Dentsu Soken Inc. · TSE:4812
Dentsu Soken — FY2024 Earnings Presentation
31 slides from Dentsu Soken's earnings presentation, Feb 12, 2025
Slide 1: Presentation Material of Financial Results for FY2024
Presentation Material of Financial Results for FY2024 (ended December 31, 2024) Note: This English translation is solely for reference purposes and not a legally definitive translation of the original Japanese text. In the event a difference arises regarding the meaning herein, the original Japanese
Slide 2: Index
INDEX 01 Outline of Financial Results for FY2024 02 Forecasts for FY2025 Appendix 2
Slide 3: 01 Outline of Financial Results for FY2024
INDEX 01 Outline of Financial Results for FY2024 02 Forecasts for FY2025 Appendix 3
Slide 4: Summary of FY2024
Summary of FY2024 • Driven by Manufacturing Solutions, net sales increased by 7.0% YoY. • Despite a significant increase in personnel expenses due to aggressive hiring and compensation revisions, operating profit secured an increase Results due to the effects of increase in sales and improved gross
Slide 5: Consolidated Results
Consolidated Results (Unit: Millions of yen) Vs. Previous forecasts YoY FY2024 (announced on Oct 31, 2024) (cumulative) FY2023 Variance % change Forecasts Variance % change (cumulative) Net sales 152,642 142,608 +10,034 +7.0 152,000 +642 +0.4 Gross profit 56,123 51,780 +4,343 +8.4 55,300 +823 +1.5 G
Slide 6: Factors for Increase/Decrease in Operating Profit (YoY)
Factors for Increase/Decrease in Operating Profit (YoY) Although SG&A expenses expanded significantly, operating profit increased due to the effect of increased sales and improved gross profit margin. The gross profit margin improved by +0.5p compared to the previous period due to the suppressio
Slide 7: Factors for Increase/Decrease in Operating Profit (vs. Forecasts)
Factors for Increase/Decrease in Operating Profit (vs. Forecasts) Operating profit exceeded the revised forecasts due to the effects of increased sales and improved gross profit margin, and the suppression of SG&A expenses. (Unit: 100 million of yen) Decrease in SG&A expenses +2.1 Effect of increa
Slide 8: Non-operating Income/Expenses and Extraordinary Income/Losses
Non-operating Income/Expenses and Extraordinary Income/Losses Ordinary profit decreased due to an increase in non-operating expenses, due to factors such as foreign exchange losses. Profit attributable to owners of parent increased due to the recording of gains on the sale of investment securiti
Slide 9: Net Sales and Operating Profit by Reportable Segment
Net Sales and Operating Profit by Reportable Segment (Unit: Millions of yen) Vs. Previous Forecasts FY2024 YoY (announced on October 31, 2024) Reportable segment (cumulative) Variance % change Overview Variance % change Net sales 31,910 +1,312 +4.3 Net sales and operating profit increased due to -90
Slide 10: Net Sales by Service Category and Dentsu Group Companies
Net Sales by Service Category and Dentsu Group Companies (Unit: Millions of yen) Vs. Previous Forecasts FY2024 YoY Service category (announced on October 31, 2024) (cumulative) Variance % change Variance % change Consulting Services 10,480 +1,869 +21.7 -20 -0.2 Custom System Development 31,013 +100
Slide 11: Ref. Consolidated Results for the 4Q of FY2024
Ref. Consolidated Results for the 4Q of FY2024 Due to the underachievement of the initial full-year operating profit plan, a provision adjustment of performance-linked bonuses amounting to approximately ¥-700 million occurred in the 4Q. (Unit: Millions of yen) YoY 4Q of FY2024 (Oct.-Dec.) 4Q of FY
Slide 12: Ref. Factors for Increase/Decrease in Operating Profit for 4Q of FY2024 (YoY)
Ref. Factors for Increase/Decrease in Operating Profit for the 4Q of FY2024 (YoY) Although SG&A expenses expanded, operating profit increased due to the effects of increased sales and improved gross profit margin. (Unit: 100 million of yen) Effect of increase in gross profit margin +6.2 YoY Increa
Slide 13: Ref. Consolidated Results for the 4Q of FY2024 by Segment / Service Category
Ref. Consolidated Results for the 4Q of FY2024 by Reportable Segment / by Service Category Reportable segment (Unit: Millions of yen) Service category (Unit: Millions of yen) 4Q of FY2024 YoY 4Q of FY2024 YoY (Oct.-Dec.) Variance % change (Oct.-Dec.) Variance % change Net sales 7,888 -127 -1.6 Finan
Slide 14: Net Sales by Industry
Net Sales by Industry (Unit: Millions of yen) FY2024 (cumulative) YoY Industry Net sales Composition ratio (%) Variance % change Banks 22,892 15.0 +857 +3.9 Other financial institutions 8,859 5.8 +1,782 +25.2 Financial 31,751 20.8 +2,639 +9.1 Transportation equipment 27,593 18.1 +5,027 +22.3 Electri
Slide 15: Consolidated Balance Sheets
Consolidated Balance Sheets (Unit: Millions of yen) As of As of Variance Main factors for increase/decrease Dec. 31, 2024 Dec. 31, 2023 Decrease in accounts receivable-trade, and contract assets (-1,877) Total current assets 119,058 114,813 +4,245 Increase in deposits paid (+3,555) Increase in advan
