Slide 1: Financial Results for FY06/24
Financial Results for FY06/24 (July 1, 2023 to June 30, 2024) [Non-Consolidated] Intelligent Wave Inc. Announced on August 9, 2024 Copyright © 2024, INTELLIGENT WAVE INC. All rights reserved.
Slide 2: Financial Results for FY06/24
Financial Results for FY06/24 Forecast for FY06/25 Reference Copyright © 2024, INTELLIGENT WAVE INC. All rights reserved. 2
Slide 3: Overview
Overview Both sales and profits increased from the previous year, with growth in systems development, cloud services and security, and both sales and profits reached record highs. On the other hand, both sales and profits fell just short of the initial plan. Sales in existing fields exceeded the ini
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 FY06/23 FY06/24 Change(YoY) Net sales 13,374 14,518 +1,144 +8.6% Paymen
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 acquiring system for a major credit card company. FEP and fraud detection declined due to large-scale hardware sales in the previous year. Security grew in the current financial year due
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 Change FY06/
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. …Spot Million yen ※ 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) remained at the same level as in the previous fiscal year due to cost optimisation efforts, and operating profit increased signi
Slide 9: Cloud Service Business
Cloud Service Business Net sales increased YoY due to an expanded user base (five companies in total), mainly due to the fraud detection service IFINDS. Profits increased YoY due to higher sales and changes in the service composition ratio. Orders received increased YoY, due to large IGATES projects
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. Cloud services increased due to a large-scale project. In Security, orders grew in existing security pr
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 FY06/25
Financial Results for FY06/24 Forecast for FY06/25 Reference Copyright © 2024, INTELLIGENT WAVE INC. All rights reserved. 12
Slide 13: FY06/25 Full-year Forecasts
FY06/25 Full-year Forecasts Sales are expected to increase due to higher sales of cloud services and the introduction of products to a major company in the security domain. In terms of profits, we will work to strengthen our profit base as we diversify our business. Million yen FY06/24 FY06/25 Chang
Slide 14: FY06/25 Forecasts (Business Domain)
FY06/25 Forecasts (Business Domain) Sales are expected to increase due to increased sales from cloud services for FEP and fraud detection, and the introduction of products to a major company in security domain. Million yen FY 06/24 FY06/25 Change Actual Forecast （YoY) １H 2H Full year １H 2H Full year
Slide 15: FY06/25 Forecasts (Category)
FY06/25 Forecasts (Category) Sales are expected to increase in cloud services and security. Hardware sales are expected to decrease. Million yen FY 06/24 FY06/25 Change Actual Forecast （YoY) １H 2H Full year １H 2H Full year Net sales 6,946 7,572 14,518 7,500 8,500 16,000 +1,482 System development 3,4
Slide 16: Shareholder Returns
Shareholder Returns The year-end dividend for FY2024 will be 25 yen per share (including a commemorative dividend of 10 yen), as forecast at the beginning of the year. Including the interim dividend of 15 yen per share already paid, the annual dividend will be 40 yen per share, an increase of 20 yen
Slide 17: Reference
Financial Results for FY06/24 Forecast for FY06/25 Reference Copyright © 2024, INTELLIGENT WAVE INC. All rights reserved. 17
Slide 18: 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 5 Labor cost 731 737 696 721 745 744 737 718 Expenses 486 517 512 519 569 667 661 780 Subcontracting cost 892 911 929 1,047 1,085 1,124 1,163 1,151 Total manufacturing cost 2,132 2,173 2,152 2,2
Slide 19: SG&A expenses
SG&A expenses Million yen FY06/23 FY06/24 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Salaries 384 388 372 417 387 382 381 405 Training and recruiting 14 22 18 23 24 12 9 35 Equipment and maintenance, etc. 120 118 125 133 127 108 113 111 Advertising 9 13 20 17 14 17 16 15 Others 124 124 132 138 139 137 115 128 Total 65
Slide 20: Cash Flows
Cash Flows ＋3,813 Million yen (2,681) (1,018) Purchase of intangible assets (2,031) Purchase of PP&E (576) Income before taxes +2,072 D&A +1,142 A/R decrease +1,721 Dividends (400) (917) A/P decrease Purchase of (541) (99) Income taxes paid 4,694 treasury shares 4,813 (BBT) JPY 118mil increase 30-Ju
Slide 21: 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 22: Company overview
Company overview As of June 30,2024 Established December 27, 1984 Location Kayabacho Tower, 1-21-2 Shinkawa, Chuo-ku, Tokyo Employees 492 Parent company Dai Nippon Printing Co., Ltd. (50.73%) Capital stock JPY843.75k Shares 26,340,000 Shareholders 10,432 outstanding Ownership (%) % of shareholders I
Slide 23: 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