Daiwabo Holdings Co., Ltd. · TSE:3107
Daiwabo — FY2024 Earnings Presentation
70 slides from Daiwabo's earnings presentation, May 9, 2024
Slide 1: Fiscal Year Ended March 2024 Financial Results and Medium-Term Management Plan
Fiscal Year Ended March 2024 Financial Results and Medium-Term Management Plan May 9, 2024 Daiwabo Holdings Co., Ltd. (Stock code: 3107) https://www.daiwabo-holdings.com/
Slide 2: Flow of Explanation
Flow of Explanation 1. Settlement of Accounts for the Fiscal Year Ended March 2024 _P 2 2. Business Outlook for the Full Term of the Fiscal Year Ending March 2025 _P19 3. Medium-Term Management Plan (March 2025 to March 2027) _P22 [References] _P51 ➤ “Transaction Volume” of IT Infrastructure Distrib
Slide 3: Settlement of Accounts for the Fiscal Year Ended March 2024
Settlement of Accounts for the Fiscal Year Ended March 2024 ©2024 Daiwabo Holdings Co., Ltd. 2
Slide 4: Independence of Fiber Business
Independence of Fiber Business May 15, 2023: Our Company announced Considerations for the Business Portfolio (Independence of Fiber Business). November 22, 2023: Our Company resolved to transfer 85% of its shares in Daiwabo Co., Ltd. to Aspirant Group Inc. March 27, 2024: The share transfer was comp
Slide 5: Consolidated Results Highlights
Consolidated Results Highlights Fiscal year ended March 2024 (April 1, 2023 - March 31, 2024) Both net sales and profit grew as IT Infrastructure Distribution Business constantly captured IT investment demand for companies and government offices PC demand rose in the fourth quarter, and the number
Slide 6: Net Sales for the Fiscal Year Ended March 2024
Net Sales for the Fiscal Year Ended March 2024 1Q 2Q 3Q 4Q Application of the Accounting Standard for Revenue 1,043,534 Recognition 967,760 967,760 903,918 333,703 Net sales million yen 763,838 292,488 266,308 224,770 + 7.1 % against the previous fiscal year (announced on March 28) 285,327 229,353 2
Slide 7: Operating Income for the Fiscal Year Ended March 2024
Operating Income for the Fiscal Year Ended March 2024 1Q 2Q 3Q 4Q 売上⾼営業利益率 Operating income margin 3.4% 3.2% 35,028 3.1% 3.1% Operating income 30,963 million yen 30,963 13,826 27,944 + 10.8% against the previous fiscal year 24,059 12,049 9,181 10,170 Operating income margin 3.2% 10,348 6,121 +4.3% a
Slide 8: Consolidated Operating Results for the Fiscal Year Ended March 2024
Consolidated Operating Results for the Fiscal Year Ended March 2024 Compared to Results Compared Plan at the forecast Compared 2023/3 2024/3 Change previous (Revised on to results beginning to plan term March 28) forecast of the term (Million yen) Net sales 903,918 967,760 +63,841 +7.1% 962,000 +0.6
Slide 9: Consolidated Financial Situation and Cash Flows
Consolidated Financial Situation and Cash Flows During the Fiscal Year Ended March 2024 (Million yen) 2023/3 2024/3 Change Major reasons for change Decrease in fixed assets in Fiber Total assets 406,688 405,256 (1,431) Business Decrease in retained earnings of Net assets 143,961 142,133 (1,828) Fibe
Slide 10: Operating Results by Segment
Operating Results by Segment for the Fiscal Year Ended March 2024 Compared to 2023/3 2024/3 Change (Million yen) previous term IT Infrastructure Distribution 828,997 894,693 +65,696 +7.9% Fibers 61,980 59,210 (2,770) (4.5%) Net sales Industrial Machinery 12,170 13,213 +1,043 +8.6% Others 770 642 (12
Slide 11: Segment Mix
Segment Mix Industrial Machinery Percentage of net sales 1.4% Fibers 2023/3 2024/3 6.1% IT Infrastructure Distribution 91.7% 92.4% Fibers 6.9% 6.1% Industrial Machinery 1.3% 1.4% Net sales 967,760 million yen Percentage of operating income 2023/3 2024/3 IT Infrastructure Distribution 90.9% 91.2% IT
Slide 12: IT Infrastructure Distribution Business
IT Infrastructure Distribution Business (Million yen) Application of the Accounting Transaction volume *Net sales under the Standard for Revenue old standard 961,609 million yen [+8.4% compared to previous term] Recognition Net sales 894,693 million yen [+7.9% compared to previous term] Operating in
