Densan System Holdings Co. Ltd. · TSE:4072
Densan System — FY2023 Earnings Presentation
24 slides from Densan System's earnings presentation, Oct 28, 2024
Slide 1: Presentation Materials for the FY 2023 Results Briefing
Densan System Holdings Co., Ltd. Presentation Materials for the FY 2023 Results Briefing Tokyo Stock Exchange Prime Nagoya Stock Exchange Premier Securities Code: 4072 Forward-looking statements contained in this document are based on current estimates and projections and include potential risks and
Slide 2: Table of Contents
Table of Contents ▸ FY2023 Business Results Highlights P3 ▸ FY2023 By Segment P5 ▸ FY2023 Transition in Quarterly Business Results P 6 ▸ FY2023 Information Services Summary P7 ▸ FY2023 Information Services in Detail P8 ▸ FY2023 Payment Agency Services Summary P10 ▸ FY2023 Payment Agency Services in
Slide 3: FY 2023 Business Results Highlights
FY 2023 Business Results Highlights Net sales 59.591 billion yen (11.4% ) Operating income 3.964 billion yen (16.1% ) Operating income ratio 6.7 % Net income attributable to shareholders of the parent company 2.004 billion yen (14.7% ) 親会社株式に帰属する純利益 3
Slide 4: Business Results Highlights
FY2023 Business Results Highlights Unit: Million yen ▸ Sales growth in payment agency services was less than expected, and sales plan was not achieved. ▸ Net income was negative y-o-y due to recorded extraordinary losses. ▸ Achieved plan for operating income and ordinary income. ▸ Net sales, operati
Slide 5: By Segment
FY2023 By Segment Unit: Million yen ▸ In information services, cloud services such as Google grew and sales increased but there were unprofitable projects so earnings declined y-o-y. ▸ In payment agency services, the plan was not achieved because of factors such as the termination of contracts with
Slide 6: Transition in Quarterly Business Results
FY2023 Transition in Quarterly Business Results Unit: Million yen ▸ Sales growth in 4Q slowed y-o-y because sales growth due to new large customers who launched operations in payment agency services during 4Q of the previous year has run its course, and because of the reaction to such factors as the
Slide 7: Information Services Summary
FY2023 Information Services Summary Unit: Million yen ▸ In SI and software development, cloud services such as Google, development projects for various business systems, and information security products all performed well, which resulted in a significant growth in sales. ▸ Sales of merchandise and
Slide 8: Information Services in Detail (Google Business)
FY2023 Information Services in Detail (Google Business) ▸ Google Workspace saw steady Net sales Number of Google (Google Workspace) installations growth in both the number of (million yen) (Number of installations) business partners and licenses to recover from the decline in 3Q. Google (Google Work
Slide 9: Information Services in Detail (BPO Business)
FY2023 Information Services in Detail (BPO Business) ▸ Invoice preparation services performed Net sales Number of items processed well. (million yen) (in thousand items) ▸ Sales declined slightly due to the downwards trend in data entry and other printing businesses. FY2021 FY2022 FY2023 9
Slide 10: Payment Agency Services Summary
FY2023 Payment Agency Services Summary Unit: Million yen ▸ Sales of payment and collection agency services increased due to new customer operations, including local governments, but termination of contracts with large customers and the number of public fund collections fell below the planned values
Slide 11: Payment Agency Services in Detail (Payment and Collection / Online Payment)
FY2023 Payment Agency Services in Detail (Payment and Collection Agency Services / Online Payment Services) ▸ The number of items processed Number of items processed continued to decrease y-o-y due to the (in thousand items) termination of contracts with some large business partners, but 4Q figures
Slide 12: Payment Agency Services in Detail (Remittance / Peripheral Services)
FY2023 Payment Agency Services in Detail (Remittance Services / Payment Agency Peripheral Services) Number of items processed (in thousand items) ▸ International remittances continued to International remittance Domestic remittance be weak, impacted by the weak yen and stricter regulations. ▸ Domest
