Slide 1: Second Quarter of Fiscal 2022 Financial Results Briefing
TSE Prime Securities code: 4687 Second Quarter of Fiscal 2022 Ending March 31, 2023 Financial Results Briefing November 21, 2022 TDC SOFT Inc. © 2022 TDC SOFT Inc. 1
Slide 2: Overview of Consolidated Financial Results for the Second Quarter
１ Overview of Consolidated Financial Results for the Second Quarter of Fiscal 2022 Ending March 31, 2023 ２ Status of Key Measures for the Second Quarter of Fiscal 2022 Ending March 31, 2023 ３ Outlook for the Fiscal Year Ending March 31, 2023 Hiroyoshi Kobayashi, President and Representative Director
Slide 3: Important Points in the Second Quarter of Fiscal 2022
Important Points in the Second Quarter of Fiscal 2022 Ending March 2023 Performance during the Quarter ● All business fields made solid progress reaching net sales of ¥16,793 million, a 14.5% increase year on year. ● Secured ¥1,851 million in operating profit, a 16.6% increase year on year, thanks t
Slide 4: Overview of Consolidated Financial Results for the Second Quarter of Fiscal 2022
１ Overview of Consolidated Financial Results for the Second Quarter of Fiscal 2022 Ending March 31, 2023 © 2022 TDC SOFT Inc. 4
Slide 5: Overview of Consolidated Financial Results for the Second Quarter
１ Overview of Consolidated Financial Results for the Second Quarter of Fiscal 2022 Ending March 2023 Q2 FY Q2 FY Ended (Millions of Yen) Ending March Profit Margin YOY 2023 March 2022 Net sales 16,793 - +14.5% 14,661 Gross profit 3,674 21.9% +18.9% 3,090 Operating profit 1,851 11.0% +16.6% 1,588 Ord
Slide 6: Highlights of Each Field
Overview of １ Financial Results Highlights of Each Field IT Consulting & Services +33.9% YOY Provides solution services to promote customers’ DX, including IT strategy 3,150 and systemization concept planning, technical consulting, educational 2,531 services, in-house cloud applications, BI/DWH, ERP
Slide 7: Highlights of Each Field
Overview of １ Financial Results Highlights of Each Field IT Solutions for Public Corporations +13.4% YOY Provides integrated IT solutions for the distribution, manufacturing, service, 4,800 4,591 and public sectors, including systemization planning, design, development, 4,400 maintenance, etc. 4,047
Slide 8: Overview of Net Sales by Field
Overview of １ Financial Results Overview of Net Sales by Field Second Quarter of Fiscal 2021 Second Quarter of Fiscal 2022 Ending March 2022 Ending March 2023 ¥14,661 million ¥16,793 million 1,873 1,891 1,903 2,531 (12.8%) (12.9%) (11.4%) (15.1%) 4,047 4,591 (27.6%) (27.3%) 7,766 6,849 (46.2%) (46.7
Slide 9: Status of Key Measures for the Second Quarter of Fiscal 2022
２ Status of Key Measures for the Second Quarter of Fiscal 2022 Ending March 31, 2023 © 2022 TDC SOFT Inc. 9
Slide 10: Medium-Term Management Plan “Shift to the Smart SI Plus”
Medium-Term Management Plan “Shift to the Smart SI Plus” Status of Key ２ Measures We will expand our business into new domains based around our existing SI business and acquire the capabilities needed for new business models in an aim to become a new type of next-generation system integrator. Expand
Slide 11: Core Strategy 1: Overview of the Next-Generation SI Business
Status of Key ２ Measures Core Strategy 1: Create High-Value Added SI Services Overview of the Next-Generation SI Business The next-generation SI business is steadily growing. The business has grown to make up 23.4% of Changes in Next-Generation SI Business Sales net sales, driven by agile developmen
Slide 12: Key Strategic Field – Agile Development Business
Status of Key ２ Measures Core Strategy 1: Create High-Value Added SI Services TOPICS: Key Strategic Field – Agile Development Business Net sales have grown steadily in the agile development business accompanying increased DX demand from customers. Agile Development Business Sales 1500 1250 Average g
Slide 13: Key Strategic Field – Information System Security Business
Status of Key ２ Measures Core Strategy 1: Create High-Value Added SI Services TOPICS: Key Strategic Field – Information System Security Business We offer total security solution Information system security business services that are conscious of system sales are already expected to surpass life cycl
Slide 14: Core Strategy 2: Support SI Model Reforms
Status of Key ２ Measures Core Strategy 2: Support SI Model Reforms We use innovative approaches to develop an SI process designed to ensure high productivity and high quality. ⚫ Improvement of quality standards for our services We have worked to improve the quality standards of our services by encou
