Slide 1: Presentation Materials for the FY2017 Results Briefing
Presentation Materials for the FY2017 Results Briefing Densan System Co., Ltd. Tokyo Stock Exchange, First Section Nagoya Stock Exchange, First Section Securities Code: 3630 Forward-looking statements contained in this document are based on current estimates and projections and include potential ris
Slide 2: FY2017 Business Results Highlights
FY2017 Business Results Highlights Y-o-y change in parentheses Sales Operating income Net income attributable to shareholders of the parent company 33,545 million yen 1,297 million yen 821 million yen (Up 10.5%) (Up 15.3%) (Up 12.2%) Business results ✔ Sales and earnings up y-o-y ✔ Sales miss plan b
Slide 3: FY2017 Business Results Highlights: Sales almost to plan, income ahead of plan
FY2017 Business Results Highlights (Unit: 100 million yen) ✔ Sales almost to plan, income ahead of plan Attainment FY 12/2016 FY 12/2017 Y-o-y (%) Plan ratio Sales 30,369 33,545 10.5% 33,700 99.5% Operating 1,125 1,297 15.3% 1,170 110.9% income Income ratio 3.7% 3.9% Up 0.2% 3.5% Ordinary 1,157 1,33
Slide 4: Transition in Quarterly Business Results
Transition in Quarterly Business Results (Unit: 100 million yen) ✔ 4Q posted income growth as planned FY 12/2017 33,545 FY 12/2017 1,297 Plan 1,170 Sales Plan 33,700 Operating income Compared Compared with plan -155 with plan 127 10,000 9,177 405 400 388 8,208 8,352 7,963 8,051 364 8,000 7,556 7,383
Slide 5: FY2017 By Segment
FY2017 By Segment (Unit: 100 million yen) ✔ Earnings restored at information service (due to the absence of significant loss-making projects) ✔ Earnings decline at payment agency service mainly due to platform transition costs Sales Operating income 35,000 1,400 Payment 1,300 Payment 32,500 agency a
Slide 6: FY2017 Information Services Summary
FY2017 Information Services Summary (Unit: 100 million yen) ✔ Information services overall missed sales target but contributed to income Higher income from growing cloud services and enhanced margins at matured services Information processing services down y-o-y due to processing for large gas stati
Slide 7: FY2017 Information Services in Details: SI and software development
FY2017 Information Services in Details (Unit: 100 million yen) SI and software development Number of Google (G Suite) adopter companies ✔ Data center business makes 1,246 1,099 favorable turnaround 943 Sales of cloud related 830 ✔ Software development 675 2,935 services commissions doing well 517 43
Slide 8: FY2017 Information Services in Details: BPO business
FY2017 Information Services in Details (Unit: 100 million yen) BPO business Number of items processed (in thousand items) 56,042 51,053 ✔ Start-up of new services 39,000 ✔ BPO center construction 24,399 upcoming 22,478 14,700 Sales 3,000 2,863 3,011 2,385 2,000 1,290 1,345 1,032 1,000 0 2015.6 2015.
Slide 9: FY2017 Payment Agency Services Summary
FY2017 Payment Agency Services Summary (Unit: 100 million yen) ✔ Payment agency services overall post y-o-y income drop Income ahead of plan due to overseas cost; y-o-y drop due to platform transition cost Y-o-y Plan Attainment FY 12/2016 FY 12/2017 Amount Ratio ratio Sales 15,049 16,332 1,282 8.5%
Slide 10: FY2017 Payment Agency Services in Details: Payment service
FY2017 Payment Agency Services in Details (Unit: 100 million yen) Payment service ✔ Sales and number of processed items favorable Number of items processed 198,235 (in thousand items) 181,157 167,535 16,332 15,049 628 15,000 13,724 607 1,177 554 1,173 99,519 12,500 1,063 90,256 10,000 82,563 Sales 2
Slide 11: Status of payment innovation
FY2017 Payment Agency Services in Details Status of payment innovation ✔ Counter payment service - 2,300 adopter stores ✔ International remittances - Earnings improvement due to changed cost structure (Average number of remittances (day)) International remittances (Number of registered users (10,000
Slide 12: FY2018 Business Results Projections
FY2018 Business Results Projections (Unit: 100 million yen) ✔ Reason for income growth falling behind sales expansion Proactive M&A, acquisition of PCIDSS, and payment agency service transitioning to secondary platform and other miscellaneous costs are expected to weigh down income FY 12/2017 FY 12/
Slide 13: FY2018 Information Services Projection
