Tsuzuki Denki Co., Ltd. · TSE:8157
Tsuzuki Denki — 1H FY03/24 Earnings Presentation
25 slides from Tsuzuki Denki's earnings presentation, Nov 8, 2023
Slide 1: Financial Results for the First Half of the Fiscal Year Ending March 31, 2024
Financial Results for the First Half of the Fiscal Year Ending March 31, 2024 and Update on the Medium-Term Management Plan November 8, 2023 Tsuzuki Denki Co., Ltd. Copyright © 2023 Tsuzuki Denki Co., Ltd.
Slide 2: Table of Contents
1 Financial Results for 1H FY03/24 ー Overview of Consolidated Results ー Sale of Electronic Devices Business ー Consolidated Earnings Forecast Table of ー Shareholder Return Contents 2 Update on Medium-term Management Plan ー Targets of Long-Term Vision and Medium-Term Management Plan ー 1H Progress 1 Co
Slide 3: Table of Contents
1 Financial Results for 1H FY03/24 ー Overview of Consolidated Results ー Sale of Electronic Devices Business ー Consolidated Earnings Forecast Table of ー Shareholder Return Contents 2 Update on Medium-term Management Plan ー Targets of Long-Term Vision and Medium-Term Management Plan ー 1H Progress 2 Co
Slide 4: Consolidated Results
Consolidated Results Achieved record 1H profits ・ Recorded steady sales mainly from order backlog. In addition to higher sales, improvement in cost ratio and reduction in SG&A expenses contributed to profit, and operating margin rose substantially ・ Profit attributable to owners of parent increased
Slide 5: Factors Affecting Operating Income
Factors Affecting Operating Income ■Positive: Effects of sales increase (+JPY1,111mn) : Higher sales in all businesses Improvement in cost ratio (+JPY202mn) : Improved substantially in Information Network Solutions business Lower SG&A expenses (+JPY16mn) : Decrease in personnel expenses due to headc
Slide 6: Results by Segment
Results by Segment ■Information Network Solutions Sales: Steady sales, especially in the equipment business (1H FY03/23 performance was affected by delivery delays due to semiconductor shortages) Operating income: In addition to higher sales, gross margin improved owing to pricing management and sta
Slide 7: Results by Business Model (Information Network Solutions)
Results by Business Model (Information Network Solutions ■Equipment In addition to PC and application licenses, sales of equipment for network construction contributed to sales However, orders fell owing to the absence of large projects compared to Q1 FY03/23 ■Development & Construction System devel
Slide 8: Results by Business Model (Electronic Devices)
Results by Business Model (Electronic Devices) ■Orders, Net Sales Strong sales of power semiconductors and LCD panels for in-vehicle equipment following the recovery of production in the automobile market Special demand (advanced orders) came to an end as the semiconductor shortage subsided ■Order B
Slide 9: Transfer of Shares in Tsuzuki Embedded Solutions and Three Other Companies
Transfer of Shares in Tsuzuki Embedded Solutions and Three Other Companies Achieved flexible reorganization of the Group under the Medium-Term Management Plan policy Going forward, we will concentrate management resources on the Information Network Solutions business to achieve further growth and bo
Slide 10: FY03/24 Consolidated Earnings Forecast [No Changes]
FY03/24 Consolidated Earnings Forecast [No Changes] Offset the drop in the Electronic Devices business by capturing the expanding market and enhancing earnings power ・ Four subsidiaries will be removed from the scope of consolidation from Q4 following the sale of the Electronic Devices business ・ Ma
Slide 11: Shareholder Return
Shareholder Return Dividend yield Achieve stable dividends with a target payout Year-end price Year-end price Year-end price ratio of 40%* JPY1,100 JPY1,657 JPY1,563 (minimum dividend on equity (DOE) ratio of 3.5%) Interim dividend: 38 yen; Year-end dividend: 38 yen 4.6% 5.0% 2.8% 3.2% 3.9% (planned
Slide 12: Table of Contents
1 Financial Results for 1H FY03/24 ー Overview of Consolidated Results ー Sale of Electronic Devices Business ー Consolidated Earnings Forecast Table of ー Shareholder Return Contents 2 Update on Medium-term Management Plan ー Targets of Long-Term Vision and Medium-Term Management Plan ー 1H Progress 11 C
