Slide 1: FY 12/3 First Half Results Presentation
FY 12/3 First Half Results Presentation November 9, 2011 DTS Corporation http://www.dts.co.jp/ 0
Slide 2: Contents
Contents I FY 12/3 First Half Results II Progress of Key Initiatives III FY 12/3 Full Year Forecast Caution Sales and income forecasts included in this document are based on assumptions made on the basis of information currently available, including business trends, economic circumstances, clients’
Slide 3: I. FY 12/3 First Half Results
I. FY 12/3 First Half Results 2
Slide 4: FY12/3 First Half Results (Non-Consolidated)
FY12/3 First Half Results (Non-Consolidated) (Units: Million yen, %) Ratio to Amount YoY vs. initial forecasts sales (%) Net sales 16,848 ― 95.7% -766 98.5% -251 Gross profit 2,641 15.7% 114.8% +340 112.4% +291 SG&A expenses 1,547 9.2% 99.8% -3 96.7% -52 Operating income 1,094 6.5% 145.9% +344 145.9
Slide 5: Sales by Service (Non-Consolidated, 1H FY12/3)
Sales by Service (Non-Consolidated, 1H FY12/3) Sales in the systems segment declined in reaction to the impact of the large projects in the financial sector during the same period of the previous fiscal year. On the other hand, small and midsize development projects increased significantly. Million
Slide 6: Sales by End User (Non-consolidated, 1H FY12/3)
Sales by End User (Non-consolidated, 1H FY12/3) Large development projects in the financial sector were off season, but sales in services and the manufacturing industry increased. Million yen First half of year ended March 2011 8,000 First half of year ending March 2012 (current fiscal year) Finance
Slide 7: Gross Profit (Non-consolidated, 1H FY12/3)
Gross Profit (Non-consolidated, 1H FY12/3) The gross margin improved for the following reasons: (1) decrease in less profitable projects, (2) improvement in low return business and (3) a rise in the labor utilization ratio +2.6 pts 0.7% 0.3% 4) Improvement in cost 0.6% 3) Rise in the labor reduction
Slide 8: Operating Income and Recurring Income (Non-consolidated, 1H FY12/3)
Operating Income and Recurring Income (Non-consolidated, 1H FY12/3) Strategic investment outlays were conducted in line with the medium-term plan. SG&A expense declined as a result of the continued cost cutting initiatives. SG&A expenses: ¥1,547 million (99.8% YoY; 9.2% of sales (+0.4 pts YoY)) Rise
Slide 9: FY12/3 First Half Results (Consolidated)
FY12/3 First Half Results (Consolidated) Sales declined as a result of (1) a decrease in non-consolidated sales and (2) a decline in merchandising in certain subsidiaries due to the impact of the Great East Japan Earthquake. (Profit results are described later.) (Units: Million yen, %) Ratio to Amou
Slide 10: Gross Profit (Consolidated, 1H FY12/3)
Gross Profit (Consolidated, 1H FY12/3) Gross profit grew strongly on a non-consolidated basis, while on a consolidated basis certain subsidiaries had a number of relatively unprofitable projects. 45.0 4500 (Consolidated) +¥30 million 38.8億 ¥3,880 million 39.1億 ¥3,910 million 40.0 4000 3500 35.0 (Con
Slide 11: Group Company Results (1H FY12/3)
Group Company Results (1H FY12/3) (Units: Million yen, %) Net sales Operating income vs. initial Ratio to vs. initial Company name Amount YoY (%) Amount YoY (%) plan sales (%) plan DATALINKS CORPORATION 4,037 97.8% 102.3% 94 2.3% 100.0% 106.7% DIGITAL TECHNOLOGIES CORPORATION 3,002 90.2% 88.7% 41 1.
