Projectholdings.inc. · TSE:9246
Projectholdings.inc — Q1 2024 Earnings Presentation
38 slides from Projectholdings.inc's earnings presentation, May 15, 2024
Slide 1: Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2024
Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2024 ProjectHoldings, Inc. [TSE Growth: 9246] (Company name changed from ProjectCompany, Inc. in January 2024) May 15, 2024
Slide 2: Executive Summary
Executive Summary Q1 FY2024 Financial Results Net Sales Operating Profit EBITDA*1 EBITDA Margin ¥1,439 million ¥-22 million ¥33 million 2.3% (-3.7% YoY) ( - YoY) (-87.8% YoY) (-15.9 pts YoY) ◼ Net sales decreased QoQ mainly due to the resignation of 15 Digital transformation business employees at th
Slide 3: Overview of ProjectHoldings, Inc. ・・・ p. 4 Q1 FY2024 Financial Results
1. Overview of ProjectHoldings, Inc. ・・・ p. 4 2. Q1 FY2024 Financial Results ・・・ p. 11 3. Situation of the Digital Transformation Business ・・・ p. 17 4. Supplementary Explanation of Financial Results Forecast Revision ・・・ p. 22 Appendix (i) Overview of Digital Transformation Business ・・・ p. 37 Append
Slide 4: 1. Overview of ProjectHoldings, Inc.
1. Overview of ProjectHoldings, Inc. Proj ectHo l di ng s, In c . 4
Slide 5: Group Management Philosophy
1. Overview of ProjectHoldings, Inc. Group Management Philosophy Mission Creating a Project-based Society Vision Our vision is to foster and develop a large number of professionals who will lead the next generation and provide a variety of solutions that transform companies. By doing so, we aim to g
Slide 6: Company History
1. Overview of ProjectHoldings, Inc. Transition to a pure holding company structure and Company History office relocation 2024.1 Consolidated Dr.KENKO KEIEI Inc. Period of multi-faceted growth through and artwize inc. Into the Group 2023.4 integrated group management Established ProjectDigitalMarket
Slide 7: Business Domains of the Group
1. Overview of ProjectHoldings, Inc. Business Domains of the Group ◼ We define “digital transformation” (DX) as the expansion of businesses at operating companies through the use of digital technologies to develop new businesses and improve operations. With this understanding, we provide one-stop su
Slide 8: Business Structure Diagram
1. Overview of ProjectHoldings, Inc. Business Structure Diagram Partner *1 Service support Digital transformation business Consulting support Cooperating Client Corporate planning and Company *2 Payment of support fees Payment of consignment fees business departments Participation in user tests Supp
Slide 9: Case Studies
1. Overview of ProjectHoldings, Inc. Case Studies SBI NEOMOBILE transcosmos SECURITIES Support for launching a stock purchase service using T-points Joint DX support by combining know-how of both companies Supported a project to launch a new service that enables transactions Supporting more than 600
Slide 10: Situation of Employees
1. Overview of ProjectHoldings, Inc. Situation of Employees ◼ The number of employees on a consolidated basis decreased to 226 as of March 31, 2024, mainly due to the resignation of 15 employees in the Digital transformation business at the end of the previous quarter. ◼ In April 2024, 40 new gradua
Slide 11: 2. Q1 FY2024 Financial Results
2. Q1 FY2024 Financial Results Proj ectHo l di ng s, In c . 11
Slide 12: Financial Results - Net Sales
2. Q1 FY2024 Financial Results Financial Results - Net Sales ◼ Achieved net sales of ¥1,439 million in Q1 FY2024, down 7.8% QoQ and down 3.7% YoY. ◼ Net sales of the Digital transformation business totaled ¥1,070 million, down 4.5% QoQ and down 10.5% YoY. DX x HR business Net sales (million yen) 1,6
Slide 13: Financial Results - Operating Profit and EBITDA
2. Q1 FY2024 Financial Results Financial Results - Operating Profit and EBITDA ◼ Amid a decrease in revenue, operating profit and EBITDA decreased QoQ due to increases in personnel expenses and outsourcing expenses from personnel system reforms and measures to strengthen human resources development,
Slide 14: Results by Segment - Net Sales
2. Q1 FY2024 Financial Results Results by Segment - Net Sales ◼ Net sales by segment are as follows. Digital transformation business DX x Technology business DX x HR business *The aggregation standards for marketing services were partially changed in FY2023, *The business was consolidated in Q4 FY20
Slide 15: Results by Segment - Cost of Sales & Gross Profit
2. Q1 FY2024 Financial Results Results by Segment - Cost of Sales & Gross Profit ◼ Q1 operating profit was ¥-22 million due to a decrease in gross profit margin in the Digital transformation business (p.21), a decrease in gross profit from decreased sales in the DX x Technology business, and an incr
Slide 16: Breakdown of SG&A Expenses
2. Q1 FY2024 Financial Results Breakdown of SG&A Expenses ◼ To reform the personnel system and strengthen human resource development, external human resources were utilized. Therefore, personnel and outsourcing expenses increased. ◼ Basically in line with the initial plan, except for the increase in
Slide 17: 3. Situation of the Digital Transformation Business
3. Situation of the Digital Transformation Business Proj ectHo l di ng s, In c . 17
Slide 18: Business KPI Trends: Number of Clients & Net Sales per Client
3. Situation of the Digital Transformation Business Business KPI Trends｜Number of Clients & Net Sales per Client ◼ The number of UIscope projects and number of clients remained weak as priority was placed on organizational restructuring, but net sales per client of existing customers continued to be
Slide 19: Business KPI Trends: Number of Employees & Net Sales per Employee
3. Situation of the Digital Transformation Business Business KPI Trends｜Number of Employees & Net Sales per Employee ◼ Although the attrition rate continues to be high, the number of resignations is decreasing due to the effects of measures such as the reinforcement of HR functions from January. (p.
