Dentsu Soken Inc. · TSE:4812
Dentsu Soken — Q1 2024 Earnings Presentation
18 slides from Dentsu Soken's earnings presentation, Apr 26, 2024
Slide 1: Presentation Material of Financial Results for the First Quarter of FY2024
Presentation Material of Financial Results for the First Quarter of FY2024 (from January 1, 2024 to March 31, 2024) Note: This English translation is solely for reference purposes and not a legally definitive translation of the original Japanese text. In the event a difference arises regarding the m
Slide 2: INDEX
INDEX 01 Outline of financial results for the 1Q of FY2024 02 Forecasts for FY2024 Appendix 2
Slide 3: INDEX
INDEX 01 Outline of financial results for the 1Q of FY2024 02 Forecasts for FY2024 Appendix 3
Slide 4: Financial Highlights for the First Quarter of FY2024
Financial Highlights for the First Quarter of FY2024 +6.7% increase, mainly due to expansion on Financial Solutions Net sales and Manufacturing Solutions Operating +1.4% increase, absorbing increase in cost of sales and SG&A profit expenses due to increase in personnel and higher base salaries Order
Slide 5: Consolidated Results for the First Quarter of FY2024
Consolidated Results for the First Quarter of FY2024 (Unit: Millions of yen) YoY 1Q of FY2024 (cumulative) 1Q of FY2023 Variance % change (cumulative) Net sales 37,099 34,779 +2,320 +6.7 Gross profit 13,566 12,774 +792 +6.2 Gross profit margin (%) 36.6 36.7 -0.1p ‐ Selling, general and administrativ
Slide 6: Factors for Increase/Decrease in Operating Profit (YoY)
Factors for Increase/Decrease in Operating Profit (YoY) (Unit: 100 million of yen) Impact of decline in gross profit margin -0.6 YoY +0.8 Effect of increase in Increase in SG&A sales +8.5 expenses -7.1 Operating Operating Gross profit margin declined -0.1p, Increase mainly in profit profit mainly in
Slide 7: Non-operating Income/Expenses and Extraordinary Income/Losses
Non-operating Income/Expenses and Extraordinary Income/Losses Non-operating income/expenses deteriorated due to the posting of foreign exchange losses, etc. Extraordinary income/loss improved due to the recording of gain on sale of investment securities and a decrease in loss on valuation of inv
Slide 8: Net Sales and Operating Profit by Reportable Segment
Net Sales and Operating Profit by Reportable Segment (Unit : Millions of yen) 1Q of FY2024 YoY Overview (cumulative) Variance % change Net sales 7,886 +571 +7.8 Net sales and operating profit increased due to expanded sales and implementation of third-party software in the accounting Financial Solut
Slide 9: Net Sales by Service Category and Dentsu Group
Net Sales by Service Category and Dentsu Group (Unit: Millions of yen) 1Q of FY2024 YoY Service category (cumulative) Variance % change Consulting Services 2,671 +480 +21.9 Custom System Development 7,531 -422 -5.3 In-house Software 7,496 +294 +4.1 Third-party Software 13,289 +1,912 +16.8 Outsourcin
Slide 10: Net Sales by Industry
Net Sales by Industry (Unit: Millions of yen) 1Q of FY2024 (cumulative) YoY Industry Composition ratio Net sales Variance % change (%) Banks 5,703 15.4 +113 +2.0 Other financial institutions 1,854 5.0 +351 +23.4 Financial 7,558 20.4 +465 +6.6 Transportation equipment 6,537 17.6 +372 +6.0 Electric ap
Slide 11: Orders Received and Order Backlog
Orders Received and Order Backlog (Unit: Millions of yen) Orders received Order backlog 1Q of FY2024 YoY End of YoY (cumulative) % change 1Q of FY2024 % change Total 45,842 +2.4 62,642 +1.6 Financial Solutions 8,822 +28.5 8,711 +18.8 Reportable Business Solutions 5,892 +3.3 8,162 -20.5 segment Manuf
Slide 12: Forecasts for FY2024
INDEX 01 Outline of financial results for the 1Q of FY2024 02 Forecasts for FY2024 Appendix Note: Forecasts of business results in this document are based on judgments and assumptions made in light of industry trends, customer conditions, and other information currently available, and are not intend
Slide 13: Earnings Forecasts for FY2024
Earnings Forecasts for FY2024 There is no changes in the forecasts announced on February 14, 2024. (Unit: Millions of yen) YoY YoY 1H of FY2024 FY2024 1H of (cumulative) FY2023 Variance Variance % change (cumulative) FY2023 % change (cumulative) (cumulative) Net sales 153,000 142,608 +10,392 +7.3
Slide 14: Net Sales Forecasts by Reportable Segment for FY2024
Net Sales Forecasts by Reportable Segment for FY2024 (Unit: Millions of yen) YoY YoY 1H of FY2024 FY2024 1H of (cumulative) FY2023 Variance Variance % change (cumulative) FY2023 % change (cumulative) (cumulative) Financial Solutions 33,000 30,598 +2,402 +7.9 16,000 14,721 +1,279 +8.7 Business Soluti
Slide 15: Net Sales Forecasts by Service Category for FY2024
Net Sales Forecasts by Service Category for FY2024 (Unit: Millions of yen) YoY YoY 1H of FY2024 FY2024 1H of (cumulative) FY2023 Variance % change (cumulative) FY2023 Variance % change (cumulative) (cumulative) Consulting Services 9,500 8,611 +889 +10.3 4,600 3,999 +601 +15.0 Custom System Developme
Slide 16: Appendix
INDEX 01 Outline of financial results for the 1Q of FY2024 02 Forecasts for FY2024 Appendix 16
Slide 17: M&A Implementation
M&A Implementation Acquired all the shares of Mitsue-Links Co., Ltd, UI/UX design company. Strengthen the support business that many company aims to “Creating Value” and “ Improving Customer Experiences,” through synergy with the company. The impact on our forecasts for the current fiscal year
Slide 18: Dentsu Soken Inc.
Bi RST DENTSU SOKEN INC.