Slide 13: IT Infrastructure Distribution Business Comparison in Quarters (4Q)
IT Infrastructure Distribution Business Comparison in Quarters (4Q) with Previous Fiscal Year (Million yen) Difference in 4Q results from the previous fiscal year +10.7% Number of PCs shipped +16.7% 272,417 Shipments rose as there were signs of rising demand toward a Windows 246,180 update iKAZU
Slide 14: Domestic PC Market Share and Product Category Composition
Domestic PC Market Share and Product Category Composition We are involved in at least one in three PCs for <DIS transaction volume trends by category> corporate use. Compared to Composition ratio previous term 当社PC出荷台数（千台） Number of our PCs shipped (thousand units) 5,136 PC unit alone* 45.3% +9.1% D
Slide 15: Results of iKAZUCHI
Results of iKAZUCHI iKAZUCHI handling volume (Million yen) Total sales to sales partners through the subscription management portal iKAZUCHI “iKAZUCHI” (included in Software) Trend in handling volume 12-month cumulative (taking annual charges, etc. into account) 28,505 (Million yen) 2024/3 +39.1%
Slide 16: Fiber Business
Fiber Business (Million yen) Net sales 59,210 million yen [(4.5%) compared to previous term] Operating income 1,580 million yen [+5.4% compared to previous term] Review of the business The divisions struggled in profits due to a stagnant Chinese market in the 61,033 58,289 61,980 59,210 Synthetic
Slide 17: Industrial Machinery Business
Industrial Machinery Business (Million yen) Net sales 13,213 million yen (+8.6% compared to previous term) 12,170 13,213 11,582 11,610 Operating income 1,032 million yen (+16.4% compared to previous term) 2021/3 2022/3 2023/3 2024/3 Review of the business Total orders received by members of Japan
Slide 18: Consolidated Balance Sheet for the Fiscal Year Ended March 2024
Consolidated Balance Sheet for the Fiscal Year Ended March 2024 (Pages 4-5 in Brief of Consolidated Settlement of Account) 2023/3 2024/3 Change 2023/3 2024/3 Change (Million yen) Current assets 354,188 377,245 +23,057 Current liabilities 231,884 239,742 +7,858 Notes payable and Cash and deposits 52,
Slide 19: Consolidated Statement of Operations for the Fiscal Year Ended March 2024
Consolidated Statement of Operations for the Fiscal Year Ended March 2024 (Page 6 in Brief of Consolidated Settlement of Account) Compared to 2023/3 2024/3 Change (Million yen) previous term Results Percentage Results Percentage Net sales 903,918 967,760 +63,841 +7.1% Gross profit 70,523 7.8% 78,209
Slide 20: Business Outlook for the Fiscal Year Ending March 2025
Business Outlook for the Full Term of the Fiscal Year Ending March 2025 ©2024 Daiwabo Holdings Co., Ltd. 19
Slide 21: Full-Year Performance Forecast for the Fiscal Year Ending March 2025
Full-Year Performance Forecast for the Fiscal Year Ending March 2025 2024/3 2025/3 Compared to Change (Million yen) (Results) (Forecast) previous term Amount Percentage Amount Percentage Net sales 967,760 975,000 +7,239 +0.7% IT Infrastructure 894,693 962,650 +67,956 +7.6% Distribution Industrial Ma
Slide 22: Shareholder Return
Shareholder Return Fiscal Year Ending March 2025 267.47 (forecast) At the end of 233.24 Interim Annual total FY Dividend per share 220.27 35 yen 35 yen 70 yen 178.14 202.79 Acquisition of Approx. 10 billion yen treasury shares (2024/5/10 - 2025/1/31) 174.47 Dividend ratio 30.0% 35 Total payout ratio
Slide 23: Medium-Term Management Plan (March 2025 to March 2027)
Medium-Term Management Plan (March 2025 to March 2027) ©2024 Daiwabo Holdings Co., Ltd. 22
Slide 24: Review of Previous Medium-Term Management Plan
1 Review of Previous Medium-Term Management Plan 2 Group Philosophy Structure / Medium- to Long-term Vision “2030 VISION” 3 Medium-Term Management Plan (March 2025 to March 2027) ©2024 Daiwabo Holdings Co., Ltd. 23
Slide 25: Previous Medium-Term Management Plan and Results Summary
