Intelligent Wave Inc. · TSE:4847
Intelligent Wave — 1H FY06/25 Earnings Presentation
29 slides from Intelligent Wave's earnings presentation, Feb 7, 2025
Slide 1: Financial Results for 1H (Interim Period) FY06/25
Financial Results for 1H (Interim Period) FY06/25 (July 1 to December 31, 2024) [Non-Consolidated] Intelligent Wave Inc. Announced on February 7, 2025 Copyright © INTELLIGENT WAVE INC. All rights reserved.
Slide 2: Financial Results for 1H FY06/25
Financial 2024年6月期１Q 業績と成果 Results for 1H FY06/25 Forecast for FY06/25 Progress of the Medium-Term Management Plan Reference Copyright © INTELLIGENT WAVE INC. All rights reserved. 2
Slide 3: Overview
Overview ■ Sales and profits increased due to steady growth in the mainstay payment domain. ■ Sales and profits are almost in line with the plan. ■ Orders on hand increased significantly due to a large project for infrastructure operation services and multi-year contracts for cloud services. Million
Slide 4: Sales by Business Domain
Sales by Business Domain ■ In the payment domain, sales in the FEP and fraud detection areas increased due to system upgrades by existing customers, and the number of companies using cloud service rose. Sales in others areas decreased temporarily on a decline in the number of projects for existing c
Slide 5: Top Five Clients by Sales
Top Five Clients by Sales ■ For DNP, security-related sales increased due to the introduction of new security products. ■ Sales for both the second and third “System Integrator” declined due to a large project for a credit card company that was shifted to the system development phase. Million yen Ch
Slide 6: Sales by Category
Sales by Category ■System development sales decreased due to the shift of development phases for a large project, but increased due to system upgrades for existing customers. ■Cloud services sales increased due to an increase in the number of users and addition of functions for existing users. ■ Sec
Slide 7: Operating income
Operating income ■ Gross margins in system development and maintenance in the payment domain remained steady, but gross profit margins declined as gross maegins in cloud services declined. We will continue to improve gross margins by enhancing productivity in system development and maintenance and a
Slide 8: Cloud Service Business
Cloud Service Business ■ Sales increased due to an increase in the number of users and addition of functions for existing users. ■ Infrastructure costs have increased due to delays in the infrastructure migration for cloud services. We will work on improving operational efficiency and adjusting serv
Slide 9: Amount of orders (by Category)
Amount of orders (by Category) ■ Received a large order for infrastructure operation services for a financial institution and will start providing such services from January 2025. ■ System development decreased due to the shift of development phases for a large project. ■ Cloud services increased du
Slide 10: Orders on Hand (by Category)
Orders on Hand (by Category) ■The order backlog for infrastructure operation services for financial institutions and multi-year contracts for cloud services and security increased. ■System development decreased due to the shift of development phases for a large project. Million yen ■…System Developm
Slide 11: Forecast FY06/25
Financial Results for 1H FY06/25 2025年6月期for業績予想 Forecast FY06/25 Progress of the Medium-Term Management Plan Reference Copyright © INTELLIGENT WAVE INC. All rights reserved. 11
Slide 12: FY06/25 Full-year Forecasts
FY06/25 Full-year Forecasts Million yen FY06/24 FY06/25 Change Actual Forecast [YoY] 1H 2H Full year 1H 2H Full year Net sales 6,946 7,572 14,518 7,500 8,500 16,000 ＋10.2% Payment 5,784 6,366 12,151 6,140 6,810 12,950 ＋6.6% Security 757 800 1,558 930 1,170 2,100 ＋34.8% Data communication and 403 404
Slide 13: FY06/25 Forecasts
FY06/25 Forecasts Million yen FY06/24(actual) FY06/25(forecast) 1H 2H Full year YoY 1H 2H Full year (actual) (Full year- (forecast) (2H) 1H actual) Net sales 6,946 7,572 14,518 7,540 8,459 16,000 +11.7％ Payment 5,784 6,366 12,151 6,166 6,783 12,950 +6.5％ Security 757 800 1,558 923 1,176 2,100 +46.9％
Slide 14: Shareholder Returns
Shareholder Returns The interim dividend is 15 yen per share, in line with the latest dividend forecast. The year-end dividend is expected to be 20 yen per share. 73.8 Interim dividend year-end dividend dividind payout ratio 40 57.9 40 48.8 40.6 42.3 45.1 40th Anniversary 35 35 10 of 10 yen Dividend
Slide 15: Progress of the Medium-Term Management Plan
Financial Results for 1H FY06/25 Forecast for FY06/25 中期事業計画進捗 Progress of the Medium-Term Management Plan Reference Copyright © INTELLIGENT WAVE INC. All rights reserved. 15
