Cac Holdings Corporation · TSE:4725
Cac — H1 2023 Earnings Presentation
33 slides from Cac's earnings presentation, Aug 10, 2023
Slide 1: Briefing on Results for the 1st half FY2023
Briefing on Results for the 1st half FY2023 － January to June 2023 －
Slide 2: Agenda
Agenda 1. Overview of Financial Results for the 1st half FY2023 2. Consolidated Forecasts for FY2023 3. Status of Medium-Term Strategy 4. Reference
Slide 3: Overview of Financial Results for the 1st half FY2023
1 Overview of Financial Results for the 1st half FY2023 TOPICS Overview of Consolidated Results Overview by Segment: Domestic IT Overview by Segment: Overseas IT SG&A (Selling, General and Administrative) Expense Analysis Net Sales ／ Segment Income Orders Received ／ Order Backlog
Slide 4: Topics
TOPICS ✔ During the first half of FY2023, net sales increased year-on-year, while operating profit decreased due to investment in human capital, new business development, and restructuring costs. ☞p.5 ✔ Since business performance has been generally strong, our earnings forecast for the full year has
Slide 5: Overview of Consolidated Results
Overview of Consolidated Results YoY change FY2023 1st half 1st half FY2022 FY2023 Amount % Forecast & （JPY mil） ▍Overview of profit and loss Net sales 23,418 24,052 +634 +2.7% 50,000 48.1% ⚫ Net sales increased due to factors Gross profit 5,757 6,038 +280 +4.9% - - such as the growth of overseas su
Slide 6: Overview by Segment: Domestic IT
Overview by Segment : Domestic IT 1st half 1st half YoY change （JPY mil） FY2022 FY2023 ▍Summary Orders received 21,121 20,115 (1,006) (4.8)% ⚫ While overall performance was strong, orders received, net sales, and order backlogs decreased due to the effects of deconsolidation. ⚫ Segment profits decre
Slide 7: Overview by Segment: Overseas IT
Overview by Segment : Overseas IT 1st half 1st half YoY change （JPY mil） FY2022 FY2023 ▍Summary Orders received 7,324 11,381 +4,057 +55.4% ⚫ Both orders received and order backlogs have increased significantly, due to an upcoming large-scale project for a financial institution at 5,402 6,118 +715 +1
Slide 8: SG&A expense analysis
SG&A (selling, general and administrative) expense analysis ◼ SG&A expenses increased by approximately 500 million yen year-on-year. In addition to investment in human capital and new business development, the main reason for the increase was the posting of restructuring costs. (JPY 100 mil) human N
Slide 9: Net Sales / Segment Income
Net Sales / Segment Income ▍Net sales Please refer to the segment overview for details. 1st half FY2022 1st half FY2023 YoY change （JPY mil） Amount % Amount % Amount % Domestic IT 18,015 76.9% 17,933 74.6% (81) (0.5)% Overseas IT 5,402 23.1% 6,118 25.4% +715 +13.2% Total 23,418 100.0% 24,052 100.0%
Slide 10: Orders Received / Order Backlog
Orders Received / Order Backlog ▍Orders received Please refer to the segment overview for details. 1st half FY2022 1st half FY2023 YoY change （JPY mil） Amount % Amount % Amount % Domestic IT 21,121 74.3% 20,115 63.9% (1,006) (4.8)% Overseas IT 7,324 25.7% 11,381 36.1% +4,057 +55.4% Total 28,446 100.
Slide 11: Forecasts for FY2023
２ Forecasts for FY2023 Consolidated Forecasts for FY2023
Slide 12: Consolidated Forecasts for FY2023
Consolidated Forecasts for FY2023 ◼ Financial forecasts are unchanged, since business performance has been generally strong. ◼ The dividend forecast also remain unchanged. (Interim: 40 yen) FY2023 FY2022 （JPY mil） 1st half result Forecasts % Result Net sales 24,052 50,000 48.1% 47,971 Operating prof
Slide 13: Status of the Medium-Term Strategy
３ Status of the Medium-Term Strategy Product & Services (P&S) business trends Launch of new businesses, M&A Sustainability management—human resources initiatives Efforts toward achieving high profitability Status of investments for growth Issues and initiatives to achieve the Medium-Term Management
Slide 14: Product & Services (P&S) Business Trends
Product & Services (P&S) Business Trends ◼ Conversion (development) from the existing contracting business to product & service business has progressed, now accounting for around 10% of net sales. ◼ Product and service business net sales in FY2023 are expected to be around 4.6 billion yen. ◼ As of t
Slide 15: Launch of New Businesses, M&A
Launch of New Businesses, M&A ▍Acquisition of cloud ECG analysis service company as a subsidiary ⚫ The cloud ECG analysis service provider M.Heart Co. Ltd. has now ⚫ We are developing an analysis service together with a pharmaceutical become a consolidated subsidiary of CAC Holdings Corporation. com
Slide 16: Launch of New Businesses, M&A
Launch of New Businesses, M&A ▍Acquisition of voice emotion recognition AI business ⚫ CAC Holdings has acquired a Japanese-created voice emotion analysis AI business from Empath (now Poetics Inc.) that infers a person's emotional state from speech in real time. ⚫ We have also launched Beluga Box Saa
Slide 17: Sustainability Management—Human Resources Initiatives
Sustainability Management—Human Resources Initiatives ▍Strengthening recruitment ▍Human resources development ⚫ We aim to increase numbers of recruits to expand our business ⚫ We have launched a next-generation leader development scale and acquire new technological strengths. Numbers have program an
