Dts Corporation · TSE:9682
Dts — Q2 FY March 2019 Earnings Presentation
29 slides from Dts's earnings presentation, Nov 2, 2018
Slide 1: 2Q FY March 2019 Results Presentation
2Q FY March 2019 Results Presentation November 2, 2018
Slide 2: Contents
Contents 1 Overview of 2Q FY 19/3 Results 2 Progress of Key Initiatives 3 FY 19/3 Full Year Forecast Caution Sales and income forecasts included in this document are based on assumptions made on the basis of information currently available, including business trends, economic circumstances, clients’
Slide 3: 1. Overview of 2Q FY 19/3 Results
1. Overview of 2Q FY 19/3 Results 3
Slide 4: Important Events
Important Events 1. Absorption-type merger of DATALINKS Executed an absorption-type merger of DATALINKS CORPORATION on October 1, 2018 with the aim of improving management efficiency and speeding up decision-making by expanding business synergies and making more efficient use of resources. 2. Treasu
Slide 5: Consolidated Results
Consolidated Results Net sales increased ¥730 million year on year. The expansion of projects in the information and communication business, transportation and postal business and embedded business (in-vehicle), among others, covered the decline in integration projects. Operating income increased ¥5
Slide 6: Non-Consolidated Results
Non-Consolidated Results Net sales increased ¥250 million year on year. The expansion of projects in insurance, megabanks, transportation and other wide variety types of industries covered the decline in integration projects. Operating income decreased ¥140 million year on year, mainly due to the st
Slide 7: Changes in Net Sales [Non-Consolidated/Group Companies]
Changes in Net Sales [Non-Consolidated/Group Companies] Due to the strong performance of projects of embedded business, etc., net sales of the entire group companies increased ¥480 million, or 3.8%, year on year, exceeding the non-consolidated growth (DTS) for the second consecutive year. Non-consol
Slide 8: Change in Operating Income [Non-Consolidated/Group Companies]
Change in Operating Income [Non-Consolidated/Group Companies] Operating income of the group companies for the second quarter of the fiscal year ending March 31, 2019 increased ¥720 million year on year, driving an increase in consolidated operating income. Non-consolidated operating income Operating
Slide 9: Net Sales by Segments
Net Sales by Segments - Sales in the finance and public segments decreased, despite growth in projects for megabanks and life insurance companies, which were unable to cover the decrease in integration projects. - Sales rose in the corporate communication solutions segment, while projects in the inf
Slide 10: Consolidated Sales by End User
Consolidated Sales by End User - Sales in the finance and insurance business declined due to the effect of integration projects. However, sales from life insurance and other users increased steadily. - Sales rose in the information business increased, due to the expansion of projects for information
Slide 11: Reason for an Increase in Consolidated Operating Income
Reason for an Increase in Consolidated Operating Income Improvement in the cost ratio after growing profitability in the embedded business covered the negative results due to an increase in unprofitable projects. Operating income surged ¥580 million, or 15.1% year on year, to hit a record high. (100
Slide 12: Order Volume and Order Backlog by Segments
Order Volume and Order Backlog by Segments [Order Backlogs] - The order backlog in the finance and public segment increased due to the acquisition of large-scale projects for securities companies and the expansion of projects for life insurance companies and megabanks, which covered the decrease in
Slide 13: 2. Progress of Key Initiatives
2. Progress of Key Initiatives 13
Slide 14: Medium-Term Management Plan: Key Activities in FY March 2019
Key Activities in the Fiscal Year Ending March 2019 We are focusing on the three key activities to achieve further growth in the future, in accordance with the Medium-Term Management Plan. Evolving into Transformation into Two policies Management Plan System integrator an autonomous organization Med
Slide 15: Progress with Implementation of Priority Initiatives
