Slide 1: Fiscal Year Ended March 31, 2022 Financial Results Briefing
Shift to the Smart SI TSE Prime Securities code: 4687 Fiscal Year Ended March 31, 2022 Financial Results Briefing May 24, 2022 TDC SOFT Inc. © 2022 TDC SOFT Inc. 1
Slide 2: Agenda
1 Overview of Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 ２ Status of Key Measures for the Fiscal Year Ended March 31, 2022 ３ New Medium-Term Management Plan “Shift to the Smart SI Plus” ４ Outlook for the Fiscal Year Ending March 31, 2023 Hiroyoshi Kobayashi, President an
Slide 3: Important Points in the Fiscal Year Ended March 31, 2022
Important Points in the Fiscal Year Ended March 31, 2022 Performance during the Fiscal Year Ended March 31, 2022 ● All business fields made solid progress reaching net sales of ¥30,925 million, a 13.3% increase year on year. ● Secured ¥2,967 million in operating profit, a 25.8% increase year on year
Slide 4: Overview of Consolidated Financial Results for the Fiscal Year Ended March 31, 2022
1 Overview of Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 © 2022 TDC SOFT Inc. 4
Slide 5: Overview of Consolidated Financial Results
Overview of Overview of Consolidated Financial Results for the １ Consolidated Financial Results Fiscal Year Ended March 31, 2022 FY Ended March FY Ended March (Millions of Yen) Profit Margin YOY 2022 2021 Net sales 30,925 - +13.3% 27,292 Gross profit 6,423 20.8% +19.0% 5,398 Operating profit 2,967 9
Slide 6: Highlights of Each Field
Overview of １ Financial Results Highlights of Each Field IT Consulting & Services +57.7% YOY Provides solution services to promote customers’ DX, including IT strategy 4,550 3,877 and systemization concept planning, technical consulting, educational 3,900 services, in-house cloud applications, BI/DW
Slide 7: Highlights of Each Field
Overview of １ Financial Results Highlights of Each Field IT Solutions for Public Corporations +10.7% YOY Provides integrated IT solutions for the distribution, manufacturing, service, 9,500 8,795 8,750 7,945 and public sectors, including systemization planning, design, development, 8,000 maintenance
Slide 8: Overview of Net Sales by Field
Overview of １ Financial Results Overview of Net Sales by Field FY Ended March 31, 2021 FY Ended March 31, 2022 ¥27,292 million ¥30,925 million 2,458 3,877 (9.0%) 3,858 (12.5%) 3,612 (13.2%) (12.5%) 7,945 8,795 (29.1%) (28.4%) 14,393 13,276 (46.6%) (48.7%) IT Consulting & Services IT Solutions for Fi
Slide 9: Status of Key Measures for the Fiscal Year Ended March 31, 2022
２ Status of Key Measures for the Fiscal Year Ended March 31, 2022 © 2022 TDC SOFT Inc. 9
Slide 10: Overview of the Next-Generation SI Business
Status of Key ２ Measures Create High-Value-Added SI Services Overview of the Next-Generation SI Business The next-generation SI business Changes in Next-Generation SI Business Sales is steadily growing. Ratio and Net Sales (millions of yen) 6,000 5,390 20% The business has grown to make up 17.4% of
Slide 11: TOPICS: Key Strategic Field – Agile Development Business
Status of Key ２ Measures Create High-Value-Added SI Services TOPICS: Key Strategic Field – Agile Development Business We continued to focus on agile development from the previous FY to enhance our services as it is essential to achieving DX. Number of Agile-Related Engineers We reached a basic agree
Slide 12: TOPICS: Key Strategic Field – Agile Development Business
Status of Key ２ Measures Create High-Value-Added SI Services TOPICS: Key Strategic Field – Agile Development Business Net sales in the agile development business have grown 5-fold over 4 years accompanying increased DX demand from customers Agile Development Business Sales Approx. 5x growth 1625 1,5
Slide 13: TOPICS: Key Strategic Field – Information System Security Business
Status of Key ２ Measures Create High-Value-Added SI Services TOPICS: Key Strategic Field – Information System Security Business We have strengthened our efforts to provide greater added value, including through the addition of new services. Expanded our security We have formed an alliance with Inter
Slide 14: Support SI Model Reforms
Status of Key ２ Measures Support SI Model Reforms Improvement of quality standards for our services We have worked to improve the quality standards of our services by encouraging the shared use of highly-skilled talent among other measures. Price control We have utilized a pricelist and promoted adm
Slide 15: Promote Proactive Forward-Looking Investment
Status of Key ２ Measures Promote Proactive Forward-Looking Investment Increased investment in Investment in branding and marketing technology ● We have invested in marketing to increase sales of Investment in elemental our in-house products technologies ● We have aggressively promoted investment int
Slide 16: New Medium-Term Management Plan “Shift to the Smart SI Plus”
３ New Medium-Term Management Plan “Shift to the Smart SI Plus” (FY2022~FY2024) © 2022 TDC SOFT Inc. 16
Slide 17: Medium-Term Management Policy
Medium-Term ３ Management Medium-Term Management Policy Plan Medium-Term Management Plan Medium-Term Management Plan Management Policy Management Objectives FY Ending March 2025 Performance Targets Consolidated Sales ¥40 billion The TDC SOFT Group will contribute to “Realizing a Smarter World (Societ
