Intelligent Wave Inc. · TSE:4847

Intelligent Wave — Q1 FY06/23 Earnings Presentation

28 slides from Intelligent Wave's earnings presentation, Nov 7, 2022

  1. Slide 1: Financial Results for Q1 FY06/23

    Financial Results for Q1 FY06/23 (July 1 to September 30, 2022) [Non-Consolidated] Intelligent Wave Inc. Announced on November 7, 2022 Copyright © 2022, INTELLIGENT WAVE INC. All rights reserved.

  2. Slide 2: Financial Results Q1 FY06/23

    Financial Results Q1 FY06/23 Key initiatives in Q1 FY06/23 Forecast for FY06/23 Reference Copyright © 2022, INTELLIGENT WAVE INC. All rights reserved. 2

  3. Slide 3: Overview

    Overview Million yen Q1 FY06/22 Q1 FY06/23 Change（YoY） Net sales 2,251 3,646 ＋1,395 ＋62.0% Operating income 126 483 ＋357 ＋283.3% Ordinary income 124 480 ＋356 ＋287.1% Net income 82 324 ＋242 ＋295.1% Amount of orders 2,829 3,130 ＋301 ＋10.6% Orders on hand 5,912 9,047 ＋3,135 ＋53.0% Copyright © 2022, INT

  4. Slide 4: Sales by categories

    Sales by categories (＋) “Hardware” increased due to FEP system* renewal for existing customers, “cloud services” increased, “system development” increased due to large projects for credit card companies. (△) “In-house products & Services” decreased mainly due to several license sales of in-house pro

  5. Slide 5: Sales by Business Domain

    Sales by Business Domain Sales increased due to FEP system renewal projects, an increase in the number of users of cloud services, and a large-scale project for a credit card company. Million yen Q1 FY06/22 Q1 FY06/23 Change Net Sales 2,251 3,646 ＋1,395 Payment & Finance 1,787 2,972 ＋1,185 FEP・Fraud

  6. Slide 6: Top Three Clients by Sales

    Top Three Clients by Sales Million yen Q1 FY06/22 Q1 FY06/23 Change Main projects Hardware sales and system System 1. 309 966 ＋657 development due to FEP system* Integrator renewal Tokenization Service system (for Smartphone payment 2. DNP 346 445 ＋100 transaction ) , Payment Platform*, System opera

  7. Slide 7: Sales by "Stock" and "Flow"

    Sales by “Stock” and “Flow” We have redefined the classification of sales based on so-called “stock” and “flow” type from the previous fiscal year. ■…Flow ■…Stock Million yen 2,216 2,175 1,634 1,382 1,055 1,196 1,252 1,312 1,442 1,470 1Q 2Q 3Q 4Q 1Q FY06/22 FY06/23 Stock: categories with contracts t

  8. Slide 8: Operating income

    Operating income (＋) Increase in sales due to hardware sales, etc. (△) Increase in expenses due to reinforcement of the infrastructure environment and the operation system for the cloud services, increase in SG&A expenses, etc. 576 ■…Operating income ●…Operating margin Million yen 464 483 451 352 15

  9. Slide 9: Amount of Orders

    Amount of Orders Million yen 4,686 4,252 3,954 3,056 3,130 2,829 2,562 2,660 2,612 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY06/21 FY06/22 FY06/23 Copyright © 2022, INTELLIGENT WAVE INC. All rights reserved. 9

  10. Slide 10: Orders on Hand

    Orders on Hand ■… Security ■… Cloud Services ■… Payment & Finance ■… Payment & Finance（ System Development ） Million yen 9,268 9,563 9,047 666 7,963 660 749 639 6,075 5,912 4,210 4,141 5,688 5,530 4,214 681 5,022 606 693 689 4,236 423 1,934 1,762 1,609 2,611 1,853 4,397 4,755 4,083 2,667 3,086 3,460

  11. Slide 11: Cloud Service Business

    Cloud Service Business Sales were in line with the plan. Profits were lower than planned due to increased expenses resulting from the strengthening of the infrastructure environment and the operational system, but are expected to improve from the second quarter onward. Million yen FY06/22 FY06/23 Q1

  12. Slide 12: Orders for Cloud Services

    Orders for Cloud Services IOASIS received several large orders in the previous fiscal year, and is expected to increase this fiscal year, mainly due to additional development from existing customers. IFINDS and IGATES are receiving strong inquiries for orders, and the number of users is expected to

  13. Slide 13: Key initiatives in Q1 FY06/23

    Financial Results Q1 FY06/23 Key initiatives in Q1 FY06/23 Forecast for FY06/23 Reference Copyright © 2022, INTELLIGENT WAVE INC. All rights reserved. 13

  14. Slide 14: Expansion of payment business

    Expansion of payment business We will maintain and expand the FEP and the fraud detection business which is our strength, and we will also aim to expand sales in the payment business by increasing the number of users of Cloud Services and expanding our business domain by developing Acquiring and Per

