Dentsu Soken Inc. · TSE:4812

Dentsu Soken — FY2025 Earnings Presentation

37 slides from Dentsu Soken's earnings presentation, Feb 12, 2026

1. Slide 1: Dentsu Soken Inc. Financial Results, February 12, 2026

   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 version will prevail as the official authoritative version. DENTSU SOKEN INC. Febru

2. Slide 2: Index

   INDEX • The business classifications under the reportable segments have been changed from the fiscal year ended December 31, 2025. As a result, the results for the previous fiscal year are compared and analyzed with the figures reclassified into the new classification. 2

3. Slide 3: Outline of Financial Results for FY12/2025

   | O01 Outline of Financial Results for FY12/2025

4. Slide 4: Net sales, Operating profit

    Net sales increased by 8.0% YoY, and operating profit rose by 8.8% YoY, driven by the Business Solutions and the Communication IT.  Net sales reached a record high for the 10th consecutive fiscal period, while operating profit Net sales, and profit attributable to owners of the parent reached record

5. Slide 5: FY12/2025 consolidated results versus prior year and forecast

   (Millions of yen) Vs. forecast YoY FY12/2025 (Announced on July 30, 2025) FY12/2024 Variance % change Forecast Variance % change Net sales 164,865 152,642 +12,223 +8.0 168,000 -3,135 -1.9 Gross profit 60,376 56,123 +4,253 +7.6 61,200 -824 -1.3 Gross profit margin(%) 36.6 36.8 -0.2pt - 36.4 +0.2pt - Se

6. Slide 6: Operating profit increased mainly due to increased sales despite SG&A increase

    Operating profit increased mainly due to increased sales despite an increase in SG&A expenses. (Billions of yen) Effect of decrease in gross profit margin YoY -0.25 +1.84 SG&A expenses increased Effect of increase in sales -2.40 +4.49 • Personnel-related expenses: +0.92 Operating Profit • Impact of cha

7. Slide 7: Operating profit versus forecast

    Although there was an impact of lower sales, due to the improvement of profitability and cost control of custom system development and in-house software, operating profit is almost as planned. (Billions of yen) Impact of increase in Vs. forecast SG&A expenses decreased gross profit margin +0.71 -0.11

8. Slide 8: Non-operating and extraordinary income and expenses

    Non-operating income and expenses: Improvement mainly due to an increase in interest income due to rising interest rates.  Extraordinary income and losses: Impact of recording gains on sale of investment securities as extraordinary income in the previous year has been eliminated. (Millions of yen

9. Slide 9: Results by reportable segment

   (Millions of yen) YoY Vs. forecast*¹ FY12/2025 Variance % change Overview Variance % change Net sales and operating profit increased due to the Net sales 34,832 +782 +2.3 expansion of custom system development projects -1,168 -3.2 Financial Operating for mega banks and trust banks, as well as the pro

10. Slide 10: Net sales by service category

    (Millions of yen) Vs. forecast YoY Service category FY12/2025 (Announced on July 30, 2025) Variance % change Variance % change Consulting Services 10,872 +392 +3.7 -1,128 -9.4 Custom System Development 35,083 +4,070 +13.1 +1,083 +3.2 In-house Software 33,985 +3,890 +12.9 -15 -0.0 Third-party Softwar

11. Slide 11: Q4 results

    (Millions of yen) YoY Q4 FY12/2025 Q4 Variance % change FY12/2024 Net sales 43,713 40,411 +3,302 +8.2 Gross profit 16,574 15,698 +876 +5.6 Gross profit margin(%) 37.9 38.8 -0.9pt - Selling, general and administrative expenses 9,962 9,122 +840 +9.2 Operating profit 6,611 6,576 +35 +0.5 Operating margin(

12. Slide 12: Q4 operating profit change factors

     Despite a decrease in the gross profit margin and an increase in SG&A expenses, operating profit increased due to the effect of higher net sales. Impact of decrease in gross profit margin (Billions of yen) YoY -0.41 SG&A expenses increased +0.03 -0.84 Impact of increase in sales +1.28 Operating Profit

