Densan System Holdings Co. Ltd. · TSE:4072
Densan System — Q2 FY2023 Earnings Presentation
22 slides from Densan System's earnings presentation, Sep 1, 2023
Slide 1: Presentation Materials for the 2Q FY 2023 Results Briefing
Densan System Holdings Co., Ltd. Presentation Materials for the 2Q FY 2023 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
Slide 2: Table of Contents
Table of Contents ▸ 2Q FY 2023 Business Results Highlights P3 ▸ 2Q FY 2023 Transition in Quarterly Business Results P4 ▸ 2Q FY 2023 By Segment P5 ▸ 2Q FY 2023 Information Services Summary P6 ▸ 2Q FY 2023 Information Services in Detail P7 ▸ 2Q FY 2023 Payment Agency Services Summary P10 ▸ 2Q FY 2023
Slide 3: 2Q FY 2023 Business Results Highlights
2Q FY 2023 Business Results Highlights Net sales 29.878 billion yen (18.7% ⤴) Operating income 2.010 billion yen (72.1% ⤴) Net income attributable to shareholders of the parent company 1.395 billion yen (53.8% ⤴) 親会社株式に帰属する純利益 7.73億円 （ 37.6% ⤴ ） 3
Slide 4: Business Results Highlights
2Q FY2023 Business Results Highlights Unit: Million yen ▸ Steady sales thanks to launch of operations at new business partners ▸ Significant profit growth in payment agency services continuing from 1Q. ▸ The full-year plan remains unchanged. FY2022 FY2023 YoY change Full-year plan Progress 2Q cumula
Slide 5: By Segment
2Q FY2023 By Segment Unit: Million yen ▸ Sales of information services increased due to strong sales for business system projects, Google, and the security area, among others. However, profit decreased year on year due to unprofitable projects. ▸ Sales and profit of payment agency services increased
Slide 6: Transition in Quarterly Business Results
2Q FY2023 Transition in Quarterly Business Results Unit: Million yen ▸ Sales of stock transactions were almost in line with the plan, and sales were strong. ▸ Profit decreased from 1Q due to unprofitable projects. Net sales Operating income FY2022 FY2023 FY2022 FY2023 6
Slide 7: Information Services Summary
2Q FY2023 Information Services Summary Unit: Million yen ▸ Sales were strong in SI and software development for auto auction projects, Google, and in security- related areas. ▸ Sales decreased in information processing due to reduced processing volume in other services, despite strong performance in
Slide 8: Information Services in Detail (Google Business)
2Q FY2023 Information Services in Detail (Google Business) ▸ Sales expanded due to ongoing large Net sales Number of Google (Google Workspace) installations Google Workspace projects and an (million yen) (Number of installations) increasing number of business partners. ▸ ChromeBook sales were strong
Slide 9: Information Services in Detail (BPO Business)
2Q FY2023 Information Services in Detail (BPO Business) ▸ Invoice preparation services performed well. Net sales Number of items processed The number of items processed accounted for (million yen) (in thousand items) over 60% of BPO business. ▸ The number of items processed in areas such as data ent
Slide 10: Payment Agency Services Summary
2Q FY2023 Payment Agency Services Summary Unit: Million yen ▸ Sales and profit increased due to steady growth continuing from 1Q in newly acquired customers who launched operations in the previous year. ▸ International remittance services remained in line with plans, although conditions were difficu
Slide 11: Payment Agency Services in Detail (Payment and Collection / Online Payment)
2Q FY2023 Payment Agency Services in Detail (Payment and Collection Agency Services / Online Payment Services) ▸ Although we expected an increase in the handling Number of items processed (in thousand items) of public funding in response to the termination of contracts with some large customers, the
Slide 12: Payment Agency Services in Detail (Remittance / Peripheral Services)
2Q FY2023 Payment Agency Services in Detail (Remittance Services / Payment Agency Peripheral Services) Number of items processed (in thousand items) ▸ International remittances were in line with Domestic International remittance remittance plans, but trended weakly due to impact from COVID-19, the w
Slide 13: Long-Term Plan December 2021 to December 2027: Challenge 1000
Long-Term Plan December 2021 to December 2027 Challenge 1000 2027年 Net sales 1000 billion yen Taking on the challenge to become a company Information service with ¥100 billion in net sales by 2027! ・BPO services ・Software development, operation, and maintenance services ・Medical services 2021 The co
Slide 14: Long-Term Plan: Challenge 1000
Long-Term Plan December 2021 to December 2027 Challenge 1000 Taking on the challenge to become a company with ¥100 billion in net sales by 2027! DSK Transformation (DX, self-transformation to create new value) Strengthen collaboration among Group companies (creation of new services, cross-selling) E
Slide 15: Medium-Term Plan December 2023 to December 2025
Medium-Term Plan December 2023 to December 2025 What should be done to achieve Challenge 1000? DSK Transformation → From contracted development to packaged services From paper-based to paperless Improve efficiency of back-end operations Strengthen collaboration among Group companies → Strengthen and
Slide 16: Medium-Term Plan December 2023 to December 2025
Medium-Term Plan December 2023 to December 2025 Unit: Million yen ▸ Challenge 1000 will be an important 3-year period, with a determination to accomplish what we set out to achieve. ▸ Gradually increase the profit margin (overall) over a period of three years. ▸ Looking at the growth rate YoY, we ha
Slide 17: Topics: Group company management policy
2Q FY2023 Topics ▸ Announced Group company management policy There is only one valid definition of a business purpose : to create a customer. - Peter F. Drucker Management Philosophy Purpose (Reason for Being) To help enrich society through Vision (Beyond information technology and Realization of the
Slide 18: Topics: Google Maps Platform mobility services support
2Q FY2023 Topics ▸ Started providing support for introduction of Google Maps Platform mobility services (GOGA) Achieve smooth operational linkage for expanding food delivery, home delivery, etc., to improve operational efficiency and resolve issues 18
Slide 19: 1Q FY2023 Topics: TREE PAYMENT
1Q FY2023 Topics ▸ Evolution for "TREE PAYMENT," a payment service platform (Densan System) March 10, 2023: Launch of "TREE PAYMENT Account Transfer —100% Deposit Guarantee service—" a credit guarantee type account transfer service March 29, 2023: Integration with "EngagePlus," a message delivery se
Slide 20: Topics: Business alliance with NewnetSecure Transactions
2Q FY2023 Topics ▸ First business alliance in Japan with NewnetSecure Transactions, Inc. (DensanSystem and DS Technologies) By using NewNetSecure Transaction Cloud (STC) system, a payment gateway system compliant with the latest cloud technology to handle the huge volume of communication traffic gen
Slide 21: Topics / Impact of Social Conditions
2Q FY2023 Topics / Impact of Social Conditions Information service segment Although the impact of foreign exchange (yen depreciation) is becoming more moderate, the impact of higher prices and labor costs is expected to grow in the future. Increases in purchase prices for equipment, paper, etc., uni
Slide 22: Dividends
Dividends ▸ FY2022: Annual ordinary dividend of ¥35 per share (interim dividend of ¥17 and year-end dividend of ¥18) ▸ FY2023 forecast: Annual ordinary dividend of ¥37 per share (interim dividend of ¥18 and year-end dividend of ¥19) Commemorative dividend for the transition to a holding company stru
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