Densan System Holdings Co. Ltd. · TSE:4072
Densan System — FY2016 Earnings Presentation
37 slides from Densan System's earnings presentation, 2017
Slide 1: Presentation Materials for the FY2016 Results Briefing
Densan System Co., Ltd. Presentation Materials for the FY2016 Results Briefing Securities Code: 3630 Tokyo Stock Exchange, First Section Nagoya Stock Exchange, First Section
Slide 2: I. FY2016 Summary of Results
Ⅰ. FY2016 Summary of Results * Figures in tables and graphs are expressed in units of one million yen, with amounts less than one million yen rounded down * Values expressed as a per cent are rounded off to two decimal places 情報 サービス事業 1
Slide 3: FY2016 Financial Summary
FY2016 Financial Summary 2 Unit: million yen (Amounts less than one million yen are rounded down) FY2015 FY2016 Year-over-year Consolidated Compared to plan Actual Plan Actual (YoY) change Sales 28,956 31,500 30,369 1,412 4.9% -1,130 -3.6% Operating income 1,042 1,270 1,125 83 8.0% -144 -11.4% Opera
Slide 4: 1H and 2H compared with the previous FY and Plan
1H and 2H compared with the previous FY and Plan 3 Year-over-year change Compared to plan Sales Sales 35,000 35,000 30,000 30,000 25,000 15,591 25,000 20,000 14,808 16,766 15,591 2H 2H 20,000 15,000 1H 1H 15,000 10,000 10,000 14,149 14,777 5,000 14,733 14,777 5,000 0 0 FY2015 FY2016 Plan for FY2016
Slide 5: Net sales and Operating Income by Segment
Net sales and Operating Income by Segment 4 Unit: million yen FY2015 FY2016 Year-over-year change Compared to plan Segment Actual Plan Actual Change ％ Change ％ Information services Sales 15,122 16,500 15,320 197 1.3% -1,179 -7.2% Operating income 484 700 516 32 6.6% -183 -26.2% Profit margin 3.2% 4.
Slide 6: Information Services Segment
Information Services Segment 5 Unit: million yen (Amounts less than one million yen are rounded down) Information FY2015 FY2016 Year-over-year change Compared to plan services business Actual Plan Actual Net sales 15,122 16,500 15,320 197 1.3% -1,179 -7.2% (breakdown by service) SI and software deve
Slide 7: Cloud Services
Cloud Services 6 Cloud services for system integration Million yen Cloud services sales breakdown and software development Google事業 Google business FY2015 FY2016 2,500 Google事業以外のクラウドサービス Cloud services other than Google business 1,200 + ¥534 million 2,000 Number of companies with installations 1,00
Slide 8: BPO Segment (business process outsourcing)
BPO Segment (business process outsourcing) 7 1,000 operations YoY Comparisons of Number Percentage of processed 60,000 of Transactions items by service type Up 31% Order acceptance 50,000 agency 51,053 Data services Other 1% 40,000 entry services services 39,000 37,668 23% 19% 30,000 Issuing invoice
Slide 9: Payment Agency Services Segment (by service)
Payment Agency Services Segment (by service) 8 Unit: million yen (Amounts less than one million yen are rounded down) Payment agency FY2015 FY2016 Year-over-year Compared to plan services business Actual Plan Actual change Net sales 13,834 15,000 15,049 1,214 8.8% 49 0.3% (breakdown by service) Paym
Slide 10: Payment Services
Payment Services 9 Net Sales and Number of Sales: million yen Transactions Up 8.1% Operations: in 1,000’s YoY Comparison of Net Sales by Service 18,000 182,116 200,000 25.0% 16,000 167,535 180,000 22.2% 145,439 151,622 Up8.8% 20.0% 14,000 160,000 15,049 15.0% 12,000 13,724 140,000 8.7% 10.3% 12,368
Slide 11: Payment Innovation Segment
Payment Innovation Segment 10 No. of Sales of remittance services Counter Payment Collections Net sales: Sales/¥1 million No. of stores operations million yen 250 2,500 600,000 350 Up 75.2％ Up 62.5％ Sales Sales 300 200 2,000 500,000 No. of remittances 250 No. of stores with installations 400,000 Up
Slide 12: International Remittance Services
International Remittance Services 11 Number of Remittances Registered Users for International No. per No. of remittances in 2013 (per day) No. of remittances in 2014 (per day) People Remittances (Cumulative Total) month No. of remittances in 2015 (per day) No. of remittances in 2016 (per day) 80,000
