Tsuzuki Denki Co., Ltd. · TSE:8157

Tsuzuki Denki — 1H FY03/22 Earnings Presentation

27 slides from Tsuzuki Denki's earnings presentation, Nov 17, 2021

  1. Slide 1: Financial Results for the First Half of the Fiscal Year Ending March 31, 2022

    Tsuzuki Denki Co., Ltd Financial Results for the First Half of the Fiscal Year Ending March 31, 2022 November 17, 2021 Stock code: 8157 URL https://www.tsuzuki.co.jp Copyright © 2021 Tsuzuki Denki Co., Ltd.

  2. Slide 2: Agenda

    1H FY03/22 Medium-term FY03/22 Shareholder Results Progress Forecast Return Agenda 1 1H FY03/22 Results Progress of Medium-term 2 Management Plan 3 FY03/22 Forecast 4 Shareholder Return 1 Copyright © 2021 Tsuzuki Denki Co., Ltd.

  3. Slide 3: 1H FY03/22 Results

    1H FY03/22 Medium-term FY03/22 Shareholder Results Progress Forecast Return 1 1H FY03/22 Results 2 Copyright © 2021 Tsuzuki Denki Co., Ltd.

  4. Slide 4: Highlights

    1H FY03/22 Medium-term FY03/22 Shareholder Results Progress Forecast Return Highlights Net sales and profits rose thanks to steady growth in the service businesses Electronic Devices business also contributed on the back of a shortage in semiconductors Information Network Solutions (＋) Growth in ser

  5. Slide 5: Statement of Income

    1H FY03/22 Medium-term FY03/22 Shareholder Results Progress Forecast Return Statement of Income (Millions of yen) Change 1H FY03/21 1H FY03/22 Change (YoY) (amount) Net sales 53,006 53,100 94 +0.2% Gross profit 9,090 9,789 699 +7.7% (Cost ratio) (82.8%) (81.6%) (-1.2pt) － SG&A expenses 8,869 8,990 1

  6. Slide 6: Factors Affecting Sales

    1H FY03/22 Medium-term FY03/22 Shareholder Results Progress Forecast Return Factors Affecting Sales (Billions of yen) 3.2 32 2.1 53.0 53.1(前期比+1) (+0.1YoY) -4.5 -0.7 1H FY03/21 Growth of service Special Absence of Delivery delays 1H FY03/22 Sales businesses demand for major projects* caused by Sales

  7. Slide 7: Factors Affecting Operating Income

    1H FY03/22 Medium-term FY03/22 Shareholder Results Progress Forecast Return Factors Affecting Operating Income (Millions of yen) +360.9% YoY -56 -122 ＋577 Increase in gross profit: ＋699 1H FY03/21 Higher sales Improved Difference in Higher SG&A 1H FY03/22 Operating cost ratio allowances booked expen

  8. Slide 8: Results by Segment

    1H FY03/22 Medium-term FY03/22 Shareholder Results Progress Forecast Return Results by Segment (Millions of yen) Net sales Operating income 1H 1H Change Change 1H 1H Change Change FY03/21 FY03/22 (amount) (YoY) FY03/21 FY03/22 (amount) (YoY) Information Network 43,162 40,022 -3,140 92.7% 185 532 347

  9. Slide 9: Sales by Business Model

    1H FY03/22 Medium-term FY03/22 Shareholder Results Progress Forecast Return Sales by Business Model (Millions of yen) Ratios in parentheses 56,507 53,006 53,100 YoY Equipment 20,059 13,899 72.9% (35.5%) 19,073 (26.2%) (36.0%) Development 6,214 99.2% 7,524 (11.7%) & 6,266 Construction (13.3%) (11.8%)

  10. Slide 10: Orders and Backlogs by Business Model

    1H FY03/22 Medium-term FY03/22 Shareholder Results Progress Forecast Return Orders and Backlogs by Business Model (Millions of yen) Orders Order backlog 68,576 (+13.0% YoY) 64,145 60,677 Equipment 20,067 37,942 24,745 (+33.2% YoY) 23,975 8,435 32,593 Development 28,487 14,993 & 9,723 14,217 7,331 Co

  11. Slide 11: Progress of Medium-term Management Plan

    1H FY03/22 Medium-term FY03/22 Shareholder Results Progress Forecast Return 2 Progress of Medium-term Management Plan 10 Copyright © 2021 Tsuzuki Denki Co., Ltd.

