Tdc Soft Inc. · TSE:4687
Tdc Soft — H1 FY2020 Earnings Presentation
21 slides from Tdc Soft's earnings presentation, Nov 14, 2019
Slide 1: Briefing on Consolidated Financial Results for the Six Months Ended September 30, 2019
FY2020 Briefing on Consolidated Financial Results for the Six Months Ended September 30, 2019 November 14, 2019 TDC SOFT Inc. President and Representative Director Hiroyoshi Kobayashi © 2019 TDC SOFT Inc. 1
Slide 2: Key Points of the Briefing
Key Points of the Briefing Consolidated Financial Results for the Six Months Ended September 30, 2019 ・Increased earnings, driven by strong sales in the financial field ・Progress as planned on initiatives for the next-generation system integration business, etc. Topics ⚫ Started the “Shift to the Sm
Slide 3: Contents
Contents ● Medium-Term Management Plan, Fiscal 2019 Plan ● Overview of Financial Results for the Six Months Ended September 30, 2019 ● Business by Field ● Next-Generation System Integrator ● Full-Year Forecast for the Fiscal Year Ending March 31, 2020 © 2019 TDC SOFT Inc. 3
Slide 4: Medium-Term Management Plan current fiscal year
Management Plan Aim to become a Vision Medium-Term Management Plan current fiscal year Next-Generation System Integrator Pursue high-value-added Advance transformation of the Main strategies system integration services system integration model ・Newly establish DX(*)-driven organization, ・Newly estab
Slide 5: Overview of Consolidated Financial Results
Overview of Consolidated Financial Results Profit Rate of (Unit: \ millions) FY2019 2Q FY2018 2Q ratio change Net sales 13,128 - +7.0% 12,274 Gross profit 2,580 19.7% +0.6% 2,565 Operating profit 1,019 7.8% △8.1% 1,109 Ordinary profit 1,038 7.9% △12.3% 1,183 Profit attributable to owners of parent 6
Slide 6: Net Sales by Field
Net Sales by Field FY2018 2Q FY2019 2Q ¥12,274 million ¥13,128 million 1,151 1,190 （9.4％） （9.1％） 1,868 1,671 （15.2％） （12.7％） 6,553 7,433 2,701 （53.4％） （56.6％） （22.0％） 2,832 （21.6％） Financial IT solutions field Infrastructure and network solutions field Public corporation IT solutions field Package s
Slide 7: Highlights by Field
Highlights by Field Financial IT solutions field (Unit: ¥ millions) 6,506 6,553 7,433 Large-scale system development projects 8000 for the insurance and credit industries 7000 remained solid 6000 Earnings increased 13.4% YoY 5000 2017 2018 2019 Public corporation IT solutions field (Unit: ¥ millions
Slide 8: Highlights by Field
Highlights by Field Infrastructure and network solutions field (Unit: ¥ millions) 1,636 1,868 1,671 IT infrastructure construction projects for 2000 the manufacturing industry remained solid 1500 while the network integration field decreased 1000 500 Earnings decreased 10.5% YoY 2017 2018 2019 Packa
Slide 9: Next-Generation System Integrator
Next-Generation System Integrator Newly establish an organization to build a foundation for sustained growth Digital Technology Headquarters Assemble highly skilled human resources, collaborate with business divisions and use high-value-added businesses such as DX as a driver ・Advancing business in
Slide 10: Priority Strategic Fields I: Agile Business
Priority Strategic Fields I: Agile Business ⚫ Concluded a partnership agreement with Scaled Agile, Inc. of the US, which provides the large-scale agility framework SAFe® and leads the enterprise agile market ⚫ Increased the number of agile technicians to around 50 (of whom 23 are also certified Scru
Slide 11: Priority Strategic Fields II: Security Business
Priority Strategic Fields Ⅱ: Security Business ⚫ Started a business alliance with LTE-X Inc., which has strengths in the network security field, to establish a competitive edge in the local 5G market ahead of the arrival of the full-scale IoT/5G era. Retail Transport Mobility Sports Closed network A
Slide 12: Consolidated Financial Results Forecasts for the Fiscal Year Ending March 31, 2020
Consolidated Financial Results Forecasts for the Fiscal Year Ending March 31, 2020 (Unit: \ millions) FY2019 2Q Profit ratio Rate of change FY2018 2Q Net sales 27,000 - +1.5% 26,590 Operating profit 2,200 8.1% +2.0% 2,157 Ordinary profit 2,250 8.3% +0.1% 2,248 Profit attributable to owners of parent
Slide 13: Details of Financial Results
FY2020 Briefing on Consolidated Financial Results for the Six Months Ended September 30, 2019 Details of Financial Results Kunihiko Adachi, Accounting Department Manager, Executive Director © 2019 TDC SOFT Inc. 13
Slide 14: Contents of Details of Financial Results
目次 ● Statements of Income ● Analysis of Net Sales ● Analysis of Operating Profit ● Balance Sheet ● Statements of Cash Flows © 2019 TDC SOFT Inc. 14
Slide 15: Statements of Income
Statements of Income (Unit: \ millions) FY2019 2Q FY2018 2Q change Net Sales 13,128 12,274 +7.0% Labor costs 4,902 4,623 +6.0% Subcontract expenses 5,589 5,047 +10.7% Other expenses 418 375 +11.4% Work in progress change 361 337 +7.1% Cost of sales 10,548 9,709 +8.6% Gross profit 2,580 2,565 +0.6% S
Slide 16: Overview of Sales by Customer Industry
Overview of Sales by Customer Industry (Unit: ¥ millions) FY2017 2Q FY2018 2Q FY2019 2Q 3,128 2,850 2,673 2,593 2,678 2,4472,382 2,535 2,194 2,249 2,048 1,939 1,324 1,284 1,1581,223 1,211 814 © 2019 TDC SOFT Inc. 16
Slide 17: State of Orders Received/Unfilled Orders
State of Orders Received/Unfilled Orders (Unit: ¥ millions) 13,796 12,937 12,365 Orders received Net sales 11,334 12,247 13,128 6,269 6,498 6,551 Unfilled orders FY2017 2Q 2018年3月期… FY2018 2Q 2019年3月期… FY2019 2Q 2020年3月期… © 2019 TDC SOFT Inc. 17
Slide 18: Analysis of Operating Profit
Analysis of Operating Profit (Unit: ¥ millions) Gross profit up SG&A up -105 ＜Gross profit＞ 1,109 +15 Increased alongside an increase in net sales 1,019 ＜SG&A＞ Increased in conjunction with investments to build a foundation for sustainable growth and to create high- value-added system integration se
Slide 19: Balance Sheet
Balance Sheet Six months ended （Unit：\ million） September 30, 2019 31-Mar-19 Change Total assets 15,740 16,353 -3.7% Current assets 12,597 12,930 -2.6% Non-current assets 3,143 3,422 -8.2% Total liabilities 4,239 4,887 -13.3% Current liabilities 4,053 4,717 -14.1% Non-current liabilities 185 169 +9.
Slide 20: Statements of Cash Flows
Statements of Cash Flows Cash and cash equivalents at 7,816 438 93 beginning of year △391 Profit before income taxes 1,038 7,957 Depreciation and amortization 44 Notes and accounts receivable 925 7 7,816 Notes and accounts payable Inventories △361 Accounts payable △183 Accrued expenses △398 Cash flo
Slide 21: TDC SOFT Inc.
TDC SOFT Inc. https://www.tdc.co.jp / *Cautionary note about these materials This report contains forward-looking statements such as forecasts for the TDC SOFT Group that are based on information available to the Company at this point in time. Actual results may differ significantly from these forec