Slide 1: Financial Results for FY06/23
Financial Results for FY06/23 (July 1, 2022 to June 30, 2023) [Non-Consolidated] Intelligent Wave Inc. Announced on August 4, 2023 Copyright © 2023, INTELLIGENT WAVE INC. All rights reserved.
Slide 2: Financial Results for FY06/23
Financial Results for FY06/23 Forecasts for FY06/24 Key Initiatives in FY06/24 References Copyright © 2023, INTELLIGENT WAVE INC. All rights reserved. 2
Slide 3: Overview (1/2)
Overview (1/2) Both sales and profits reached record highs. Operating income attained its highest level in 20 years and increased for the fifth consecutive year. Gross profit rose 15.4% YoY, largely in line with targets, while SG&A expenses rose due to unplanned investments in personnel and other fa
Slide 4: Overview (2/2)
Overview (2/2) Sales grew substantially. Operating income reached its highest level for the past 20 years and increased for the fifth consecutive year. Recurring revenue, which we have been focusing on, increased significantly, and recurring revenue now accounts for almost 50% of net sales. Million
Slide 5: Quarterly Sales and Earnings Performance
Quarterly Sales and Earnings Performance Centering on system development and cloud services, we are moving toward a structure capable of generating a steady ¥1 billion in sales each month. Net sales Operating income Million yen Million yen ■…FY06/22 ■…FY06/23 ■ …FY06/22 ■ …FY06/23 4,000 3,658 600 57
Slide 6: Sales by Category
Sales by Category Sales increased significantly in the categories of system development (within the payment & finance business) and in the cloud services business. Sales rose firmly in the maintenance category, as well as for hardware renewal and security business. Million yen FY06/22 FY06/23 Change
Slide 7: Sales by Business Domain
Sales by Business Domain In terms of business domain, net sales increased due to large-scale projects for developing systems for credit card companies, cloud services, and FEP system renewal. Million yen FY06/22 FY06/23 Change(YoY） Net sales 11,493 13,374 +1,881 +16.4% Payment & Finance 9,229 10,408
Slide 8: Top Three Clients by Sales
Top Three Clients by Sales Security and payment system development led to higher sales from DNP. In addition, sales from system integrators increased due to FEP system renewal and large-scale system development projects. Million yen FY06/22 FY06/23 Change Main projects Tokenization Service system (f
Slide 9: Operating income
Operating income Gross profit increased 15.4% from the previous year, almost in line with the target, while selling, general and administrative (SG&A) expenses rose due to personnel investments, including increases in wages, office environment improvement, and IT investment. However, we achieved our
Slide 10: SG&A Expenses
SG&A Expenses These expenses included unplanned growth in capital investment in human resources, including base pay increases and personnel system reforms, office floor space expansion, roaming IP addresses, maintenance of office environments such as thin client terminals, and IT investments such as
Slide 11: Amount of orders
Amount of orders Orders for cloud services and security increased steadily, while orders for payment and financial hardware declined. ■…Payment & Finance (System Development) ■…Payment & Finance (Maintenance, Hardware, etc.) 5,421 Million yen ■…Cloud Services ■…Security 286 18,000 4,686 15,722 228 1
Slide 12: Orders on Hand
Orders on Hand Orders on hand reached a new high, driven primarily by an increase in cloud services. ■…Payment & Finance (System Development) ■…Payment & Finance (Maintenance, Hardware, etc.) ■…Cloud Services ■…Security ●…the ratio of stock-type Million yen 11,548 88.1% 10,974 12,000 69.7% 605 10,97
Slide 13: Cloud Service Business
Cloud Service Business Net sales increased significantly, driven by a rise from 13 to 27 user companies over the past two years. The number of users for IFINDS, our fraud detection service, and IGATES, our network connection and switching service, have grown recently. The rising number of users for
Slide 14: Orders for Cloud Services
Orders for Cloud Services In the credit card industry, demand for fraud detection is growing rapidly, and the move to cloud services is accelerating for system modernization and cost-effectiveness. As a result, orders for cloud services increased significantly. FY06/23 Results Million yen Amount of
Slide 15: Forecasts for FY06/24
Financial Results for FY06/23 Forecasts for FY06/24 Key Initiatives in FY06/24 References Copyright © 2023, INTELLIGENT WAVE INC. All rights reserved. 15
Slide 16: FY06/24 Forecasts
FY06/24 Forecasts Million yen FY06/23 FY06/24 Change Actual Forecast (full year) 1H 2H Full year 1H 2H Full year YoY Net sale 6,789 6,585 13,374 7,000 8,000 15,000 ＋12.2% Payment & Finance 5,393 5,015 10,408 5,160 5,840 11,000 ＋5.7% Cloud Services 881 985 1,867 1,190 1,310 2,500 ＋33.9% Security 514
