Densan System Holdings Co. Ltd. · TSE:4072
Densan System — FY2020 Earnings Presentation
24 slides from Densan System's earnings presentation, 2021
Slide 1: Presentation Materials for the FY2020 Results Briefing
Presentation Materials for the FY2020 Results Briefing Densan System Co., Ltd. Tokyo Stock Exchange, First Section Nagoya Stock Exchange, First Section Securities Code: 3630 Forward-looking statements contained in this document are based on current estimates and projections and include potential ris
Slide 2: FY2020 Business Results Highlights
FY2020 Business Results Highlights Y-o-y change in parentheses Net income attributable to Net Sales Operating income shareholders of the parent company 45,752 million yen 2,836 million yen 1,915 million yen (Up 13.8%) (Up 25.0%) (Up 22.9%) Business results ✔ Sales and income were much higher YoY ✔ O
Slide 3: FY2020 Business Results Highlights
FY2020 Business Results Highlights (Unit: Million yen) ✔ While sales were slightly below the upward revision, profits were significantly higher ✔ Profit margin improved by 0.6 points FY 12/2019 FY 12/2020 Y-o-y (%) Plan Attainment ratio Sales 40,202 45,752 13.8% 46,200 99.0% Operating income 2,268 2
Slide 4: Transition in Quarterly Business Results
FY2020 Transition in Quarterly Business Results (Unit: Million yen) ✔ In 4Q, it was possible to exceed the previous year for all periods ✔ Profit exceeded the plan at the beginning of the fiscal year by 450 million yen FY 12/2020 45,452 FY 12/2020 2,836 Plan (start of period) 44,000 Plan (start of p
Slide 5: By Segment
FY2020 By Segment (Unit: Million yen) ✔ Operating profit for information services exceeded 2 billion yen ✔ The profitability of payment agency services has also improved, and both sales and profit are steadily increasing Net Sales Operating Income 2,900 Payment 45,000 Payment 2,700 agency agency ser
Slide 6: Information Services Summary
FY2020 Information Services Summary (Unit: Million yen) ✔ Auto auction and GIGA School contributed in SI and software development ✔ In information processing, performance was poor for BPO and gasoline information processing due to the coronavirus outbreak FY 12/2019 FY 12/2020 Y-o-y Plan Attainment
Slide 7: Information Services in Details: Google business
FY2020 Information Services in Details (Unit: Million yen) Google business (SI and software development) Number of Google (Google Workspace) adopter companies ✔ Number of Google (Google 1,725 Workspace (formerly G Suite)) 1,931 1,499 1,776 adopter companies 1,246 : 1931 companies Sales of cloud rela
Slide 8: Information Services in Details: BPO business
FY2020 Information Services in Details (Unit: Million yen) BPO business (information processing) Number of items processed (in thousand items) ✔ Both the number of items and 81,493 79,974 sales struggled due to the significant 77,297 impact of the coronavirus outbreak ✔ Although invoicing agency 56,
Slide 9: Payment Agency Services Summary
FY2020 Payment Agency Services Summary (Unit: Million yen) ✔ Sales of mainstay payment slips increased due to nesting demand ✔ Remittance (refund) services with high profit margins boosted profit FY 12/2019 FY 12/2020 Y-o-y Plan Attainment ratio Amount Ratio Sales 17,477 18,604 1,126 6.4% 18,951 98.
