Slide 1: Financial Results for Q3 FY06/24
Financial Results for Q3 FY06/24 (July 1 to March 31, 2024) [Non-Consolidated] Intelligent Wave Inc. Announced on May 10, 2024 Copyright © 2024, INTELLIGENT WAVE INC. All rights reserved.
Slide 2: Financial Results for Q3 FY06/24
Financial Results for Q3 FY06/24 Forecast for FY06/24 Key initiatives in FY06/24 Reference Copyright © 2024, INTELLIGENT WAVE INC. All rights reserved. 2
Slide 3: Overview
Overview Sales rose due to growth in system development, cloud services and security, and profits grew significantly, even following the large-scale hardware sales for the renewal of the FEP system* in the same period of the previous year. Orders received grew on an increase in security and system d
Slide 4: Sales by Category
Sales by Category Sales in system development, cloud services, and security grew. Third-party products and services decreased YoY due to large-scale hardware sales for FEP* system renewal in the previous fiscal year. Million yen Cumulative Q3 Cumulative Q3 Change(YoY) FY06/23 FY06/24 Net sales 9,896
Slide 5: Sales by Business Domain
Sales by Business Domain Payment systems, etc., an area of expansion in the payment business domain, grew due to a large-scale project for credit card company. FEP and fraud detection as well as Finance and others declined due to large-scale hardware sales in the previous year. Cloud services grew d
Slide 6: Top Three Clients by Sales
Top Three Clients by Sales As for DNP, sales increased, particularly for security products. System Integrator increased YoY due to large-scale project for credit card company. Credit card company increased YoY due to an expanded scale of system development in multiple areas. Million yen Cumulative Q
Slide 7: Sales by Type (Recurring and Spot)
Sales by Type (Recurring and Spot) Recurring revenue is increasing steadily due to higher sales of cloud services. In the future, the company aims to expand the scale of its business in combination with the growth of flow sales such as system development. Million yen …Spot ※ Recurring ratio …Recurri
Slide 8: Operating income
Operating income Gross profit increased due to higher sales and improved gross margins in system development and cloud services. Selling, general and administrative (SG&A) expenses remained at the same level as in the previous year, thanks to cost optimization, and are progressing well against the f
Slide 9: Cloud Service Business
Cloud Service Business Net sales increased YoY due to an expanded user base (seven companies in total), mainly due to the fraud detection service IFINDS. Profits increased YoY due to changes in the service composition ratio. Orders received fell YoY, but orders on hand rose due to a long-term multi-
Slide 10: Amount of orders
Amount of orders The amount of orders rose in Payment and finance due to a large-scale project for a credit card company as well as a large-scale infrastructure construction and operation project. In Security, orders grew in existing security products along with key management solutions (HSM) and ID
Slide 11: Orders on Hand
Orders on Hand Orders on hand increased significantly due to projects in multi-year contracts for infrastructure construction and operation, cloud services and security, in addition to a large-scale project for credit card company. ■…Payment & Finance (System Development) ■…Payment & Finance (Mainte
Slide 12: Forecast for FY06/24
Financial Results for Q3 FY06/24 Forecast for FY06/24 Key initiatives in FY06/24 Reference Copyright © 2024, INTELLIGENT WAVE INC. All rights reserved. 12
Slide 13: FY06/24 Full-year Forecasts
FY06/24 Full-year Forecasts Million yen FY06/23 FY06/24 Change Actual forecast （full year) １H ２H Full year １H ２H Full year YoY Net sales 6,789 6,585 13,374 7,000 8,000 15,000 ＋12.2% Payment & 5,393 5,015 10,408 5,160 5,840 11,000 ＋5.7% Finance Cloud Services 881 985 1,867 1,190 1,310 2,500 ＋33.9% Se
Slide 14: FY06/24 Forecasts
