Slide 29: Orders Received Order Backlog
Orders Received Order Backlog ▍Orders received FY2023 FY2024 YoY change (JPY mil) Amount % Amount % Amount % Domestic IT 37,532 68.7% 37,873 71.5% +340 +0.9% Overseas IT 17,117 31.3% 15,108 28.5% (2,008) (11.7)% Total 54,650 100.0% 52,982 100.0% (1,668) (3.1)% ▍Order backlog FY2022 FY2023 YoY change
Slide 30: Orders Received by Industry
Orders Received by Industry FY2023 FY2024 YoY change (JPY mil) Amount % Amount % Amount % Financial services 19,928 36.5% 18,975 35.8% (953) (4.8)% Pharmaceuticals 8,719 16.0% 8,095 15.3% (623) (7.2)% Manufacturing 7,694 14.1% 7,696 14.5% +2 +0.0% Information & communications 7,998 14.6% 7,552 14.3%
Slide 31: Net Sales by Industry
Net Sales by Industry FY2023 FY2024 YoY change (JPY mil) Amount % Amount % Amount % Financial services 18,382 36.4% 17,717 34.0% (664) (3.6)% Pharmaceuticals 8,449 16.7% 8,598 16.5% +148 +1.8% Manufacturing 7,027 13.9% 7,952 15.3% +925 +13.2% Information & communications 7,130 14.1% 7,599 14.6% +468
Slide 32: Orders Received by Segment & Industry
Orders Received by Segment & Industry FY2023 FY2024 YoY change (JPY mil) Amount % Amount % Amount % Domestic IT Solutions 37,532 68.7% 37,873 71.5% +340 +0.9% Financial services 12,035 22.0% 12,914 24.4% +878 +7.3% Pharmaceuticals 8,061 14.8% 7,418 14.0% (643) (8.0)% Manufacturing 6,158 11.3% 6,183
Slide 33: Net Sales by Segment & Industry
Net Sales by Segment & Industry FY2023 FY2024 YoY change (JPY mil) Amount % Amount % Amount % Domestic IT Solutions 35,905 71.0% 38,866 74.7% +2,961 +8.2% Financial services 11,496 22.7% 12,757 24.5% +1,261 +11.0% Pharmaceuticals 7,787 15.4% 7,774 14.9% (13) (0.2)% Manufacturing 5,516 10.9% 6,500 12
Slide 34: Product & Services (P&S) exceeded the Medium-term Management Plan
Product & Services (P&S) exceeded the Medium-term Management Plan Net sales of Product & Service Business exceeded Medium-term Management Plan’s target of 5 billion yen by FY2025. (JPY 100mil) 80 19 60 Target by FY2025: 5 billion yen 17 21 15 21 Q4 13 Q3 17 Q2 19 10 Q1 FY2022 FY2023 FY2024 34 Copy
Slide 35: Reference: Results through FY 2025 (Actuals and Forecast)
Reference ：Results through FY 2025 (Actuals and Forecast) FY2025 FY2022 FY2023 FY2024 (JPY mil) Forecast Net sales 47,971 50,539 52,063 58,000 Adjusted EBITDA※1 4,029 4,143 4,570 5,500 (% of sales) 8.4% 8.2% 8.8% 9.5% Depreciation 580 555 598 600~700 196 146 309 300~800 amortization of goodwill Stoc
Slide 36: Contact
Contact Financial Strategy Dept, Corporate Div. E-mail: prir@cac.co.jp https://www.cac-holdings.com/