  12. Slide 12: Overview of Medium-term Management Plan (FY03/21 to FY03/23)

    1H FY03/22 Medium-term FY03/22 Shareholder Results Progress Forecast Return Overview of Medium-term Management Plan (FY03/21 to FY03/23) Medium-term Management Plan "Innovation 2023” Help customers achieve digital transformation and boost competitiveness Create a prosperous Vision ＝ society Innovati

  13. Slide 13: Overview of key medium-term priorities

    1H FY03/22 Medium-term FY03/22 Shareholder Results Progress Forecast Return Overview of key medium-term priorities １．Reforming our business structure by expanding the service we offer Service sales composition rose and service lineup improvements progressed as planned Service sales composition 37.5％

  14. Slide 14: Announced TSF, a new service framework for DX

    1H FY03/22 Medium-term FY03/22 Shareholder Results Progress Forecast Return Announced TSF, a new service framework for DX ➢ Organized service framework to provide quick and reliable support for customer digital transformation (DX) efforts ➢ New services to be rolled out on TSF Covers all of the serv

  15. Slide 15: Launched DagreeX, a service that digitally transforms contract management

    1H FY03/22 Medium-term FY03/22 Shareholder Results Progress Forecast Return Launched DagreeX, a service that digitally transforms contract management ➢ Total document management service that goes beyond digital signatures and seals ➢ Captures the growing need for cloud storage of transaction-related

  16. Slide 16: Launched TCloud for Voice, a new service to support cloud shift of PBX

    1H FY03/22 Medium-term FY03/22 Shareholder Results Progress Forecast Return Launched TCloud for Voice, a new service to support the cloud shift of PBX ➢ Build an external/internal phone environment tailored to customer needs to support a "new normal” work style ➢ Enables high-quality low-cost servic

  17. Slide 17: Enhanced CT-e1/SaaS functions

    1H FY03/22 Medium-term FY03/22 Shareholder Results Progress Forecast Return Enhanced CT-e1/SaaS functions ➢ Released new version of CT-e1 with dramatically improved functionality ❶ Text-to-speech guidance creation function included as a standard feature (integrated with AITalk® system) ❷ Real-time s

  18. Slide 18: Strengthening IoT and operation service business through alliance with JIG-SAW

    1H FY03/22 Medium-term FY03/22 Shareholder Results Progress Forecast Return Strengthening IoT and operation service business through business alliance with JIG-SAW ➢ Aiming to explore new areas and create innovative services by leveraging each other's strengths IoT technology Data-driven business Da

  19. Slide 19: Collaboration with Tohto Suisan Co., Ltd. materialized

    1H FY03/22 Medium-term FY03/22 Shareholder Results Progress Forecast Return Lateral deployment of AI technology is helping to expand our customer base to other domains ➢ Collaboration with Tohto Suisan Co., Ltd. materialized Expanding business with new industries based on AI technology (D-VUE servic

  20. Slide 20: FY03/22 Forecast

    中計進捗 株主還元 1H FY03/22 Medium-term FY03/22 Shareholder Results Progress Forecast Return 3 FY03/22 Forecast 19 Copyright © 2021 Tsuzuki Denki Co., Ltd.

  21. Slide 21: FY03/22 Forecast

    1H FY03/22 Medium-term FY03/22 Shareholder Results Progress Forecast Return FY03/22 Forecast No change from the initial forecast due to lingering uncertainty over the impact of COVID-19 and semiconductor shortages, despite continued strong performance of service businesses (Millions of yen) FY03/22

  22. Slide 22: Shareholder Return

    1H FY03/22 Medium-term FY03/22 Shareholder Results Progress Forecast Return ４ Shareholder Return 21 Copyright © 2021 Tsuzuki Denki Co., Ltd.

  23. Slide 23: Shareholder Return

    1H FY03/22 Medium-term FY03/22 Shareholder Results Progress Forecast Return Shareholder Interim dividend: JPY23 Total annual dividend: JPY47 (expected dividend Return payout ratio of 30.6%) Dividend per share and payout ratio Dividend yield Year-end price IPO JPY1,100 Year-end 34.3% commemorative pr

  24. Slide 24: Press Releases

    Reference Press Releases No. Date Content 1 2021/11/11 Tsuzuki Denki and JIG-SAW conclude business alliance agreement 2 2021/11/09 Started providing storage function of electronic contract service DagreeX 3 2021/11/09 CT-e1/SaaS integrates with AITalk® to provide text to speech guidance creation fun

  25. Slide 25: Stock Price History (as of November 16, 2021)

    Reference Stock Price History (as of November 16, 2021) (Volume: Shares) (Stock price: Yen) 200,000 2,500 180,000 160,000 2,000 140,000 120,000 1,500 100,000 80,000 1,000 60,000 40,000 500 20,000 0 0 2021/4/1 2021/5/1 2021/6/1 2021/7/1 2021/8/1 2021/9/1 2021/10/1 2021/11/1 出来高(株) Volume (shares) 終値(

  26. Slide 26: Contact

    Contact Tsuzuki Denki Co., Ltd. Contact Corporate Planning Division, Management Strategy Office Address 6-19-15 Shinbashi, Minato-ku, Tokyo 105-8665, Japan (Tokyo Art Club Building) Phone: 050-3684-7780 ir-tantou@tsuzuki.co.jp https://www.tsuzuki.co.jp/ Disclaimer The forward-looking statements, inc

  27. Slide 27: Copyright © 2021 Tsuzuki Denki Co., Ltd.

    Copyright © 2021 Tsuzuki Denki Co., Ltd.

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