Densan System Holdings Co. Ltd. · TSE:4072
Densan System — FY2021 Earnings Presentation
27 slides from Densan System's earnings presentation, 2022
Slide 1: Presentation Materials for the FY2021 Results Briefing
Densan System Holdings Presentation Materials for the FY2021 Results Briefing Tokyo Stock Exchange, First Section Nagoya Stock Exchange, First Section Securities Code: 4072 Forward-looking statements contained in this document are based on current estimates and projections and include potential risk
Slide 2: Table of Contents
Table of Contents • New Structure P3 • FY2021 Business Results Highlights P4 • FY2021 Transition in Quarterly Business Results P6 • FY2021 By Segment P6 • FY2021 Information Services Summary P8 • FY2021 Information Services in Detail P9 • FY2021 Payment Agency Services Summary P11 • FY2021 Payment A
Slide 3: New Structure: Holding Company and Prime Market Transition
July 2021: Establishment of Densan System Holdings Co., Ltd. and transition to a holding company structure April 2022: Transition to TSE "Prime Market" Amid significant changes in the business environment, we recognize that the Group working as one to swiftly and efficiently manage business is an im
Slide 4: Business Results Highlights
FY2021 Business Results Highlights Y-o-y change in parentheses Net sales Operating income Net income attributable to shareholders of the parent company ¥50,335 million ¥3,139 million ¥1,978 million (10.1% up) (10.7% up) (3.3% up) Business results Sales and income were higher YoY Sales surpassed
Slide 5: FY2021 Business Results Highlights
FY2021 Business Results Highlights (Unit: Million yen) The sales target of ¥52 billion could not be reached. The operating income ratio was at the same level as the previous fiscal year at 6.2%. Personnel expenses rose but the income ratio did not fall. People are required to achieve our lon
Slide 6: Transition in Quarterly Business Results
FY2021 Transition in Quarterly Business Results (Unit: Million yen) Significant increases in sales and income stood out in 4Q. In particular, 4Q income doubled compared to 4Q of the previous fiscal year and approached the level of 1Q of the previous fiscal year. Net sales Operating income 1,113
Slide 7: FY2021 By Segment
FY2021 By Segment (Unit: Million yen) Sales and income grew year on year in each segment. In particular, operating income in Information Services until 3Q was less than the previous fiscal year, but this turned around and income significantly grew in 4Q. Net sales Operating income 3,200 50,000 3
Slide 8: Information Services Summary
FY2021 Information Services Summary (Unit: Million yen) In SI and software development, although auto auction business systems decreased year on year, Chromebook and Google Workspace increased significantly. In information processing, invoice preparation services increased. In operating income
Slide 9: Information Services in Detail: Google business
FY2021 Information Services in Detail (Unit: Million yen) Google business Google Workspace grew steadily as Number of Google (Google Workspace) implementations usual, but cancellations of small accounts Cloud-related net sales continued in 4Q due to the impact of the 2,019 price hike. 1,725 1,931
Slide 10: Information Services in Detail: BPO business
FY2021 Information Services in Detail (Unit: Million yen) BPO business The BPO business was affected by Number of items processed Net sales COVID-19, but finally recovered to the [Thousands] 2019 level. 94,201 Invoice preparation services contributed significantly to growth and accounted for 81,
Slide 11: Payment Agency Services Summary
FY2021 Payment Agency Services Summary (Unit: Million yen) Stay-at-home consumption had an impact, and mainstay payment slip settlement services grew. In paperless payment services, although ticket payments rebounded, there was an increase in payment slip settlement services due to more focus be
Slide 12: Payment Agency Services in Detail: Payment service business
FY2021 Payment Agency Services in Detail (Unit: Million yen) Payment service business The number of items processed steadily Number of items processed Net sales increased, and reached 240 million. [Thousands] Due to the increase in the number of 243,452 items processed, a new EC infrastructure 2
Slide 13: Payment Agency Services in Detail: Payment innovation business
FY2021 Payment Agency Services in Detail Payment innovation business Counter payment collection services: Number of items processed 4,050 adopter stores 500 [Thousands] International remittances 458 International remittances WillCall: 136 450 Domestic remittances adopter stores 401 400 382 371
Slide 14: Topics: Network security and IoT business expansion