Slide 13: Financial Information (1) Balance Sheet
Financial Information (1) Balance Sheet 12 Unit: million yen FY2015 FY2016 Consolidated balance sheet Change Main reasons for change Year-end Year-end [Reason for increase] Current assets 25,509 39,746 14,236 Money held in trust 12,908 million yen Cash and deposits 703 million yen Goodwill 429 milli
Slide 14: [Reference] Equity Ratio Details
[Reference] Equity Ratio Details 13 Million yen Current assets 16,000 The equity ratio (after excluding Non-current assets 14,000 any payment collection deposits) Liabilities Equity 12,000 5,873 has been running at an average 10,000 9,243 of 60% or higher. 8,000 169 Equity ratio (vs. debt + equity)
Slide 15: Financial Information (2) Cash Flows
Financial Information (2) Cash Flows 14 FY2015 year-end FY2016 year-end Unit: million yen [Increased funds] Income before income taxes 1,169 million yen Cash flows from Depreciation 492 million yen operating activities 806 1,354 Increase in other current liabilities [Decreased funds] 194 million yen
Slide 16: II. FY2017 Earnings Forecast
Ⅱ. FY2017 Earnings Forecast 情報 サービス事業 15
Slide 17: FY2017 Earnings Forecast
FY2017 Earnings Forecast 16 Unit: million yen (Amounts less than one million yen are rounded down) FY2016 FY2017 Consolidated Full-year actuals Full-year plan Variance Growth rate Sales 30,369 33,700 3,330 11.0% Operating income 1,125 1,170 44 3.9% Ordinary income 1,157 1,180 22 2.0% Net income 732
Slide 18: FY2017 Forecast (with first/second half details)
FY2017 Forecast (with first/second half details) 17 Sales 1,400 Operating Income 40,000 35,000 1,200 2H 30,000 2H 1,000 2H 699 17,712 715 25,000 2H 800 20,000 15,591 600 15,000 1H 400 15,987 1H 10,000 1H 1H 470 5,000 14,777 200 409 0 0 FY2016 actuals FY2017 plan FY2016 actuals FY2017 plan 1,400 Ordi
Slide 19: FY2017 Earnings Forecast by Half and Segment
FY2017 Earnings Forecast by Half and Segment 18 Unit: million yen (Amounts less than one million yen are rounded down) FY2016 FY2017 Year-over-year Year-over-year Segment Full year 1H 2H 1H actuals 2H actuals Full-year actuals 1H plan 2H plan Full-year plan Information services Sales 7,362 7,957 15,
Slide 20: FY2017 Earnings Forecast by Half and Segment
FY2017 Earnings Forecast by Half and Segment 19 20,000 Sales Sales of payment agency services 18,000 Sales of information services Info. Sales Pymt. Sales 16,000 8,193 14,000 8,006 7,634 7,414 2H 1H 2H 1H 12,000 10,000 plan plan plan plan 54.4% 45.6% 50.6% 49.4% 8,000 9,519 6,000 7,362 7,980 7,957 4
Slide 21: Forecast by Individual Information Service
Forecast by Individual Information Service 20 Unit: million yen (Amounts less than one million yen are rounded down) Information services FY2016 FY2017 Year-over-year (full year) business 1H actual 2H actual Full-year actual 1H plan 2H plan Full-year plan Change % Net sales 7,362 7,957 15,320 7,980
Slide 22: Forecast by Individual Payment Agency Service
Forecast by Individual Payment Agency Service 21 Unit: million yen (Amounts less than one million yen are rounded down) Payment agency FY2016 FY2017 Year-over-year (full year) services 1H actuals 2H actuals Full-year actuals 1H plan 2H plan Full-year plan Change % Sales 7,414 7,634 15,049 8,006 8,19
Slide 23: III. Progress status of the Medium-Term Management Plan and PLAN 2020
Ⅲ. Progress status of the Medium- Term Management Plan (2017 - 2019) and PLAN 2020 情報 サービス事業 22
Slide 24: Medium-term Business Plan (FY2017 to FY2019)
Medium-term Business Plan (3-year plan: FY2017 to FY2019) 23 Unit: million yen Growth rate Medium-term plan (FY2017 to FY2019) (YoY) Consolidated FY2016 FY2017 FY2018 FY2019 (Average rate) Actual Plan Plan Plan Sales 30,369 33,700 37,500 41,300 10.8% Operating income 1,125 1,170 1,500 1,800 17.4% Or
Slide 25: 3-year Plan by Segment: FY2017 to FY2019