  15. Slide 15: Collaborated initiatives for payment card fraud prevention

    Collaborated initiatives for payment card fraud prevention Initiates payment card fraud prevention for whole digital payment market against card fraud expanding year by year (Reference) total cost for damage of credit card fraud* 33 billion yen (2021) → 20.6 billion yen (Jan. – Jun. 2022) *Reference

  16. Slide 16: Data analyzing solution "AIMD"

    Data analyzing solution “AIMD” Released “AIMD,” the solution realizing multiple analysis on various data such as media data, sensor data and public information. Utilizing our strength of ultra-high-speed processing, we will contribute to problem solving in a wide range of industries. <expected use c

  17. Slide 17: Demonstration experiments of Workation

    Demonstration experiments of Workation Conducting demonstration experiment of workation as one of new workstyles. Measuring the effects on employees’ health and productivity. Why we starts the experiments We promote employees’ diversity by pursuing comfortable working environment and worthwhile jobs

  18. Slide 18: Forecast for FY06/23

    Financial Results Q1 FY06/23 Key initiatives in Q1 FY06/23 Forecast for FY06/23 Reference Copyright © 2022, INTELLIGENT WAVE INC. All rights reserved. 18

  19. Slide 19: FY06/23 Full-year Forecasts

    FY06/23 Full-year Forecasts Million yen FY06/22 FY06/23 Change actual forecast （full year) 1H 2H Full year 1H 2H Full year Net sales 4,887 6,606 11,493 6,800 6,700 13,500 ＋17.5% Payment & Finance 3,915 5,313 9,229 5,320 4,830 10,150 ＋10.0% Cloud Services 493 680 1,173 880 1,120 2,000 ＋70.5% Security

  20. Slide 20: FY06/23 Forecasts

    FY06/23 Forecasts FY06/22 FY06/23 (actual) (forecast) Q1 Q2 １H YoY Q1 Q2 １H Million yen (actual) (1Hforecast- Q1actual) (forecast) （1H） Net sales 2,251 2,635 4,887 3,646 3,154 6,800 ＋39.1% Payment & Finance 1,787 2,127 3,915 2,972 2,341 5,313 ＋35.7% System Development 1,082 1,287 2,369 1,278 1,535 2

  21. Slide 21: Reference

    Financial Results Q1 FY06/23 Financial Results Q1 FY06/23 Forecast for FY06/23 Reference Copyright © 2022, INTELLIGENT WAVE INC. All rights reserved. 21

  22. Slide 22: Cost of manufacturing

    Cost of manufacturing Thousand yen FY06/22 FY06/23 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Materials cost 7,194 8,162 11,264 10,943 21,857 Labor cost 718,848 734,397 714,332 724,102 731,531 Expenses 431,898 413,397 403,356 501,360 486,571 Subcontracting cost 603,162 668,363 757,872 831,229 892,098 Total manufacturi

  23. Slide 23: SG&A expenses

    SG&A expenses Thousand yen FY06/22 FY06/23 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Salaries 290,810 310,527 335,648 361,087 384,909 Training and recruiting 10,332 13,989 24,046 24,878 14,951 Rent 18,793 18,328 16,822 17,320 24,509 Advertising 12,691 11,432 12,179 9,110 9,994 R&D 9,301 5,513 1,855 0 1,319 Depreciati

  24. Slide 24: Cash Flows

    Cash Flows ＋1,665 Million yen -475 -447 Income before taxes ＋480 D&A ＋214 Purchase of PP&E -161 Dividends -446 A/R decrease +1,202 Purchase of -313 A/P decrease -287 intangible assets Inventory increase -56 Income taxes paid -296 4,676 3,932 JPY 743mil increase 30-Jun-22 Operating activities Investi

  25. Slide 25: Historical performance

    Historical performance ■… Net sales ■ … Operating income Million yen 11,187 11,493 10,603 10,920 10,443 8,469 7,137 7,205 6,695 6,558 6,367 6,160 5,891 5,870 5,505 5,527 5,257 5,241 4,844 5,174 4,956 4,762 1,854 1,528 1,482 1,519 1,177 1,036 1,130 731 702 921 678 484 547 371 389 417 228 358 321 131

  26. Slide 26: Reference) Our Cloud Services

    Reference) Our Cloud Services ・SaaS product for providing operation system and supporting customers to launch acquiring business ■IOASIS ・ Offer 24/7 system operation ■IPRETS ・Point management system that grants points at the time of payment, etc. ■IGATES ・Provides 24/7 non-stop switching operation

  27. Slide 27: Company overview

    Company overview As of June 30,2022 Established December 27, 1984 Location Kayabacho Tower, 1-21-2 Shinkawa, Chuo-ku, Tokyo Employees 449 Parent company Dai Nippon Printing Co., Ltd. (50.71%) Capital stock JPY843.75k Shares 26,340,000 Shareholders 8,939 outstanding Ownership (%) % of shareholders In

  28. Slide 28: 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

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