Densan System Holdings Co. Ltd. · TSE:4072
Densan System — Q2 FY2019 Earnings Presentation
17 slides from Densan System's earnings presentation, 2019
Slide 1: Presentation Materials for the 2Q FY2019 Results Briefing
Presentation Materials for the 2Q FY2019 Results Briefing Densan System Co., Ltd. Tokyo Stock Exchange, First Section Nagoya Stock Exchange, First Section Securities Code: 3630 Forward-looking statements contained in this document are based on current estimates and projections and include potential
Slide 2: 2Q FY2019 Business Results Highlights
2Q FY2019 Business Results Highlights Y-o-y change in parentheses Net income attributable to Sales Operating income shareholders of the parent company 19,874 1,231 856 million yen million yen million yen (Up 10.2%) (Up 65.4%) (Up 64.6%) Business results ✔ Sales and earnings up y-o-y ✔ Operating inco
Slide 3: 2Q FY2019 Business Results Highlights
2Q FY2019 Business Results Highlights (Unit: Million yen) ✔ Sales according to plan, income up substantially, well ahead of plan ✔ Income ratio up FY 12/2018 FY 12/2019 Y-o-y 1H forecast Attainment ratio Full-year plan Progress 2Q cumulativ e total 2Q cumulativ e total Ratio Sales 18,039 19,874 10.2
Slide 4: Transition in Quarterly Business Results
Transition in Quarterly Business Results (Unit: Million yen) ✔ 1Q income stands out among results by quarter Sales Operating income 800 782 10,076 10,000 9,626 9,798 700 9,057 8,982 8,910 600 8,000 506 500 449 417 6,000 395 400 348 300 4,000 200 2,000 100 0 0 0 0 0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
Slide 5: By Segment
2Q FY2019 By Segment (Unit: Million yen) ✔ Sales and income both up significantly y-o-y in information services segment ✔ Sales up y-o-y in payment agency service segment, but income flat Sales Operating income Payment 1,200 20,000 Payment agency agency 1,100 service 17,500 service 319 1,000 15,000
Slide 6: Information Services Summary
2Q FY2019 Information Services Summary (Unit: Million yen) ✔ Sales as planned in SI and software development, but income up with improved operating ratio ✔ Income up significantly in BPO business included in information processing ✔ Merchandise sales ahead of plan despite decrease associated with re
Slide 7: Information Services in Detail: SI and software development
2Q FY2019 Information Services in Detail (Unit: Million yen) SI and software development ✔ Improved operating ratio in contracted Number of Google (G Suite) adopter companies development contributed to income 1,399 1,632 1,246 1,499 ✔ Auto auctions performed well 943 Sales of cloud related services
Slide 8: Information Services in Detail: BPO business
2Q FY2019 Information Services in Detail (Unit: Million yen) BPO business Number of items processed (in thousand items) 81,493 ✔ Income up with return to black by 56,042 51,053 projects for large customers 36,403 35,564 ✔ Several projects launching in 2H 3,011 3,145 3,000 2,863 Sales ✔ New projects
Slide 9: Payment Agency Services Summary
2Q FY2019 Payment Agency Services Summary (Unit: Million yen) ✔ Sales and income both short of 1H forecast ✔ Income ratio expected to improve in 2H FY 12/2018 FY 12/2019 Y-o-y 1H forecast Attainment ratio Full-year plan Progress 2Q cumulativ e total 2Q cumulativ e total Amount Ratio Sales 8,563 8,77
Slide 10: Payment Agency Services in Detail: Payment service
2Q FY2019 Payment Agency Services in Detail (Unit: Million yen) Payment service 210,165 198,235 Number of items processed 181,157 (in thousand items) ✔ Differentiation from competitors Cashless/paperless support Account transfer Sales Pap erless payment Payment slip settlemen t 17,500 16,554 15,766
Slide 11: Status of payment innovation
2Q FY2019 Payment Agency Services in Detail Status of payment innovation ✔ Counter payment service - 3,654 adopter stores ✔ International remittances - Number of registrants dropped sharply as interim measures for My Number expired, but number of remittances from January to June exceeded that of pre
Slide 12: Topics (Information Services): Auto auctions
Topics (Information Services) Auto auctions ✔ JU GIFU Hashima Auto Auction - Complete overhaul of bidding and search systems ✔ Arai Shoji - Auto auction operations system introduced at all four venues ↑ JU GIFU Hashima Auto Auction venue Arai Auto Auction Oyama inventory yard →
Slide 13: Topics (Status of Cashless Payment in Japan)
Topics (Status of Cashless Payment in Japan) Status of Main Cashless Payment Services and Densan System (DSK) Service QR code or barcode At some stores, Lawson smartphone pay introduced / Bank Pay in preparation (2019 launch planned) Service LINE Pay Origami Rakuten d Pay PayPay Amazon PayB Rakuten
Slide 14: Topics (Payment Agency Service)
Topics (Payment Agency Service) Convenience store payment service introduced for elementary school educational material sales nationwide Schools no longer need to collect payment! Scan QR code printed on application flyer Choose product DSK Payment Visit order page Enter child’s information Service
Slide 15: Topics (Google)
Topics (Google) Google-related services to be expanded! GCP (Google Cloud Platform) - Free business support to be launched - GCP managed services to be launched GCP-related services provided by DSK AI / machine Data storage / analytical Cloud platform G Suite -linked tools learning machine learning
Slide 16: Shareholder Returns
Shareholder Returns ✔ Annual ordinary dividend per share: ¥27 (interim dividend of ¥13 and year-end dividend of ¥14) 30 Interim (Up 4.0%) Year-end 25 Special dividend 20 13 14 2.5 12 13 11 12 15 10 9 10 7 12 12 13 13 5 10 11 11 7 8.5 0 FY 12/2011 FY 12/2012 FY 12/2013 FY 12/2014 FY 12/2015 FY 12/201
Slide 17: Thank you for your attention.
Challenge Thank you for your attention. Innovation Speed