Slide 15: Core Strategy 3: Expand Our Business Domain
Status of Key ２ Measures Core Strategy 3: Expand Our Business Domain We will acquire the capabilities needed for new business models and expand our business into new domains based around our existing SI business domain. Sales and Marketing Headquarters Area of Expansion 1: Sales business selling pro
Slide 16: Promote Proactive Forward-Looking Investment
Status of Key ２ Measures Promote Proactive Forward-Looking Investment ⚫ Increased investment in technology We have increased our investments in elemental technologies to further expand our new businesses and high-value added fields. Areas of Investment in FY2022 ・ Agile development, security, UXD, c
Slide 17: Outlook for the Fiscal Year Ending March 31, 2023
３ Outlook for the Fiscal Year Ending March 31, 2023 © 2022 TDC SOFT Inc. 17
Slide 18: Outlook for the Fiscal Year Ending March 2023 (By Field)
03/2023 ３ Outlook Outlook for the Fiscal Year Ending March 31, 2023 (By Field) IT Consulting & Services +22.5% YOY 5,200 5,000 4,200 3,877 We expect demand for cloud-based enterprise 3,200 2,458 solution services projects to continue and sales to 2,200 remain on a growth trajectory. 1,200 03/2021 03
Slide 19: Outlook for the Fiscal Year Ending March 2023 (By Field)
03/2023 ３ Outlook Outlook for the Fiscal Year Ending March 31, 2023 (By Field) IT Solutions for Public Corporations +8.0% YOY 10,000 9,500 9,000 8,795 Continued growth is expected centered around 7,945 projects supporting customers’ IT planning 8,000 7,000 driven by demand for DX from the 6,000 5,00
Slide 20: Financial Results and Dividend Forecast
３ Outlook for the Fiscal Year Ending March 31, 2023 Financial Results and Dividend Forecast Dividend (Millions of Operating Ordinary EPS Yen) Net Sales Net Income Forecast Profit Profit (Yen) (Yen) Interim 15.00 Full Fiscal 34,000 3,260 3,355 2,270 94.75 Year-end30.00 Year (+9.9%) (+9.9%) (+8.9%) (+
Slide 21: Details of Financial Results for Second Quarter of Fiscal 2022
４ Details of Financial Results for Second Quarter of Fiscal 2022 Ending March 31, 2023 © 2022 TDC SOFT Inc. 21
Slide 22: Financial Statements, Net Sales Analysis, Orders Received/Backlog
●Financial Statements ●Net Sales Analysis ●Orders Received/Backlog ●Operating Profit Analysis © 2022 TDC SOFT Inc. 22
Slide 23: Financial Statements: Statement of Income and Balance Sheet
４ Financial Statements Statement of Income Balance Sheet Q2 FY Q2 FY Q2 FY End of FY (Millions of Yen) Ending March Ended March Change (Millions of Yen) Ending March Ended Change 2023 2022 2023 March 2022 Net sales 16,793 14,661 +14.5% Total assets 20,724 21,072 -1.7% Labor expenses 5,935 5,737 +3.5
Slide 24: Financial Statements: Statement of Cash Flows
４ Financial Statements Balance of cash etc. at the 11,702 Statement of Cash Flows beginning of the period Profit before income taxes 1,922 Inventories (141) 50 (969) Notes and accounts 386 441 receivable - trade Accounts payable - other (430) CF from Accrued expenses (298) investing activities Other
Slide 25: Overview of Sales by Customer Industry
４ Overview of Sales by Customer Industry (millions of yen) Q2 FY Ended March Q2 FY Ended March Q2 FY Ending March 2023 2021 2022 4,648 3,898 3,504 3,260 2,850 2,525 2,062 2,548 2,513 2,404 2,237 2,285 2,034 1,924 1,398 1,640 1,501 1,404 Banking Credit Insurance Manufacturing Non-Manufacturing Public
Slide 26: Status of Orders Received/Backlog
４ Status of Orders Received/Backlog (Millions of Yen) 17,713 15,421 Orders received 13,415 8,400 8,831 7,793 6,650 7,200 Backlog of orders Net sales 13,186 14,661 16,795 Q2 FY Q2 FY Q2 FY Ended March Ended March Ending March 2021 2022 2023 © 2022 TDC SOFT Inc. 26
Slide 27: Operating Profit Analysis
４ Operating Profit Analysis Gross SG&A (Millions of Yen) profit expenses +584 +321 1,851 1,588 <Gross Profit> + Profit grew due to an increase in sales + Profitability improved due to a greater proportion of sales from the next-generation SI business <SG&A Expenses> + Proactively invested in busines
Slide 28: Note on this document
https://www.tdc.co.jp/ *Note on this document: The matters related to the forecasts of the TDC SOFT Group in this document have been determined based on currently available information and may change due to uncertain factors inherent in forecasts and/or changes in the situation surrounding business