13. Slide 13: Q4 by reportable segment and service category

    Net Sales and Operating Profit by Reportable Segment Net Sales by Service Category (Millions of yen) (Millions of yen) Q4 YoY Q4 YoY FY12/2025 Variance % change FY12/2025 Variance % change Net sales 9,591 +1,133 +13.4 Financial Operating Consulting Services 2,752 -255 -8.5 Solutions profit 1,390 +286

14. Slide 14: Net sales by client industry

    (Millions of yen) FY12/2025 YoY Industry Net sales Composition ratio (%) Variance % change Banks 24,972 15.2 +2,080 +9.1 Other financial institutions 9,474 5.7 +615 +6.9 Financial 34,447 20.9 +2,696 +8.5 Transportation equipment 30,362 18.4 +2,769 +10.0 Electric appliances, Precision instruments 16,5

15. Slide 15: Balance sheet

    (Millions of yen) As of As of December 31, December 31, Variance Main factors for increase/decrease 2025 2024 Increase in deposits paid (+5,902) Increase in advance payments to suppliers (+4,879) Total current assets 136,923 119,058 +17,865 Increase in accounts receivable-trade, and contract assets

16. Slide 16: Cash flows

    (Millions of yen) YoY FY12/2025 Main factors FY12/2024 Variance Profit before income taxes (23,604) Increase in trade payables (4,811) Cash flows from operating activities 19,064 Increase in advance payments to suppliers (-4,847) 23,721 -4,657 Increase in accounts receivable-trade, and contract assets

17. Slide 17: Orders received and order backlog

     Orders received in the fourth quarter (October-December) expanded mainly in Business Solutions in-house software.  Order backlog at the end of the fourth quarter increased by +27.5% at a high level. (Millions of yen) Orders received Order backlog Q4 YoY YoY End of Q4 YoY % change FY12/2025 FY12/2

18. Slide 18: Dividends

     In response to an increase in profit attributable to owners of the parent compared with the initial plan, the year-end dividend forecast was raised by 4 yen.  The annual dividend is 120 yen per share (an increase of 12 yen from the previous fiscal year), representing a dividend payout ratio of 47.7

19. Slide 19: Forecast for FY12/2026

    | 02 Forecast for FY12/2026 19

20. Slide 20: FY12/2026 forecast

     Targeting over 10% growth in both net sales and operating profit, while incorporating significant growth investments.  Planning an annual dividend of 45 yen per share with a payout ratio of 48.8%, aiming for the 14th consecutive year of dividend increases. (Millions of yen) YoY FY12/2026 FY12/2025

21. Slide 21: Operating profit forecast change factors

     To accelerate growth potential, we plan significant R&D investments across each segment.  We aim to absorb the increase in SG&A expenses, including these large investments, through revenue growth and improved gross profit margins, thereby achieving increased profits. Impact of increase in gross profi

22. Slide 22: FY12/2026 forecast by segment and service category

    (Millions of yen) (Millions of yen) YoY YoY Reportable Segment FY12/2026 Service Category FY12/2026 FY12/2025 Variance % change FY12/2025 Variance % change Financial Solutions 39,500 34,832 +4,668 +13.4 Consulting Services 12,000 10,872 +1,128 +10.4 Custom System Business Solutions 31,000 28,013 +2,

23. Slide 23: H1 FY12/2026 forecast

    (Millions of yen) YoY (Millions of yen) H1 Percentage of FY12/2026 H1 the full-year(%) Variance % change FY12/2025 Net sales 87,000 80,239 +6,761 +8.4 47.8 Operating profit 12,000 10,661 +1,339 +12.6 47.1 Operating margin(%) 13.8 13.3 +0.5pt - - Ordinary profit 12,300 11,109 +1,191 +10.7 47.1 Profit at

24. Slide 24: H1 forecast by segment and service category

    (Millions of yen) (Millions of yen) YoY YoY H1 H1 Reportable Segment H1 Service Category H1 FY12/2026 Variance % change FY12/2026 Variance % change FY12/2025 FY12/2025 Financial Solutions 18,700 16,355 +2,345 +14.3 Consulting Services 5,900 5,611 +289 +5.2 Custom System Business Solutions 15,100 13,

