Dentsu Soken Inc. · TSE:4812

Dentsu Soken — Q3 FY2025 Earnings Presentation

20 slides from Dentsu Soken's earnings presentation, Oct 30, 2025

  1. Slide 1: Dentsu Soken Inc. Financial Results, October 30, 2025

    Note: This English translation is solely for reference purposes and not a legally definitive translation of the original Japanese text. In the event a difference arises regarding the meaning herein, the original Japanese version will prevail as the official authoritative version. DENTSU SOKEN INC. Octob

  2. Slide 2: Index

    INDEX • The business classifications under the reportable segments have been changed from the fiscal year ending December 31, 2025. As a result, the results for the previous fiscal year are compared and analyzed with the figures reclassified into the new classification. 2

  3. Slide 3: Outline of Financial Results for Q3 FY12/2025

    | O01 Outline of Financial Results for Q3 FY12/2025

  4. Slide 4: Net sales, Operating profit, Orders, Expected progress

    Net sales, Net sales increased by +7.9%, mainly in Business Solutions and Communication IT. Operating Operating profit increased by +12.5% despite the increase in R&D expenses and goodwill profit amortization expenses associated with M&A. Record high for the third quarter. Orders received +12.8%, orde

  5. Slide 5: 9M FY12/2025 YoY

    (Millions of yen) Progress rate (%) YoY for the full year*² 9M FY12/2025 9M 9M 9M Variance % change FY12/2024 FY12/2025 FY12/2024 Net sales 121,151 112,231 +8,920 +7.9 72.1 73.5 Gross profit 43,801 40,424 +3,377 +8.4 - - Gross profit margin (%) 36.2 36.0 +0.2p - - - Selling, general and administrative

  6. Slide 6: Operating profit increase factors, 9M

     Although SG&A expenses increased, operating profit increased mainly due to the effect of increased sales.  The gross profit margin improved due to the conclusion of unprofitable projects in the previous fiscal year, although there was an increase in costs due to the retirement of intangible assets. Im

  7. Slide 7: Non-operating income and expenses, extraordinary items

     Non-operating income and expenses: Improvement mainly due to an increase in interest income due to rising interest rates  Extraordinary income and losses: Impact of recording gains on sale of investment securities as extraordinary income in the same period of the previous year (Millions of yen) Y

  8. Slide 8: Results by reportable segment, 9M

    (Millions of yen) 9M YoY FY12/2025 Variance % change Overview Net sales 25,240 -352 -1.4 Net sales and operating profit decreased due to a decline in third-party software add-on development projects for the Operating Financial Solutions profit 3,068 -175 -5.4 accounting area, despite an increase in cu

  9. Slide 9: Q3 FY12/2025 YoY

    (Millions of yen) YoY Q3 FY12/2025 Q3 Variance % change FY12/2024 Net sales 40,912 37,995 +2,917 +7.7 Gross profit 15,015 13,348 +1,667 +12.5 Gross profit margin (%) 36.7 35.1 +1.6p - Selling, general and administrative expenses 9,400 9,245 +155 +1.7 Operating profit 5,615 4,103 +1,512 +36.9 Operating

  10. Slide 10: Operating profit increase factors, Q3

     Operating profit increased due to increased sales and gross profit margin.  The increase in gross profit margin was due to the conclusion of unprofitable projects in the previous fiscal year, as well as improved profitability of custom system development and in-house software. (Billions of yen) YoY Imp

  11. Slide 11: Q3 FY12/2025 segment and service category results

    (Millions of yen) (Millions of yen) Q3 YoY Q3 YoY Service Category FY12/2025 Variance % change FY12/2025 Variance % change Net sales 8,884 +470 +5.6 Financial Operating Consulting Services 2,508 -201 -7.4 Solutions profit 1,163 +119 +11.4 % 13.1 +0.7p - Custom System Development 8,912 +1,323 +17.4 Ne

  12. Slide 12: Service category 9M FY12/2025

    (Millions of yen) 9M YoY Service category FY12/2025 Variance % change Consulting Services 8,120 +648 +8.7 Custom System Development 25,381 +2,765 +12.2 In-house Software 24,482 +2,388 +10.8 Third-party Software 40,425 -141 -0.3 Outsourcing, Operation and Maintenance Services 15,479 +2,077 +15.5 IT E

  13. Slide 13: Net sales by industry composition

    (Millions of yen) 9M FY12/2025 YoY Industry Composition Net sales Variance % change ratio (%) Banks 18,107 14.9 +1,090 +6.4 Other financial institutions 7,031 5.8 +462 +7.0 Financial 25,138 20.7 +1,552 +6.6 Transportation equipment 22,509 18.6 +2,481 +12.4 Electric appliances, Precision instruments 1

  14. Slide 14: Orders received and order backlog

     In the third quarter (July-September), orders received increased significantly due to the expansion of custom system development for the banking industry and third-party software focused on the ALM* area of Manufacturing Solutions. (Millions of yen) Orders received Order backlog Q3 YoY 9M YoY End o

  15. Slide 15: Forecast for FY2025

    | O02 Forecast for FY2025 15

  16. Slide 16: Full-year forecast unchanged from July 30, 2025

     There is no change from the forecast announced on July 30, 2025. (Millions of yen) FY12/2025 YoY (Announced on July 30, 2025) FY12/2024 Variance % change Net sales 168,000 152,642 +15,358 +10.1 Gross profit 61,200 56,123 +5,077 +9.0 Gross profit margin (%) 36.4 36.8 -0.4p - Selling, general and admi

  17. Slide 17: Forecast by reportable segment and service category

     There is no change from the forecast announced on July 30, 2025. (Millions of yen) (Millions of yen) FY12/2025 YoY FY12/2025 YoY Reportable Segment (Announced on Service Category (Announced on July 30, 2025) Variance % change July 30, 2025) Variance % change Financial Solutions 36,000 +1,950 +5.7

  18. Slide 18: Implied Q4 FY12/2025 forecast

     The figures for the fourth quarter fiscal period, minus the 9M results from the full-year forecast, are as follows. (Millions of yen) YoY Q4 FY12/2025 forecast Q4 FY12/2024 Variance % change Net sales 46,848 40,411 +6,437 +15.9 Gross profit 17,398 15,698 +1,700 +10.8 Gross profit margin (%) 37.1 38.8

  19. Slide 19: Q4 forecast by segment and service category

    (Millions of yen) (Millions of yen) Q4 YoY Q4 YoY Reportable Segment FY12/2025 Service Category FY12/2025 forecast Variance % change forecast Variance % change Financial Solutions 10,759 +2,301 +27.2 Consulting Services 3,879 +872 +29.0 Custom System Business Solutions 6,682 +427 +6.8 Development 8,

  20. Slide 20: Investor Relations contact

    For further information, please contact: DENTSU SOKEN INC. https://www.dentsusoken.com/english/ir Executive Office g-ir@group.dentsusoken.com Investor Relations +81-3-6713-6160

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