Progress with Implementation of Priority Initiatives 1. Strengthening sales capabilities and systems integration capabilities - The Company has continued to implement its "Plus One Strategy" and "BiG8 Strategy" in order to build a robust customer base. - In order to respond widely to customer needs
Slide 16: Efforts for Strengthening Sales Capabilities and SI Capabilities (1)
( Reference 1) Efforts for Strengthening Sales Capabilities and SI Capabilities (1) To strengthen its customer base, the Company has focused on two activities. The Plus One Strategy aims to achieve the acquisition of new leading companies in the finance and insurance industries. The Big8 Strategy is
Slide 17: Efforts for Strengthening Sales Capabilities and SI Capabilities (1)
(Reference 1) Efforts for Strengthening Sales Capabilities and SI Capabilities (1) The Company has established the SI Promotion Division in the Sales Sector and has promoted cooperation among the business divisions and the group companies. As a result, it is expected to secure orders for large-scale
Slide 18: Focus on new businesses (1)
(Reference 2) Focus on new businesses (1) The DTS Group focuses on activities for CAMBRIC. In RPA, projects in the finance and insurance industries for improved business efficiency are expanding, among others. In addition, DTS and JAPAN SYSTEM ENGINEERING (JSE) are proceeding with consideration towa
Slide 19: Focus on new businesses (2)
(Reference 2) Focus on new businesses (2) DTS has made progress in developing money laundering countermeasure solutions and has been working on sales, particularly to virtual currency exchanges, to acquire new customers. DTS and Nelito held joint exhibits at SIBOS 2018 and ASOCIO Digital Masters Sum
Slide 20: Focus on new businesses (3)
(Reference 2) Focus on new businesses (3) In September 2018, sales of Walk in home, which underwent a refresh involving significant updates to functionality, commenced. Due to the refresh, “significant increase in processing speeds due to reform of the system infrastructure,” “addition of the real s
Slide 21: Strengthening of the Group's management foundation (1)
(Reference 3) Strengthening of the Group’s management foundation (1) In October 2018, DTS CORPORATION absorbed DATALINKS CORPORATION. By streamlining management and accelerating decision-making, the Company will proceed with the expansion of business synergies and the efficient use of resources, and
Slide 22: Strengthening of the Group's management foundation (2)
(Reference 3) Strengthening of the Group’s management foundation (2) DTS commenced the trial operation of a staggered working hours system with the aim of enabling work- style reforms from April 2018. It is considering the expansion of the organizations to which the said system is applied and the op
Slide 23: 3. FY 19/3 Full Year Forecast
3. FY 19/3 Full Year Forecast 23
Slide 24: Outlook for the Group's Business Environment
Outlook for the Group’s Business Environment The business performance of domestic companies will be strong. IT investment is also expected to be steady. Investment in the projects related to productivity improvement and workstyle reforms for the purpose of the resolution of labor shortages and IT in
Slide 25: Full-Year Forecast for FY 19/3 [Consolidated]
Full-Year Forecast for FY 19/3[Consolidated] Aim to increase sales by ¥3.83 billion year on year, with the growth rate exceeding 4%. Aim to increase operating income by ¥170million year on year, achieving growth of both sales and income and recording high figures for the second consecutive year. Wit
Slide 26: FY 19/3 Dividend
FY 19/3 Dividend The dividend at the end of the second quarter is ¥35 per share as initially planned. For the full year, the Company plans to pay a dividend of ¥80 per share as initially planned. We will continue paying stable dividends and aim for a total return ratio of 40% or more. Total return P
Slide 27: Other References
Other References 27
Slide 28: (Reference 4) Major Press Releases
(Reference 4) Major Press Releases Date of Company Title, brief description release June 18 DTS Notice concerning the status and completion of acquisition of treasury shares * Total number of shares acquired: 134,700 shares; total acquisition cost: ¥599,717,000; period: May 14 – June 15, 2018 August
Slide 29: Thank you for your attention.
2Q FY 19/3 Results Presentation Thank you for your attention. http://www.dts.co.jp/