3-year Plan by Segment: FY2017 to FY2019 24 Operating Unit: million yen income: Operating Income Operating profit 45,000 Sales million yen Operating income (Info.) 営業利益（情報） Operating income (Pymt.) 営業利益（収納代行） margin: % Information services business 1,900 Adjustments for segment income Operating prof
Slide 26: Progress status of the Long-term Management Plan (PLAN 2020)
Progress status of the Long-term Management Plan (PLAN 2020) 25 ● Payment field ● Business processing field PLAN 2020 ＰＬＡＮ２０２０ Unit: 3 strategic fields (1) Payment agency services (5) BPO business million yen 戦略３分野８事業 business (6) Development, operation with 8 businesses (2) Remittance services and
Slide 27: Payment business field (promotion of overseas initiatives)
Payment business field (promotion of overseas initiatives) 26 Philippines selected as first country for overseas initiatives Conclusion of a memorandum of agreement on cooperation with CIS Bayad Center, Inc., the largest operator in the Philippines with at-the-counter payment collection in 4,400 loc
Slide 28: Efforts in the payment business field going forward
Efforts in the payment business field going forward 27 Electronic bar code New payment collection methods Fintech Overseas initiatives
Slide 29: Cloud business field
Cloud business field 28 Acquisition of the share capital of GOGA, Inc. (integration as subsidiary) About GOGA, Inc. Established in 2006 and from the first approved as partner in the map development of Google. As a frontrunner in Google Map business application services, active as developer of locati
Slide 30: Business expansion: What can be done with maps
Business expansion 29 What can be done with maps: Location information, static and dynamic IOT These are actively used across all types of industries [Transportation] [Retailing] [Self-governing bodies] - Real-time display of - Real-time display of map- - Information sharing and moving objects such
Slide 31: Efforts in the cloud business field going forward
Efforts in the cloud business field going forward 30 One Google-based business expansion Business platform enhancement by using the Company's data center Cloud transitioning of the SI business
Slide 32: Business processing field: Works Applications cooperation
Business processing field 31 In November 2016 the Company concluded a share underwriting agreement for a capital participation and cooperative arrangement with Works Applications Co., Ltd., a leading company in the ERP package industry. Content of the cooperative arrangement The arrangement opens th
Slide 33: Efforts in the business processing field going forward
Efforts in the business processing field going forward 32 Stock business increase through BPO business expansion Share expansion through improvements to automatic auction platforms Promotion of business consolidation and augmentation of synergy effects
Slide 34: IV. Stock Information
Ⅳ. Stock Information 情報 サービス事業 33
Slide 35: Shareholder Returns
Shareholder Returns 34 ● ¥25 per share Ordinary annual dividend on common stock Unit: yen dividend: 30 ¥25 Special dividend Annual Interim Ordinary dividend: 25 20 2.5 ¥24 → ¥25 15 9 10 11 12 12 13 7 Up 4.1% 10 5 8.5 10 11 11 12 12 7 ★ Continuous dividend 0 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016
Slide 36: Stock-related Information
Stock-related Information 35 Top 10 Shareholders (as of December 31, 2016) End of 50th Period - Distribution of Ownership Ownership Shareholder Number of Ratio shares 0.5% 2.5% 1.1% Individuals and others HIROTA Co.Ltd. 890,100 8.87% Densan System employee Financial institutions stock plan 869,566 8
Slide 37: Reference Materials: Business Indicators
Reference Materials: Business Indicators 36 42nd period 43rd period 44th period 45th period 46th period 47th period 48th period 49th period 50th period Fiscal year FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Net sales (million yen) 16,872 16,785 19,153 21,027 23,369 24,559 26,494