Previous Medium-Term Management Plan and Results Summary Both net sales and operating income expanded steadily amid a severe management environment that included the longer delivery timing of equipment due to semiconductor shortages, supply chain disruptions and surging prices We carried out a b
Slide 26: Previous Plan and Results: Business Performance
Previous Medium-Term Management Plan and Results Business Performance (On a consolidate basis) Although the plan failure to achieve in 2022/3 due to Surging raw material and fuel costs and a delay supply issues, we have fulfilled the plan from the in a market recovery considerably affected the Where
Slide 27: Previous Plan and Results By Segment
Previous Medium-Term Management Plan and Results By Segment ■ 2022/3 ■ 2023/3 ■ 2024/3 (Billion yen) IT Infrastructure Distribution Business Industrial Machinery Business Fiber Business 22,838 2,283.8 24,149 2,414.9 368 369 36.9 2,009 200.9 36.8 1,794 179.4 7,916 [+13%] 8,946 894.6 791.6 134 132 13.
Slide 28: Previous Plan and Results Cash Allocation Policy
Previous Mid-Term Management Plan and Results Cash Allocation Policy Cash allocation items in the previous mid-term management plan Assessment Results Also consider a dividend increase by setting a Annual dividend: 60 yen → 62 yen → 64 yen actually distributed Dividend stable allocation of 60 yen pe
Slide 29: Group Philosophy Structure / Medium- to Long-term Vision 2030 VISION
1 Review of Previous Medium-Term Management Plan 2 Group Philosophy Structure / Medium- to Long-term Vision “2030 VISION” 3 Medium-Term Management Plan (March 2025 to March 2027) ©2024 Daiwabo Holdings Co., Ltd. 28
Slide 30: The Company's Group Philosophy Structure
The Company’s Group Philosophy Structure With the aim of realizing and performing Purpose, we chose five components as “common values that are respected as a company (the criteria for behavioral guidelines and business activities for group employees)” Our Existence Our Values Purpose Values Build br
Slide 31: Medium- to Long-term Vision 2030 VISION
Medium- to Long-term Vision “2030 VISION” Equity story The path to an “indispensable corporate group” Inject management resources to new business areas Create a business model that society hopes for centered on the IT field, thereby building a group system that leads to the further development of th
Slide 32: The Way the Company Should Be through 2030 VISION
The Way the Company Should Be that We Hope to Reach through “2030 VISION” For new areas, search the peripheral fields of the IT market of which we FY2030 target have knowledge, and advanced technology fields including AI- and DX- Consolidated related ones operating income AI XaaS Automation ITAD Sec
Slide 33: Concept of Growth through Realization of 2030 VISION
Concept of Growth through Realization of “2030 VISION” Accelerate growth speed in stages up to 2030 through the management that pursues business portfolio transformation Establishment of new areas Independence of Fiber Conventional Business growth trajectory New Medium-Term Management Plan Important
Slide 34: New Medium-Term Management Plan
1 Review of Previous Medium-Term Management Plan 2 Group Philosophy Structure / Medium- to Long-term Vision “2030 VISION” 3 Medium-Term Management Plan (March 2025 to March 2027) ©2024 Daiwabo Holdings Co., Ltd. 33
Slide 35: Medium-Term Management Plan Target Values
Medium-Term Management Plan Target Values 2025/3 2026/3 2027/3 (Billion yen) (Plan) (Plan) (Plan) Special demand and recoils from booms are assumed Net sales 975.0 1,050.0 1,000.0 Roll out measures with an emphasis on base earnings, as well Operating Effects of new businesses and M&A in the future 3
Slide 36: Medium-Term Management Plan Concept of Growth
Medium-Term Management Plan Concept of Growth Concept of net sales growth 1,050.0 10,500 1,000.0 plus extra Forecasts that become the premise of performance (Billion yen) plans 975.0 9,750 967.7 9,614 Steady organic growth can be expected even excluding intensive demand for terminals (a special de
