Densan System Holdings Co. Ltd. · TSE:4072
Densan System — FY2022 Earnings Presentation
25 slides from Densan System's earnings presentation, 2023
Slide 1: Presentation Materials for the FY2022 Results Briefing
Densan System Holdings Presentation Materials for the FY2022 Results Briefing Tokyo Stock Exchange Prime Nagoya Stock Exchange Premier Securities Code: 4072 Forward-looking statements contained in this document are based on current estimates and projections and include potential risks and uncertaint
Slide 2: Table of Contents
Table of Contents • FY2022 Business Results Highlights P3 • FY2022 Transition in Quarterly Business Results P5 • FY2022 By Segment P6 • FY2022 Information Services Summary P7 • FY2022 Information Services in Detail P8 • FY2022 Payment Agency Services Summary P10 • FY2022 Payment Agency Services in D
Slide 3: FY2022 Business Results Highlights
FY2022 Business Results Highlights Y-o-y change in parentheses Net sales Operating income Net income attributable to shareholders of the parent company ¥53,479 million ¥3,414 million ¥2,348 million (6.2% up) (8.9% up) (18.7% up) Business results Both sales and income increased. Although sales di
Slide 4: FY2022 Business Results Highlights
FY2022 Business Results Highlights (Unit: Million yen) Group companies that booked losses due to the impact of the new revenue standard also received strong orders and there are high expectations for the future. The operating income ratio was 6.4%, and ordinary income ratio was 6.7%. Although
Slide 5: Transition in Quarterly Business Results
FY2022 Transition in Quarterly Business Results (Unit: Million yen) The profit margin in the 4Q improved because of the increase in the profit margin of payment agency services. Software development commissions continued to be strong. Sales growth was weak due to the reactionary decline for GI
Slide 6: By Segment
FY2022 By Segment (Unit: Million yen) Sales of both information services and payment agency services increased from the previous year. Operating income of information services declined from the previous year. Profit was up from the previous year for payment agency services. Net sales Operating
Slide 7: Information Services Summary
FY2022 Information Services Summary (Unit: Million yen) Although there was sales growth, it was not sufficient to cover in terms of profits due to investments in new product development. SI and software development suffered from the triple punch of yen depreciation, the GIGA school concept, and
Slide 8: Information Services in Detail: Google business
FY2022 Information Services in Detail (Unit: Million yen) Google business Number of Google (Google Workspace) implementations Income declined due to the impact of the Cloud-related net sales yen depreciation. GIGA school concept was in place until 2,019 2,083 2,125 March of last year, and sales
Slide 9: Information Services in Detail: BPO business
FY2022 Information Services in Detail (Unit: Million yen) BPO business Sales, income, and number of items Number of items processed Net sales processed all exceeded last year's levels. [Thousands] Invoice preparation services continued to 94,201 97,377 perform well and have become a core 79,974
Slide 10: Payment Agency Services Summary
FY2022 Payment Agency Services Summary (Unit: Million yen) The operating income ratio rose to 8.3%, approaching the level when we first started. This was due to the increase in profit from the unutilized projects that started to operate in September. Remittance services are expected to increas
Slide 11: Payment Agency Services in Detail: Payment and collection agency service
FY2022 Payment Agency Services in Detail (Unit: Million yen) Payment and collection agency service/Online payment service Cashless payments have increased and Number of items processed profitability has improved. [Thousands] 243,452 New infrastructure has made it possible 230,504 to process 250
Slide 12: Payment Agency Services in Detail: Remittance service
FY2022 Payment Agency Services in Detail Remittance service/Payment agency peripheral services Remittance business has become Number of items processed profitable. 500 [Thousands] International remittances Domestic remittances The decline in the number of registered 450 users of international re
Slide 13: Topics: Challenge1000/Payment Services
