Tsuzuki Denki Co., Ltd. · TSE:8157
Tsuzuki Denki — FY2025 Earnings Presentation
30 slides from Tsuzuki Denki's earnings presentation, May 26, 2025
Slide 1: Financial Results for the Fiscal Year Ended March 31, 2025
Financial Results for the Fiscal Year Ended March 31, 2025 May 26, 2025 Tsuzuki Denki Co., Ltd. Copyright © 2025 Tsuzuki Denki Co., Ltd.
Slide 2: FY03/25 Earnings Announcement Highlights
FY03/25 Earnings Announcement Highlights ◆ Operating income reached a record high for the third consecutive year. Achieved most of our medium-term management plan targets one year ahead of schedule. FY03/25 Despite the sales downturn resulting from the sale of the Electronic Devices business, Result
Slide 3: Agenda
01 Summary of Financial Results for the Fiscal Year Ended March 31, 2025 02 Progress of Transformation 2026 03 Earnings Forecast for the Fiscal Year Ending March 31, 2026 2 © 2025 都築電気株式会社
Slide 4: Consolidated Results
Consolidated Results ◼ Net sales declined YoY due to a reactionary drop following the large-scale special demand recorded in the previous fiscal year ◼ Operating income reached a record high for the third consecutive year, driven by successful pricing management, productivity improvements, and lower
Slide 5: Factors Affecting Operating Income
Factors Affecting Operating Income ■Negative Sales decline (-JPY944mn) : Downturn in equipment business sales (absence of special demand seen in FY03/24) Unprofitable projects (-JPY148mn) : Two unprofitable projects handled in Q3 ■Positive Cost ratio improvement (+JPY1,041mn) : Increased sales and c
Slide 6: Business Performance
Business Performance Sales and operating income both reached record high levels ■Net sales ： Excluding the special demand in FY03/24, results reached a record high—exceeding even the levels seen during the previous medium-term management plan ■Operating income ： Steady growth was driven by an improv
Slide 7: Results by Business Model
Results by Business Model Orders exceeded the previous fiscal year across all business models ■Equipment ： Orders were up YoY due to the growth of mobile work systems for Customers in the Financial Services and Construction Industries, but sales declined due to the absence of large-scale, one-time d
Slide 8: Progress of Transformation 2026
01 Summary of Financial Results for the Fiscal Year Ended March 31, 2025 02 Progress of Transformation 2026 03 Earnings Forecast for the Fiscal Year Ending March 31, 2026 7 Copyright © 2025 Tsuzuki Denki Co., Ltd.
Slide 9: Positioning of the Medium-term Management Plan
Positioning of the Medium-term Management Plan First stage: Shift resources and put growing businesses on track to achieve our long-term vision 1st Stage 2nd Stage 3rd Stage 100th Anniversary Growth Navigator Operating income: JPY10.0bn Shift resources Scale growth areas Make growth areas into to gr
Slide 10: Overview of the Medium-term Management Plan
Overview of the Medium-term Management Plan Revised FY03/26 targets Net sales： Raised the initial target of JPY102.2bn for the Information Network Solutions business Operating income：Operating income was revised upward as the effects of the medium-term management plan measures such as pricing manage
Slide 11: Long-Term Performance Trends
Long-Term Performance Trends Improved capital efficiency in addition to profit growth due to increased sales ◼ Net sales: Continued on an upward trend, driven by initiatives in growth areas such as cloud-based contact centers and the successful capture of rising ICT demand ◼ Operating income: Contin
Slide 12: Summary of Progress of the Medium-Term Management Plan
Summary of Progress of the Medium-Term Management Plan The initial plan is progressing smoothly. The shift to growth areas and improved profitability in existing areas have steadily produced results • Six growth areas: Growth driven primarily by contact centers and security; OT* security was newly a
Slide 13: Progress of Business Strategy: (1) Expand the six growth areas
Progress of Business Strategy: (1) Expand the six growth areas Cloud communications declined YoY due to a reactionary drop following large-scale projects, but contact centers and security performed strongly In FY03/26, plan to increase sales through the release of new services and collaboration with
Slide 14: Strengthened the Six Growth Areas (Launched the OT Security & Network Package)
Strengthened the Six Growth Areas (Launched the OT Security & Network Package) Launched a new service, the OT Security & Network Package, in the OT security field, which is expected to see strong market growth Providing comprehensive services—including diagnostics and advisory— through a four-compan
Slide 15: Progress of Business Strategy (2) Improvement of Profitability in Existing Areas
Progress of Business Strategy (2) (Improvement of Profitability in Existing Areas) Company-wide, cross-functional efforts are producing steady results Measures Progress in FY03/25 /1. Further improve profitability and Improved cost ratio by 0.9% productivity • Focused on securing high-quality busine
