Slide 1: Second Quarter of Fiscal 2023 Ending March 31, 2024 Financial Results Briefing
TSE Prime Securities code: 4687 Second Quarter of Fiscal 2023 Ending March 31, 2024 Financial Results Briefing November 20, 2023 TDC SOFT Inc. © 2023 TDC SOFT Inc. 1
Slide 2: Overview of Consolidated Financial Results for the Second Quarter of Fiscal 2023 Ending March
1 Overview of Consolidated Financial Results for the Second Quarter of Fiscal 2023 Ending March 31, 2024 2 Status of Key Measures for the Second Quarter of Fiscal 2023 Ending March 31, 2024 3 Outlook for the Fiscal Year Ending March 2024 Hiroyoshi KobayashiPresident and Representative Director 4 Det
Slide 3: Important Points in the Second Quarter of Fiscal 2023
Important Points in the Second Quarter of Fiscal 2023 Ending March 2024 Performance during the Quarter ● All business fields made solid progress, resulting in net sales of ¥18,856 million, a 12.3% increase year on year. ● Investments towards future business expansion, including the "Smart Work Conce
Slide 4: Overview of Consolidated Financial Results for the Second Quarter
１ Overview of Consolidated Financial Results for the Second Quarter of Fiscal 2023 Ending March 31, 2024 © 2023 TDC SOFT Inc. 4
Slide 5: Overview of Consolidated Financial Results for the Second Quarter
1 Overview of Consolidated Financial Results for the Second Quarter of Fiscal 2023 Ending March 31, 2024 Q2 FY Q2 FY Ending (Millions of yen) Ending Profit Margin YOY March 2023 March 2024 Net sales 18,856 - +12.3% 16,793 Gross profit 4,041 21.4% +10.0% 3,674 Operating profit 1,858 9.9% +0.4% 1,851
Slide 6: Highlights of Each Field: IT Consulting & Services; IT Solutions for Financial Services
Overview of 1 Financial Results Highlights of Each Field IT Consulting & Services Provides IT strategy and systemization concept planning to facilitate customers’ +27.1% YOY DX, as well as technical consulting, educational services, in-house cloud 3,800 applications, and solution services including
Slide 7: Highlights of Each Field: Public Corporations; Platform Solutions
Overview of 1 Financial Results Highlights of Each Field IT Solutions for Public Corporations +7.9% YOY Provides integrated IT solutions for the distribution, manufacturing, service, 5,200 and public sectors, including systemization planning, design, development, 4,953 and maintenance 4,800 4,591 So
Slide 8: Status of Key Measures for the Second Quarter
2 Status of Key Measures for the Second Quarter of Fiscal 2023 Ending March 31, 2024 © 2023 TDC SOFT Inc. 8
Slide 9: Medium-Term Management Plan Shift to the Smart SI Plus
Medium-Term Management Plan “Shift to the Smart SI Plus” Status of 2 Key Measures We will expand our business into new domains based around our existing SI business and acquire the capabilities needed for new business models in an aim to become a new type of next-generation system integrator. Expand
Slide 10: Core Strategy 1: Overview of the Next-Generation SI Business
Status of 2 Key Measures Core Strategy 1: Create High-Value Added SI Services Overview of the Next-Generation SI Business Next-Generation SI Business Net Sales The next-generation SI business 5,000 marking significant expansion 4,301 has grown more than fivefold in the last 4,000 3,933 five years, d
Slide 11: Pursuing High-value-added SI Services (Status of Key Strategic Fields)
2 Status of Pursuing High-value-added SI Services (Status of Key Key Measures Strategic Fields) Agile Development Business Information System Security Business Maintain net sales growth by securing and Market is tending toward expansion, training engineers and further growth is expected throughout t
Slide 12: Development of New Internal System, PROJECT IQ
Status of 2 Key Measures Core Strategy 2: Support SI Model Reforms Development of New Internal System, PROJECT IQ ⚫ Boost productivity and eradicate troubled projects ■ Project performance evaluation feature This feature enables standardized quality assurance by quantitatively visualizing performanc