Slide 13: Topics: TREE PAYMENT Evolution
FY2023 Topics ▸ Evolution for "TREE PAYMENT," a payment service platform (Densan System) • Participated in "Imachalle" to resolve payment collection issues in school club activity reform program with TREE PAYMENT Business negotiations became more active with both nationwide local governments and the
Slide 14: Topics: New Payment Platform PayLabo
FY2023 Topics ▸ New payment platform "PayLabo" news release Announcing the start of providing a latest digital payment infrastructure from 2024 Merchants Online One-stop payment solution ordering Cart ASP Modern digital payment Convenience store Credit card payment Barcode payment payment Telephone
Slide 15: Topics / Impact of Social Conditions
FY2023 Topics / Impact of Social Conditions Information service segment There is now less impact due to COVID-19, the situation in Ukraine, and the exchange rate (weak yen). However, the impact of high prices and rise in personnel expenses will continue to increase from now on so it will be very cha
Slide 16: FY2024 Business Results Projections
FY2024 Business Results Projections Unit: Million yen ▸ Net sales is planned for 10% or more increase. ▸ Operating income and ordinary income are expected to slow down while the income ratio is expected to fall slightly against an increase in sales. ▸ Net income is planned to increase significantly
Slide 17: FY2024 Information Services Results Projection
FY2024 Information Services Results Projection Unit: Million yen ▸ Market need for the use of cloud, AI and IoT is high. ▸ Operating income is expected to significantly increase because there will no longer be any impact from unprofitable projects in the current fiscal year. ▸ Investment in new serv
Slide 18: FY2024 Payment Agency Services Results Projection
FY2024 Payment Agency Services Results Projection Unit: Million yen ▸ Sales growth rate is expected to be higher than the current fiscal year due to factors such as the launch of the new service PayLabo and features added to TREE PAYMENT. ▸ Operating income is expected to decrease due to increased c
Slide 19: Medium-Term Plan FY2024 to FY2026
Medium-Term Plan FY2024 to FY2026 Unit: Million yen ▸ Aim for sales increase of 10% or more each fiscal year. ▸ Improve the income ratio each fiscal year. ▸ Create new value and aim to grow the plan to higher levels. Growth rate FY2023 FY2024 FY2025 FY2026 YoY Actual Plan Plan Plan Average Net sales
Slide 20: Medium-Term Plan FY2024 to FY2026: Strategy
Medium-Term Plan FY2024 to FY2026 Transforming into a value creator for the realization of a sustainable society DSK Transformation → From contracted development to packaged services Be a co-creation partner that shares customer issues and considers ways to resolve them together with the customer in
Slide 21: Long-Term Plan: Challenge 1000
Long-Term Plan December 2021 to December 2027 Challenge 1000 2027年 Net sales 1000 billion yen Taking on the challenge to become a company with Information service ¥100 billion in net sales by 2027! ・BPO services ・Software development, operation, and maintenance services ・Medical services 2021 The co
Slide 22: Dividends
Dividends ▸ FY2023: Annual ordinary dividend of ¥37 per share (interim dividend of ¥18 and year-end dividend of ¥19) ▸ FY2024 plan: Annual ordinary dividend of ¥40 per share (interim dividend of ¥20 and year-end dividend of ¥20) Commemorative dividend for Interim Year-end the transition to a holding
Slide 23: Response to Achieve Management with Awareness of Capital Cost and Stock Price
Response to Achieve Management with Awareness of Capital Cost and Stock Price We will aim to further strengthen profitability while also steadily implementing measures to improve capital cost, including timely and appropriate disclosure of information as well as financial and capital policies. We wi
Slide 24: Sustainability Policy
Sustainability Policy Create new innovations through sustainability • We will create new value from social issues. (An exciting future) • We value the many bonds between people, and will promote open innovation. ▸ Promote diversity ▸ Health management ▸ Initiatives for human capital ▸ Contribute to
Densan System Holdings — FY2023 Earnings Presentation on 6ix