Slide 13: Table of Contents
1 Financial Results for 1H FY03/24 ー Overview of Consolidated Results ー Sale of Electronic Devices Business ー Consolidated Earnings Forecast Table of ー Shareholder Return Contents 2 Update on Medium-term Management Plan ー Targets of Long-Term Vision and Medium-Term Management Plan ー 1H Progress 12 C
Slide 14: Financial Targets of Long-Term Vision and Medium-Term Management Plan
Financial Targets of Long-Term Vision and Medium-Term Management Plan [No Changes] We will maintain our Long-Term Vision and Medium-Term Targets and take on the challenge of further growing our Information Network Solutions business Innovation 2023 Transformation 2026 Long-Term Vision FY03/23 Result
Slide 15: Key Factor 1: Favorable Market Environment
Key Factor 1: Favorable Market Environment Changes in the external environment also serve as a tailwind and accelerate the growth of the ICT market Easing of COVID-19 restrictions, Increasing severity of social issues Advances in AI Everywhere recovery in investments (e.g., labor shortages, etc.) TR
Slide 16: Key Factor 2: Steady Improvement in Existing Areas and Opportunity Expansion
Key Factor 2: Steady Improvement in Existing Areas and Opportunity Expansion Existing areas, which account for more than 90% of sales, have a major presence and we are already seeing results from executing our strategies We will continue to thoroughly streamline and optimize our operations to captur
Slide 17: Key Factor 3: Taking on the Challenge of M&A
Key Factor 3: Taking on the Challenge of M&A Explore opportunities for growth by focusing on both growth and existing areas Fully leverage funds gained from the sale of the Electronic Devices business to speed up the pace of reform Growth areas and new areas are the initial main targets Medium-term:
Slide 18: Shareholder Return [No Changes]
Shareholder Return [No Changes] Achieve stable dividends and large dividend increases by raising the dividend payout ratio to 40% and introducing a dividend on equity (DOE) metric Dividend per share Until FY03/23 From FY03/24 Raise dividend payout ratio to 40%* Payout ratio of about 30% (Minimum div
Slide 19: Table of Contents
1 Financial Results for 1H FY03/24 ー Overview of Consolidated Results ー Sale of Electronic Devices Business ー Consolidated Earnings Forecast Table of ー Shareholder Return Contents 2 Update on Medium-term Management Plan ー Targets of Long-Term Vision and Medium-Term Management Plan ー 1H Progress 18 C
Slide 20: Business Progress
Business Progress Made progress in developing service infrastructure and reforming mindset in the field. Planning to accelerate growth through further business investment going forward Policies 1H initiatives by key priority Evaluation 1. Promote collaboration with other companies by leveraging core
Slide 21: Initiatives to Enhance Human Capital
Initiatives to Enhance Human Capital Carried out system expansion and culture reform aimed at strengthening the personnel supporting our business strategy Key priorities 1H initiatives Evaluation Three pillars Results 1. Develop leadership talent / 2. Develop diverse professional talent 3. Build tea
Slide 22: Topic: Our Approach to Solving Social Issues
Topic: Our Approach to Solving Social Issues We solve customer and social issues by using our expertise and technology and aim to engage in corporate activities that contribute to the sustainability of society . Logistics crisis Cyber attack Increasing sophistication and scale of cyber attacks Labor
Slide 23: Reference: Share Price Trends
Reference: Share Price Trends (Shares: Yen) (Volume: Number of shares) 3,000 250,000 2,500 200,000 2,000 150,000 1,500 100,000 1,000 50,000 500 0 0 2023/4/6 2023/5/6 2023/6/6 2023/7/6 2023/8/6 2023/9/6 2023/10/6 2023/11/6 4/6/2023 5/6/2023 6/6/2023 7/6/2023 8/6/2023 9/6/2023 10/6/2023 11/6/2023 22 C
Slide 24: Contact
Contact Tsuzuki Denki Co., Ltd. Contact Management Planning 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/ Disclaimer The forward-looking statements, including earnings forecasts, co
Slide 25: Bring to society “yohaku” filled with possibilities
Bring to society “yohaku ” filled with possibilities, hrough people, insight, and technology, together.