Slide 13: Expand Our Business Domain
Status of 2 Key Measures Expand Our Business Domain We will acquire the capabilities needed for new business models and expand our business into new domains based around our existing SI business domain. Target Target Business 2 Target Business business (1) 1 Target Business 3 Consulting Business Ser
Slide 14: Promote Proactive Forward-Looking Investment
Status of 2 Key Measures Promote Proactive Forward-Looking Investment +¥213 million Increased investment by approximately ¥213 million YOY, promoting proactive forward- looking investment 2022.3 2Q 2023.3 2Q Investment Amount Field of Investment (1) Field of Investment (2) Field of Investment (3) In
Slide 15: Outlook for the Fiscal Year Ending March 2024
3 Outlook for the Fiscal Year Ending March 2024 © 2023 TDC SOFT Inc. 15
Slide 16: Outlook for the Fiscal Year Ending March 2024 (By Field)
March 2024 3 Outlook Outlook for the Fiscal Year Ending March 2024 (By Field) IT Consulting & Services IT Solutions for Financial Services +11.6% YOY +5.0% YOY 5,200 5,733 6,400 18,750 16,700 14,393 15,900 4,200 3,877 16,000 13,250 3,200 10,500 2,200 7,750 1,200 5,000 2022.3 2023.3 2024.3 2022.3 202
Slide 17: Financial Results and Dividend Forecast
3 Outlook for the Fiscal Year Ending March 31, 2024 Financial Results and Dividend Forecast Profit Dividend attributable EPS (Millions of yen) Net sales Operating profit Ordinary profit forecast to owners of (Yen) (Yen) parent Full Fiscal Year 37,300 3,550 3,750 2,510 Year-end 40.00 (YOY) 105.31 (+5
Slide 18: Details of Financial Results for the Second Quarter
４ Details of Financial Results for the Second Quarter of Fiscal 2023 Ending March 31, 2024 18 © 2023 TDC SOFT Inc.
Slide 19: Financial Statements, Net Sales Analysis, Orders Received/Backlog
● Financial Statements ● Net Sales Analysis ● Orders Received/Backlog ● Operating Profit Analysis © 2023 TDC SOFT Inc. 19
Slide 20: Financial Statements: Statement of Income, Balance Sheet
4 Financial Statements Statement of Income Balance Sheet Q2 FY Ending Q2 FY Ended Q2 FY End of FY (Millions of yen) Change (Millions of yen) Ending March Ended Change March 2024 March 2023 2024 March 2023 Net sales 18,856 16,793 +12.3% Total assets 23,206 22,771 +1.9% Labor expenses 6,359 5,935 +7.1
Slide 21: Financial Statements: Statement of Cash Flows
4 Financial Statements Statement of Cash Flows Balance of cash, etc. at the 12,010 beginning of the period 66 (586) Profit (loss) before income taxes 1,930 674 Inventories (130) CF from Accrued expenses (364) investing (22) activities 12,165 Other (740) 12,010 Income taxes 674 CF from financing CF f
Slide 22: Overview of Sales by Customer Industry
4 Overview of Sales by Customer Industry Q2 FY Ended March 2022 Q2 FY Ended March 2023 Q2 FY Ending March 2024 (Millions of yen) 4,868 4,648 3,749 3,898 3,504 3,343 2,525 2,648 2,270 2,548 2,850 1,975 2,404 2,285 2,062 1,404 1,924 1,398 Banking Credit Insurance Manufacturing Non-Manufacturing Public
Slide 23: Status of Orders Received/Backlog
4 Status of Orders Received/Backlog 19,351 17,713 Orders received 15,421 8,400 8,831 8,700 8,585 Backlog of orders 7,793 Net sales 14,661 16,793 18,856 Q2 FY Ended Q2 FY Ended Q2 FY Ending (Millions of yen) March 2022 March 2023 March 2024 © 2023 TDC SOFT Inc. 23
Slide 24: Operating Profit Analysis
4 Operating Profit Analysis (Millions of yen) +366 +358 1,858 <Gross profit> 1,851 + Profit grew due to an increase in sales Sales Gross expenses profit <SG&A expenses> + Expanding the hiring of new graduates + Acquiring new technologies for the expansion of next-generation SI business + Relocating
Slide 25: https://www.tdc.co.jp/
https://www.tdc.co.jp/ *Note on this document: The matters related to the forecasts of the TDC SOFT Group in this document have been determined based on currently available information and may change due to uncertain factors inherent in forecasts and/or changes in the situation surrounding business