Slide 37: Positioning of Medium-Term Management Plan
Positioning of Medium-Term Management Plan Three crucial years even from the viewpoint of working backward from “2030 VISION” 14,100 700 ■ Net sales 12,100 600 Reach 1 trillion yen 50 billion yen Operating income 967.7 billion yen 10,100 500 35 billion yen 8,100 669.5 billion yen 30.9 billion yen 40
Slide 38: New Medium-Term Management Plan Group Basic Policy
New Medium-Term Management Plan Group Basic Policy 01 02 03 Growth under the Challenge to break the Enhancement of stakeholder holding company “highest in the past” engagement structure Seek entry into new business areas Renew the past highest records in Enhance trusted relationships with as a
Slide 39: Business Environment Market Outlook
Business Environment Market Outlook Market size and growth potential Domestic market forecasts Growth areas we set our eyes on The IT market* is forecast to reach 22.7 trillion yen (+6.1%) in The IaaS market is expected to exceed the size of the PC 2027. (companies, government, and education) ma
Slide 40: Business Environment Changes to Social Environment
Business Environment Changes to Social Environment Efforts for new business opportunities will Stable procurement and logistics foundations determine medium- to long-term growth will become a more socially important presence IT will transform itself from being an object as a mere tool to being a s
Slide 41: IT Infrastructure Distribution Business Business Strategy
IT Infrastructure Distribution Business Business Strategy Upgrade the position and value in Deepen core areas as an industry- Plan by segment (Billion yen) growth areas leading company Expand market share in the cloud Expand business areas in the IT platform market device foundation Expand bus
Slide 42: Graphical Representation of Number of PCs Shipped
Graphical Representation of Number of PCs Shipped GIGA 2nd End of Support for Windows 10 Win10 EOS 5,136 Demand for replacement will increase as Windows 10 当社PC出荷台数（千台） Number of our PCs shipped nears the end of support in October 2025 (thousand units) Possible large impact on 2025/3 to 2026/3 3
Slide 43: iKAZUCHI
iKAZUCHI iKAZUCHI handling volume Trend in the number of registered dealers Total sales to sales partners through the subscription management portal “iKAZUCHI” Approx. 121,000 cases 登録販売店数(社) Number of registered dealers (companies) Aim at growth with CAGR of 30％ or more from 2024/3 to 2027/3 契約件数 N
Slide 44: Sales Efficiency Improvement and Low-Cost Operation
Sales Efficiency Improvement and Low-Cost Operation IT Infrastructure Distribution Business Results Strengthen the system infrastructure that supports net sales of over 1 ⼀⼈当たり売上⾼ Net sales per capita trillion yen 販管費率 SG&A ratio 7.6% Implement the following functional enhancement over the three-yea
Slide 45: Expansion of Areas where Value is Provided
Expansion of Areas where Value is Provided Provide diversifying and complicating needs and technologies in the form of “simple” IT business With reliable IT technology, Cloud solve social issues AI Security DX Address issues on a region-by- Strengthen solution capabilities region basis Subscription
Slide 46: Industrial Machinery Business Business Strategy
Numbers in the segment to be Industrial Machinery Business Business Strategy updated Expand business into potential markets for machine tools Plan by segment (Billion yen) Make proposals for improving production efficiency with machinery equipped with the energy-saving and automation functions I
Slide 47: Capital Allocation Policy
Capital Allocation Policy Graphical representation of capital allocation over a three-year cumulative period Borrowings from Utilize not only our own funds but also borrowings from outside, etc., outside 戦略的M&A Strategic M&A depending on the size of projects • CAPEX (capital investment and R&D) : 15