Slide 17: Shareholder Returns
Shareholder Returns Plans to pay a year-end dividend of 20 yen per share for the fiscal year endes June 30, 2023, an increase of 3 yen from the previous year, as planned at the beginning of the fiscal year. From the fiscal year ending June 2024, we changed our dividend payout ratio policy from 40% t
Slide 18: Key Initiatives in FY06/24
Financial Results for FY06/23 Forecasts for FY06/24 Key Initiatives in FY06/24 References Copyright © 2023, INTELLIGENT WAVE INC. All rights reserved. 18
Slide 19: Card Fraud Detection Service / Cutting-Edge Initiatives
Card Fraud Detection Service / Cutting-Edge Initiatives In November 2022, we announced a platform for credit card fraud prevention. We are gradually rolling out new services to establish a cross-industry fraud prevention scheme that encompasses merchants and payment service providers. ■Overall flow
Slide 20: Expanding Payment Business Domain
Expanding Payment Business Domain The credit card industry is rapidly promoting the adoption of cloud technology among vendors to modernize system infrastructures and enhance cost-effectiveness. We aim to expand our domain by utilizing products and services that have a significant market share in Ja
Slide 21: Expanding the Security Business Domain / Cloud Service
Expanding the Security Business Domain / Cloud Service Based on a product that was initially deployed mainly for major companies and infrastructure firms, our security cloud service has now been launched to serve businesses of all sizes and across various industries and sectors. In addition, we aim
Slide 22: Promotion of Human Capital Management
Promotion of Human Capital Management Deepen the relationship between business strategy and human capital strategy and form a human capital base and co- creation base for the next generation's growth. In April 2023, established the Human Capital Management Office Note: For more details, please visit
Slide 23: Sustainability Activities
Sustainability Activities We aim to enhance the reliability of our business to contribute to a sustainable society. In May 2023, we identified our material issues Note: For more details, please visit our corporate website. Recent activities Creating an environmentally Creating a society where people
Slide 24: References
Financial Results for FY06/23 Forecasts for FY06/24 Key Initiatives in FY06/24 References Copyright © 2023, INTELLIGENT WAVE INC. All rights reserved. 24
Slide 25: Cost of Manufacturing
Cost of Manufacturing Thousand yen FY06/22 FY06/23 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Materials cost 7,194 8,162 11,264 10,943 21,857 6,582 13,961 9,590 Labor cost 718,848 734,397 714,332 724,102 731,531 737,858 696,398 721,495 Expenses 431,898 413,397 403,356 501,360 486,571 517,615 512,983 519,957 Subcontrac
Slide 26: SG&A Expenses
SG&A Expenses Thousand yen FY06/22 FY06/23 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Salaries 290,810 310,527 335,648 361,087 384,909 388,481 372,704 417,413 Training and recruiting 10,332 13,989 24,046 24,878 14,951 22,121 18,514 23,196 Rent 18,793 18,328 16,822 17,320 24,509 25,362 24,550 28,884 Advertising 12,691
Slide 27: Cash Flows
Cash Flows Million yen ＋3,122 (1,913) (448) Income before taxes ＋1,603 Purchase of intangible (1,415) D&A ＋970 assets A/R decrease ＋1,180 Purchase of PP&E (577) A/P decrease (519) Income taxes paid (534) Dividends △446 3,932 4,694 JPY 761 mil increase 30-Jun-22 Operating activities Investing activit
Slide 28: Historical Performance
Historical Performance Million yen ■…Net sales ■ …Operating income 13,374 11,493 11,187 10,603 10,920 10,443 8,469 7,137 7,205 6,695 6,558 6,367 6,160 5,891 5,870 5,505 5,527 5,257 5,241 4,844 5,174 4,956 4,762 1,854 1,528 1,482 1,519 1,556 1,177 1,036 1,130 731 702 921 678 484 547 371 389 417 228 3
Slide 29: Reference: FY06/22 Sales by Category
Reference: FY06/22 Sales by Category Results from the previous fiscal year are categorized according to FY06/23 standards. Million yen FY06/23 Q3 Q1 1H Full year Cumulative Net sales 2,251 4,887 7,834 11,493 Payment & Finance 1,787 3,915 6,284 9,229 System Development 1,082 2,369 3,642 5,089 Mainten
Slide 30: Reference: Our Cloud Services
Reference: Our Cloud Services ・SaaS product to provide an operation system and support customers launch acquiring businesses ■IOASIS ・Offers 24/7 system operation ■IPRETS ・Point management system that grants points at the time of payment, etc. ・Provides 24/7 non-stop switching operation for payment
Slide 31: Company overview
Company overview As of June, 30 2023 Established December 27, 1984 Location Kayabacho Tower, 1-21-2 Shinkawa, Chuo-ku, Tokyo Employees 476 Parent company Dai Nippon Printing Co., Ltd. (50.73%) Capital stock JPY843.75k Shares 26,340,000 Shareholders 9,406 outstanding Ownership (%) % of shareholders I
Slide 32: Management Planning Office 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