Intelligent Wave Inc. · TSE:4847
Intelligent Wave — Q3 FY06/25 Earnings Presentation
30 slides from Intelligent Wave's earnings presentation, May 9, 2025
Slide 1: Financial Results for Q3 FY06/25
Financial Results for Q3 FY06/25 (July 1 to March 31, 2025) [Non-Consolidated] Intelligent Wave Inc. Announced on May 9, 2025 © INTELLIGENT WAVE INC. All rights reserved.
Slide 2: Financial Results for Q3 FY06/25
Financial 2024年6月期１Q 業績と成果 Results for Q3 FY06/25 Forecast for FY06/25 Progress of the Medium-Term Management Plan Reference © INTELLIGENT WAVE INC. All rights reserved. 2
Slide 3: Overview
Overview ■ Net sales increased due to firm sales in the mainstay payment domain and the introduction of products to a major customer in the security domain. ■ Profit was lower than in the previous year due to lower gross profit margins in cloud services and security. ■ Order backlogs increased due t
Slide 4: Sales by Business Domain
Sales by Business Domain ■ In the payment domain, sales in the FEP and fraud detection areas increased due to system upgrades by existing customers, and the number of companies using cloud service rose. Sales in others area decreased on a temporary fall in the number of projects for existing custome
Slide 5: Top Five Clients by Sales
Top Five Clients by Sales ■ For DNP, security-related sales increased due to the introduction of new security products. ■ Sales for “System Integrator” in both 2. and 3. declined due to a large project for a credit card company that was shifted to the system development phase. ■ Sales for “Credit ca
Slide 6: Sales by Category
Sales by Category ■ System development sales decreased due to the shift of development phases for a large project, but increased due to system upgrades for existing customers. ■ Cloud services sales increased due to an increase in the number of users and addition of functions for existing users. ■ S
Slide 7: Operating income
Operating income ■ Gross margins for system development and maintenance in the payment domain remained strong, but overall profitability declined due to higher infrastructure costs for cloud services and the impact of the product mix in the security domain. We will continue to improve gross margins
Slide 8: Cloud Service Business
Cloud Service Business ■ Net sales increased due to an increase in the number of users of IFINDS, additional functions for existing users of IOASIS, and new releases of IGATES. ■ Gross profit was impacted by rising infrastructure costs; however, we are working to improve margins by reducing infrastr
Slide 9: Amount of orders (by Category)
Amount of orders (by Category) ■ Orders increased mainly in cloud services, security, and infrastructure operation services. ■ Orders for system development decreased due to the shift of development phases for a large project and temporary investment restraints by existing customers. Proposal activi
Slide 10: Orders on Hand (by Category)
Orders on Hand (by Category) Order backlogs increased due to recurring revenue projects for cloud services, security, and infrastructure operation services for financial institutions. Million yen ■…System Development ■…Maintenance, In-house products and services, Third-party products and services ■…
Slide 11: Recurring and Spot
Recurring and Spot ■ Sales by Type ■ Orders on Hand (Recurring and Spot) (Recurring and Spot) …Spot …Spot Million yen Million yen …Recurring …Recurring 11,530 21,795 21,187 10,751 1,896 1,588 9,896 18,636 4,829 16,584 2,235 5,158 2,141 13,800 13,995 5,135 11,548 12,073 1,887 2,493 10,974 1,597 1,798
Slide 12: Forecast FY06/25
Financial Results for Q3 FY06/25 2025年6月期for業績予想 Forecast FY06/25 Progress of the Medium-Term Management Plan Reference © INTELLIGENT WAVE INC. All rights reserved. 12
Slide 13: FY06/25 Full-year Forecasts
FY06/25 Full-year Forecasts Million yen FY06/24 FY06/25 Change Actual Forecast [YoY] 1H 2H Full year 1H 2H Full year YoY (full-year) Net sales 6,946 7,572 14,518 7,500 8,500 16,000 ＋10.2% Payment 5,784 6,366 12,151 6,140 6,810 12,950 ＋6.6% Security 757 800 1,558 930 1,170 2,100 ＋34.8% Data communica
Slide 14: FY06/25 Forecasts
FY06/25 Forecasts Although progress is slightly behind forecast due to changes of release date for a large project and revised investment plans from clients, we will work to achieve the plan by steadily executing major projects, accumulating new ones, and improving productivity. Million yen FY06/24(
Slide 15: Progress of the Medium-Term Management Plan
Financial Results for Q3 FY06/25 Forecast for FY06/25 中期事業計画進捗 Progress of the Medium-Term Management Plan Reference © INTELLIGENT WAVE INC. All rights reserved. 15
Slide 16: Medium-Term Management Plan (2025–2027)
