Cac Holdings Corporation · TSE:4725
Cac — FY2023 Earnings Presentation
40 slides from Cac's earnings presentation, Feb 13, 2024
Slide 1: Briefing on Results for FY2023
Briefing on Results for FY2023 －January to December 2023－
Slide 2: Agenda
Agenda 1. Overview of Financial Results for FY2023 2. Progress of Medium-Term Management Plan 3. Changes to KPIs under Medium-Term Management Plan and Forecasts and Measures for FY2024 4. Reference 5. Major News in Second Half of FY2023
Slide 3: Topics
TOPICS ✔ In FY2023, sales and profit both increased. While the domestic IT business posted declines in sales and profit mainly due to investment under the Medium-Term Management Plan, the overseas IT business reported gains in sales and profit largely owing to the strong performance of the subsidiar
Slide 4: Overview of Financial Results for FY2023
1 Overview of Financial Results for FY2023
Slide 5: Overview of Consolidated Results
Overview of Consolidated Results YoY Change YoY change ▍Overview of profit and loss FY2022 FY2023 (JPY mil) Amount % ⚫ In the domestic IT business, sales increased mainly due to a large-scale Net sales 47,971 50,539 +2,567 +5.4% project at the Indian subsidiary and the Gross profit 11,601 12,285 +68
Slide 6: SG&A Expense Analysis
SG&A (Selling, General and Administrative) Expense Analysis ◼ The Company aggressively made investments to establish the foundations for growth (investments in human capital and the development of new businesses, etc.) while at the same time thoroughly implementing cost-cutting measures. (JPY 100 mi
Slide 7: Comparison with Results Forecast and KPI Forecasts
Comparison with Results Forecast and KPI Forecasts Forecast at the beginning FY2023 Achievement ▍Comparison with results (JPY mil) of the current fiscal year Full-year results rate (%) forecast ⚫ Net sales, operating profit and profit all Net sales 50,000 50,539 101.1% reached the initially forecast
Slide 8: Net Sales / Segment Profit
Net Sales / Segment Profit ▍Net sales For details, please refer to Overview by Segment. FY2022 FY2023 YoY change (JPY mil) Amount % Amount % Amount % Domestic IT 36,406 75.9% 35,905 71.0% (501) (1.4)% Overseas IT 11,565 24.1% 14,633 29.0% +3,068 +26.5% Total 47,971 100.0% 50,539 100.0% +2,567 +5.4%
Slide 9: Orders Received / Order Backlog
Orders Received Order Backlog ▍Orders received For details, please refer to Overview by Segment. FY2022 FY2023 YoY change (JPY mil) Amount % Amount % Amount % Domestic IT 37,540 75.8% 37,532 68.7% (8) (0.0)% Overseas IT 11,971 24.2% 17,117 31.3% +5,146 +43.0% Total 49,512 100.0% 54,650 100.0% +5,137
Slide 10: Overview by Segment: Domestic IT
Overview by Segment: Domestic IT (JPY mil) FY2022 FY2023 YoY change ▍Summary Orders received 37,540 37,532 (8) (0.0)% ⚫ Orders received were mostly unchanged year on year due to growth in orders for the financial and service industries, despite the impact of deconsolidation. Net sales 36,406 35,905
Slide 11: Overview by Segment: Overseas IT
Overview by Segment: Overseas IT (JPY mil) FY2022 FY2023 YoY change ▍Summary Orders received 11,971 17,117 +5,146 +43.0% ⚫ Orders received rose sharply thanks to growth in orders for the information and communication industry in addition to a large- scale project for the financial industry at the In
Slide 12: Five-Year Trend in Net Sales by Segment
Five-Year Trend in Net Sales by Segment ◼ Net sales of the domestic IT and overseas IT businesses were strong. The compound average growth rate (CAGR)* during the five years from FY2019 to FY2023 was 5.8%. * Compound average growth rate (CAGR) calculated based on the ongoing operations of the domest
Slide 13: Five-Year Trend in Segment Profit
Five-Year Trend in Segment Profit ◼ Profit in the overseas IT business has increased steadily. ◼ Excluding the effect of deconsolidation, profit has remained firm. (JPY 100 mil) 国内IT IT Domestic 海外IT IT Overseas CRO 調整額 Adjustments 国内IT連結除外分 Domestic IT deconsolidated operations 9.2 10.8 14.2 5.7 7.
