Suncorporation · TSE:6736
Suncorporation — FY2024 Earnings Presentation
39 slides from Suncorporation's earnings presentation, May 31, 2024
Slide 1: Financial Results and Medium-Term Management Plan Explanatory Material
May 31st, 2024 Year Ended March 31st, 2024 Securities code: 6736 Financial Results and Medium-Term Management Plan Explanatory Material
Slide 2: Table of Contents
Table of Contents SUNCORPORATION’s Business SUNCORPORATION’s Growth Strategy (Vision) Management Philosophy 04 SUNCORPORATION’s Approach to Business 20 Business Overview 05 Changes in Business Portfolio 21 History 06 SUNCORPORATION’s Global Business 07 SUNCORPORATION’s Growth Strategy Relationship w
Slide 3: SUNCORPORATION's Business
SUNCORPORATION’s Business ©SUNCORPORATION All rights reserved.
Slide 4: Management Philosophy
Management Philosophy Resolving social issues with MISSION SUNCORPORATION’s technologies MISSION Management Making people happy through telecommunication philosophy & entertainment Corporate philosophy “Maintaining the spirit of a company that takes on challenges” Materializing Company slogan Ch
Slide 5: Business Overview
Business Overview Developing the Business in Three Segments Revolving around Technology Global Data Intelligence Entertainment New IT-Related (digital intelligence) (amusement machines and games) (M2M/IoT) ● Developing and selling mobile forensic Amusement machines ● Developing, manufacturing, and s
Slide 6: History
History Domestic Business Growth along with Accelerated Global Expansion Since the Early 1990s 2020 Launch of AceReal for docomo, a remote operation support solution using 5G and AR SmartGlass 2010 Development and release of Rooster series mobile routers 2007 Full-scale entry into M2M Acquisition of
Slide 7: SUNCORPORATION's Global Business
SUNCORPORATION’s Global Business Growing through businesses that are not limited to specific areas by combining technologies and expertise developed in domestic businesses with new technologies and talent exchange acquired globally Domestic Globally Technologies Development of new Quality & safety W
Slide 8: Relationship with Cellebrite (Performance)
Relationship with Cellebrite (Performance) Profit or loss on valuation occurring due to the Cellebrite shares we own has an impact on SUNCORPORATION’s performance (ordinary profit, net income) Maintaining uniqueness with respect to various operations Broad sales network based on sales to domestic
Slide 9: Relationship with Cellebrite (Business)
Relationship with Cellebrite (Business) Driving domestic forensic products and digital intelligence market Supplying related products, training, and services Developing and selling our own related products, such as F-Note, for the Japanese market Providing original training for forensic product
Slide 10: Year Ended March 2024 Results / Year Ending March 2025 Forecast
Year Ended March 2024 Results/ Year Ending March 2025 Forecast ©SUNCORPORATION All rights reserved.