Slide 10: Payment Agency Services in Details: Payment service
FY2020 Payment Agency Services in Details (Unit: Million yen) Payment service Number of items processed (in thousand items) ✔ The number of transactions has been growing steadily, and 230,504 216,262 the number of payments for the 198,235 210,165 year has exceeded 230 million Account transfer Paperl
Slide 11: Payment Agency Services in Details: Status of payment innovation
FY2020 Payment Agency Services in Details Status of payment innovation ✔ Counter payment service - 3,776 adopter stores ✔ The international remittance business became profitable for the full year (due to enhancement of WC store network [119 stores]) (Average number of remittances (day)) (Number of r
Slide 12: Topics: Exercise of second series of stock acquisition rights
FY2020 Topics Report on the completion of exercise of the second series of stock acquisition rights (September 29) ✔ Enables new business investment Capital 1,229 million yen → 2,469 million yen (+1,239 million yen) Capital reserve 929 million yen → 2,169 million yen (+1,239 million yen) Other capit
Slide 13: Topics: DSK deferred payment service
FY2020 Topics DSK deferred payment service ✔ July 1, 2020: Start of DSK deferred payment service Helps providers to reduce the risk of uncollectible receivables, reduce operating costs, and increase sales (1) Purchaser selects DSK deferred Provider payment (2) Credit review requested to the DSK Grou
Slide 14: Topics: Full-scale entry in the security business (M&A)
FY2020 Topics Full-scale entry in the security business (M&A) ✔ July 31, 2020: Acquired 100% of the shares of PSI Inc., an information security business company, and added it to the Densan System Group ✔ August 1, 2020: Established a Security Business Division to become more reliable Densan System G
Slide 15: Topics: Tono IDC expansion
FY2020 Topics Tono IDC expansion Tono IDC New module added to the building 3 modules to date DSK Tono IT Business Park Planned location for expansion of the next- generation new module Tono IDC Tono BPO Center
Slide 16: Topics: Participation in Google for Education Distance Learning
FY2020 Topics Participation in Google for Education™ Distance Learning Support Program for schools that are closed ✔ Increase in inquiries regarding Google for Education™ ✔ Classroom function to support online classes, assignment submissions, etc. ✔ Also supports the GIGA School concept Devices that
Slide 17: Long-Term Plan Challenge 1000
Long-Term Plan Challenge 1000 1,000 Taking on the challenge to become a company 950 with 100 billion yen in sales by 2027! 900 850 The coming of an era of great change that will radically 800 transform business! Let's take on a bold challenge! 750 ● Business processing ● Payment business 700 650 bus
Slide 18: Management Plan - Further Growth!
Management Plan - Further Growth! Transition to a holding company structure through a sole stock transfer ✔ The Group will establish Densan System Holdings Co., Ltd. on July 1, 2021, and shift to a holding company structure. [Objectives] [Outline of the newly established company (holding company)] E
Slide 19: Medium-Term Management Plan (Dec. 2021 to Dec. 2023)
Medium-Term Management Plan (3-year Plan from Dec. 2021 to Dec. 2023) (Unit: Million yen) ✔ Will not be profitable in 2021 due to planned investment in software ✔ DSK deferred payment is planned to be unprofitable until 2021 Grow th rate FY 12/2020 FY 12/2021 FY 12/2022 FY 12/2023 y-o-y Actual Plan
Slide 20: Forecast for FY2021
Forecast for FY2021 Impact of the coronavirus ✔ Continue business and services and minimize the negative impact by implementing measures such as staggered working hours, remote work, changing desk locations, and staggered lunch breaks that can be implemented in each department Become a company that
Slide 21: FY2021 Business Results Projections
FY2021 Business Results Projections (Unit: Million yen) ✔ In sales, the consolidation of PSI from July contributed to the half-year increase ✔ Profit is expected to increase slightly due to the coronavirus outbreak and investment in software Change FY 12/2020 FY 12/2021 projection in amount Y-o-y Sa
Slide 22: FY2021 Information Services Projection
FY2021 Information Services Projection (Unit: Million yen) ✔ In SI and software development, factors including the GIGA School concept contributed to sales growth ✔ Despite the coronavirus outbreak, sales are expected to increase for information processing due to strong invoicing agency and back-off
Slide 23: FY2021 Payment Agency Services Projection
FY2021 Payment Agency Services Projection (Unit: Million yen) ✔ In addition to the steady acquisition of new customers and the expectation of sequential operation, the impact of nesting consumption and the shift to cashless transactions has resulted in strong growth in payment slip settlement ✔ Plan
Slide 24: Shareholder Returns
Shareholder Returns ✔ Annual ordinary dividend per share: ¥29 (interim dividend of ¥14 and year-end dividend of ¥15) 35 Interim Year‐end Special dividend 30 (Up 3.6%) 25 14 15 20 13 14 2.5 12 13 11 12 15 10 9 10 7 13 13 14 14 11 11 12 12 5 8.5 10 7 0 FY 12/2011 FY 12/2012 FY 12/2013 FY 12/2014 FY 12