Slide 16: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows (Unit: Millions of yen) YoY FY2024 Main factors FY2023 (cumulative) Variance (cumulative) Profit before income taxes (21,351) Depreciation (3,449) Increase in contract liabilities (2,932) Cash flows from operating activities 23,721 Decrease in accounts receivabl
Slide 17: Orders Received and Order Backlog
Orders Received and Order Backlog (Unit: Millions of yen) Orders received Order backlog 4Q of FY2024 YoY FY2024 YoY FY2024 YoY (Oct.-Dec.) % change (cumulative) % change (As of Dec. 31) % change Total 36,414 +12.4 158,602 +9.5 59,859 +11.1 Financial Solutions 8,239 +11.5 32,036 +4.7 7,901 +1.6 Busin
Slide 18: 02 Forecasts for FY2025
INDEX 01 Outline of Financial Results for FY2024 02 Forecasts for FY2025 Appendix Note: Forecasts of business results in this document are based on judgments and assumptions made in light of industry trends, customer conditions, and other information currently available, and are not intended as a gu
Slide 19: Earnings Forecast and Dividend Forecast for FY2025
Earnings Forecast and Dividend Forecast for FY2025 Net sales is expected to grow by 11.4%, and operating profit is aimed to increase by 9% even after incorporating strengthened investments. The annual dividend is planned to be 116 yen per share with a payout ratio of 47.2%, aiming for the 13th c
Slide 20: Factors for Increase/Decrease in Operating Profit of FY2025 (YoY)
Factors for Increase/Decrease in Operating Profit of FY2025 (YoY) (Unit: 100 million of yen) Effect of increase in gross profit margin +4.9 Increase in SG&A YoY expenses -49.1 +19.6 Effect of increase in sales +63.8 Operating Operating Gross profit margin target 37.1% • Personnel expenses, recruitme
Slide 21: Regarding Changes in the Businesses Managed by Each Reportable Segment
Regarding Changes in the Businesses Managed by Each Reportable Segment To implement the growth strategy of the new Medium-term Management Plan, we make the following changes to the businesses managed by each reportable segment: 1. Transfer the ERP business from Communication IT to Manufacturing So
Slide 22: Reclassification of Net Sales for FY2024 by Each Reportable Segment
Reclassification of Net Sales for FY2024 by Each Reportable Segment (Unit: Millions of yen) FY2024 H1 of FY2024 (cumulative) (Jan. - Jun.) Before After Before After Variance Variance reclassification reclassification reclassification reclassification Financial Solutions 31,910 34,050 +2,140 16,109 1
Slide 23: Net Sales Forecasts for FY2025
Net Sales Forecasts for FY2025 by Reportable Segment / by Service Category (Unit: Millions of yen) (Unit: Millions of yen) YoY YoY FY2025 FY2025 Reportable segment FY2024* Service category FY2024 (cumulative) Variance % change (cumulative) Variance % change (cumulative) (cumulative) Financial Soluti
Slide 24: Forecasts for the First Half of FY2025
Forecasts for the First Half of FY2025 (Unit: Millions of yen) YoY Percentage of the full H1 of FY2025 H1 of FY2024 Variance % change year (%) Net sales 83,000 74,235 +8,765 +11.8 48.8 Operating profit 11,500 10,360 +1,140 +11.0 50.0 Operating margin(%) 13.9 14.0 -0.1p - - Ordinary profit 11,500 10,
Slide 25: Net Sales Forecasts for the First Half of FY2025
Net Sales Forecasts for the First Half of FY2025 by Reportable Segment / by Service Category (Unit: Millions of yen) (Unit: Millions of yen) YoY YoY Reportable segment H1 of FY2025 H1 of Service category H1 of FY2025 H1 of Variance % change Variance % change FY2024* FY2024 Financial Solutions 18,000
Slide 26: Appendix
INDEX 01 Outline of Financial Results for FY2024 02 Forecasts for FY2025 Appendix 26
Slide 27: Appendix Evaluation
Appendix Evaluation Index Certification 「Platinum Kurumin」 「Tomonin」 *FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms that DENTSU SOKEN INC. has been independently assessed according to the FTSE4Good criteria, and has satisfied the requirements to bec
Slide 28: Appendix Consolidated Financial Results
Appendix Consolidated Financial Results (Unit: Millions of yen) FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 Net sales 78,267 56,771 79,783 83,423 91,024 100,679 108,679 112,085 129,054 142,608 152,642 YoY 105.8% 72.5% 140.5% 104.6% 109.1% 110.6% 107.9% 103.1% 115.1%
Slide 29: Appendix Net Sales and Operating Profit by Reportable Segment
Appendix Net Sales and Operating Profit by Reportable Segment (Unit: Millions of yen) FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 Net sales 24,086 17,851 22,037 21,413 23,242 24,622 23,888 25,176 28,125 30,598 31,910 Financial Solutions Operating profit 1,447 1,441 2
Slide 30: Appendix Net Sales by Service Category
Appendix Net Sales by Service Category (Unit: Millions of yen) FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 Net sales 3,860 3,350 5,426 5,515 6,818 6,819 5,975 7,200 7,418 8,611 10,480 Consulting Services Composition 4.9% 5.9% 6.8% 6.6% 7.5% 6.8% 5.5% 6.4% 5.8% 6.0% 6
Slide 31: Bi RST
Bi RST DENTSU SOKEN INC.