Slide 18: Sustainability Management—Human Resources Initiatives
Sustainability Management—Human Resources Initiatives ▍Initiatives for creating a comfortable ▍Initiatives to boost employee motivation and morale working environment In February 2023, CAC resolved to introduce a performance -linked, To enable each and every one of our diverse employees to stock-bas
Slide 19: Initiatives for Profitability
Initiatives for Profitability Reorganization of Improvement of Profit margin unprofitable business management efficiency improvement ⚫ A project for restructuring our Indian ⚫ We are reducing head office floor ⚫ We are in the progress of building subsidiary is in progress, including space area (refl
Slide 20: Status of Investments for Growth
Status of Investments for Growth ◼ Approximately 1.5 billion yen was spent from 2022 through the first half of 2023. At the moment, all spending is within the asset portfolio. ◼ Company measures (recruitment and business development, etc.) were generally implemented as planned. Investment Investment
Slide 21: Issues and Initiatives to Achieve the Medium-Term Strategy
Issues and Initiatives to Achieve the Medium-Term Strategy Forecast for FY2025 Net Sales Initiatives for Growth
Slide 22: Forecast for FY2025 Net Sales
Forecast for FY2025 Net Sales ◼ In order to achieve the targets for Medium-Term Management Plan FY2025, it is essential to first expand our top line. ■ Net sales of P&S除く売上高 Net sales of P&S売上高 non-products & products & services services 580 506 485 479 479 500 Shortfall 13 46 506 485 479 466 454 19
Slide 23: Initiatives for Growth
Initiatives for Growth ◼ We will achieve internal growth by actively recruiting human resources, expanding services, and restructuring, while expanding through the use of external resources. Domestic business initiatives Overseas business initiatives ⚫ Expansion of human resources ⚫ Review of busine
Slide 24: Reference Materials
４ Reference Materials Orders Received by Industry Net Sales by Industry Orders Received by Segment and Industry Net Sales by Segment and Industry Major News for the First Half of 2023
Slide 25: Orders Received by Industry
Orders Received by Industry 1st half FY2022 1st half FY2023 YoY change （JPY mil） Amount % Amount % Amount % Financials 8,202 28.8% 11,903 37.8% +3,700 +45.1% Pharmaceuticals 6,016 21.2% 5,661 18.0% (355) (5.9)% Manufacturing 4,635 16.3% 3,917 12.4% (718) (15.5)% Information & Communication 3,728 13.
Slide 26: Net Sales by Industry
Net Sales by Industry 1st half FY2022 1st half FY2023 YoY change （JPY mil） Amount % Amount % Amount % Financials 7,398 31.6% 7,894 32.8% +495 +6.7% Pharmaceuticals 4,002 17.1% 4,125 17.2% +123 +3.1% Manufacturing 3,759 16.1% 3,599 15.0% (160) (4.3)% Information & Communication 3,556 15.2% 3,586 14.9
Slide 27: Orders Received by Segment & Industry
Orders Received by Segment & Industry 1st half FY2022 1st half FY2023 YoY change （JPY mil） Amount % Amount % Amount % Domestic IT 21,121 74.3% 20,115 63.9% (1,006) (4.8)% Financials 5,853 20.6% 5,552 17.6% (301) (5.2)% Pharmaceuticals 5,542 19.5% 5,185 16.5% (357) (6.4)% Manufacturing 3,841 13.5% 3,
Slide 28: Net Sales by Segment & Industry
Net Sales by Segment & Industry 1st half FY2022 1st half FY2023 YoY change （JPY mil） Amount % Amount % Amount % Domestic IT 18,015 76.9% 17,933 74.6% (81) (0.5)% Financials 5,594 23.9% 5,574 23.2% (19) (0.3)% Pharmaceuticals 3,666 15.6% 3,828 15.9% +162 +4.4% Manufacturing 3,131 13.4% 2,855 11.9% (2
Slide 29: Major News for the First Half of 2023 (1/4)
Major News for the First Half of 2023 (1/4) CAC Holdings Boccia Athlete Shun Sato Wins Third Place at the 24th Japan Boccia Championships Shun Sato, a boccia athlete from CAC Holdings, won third place in the BC2 Class Men's category at the 24th Japan Boccia Championships. January 26, The tournament
Slide 30: Major News for the First Half of 2023 (2/4)
Major News for the First Half of 2023 (2/4) CAC Invests in Shine Co., Ltd., a Data Conversion Service for Paper Forms Utilizing AI Image Recognition Technology to Contribute to the Operational Efficiency of Small and Medium- March 27, Sized Enterprises 2023 CAC has invested in Shine Co., Ltd., a joi
Slide 31: Major News for the First Half of 2023 (3/4)
Major News for the First Half of 2023 (3/4) CAC Acquires Speech Analysis AI Business from Empath, Inc. CAC has signed a business acquisition agreement with Empath (now Poetics, Inc.) to acquire Empath's speech analysis AI business. April 13, Under our Medium-Term Management Plan, we are working to a
Slide 32: Major News for the First Half of 2023 (4/4)
Major News for the First Half of 2023 (4/4) CAC Launches GxP-Compatible Service for the Creation and Operation of Cloud Archive Environments for the Pharmaceutical Industry Supporting the Creation and Operation of Data Storage Environments in Compliance with Regulations and May 23, Meeting Data Inte
Slide 33: Enterprise Value Up Group, Corporate Planning Division
Enterprise Value Up Group, Corporate Planning Division Tel: 03-6667-8010 E-mail: prir@cac.co.jp https://www.cac-holdings.com/