Tsuzuki Denki Co., Ltd. · TSE:8157

Tsuzuki Denki — FY2022 Earnings Presentation

33 slides from Tsuzuki Denki's earnings presentation, May 25, 2022

  1. Slide 1: Financial Results for the Year Ended March 31, 2022

    Tsuzuki Denki Co., Ltd Financial Results for the Year Ended March 31, 2022 May 25, 2022 Stock code: 8157 URL https://www.tsuzuki.co.jp Copyright © 2022 Tsuzuki Denki Co., Ltd.

  2. Slide 2: Agenda

    Medium-term FY03/23 Shareholder FY03/22 Results Sustainability Progress Forecast Return Agenda 1 FY03/22 Results 2 Progress of Medium-term Management Plan 3 FY03/23 Forecast 4 Shareholder Return ５ Activities Targeting Sustainability 1 Copyright © 2022 Tsuzuki Denki Co., Ltd.

  3. Slide 3: FY03/22 Results

    Medium-term FY03/23 Shareholder FY03/22 Results Progress Sustainability Forecast Return 1 FY03/22 Results 2 Copyright © 2022 Tsuzuki Denki Co., Ltd.

  4. Slide 4: Highlights

    Medium-term FY03/23 Shareholder FY03/22 Results Progress Sustainability Forecast Return Highlights Although net sales were flat YoY, profit rose dramatically thanks to steady growth in the service business and contributions from the Electronic Devices segment Information Network Solutions （＋）Growth

  5. Slide 5: Statement of Income

    Medium-term FY03/23 Shareholder FY03/22 Results Progress Sustainability Forecast Return Statement of Income (Millions of yen) Change FY03/21 FY03/22 Change (YoY) (amount) Net sales 120,004 119,316 -688 99.4% Gross profit 21,465 22,511 1,045 104.9% (Cost ratio) （82.1％） （81.1%） （-1.0pt） － SG&A expense

  6. Slide 6: Factors Affecting Sales

    Medium-term FY03/23 Shareholder FY03/22 Results Progress Sustainability Forecast Return Factors Affecting Sales （単位：億円） (Billions of yen) 4.8 2.0 119.3 120 1.5 （-0.7 YoY） -7.0 -2.0 FY03/21 Growth of service Special Growth in Absence of Delivery delays FY03/22 Sales businesses demand for innovations/

  7. Slide 7: Factors Affecting Operating Income

    Medium-term FY03/23 Shareholder FY03/22 Results Progress Sustainability Forecast Return Factors Affecting Operating Income (Millions of yen) -122 -58 25.3% -235 YoY ＋810 Increase in gross profit: ＋1,045 FY03/21 Improved Lower sales Unprofitable Higher FY03/22 Operating cost ratio projects* SG&A Oper

  8. Slide 8: Results by Segment

    Medium-term FY03/23 Shareholder FY03/22 Results Progress Sustainability Forecast Return Results by Segment (Millions of yen) Net sales Operating income Change Change Change Change FY03/21 FY03/22 FY03/21 FY03/22 (amount) (YoY) (amount) (YoY) Information Network 97,848 92,319 -5,528 94.3％ 2,960 3,400

  9. Slide 9: Sales by Business Model

    Medium-term FY03/23 Shareholder FY03/22 Results Progress Sustainability Forecast Return Sales by Business Model (Millions of yen) Ratios in parentheses YoY 125,366 120,004 119,316 99.4％ Equipment 44,790 37,127 84.0％ （35.7%） 44,207 （31.1%） （36.8%） Development 14,501 & 19,668 14,518 （12.2%） 99.9％ Cons

  10. Slide 10: Orders and Backlogs by Business Model

    Medium-term FY03/23 Shareholder FY03/22 Results Progress Sustainability Forecast Return Orders and Backlogs by Business Model (Millions of yen) Orders Order backlog 130,559 (+7.3% YoY) 121,226 121,655 33,710 38,620 (+50.0％ YoY) Equipment 44,557 43,733 10,318 15,342 Development & 22,467 14,296 20,815

  11. Slide 11: Progress of Medium-term Management Plan

    Medium-term FY03/23 Shareholder FY03/22 Results Progress Sustainability Forecast Return Progress of Medium-term 2 Management Plan 10 Copyright © 2022 Tsuzuki Denki Co., Ltd.

