Projectholdings.inc. · TSE:9246
Projectholdings.inc — Q2 FY2024 Earnings Presentation
38 slides from Projectholdings.inc's earnings presentation, Aug 13, 2024
Slide 1: Financial Results for the First Two Quarters of the Fiscal Year Ending December 31, 2024
Financial Results for the First Two Quarters of the Fiscal Year Ending December 31, 2024 ProjectHoldings, Inc. [TSE Growth: 9246] (Company name changed from ProjectCompany, Inc. in January 2024) August 13, 2024
Slide 2: Executive Summary Q2 FY2024 Financial Results
Executive Summary Q2 FY2024 Financial Results Net Sales Operating Profit EBITDA*1 EBITDA Margin ¥1,249 million ¥-127 million ¥-63 million -5.0% （-23.6% YoY） （ - YoY） （ - YoY） （-19.6pts YoY） ◼ Net sales decreased QoQ as the Company restrained acquisition of projects to prioritize the acceptance and d
Slide 3: Agenda
1. Overview of ProjectHoldings, Inc. ・・・ p. 4 2. Q2 FY2024 Financial Results ・・・ p. 11 3. Situation of the Digital Transformation Business ・・・ p. 17 4. Situation of the DX x Technology Business ・・・ p. 21 5. Progress toward Financial Results Forecast for FY2024 ・・・ p. 23 Appendix (i) Overview of Digi
Slide 4: 1. Overview of ProjectHoldings, Inc.
1. Overview of ProjectHoldings, Inc. Proj ec tHoldings , Inc . 4
Slide 5: Group Management Philosophy
1. Overview of ProjectHoldings, Inc. Group Management Philosophy Mission Creating a Project-based Society Vision Our vision is to foster and develop a large number of professionals who will lead the next generation and provide a variety of solutions that transform companies. By doing so, we aim to g
Slide 6: Company History
1. Overview of ProjectHoldings, Inc. Company History Period of multi-faceted growth through integrated group management Transition to a pure holding company structure and office relocation 2024.1 Consolidated Dr.KENKO KEIEI Inc. and artwize inc. Into the Group 2023.4 Established ProjectDigitalMarket
Slide 7: Business Domains of the Group
1. Overview of ProjectHoldings, Inc. Business Domains of the Group ◼ We define “digital transformation” (DX) as the expansion of businesses at operating companies through the use of digital technologies to develop new businesses and improve operations. With this understanding, we provide one-stop su
Slide 8: Business Structure Diagram
1. Overview of ProjectHoldings, Inc. Business Structure Diagram Partner *1 Service support Digital transformation business Consulting support Cooperating Client Corporate planning and Company *2 Payment of support fees Payment of consignment fees business departments Participation in user tests Supp
Slide 9: Case Studies
1. Overview of ProjectHoldings, Inc. Case Studies SBI NEOMOBILE transcosmos SECURITIES Support for launching a stock purchase service using T-points Joint DX support by combining know-how of both companies Supported a project to launch a new service that enables transactions Supporting more than 600
Slide 10: Situation of Employees
1. Overview of ProjectHoldings, Inc. Situation of Employees ◼ Although the number of employees in DX x HR business decreased by about 20 due to the transfer of shares in ProjectHRsolutions, Inc., the number of employees increased YoY by 18 to 263 for the entire Group due to 50 new employees in April
Slide 11: 2. Q2 FY2024 Financial Results
2. Q2 FY2024 Financial Results Proj ec tHoldings , Inc . 11
Slide 12: Financial Results – Net Sales
2. Q2 FY2024 Financial Results Financial Results – Net Sales ◼ Achieved net sales of ¥1,249 million in Q2 FY2024, down 13.2% QoQ and down 23.6% YoY. ◼ The main reason for the decrease in net sales was that priority was given to the acceptance and preparation of new graduates and the development of e
Slide 13: Financial Results – Operating Profit and EBITDA
2. Q2 FY2024 Financial Results Financial Results – Operating Profit and EBITDA ◼ Operating profit and EBITDA decreased mainly due to a decrease in revenue resulting from prioritizing human resource development in Digital transformation business. Operating Profit EBITDA Operating profit (million yen)
Slide 14: Results by Segment - Net Sales
2. Q2 FY2024 Financial Results Results by Segment - Net Sales ◼ Net sales by segment are as follows. Digital transformation business DX x Technology business DX x HR business *The aggregation standards for marketing services were partially changed in FY2023, *The business was consolidated in Q4 FY20
Slide 15: Results by Segment - Cost of Sales & Gross Profit
2. Q2 FY2024 Financial Results Results by Segment - Cost of Sales & Gross Profit ◼ Operating loss for Q2 was ¥127 million mainly due to the decrease in net sales and gross profit margin (p.20) in Digital transformation business. ◼ Financial results forecast for FY2024, announced on May 15, is progre
Slide 16: Breakdown of SG&A Expenses
2. Q2 FY2024 Financial Results Breakdown of SG&A Expenses ◼ Hiring expenses increased mainly in agent fees due to the favorable progress in mid-career recruitment and the timing of making unofficial job offers to new graduates for 2025. SG&A expenses Results [million yen] QoQ Description to net sale
Slide 17: 3. Situation of the Digital Transformation Business
3. Situation of the Digital Transformation Business Proj ec tHoldings , Inc . 17
Slide 18: Business KPI Trends｜Number of Clients & Net Sales per Client
3. Situation of the Digital Transformation Business Business KPI Trends｜Number of Clients & Net Sales per Client ◼ The number of UIscope projects and number of clients remained weak due to careful assignment with priority given to human resource development. ◼ Net sales per client remained steady, a
Slide 19: Business KPI Trends｜Number of Employees & Net Sales per Employee