Medium-Term Management Plan(2025–2027) We will aim to diversify our business and establish a foundation for sustainable growth, looking ahead to the 2030s. We will also develop our business in various fields, particularly in the payment, security, and technology domains, to bring value to people's l
Slide 17: Basic Policies
Basic Policies To prepare for the market environment of the 2030s, we will focus on three key areas of transformation: "business," "technology," and "human resources," to continue developing products and services that create new levels of reliability. 01 Transformation of Business ①Maximize the valu
Slide 18: Progress of the Medium-Term Management Plan (Payment Domain)
Progress of the Medium-Term Management Plan (Payment Domain) While advancing the maximization of value and productivity in the mainstay areas of FEP and fraud detection, we are also working to enlarge the payment domain and expand system operation services. Maximize value in existing businesses Expa
Slide 19: Progress of the Medium-Term Management Plan
Progress of the Medium-Term Management Plan We will focus on expanding our scale of business in the security and data communication and analysis infrastructure domains. In terms of R&D, we will incorporate cutting-edge technologies such as AI and leverage core technologies to enhance the functionali
Slide 20: Progress of the Medium-Term Management Plan (Security domain)
Progress of the Medium-Term Management Plan (Security domain) By actively participating in the DNP Group’s Security BPO Service, we are working to expand both our customer base and security business area. ■ DNP Group’s Security BPO Service ・Support services that leverage DNP Group’s proprietary secu
Slide 21: Reference
Financial Results for Q3 FY06/25 Forecast for FY06/25 Progress of the Medium-Term Management Plan 参考資料 Reference © INTELLIGENT WAVE INC. All rights reserved. 21
Slide 22: Cost of manufacturing
Cost of manufacturing Million yen FY06/24 FY06/25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Materials cost 10 7 9 5 17 5 6 Labor cost 745 744 737 718 770 747 751 Expenses 569 667 661 780 819 814 790 Subcontracting cost 1,085 1,124 1,163 1,151 1,064 1,032 969 Total manufacturing cost 2,411 2,544 2,571 2,656 2,672 2,60
Slide 23: SG&A expenses
SG&A expenses Million yen FY06/24 FY06/25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Salaries 387 382 381 405 407 428 416 Training and recruiting 24 12 9 35 18 12 12 Equipment and maintenance, etc. 127 108 113 111 108 112 110 Advertising 14 17 16 15 13 14 26 Others 137 137 115 128 127 131 146 Total 691 656 634 694 675
Slide 24: Cash Flows
Cash Flows ＋2,367 Million yen (1,257) (1,045) Purchase of intangible assets (1,072) Income before taxes ＋1,460 Purchase of PP&E (258) D&A ＋978 A/R increase ＋1,349 Dividends (1,044) A/P decrease (965) 4,876 4,813 Income taxes paid (874) JPY 62mil increase 30-Jun-24 Operating Activities Investing Acti
Slide 25: Historical performance
Historical performance 15000 ■… Net sales ■ … Operating income Million yen Transition to TSE prime market 13000 Listing on the 1st Section of TSE 11000 9000 Inclusion into the DNP Group 7000 Listing on the JASDAQ market 5000 3000 1000 1985 86 87 88 89 90 91 92 93 94 95 96 97 98 99 2000 01 02 03 04 0
Slide 26: Reference) Redefinition of Business Domain Classification
Reference) Redefinition of Business Domain Classification We have reorganized our sales by business domain according to the functions we provide. We have also separated the sales of businesses that utilize our core technologies into the area of “data communication and analysis infrastructure,” with
Slide 27: Reference) Sales by Business Domain
Reference) Sales by Business Domain Million yen FY 06/24 Q1 Q2 Q3 Q4 Full year Net sales 3,158 3,787 3,805 3,766 14,518 Payment 2,678 3,106 3,176 3,190 12,151 FEP 1,150 1,342 1,568 1,308 5,370 Fraud detection 385 365 397 548 1,697 Acquiring 672 791 744 851 3,059 Others 470 607 465 482 2,024 Security
Slide 28: FY06/25 Forecasts by Category
FY06/25 Forecasts by Category Million yen FY06/24(actual) FY06/25(forecast) Cumulative Cumulative Q4 YoY Q4 Full year Q1–Q3 (Full year- Full year Q1–Q3 (actual) Q1–Q3 actual) (full-year) Net sales 10,751 3,766 14,518 11,530 4,469 16,000 +10.2％ System development 5,114 1,894 7,009 5,135 2,204 7,340 +
Slide 29: Company overview
Company overview As of December 31,2024 Established December 27, 1984 Location Kayabacho Tower, 1-21-2 Shinkawa, Chuo-ku, Tokyo Employees 487 Parent company Dai Nippon Printing Co., Ltd. [50.73%] Capital stock JPY843.75k Shares 26,340,000 Shareholders 10,432 outstanding Ownership [%] % of shareholde
Slide 30: 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