Tsuzuki Denki Co., Ltd. · TSE:8157

Tsuzuki Denki — FY2021 Earnings Presentation

32 slides from Tsuzuki Denki's earnings presentation, May 27, 2021

  1. Slide 1: Financial Results for the Fiscal Year Ended March 31, 2021

    Tsuzuki Denki Co., Ltd. Financial Results for the Fiscal Year Ended March 31, 2021 May 27, 2021 Stock code: 8157 URL https://www.tsuzuki.co.jp/english/ Copyright © 2021 Tsuzuki Denki Co., Ltd.

  2. Slide 2: Agenda

    Medium-term Shareholder FY03/21 Results FY03/22 Forecast Sustainability Progress Return Agenda 1 FY03/21 Results Progress of Medium-term 2 Management Plan 3 FY03/22 Forecast 4 Shareholder Return ５ Sustainability Initiatives 1 Copyright © 2021 Tsuzuki Denki Co., Ltd.

  3. Slide 3: FY03/21 Results

    Medium-term Shareholder FY03/21 Results FY03/22 Forecast Sustainability Progress Return 1 FY03/21 Results 2 Copyright © 2021 Tsuzuki Denki Co., Ltd.

  4. Slide 4: Highlights

    Medium-term Shareholder FY03/21 Results FY03/22 Forecast Sustainability Progress Return Highlights Steady growth in existing businesses even with COVID-19 impact and results exceeded initial forecasts despite lower sales and profits YoY Information Network Solutions segment (+) Remote work demand, g

  5. Slide 5: Impact of COVID-19

    Medium-term Shareholder FY03/21 Results FY03/22 Forecast Sustainability Progress Return Impact of COVID-19 Orders recovered from Q3 onward ➢ Previously delayed sales activities resumed ➢ However, some industries were greatly affected by the pandemic (substantial declines in healthcare, railway, and

  6. Slide 6: Statement of Income

    Medium-term Shareholder FY03/21 Results FY03/22 Forecast Sustainability Progress Return Statement of Income (Millions of yen) (Reference) Change Change FY03/20 Initial forecast FY03/21 (amount) (YoY) Net sales 125,366 112,000 120,004 -5,362 -4.3% Gross profit 23,075 － 21,465 -1,609 -7.0% (Cost ratio

  7. Slide 7: Factors Affecting Sales

    Medium-term Shareholder FY03/21 Results FY03/22 Forecast Sustainability Progress Return Factors Affecting Sales (Billions of yen) 125.4 +10.6 120.0 -5.4 -4.3% YoY -12.0 +2.0 +2.1 -5.6 -2.5 FY03/20 Reactionary COVID-19 Sales of COVID-19 GIGA - Large orders FY03/21 Sales decline impact subsidiary impa

  8. Slide 8: Factors Affecting Operating Income

    Medium-term Shareholder FY03/21 Results FY03/22 Forecast Sustainability Progress Return Factors Affecting Operating Income (Millions of yen) -1,254 -992 -28.2% YoY -795 Decrease in gross profit -1,609 FY03/20 Lower sales Deterioration Decrease in Lower SG&A FY03/21 Operating of cost ratio unprofitab

  9. Slide 9: Results by Segment

    Medium-term Shareholder FY03/21 Results FY03/22 Forecast Sustainability Progress Return Results by Segment (Millions of yen) Net sales Operating income Change Change Change Change FY03/20 FY03/21 FY03/20 FY03/21 (amount) (YoY) (amount) (YoY) Information Network 102,104 97,848 -4,256 -4.2% 4,289 2,96

  10. Slide 10: Sales by Business Model

    Medium-term Shareholder FY03/21 Results FY03/22 Forecast Sustainability Progress Return Sales by Business Model (Millions of yen) Ratios in parentheses 125,366 118,872 120,004 YoY 44,790 44,207 39,391 Equipment (33.1%) (35.7%) (36.8%) -1.3% Development 17,665 19,668 & (14.9%) 14,518 -26.2% (15.7%) (

  11. Slide 11: Orders and Backlogs by Business Model

    Medium-term Shareholder FY03/21 Results FY03/22 Forecast Sustainability Progress Return Orders and Backlogs by Business Model (Millions of yen) Orders Order backlog 121,655 122,916 121,226 (+0.4% YoY) 24,955 22,467 Equipment 40,659 43,733 44,557 (+7.9% YoY) 20,815 Development 9,532 & 18,563 14,296 8

  12. Slide 12: Progress of Medium-term Management Plan

    Medium-term Shareholder FY03/21 Results FY03/22 Forecast Sustainability Progress Return 2 Progress of Medium-term Management Plan 11 Copyright © 2021 Tsuzuki Denki Co., Ltd.

  13. Slide 13: Overview of Medium-term Management Plan (FY03/21 to FY03/23)

    Medium-term Shareholder FY03/21 Results FY03/22 Forecast Sustainability Progress Return 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 ＝ soci

  14. Slide 14: Digital Transformation (DX) Business: Progress and Future

    Medium-term Shareholder FY03/21 Results FY03/22 Forecast Sustainability Progress Return Digital Transformation (DX) Business: Progress and Future FY03/21 FY03/22 FY03/23 COVID-19 pandemic Recovery from Customer ICT investments: COVID-19 pandemic Workstyle reforms Business continuity Innovation Moder

  15. Slide 15: Key priority 1: Reforming our business structure by expanding services (1)

    Medium-term Shareholder FY03/21 Results FY03/22 Forecast Sustainability Progress Return Key priority 1: Reforming our business structure by expanding the service we offer (1) Service sales grew as a result of steadily capturing demand emerging from the COVID-19 pandemic 32.6% 35.0% 30.0% 80,000 Serv