Slide 12: Orders Received and Order Backlog (Consolidated, 1H FY12/3)
Orders Received and Order Backlog (Consolidated, 1H FY12/3) Orders received in the second quarter (July - September) recovered strongly. Growth in the order backlog turned positive year on year. 30.0% Orders (year on year) 26.5% Backlog (year on year) 20.0% 14.5% Orders received (up 14.5% year on ye
Slide 13: II. Progress of Key Initiatives
II. Progress of Key Initiatives 12
Slide 14: Key Initiatives
Key Initiatives 1. Strengthening the Sales Force and Customer Satisfaction 2. Enhancement of SI Capabilities 3. Strengthening New Businesses and Global Development 4. Establishing the Business Foundations 5. Strengthening Collective Strength of the Group 13
Slide 15: Key Initiatives (1): Strengthening the Sales Force
Key Initiatives (1): Strengthening the Sales Force A sales control division was set up to promote visualization of the First half sales process and standardization. - Action plan was prepared for the purpose of Intensification of intensifying relations mainly with major existing relations with exist
Slide 16: Key Initiatives (2): Enhancement of SI Capabilities
Key Initiatives (2): Enhancement of SI Capabilities - Bolstered project management First half - KPI was introduced (for clarification of targets) - Unprofitable (loss making) projects and projects with low Tightening of cost profits were reduced significantly. control - Cost control was tightened th
Slide 17: Key Initiatives (3): Strengthening New Businesses and Global Development (1)
Key Initiatives (3): Strengthening New Businesses and Global Development (1) New businesses were created through the active use of alliances, First half led by the New Market Development Headquarters [Solutions] - BI tool: OBIC BUSINESS CONSULTANTS CO., LTD. “DaTaStudio Finder” Hitachi, Ltd. “BI Nav
Slide 18: Key Initiatives (3): Strengthening New Businesses and Global Development (2)
Key Initiatives (3): Strengthening New Businesses and Global Development (2) A new globalization promotion division was set up to strengthen First half efforts for global development. - United States: A local affiliate was incorporated (November 2011) Capture demand from Japanese affiliated financ
Slide 19: Key Initiatives (4): Establishing the Business Foundations
Key Initiatives (4): Establishing the Business Foundations Personnel program reforms and the establishment of in-house First half systems for the next business year were promoted. - The number of personnel who had acquired external qualifications increased. Human resource Ratio of external qualifi
Slide 20: Key Initiatives (5): Strengthening the Collective Strength of the Group
Key Initiatives (5): Strengthening the Collective Strength of the Group First half Expanded joint order acceptance using each company’s strength - Development projects for life and non-life insurance companies (DTS + DL + FAITEC + JSE) - Smartphone projects (DL + JSE) Joint order - Near shore projec
Slide 21: III. FY 12/3 Full Year Forecast
III. FY 12/3 Full Year Forecast 20
Slide 22: Outlook for Business Environment
Outlook for Business Environment Market Sector Topic trend - In integration-related projects (trust companies, life and non-life insurance companies), development will gather momentum. Finance - In projects involving overseas transaction and settlement, projects are expected to take specific forms.
Slide 23: Non-Consolidated and Consolidated Performance Forecasts for the Fiscal Year Ending March 2012
Non-Consolidated and Consolidated Performance Forecasts for the Fiscal Year Ending March 2012 Press forward to achieving initial forecasts Non-consolidated Consolidated (Units: Million yen, %) Ratio to Ratio to Amount sales (%) YoY Amount sales (%) YoY Net sales 36,200 ― 102.2% +793 60,500 ― 103.4%
Slide 24: Full Year Forecasts for Group Companies for Fiscal Year Ending March 2012
Full Year Forecasts for Group Companies for Fiscal Year Ending March 2012 (Units: Million yen, %) Net sales Operating income Ratio to Company name Amount YoY Amount sales (%) YoY DATALINKS CORPORATION 8,160 100.1% 250 3.1% 106.9% DIGITAL TECHNOLOGIES CORPORATION 6,383 101.7% 142 2.2% 660.1% FAITEC C
Slide 25: Dividend
Dividend A円dividend payment of ¥15 per share will be made as initially planned for the first half. We forecast a dividend payment of ¥30 per share and dividend payout ratio of 44.6% for the full year. End of Payout ratio Year end Full year second half (consolidated) FY 11/3 ¥15 ¥20 ¥35 74.0% (Foreca