Densan System Holdings Co. Ltd. · TSE:4072
Densan System — Q1 FY2022 Earnings Presentation
17 slides from Densan System's earnings presentation, Jun 1, 2022
Slide 1: Presentation Materials for the 1Q FY2022 Results Briefing
Densan System Holdings Presentation Materials for the 1Q FY2022 Results Briefing Tokyo Stock Exchange Prime Nagoya Stock Exchange Premier Securities Code: 4072 Forward-looking statements contained in this document are based on current estimates and projections and include potential risks and uncerta
Slide 2: Table of Contents
Table of Contents • 1Q FY2022 Business Results Highlights P3 • 1Q FY2022 Transition in Quarterly Business Results P5 • 1Q FY2022 By Segment P6 • 1Q FY2022 Information Services Summary P7 • 1Q FY2022 Information Services in Detail P8 • 1Q FY2022 Payment Agency Services Summary P10 • Reference Documen
Slide 3: 1Q FY2022 Business Results Highlights
1Q FY2022 Business Results Highlights Y-o-y change in parentheses Net sales Operating income Net income attributable to shareholders of the parent company ¥11,822 million ¥613 million ¥562 million （7.3% Down） （33.3% Down） (2.5% Down) Business results Results for 1Q were lower than last year in ter
Slide 4: Business Results Highlights
1Q FY2022 Business Results Highlights (Unit: Million yen) Although erroneous calculations failed to predict that the new revenue standard would cause PSI to show a loss, the company's main focus is security, and orders are growing Sales and income declined due to a slump in digital textbook deve
Slide 5: Transition in Quarterly Business Results
1Q FY2022 Transition in Quarterly Business Results (Unit: Million yen) Chromebook sales decreased significantly due to the end of the GIGA School concept PSI sales dropped due to the new revenue standard, for the most part offsetting sales from Micro Research, which has been consolidated since 3
Slide 6: 1Q FY2022 By Segment
1Q FY2022 By Segment (Unit: Million yen) Payment agency services did not drop, due to the strengths of stock business Both sales and income for information services dropped sharply due to the mix of stock and flow businesses Net sales Operating income 12,000 900 195 4,562 Payment Agency 800 10,0
Slide 7: Information Services Summary
1Q FY2022 Information Services Summary (Unit: Million yen) For SI and software development, 1Q last year represented the final stage of the GIGA School concept, with sales of Chromebooks at approximately ¥1,300 million causing a reactionary decline Although information processing has been affect
Slide 8: Information Services in Detail: Google business
1Q FY2022 Information Services in Detail (Unit: Million yen) Google business Chromebook sales to academic Number of Google (Google Workspace) implementations market decreased significantly due to Cloud-related net sales the end of the GIGA School concept 2,041 1,931 2,017 2,019 Although Chromebo
Slide 9: Information Services in Detail: BPO business
1Q FY2022 Information Services in Detail (Unit: Million yen) BPO business Although the COVID-19 pandemic has Number of items processed Net sales had some effect, both the number [Thousands] cases and the amount of them were in 94,201 excess of last year 79,974 77,297 63,263 Invoice preparation s
Slide 10: Reference Documents: Payment Agency Service Subsegments
Reference Documents [Payment Agency Service Subsegments] Created subsegments to match financial statements Subsegments for past financial New subsegments Details statements Payment slip services and bank account transfer services that allow payment at major convenience stores, etc. Convenience sto
Slide 11: Payment Agency Services Summary
1Q FY2022 Payment Agency Services Summary (Unit: Million yen) Growth in sales for payment and collection agency services was poor year-on-year (2.1%), but is expected to recover with the commencement of operations by a major payment processor in the second half of the year Online payment service
Slide 12: Payment and collection agency service/Online payment service
1Q FY2022 Payment Agency Services in Detail (Unit: Million yen) Payment and collection agency service/Online payment service Payment and collection agency services Number of items processed are focused on PAYSLE [Thousands] 230,504 Cashless payments are still around 2.6% 216,262 243,452 in 1Q, b
Slide 13: Remittance service/Payment agency peripheral services
1Q FY2022 Payment Agency Services in Detail Remittance service/Payment agency peripheral services Remittance service (international Number of items processed remittances) 500 International remittances Domestic remittances [Thousands] Although there is a feeling that things 450 have turned a corner
Slide 14: Topics: Challenge1000/New Business
1Q FY2022 Topics [Challenge1000/New Business] Regional (Tokai region) DX progress March 1, 2022: Acquired a part-share of Juroku Computer Services Co., Ltd., a subsidiary of Juroku Financial Group, Inc. ("16FG"). Renamed the company to Juroku Densan Digital Service Co. Ltd., (JDDS), and began a jo
Slide 15: Topics: Challenge1000/Payment Services
1Q FY2022 Topics [Challenge1000/Payment Services] Insurance expense payment service platform for customers of Sumitomo Life Insurance "TREE PAYMENT" —Evolution in insurance premium payment service for use in a digital society— October 1, 2021: CSS and Densan System jointly developed and launched "
Slide 16: Topics: Impact of Social Conditions (Ukraine, COVID-19, etc.)
1Q FY2022 Topics [Summary of Impact of Social Conditions (Ukraine, COVID-19, etc.)] Information services faced delays in delivery and difficulties in negotiating business deals, both due to a shortage of semiconductors. The consequent requirement to increase development projects placed a greater l
Slide 17: Dividends
Dividends FY2021: ¥5 commemorative dividend for the transition to a holding company structure FY2022 forecast: Annual ordinary dividend of ¥35 per share (interim dividend of ¥17 and year-end dividend of ¥18) Commemorative dividend for the transition to a holding company structure ( 35 ) 35 ( 34
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