Slide 48: Approach to M&A
Approach to M&A Plan to push forward with M&A for further growth Carry out M&A through disciplined investment decisions with business areas and hurdle rates in mind Decision-making on investment and Business areas procurement Consider M&A mainly in the following business areas Make investment decisi
Slide 49: Sustainability (ESG) Activities
Sustainability (ESG) Activities Holding up “Contribution to solving social issues through business from an ESG perspective” as one of the most important themes, the Group has set materiality (key issues) to address and is making group-wide efforts foundation, enhance trust from stakeholders The Grou
Slide 50: Sustainability Human Capital Strategy
Sustainability Human Capital Strategy Medium-term management plan Human capital measures Drive diversity - Promotion of women's active participation, promotion of Roll out new businesses and products seniors' active participation, etc. Higher labor Human capital Step up recruitment of human resource
Slide 51: Status of Dialogue with Shareholders and Investors
Status of Dialogue with Shareholders and Investors (April 2023 - March 2024) Through timely and appropriate information disclosure and constructive dialogues with shareholders and investors, we aim to form an appropriate understanding of our business conditions and to enhance our corporate value by
Slide 52: References
References ➤ “Transaction Volume” of IT Infrastructure Distribution Business ➤ Corporate Profile ➤ Charts for Performance Trend ©2024 Daiwabo Holdings Co., Ltd. 51
Slide 53: "Transaction Volume" of IT Infrastructure Distribution Business
(Supplement) “Transaction Volume” of IT Infrastructure Distribution Business * Impact due to application of the Transaction volume “Accounting Standard for Revenue Transaction Volume Recognition.” (From the fiscal year ended March 31, 2022) The company records as net sales the net amount of Calcul
Slide 54: History of Daiwabo Information System (DIS)
History of Daiwabo Information System (DIS) 1982 DIS founded 1998 DIS-NET starts operations 2021/3 • Daiwabo used know-how from the internal development of • DIS put the “DIS-NET” sales management system into full- Breaks through 900 billion yen monitoring systems for production sites based on the u
Slide 55: The Business Structure of IT Infrastructure Distribution Business
The Business Structure of IT Infrastructure Distribution Business Manufacturers Sales partners (Suppliers) End user Sales management system Approx. 19,000 companies Approx. 1,400 companies Sales network of 94 bases nationwide Approx. 2.4 million items Trading companies Companies Partner support capa
Slide 56: Value Added by Distributors
Value Added by Distributors Sales partners Before collaboration Products/services Sales partners Manufacturers Selection / proposal Propose to customers after investigating and selecting products that meet customer needs (Suppliers) Payment End user Inventory / order Inventory management of each pro
Slide 57: Value Added by Distributors
Value Added by Distributors Manufacturers (Suppliers) Before collaboration Manufacturers (Suppliers) Products/services Product development Develop products and services based on customer needs through market Sales partners analysis End user Payment Sales / promotions Sales activities for individual
Slide 58: iKAZUCHI
iKAZUCHI Subscription management portal iKAZUCHI positing service Handling of billing formats including monthly, 130 vendors / 243 services yearly or pay-as-you-go (As of March 2024) Real-time management at the individual customer level Collaboration Business infrastructure and Integrated management
Slide 59: Greater Efficiency of Distribution Centers
Greater Efficiency of Distribution Centers Kansai Center (Kobe City) Kanto Central Center (Yoshimi Town, Saitama Prefecture) May 2020 Full-scale operation June 2016 Full-scale operation Warehouse area: 36,342 m2 Warehouse area: 44,753 m2 Robot storage system → Greater work efficiency and optimizatio
