Digital Arts Inc. · TSE:2326
Digital Arts — Q1 FY2020 Earnings Presentation
28 slides from Digital Arts's earnings presentation, Jul 31, 2019
Slide 1: Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2020
Digital Arts Inc. (Securities Code: 2326) Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2020 (From April 1, 2019 to June 30, 2019) Supplementary Material Wednesday, July 31, 2019 Copyright © 2015 Digital Arts Inc.
Slide 2: Key Points
Supplementary Material on Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2020 Key Points Copyright © 2019 Digital Arts Inc.
Slide 3: Key Points
Key Points (1) Started to supply FinalCode Ver. 6 in June 2019 The software incorporates an automatic file encryption function, for which there is strong demand from existing users and potential customers, and creates a world in which there is no raw data. We introduced a free browsing function
Slide 4: Consolidated Results Highlights
Supplementary Material on Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2020 Consolidated Results Highlights Copyright © 2019 Digital Arts Inc.
Slide 5: Consolidated Financial Highlights for the First Quarter
Consolidated Financial Highlights for the First Quarter of the Fiscal Year Ending March 31, 2020 Consolidated Net Sales: 1,249 million yen (+31 million yen / +2.6% YoY) Progress was made in winning projects, mainly for renewals of contracts that net sales had remained outstanding in the previous con
Slide 6: Summary of Financial Results: Consolidated Results
Summary of Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2020 Consolidated Results (In millions of yen ) FY March 2019 1Q FY March 2020 1Q Change YoY Net sales 1,217 1,249 +2.6% Gross profit 927 962 +3.8% Selling, general and administrative expenses 632 548 -13.2% Opera
Slide 7: Summary of Financial Results: Non-Consolidated Results
Summary of Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2020 Non-Consolidated Results (In millions of yen) FY March 2019 1Q FY March 2020 1Q Change YoY Net sales 1,204 1,211 +0.6% Gross profit 926 950 +2.6% Selling, general and administrative expenses 543 517 -4.8% Ope
Slide 8: Trend in Net Sales
Trend in Net Sales (In millions of yen) Continuously secured an increase in net sales. 1,249 1,217 (103%) 1,158 (105%) (126%) 916 (114%) 803 (119%) 682 673 650 (131%) (103%) (114%) 570 521 (84%) (116%) 448 368 (122%) FY Mar. 2009 FY Mar. 2010 FY Mar. 2011 FY Mar. 2012 FY Mar. 2013 FY Mar. 2014 FY Ma
Slide 9: Quarterly Trend in Net Sales
Quarterly Trend in Net Salas Ended the first quarter with an increase in net sales year on (In millions of yen) year, as in the previous year. 1,674 (107%) 1,540 1,565 1,546 1,503 (123%) (102%) (118%) (133%) 1,402 (130%) 1,309 (87%) 1,249 1,217 1,158 (105%) (103%) 1,098 (126%) 1,083 (135%) (99%) 916
Slide 10: Cost of Sales and Selling, General and Administrative Expenses
Cost of Sales and Selling, General and Administrative Expenses Selling, general and administrative expenses decreased due to the effect of the more focused application of management resources as a result of group reorganization based on the review of overseas strategies undertaken in the previous
Slide 11: Quarterly Trend in Cost of Sales
Quarterly Trend in Cost of Sales (In millions of yen) Increase in depreciation after the release of a new product Labor Depreciation 306 301 Transfer to other accounts and others (125%) 289 282 286 (114%) 265 (125%) (92%) (99%) 256 250 240 244 (100%) (113%) 232 235 79 236 (83%) (110%) 90 (114%) 75 (
Slide 12: Quarterly Trend in Selling, General and Administrative Expenses
Quarterly Trend in Selling, General and Administrative Expenses Significant reduction in overseas expenses following revision of Group’s overseas strategy Personnel expenses Advertising expenses Other Overseas expenses 632 (In millions of yen) 576 596 (111%) 569 568 556 (102%) 548 (113%) (99%) 533 5
Slide 13: By Market
Supplementary Material on Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2020 By Market Copyright © 2019 Digital Arts Inc.