Slide 14: Progress of Medium-Term Management Plan
2 Progress of Medium-Term Management Plan
Slide 15: CAC Vision 2030
CAC Vision 2030 15 Copyright © CAC Holdings Corporation All Rights Reserved.
Slide 16: Position of Medium-Term Management Plan for Achieving the Vision and Net Sales Goal
Position of Medium-Term Management Plan for Achieving the Vision and Net Sales Goal Phase Current Medium-Term Management Plan Phase Next Medium-Term Management Plan (FY2026-FY2030) (FY2022-FY2025) 1 Establishment of products & services base 2 Realization of high growth (JPY 100 mil) Targets Goal Net
Slide 17: Outline of Medium-Term Management Plan (Phase 1: FY2022-FY2025)
Outline of Medium-Term Management Plan (Phase 1: FY2022 - FY2025) Period for earning stable revenue Phasein existing contracted business and for building framework for 1 (2022-2025) continuously producing new products & services in preparation for phase 2 [New business: Products and services] ・Build
Slide 18: Status of Investments for Growth
[FY2023 Initiatives] Status of Investments for Growth ◼ Approximately ¥2.5 billion was spent from FY2022 through FY2023. At the moment, all spending was within the asset portfolio. ◼ Company measures (recruitment and business development, etc.) were generally implemented as planned. Main investment
Slide 19: Growth strategy: Accelerate the products and services business
[FY2023 Initiatives] Growth strategy: Accelerate the products and services business and achieve the FY2025 sales target of ¥5.0 billion ahead of schedule ◼ In FY2023, the Company launched 6 new services, completed 2 M&A transactions, made 1 investment, and formed 1 business alliance. ◼ Steady progre
Slide 20: Growth strategy: Strengthen human resources in existing contracted business
[FY2023 Initiatives] Growth strategy: Strengthen human resources in existing contracted business ▍Strengthening recruitment ▍Promoting the development of human resources ⚫ Aim to increase numbers of recruits to expand business scale ⚫ Implemented initiatives including a next-generation leader and ac
Slide 21: Generate higher profit
[FY2023 Initiatives] Generate higher profit: progress was mostly according to plan Reorganization of Improvement of overseas subsidiaries management efficiency ⚫ Reorganization of unprofitable sites overseas ⚫ Costs will be reduced by ¥0.5 billion a year Profit will be improved by ¥0.2 billion from
Slide 22: Changes to KPIs under Medium-Term Management Plan and Forecasts and Measures for FY2024
3 Changes to KPIs under Medium-Term Management Plan and Forecasts and Measures for FY2024
Slide 23: Background to KPI Changes
Background to KPI Changes Focus on cash generation ⚫ To turn the P&S business into one of the pillars of the CAC Group by FY2030, the Company will build up the strength to be able to continue making bold investments under the next Medium-Term Management Plan ⚫ By FY2025, the Company aims to generate
Slide 24: Trend in Results FY2021-FY2025
Trend in Results FY2021-FY2025 (Results, Forecasts, Targets) ◼ The Company will continue implementing initiatives to ensure realization of CAC Vision 2030 despite the occurrence of costs not anticipated when the plan was formulated, such as delayed improvement in the profitability of new business (P
Slide 25: FY2024 Forecast
FY2024 Forecast ◼ In FY2024, the Company expects to maintain a solid performance despite continued investment to establish the foundations for growth, and forecasts year-on-year increases in sales and profit (the impact of M&A activities is not factored into the forecast) ◼ The dividend forecast is
Slide 26: FY2024 Forecast Net Sales and Profit by Segment
FY2024 Forecast Net Sales and Profit by Segment ▍Net sales FY2023 FY2024 Forecast YoY change (JPY mil) Amount % Amount % Amount % Domestic IT 35,905 71.0% 36,500 70.9% +595 +1.7% Overseas IT 14,633 29.0% 15,000 29.1% +367 +2.5% Total 50,539 100.0% 51,500 100.0% +464 +1.9% ▍Adjusted EBITDA FY2023 FY2
Slide 27: FY2024 Management Policy
