Intelligent Wave Inc. · TSE:4847
Intelligent Wave — Q3 FY06/22 Earnings Presentation
28 slides from Intelligent Wave's earnings presentation, May 10, 2022
Slide 1: Financial Results for 3Q FY06/22
Financial Results for 3Q FY06/22 (July 1, 2021 to March 31, 2022) [Non-Consolidated] Announced on May 10, 2022 Intelligent Wave Inc.
Slide 2: Financial Results 3Q FY06/22
Financial Results 3Q FY06/22 Key initiatives in 3Q FY06/22 Reference
Slide 3: Overview
Overview Million yen 3Q FY06/21 3Q FY06/22 Change Net sales 8,067 7,834 -233 -2.9% Operating 678 943 ＋265 ＋39.1% income Ordinary 696 964 ＋268 ＋38.5% income Net income 470 658 ＋188 ＋40.0% Amount of 8,279 11,768 ＋3,489 ＋42.1% orders Orders on hand 5,530 9,268 ＋3,738 ＋67.6% Copyright © 2022, INTELLIGEN
Slide 4: Sales by categories
Sales by categories (＋) System Development increased sales for both new and existing customers. (△) Hardware sales decrease due to fewer large sized project, but expected to achieve the full-year forecasts. Million yen 3Q FY06/21 3Q FY06/22 Change Net Sales 8,067 7,834 -233 System Development 3,710
Slide 5: Top three clients by sales
Top three clients by sales Million yen 3Q FY06/21 3Q FY06/22 Change Main projects Tokenization Service system (for Smartphone 1 . DNP 1,217 1,080 -136 payment transaction ) , System operations (24/7), Payment Platform* Disaster recovery System System 992 696 -295 for FEP* and Fraud 2. Integrator det
Slide 6: Operating income
Operating income (+) Improved margin of System Development, Maintenance and Cloud service. (△) Hardware sales decreased. SG&A increased ■…Net Sales ●…Operating margin Million yen Operating income 943, 8,067 7,834 +265 YoY Factors for changes 12.0% (Increase) Improved profitability of System Develo
Slide 7: Orders on hand
Orders on hand Million yen 9,268 7,963 4,210 6,075 5,688 5,912 5,786 5,530 4,236 5,319 5,202 5,317 5,022 1,934 1,762 1,609 2,611 2,401 2,016 2,026 2,202 1,853 2,068 2,061 1,882 1,615 2,075 1,769 1,873 1,732 1,540 1,485 1,321 2,990 2,080 1,851 2,039 1,816 2,112 1,534 1,512 1,679 1,559 1,629 1Q 2Q 3Q
Slide 8: Amount of orders
Amount of orders Million yen 4,686 4,252 3,230 3,016 3,056 2,829 2,562 2,660 2,612 2,402 2,254 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY06/20 FY06/21 FY06/22 Copyright © 2022, INTELLIGENT WAVE INC. All rights reserved. 8
Slide 9: Full-year Forecasts
Full-year Forecasts Million yen FY06/21 FY06/22 actual forecast 1H 2H Full year 1H 2H Full year YoY (actual) （Full year - (full year) 1H actual） Net sales 5,247 5,940 11,187 4,887 7,113 12,000 +7.3% Operating 405 725 1,130 478 842 1,320 income +16.8% （7.7%） （12.2%） （10.1%) （9.8%) （11.8%) （11.0%) (OM
Slide 10: Full-year Forecasts by categories
Full-year Forecasts by categories Million yen FY06/21 FY06/22 1H 2H Full year 1H ２H Full year YoY (actual) （Full year- (1H) 1H actual） Net Sales 5,247 5,940 11,187 4,887 7,113 12,000 +7.3% System 2,437 2,835 5,272 2,519 3,331 5,850 +11.0% Development Maintenance 647 710 1,357 728 712 1,440 +6.1% In-
Slide 11: Key initiatives in 3Q FY06/22
Financial Results 3Q FY06/22 Key initiatives in 3Q FY06/22 Reference
Slide 12: Cloud service business
Cloud service business Stable progress of sales as the initial plan. Gross profit exceeded the plan by the sales growth and the streamlined operating job. Million yen FY06/21 FY06/22 Q1 Q2 Q3 Q4 Full year Q1 Q2 Q3 Q4 Full year Net Plan 240 248 296 343 1,130 sales Actual 224 246 232 239 942 243 250 2
Slide 13: Orders for Cloud services
Orders for Cloud services Received satisfactory orders for IOASIS and large project for IGATES. These contracts start to be booked sales from April and contribute next fiscal year’s earnings. Million yen FY06/21 FY06/22 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Orders on hand 133 73 79 483 1,000 1,876 273 Amount of o
Slide 14: Reference) our cloud services
Reference) our cloud services ■IOASIS ■IGATES - SaaS product for providing operation system - Provides 24/7 non-stop switching operation for and supporting customers to launch acquiring payment network transaction internationally. business - SaaS product derived from NET+1, - Offer 24/7 system opera
Slide 15: To grow our business
To grow our business Set up divisions to enhance payment solution business since April. Started inclusive project to establish work-style for “post-pandemic”. ①Business Development Office Works for enhancing payment solution business and developing new solutions to achieve the goal of “15 ALL”. In c
Slide 16: New product and service
New product and service Launched new product and service for cyber-security and broadcasting. Implemented macro virus sanitization function to “Resec”, Israeli file sanitizing product, as the answer to the request from financial institutions. Security Reeled attentions from financial, defense, medic
Slide 17: Solutions for global and social issues beyond payment business
We are challenging to present solutions for global and social issues beyond payment business. Our mission To realize “Business Relaiability” We try to enhance the reliability of business for ours and customers both, by cooperation.