Slide 16: Medium-Term Management Plan (2025–2027)
Medium-Term Management Plan(2025–2027) We will aim to diversify our business and establish a foundation for sustainable growth, looking ahead to the 2030s. We will also develop our business in various fields, particularly in the payment, security, and technology domains, to bring value to people's l
Slide 17: Basic Policies
Basic Policies To prepare for the market environment of the 2030s, we will focus on three key areas of transformation: "business," "technology," and "human resources," to continue developing products and services that create new levels of reliability. 01 Transformation of Business ①Maximize the valu
Slide 18: Progress of the Medium-Term Management Plan (Payment Domain)
Progress of the Medium-Term Management Plan (Payment Domain) While advancing the maximization of value and productivity in the mainstay areas of FEP and fraud detection, we are also working to enlarge the payment domain and expand system operation services. Maximize value in existing businesses Expa
Slide 19: Progress of the Medium-Term Management Plan
Progress of the Medium-Term Management Plan We will focus on expanding our scale of business in the security and data communication and analysis infrastructure domains. In terms of R&D, we will incorporate cutting-edge technologies such as AI and leverage core technologies to enhance the functionali
Slide 20: Reference
Financial Results for 1H FY06/25 Forecast for FY06/25 Progress of the Medium-Term Management Plan 参考資料 Reference Copyright © INTELLIGENT WAVE INC. All rights reserved. 20
Slide 21: Cost of manufacturing
Cost of manufacturing Million yen FY06/24 FY06/25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Materials cost 10 7 9 5 17 5 Labor cost 745 744 737 718 770 747 Expenses 569 667 661 780 819 814 Subcontracting cost 1,085 1,124 1,163 1,151 1,064 1,032 Total manufacturing cost 2,411 2,544 2,571 2,656 2,672 2,600 Work in prog
Slide 22: SG&A expenses
SG&A expenses Million yen FY06/24 FY06/25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Salaries 387 382 381 405 407 428 Training and recruiting 24 12 9 35 18 12 Equipment and maintenance, etc. 127 108 113 111 108 112 Advertising 14 17 16 15 13 14 Others 137 137 115 128 127 131 Total 691 656 634 694 675 699 1H FY06/24 1H
Slide 23: Cash Flows
Cash Flows ＋1,480 Million yen △974 △657 Income before taxes ＋887 Purchase of intangible assets (798) D&A ＋611 Purchase of PP&E (172) A/R increase ＋601 A/P decrease (539) Dividends (656) Income taxes paid (499) 4,661 4,813 JPY 152mil decrease 30-Jun-24 Operating Activities Investing Activities Financ
Slide 24: Historical performance
Historical performance 15000 ■… Net sales ■ … Operating income Million yen Transition to TSE prime market 13000 Listing on the 1st Section of TSE 11000 9000 Inclusion into the DNP Group 7000 Listing on the JASDAQ market 5000 3000 1000 1985 86 87 88 89 90 91 92 93 94 95 96 97 98 99 2000 01 02 03 04 0
Slide 25: Reference) Redefinition of Business Domain Classification
Reference) Redefinition of Business Domain Classification We have reorganized our sales by business domain according to the functions we provide. We have also separated the sales of businesses that utilize our core technologies into the area of “data communication and analysis infrastructure,” with
Slide 26: Reference) Sales by Business Domain
Reference) Sales by Business Domain Million yen FY 06/24 Q1 Q2 Q3 Q4 Full year Net sales 3,158 3,787 3,805 3,766 14,518 Payment 2,678 3,106 3,176 3,190 12,151 FEP 1,150 1,342 1,568 1,308 5,370 Fraud detection 385 365 397 548 1,697 Acquiring 672 791 744 851 3,059 Others 470 607 465 482 2,024 Security
Slide 27: FY06/25 Forecasts by Category
FY06/25 Forecasts by Category Million yen FY06/24(actual) FY06/25(forecast) 1H 2H Full year YoY 1H 2H Full year (actual) (Full year- (forecast) (2H) 1H actual) Net sales 6,946 7,572 14,518 7,540 8,459 16,000 +11.7％ System development 3,457 3,551 7,009 3,479 3,860 7,340 +8.7％ Maintenance 798 832 1,63
Slide 28: Company overview
Company overview As of December 31,2024 Established December 27, 1984 Location Kayabacho Tower, 1-21-2 Shinkawa, Chuo-ku, Tokyo Employees 487 Parent company Dai Nippon Printing Co., Ltd. [50.73%] Capital stock JPY843.75k Shares 26,340,000 Shareholders 10,432 outstanding Ownership [%] % of shareholde
Slide 29: Intelligent Wave Inc.
These materials were produced to provide information concerning the company and its businesses. They are not intended as a solicitation for investment in securities issued by Intelligent Wave Inc. The opinions, forecasts, and other forward-looking statements in these materials are based on the compa