Dts Corporation · TSE:9682
Dts — 2Q FY March 2020 Earnings Presentation
29 slides from Dts's earnings presentation, Oct 30, 2019
Slide 1: 2Q FY March 2020 Results Presentation
2Q FY March 2020 Results Presentation October 30, 2019 (C) 2019 DTS CORPORATION
Slide 2: Contents
Contents 1 Overview of 2Q FY March 2020 Results 2 Progress of Key Measures as of FY March 2020 3 FY March 2020 Full Year Forecast Caution Sales and income forecasts included in this document are based on assumptions made on the basis of information currently available, including business trends, eco
Slide 3: 1. Overview of 2Q FY March 2020 Results
1. Overview of 2Q FY March 2020 Results (C) 2019 DTS CORPORATION 3
Slide 4: Important Events
Important Events 1. Conversion of Nelito Systems Limited to a subsidiary In June 2019, DTS purchased additional shares of Nelito Systems Limited (“Nelito“) based in Mumbai, India, and made it a consolidated subsidiary to expand DTS’s global business in the financial industry. In July 2019, DTS purch
Slide 5: Consolidated Results
Consolidated Results Net sales increased ¥5,820 million year-on-year, including the sales of newly consolidated Nelito and a change of the accounting period of Digital Technologies Corporation (“DTC”), thanks to DTS’ strong non-consolidated results achieved from the increased income in the finance a
Slide 6: (Reference 1) Factors for the Change in Net Sales
(Reference 1) Factors for the Change in Net Sales Net sales rose ¥4,320 million (up 10.4%) year-on-year when the impact of the change of DTC’s accounting period is excluded. (100 million yen) +58.2 ・Finance and society +14.5 ・Corporate solutions ・Operation infrastructure BPO +16.2 +43.2 + 0.3 +14.9
Slide 7: Non-Consolidated Results
Non-Consolidated Results Net sales grew ¥3,090 million year-on-year as a result of positive turnaround in the finance segment and the Corporate Solutions segment. Operating income rose ¥830 million year-on-year, attributable to an increase in profit resulting from increased sales and decreased SG&A
Slide 8: Changes in Net Sales [Non-Consolidated/Group Companies]
Changes in Net Sales [Non-Consolidated/Group Companies] Non-consolidated (DTS) net sales increased ¥3,090 million thanks to the positive results of the securities and housing-related segments. Net sales of the Group companies grew ¥510 million year-on-year (excluding the impact from the new consolid
Slide 9: Change in Operating Income [Non-Consolidated/Group Companies]
Change in Operating Income [Non-Consolidated/Group Companies] Non-consolidated (DTS) operating income increased ¥830 million thanks to a rise in profit resulting from an increase in sales. Operating income of the Group companies decreased ¥60 million yen due in part to a reactionary fall from specia
Slide 10: Net Sales by Segments
Net Sales by Segments • Net sales in the Finance and Society segment grew thanks to an increase in large securities projects, government-related financial institutions, etc. • Net sales in the Corporate Solutions segment increased thanks to strong results of housing-related and other projects. • Net
Slide 11: (Reference) Consolidated Sales by End User
(Reference) Consolidated Sales by End User Industrial Classification of METI (100 million yen) Amount Composition Year on year ratio Other Finance, Insurance 160.0 34.9% +20.4 114.6% 6.6% Information & Communications 115.1 25.1% +1.4 101.3% Wholesale, retail Finance, 6.6% Manufacturing 57.2 12.5% +6
Slide 12: Reason for an Increase in Consolidated Operating Income
Reason for an Increase in Consolidated Operating Income Consolidated operating income increased ¥780 million due to a rise in profit resulting from sales growth, which offset the reactionary fall from special demand in the embedded system-related segment in the previous year. (100 million yen) 2) Im
Slide 13: Order Volume and Order Backlog by Segments
Order Volume and Order Backlog by Segments [Order Backlogs] ・Decreased in the Finance and Society segment largely due to the commencement of services for a securities company’s intranet. ・Increased in the Corporate Solutions segment due to growth in housing-related and solution projects. ・ Increased
Slide 14: 2. Progress of Key Measures as of FY March 2020
2. Progress of Key Measures as of FY March 2020 (C) 2019 DTS CORPORATION 14
Slide 15: Medium-Term Plan Basic Policies and Key Activities