FY06/24 Forecasts Million yen FY 06/23 FY06/24 actual forecast Cumulative Cumulative Q4 (Full year- YoY Q4 Full year Q1–Q3 Full year Q1–Q3 (actual) Q1–Q3 actual) (full-year) Net sales 9,896 3,478 13,374 10,751 4,249 15,000 ＋12.2% Payment & Finance 7,743 2,665 10,408 7,745 3,255 11,000 ＋5.7% System D
Slide 15: Key initiatives in FY06/24
Financial Results for Q3 FY06/24 Forecast for FY06/24 Key initiatives in FY06/24 Reference Copyright © 2024, INTELLIGENT WAVE INC. All rights reserved. 15
Slide 16: Expansion in the Payment Business
Expansion in the Payment Business Developed a “Card Usage Notification System” that notifies users immediately after they use a card, a new packaged product that utilizes real-time processing technology for FEP and fraud detection. The system has already been introduced by one major credit card comp
Slide 17: Expansion in the Security Business – DNP synergy
Expansion in the Security Business – DNP synergy IWI and DNP established a system to provide consistent cyber security solutions. IWI is in charge of procuring and implementing security products and DNP Information Systems, capable of providing 24/7 cyber security operation services, is responsible
Slide 18: IP Flow Monitoring Solution for broadcasting industry “EoM”
IP Flow Monitoring Solution for broadcasting industry “EoM” There has been an increase in inquiries for the IP flow monitoring solution “EoM” for the broadcasting industry. The IP conversion of broadcasting systems is particularly advancing overseas, and demand there for PoC and similar initiatives
Slide 19: Initiatives for new business creation
Initiatives for new business creation To accelerate the creation of new businesses, we launched “IWI Startup Acceleration Program (ISAP),” which is responsible for business creation and business development, and “Build with ISAP (BWI),” which fosters human resources for business creation. We have ex
Slide 20: Reference
Financial Results for Q3 FY06/24 Forecast for FY06/24 Key initiatives in FY06/24 Reference Copyright © 2024, INTELLIGENT WAVE INC. All rights reserved. 20
Slide 21: Cost of manufacturing
Cost of manufacturing Million yen FY06/23 FY06/24 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Materials cost 21 6 13 9 10 7 9 Labor cost 731 737 696 721 745 744 737 Expenses 486 517 512 519 569 667 661 Subcontracting cost 892 911 929 1,047 1,085 1,124 1,163 Total manufacturing cost 2,132 2,173 2,152 2,298 2,411 2,544 2
Slide 22: SG&A expenses
SG&A expenses Million yen FY06/23 FY06/24 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Salaries 384 388 372 417 387 382 381 Training and recruiting 14 22 18 23 24 12 9 Equipment and maintenance, etc. 120 118 125 133 127 108 113 Advertising 9 13 20 17 14 17 16 Others 124 124 132 138 139 137 115 Total 651 665 667 728 691
Slide 23: Cash Flows
Cash Flows ＋2,507 Million yen (1,894) (1,010) Income before taxes ＋1,503 Purchase of intangible assets (1,485) D&A ＋790 Purchase of PP&E (336) A/R decrease +1,133 Purchase of investment securities (102) A/P decrease (416) 4,694 Inventory increase (76) Dividends (909) 4,298 Income taxes paid (537) Pu
Slide 24: Historical performance
Historical performance Million yen 15000 ■… Net sales ■ … Operating income 13000 11000 9000 7000 5000 3000 1000 1985 86 87 88 89 90 91 92 93 94 95 96 97 98 99 2000 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 -1000 Note: Consolidated results are shown through FY06/15. Note: T
Slide 25: Company overview
Company overview As of December 31,2023 Established December 27, 1984 Location Kayabacho Tower, 1-21-2 Shinkawa, Chuo-ku, Tokyo Employees 475 Parent company Dai Nippon Printing Co., Ltd. (50.73%) Capital stock JPY843.75k Shares 26,340,000 Shareholders 9,808 outstanding Ownership (%) % of shareholder
Slide 26: Intelligent Wave Inc.
These materials were produced to provide information concerning the company and its businesses. They are not intended as a solicitation for investment in securities issued by Intelligent Wave Inc. The opinions, forecasts, and other forward-looking statements in these materials are based on the compa