  12. Slide 12: Overview of Medium-term Management Plan (FY03/21 to FY03/23)

    Medium-term FY03/23 Shareholder FY03/22 Results Progress Sustainability Forecast Return Overview of Medium-term Management Plan (FY03/21 to FY03/23) Medium-term Management Plan "Innovation 2023” Help customers achieve digital transformation and boost competitiveness Create a prosperous Vision ＝ soci

  13. Slide 13: Progress of Key Priorities in the Medium-term Management Plan (Overview)

    Medium-term FY03/23 Shareholder FY03/22 Results Progress Sustainability Forecast Return Progress of Key Priorities in the Medium-term Management Plan (Overview) 1. Reforming our business structure by expanding the service we offer The service ratio increased further as we released new services and s

  14. Slide 14: Enhance New Service Framework Lineup (Ref: About TSF)

    Medium-term FY03/23 Shareholder FY03/22 Results Progress Sustainability Forecast Return Enhance New Service Framework Lineup (Ref: About TSF) ➢ Oct. 2021: Released “Total SolutionService Framework (TSF) ➢ Covers all services provided by our company Subsequent services developed and added based on TS

  15. Slide 15: Enhance New Service Framework Lineup

    Medium-term FY03/23 Shareholder FY03/22 Results Progress Sustainability Forecast Return Enhance New Service Framework Lineup ➢ Strengthen SaaS services on TSF, and respond to customers’ diverse cloud-related needs CT-e1: Cloud-based contact center services Addition of functions - Amid a favorable en

  16. Slide 16: Accelerating the Shift to the Cloud to Meet Customer Needs

    Medium-term FY03/23 Shareholder FY03/22 Results Progress Sustainability Forecast Return Accelerating the Shift to the Cloud to Meet Customer Needs ➢ Two years from the start of the current Medium-term Management Plan, "Cloud Service" sales in the service business have grown by 2.8x Start of current

  17. Slide 17: Co-creation for Strengthening Services

    Medium-term FY03/23 Shareholder FY03/22 Results Progress Sustainability Forecast Return Co-creation for Strengthening Services ➢ Completed a capital and business tie-up agreement with Nextgen, Inc. (Dec. 2021) ➢ Along with Nextgen and ComDesign Inc., providing Japan’s first Cloud services that combi

  18. Slide 18: Co-creation in the IoT Business

    Medium-term FY03/23 Shareholder FY03/22 Results Progress Sustainability Forecast Return Co-creation in the IoT Business ➢ Since alliance with JIG-SAW (November 2021), jointly executed numerous PoCs; taking concrete steps toward implementation of new services ➢ Tsuzuki certified as a “Hardware Partne

  19. Slide 19: Rolling out AI Business Targeting Diverse Industries

    Medium-term FY03/23 Shareholder FY03/22 Results Progress Sustainability Forecast Return Rolling out AI Business Targeting Diverse Industries ➢ As the role of ICT changes (efficiency ➡ data applications), expectations for AI technologies increase even further → The scope of customers hoping to use AI

  20. Slide 20: Progress and Future of the Electronic Devices Business

    Medium-term FY03/23 Shareholder FY03/22 Results Progress Sustainability Forecast Return Progress and Future of the Electronic Devices Business ➢ The semiconductor market is growing rapidly amid the pandemic and a digital revolution The spin-off has demonstrated impact, in accurately capturing market