Slide 11: Year Ended March 2024 – Financial Results Summary
Year Ended March 2024 – Financial Results Summary POINT 1 • Cellebrite changed to an equity-method affiliate in Q3 of the year ended March 2023 • Since Cellebrite’s share price rose from $6.09 to $11.08, we recorded an equity method loss due to a loss on valuation of derivatives • Net profit attribu
Slide 12: Sales and Operating Profit by Segment
Sales and Operating Profit by Segment FY Ended FY Ended Year-on Year March 2023 March 2024 Segment Change Topics Actual Actual (%) Results Results Sales 954 994 4.2% • Providing cutting-edge digital intelligence tools, associated training, etc. to address the explosive increase in the amount of digi
Slide 13: Factors Impacting Changes in Sales (excluding Cellebrite)
Factors Impacting Changes in Sales (excluding Cellebrite) ●Increase factor New IT Unit: million yen Received orders for new solutions and resolution of ●Increase factor semiconductor shortage Other ●Increase factor Global DI Sales increased due ●Breakdown of impact to new product sales Entertainment
Slide 14: Factors Impacting Changes in Operating Profit (Excluding Cellebrite)
Factors Impacting Changes in Operating Profit (Excluding Cellebrite) Unit: million yen ●Increase factor SG&A expenses Improved expenses due to revising SG&A expenses, etc. ●Increase factor ●Increase factor New IT Entertainment Resolution of Resolution of semiconductor semiconductor shortage shortage
Slide 15: Consolidated Balance Sheet
Consolidated Balance Sheet POINT While shares in subsidiaries and affiliated companies decreased by 3,500 million yen due to the loss of Cellebrite, which is an equity-method affiliate, we recorded a market value of 8,600 million yen for granted rights based on the price adjustment clause. As a resu
Slide 16: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement POINT Free cash flows decreased by 1,000 million yen due to the return of 3,800 million yen in corporate tax interim payments that were paid in advance in the previous year, a 3,300 million decrease in cash in trust, a −2,100 million yen increase in inventory, etc. F
Slide 17: Results Forecast for Year Ending March 2025
Results Forecast for Year Ending March 2025 POINT While aiming for a cost-efficient revenue structure in the Entertainment business, we will aim to introduce new products and services and expand revenue in the New IT- Related business and Global Data Intelligence business FY Ended March 2024 FY Endi
Slide 18: Shareholder Returns
Shareholder Returns Basic Policy To strengthen our future business development and management base, we will distribute profit while taking into account medium- and long-term changes in free cash flows and the capital efficiency of growth investments and also considering balancing it with stability a
Slide 19: SUNCORPORATION's Growth Strategy (Vision)
SUNCORPORATION’s Growth Strategy (Vision) ©SUNCORPORATION All rights reserved.
Slide 20: SUNCORPORATION's Approach to Business
SUNCORPORATION’s Approach to Business Currently Established Business Areas Technology exploration Exploring needs Entertainment /development (Amusement machines & games) Providing happiness and peace Always exploring and going of mind that fulfill people’s needs Providing high-quality, comfortable f
Slide 21: Changes in Business Portfolio
Changes in Business Portfolio Year Ended March 2019 Year Ended March 2024 Year Ending March 2027 Sales Mix Sales Mix Target Sales Mix 9% 10% 10% 20% 17% 26% 30% 74% 60% 44% Former Mobile Data Solutions Global Data Intelligence Global Data Intelligence New IT New IT New IT Entertainment Entertainment
Slide 22: SUNCORPORATION's Growth Strategy (New Medium-Term Management Plan)
SUNCORPORATION’s Growth Strategy (New Medium-Term Management Plan) ©SUNCORPORATION All rights reserved.
Slide 23: Revising the Medium-Term Management Plan
Revising the Medium-Term Management Plan Difference in Operating Profit in Initial Plan Since the environment changed markedly and Latest Forecast compared to the assumptions of the previous 13,300 mid-term plan, we formulated a new Medium- 12,285 Term Management Plan with the year ending 10,800 10,
Slide 24: Factors in Revising Medium-Term Management Plan
Factors in Revising Medium-Term Management Plan As a result of analyzing the factors that caused revision of the figures, we identified following External factors Internal factors Business changes ● Global semiconductor shortage ● Lag in business advancement due ● Diversification of provided service
Slide 25: Positioning of New Medium-Term Management Plan
Positioning of New Medium-Term Management Plan We have revised the previous mid-term management plan and formulated a new Medium-Term Management Plan. We revised our existing business strategy and are aiming to develop a base for establishing a future growth base. Year ended Year ended Year ending Y
Slide 26: Quantitative Targets and Intended Orientation of New Medium-Term Management Plan