FY2022 Topics [Challenge1000/Payment Services] Making society more convenient through payment services! Always creating new services as a comprehensive payment service business! April 1, 2022: PayPay Money added to TREE PAYMENT, Sumitomo Life Insurance's premium settlement service platform for cus
Slide 14: Topics: Challenge1000/New Business
FY2022 Topics [Challenge1000/New Business] DX promotion in companies and local governments February 28, 2022: Stared providing DX Assistance Series Visualize DX of user companies and support problem solving March 2022: Temporary childcare reservation service, Minnano Michishirube, introduced in
Slide 15: Topics: Challenge1000/Cloud Business
FY2022 Topics [Challenge1000/Cloud Business] Expand and strengthen cloud system June 3, 2022: BizCrossGate Provides a secure closed environment that connects to customer networks and public cloud services such as Tono IDC and Google Cloud via a dedicated private network. September 28, 2022: Acqu
Slide 16: Topics: Summary of Impact of Social Conditions
FY2022 Topics [Summary of Impact of Social Conditions (Ukraine, COVID-19, etc.)] Information service segment As we coexist with the coronavirus, although we are adapting to sales and development by using both remote and in-person services, there is a risk of personnel retention due to the spread of
Slide 17: Long-Term Plan Challenge1000 (Dec. 2021 to Dec. 2027)
Long-Term Plan Challenge1000 (Dec. 2021 to Dec. 2027) 1,000 Taking on the challenge to become a company 950 900 with ¥100 billion in net sales by 2027! 850 800 Net sales The coming of an era of great change that will radically transform business! Let's (unit:750 ¥100 million) take on a bold challeng
Slide 18: Long-Term Plan Challenge1000: Specific Measures
Long-Term Plan Challenge1000 Taking on the challenge to become a company with ¥100 billion in net sales by 2027! Take into account elements of ESG and SDGs while aiming to become a company with ¥100 billion in net sales by 2027 Specific measures 1. The payment agency services that are DSK's mainst
Slide 19: Medium-Term Management Plan (FY2023 to FY2025)
Medium-Term Management Plan (3-year Plan from FY2023 to FY2025) (Unit: Million yen) Challenge 1000 will be an important 3-year period, with a determination to accomplish what we set out to achieve. Gradually increase the profit margin (overall) over a period of three years. Looking at the grow
Slide 20: FY2023 Business Results Projections
FY2023 Business Results Projections (Unit: Million yen) Profit margin will be slightly lower this fiscal year compared to the previous year. The change in sales for the current fiscal year will be high, at 9 billion yen. Although the previous fiscal year was affected by the coronavirus and the n
Slide 21: FY2023 Information Services Results Projection
FY2023 Information Services Results Projection (Unit: Million yen) The operating income margin will decline due to factors such as price hikes and improved compensation. In SI and software development, software development, auto auctions, and Google Workspace will be performing well. Heading tow
Slide 22: FY2023 Payment Agency Services Results Projection
FY2023 Payment Agency Services Results Projection (Unit: Million yen) Propose a variety of settlement methods and strengthen sales to local governments. (Aiming for a win-win relationship that benefits customers as well) Consider campaigns to promote cashless payments. Expect increase in PAYSL
Slide 23: Sustainability: Climate change initiatives
Sustainability Climate change initiatives Viewing climate change as one of the major issues affecting our business, we will actively address climate change and contribute to the realization of a sustainable society through environmentally and socially conscious business operations, while at the same
Slide 24: Dividends
Dividends FY2022: Annual ordinary dividend of ¥35 per share (interim dividend of ¥17 and year-end dividend of ¥18) FY2023 forecast: Annual ordinary dividend of ¥37 per share (interim dividend of ¥18 and 40 year-end dividend of ¥19) ( 37 ) ( 35 ) Commemorative dividend for ( 34 ) 35 Interim Year-
Slide 25: Reference Documents: Payment Agency Service Subsegments
Reference Documents [Payment Agency Service Subsegments] Created subsegments to match financial statements Subsegments for past New subsegments Details financial statements Payment slip services and bank account transfer services that allow payment at major convenience stores, etc. Convenience sto
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