3. Situation of the Digital Transformation Business Business KPI Trends｜Number of Employees & Net Sales per Employee ◼ The number of employees at the end of the period increased to 148 due to the steady progress of recruitment and the declining trend in attrition rate. ◼ Although the net sales per e
Slide 20: Topics｜Factors behind Declining Profit Margins (QoQ)
3. Situation of the Digital Transformation Business Topics｜Factors behind Declining Profit Margins (QoQ) ◼ The decrease in gross profit margin in Digital transformation business was mainly due to a decrease in net sales due to the completion of short-term projects and an increase in personnel expens
Slide 21: 4. Situation of the DX x Technology Business
4. Situation of the DX x Technology Business Proj ec tHoldings , Inc . 21
Slide 22: Business KPI Trends｜Number of Engineers and Net Sales per Engineer
4. Situation of the DX x Technology Business Business KPI Trends｜Number of Engineers and Net sales per Engineer ◼ Since the integration of ProjectTechnologies Inc. and artwize inc. in April 2024, we have made good progress in hiring engineers. ◼ Since the assignment of qualified engineers is more pr
Slide 23: 5. Progress toward Financial Results Forecast for FY2024
5. Progress toward Financial Results Forecast for FY2024 Proj ec tHoldings , Inc . 23
Slide 24: Progress toward forecast
5. Progress toward Financial Results Forecast for FY2024 (announced on May 15) Progress toward forecast ◼ Although the H1 progress rate for consolidated net sales is lower than 50%, mainly because the progress rate for the Digital transformation business is only 45%, we expect to achieve the full-ye
Slide 25: Progress and forecast for operating profit
5. Progress toward Financial Results Forecast for FY2024 (announced on May 15) Progress and forecast for operating profit ◼ At the operating profit level, we have already recorded around 80% of the deficit in the full-year results forecast, but in Q2, there was a significant impact from the number o
Slide 26: Appendix (i) Overview of Digital Transformation Business
Appendix (i) Overview of Digital Transformation Business Proj ec tHoldings , Inc . 26
Slide 27: Feature | 1) Strong Customer Base Centered on Major Companies
Appendix (i) Overview of Digital Transformation Business Feature | 1) Strong Customer Base Centered on Major Companies ◼ About 60% of all clients are large companies with sales of 100 billion yen or more accounting for about 80% of our total net sales. ◼ We do business with a wide range of major com
Slide 28: Feature | 2) Accumulation of Long-term Customers through Recurring-type Business Model
Appendix (i) Overview of Digital Transformation Business Feature | 2) Accumulation of Long-term Customers through Recurring-type Business Model ◼ We recognize that consulting companies generally have a sales structure that emphasizes spot and flow projects. ◼ We have bolstered net sales by building
Slide 29: Case Introduction | Consulting Services (New Business Development)
Appendix (i) Overview of Digital Transformation Business Case Introduction | Consulting Services (New Business Development) ◼ Business Strategy Planning provides support for new business development projects, such as considering business models and formulating business plans. ◼ We develop and manage
Slide 30: Case Introduction | Marketing Services
Appendix (i) Overview of Digital Transformation Business Case Introduction | Marketing Services (Marketing Strategy Planning to Implementation Support) ◼ In planning a marketing strategy, it is important to clarify the purpose of marketing by defining specific targets. ◼ Furthermore, the value of ou
Slide 31: Case Introduction | UIscope Services
Appendix (i) Overview of Digital Transformation Business Case Introduction | UIscope Services ◼ In UI research, we collect unfiltered opinions from target users regarding the usability of applications and websites. ◼ By identifying bottlenecks that cannot be fully understood through quantitative dat
Slide 32: Appendix (ii) Other Reference Information
Appendix (ii) Other Reference Information Proj ec tHoldings , Inc . 32
Slide 33: Company Overview
Appendix (ii) Other Reference Information Company Overview Company ProjectHoldings, Inc. Name Head Office Azabudai Hills Mori JP Tower 24F, 1-3-1 Azabudai, Minato-ku, Tokyo Location Establishment January 2016 Share Capital 50,000 thousand yen (as of June 30, 2024) Representative Director, Doi, Yunos
Slide 34: Financial Data
Appendix (ii) Other Reference Information Financial Data Fiscal period 1st period 2nd period 3rd period 4th period 5th period 6th period 7th period 8th period 9th period December December December December December December December December Q2 FY2024 Fiscal year end 2016 2017 2018 2017 2020 2021 20
Slide 35: Three-Year Performance Targets (FY2024-FY2026)
Appendix (ii) Other Reference Information Three-Year Performance Targets (FY2024-FY2026) ◼ Performance targets for FY2025 and beyond are unchanged from those announced in March 2024. ◼ The impact on the next fiscal year and beyond is being scrutinized, and a new three-year forecast will be announced
Slide 36: Environment Social Governance
Appendix (ii) Other Reference Information Initiatives Related to Environmental, Social and Governance Issues Relocation to a new environmentally friendly office E nvironment ✓ Relocated head office to Azabudai Hills, which boasts about 2.4ha of greenery. ✓ Moved into the office building that supplie
Slide 37: Points to Note
Points to Note ◼ Information in this document other than information on the Company is derived from publicly available information, and the Company makes no representations or warranties regarding its authenticity, accuracy or completeness. ◼ This document also refers to the future prospects of the
Slide 38: ProjectHoldings
ProjectHoldings