  21. Slide 21: Progress and Future of the Electronic Device Business (Co-creation)

    Medium-term FY03/23 Shareholder FY03/22 Results Progress Sustainability Forecast Return Progress and Future of the Electronic Device Business (Co-creation with Other Companies) ➢ Completed a partnership agreement with NVIDIA, a top global manufacturer of GPUs* *GPU: Graphics Processing Unit; a high-

  22. Slide 22: Activities Aimed at Increasing Share Liquidity

    Medium-term FY03/23 Shareholder FY03/22 Results Progress Sustainability Forecast Return Activities Aimed at Increasing Share Liquidity ➢ Secondary offering of Tsuzuki Denki shares (conditions decided Feb. 15, 2022; delivery date: Feb. 22, 2022) Goal is to expand the shareholder base, improve share d

  23. Slide 23: Strengthening Governance (Corporate Officers)

    Medium-term FY03/23 Shareholder FY03/22 Results Progress Sustainability Forecast Return Strengthening Governance (Corporate Officers) ➢ Independent outside directors to account for more than 1/3rd of directors ➢ Board of Directors reorganized into a management structure that concentrates on supervis

  24. Slide 24: FY03/23 Forecast

    Medium-term FY03/23 Shareholder FY03/22 Results Progress Sustainability Forecast Return 3 FY03/23 Forecast 23 Copyright © 2022 Tsuzuki Denki Co., Ltd.

  25. Slide 25: FY03/23 Forecast

    Medium-term FY03/23 Shareholder FY03/22 Results Progress Sustainability Forecast Return FY03/23 Forecast Although we expect to see continued strong demand for ICT and electronic devices, which have seen rapid growth due to the trend toward digitalization amid the pandemic, the future remains uncerta

  26. Slide 26: Shareholder Return

    Medium-term FY03/23 Shareholder FY03/22 Results Progress Sustainability Forecast Return ４ Shareholder Return 25 Copyright © 2022 Tsuzuki Denki Co., Ltd.

  27. Slide 27: Shareholder Return

    Medium-term FY03/23 Shareholder FY03/22 Results Progress Sustainability Forecast Return Shareholder FY03/22 dividend at JPY48; Payout ratio at 30.3% FY03/23 dividend at JPY50; (JPY2 commemorative dividend scheduled to mark Return 90 anniversary of establishment) th Aiming to maintain stable dividend

  28. Slide 28: Activities Targeting Sustainability

    Medium-term FY03/23 Shareholder FY03/22 Results Progress Sustainability Forecast Return ５ Activities Targeting Sustainability 27 Copyright © 2022 Tsuzuki Denki Co., Ltd.

  29. Slide 29: The Tsuzuki Group's Sustainability

    Medium-term FY03/23 Shareholder FY03/22 Results Progress Sustainability Forecast Return The Tsuzuki Group’s Sustainability ➢ Established the Sustainability Management Committee and the Sustainability Promotion Committee to strengthen the structure ➢ Expressed approval for TCFD recommendations [Targe

  30. Slide 30: Press Releases

    Reference Press Releases No. Date Content 1 2022/05/13 Notice of commemorative dividend celebrating 90th year since Tsuzuki's establishment 2 2022/05/13 Expression of approval for TFCD recommendations, and notice of information disclosure Recognized as one of the Health and Productivity Corporations

  31. Slide 31: Stock Price History (as of May 22, 2022)

    Reference Stock Price History (as of May 22, 2022) (Volume: Shares) Secondary offering of Tsuzuki (Stock price: Yen) 1,800,000 Denki shares 2,500 Feb. 4: Notice of decision Feb. 15: Conditions decided 1,600,000 2,000 1,400,000 1,200,000 1,500 1,000,000 800,000 1,000 600,000 Share volume (avg.): Befo

  32. Slide 32: 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/ Disclaimer The forward-looking statements, including earnings forecasts, co

  33. Slide 33: Copyright © 2022 Tsuzuki Denki Co., Ltd.

    Copyright © 2022 Tsuzuki Denki Co., Ltd.

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