Quantitative Targets and Intended Orientation of New Medium-Term Management Plan Theme of New Medium-Term Management Plan Aiming to enhance existing business strategy and establish a future growth base Quantitative targets (company-wide) Individual strategic themes in mid-term plan Year ended Ye
Slide 27: Recognition of External Environment (Global Data Intelligence Business)
Recognition of External Environment (Global Data Intelligence Business) Global Data Intelligence Business ・DX of criminal investigations is accelerating in response to cyber threats, which are increasing and growing more sophisticated ・Demand for digital tools supporting the DX of criminal investiga
Slide 28: Global Data Intelligence Business Strategies and Measures
Strategies and Measures by Business Segment Sales Segment profit Global Data Intelligence Year ended March 2024 Actual results Year ending March 2027 Plan Year ended March 2024 Actual results Year ending March 2027 Plan Business 994 million yen 1,879 million yen 131 million yen 312 million yen Glo
Slide 29: Recognition of External Environment (New IT-Related Business)
Recognition of External Environment (New IT-Related Business) New IT-Related Business • Adapting to increased data capacity in preparation for the arrival of 5G and enhancing security measures • Intensifying price competition with competitors in mind Assumed business environment Competitive environm
Slide 30: New IT-Related Business Strategies and Measures
Business Segment Strategies and Measures Sales Segment profit Year ended March 2024 Year ending March 2027 Year ended March 2024 Year ending March 2027 New IT-Related Business Actual results 3,022 million yen Plan 5,059 million yen Actual results 230 million yen Plan 911 million yen Features of Ne
Slide 31: Recognition of External Environment (Entertainment Business)
Recognition of External Environment (Entertainment Business) Entertainment Business • The number of pachinko parlors and the pachinko-playing population decreased due to factors such as restrictions on activities during the COVID-19 pandemic, but performance has been favorable for smart pachislot ma
Slide 32: Entertainment Business Strategies and Measures
Business Segment Strategies and Measures Sales Segment profit Entertainment Business Year ended March 2024 Actual results Year ending March 2027 Plan Year ended March 2024 Actual results Year ending March 2027 Plan (Amusement/Games) 6,051 million yen 8,520 million yen 802 million yen 1,536 million y
Slide 33: Technology Strategy
Technology Strategy Supporting business expansion by handling development of technologies that will serve as a basis for SUNCORPORATION’s cutting-edge technology products POINT 1 POINT 2 Role of R&D Division Collaboration with outside companies Supporting growth of each and universities SUNCORPORATI
Slide 34: Investment in Growth Fields
Investment in Growth Fields Establishing cash allocation to maximize corporate value Term of New Medium-Term Management Plan (3 Years) Cash on hand Retained earnings/ Existing business Growth Interest-bearing New Enhancing Details Maintaining business capabilities liabilities Enhancing investment ca
Slide 35: M&A Policy
M&A Policy We are increasing earnings power by shifting from M&A focused on existing business to an M&A policy that seeks a wide range of new growth possibilities, which will lead to increased growth and enhanced corporate value Acquisition based on appropriate price Basic M&A policy Emphasizing
Slide 36: Strengthening Group Management Base through Strengthening Personnel
Strengthening Group Management Base through Strengthening Personnel Enhancing recruitment and development of technical talent, Establishing talent as a enabling advanced technologies to be management priority linked to improved corporate value Personnel strategy orientation Establishing a work Organ
Slide 37: Strengthening Group Management Base through Organizational Improvements
Strengthening Group Management Base through Organizational Improvements Revamping our organizational structure to enhance business management functions and enable matrix management with the aim of further improving corporate value Role Fulfilled by Each Business Organization Business Promotion Divis
Slide 38: Overview of Products and Services by Segment
(Reference Materials) Overview of Products and Services by Segment Segment Topics • Launched Inseyets as a next-generation digital forensics solution in place of UFED which accelerates processes such as automation of collection, extraction, reporting, and triage and eliminates the previous need for
Slide 39: Disclaimer
Disclaimer The purpose of this document is to provide information about the company’s business, management strategy and performance. It is not intended to solicit investment in securities issued by SUNCORPORATION. Furthermore, this document was created based on financial results and corporate data a