Slide 18: Reference
Financial Results 3Q FY06/22 Key initiatives in 3Q FY06/22 Reference
Slide 19: Cost of manufacturing
Cost of manufacturing Thousand yen FY06/21 FY06/22 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Materials cost 4,890 6,337 8,255 8,940 7,194 8,162 11,264 Labor cost 708,202 739,778 712,358 732,866 718,848 734,397 714,332 Expenses 363,448 353,011 368,936 399,624 431,898 413,397 403,356 Subcontracting 581,894 546,583 565,
Slide 20: SG&A expenses
SG&A expenses Thousand yen FY06/21 FY06/22 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Salaries 287,425 323,927 312,972 339,842 290,810 310,527 335,648 Training and 5,321 17,463 13,352 16,789 10,332 13,989 24,046 recruiting Rent 17,621 17,615 17,918 18,164 18,793 18,328 16,822 Advertising 1,586 4,239 3,228 7,145 12,691
Slide 21: Cash flows
Cash flows Million yen ＋770 -1,127 4,307 -348 3,602 Purchase of PP&E -197 Income before taxes 964 Purchase of -945 D&A 580 intangible assets A/R increase -313 A/P increase 147 Dividends -341 Inventory increase -118 Income taxes paid -382 JPY 704mil decrease 21年6⽉期末 30‐Jun‐21 Operating 営業活動 activitie
Slide 22: Net sales forecasts by categories
Net sales forecasts by categories Million yen FY06/21 FY06/22 3Q total 4Q Full year 3Q total 4Q Full year YoY (actual) （Full year- (1H) 3Q total） Net Sales 8,067 3,120 11,187 7,834 4,166 12,000 +7.3% System 3,710 1,562 5,272 3,859 1,991 5,850 +11.0% Development Maintenance 992 365 1,357 1,111 329 1,
Slide 23: Full-year Forecasts
Full-year Forecasts Million yen FY06/21 FY06/22 actual forecast 3Q total 4Q Full year 3Q total 4Q Full year YoY (actual) （Full year- (full year) 3Q total） Net sales 8,067 3,120 11,187 7,834 4,166 12,000 +7.3% Operating 678 452 1,130 943 377 1,320 income +16.8% （8.4%） （14.5%） （10.1%) （12.0%) （9.0%) （
Slide 24: Revised the category of sales
Revised the category of sales Revised categories to show the classification of sales based on the so-called “stock” and “flow” type in more detailed. Judged from the type of contract and the actual status of the services, we have classified projects and contracts that generate a certain amount of sa
Slide 25: Historical net sales (Stock/Flow)
Historical net sales （Stock/Flow） Million yen ■Stock ■Flow the rate of stock business 10,920 11,187 10,603 10,443 8,846 8,888 9,176 8,682 8,469 7,834 7,371 5,930 24.3% 19.0% 20.6% 16.9% 13.5% 13.0% 2,074 2,299 1,761 1,904 1,098 1,427 3Q FY06/17 FY06/18 FY06/19 FY06/20 FY06/21 FY06/22 Stock 1,098 1,4
Slide 26: Historical performance
Historical performance Million yen 11,187 ■…Net sales ■ …Operating income 10,603 10,920 10,443 8,469 7,137 7,205 6,695 6,558 6,367 6,160 5,891 5,870 5,505 5,527 5,257 5,241 4,844 5,174 4,956 4,762 1,854 1,528 1,482 1,177 1,130 921 1,036 678 731 702 371 389 417 484 547 228 358 321 131 145 01 02 03 04
Slide 27: Company overview
Company overview As of Dec 31,2021 Established December 27, 1984 Location Kayabacho Tower, 1-21-2 Shinkawa, Chuo-ku, Tokyo Employees 434 Parent company Dai Nippon Printing Co., Ltd. (50.71%) Capital stock JPY843.75k Shares outstanding 26,340,000 Shareholders 9,536 Ownership (%) % of shareholders Ind
Slide 28: 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