Projectholdings.inc. · TSE:9246
Projectholdings.inc — FY2023 Earnings Presentation
44 slides from Projectholdings.inc's earnings presentation, Feb 14, 2024
Slide 1: Financial Results for the Fiscal Year Ended December 31, 2023
Financial Results for the Fiscal Year Ended December 31, 2023 ProjectHoldings, Inc. [TSE Growth: 9246] (Company name changed from ProjectCompany, Inc. in January 2024) February 14, 2024
Slide 2: Executive Summary
Executive Summary Q4 FY2023 Financial Results Net Sales Operating Profit EBITDA*1 EBITDA Margin ¥1,560 million ¥189 million ¥235 million 15.1% (+13.3% YoY) (-28.9% YoY) (-22.2% YoY) (-6.9 pts YoY) ◼ Despite the YoY increase in net sales, the Digital transformation business grew only by 1.3% YoY due
Slide 3: Overview of ProjectHoldings, Inc. ・・・ p. 4 Q4 FY2023 and Full Year Financial Results
1. Overview of ProjectHoldings, Inc. ・・・ p. 4 2. Q4 FY2023 and Full Year Financial Results ・・・ p. 11 3. Situation of the Digital Transformation Business ・・・ p. 19 4. Performance Outlook for FY2024 and Medium-Term Business Plan ・・・ p. 24 Appendix (i) Overview of Digital Transformation Business ・・・ p.
Slide 4: 1. Overview of ProjectHoldings, Inc.
1. Overview of ProjectHoldings, Inc. ProjectHoldings, Inc. 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 was 239 as of December 31, 2023, decreasing slightly from Q3. ◼ The decrease was mainly due to curbs on mid-career hiring in the Digital transformation business and a high attrition rate (☞ p. 23). Composition of T
Slide 11: 2. Q4 FY2023 and Full Year Financial Results
2. Q4 FY2023 and Full Year Financial Results ProjectHoldings, Inc. 11
Slide 12: Quarterly | Financial Results - Net Sales
2. Q4 FY2023 and Full Year Financial Results Quarterly | Financial Results - Net Sales ◼ Achieved net sales of 1,560 million in Q4 FY2023, down 3.5% QoQ and up 13.4% YoY. ◼ Net sales of the Digital transformation business totaled 1,121 million, down 3.9% QoQ and up 1.7% YoY. DX x HR business Net sal
Slide 13: Quarterly | Financial Results - Operating Profit & EBITDA
2. Q4 FY2023 and Full Year Financial Results Quarterly | Financial Results - Operating Profit & EBITDA ◼ Operating profit and EBITDA decreased QoQ, mainly due to an increase in rent expenses associated with the office relocation. EBITDA EBITDA margin Opetrating profit 29.2% 28.1% Operating profit ma
Slide 14: Quarterly | Results by Segment - Net Sales
2. Q4 FY2023 and Full Year Financial Results Quarterly｜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, and *The business
Slide 15: Quarterly | Results by Segment - Cost of Sales & Gross Profit
2. Q4 FY2023 and Full Year Financial Results Quarterly｜Results by Segment - Cost of Sales & Gross Profit ◼ In the Digital transformation business and DX x Technology business, although gross profit margin improved, the amount of gross profit decreased in association with the decrease in net sales. D
Slide 16: Quarterly | Breakdown of SG&A Expenses
2. Q4 FY2023 and Full Year Financial Results Quarterly｜Breakdown of SG&A Expenses ◼ SG&A expenses increased 13.8% QoQ due to an increase in rent expenses associated with the office relocation as well as an increase in attorneys’ fees and entertainment expenses, etc. ◼ As part of the expenses were no
Slide 17: Full Year | Financial Results - Net Sales and Operating Profit
2. Q4 FY2023 and Full Year Financial Results Full Year | Financial Results - Net Sales and Operating Profit ◼ For the full year of FY2023, net sales grew by 44.4% YoY to 6,283 million yen, while operating profit decreased by 10.5% YoY to 857 million yen mainly due to slower growth of the Digital tra
Slide 18: Full Year | Change Factors in Operating Profit (Year-on-Year)
2. Q4 FY2023 and Full Year Financial Results Full Year | Financial Results - Change Factors in Operating Profit (Year-on-Year Comparison) ◼ Operating profit decreased in FY2023 mainly due to an increase in personnel expenses (SG&A expenses) and hiring expenses associated with reinforced hiring of ne
Slide 19: 3. Situation of the Digital Transformation Business
3. Situation of the Digital Transformation Business ProjectHoldings, Inc. 19
Slide 20: 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 clients fell short of the target as priority was placed on organization strengthening, but net sales per client of existing clients grew generally steadily. Number of clie
Slide 21: Business KPI Trends | Number of Employees and Net Sales per Employee
3. Situation of the Digital Transformation Business Business KPI Trends｜Number of Employees and Net Sales per Employee ◼ The attrition rate continued to stay at a high level, partly impacted by the resignation of the former Executive Vice President. Countermeasures have been taken by reinforcing the
Slide 22: Topics 1 | Fostering New Graduate Employees and Managers