Slide 14: Summary of Net Sales by Market
Summary of Net Sales by Market Consolidated net sales increased +2.6%. In the enterprise sector market, net sales achieved an increase of +5.4%, reflecting strong sales of i-FILTER Browser & Cloud. In the public sector market, net sales were discouraging as a result of a decline of -6.3% due t
Slide 15: Trend in Net Sales by Market
Trend in Net Sales by Market Sales to the enterprise sector and consumer sector markets (In millions of yen) remained solid. 1,249 There are expectations of a recovery in sales to the public sector 1,217 market in the second quarter, in which orders increase notably. 1,158 (103%) (105%) (126%) 140 E
Slide 16: Quarterly Trend in Net Sales by Market
Quarterly Trend in Net Sales by Market Secured an increase in sales on the back of strong performances recorded in businesses for the enterprise sector and consumer sector markets. (In millions of yen) Enterprise Sector Public Sector Consumer Sector 1,674 1,565 1,546 (107%) 1,503 1,540 (102%) (118%)
Slide 17: Enterprise Sector
Supplementary Material on Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2020 Enterprise Sector Copyright © 2019 Digital Arts Inc.
Slide 18: Review of Enterprise Sector Market
Review of Enterprise Sector Market Sales of our mainstay i-FILTER and FinalCode products remained steady as progress was made in winning projects, mainly for renewals of contracts that had remained outstanding in the previous consolidated fiscal year. Sales of i-FILTER Browser & Cloud, which ena
Slide 19: Public Sector
Supplementary Material on Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2020 Public Sector Copyright © 2019 Digital Arts Inc.
Slide 20: Public Sector
Public Sector Overall sales for the public sector market were lower than the level in the same period of the previous year due to the decrease of orders for projects with large monetary value that contributed to sales in the previous year. Because of the progress of ICT, changes are taking place
Slide 21: Consumer Sector
Supplementary Material on Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2020 Consumer Sector Copyright © 2019 Digital Arts Inc.
Slide 22: Consumer Sector
Consumer Sector Sales grew, mainly reflecting the progress in the introduction of filtering, as the number of young people who use smartphones continued to increase, and strong direct sales of multi-year package products and i-FILTER for Multiple Devices that can be used on more than one terminal
Slide 23: Full-Year Financial Forecast for the Fiscal Year Ending March 2020
Supplementary Material on Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2020 Full-Year Financial Forecast for the Fiscal Year Ending March 2020 Copyright © 2019 Digital Arts Inc.
Slide 24: Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2020
Full-Year financial Forecast for the Fiscal Year Ending March 2020 Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2020 Results for FY March 2019 Plan for FY March 2020 % Change Net sales ¥5,841 million ¥6,800 million 16.4 % Gross profit ¥4,781 million ¥5,450 million 14.0 % Sell
Slide 25: Non-Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2020
Full-Year financial Forecast for the Fiscal Year Ending March 2020 Non-Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2020 Results for FY March 2019 Plan for FY March 2020 % Change Net sales ¥5,752 million ¥6,600 million 14.7 % Gross profit ¥4,724 million ¥5,400 million 14.3 %
Slide 26: Return to Shareholders for Fiscal Year Ending March 31, 2020
Return to Shareholders for Fiscal Year Ending March 31, 2020 ■Dividends We are planning to pay dividends as follows to return a portion of our earnings to our shareholders. Target payout ratio for fiscal year ending March 31, 2020: 30.5 % (of consolidated net profit) Annual dividends of surplus fore
Slide 27: Notes on Descriptions
Notes on Descriptions Among the descriptions of plans, strategies and financial forecasts in this presentation material, those that are not historical facts are forward- looking statements. They reflect judgments made by the management of Digital Arts Inc. on the basis of information currently avail
Slide 28: For internet convenience, safety and security
- For internet convenience, safety and security - Copyright © 2015 Digital Arts Inc.