25. Slide 25: Progress of the Medium-Term Management Plan

    | 03 Progress of the Medium-Term Management Plan 25

26. Slide 26: Summary for Progress of the Medium-Term Management Plan

    Summary for Progress of the Medium-Term Management Plan  FY2025 marked a solid start to the Mid-Term Management Plan(MTMP). The new divisional structure has fostered a mindset that goes beyond individual business boundaries.  Accelerating growth is essential to achieve our 2027 and 2030 goals. Key

27. Slide 27: Initiatives to Accelerate Growth

    Initiatives to Accelerate Growth Three priority initiatives launched this fiscal year, based on a clear recognition of these challenges. 1 Reforms to Double the Productivity of In-house Software Business. ~Strengthen delivery capabilities, growth potential and profitability of our software business fo

28. Slide 28: Reforms to Double the Productivity of In-house Software Business

    1. Reforms to Double the Productivity of In-house Software Business  To halve lead time by applying AI across all processes from requirements definition to cutover in In-house software business.  In addition, apply AI-driven development to 100% of new product development to enhance development spee

29. Slide 29: New Product Development Process Powered by Data and AI

    2. Defining a New Product Development Process Powered by Data and AI  Driven by technological and market shifts such as SDV and AI-Driven Mobility, demand for shorter development cycles in manufacturing is accelerating.  Together with Fraunhofer IEM, the largest applied research institute in Europe

30. Slide 30: Strengthening Financial Industry Solutions and Providing Programmable Payments

    3. Strengthening Financial Industry Solutions and Providing Programmable Payments  Financial industry is undergoing major change, driven by rising interest rates and emergence of stablecoins.  In addition to strengthening system support for financial institutions core business through BANK・R, we en

31. Slide 31: Path of Self-Transformation and the Way Forward

    Path of Self-Transformation and the Way Forward Continuing to build upon self-transformation to achieve Vision 2030 2030 ・Achiecving Vision 2030 ・Further value proposition and growth 2028 2025 （50th Anniversary） ・3rd MTMP start ・Introducing headquarter system ・Expansion to TOKYO TORCH Torch Tower 20

32. Slide 32: Appendix

    | Appendix 32)

33. Slide 33: Index Certification

    Index Certification *FTSE Russell confirms that DENTSU SOKEN INC. has been independently assessed according to the index criteria, and has satisfied the requirements to become a constituent of the FTSE JPX Blossom Japan Index. Created by the global index and data provider FTSE Russell, the FTSE JPX B

34. Slide 34: Consolidated Financial Results

    Appendix Consolidated Financial Results (Millions of yen) FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 Net sales 56,771 79,783 83,423 91,024 100,679 108,679 112,085 129,054 142,608 152,642 164,865 YoY 72.5% 140.5% 104.6% 109.1% 110.6% 107.9% 103.1% 115.1% 110.5% 107.0

35. Slide 35: Net Sales and Operating Profit by Reportable Segment

    Appendix Net Sales and Operating Profit by Reportable Segment (Millions of yen) FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 Net sales 17,851 22,037 21,413 23,242 24,622 23,888 25,176 28,125 30,598 31,910 34,832 Financial Solutions Operating profit 1,441 2,110 1,821 1,7

36. Slide 36: Net Sales by Service Category

    Appendix Net Sales by Service Category (Millions of yen) FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 Net sales 3,350 5,426 5,515 6,818 6,819 5,975 7,200 7,418 8,611 10,480 10,872 Consulting Services Composition 5.9% 6.8% 6.6% 7.5% 6.8% 5.5% 6.4% 5.8% 6.0% 6.9% 6.6% N

37. Slide 37: Investor Relations Contact

    For further information, please contact: DENTSU SOKEN INC. https://www.dentsusoken.com/english/ir Executive Office g-ir@group.dentsusoken.com Investor Relations +81-3-6713-6160

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