3. Situation of the Digital Transformation Business Topics | 1 | Fostering Situation of New Graduate Employees Joining in April 2023 and Mangers/Candidates ◼ Almost all new graduate employees joining the Company in April 2023, on whom focus was placed to make them ready for work, reached the level o
Slide 23: Topics 2 | Situation of Employee Attrition Rate
3. Situation of the Digital Transformation Business Topics | 2 | Situation of Employee Attrition Rate ◼ Approximately 15 employees left the Company by December 31, 2023, with the main reason being the way the former Executive Vice President resigned in September 2023. ◼ Initial countermeasures have
Slide 24: 4. Performance Outlook for FY2024 and Medium-Term Business Plan
4. Performance Outlook for FY2024 and Medium-Term Business Plan ProjectHoldings, Inc. 24
Slide 25: Performance Outlook for FY2024 - Overview
4. Performance Outlook for FY2024 and Medium-Term Business Plan Performance Outlook for FY2024 - Overview FY2023 FY2024 Unit: million yen Change Change rate (%) (Results) (Forecast) ◼ Net sales for FY2024 are projected to remain largely flat Net sales 6,283 6,100 -183 -2.9 YoY. ◼ By segment, sales a
Slide 26: Performance Outlook for FY2024 - Factors for Increase/Decrease in Operating Profit
4. Performance Outlook for FY2024 and Medium-Term Business Plan Performance Outlook for FY2024 - Factors for Increase/Decrease in Operating Profit ◼ Operating profit is projected to decline in FY2024, mainly due to a decrease in gross profit as a result of prioritizing organizational restructuring a
Slide 27: Progress Towards the Medium-term Target TARGET100
4. Performance Outlook for FY2024 and Medium-Term Business Plan Progress Towards the Medium-term Target “TARGET100” ◼ Fully revised “TARGET100,” the medium-term goal announced in February 2022, in light of the extremely high hurdles to achieving it. 7,500 Medium-term goal “TARGET100” (announced in F
Slide 28: Growth Strategy - The Whole Picture
4. Performance Outlook for FY2024 and Medium-Term Business Plan Growth Strategy - The Whole Picture ◼ Set “fostering of people” and “business development” as the basic strategies for realizing our mission. Mission 10 billion yen business Creating a Project-based Society Management 10 people personne
Slide 29: Growth Strategies - (1) Fostering of People
4. Performance Outlook for FY2024 and Medium-Term Business Plan Growth Strategies - (1) Fostering of People ◼ Establish “PHD Professional,” a new definition in light of the growth strategies shown on the previous page, and create a new organization with the mission of fostering “potential personnel,
Slide 30: Growth Strategies - (2) Business Development
4. Performance Outlook for FY2024 and Medium-Term Business Plan Growth Strategies - (2) Business Development ◼ Broaden the frontiers of DX consulting services and explore the issues and needs of corporate transformation through supporting clients’ businesses. ◼ For the issues and needs that have man
Slide 31: Three-year Performance Targets (FY2024-FY2026)
4. Performance Outlook for FY2024 and Medium-Term Business Plan Three-year Performance Targets (FY2024-FY2026) ◼ Based on the growth strategies outlined in the previous pages, the mid-term business plan targets net sales of approx. 10 billion yen for FY2026, and it will be re-formulated at the end o
Slide 32: To Our Investors and Shareholders
To Our Investors and Shareholders To those of you who hold our shares as shareholders or are considering holding our shares, we always appreciate your warm support. As a company in the venture phase, we have undeniably followed the path of expansion and growth, and our management awareness has been
Slide 33: Appendix (i) Overview of Digital Transformation Business
Appendix (i) Overview of Digital Transformation Business ProjectHoldings, Inc. 33
Slide 34: 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 35: 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 36: 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 37: 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 38: 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 39: Appendix (ii) Other Reference Information
Appendix (ii) Other Reference Information ProjectHoldings, Inc. 39
Slide 40: 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 December 31, 2023) Representative Director, Pre
Slide 41: 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 December December December December December December December December Fiscal year end 2016 2017 2018 2017 2020 2021 2022 2023 Net sales (th
Slide 42: Initiatives Related to Environmental, Social and Governance Issues
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 43: 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 44: ProjectHoldings
ProjectHoldings