FY2021 Topics [Challenge1000/New Business] Strengthening expansion of network security and IoT business July 30, 2021: Acquired 100% of the shares of a network technology company (Micro Research Ltd.) To become more reliable Densan System Holdings Group with the world's most advanced security techn
Slide 15: Topics: Joint venture with Juroku Financial Group
FY2021 Topics [Challenge1000/Business Processing Business and New Business] Joint venture with Juroku Financial Group, Inc. Digitalization and promotion of DX at local companies and government August 31, 2021: Concluded a basic agreement on consideration of a joint venture Spring 2022: Creation
Slide 16: Topics: New invoicing service
FY2021 Topics [Challenge1000/Business Processing Business] New invoicing service November 2021: Expanded invoice processing service and launched "DSK Multi-invoice Service" Current issues in customers' billing (responding to the requirements of billing issuers and recipients) Support for eligible
Slide 17: Topics: Initiatives to support DX promotion
FY2021 Topics [Challenge1000/New Business] Initiatives to support DX promotion in companies and local governments July 2021: Established the DX Business Headquarters in Densan System September 2021: Held Densan System DX Promotion Online Seminar (total support for customers' DX promotion) Develo
Slide 18: Long-Term Plan Challenge1000 (Dec. 2021 to Dec. 2027)
Long-Term Plan Challenge1000 (Dec. 2021 to Dec. 2027) 1,000 950 Taking on the challenge to become a company with ¥100 900 billion in net sales by 2027! 850 800 The coming of an era of great change that will radically transform business! Let's Net sales 750 (unit: ¥100 million) take on a bold challen
Slide 19: Long-Term Plan Challenge1000: Specific measures
Long-Term Plan Challenge1000 Taking on the challenge to become a company with ¥100 billion in net sales by 2027! Take into account elements of ESG and SDGs while aiming to become a company with ¥100 billion in net sales by 2027 Specific measures 1. The payment agency services that are DSK's mainst
Slide 20: Medium-Term Management Plan: Creation of clients
Medium-Term Management Plan (3-year Plan from Dec. 2022 to Dec. 2024) Toward the achievement of Challenge1000 "Move! Nothing will happen unless you move" Ultimate goal of a company = Creation of "clients" ● Information services ● Payment services Restructuring (strengthening of Restructuring and
Slide 21: Medium-Term Management Plan (3-year Plan)
Medium-Term Management Plan (3-year Plan from Dec. 2022 to Dec. 2024) (Unit: Million yen) The 3-year plan is transitory for aiming for ¥100 billion in 2027. Personnel expenses will increase, but productivity will be improved to increase the income ratio. There are plans for investment in payme
Slide 22: FY2022 Business Results Projections
FY2022 Business Results Projections (Unit: Million yen) 4.2% growth in operating income is lower than the growth of sales, but this is due to plans for investment for two consecutive years. Micro Research was included in the scope of consolidation from July 2021. Sales for the entire year are fo
Slide 23: FY2022 Information Services Results Projection
FY2022 Information Services Results Projection (Unit: Million yen) The "Accounting Standard for Revenue Recognition" was applied and sales and income will be less concentrated in 1Q as in the example of auto auctions due to the standard of progress. In SI and software development, software devel
Slide 24: FY2022 Payment Agency Services Results Projection
FY2022 Payment Agency Services Results Projection (Unit: Million yen) Payment slip settlement services will be steady due to an expected increase in DSK deferred payment processing and PAYSLE. There will be investment in the new infrastructure. Although investment will be made, there will only
Slide 25: Sustainability
Sustainability We will make innovations with sustainability. The relevant initiatives are as follows. They will continue to be actively addressed in future. 25
Slide 26: Sustainability Topics
Sustainability Topics Donated "Teburi Signage" non-contact interactive signage and a donation of ¥3 million to Gifu University Hospital. December 2021: Donated "Teburi Signage" touch panel digital signage enabling the display of content in connection with people's movements for the purpose of supp
Slide 27: Dividends
Dividends FY2021: ¥5 commemorative dividend for the transition to a holding company structure FY2022 forecast: Annual ordinary dividend of ¥35 per share (interim dividend of ¥17 and year-end dividend of ¥18) Commemorative dividend for the transition to a holding company structure ( 35 ) 35 ( 34
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