Slide 16: Key Measures to Expand Sales
Key Measures to Expand Sales Focus on markets with high growth potential where we can leverage our knowledge and technological capabilities to drive sales expansion Measures Initiatives for FY03/26 / 1. Strengthening business for the SMB market • Expand sales of competitive offerings such as cloud s
Slide 17: Financial Status (Current Cash Position)
Financial Status (Current Cash Position) Obtained cash from the sale of the Electronic Devices business and financing activities Funds will be allocated flexibly and agilely, with a focus on investment in growth while also considering further enhancement of shareholder returns 500 JPY24.2bn -JPY6.3b
Slide 18: Growth Investments
Growth Investments In FY03/25, we focused investment on internal digital transformation to improve operational efficiency Although the number of strategic investment opportunities considered—including M&A—exceeded that of the previous fiscal year, none resulted in executed deals FY03/25 Total amount
Slide 19: Progress of Collaboration
Progress of Collaboration Accelerated collaboration in both existing and growth areas Themes Partner and details Existing Strengthening business foundations ◼ Strengthening channels, customer base, Daiwabo Information System Co., Entered into business alliance agreements and product capabilities ◼ I
Slide 20: Recognition of Challenges from the Perspective of Management Focused on Cost of Capital and Stock Prices
Recognition of Challenges from the Perspective of Management Focused on Cost of Capital and Stock Prices P/B ratio has remained above 1 since the medium-term management plan announcement, but P/B ratio, ROE, and P/E ratio remain low compared to peers in the SI/NI industry May 13, 2024 October 1, 202
Slide 21: Specific Initiatives for Management Focused on Cost of Capital and Stock Price
Specific Initiatives for Management Focused on Cost of Capital and Stock Price Since FY03/24, we have implemented various initiatives aimed at improving ROE and the P/E ratio In FY03/26, we will focus on further advancing these efforts while formulating a clear growth strategy and a new medium- term
Slide 22: Progress of Financial and Capital Policies
Progress of Financial and Capital Policies In addition to business strategies, we are implementing financial and capital initiatives to become a more attractive investment opportunity Reduction of cross-shareholdings Secondary offering of shares and cancellation of treasury stock Policy Purpose and
Slide 23: Shareholder Return
Shareholder Return Dividend policy: Target dividend payout ratio of 40%, with a Dividend yield minimum DOE of 3.5% Year-end share price (Profit attributable to owners of parent used for dividend calculation is based on profit from business activities, excluding extraordinary JPY1,657 JPY1,480 JPY1,5
Slide 24: Dialogue with Shareholders in FY03/25
Dialogue with Shareholders in FY03/25 Increased dialogue on the topic of the cost of capital. Continue proactive engagement and internal feedback Category Overview Main President, Managing Executive Officer of Management Planning (IR), and IR Manager correspondents Overview of ● Investment style: Do
Slide 25: Sustainability Efforts
Sustainability Efforts Re-identified five materiality topics in FY03/25 that contribute to creation of business opportunities and the establishment of a foundation supporting our businesses To effectively promote sustainability, Tsuzuki Denki established and managed progress of KPIs and activity ind
Slide 26: Earnings Forecast for the Fiscal Year Ending March 31, 2026
01 Summary of Financial Results for the Fiscal Year Ended March 31, 2025 02 Progress of Transformation 2026 03 Earnings Forecast for the Fiscal Year Ending March 31, 2026 25 Copyright © 2025 Tsuzuki Denki Co., Ltd.
Slide 27: FY03/26 Consolidated Earnings Forecast
FY03/26 Consolidated Earnings Forecast Even in an uncertain environment, we expect to achieve higher revenue, increased operating income, and record-high profits through steady implementation of the medium-term management plan and by capturing strong customer demand for ICT investment <Review of the
Slide 28: In Conclusion
In Conclusion We will pursue growth by transforming our business model We will strive to improve return on capital through strategic capital control We will continue to invest in our people, the source of our growth, and enhance our human capital We will strive to further enhance our corporate value
Slide 29: Contact
Contact Tsuzuki Denki Co., Ltd. Contact Management Planning Office Address 6-19-15 Shinbashi, Minato-ku, Tokyo 105-8665, Japan (Tokyo Art Club Building) Phone: 050-3684-7780 ir-tantou@tsuzuki.co.jp https://www.tsuzuki.co.jp/ Disclaimer The forward-looking statements, including earnings forecasts, co
Slide 30: Bring to society "yohaku"
Bring to society “yohaku” filled with possibilities, through people, insight, and technology, together.