  16. Slide 16: Key priority 1: Reforming our business structure by expanding services (2)

    Medium-term Shareholder FY03/21 Results FY03/22 Forecast Sustainability Progress Return Key priority 1: Reforming our business structure by expanding the service we offer (2) Strengthened cloud services by making ComDesign a subsidiary ➢ CT-e1 offering (SaaS contact center service) of ComDesign grew

  17. Slide 17: Key priority 2: Promoting data-driven businesses (1)

    Medium-term Shareholder FY03/21 Results FY03/22 Forecast Sustainability Progress Return Key priority 2: Promoting data-driven businesses (1) Focus areas started producing results D-VUE Service (industry-specific proprietary service using AI) deals closed: 16 ➢ Service mainly introduced to customers

  18. Slide 18: Key priority 2: Promoting data-driven businesses (2)

    Medium-term Shareholder FY03/21 Results FY03/22 Forecast Sustainability Progress Return Key priority 2: Promoting data-driven businesses (2) Progress in digital transformation (DX) initiatives Development of Electronic Contract DX Service ➢ Scheduled to be adopted by three model companies, making st

  19. Slide 19: Key priority 2: Promoting data-driven businesses (3)

    Medium-term Shareholder FY03/21 Results FY03/22 Forecast Sustainability Progress Return Key priority 2: Promoting data-driven businesses (3) Collaboration with JIG-SAW to accelerate IoT business Started discussions on building a strategic collaborative relationship that leverages each others' streng

  20. Slide 20: Key priority 3: Strengthening our management base (1)

    Medium-term Shareholder FY03/21 Results FY03/22 Forecast Sustainability Progress Return Key priority 3: Strengthening our management base (1) Aiming to strengthen profitability by spinning off the Electronic Devices business ➢ Established Tsuzuki Embedded Solutions on July 1, 2021 Operating - Declin

  21. Slide 21: Key priority 3: Strengthening our management base (2)-1

    Medium-term Shareholder FY03/21 Results FY03/22 Forecast Sustainability Progress Return Key priority 3: Strengthening our management base (2)-1 Building a foundation to support our endeavors ➢ Head office renewal Aiming to achieve "decent work” (rewarding work that respects employees) An office with

  22. Slide 22: Key priority 3: Strengthening our management base (2)-2

    Medium-term Shareholder FY03/21 Results FY03/22 Forecast Sustainability Progress Return Key priority 3: Strengthening our management base (2)-2 Started in-house experiments of the latest digital transformation (DX) solutions ➢ Introduce the next-generation "unmanned store", which is increasingly nee

  23. Slide 23: FY03/22 Forecast

    Medium-term Shareholder FY03/21 Results FY03/22 Forecast Sustainability Progress Return 3 FY03/22 Forecast 22 Copyright © 2021 Tsuzuki Denki Co., Ltd.

  24. Slide 24: FY03/22 Forecast

    Medium-term Shareholder FY03/21 Results FY03/22 Forecast Sustainability Progress Return FY03/22 Forecast Sales and profit forecasts based on market conditions and COVID-19 recovery trends ➢ Market environment Information Network: COVID-19 pandemic triggered digitization among companies and ICT inves

  25. Slide 25: Shareholder Return

    Medium-term Shareholder FY03/21 Results FY03/22 Forecast Sustainability Progress Return 4 Shareholder Return 24 Copyright © 2021 Tsuzuki Denki Co., Ltd.

  26. Slide 26: Shareholder Return

    Medium-term Shareholder FY03/21 Results FY03/22 Forecast Sustainability Progress Return Shareholder Return FY03/21 dividend at JPY46, payout ratio at 34.3% Aiming to maintain stable dividends with a payout ratio of around 30%. Dividend per share and payout ratio Dividend yield Year-end price Commemo

  27. Slide 27: Sustainability Initiatives

    Medium-term Shareholder FY03/21 Results FY03/22 Forecast Sustainability Progress Return 5 Sustainability Initiatives 26 Copyright © 2021 Tsuzuki Denki Co., Ltd.

  28. Slide 28: Sustainability at the Tsuzuki Group: Materiality

    Medium-term Shareholder FY03/21 Results FY03/22 Forecast Sustainability Progress Return Sustainability at the Tsuzuki Group Materiality Determined three key issues (providing value to society) We will continue to work with our customers to create a sustainable society through our business Three key

  29. Slide 29: Press Releases

    Reference Press Releases No. Date Content 1 2020/10/6 Functional enhancements to IntrameriT, our proprietary groupware Started in-house demonstration testing of digital transformation (DX) services for the 2 2020/11/10 new normal era 3 2020/11/13 Started development of electronic contract DX service

  30. Slide 30: Stock Price History (as of May 26, 2021)

    Reference Stock Price History (as of May 26, 2021) (Volume: Shares) (Stock price: Yen) 1,400,000 2,500 1,200,000 2,000 1,000,000 1,500 800,000 600,000 1,000 400,000 500 200,000 0 0 29 Copyright © 2021 Tsuzuki Denki Co., Ltd.

  31. Slide 31: Contact

    Contact Tsuzuki Denki Co., Ltd. Contact Corporate Planning Division, Management Strategy 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/english/ Disclaimer The forward-looking stateme

  32. Slide 32: Copyright © 2021 Tsuzuki Denki Co., Ltd.

    Copyright © 2021 Tsuzuki Denki Co., Ltd.

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