Medium-Term Plan Basic Policies and Key Activities Under the Medium-Term Plan vision, focus on three policies and five key activities that contribute to the sustainable growth of society and increase the Company’s corporate value. Medium- Providing new value to the society of tomorrow Term Next Valu
Slide 16: Five key activities
Medium-Term Management Plan: Key activities Establish five key activities to implement the three basic policies. Plan and implement specific measures for each segment. Strengthening sales • Integrate solution sales and account sales capabilities and systems • Strengthen project management integratio
Slide 17: Strengthening Sales Capabilities and Systems Integration Capabilities (1)
Strengthening Sales Capabilities and Systems Integration Capabilities (1) To advance activities for proposals that utilize new technologies for solutions to issues faced by customers, we have allocated solution sales representatives and established a DX Promotion Office in April 2019. To achieve the
Slide 18: Strengthening Sales Capabilities and Systems Integration Capabilities (2)
Strengthening Sales Capabilities and Systems Integration Capabilities (2) For a quick response to customer needs, we have been utilizing automation tools and adopted agile development, realizing shorter system development periods and quality improvement. Concentrating on developing an offshore prese
Slide 19: Creating New Businesses (1)
Creating New Businesses (1) Began collaboration with a customer in the manufacturing industry on initiatives for smart factory solutions in April 2019, using the technologies and the solutions of DTS Group. Realized centralized management and automation of the system operation administration and emp
Slide 20: Creating New Businesses (2)
Creating New Businesses (2) Adopting the trend for DX/SoE businesses of focusing on human resource development for acquisition of new technologies such as CAMBRIC and winning DX- related matters. In the cumulative results for the six months under review, both the net sales of the DX- related busines
Slide 21: Strengthening of the Group's Management Foundation
Strengthening of the Group’s Management Foundation Established an EGG Promotion Office at the General Affairs Dept. in April 2019 to strengthen ESG initiatives. We are aiming to contribute to the deepening of people’s understanding of the SDGs and continuing our initiatives for contributing to the r
Slide 22: Reforming Internal Systems and Clerical Work, and Implementing Work-Style Innovation
Reforming Internal Systems and Clerical Work, and Implementing Work-Style Innovation For the purpose of improving business continuity and the infrastructure for allowing people to work in diverse ways, we have been transferring the data center for DTS’s internal system and have been promoting the re
Slide 23: 3. FY March 2020 Forecast
3. FY March 2020 Forecast (C) 2019 DTS CORPORATION 23
Slide 24: Outlook for the Group's Business Environment
Outlook for the Group’s Business Environment Although the economic perspectives are unclear, we are expecting IT investments for advanced technologies such as automatic vehicle operation, customer management and strengthening of contact with customers in the wholesale and retail business, and produc
Slide 25: Performance Forecasts for the Full Fiscal Year Ending March 2020 [Consolidated]
Performance Forecasts for the Full Fiscal Year Ending March 2020 [Consolidated] The target for net sales is growth of 7.8%, an increase of ¥6,780 million year on year. The target for operating income is an increase of ¥210 million year on year. The Company aims to achieve operating margin of 10% or
Slide 26: FY March 2020 Dividend
FY March 2020 Dividend The dividend for the six months under review is ¥20 per share as initially forecast. For the annual dividend, we are planning ¥50 yen per share as initially estimated. We are aiming at securing a total return ratio of 45% or higher through the continuation of stable dividends.
Slide 27: Other information
Other information (C) 2019 DTS CORPORATION 27
Slide 28: (Reference) Major Press Releases
(Reference) Major Press Releases Date of Company Title, brief description release April 26 DTS India: DTS to Make Nelito Systems Ltd. a subsidiary * DTS decided to make an additional purchase of the shares of Nelito Systems to make it a subsidiary. The DTS Group will aim to expand its global busines
Slide 29: Thank you for your attention.
2Q FY March 2020 Results Presentation Thank you for your attention.