Dentsu Soken Inc. · TSE:4812

Dentsu Soken — Information Services International-Dentsu — Q3 FY2023 Earnings Presentation

14 slides from Dentsu Soken's earnings presentation, Oct 31, 2023

  1. Slide 1: Presentation Material of Financial Results for the Third Quarter of FY2023

    PRESENTATION MATERIAL OF FINANCIAL RESULTS FOR THE THIRD QUARTER OF FY2023 (FROM JANUARY 1, 2023 TO SEPTEMBER 30, 2023) October 31, 2023 Information Services International-Dentsu, Ltd. Note: This English translation is solely for reference purposes and not a legally definitive translation of the ori

  2. Slide 2: Outline of financial results for the Third Quarter of FY2023

    Outline of financial results for the Third Quarter of FY2023 2

  3. Slide 3: Financial Highlights for the Third Quarter of FY2023

    Financial Highlights for the Third Quarter of FY2023  Net sales : +12.2% with expansion in all segments  Operating profit : +9.6%, absorbing increase in SG&A expenses  Orders Received : +10.7%, mainly in Financial/Manufacturing solutions  Progress against the full-year plan : 75.2％ of net sales,

  4. Slide 4: 1. Consolidated Results for the Third Quarter of FY2023

    1. Consolidated Results for the Third Quarter of FY2023 (Unit : Millions of yen) YoY 3Q of FY2023 (cumulative) 3Q of FY2022 Variance % change (cumulative) Net sales 105,267 93,808 +11,459 +12.2 Gross profit 37,859 34,018 +3,841 +11.3 Profit margin 36.0% 36.3% -0.3p - Selling, general and administrat

  5. Slide 5: 2. Factors for Increase/Decrease in Operating Profit (YoY)

    2. Factors for Increase/Decrease in Operating Profit (YoY) Impact of decline in gross profit margin -3.1 (Unit: 100 million of yen) YoY Increase in SG&A Effect of Increase expenses -24.7 +13.7 in sales +41.5 Operating Gross profit margin declined -0.3p, mainly in profit Operating In-house Software a

  6. Slide 6: 3. Net Sales and Operating Profit by Reportable Segment

    3. Net Sales and Operating Profit by Reportable Segment (Unit : Millions of yen) 3Q of FY2023 YoY Reportable segment Overview (cumulative) Variance % change Net sales 22,582 +1,872 +9.0 Net sales increased due to the expansion of the sales and introduction of software products in the core banking ar

  7. Slide 7: Ref.) Consolidated Results for the 3Q (July - September) of FY2023

    Ref.) Consolidated Results for the 3Q (July - September) of FY2023 ■ Consolidated Results ■ Reportable Segment (Unit : Millions of yen) (Unit : Millions of yen) YoY YoY 3Q of FY2023 3Q of FY2023 Reportable segment (July -September) 3Q of FY2022 Variance % change (July -September) Variance % change N

  8. Slide 8: 4. Net Sales by Service Category and the Dentsu Group

    4. Net Sales by Service Category and the Dentsu Group (Unit : Millions of yen) 3Q of FY2023 YoY Service category (cumulative) Variance % change Consulting Services 6,024 +697 +13.1 Custom System Development 23,259 -1,227 -5.0 In-house Software 22,593 +4,897 +27.7 Third-party Software 35,351 +5,312 +

  9. Slide 9: 5. Net Sales by Industry

    5. Net Sales by Industry (Unit : Millions of yen) 3Q of FY2023 (cumulative) YoY Industry Composition Ratio Net Sales Variance % change (%) Banks 16,492 15.7 +2,067 +14.3 Other financial institutions 5,337 5.1 -681 -11.3 Financial 21,830 20.8 +1,386 +6.8 Transportation equipment 16,399 15.5 +2,968 +2

  10. Slide 10: 6. Orders Received and Order Backlog

    6. Orders Received and Order Backlog (Unit : Millions of yen) Orders received Order backlog 3Q of FY2023 3Q of FY2023 End of 3Q of YoY (%) YoY (%) YoY (%) (July -September) (cumulative) FY2023 Total 32,111 +8.8 112,452 +10.7 58,834 +22.7 Financial Solutions 7,952 +32.8 23,203 +9.6 8,403 +7.3 Reporta

  11. Slide 11: Forecasts for FY2023

    Forecasts for FY2023 Note: Explanation regarding the appropriate use of forecasts of business results The forecast figures are projections based on information available at the time of release and are not intended as a guarantee that we will achieve these targets. Actual results may differ significa

  12. Slide 12: 1. Forecast for FY2023

    1. Forecast for FY2023 We maintain unchanged our forecasts, as announced on July 31, 2023. (Unit : Millions of yen) (Reference) YoY 3Q progress FY2023 against full-year FY2022 Variance % change forecast (%) Net sales 140,000 129,054 +10,946 +8.5 75.2 Operating profit 21,000 18,590 +2,410 +13.0 74.1

  13. Slide 13: 2. Net Sales Forecast Reference for FY2023 by Reportable Segment

    2. Net Sales Forecast Reference for FY2023 by Reportable Segment (Unit : Millions of yen) (Reference) YoY 3Q progress FY2023 against full-year FY2022 Variance % change forecast (%) Financial Solutions 29,500 28,125 +1,375 +4.9 76.5 Business Solutions 21,900 18,608 +3,292 +17.7 79.8 Manufacturing Sol

  14. Slide 14: 3. Net Sales Forecast Reference for FY2023 by Service Category

    3. Net Sales Forecast Reference for FY2023 by Service Category (Unit : Millions of yen) (Reference) YoY 3Q progress FY2023 against full-year FY2022 Variance % change forecast (%) Consulting Services 8,580 7,418 +1,162 +15.7 70.2 Custom System Development 33,006 33,107 -101 -0.3 70.5 In-house Softwar

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