Slide 1: Financial Results for Q1 FY06/25
Financial Results for Q1 FY06/25 （July 1 to September 30, 2024） [Non-Consolidated] Intelligent Wave Inc. Announced on November 8, 2024 Copyright © INTELLIGENT WAVE INC. All rights reserved.
Slide 2: Financial Results for Q1 FY06/25
Financial Results for Q1 FY06/25 Forecast for FY06/25 Progress of the Medium-Term Management Plan Reference Copyright © INTELLIGENT WAVE INC. All rights reserved. 2
Slide 3: Overview
Overview ■Sales increased due to steady performance in the core payment domain and product introductions to major customers in the security domain. ■ Profit rose on higher revenues and lower SG&A expenses, despite higher infrastructure costs for cloud services in the payment domain. ■ Orders on hand
Slide 4: Sales by Business Domain
Sales by Business Domain ■ In the payment domain, sales in the FEP area increased due to the ongoing renewal of the FEP systems of existing customers from the previous year. Sales in the fraud detection area rose, mainly due to an increase in the number of companies using cloud services. Sales in ot
Slide 5: Top Five Clients by Sales
Top Five Clients by Sales ■ For DNP, security-related sales increased, driven by cryptographic key management systems and security product introductions. Orders rose significantly due to multi-year contracts for security product introductions. ■ Sales for both the second and third “System Integrator
Slide 6: Sales by Category
Sales by Category ■ Third-party products and services increased, mainly due to ongoing FEP system renewal for existing customers from the previous year. ■ Cloud services grew, mainly due to a rise in the number of companies using the fraud detection service IFINDS. ■ Security rose, mainly due to pro
Slide 7: Operating income
Operating income ■ Gross margins in system development and maintenance in the payment domain remained steady, but infrastructure costs have increased in cloud services due to delays in the infrastructure transition. We will continue to improve gross margins by enhancing productivity in system develo
Slide 8: Cloud Service Business
Cloud Service Business ■ Sales increased due to a rise in the number of users of the fraud detection service IFINDS . ■ There was a gross loss of ¥20 million due to higher infrastructure costs resulting from delays in the cloud service infrastructure transition. Profitability is expected from Q2 onw
Slide 9: Amount of orders (by Category)
Amount of orders (by Category) ■ Cloud services and security increased significantly due to multi-year contract projects. ■ System development decreased YoY due to a decline in large projects for credit card companies. ■ In-house products and services declined due to the multi-year contract projects
Slide 10: Orders on Hand (by Category)
Orders on Hand (by Category) ■ Orders on hand increased across all areas, including system development, cloud services, and security. ■ System development grew in a wide range of areas, including FEP, fraud detection, and security. ■ Cloud services and security increased significantly due to multi-y
Slide 11: Forecast for FY06/25
Financial Results for Q1 FY06/25 2025年6月期 Forecast 業績予想 for FY06/25 Progress of the Medium-Term Management Plan Reference Copyright © INTELLIGENT WAVE INC. All rights reserved. 11
Slide 12: FY06/25 Full-year Forecasts
FY06/25 Full-year Forecasts Million yen FY06/24 FY06/25 Change Actual Forecast [YoY] 1H 2H Full year 1H 2H Full year Net sales 6,946 7,572 14,518 7,500 8,500 16,000 ＋10.2% Payment and finance 5,784 6,366 12,151 6,140 6,810 12,950 ＋6.6% Security 757 800 1,558 930 1,170 2,100 ＋34.8% Data communication
Slide 13: FY06/25 Forecasts
FY06/25 Forecasts Million yen FY06/24 FY06/25 Change Actual Forecast [YoY] Q1 Q2 1H YoY Q1 Q2 1H (1H forecast (actual) - Q1 actual) (forecast) (1H) Net sales 3,158 3,787 6,946 3,542 3,957 7,500 ＋8.0% Payment and finance 2,678 3,106 5,784 2,930 3,210 6,140 +6.2％ Security 319 437 757 407 513 920 +21.5
Slide 14: Progress of the Medium-Term Management Plan
Financial Results for Q1 FY06/25 Forecast for FY06/25 中期事業計画進捗 Progress of the Medium-Term Management Plan Reference Copyright © INTELLIGENT WAVE INC. All rights reserved. 14
Slide 15: Medium-Term Management Plan (2025–2027)
Medium-Term Management Plan(2025–2027) We will aim to diversify our business and establish a foundation for sustainable growth, looking ahead to the 2030s. We will also develop our business in various fields, particularly in the payment, security, and technology domains, to bring value to people's l
Slide 16: Basic Policies
Basic Policies To prepare for the market environment of the 2030s, we will focus on three key areas of transformation: "business," "technology," and "human resources," to continue developing products and services that create new levels of reliability. 01 Transformation of Business ①Maximize the valu
