Densan System Holdings Co. Ltd. · TSE:4072
Densan System — Q3 2023 Earnings Presentation
19 slides from Densan System's earnings presentation, Nov 1, 2023
Slide 1: Presentation Materials for the 3Q FY 2023 Results Briefing
Densan System Holdings Co., Ltd. Presentation Materials for the 3Q FY 2023 Results Briefing Tokyo Stock Exchange Prime Nagoya Stock Exchange Premier Securities Code: 4072 Forward-looking statements contained in this document are based on current estimates and projections and include potential risks
Slide 2: Table of Contents
Table of Contents ▸ 3Q FY 2023 Business Results Highlights P3 ▸ 3Q FY 2023 Transition in Quarterly Business Results P4 ▸ 3Q FY 2023 By Segment P5 ▸ 3Q FY 2023 Information Services Summary P6 ▸ 3Q FY 2023 Information Services in Detail P7 ▸ 3Q FY 2023 Payment Agency Services Summary P10 ▸ 3Q FY 2023
Slide 3: 3Q FY 2023 Business Results Highlights
3Q FY 2023 Business Results Highlights Net sales 44.159 billion yen (16.2% ⤴) Operating income 3.056 billion yen (65.3% ⤴) Net income attributable to shareholders of the parent company 2.075 billion yen (49.8% ⤴) 親会社株式に帰属する純利益 7.73億円 （ 37.6% ⤴ ） 3
Slide 4: Business Results Highlights
3Q FY2023 Business Results Highlights Unit: Million yen ▸ Steady sales thanks to launch of operations at new business partners ▸ Significant profit growth in payment agency services continuing from 1H. ▸ Full-year plan remains unchanged FY2022 FY2023 YoY change Full-year First nine First nine Progre
Slide 5: By Segment
3Q FY2023 By Segment Unit: Million yen ▸ In information services, although there were some unprofitable projects, auto auction business system projects and Google and other cloud services performed well. Information security products and equipment sales to local governments also contributed to incre
Slide 6: Transition in Quarterly Business Results
3Q FY2023 Transition in Quarterly Business Results Unit: Million yen ▸ Sales have increased in every quarter year on year. ▸ Profit improved in 3Q after losses on unprofitable projects were provided for in 2Q. Net sales Operating income FY2022 FY2023 FY2022 FY2023 6
Slide 7: Information Services Summary
3Q FY2023 Information Services Summary Unit: Million yen ▸ In SI and software development, systems for major construction companies, auto auction business systems, and cloud services such as Google Workspace and Google Maps performed well. Information security products were also strong, leading to s
Slide 8: Information Services in Detail (Google Business)
3Q FY2023 Information Services in Detail (Google Business) ▸ Google Workspace (GWS) saw steady growth in the number of business Net sales Number of Google (Google Workspace) installations partners and licenses acquired. (million yen) (Number of installations) ▸ Focused efforts on providing ancillary
Slide 9: Information Services in Detail (BPO Business)
3Q FY2023 Information Services in Detail (BPO Business) ▸ Invoice preparation services performed Net sales Number of items processed well. (million yen) (in thousand items) ▸ Data entry on a downward trend as business partners continued to go paperless. FY2021 FY2022 FY2023 9
Slide 10: Payment Agency Services Summary
3Q FY2023 Payment Agency Services Summary Unit: Million yen ▸ Sales and profit increased due to steady growth continuing from 1H in newly acquired customers who launched operations in the previous year. ▸ Profit increased due to increased use of smart phone payments and more efficient system operati
Slide 11: Payment Agency Services in Detail (Payment and Collection / Online Payment)
3Q FY2023 Payment Agency Services in Detail (Payment and Collection Agency Services / Online Payment Services) Number of items processed ▸ Number of items processed decreased year (in thousand items) on year due to the termination of contracts with some large business partners. ▸ In terms of service
Slide 12: Payment Agency Services in Detail (Remittance / Peripheral Services)
3Q FY2023 Payment Agency Services in Detail (Remittance Services / Payment Agency Peripheral Services) Number of items processed (in thousand items) ▸ International remittances were weak, International remittance Domestic remittance impacted by the weak yen and stricter regulations. ▸ The number of
Slide 13: Long-Term Plan December 2021 to December 2027: Challenge 1000
Long-Term Plan December 2021 to December 2027 Challenge 1000 2027年 Net sales 1000 billion yen Taking on the challenge to become a company Information service with ¥100 billion in net sales by 2027! ・BPO services ・Software development, operation, and maintenance services ・Medical services 2021 The co
Slide 14: Long-Term Plan: Challenge 1000 Priorities
Long-Term Plan December 2021 to December 2027 Challenge 1000 Taking on the challenge to become a company with ¥100 billion in net sales by 2027! DSK Transformation (DX, self-transformation to create new value) Strengthen collaboration among Group companies (creation of new services, cross-selling) E
Slide 15: Medium-Term Plan December 2023 to December 2025
Medium-Term Plan December 2023 to December 2025 What should be done to achieve Challenge 1000? DSK Transformation → From contracted development to packaged services From paper-based to paperless Improve efficiency of back-end operations Strengthen collaboration among Group companies → Strengthen and
Slide 16: Medium-Term Plan FY2023 to FY2025
Medium-Term Plan FY2023 to FY2025 Unit: Million yen ▸ This is an important three years for Challenge1000. ▸ Gradually increase the profit margin (overall) over a period of three years. ▸ For the three-year period, we have set the YoY growth rate targets for sales and operating income at 15.3% and 15
Slide 17: Topics: Evolution of TREE PAYMENT
3Q FY2023 Topics ▸ Evolution for "TREE PAYMENT," a payment service platform (Densan System) March 10, 2023: Launch of "TREE PAYMENT Account Transfer —100% Deposit Guarantee service—" a credit guarantee type account transfer service March 29, 2023: Integration with "EngagePlus," a message delivery se
Slide 18: Topics / Impact of Social Conditions
3Q FY2023 Topics / Impact of Social Conditions Information service segment Although the impact of foreign exchange (yen depreciation) is becoming more moderate, the impact of higher prices and personnel expenses is expected to grow in the future. Increases in purchase prices for equipment, paper, et
Slide 19: Dividends
Dividends ▸ FY2022: Annual ordinary dividend of ¥35 per share (interim dividend of ¥17 and year-end dividend of ¥18) ▸ FY2023 forecast: Annual ordinary dividend of ¥37 per share (interim dividend of ¥18 and year-end dividend of ¥19) Commemorative dividend for the transition to a holding company stru
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