Slide 18: Key Strategies
Medium-Term ３ Management Key Strategies Plan We will expand our business into new domains based around our existing SI business and acquire the capabilities needed for new business models in an aim to become a new type of next-generation system integrator. Expand our business domain We will tap into
Slide 19: Key Strategy – Expand Our Business Domain
Medium-Term ３ Management Plan Key Strategy – Expand Our Business Domain Expand our next-generation SI business SI Business Increase our business volume through managed services in our SI business such as maintenance and upkeep We are aiming to accumulate knowledge and develop methodologies for o
Slide 20: Key Measures
Medium-Term ３ Management Plan Key Measures Promote aggressive recruitment Secure Human Promote human resource development (ability to hit the ground Resources running, focus on high-value-added areas) Promote Group/M&A strategies to acquire functions and Promote Group/ characteristics not poss
Slide 21: Increase investment for business expansion
Medium-Term ３ Management Plan Key Measures ●Increase investment for business expansion We are investing in the following 7 areas in FY2022. We are targeting further expansion in new businesses and high-value-added fields We aim to build out a managed services business that We will invest in technolo
Slide 22: Outlook for the Fiscal Year Ending March 31, 2023
４ Outlook for the Fiscal Year Ending March 31, 2023 © 2022 TDC SOFT Inc. 22
Slide 23: Outlook for the Fiscal Year Ending March 2023 (By Field)
03/2023 ４ Outlook Outlook for the Fiscal Year Ending March 31, 2023 (By Field) IT Consulting & Services +18.6% YOY 5,200 4,600 4,200 3,877 Demand for IT service management and cloud 3,200 2,458 managed service-related projects is expected to 2,200 continue and maintain a growth trajectory. 1,200 03/
Slide 24: Outlook for the Fiscal Year Ending March 2023 (By Field)
03/2023 ４ Outlook Outlook for the Fiscal Year Ending March 31, 2023 (By Field) IT Solutions for Public Corporations +8.6% YOY 10,000 9,550 Growth is expected in transportation and 9,000 8,795 7,945 manufacturing sectors. 8,000 7,000 Projects supporting customers’ IT planning 6,000 are expected to th
Slide 25: Financial Results and Dividend Forecast
03/2023 ４ Outlook Outlook for the Fiscal Year Ending March 31, 2023 Financial Results and Dividend Forecast Dividend (Millions of Operating Ordinary EPS Yen) Net Sales Net Income Forecast Profit Profit (Yen) (Yen) Q2 15,600 1,340 1,365 915 Interim (Cumulative) 37.95 15.00 (+6.4%) (-15.6%) (-17.1%) (
Slide 26: Details of Financial Results for the Fiscal Year Ended March 31, 2022
５ Details of Financial Results for the Fiscal Year Ended March 31, 2022 © 2022 TDC SOFT Inc. 26
Slide 27: Financial Statements, Net Sales Analysis, Orders Received/Backlog, Operating Profit Analysis
●Financial Statements ●Net Sales Analysis ●Orders Received/Backlog ●Operating Profit Analysis © 2022 TDC SOFT Inc. 27
Slide 28: Financial Statements: Statement of Income and Balance Sheet
５ Details of 03/2022 Financial Results Financial Statements Statement of Income Balance Sheet FY Ended FY Ended End of FY End of FY (Millions of Yen) Change (Millions of Yen) Ended March Ended Change March 2022 March 2021 2022 March 2021 Net sales 30,925 27,292 +13.3% Total assets 21,072 18,652 +13.
Slide 29: Financial Statements: Statement of Cash Flows
５ Details of 03/2022 Financial Results Financial Statements Balance of cash etc. at the 10,077 Statement of Cash Flows beginning of the period Profit before income taxes 3,082 Depreciation and amortization 83 2,174 (2) Notes and accounts receivable - trade (643) (547) Notes and accounts payable - 25
Slide 30: Overview of Sales by Customer Industry
５ Details of 03/2022 Financial Results Overview of Sales by Customer Industry (millions of yen) FY Ended March 2020 FY Ended March 2021 FY Ended March 2022 8,260 6,853 6,197 6,234 5,046 6,362 5,161 4,945 4,446 4,382 4,970 4,027 3,895 3,350 3,277 2,683 2,907 3,010 Banking Credit Insurance Manufacturi
Slide 31: Status of Orders Received/Backlog
５ Details of 03/2022 Financial Results Status of Orders Received/Backlog (millions of yen) 15,421 15,908 14,575 14,565 Orders received 13,796 13,415 7,430 7,793 7,472 6,551 6,650 7,067 Backlog of orders 6,380 6,500 Net sales 13,128 14,667 13,186 14,106 14,661 16,263 H1 H2 H1 H2 H1 H2 FY Ended March
Slide 32: Operating Profit Analysis
５ Details of 03/2022 Financial Results Operating Profit Analysis Gross SG&A (millions of yen) profit expenses +1,025 +417 2,967 2,358 <Gross Profit> + Profit grew due to an increase in sales + Profitability improved due to a greater proportion of sales from the next-generation SI business <SG&A Expe
Slide 33: Shift to the Smart SI
Shift to the Smart SI https://www.tdc.co.jp/ *Note on this document: The matters related to the forecasts of the TDC SOFT Group in this document have been determined based on currently available information and may change due to uncertain factors inherent in forecasts and/or changes in the situation