Slide 17: Numerical Targets
Numerical Targets We aim to achieve sales of ¥19 billion yen, operating income of ¥2.85 billion, and ROE of at least 17.0% by the fiscal year ending June 30, 2027. By expanding our business areas and improving profitability in each domain, we aim to achieve sales of around ¥30 billion and an operati
Slide 18: Initiatives by business domain
Initiatives by business domain ■ Start of development of a cloud-based version of NET+1, in the FEP area. Payment We have started full-scale development of a cloud-based version of our own product, NET+1, in the FEP area. The system is expected to be available around April 2025. We will primarily ma
Slide 19: Initiatives by business domain
Initiatives by business domain ■ Memorandum of understanding signed with uniXecure for security business collaboration Security In August 2024, we signed a memorandum of understanding with uniXecure Technology Corporation, a company engaged in the cybersecurity business in Taiwan, for collaboration
Slide 20: Reference
Financial Results for Q1 FY06/25 Forecast for FY06/25 Progress of the Medium-Term Management Plan 参考資料 Reference Copyright © INTELLIGENT WAVE INC. All rights reserved. 20
Slide 21: Cost of manufacturing
Cost of manufacturing Million yen FY06/24 FY06/25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Materials cost 10 7 9 5 17 Labor cost 745 744 737 718 770 Expenses 569 667 661 780 819 Subcontracting cost 1,085 1,124 1,163 1,151 1,064 Total manufacturing cost 2,411 2,544 2,571 2,656 2,672 Work in progress 216 269 227 275 2
Slide 22: SG&A expenses
SG&A expenses Million yen FY06/24 FY06/25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Salaries 387 382 381 405 407 Training and recruiting 24 12 9 35 18 Equipment and 127 108 113 111 108 maintenance, etc. Advertising 14 17 16 15 13 Others 137 137 115 128 127 Total 691 656 634 694 675 Q1 FY06/24 Q1 FY06/25 Change SG&A 6
Slide 23: Cash Flows
Cash Flows ＋810 Million yen [515] Income before taxes＋304 [610] D&A ＋300 A/R decrease ＋709 A/P decrease (179) Purchase of intangible assets (394) Income taxes paid (495) Purchase of PP&E (119) Dividends (610) 4,494 4,813 JPY 319mil decrease 30-Jun-24 Operating Activities Investing Activities Financi
Slide 24: FY06/25 Full-year Forecasts (by Category)
FY06/25 Full-year Forecasts (by Category) Million yen FY 06/24 FY06/25 Change Actual Forecast （YoY) 1H 2H Full year １H 2H Full year Net sales 6,946 7,572 14,518 7,500 8,500 16,000 ＋1,482 System development 3,457 3,551 7,009 3,455 3,885 7,340 ＋331 Maintenance 798 832 1,630 800 790 1,590 (40) In-house
Slide 25: FY06/25 Forecasts (by Category)
FY06/25 Forecasts (by Category) Million yen FY 06/24 FY06/25 Actual Forecast Q1 Q2 1H YoY Q1 Q2 1H (1H forecast (actual) - Q1 actual) (forecast) (1H) Net sales 3,158 3,787 6,946 3,542 3,958 7,500 +8.0% System development 1,596 1,861 3,457 1,510 1,945 3,455 (0.1%) Maintenance 397 401 798 398 402 800
Slide 26: Historical performance
Historical performance 15000 ■… Net sales ■ … Operating income Million yen Transition to TSE prime market 13000 Listing on the 1st Section of TSE 11000 9000 Inclusion into the DNP Group 7000 Listing on the JASDAQ market 5000 3000 1000 1985 86 87 88 89 90 91 92 93 94 95 96 97 98 99 2000 01 02 03 04 0
Slide 27: Redefinition of Business Domain Classification
Reference) Redefinition of Business Domain Classification We have reorganized our sales by business domain according to the functions we provide. We have also separated the sales of businesses that utilize our core technologies into the area of “data communication and analysis infrastructure,” with
Slide 28: Sales by Business Domain
Reference) Sales by Business Domain Million yen FY 06/24 Q1 Q2 Q3 Q4 Full year Net sales 3,158 3,787 3,805 3,766 14,518 Payment 2,678 3,106 3,176 3,190 12,151 FEP 1,150 1,342 1,568 1,308 5,370 Fraud detection 385 365 397 548 1,697 Acquiring 672 791 744 851 3,059 Others 470 607 465 482 2,024 Security
Slide 29: Company overview
Company overview As of June 30,2024 Established December 27, 1984 Location Kayabacho Tower, 1-21-2 Shinkawa, Chuo-ku, Tokyo Employees 492 Parent company Dai Nippon Printing Co., Ltd. [50.73%] Capital stock JPY843.75k Shares 26,340,000 Shareholders 10,432 outstanding Ownership [%] % of shareholders I
Slide 30: Intelligent Wave Inc.
These materials were produced to provide information concerning the company and its businesses. They are not intended as a solicitation for investment in securities issued by Intelligent Wave Inc. The opinions, forecasts, and other forward-looking statements in these materials are based on the compa