FY2024 Management Policy ◼ Continue aggressively making investments while at the same time striving for improvement in the profitability of existing businesses, and focus on “building strength” and “building frameworks” as priority measures. ◼ Also prepare for the next Medium-Term Management Plan (F
Slide 28: Reference
4 Reference
Slide 29: Orders Received by Industry
Orders Received by Industry FY2022 FY2023 YoY change (JPY mil) Amount % Amount % Amount % Financial services 15,262 30.8% 19,928 36.5% +4,665 +30.6% Pharmaceuticals 8,777 17.7% 8,719 16.0% (57) (0.7)% Manufacturing 8,294 16.8% 7,694 14.1% (600) (7.2)% Information & communications 6,881 13.9% 7,998 1
Slide 30: Net Sales by Industry
Net Sales by Industry FY2022 FY2023 YoY change (JPY mil) Amount % Amount % Amount % Financial services 15,033 31.3% 18,382 36.4% +3,349 +22.3% Pharmaceuticals 8,135 17.0% 8,449 16.7% +314 +3.9% Manufacturing 7,693 16.0% 7,027 13.9% (665) (8.7)% Information & communications 7,528 15.7% 7,130 14.1% (3
Slide 31: Orders Received by Segment & Industry
Orders Received by Segment & Industry FY2022 FY2023 YoY change (JPY mil) Amount % Amount % Amount % Domestic IT 37,540 75.8% 37,532 68.7% (8) (0.0)% Financial services 11,462 23.2% 12,035 22.0% +573 +5.0% Pharmaceuticals 8,044 16.2% 8,061 14.8% +16 +0.2% Manufacturing 6,952 14.0% 6,158 11.3% (794) (
Slide 32: Net Sales by Segment & Industry
Net Sales by Segment & Industry FY2022 FY2023 YoY change (JPY mil) Amount % Amount % Amount % Domestic IT 36,406 75.9% 35,905 71.0% (501) (1.4)% Financial services 11,269 23.5% 11,496 22.7% +227 +2.0% Pharmaceuticals 7,468 15.6% 7,787 15.4% +319 +4.3% Manufacturing 6,385 13.3% 5,516 10.9% (869) (13.
Slide 33: Sustainability Management KPIs and Results
Sustainability Management KPIs and Results Material issue for Goal KPI 2022 Result 2023 Result 2030 Target continuous growth A work environment General with job satisfaction, 68.6pt In the top 20% across Engagement score in the employee engagement survey (The holding 69.2pt which is chosen by compan
Slide 34: Trends in Dividends and DOE
Trends in Dividends and DOE ◼ DOE is expected to remain at the 5% level until FY2025, which is the final fiscal year of the current Medium-Term Management Plan 90 6.0% 配当金（円） 4.7% 5.0% 80 Dividends (yen) DOE 4.6% 5.0% 70 4.0% 3.6% 3.4% 60 4.0% 3.3% 50 3.0% 40 80 80 30 60 60 60 2.0% 50 20 1.0% 10 0 0
Slide 35: Major News in Second Half of FY2023
5 Major News in Second Half of FY2023
Slide 36: Major News in Second Half of FY2023 (1/4)
Major News in Second Half of FY2023 (1/4) CAC launches Beluga Box SaaS, a cloud-based conversational / dialogue data analysis service utilizing emotion recognition AI Empath Enables analysis of dialogue data by emotion recognition AI under cheap PAYG plan of ¥0.2 per July 12, minute 2023 On July 11,
Slide 37: Major News in Second Half of FY2023 (2/4)
Major News in Second Half of FY2023 (2/4) Launch of second PoC for inter-physician online consultation system, for promotion of remote medical care through remote consultation conferencing (DtoDtoP) Joint initiative by CAC, Chiba University Hospital, and Mediaid July 26, 2023 CAC, Chiba University H
Slide 38: Major News in Second Half of FY2023 (3/4)
Major News in Second Half of FY2023 (3/4) CAC launches DeepEmo, a service utilizing the emotion recognition AI Empath to support the generation of facial expressions in 3D games Based on technology that contributed to a 95% reduction in man hours of facial expression animators October 10, 2023 On Oc
Slide 39: Major News in Second Half of FY2023 (4/4)
Major News in Second Half of FY2023 (4/4) The CAC Group certified as a Tokyo Sports Promotion Company for the eighth consecutive year CAC Holdings has been certified as a 2023 Tokyo Sports Promotion Company under the Tokyo Sports Promotion Company Certification System of December the Bureau of Citiz
Slide 40: Contact
Contact Corporate Communication Group, Corporate Planning Department Tel: 03-6667-8070 E-mail: prir@cac.co.jp https://www.cac-holdings.com/