Tsuzuki Denki Co., Ltd. · TSE:8157
Tsuzuki Denki — 1H FY03/25 Earnings Presentation
19 slides from Tsuzuki Denki's earnings presentation, Nov 19, 2024
Slide 1: Financial Results for the First Half of the Fiscal Year Ending March 31, 2025
Financial Results for the First Half of the Fiscal Year Ending March 31, 2025 November 19, 2024 Tsuzuki Denki Co., Ltd. Copyright © 2024 Tsuzuki Denki Co., Ltd.
Slide 2: Table of Contents
1 Financial Results for 1H FY03/25 Table of Contents 2 Progress of the Medium-Term Management Plan, Transformation 2026 1 Copyright © 2024 Tsuzuki Denki Co., Ltd.
Slide 3: Highlights
Highlights ■Decline from 1H FY03/24 due to the concentration of management resources in the Information Network Solutions business and the absence of the large-scale, one-time demand observed during the same period in the previous fiscal year. Meanwhile, progress is steady in the six growth areas, i
Slide 4: Information Network Business: 1H Results for the Past Five Fiscal Years
Information Network Business: 1H Results for the Past Five Fiscal Years FY03/25 ■Net sales: Remained consistent when excluding the impact of large-scale, one-time demand projects in FY03/21 and FY03/24 ■Operating income: Profitability improved by focusing on pricing management Net sales Operating in
Slide 5: Information Network Business: Factors affecting operating income
Information Network Business: Factors affecting operating income ■ Negative Sales decline impact (-JPY841mn) : Decline in the system equipment business (a reactionary decrease from special demand in FY03/24) Increase in SG&A expenses (-JPY36mn) : Increased growth investments in improving employee tr
Slide 6: Results by Business Model (Information Network Solutions)
Results by Business Model (Information Network Solutions) ■Equipment ： Orders were up YoY due to the growth of mobile work systems, but sales declined due to the absence of large-scale, one-time demand projects ■Development & Construction ： Orders increased due to steady PBX installation projects fo
Slide 7: FY03/25 Consolidated Earnings Forecast
FY03/25 Consolidated Earnings Forecast ■1H results generally in line with initial plan. Expect to achieve record-high profit in Information Network business through the following initiatives: · Sales acquisition through leveraging opportunities from intensified EOS-related deals* * Mobile work due t
Slide 8: Shareholder Return
Shareholder Return Achieved a major dividend increase Dividend yield Dividend policy: Target dividend payout ratio of 40%, with a Year-end share price minimum DOE of 3.5% (Profit attributable to owners of parent used for dividend calculation JPY1,100 JPY1,657 JPY1,480 JPY1,563 JPY2,336 is based on p
Slide 9: Table of Contents
1 Financial Results for 1H FY03/25 Table of Contents 2 Progress of the Medium-Term Management Plan, Transformation 2026 8 Copyright © 2024 Tsuzuki Denki Co., Ltd.
Slide 10: Positioning of the Medium-term Management Plan
Positioning of the Medium-term Management Plan First stage: Shift resources and put growing businesses on track to achieve our long-term vision 1st Stage 2nd Stage 3rd Stage 100th Anniversary Growth Navigator Operating income: JPY10.0bn Shift resources Scale growth areas Make growth areas into to gr
Slide 11: Overview of the Medium-term Management Plan Transformation 2026
Overview of the Medium-term Management Plan Transformation 2026 ～ Shift resources to growth areas FY03/23 FY03/26 targets results 1. Business Expand growth areas (vs. FY03/23) strategies Increase profitability of existing businesses Restructure business portfolio and Group companies Net sales Net sa
Slide 12: Summary of Progress of the Medium-Term Management Plan
Summary of Progress of the Medium-Term Management Plan Steady progress in shifting resources to growth areas Steady progress in shifting to growth areas and improving profitability ·Six growth areas: Enhance functions, accelerate collaboration with partners Sales expansion (107% YoY) 1. Business ·Ex
Slide 13: Progress of Business Strategy: (1) Expand the six growth areas
Progress of Business Strategy: (1) Expand the six growth areas Steady growth driven by security and managed services, contributing to improved profitability Net sales Area YoY Progress in 1H FY03/25 (1H） · AVAYA CTI: Newly introduced to a major mail-order company Contact Center System 2.4 billion ye
Slide 14: Progress of Business Strategy: (2) Improve profitability in existing areas
Progress of Business Strategy: (2) Improve profitability in existing areas The activities carried out since FY03/24 have permeated the entire Company and are producing results. Measure Progress in 1H FY03/25 1. Further improve profitability and productivity · Increase sales and improve gross margin
Slide 15: Progress of Business Strategy: (3) Medium- to long-term growth strategy
Progress of Business Strategy: (3) Medium- to long-term growth strategy (M&A/Business tie-ups) For existing, growth, and new areas, identified specific capabilities to be acquired and evaluated targeted measures for each. In October 2024, entered into a business alliance with Daiwabo Information Sys
Slide 16: Overview of the Business Alliance With Daiwabo Information System (DIS)
Overview of the Business Alliance With Daiwabo Information System (DIS) Through our partnership with DIS, which aims to shift to a cloud-centric business model, we aim to establish a presence in the cloud market Purpose of business alliance Expand the cloud services Ability to procure a wide Proven
Slide 17: In Conclusion
In Conclusion We will pursue growth in sales and profits by transforming our business model We will strive to improve return on capital through strategic capital control We will continue to invest in our people, the source of our growth, and enhance our human capital We will strive to further enhanc
Slide 18: Contact
Contact Tsuzuki Denki Co., Ltd. Contact Management Planning 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/english/ Disclaimer The forward-looking statements, including earnings forec
Slide 19: Bring to society "yohaku"
Bring to society “yohaku” filled with possibilities, through people, insight, and technology, together.