Slide 60: Industrial Machinery Business - Product Examples
Industrial Machinery Business - Product Examples - No. 1 share in Japan for both medium- and large-sized lathes (Cumulative shipments exceeded Vertical lathes 7,500 units) Highly evaluated as “OM for vertical lathes” in Japan and overseas A machine that is used to cut a workpiece by attaching
Slide 61: Consolidated net sales
Consolidated net sales Application of the Accounting (Million yen) Standard for Revenue Recognition 1,043,534 11,582 967,760 944,053 12,988 61,033 903,918 13,213 59,210 12,170 785,554 71,670 61,980 763,838 13,900 11,610 669,596 75,088 617,811 58,289 11,972 566,194 578,506 11,708 71,021 14,136 12,788
Slide 62: Consolidated operating income
Consolidated operating income (Million yen) 3.5% 3.4% 3.1% 3.1% 3.2% 2.9% 2.0% 2.1% 1.7% 1.5% 35,028 32,841 30,693 27,944 22,709 24,059 12,626 14,305 8,246 9,912 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 2021/3 2022/3 2023/3 2024/3 営業利益income Operating 売上⾼営業利益率 Operating income margin ©2024 Daiwabo
Slide 63: Consolidated Ordinary Profit and Consolidated Net Profit
Consolidated Ordinary Profit and Consolidated Net Profit (Million yen) 21.1% 22.3% 22.2% 15.5% 12.5% 12.9% 13.7% 9.5% 9.5% 10.0% 7.7% 6.6% 10.0% 7.3% 7.5% 3.2% 4.0% 5.0% 5.2% 35,781 3.0% 33,195 31,431 28,608 22,840 24,554 25,715 14,291 21,178 16,988 19,059 12,572 16,775 7,968 9,679 10,531 5,266 7,46
Slide 64: Quarterly Results
Quarterly Results (Million yen) 333,703 292,488 285,327 266,553 233,446 266,308 229,353 224,770 238,585 237,187 205,467 223,801 228,363 236,580 209,337 185,445 187,315 188,399 183,806 166,862 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2020/3 2021/3 2022/3 2023/3 2024/3 4.0% 4.1% 4.1
Slide 65: Quarterly Non-Consolidated Net Sales and Operating Profit
Quarterly Non-Consolidated Net Sales and Operating Profit (Million yen) 1Q 2Q 3Q 4Q 333,703 292,488 236,580 285,327 266,308 209,337 237,187 223,801 228,363 229,353 187,315 185,445 224,770 166,862 183,806 188,399 2021/3 2022/3 2023/3 2024/3 2021/3 2022/3 2023/3 2024/3 2021/3 2022/3 2023/3 2024/3 2021
Slide 66: Consolidated Total Assets, Net Assets and Capital Adequacy Ratio
Consolidated Total Assets, Consolidated Net Assets and Capital Adequacy Ratio (Million yen) 38.0% 35.2% 35.0% 33.4% 31.6% 25.3% 25.7% 24.4% 23.1% 23.0% 383,757 406,688 405,256 335,888 356,203 328,813 286,029 245,747 259,531 235,359 129,322 136,173 143,961 142,133 87,191 104,741 54,834 57,031 63,903
Slide 67: Capital Investment, Depreciation and R&D Expenses
Capital Investment, Depreciation and R&D Expenses (Million yen) 5,108 4,361 3,898 3,667 3,405 3,381 3,290 3,112 3,491 2,906 2,679 2,187 2,151 1,712 1,033 1,001 853 883 928 902 235 2019/3 2020/3 2021/3 2022/3 2023/3 2024/3 2025/3 (Plan) 2025/3（計画） Capital 設備投資額 減価償却額 Depreciation 研究開発費 R&D expenses i
Slide 68: Number of employees
Number of employees (Person) 6,504 6,344 6,284 6,294 5,617 5,794 5,654 5,683 379 5,650 5,671 5,432 409 426 452 476 496 456 441 490 454 443 3,970 3,721 3,713 3,701 3,155 3,001 3,070 2,841 3,002 3,130 2,910 2,867 455 2,381 1,815 1,803 1,795 1,813 1,831 1,925 2,002 2,054 2,083 2,080 1,779 2013/3 2014/3
Slide 69: Daiwabo Holdings Co., Ltd.
Daiwabo Holdings Co., Ltd. Head Office Nakanoshima Festival Tower West, 3-2-4 Nakanoshima, Kita-ku, Osaka 530-0005 Founded as Daiwa Boseki April 1, 1941 Established establishment of Daiwabo Holdings Co., Ltd. July 1, 2009 Consolidated 2,867 (as of March 31, 2024) employees Capital 21,696,744,900 yen
Slide 70: Daiwabo Holdings Co., Ltd.
Daiwabo Holdings Co., Ltd. News https://www.daiwabo-holdings.com/ https://www.daiwabo-holdings.com/ja/news.html Daiwabo Group List https://www.daiwabo-holdings.com/ja/group.html History https://www.daiwabo-holdings.com/ja/company/history.html [Disclaimer] The statements contained in this document re