FY2018 Information Services Projection (Unit: 100 million yen) ✔ SI and software development Software development to remain favorable Google related business to grow strongly ✔ Information processing Many new BPO projects, aiming to acquire orders FY 12/2017 FY 12/2018 projection Full year Change in
Slide 14: FY2018 Payment Agency Services Projection
FY2018 Payment Agency Services Projection (Unit: 100 million yen) ✔ Transition to secondary platform (final) in order to establish the perfect system ✔ Strengthening the planning division, pursuing new services FY 12/2017 FY 12/2018 projection Full year Change in 1H 2H Full year 1H 2H Full year Y-o-
Slide 15: Medium-Term Management Plan: Driving structural transformation
Medium-Term Management Plan (3-Year Plan from Dec. 2018 to Dec. 2020) Main Points Driving structural transformation Key measures 1. Overseas business development 2. Transition from flow business to stock business 3. Proactive M&A
Slide 16: Medium-Term Management Plan: Driving structural transformation
Medium-Term Management Plan (3-Year Plan from Dec. 2018 to Dec. 2020) (Unit: 100 million yen) ✔ Driving structural transformation Growth rate FY 12/2017 FY 12/2018 FY 12/2019 FY 12/2020 y-o-y Actual Plan Plan Plan Average Sales 33,545 36,500 40,000 44,000 9.5% Information service 17,212 18,888 20,86
Slide 17: Long-term plan PLAN 2020
Long-term plan PLAN 2020 3 fields, 7 businesses - Achieve over 80% stock-type business ● Payment field ● Business processing field (1) Payment agency (5) BPO business (6) Development, operation and services business 2020 (2) Remittance services maintenance business Information and (7) Medical busine
Slide 18: Overseas business development
Medium-Term Management Plan - Key Measures 1 Overseas business development ✔ With Philippines-based payment agency service company CIS Bayad Center, Inc. Mar. 16: Widening of operational cooperation to capital participation Oct. 30: Conclusion of a business agreement Signing ceremony attended by Pre
Slide 19: Transition from flow business to stock business
Medium-Term Management Plan - Key Measures 2 Transition from flow business to stock business ✔ Digital signage Toei Bus, Tokyo Metro (Cloud-type digital signage system) Toei Bus Tokyo Metro
Slide 20: Transition from flow business to stock business
Medium-Term Management Plan - Key Measures 2 Transition from flow business to stock business ✔ Japan Post Mimamori Service Japan Post Mimamori Service (Mimamori House Call Service and Mimamori Phone Service) Aug. 7: Start of application acceptance Oct. 1: Start of service provision Clerical center o
Slide 21: Proactive M&A
Medium-Term Management Plan - Key Measures 3 Proactive M&A ✔ Synergy effects with GOGA and GOGA Data Analysis Geared at One Google service companies Considering data analysis services using Google Cloud Platform
Slide 22: Topics: Nagoya office relocation and commemorative seminar
Topics Oct. 2: Relocation and expansion of Oct. 25: The Gifu Chamber of Nagoya office Commerce and Industry Juroku Bank Nagoya Building, 12th floor Floor area increased 50% for business Development of Pepper event expansion in Aichi Prefecture information application Oct. 23: Commemorative seminar C
Slide 23: Topics (Payment Agency Service)
Topics (Payment Agency Service) A string of new payment agency services! June 27: New payment service provision using SMS July 18: Cooperative agreement with PayB smartphone payment app Sep. 7: Easy payment at convenience stores with electronic barcode payment app
Slide 24: Topics (Locating in Tono)
Topics (Locating in Tono) Facility expansion in Tono, Gifu Prefecture in 2018! ✔ March: Opening of Advanced Technology Development Center ✔ November: Tono BPO Center scheduled to start up ✔ Data center facility expansion under consideration Planned location of the data center expansion Data center a
Slide 25: Shareholder Returns
Shareholder Returns ✔ Annual ordinary dividend per-share: ¥26.0 30 Dividend payout ratio: 30.2% (Up 4.0%) 25 Interim Year-end Special dividend 20 2.5 13 12 13 11 12 15 10 9 10 7 12 12 13 5 10 11 11 7 8.5 0 FY 12/2011 FY 12/2012 FY 12/2013 FY 12/2014 FY 12/2015 FY 12/2016 FY 12/2017 FY 12/2018 (Proje
Slide 26: Thank you for your attention.
Challenge Innovation Thank you for your attention. Speed