Slide 20: Topics 1: Employee Attrition Rate
3. Situation of the Digital Transformation Business Topics | 1 | Employee Attrition Rate ◼ As of the end of March 2024, approximately 20 employees had left the company, mainly due to the circumstances that led to the resignation of the former Executive Vice President in September 2023. ◼ It is recog
Slide 21: Topics 2: Factors behind Declining Profit Margins
3. Situation of the Digital Transformation Business Topics | 2 | Factors behind Declining Profit Margins ◼ The decrease in gross profit margin in Digital transformation business was mainly due to an increase in personnel expenses per employee as a result of personnel system reforms and an increase i
Slide 22: 4. Supplementary Explanation of Financial Results Forecast Revision
4. Supplementary Explanation of Financial Results Forecast Revision Proj ectHo l di ng s, In c . 22
Slide 23: Summary of Changes
4. Supplementary Explanation of Financial Results Forecast Revision Summary of Changes ◼ Forecast of FY2024 has been revised downward mainly due to (1) the change of accounting method for rent expenses from the assumption made at the time of budgeting (p. 24), and (2) the decision to transfer the sh
Slide 24: 1. Change in Accounting Method for Rent Expenses
4. Supplementary Explanation of Financial Results Forecast Revision 1. Change in Accounting Method for Rent Expenses ◼ For the accounting method for rent expenses, we plan to record expenses from January 2024 on a pro-rata basis over the term of the contract. ◼ As expenses will increase more than ex
Slide 25: 2. Sale of ProjectHRsolutions, Inc.
4. Supplementary Explanation of Financial Results Forecast Revision 2. Sale of ProjectHRsolutions, Inc. ◼ We will transfer all shares of ProjectHRsolutions Inc. owned by the Company and withdraw from HR solution services, based on recent business conditions, the state of synergies, and the perspecti
Slide 26: Three-Year Performance Targets (FY2024-FY2026)
4. Supplementary Explanation of Financial Results Forecast Revision Three-Year Performance Targets (FY2024-FY2026) ◼ Performance targets for FY2025 and beyond are unchanged from those announced in March 2024. ◼ The impact on the next fiscal year and beyond is being scrutinized, and a new three-year
Slide 27: Appendix (i) Overview of Digital Transformation Business
Appendix (i) Overview of Digital Transformation Business Proj ectHo l di ng s, In c . 27
Slide 28: Feature 1) Strong Customer Base Centered on Major Companies
Appendix (i) Overview of Digital Transformation Business Feature｜1) Strong Customer Base Centered on Major Companies ◼ About 60% of all clients are large companies with sales of 100 billion yen or more accounting for about 80% of our total net sales. ◼ We do business with a wide range of major compa
Slide 29: Feature 2) Accumulation of Long-term Customers through Recurring-type Business Model
Appendix (i) Overview of Digital Transformation Business Feature｜2) Accumulation of Long-term Customers through Recurring-type Business Model ◼ We recognize that consulting companies generally have a sales structure that emphasizes spot and flow projects. ◼ We have bolstered net sales by building a
Slide 30: Case Introduction: Consulting Services (New Business Development)
Appendix (i) Overview of Digital Transformation Business Case Introduction ｜ Consulting Services (New Business Development) ◼ Business Strategy Planning provides support for new business development projects, such as considering business models and formulating business plans. ◼ We develop and manage
Slide 31: Case Introduction: Marketing Services
Appendix (i) Overview of Digital Transformation Business Case Introduction ｜ Marketing Services (Marketing Strategy Planning to Implementation Support) ◼ In planning a marketing strategy, it is important to clarify the purpose of marketing by defining specific targets. ◼ Furthermore, the value of ou
Slide 32: Case Introduction: UIscope Services
Appendix (i) Overview of Digital Transformation Business Case Introduction | UIscope Services ◼ In UI research, we collect unfiltered opinions from target users regarding the usability of applications and websites. ◼ By identifying bottlenecks that cannot be fully understood through quantitative dat
Slide 33: Appendix (ii) Other Reference Information
Appendix (ii) Other Reference Information Proj ectHo l di ng s, In c . 33
Slide 34: Company Overview
Appendix (ii) Other Reference Information Company Overview Company ProjectHoldings, Inc. Name Head Office Azabudai Hills Mori JP Tower 24F, 1-3-1 Azabudai, Minato-ku, Tokyo Location Establishment January 2016 Share Capital 1,029,016 thousand yen (as of March 31, 2024) Representative Director, Doi, Y
Slide 35: Financial Data
Appendix (ii) Other Reference Information Financial Data Fiscal period 1st period 2nd period 3rd period 4th period 5th period 6th period 7th period 8th period 9th period December December December December December December December December Fiscal year end Q1 FY2024 2016 2017 2018 2017 2020 2021 20
Slide 36: Environment Social Governance
Appendix (ii) Other Reference Information Initiatives Related to Environmental, Social and Governance Issues Relocation to a new environmentally friendly office E nvironment ✓ Relocated head office to Azabudai Hills, which boasts about 2.4ha of greenery. ✓ Moved into the office building that supplie
Slide 37: Points to Note
Points to Note ◼ Information in this document other than information on the Company is derived from publicly available information, and the Company makes no representations or warranties regarding its authenticity, accuracy or completeness. ◼ This document also refers to the future prospects of the
Slide 38: ProjectHoldings
ProjectHoldings