Slide 1: Financial Results FY06/22
Financial Results FY06/22 (July 1, 2021 to June 30, 2022) [Non-Consolidated] Intelligent Wave Inc. Announced on August 5, 2022 Copyright © 2022, INTELLIGENT WAVE INC. All rights reserved.
Slide 2: Financial Results FY06/22
Financial Results FY06/22 Progress of medium-term business plan Forecast for FY06/23 Reference Copyright © 2022, INTELLIGENT WAVE INC. All rights reserved. 2
Slide 3: Overview
Overview Million yen FY06/21 FY06/22 Change（YoY） vs. Forecast Net sales 11,187 11,493 ＋306 ＋2.7% △4.2% Operating 1,130 1,519 ＋389 ＋34.4% ＋15.1% income Ordinary 1,171 1,556 ＋385 ＋32.9% ＋14.4% income Net income 840 1,055 ＋215 ＋25.6% ＋12.2% Amount of orders 10,892 15,722 ＋4,830 ＋44.3% Orders on hand 5,
Slide 4: Sales by categories
Sales by categories (＋）“Cloud service” increased, “Hardware” increased due to FEP system renewal for existing customers (△）”Third-party products” decreased, “Security products” decreased due to lower sales in large projects. Million yen FY06/21 FY06/22 Change Net Sales 11,187 11,493 ＋306 System Deve
Slide 5: Top Three Clients by Sales
Top Three Clients by Sales Million yen FY06/21 FY06/22 Change Main projects Tokenization Service system (for 1. D N P 1,647 1,524 △122 Smartphone payment transaction ) , Payment Platform*, System operations (24/7), Credit card 2. 133 1,025 ＋892 Hardware renewal sales due to FEP system* company Syste
Slide 6: Operating income
Operating income (＋) Turnaround of cloud services business, improvement in quality and productivity of system development and maintenance, increase in hardware sales, etc. (△) Decrease in security sales, increase in SG&A expenses (+153 million yen YoY), etc. ■…Operating income ●…Operating margin 1,5
Slide 7: Amount of Orders
Amount of Orders Million yen 4,686 4,252 3,954 3,230 3,016 3,056 2,829 2,562 2,660 2,612 2,402 2,254 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY06/20 FY06/21 FY06/22 Copyright © 2022, INTELLIGENT WAVE INC. All rights reserved. 7
Slide 8: Orders on Hand
Orders on Hand ■…Cloud service ■…System Development ■…Maintenance, Hardware, Security products, etc Million yen 9,268 9,563 7,963 4,141 4,210 5,786 6,075 5,912 5,317 5,688 5,530 5,319 5,202 5,022 4,236 1,934 2,401 1,762 1,609 2,611 2,016 2,026 1,839 2,202 1,853 2,068 2,061 2,075 1,882 1,615 1,769 1,
Slide 9: Cloud Service Business
Cloud Service Business Sales were in line with the plan. Profits exceeded the plan for the full year, although we invested in improving the infrastructure environment and operating system in anticipation of an increase in users of our cloud service in the 4Q. Million yen FY06/21 FY06/22 Q1 Q2 Q3 Q4
Slide 10: Orders for Cloud Services
Orders for Cloud Services IOASIS received strong orders mainly from major business companies; IGATES received a large order from a major credit card company. Orders received this fiscal year will contribute to sales from the fiscal year ending June 30, 2023. Million yen FY06/21 FY06/22 Q1 Q2 Q3 Q4 Q
Slide 11: Reference) Our Cloud Services
Reference) Our Cloud Services ・SaaS product for providing operation system and supporting customers to launch acquiring business ■IOASIS ・ Offer 24/7 system operation ■IPRETS ・Point management system that grants points at the time of payment, etc. ■IGATES ・Provides 24/7 non-stop switching operation
Slide 12: Progress of medium-term business plan
Financial Results FY06/22 Progress of medium-term business plan Forecast for FY06/23 Reference Copyright © 2022, INTELLIGENT WAVE INC. All rights reserved. 12
Slide 13: Realization of “Business Reliability”
Basic Policy We play a key role in critical social infrastructure such as payments, finance, and security. As an IT services company that supports Business Reliability, we aim to contribute to a sustainable society by continuing to enhance the reliability of our business and that of our clients' bus
Slide 14: Our Strengths in Support of “Business Reliability”
Our Strengths in Support of “Business Reliability” With our strength in product development, we provide valuable solutions and services that meet the needs of a diverse customer. System development Cloud services IT nfrastructure Product development Consulting Services building IT Strategy Support S
Slide 15: Progress of Medium-Term Business Plan “15ALL”
Progress of Medium-Term Business Plan “15ALL” we will reinforce and expand our business foundation by reforming our business structure and expanding our business domain. We will also establish the foundations for human resources and co-creation for our sustainable growth. Results for FY2022 ・Expand
Slide 16: Reform our Business Structure
Reform our Business Structure ・Expansion of “stock*” type business centered on cloud services ・Cloud compatibility of FEP system, utilization of payment data ・Expansion of payment business domain by supporting customers' IT strategies ・Expansion of security business and New Businesses Expansion of s
Slide 17: Business Strategies
Business Strategies ・Cloud compatibility of FEP system Payment & Finance ・Shared use of payment data, data analysis and utilization ・Expansion of payment area by supporting customers’ IT strategies ・Support business for fraud detection (BPO) ・Expansion of the number of companies using the system ・Im
Slide 18: Securing and Developing Human Resources to Support Growth
Securing and Developing Human Resources to Support Growth Promoting human resource development measures, we nurture a diverse human resources with advanced skills and expertise as well as flexibility in thinking. We will also create a virtuous cycle of employee growth and social contribution by deve
Slide 19: Corporate reform centered on co-creation
Corporate reform centered on co-creation Promote organizational collaboration through stimulating dialogue among employees. In addition, we will engage in ESG initiatives to address a variety of social issues. 社 部門横断の対話による組織力強化 内 課 題 心理的安全性の醸成 様々な部署が参画する 社内課題の解決 ONE TEAM 360の構築 IWIらしい新しい働き方 新たな課題の発見
Slide 20: Performance target
Performance target we have revised the numerical goals for the three-year period beginning in the fiscal year ending June 30, 2023 as a rolling plan, at the time of announcement of the results for the fiscal year ending June 30, 2022. We aim for sustainable growth while making necessary investments
Slide 21: Roadmap to Achieve Goals
Roadmap to Achieve Goals Plans for growth through expansion of Cloud Service business and Payment & Finance area, as well as increase in stock ratio. Million yen ■…Payment & Finance ■…Cloud Services ■…Security CAGR 16,500 15,000 1,700 19.4% 13,500 1,500 3,000 36.7% 11,493 1,350 11,187 2,500 998 2,00
Slide 22: Forecast for FY06/23
Financial Results FY06/22 Progress of medium-term business plan Forecast for FY06/23 Reference Copyright © 2022, INTELLIGENT WAVE INC. All rights reserved. 22
Slide 23: FY06/23 Full-year Forecasts
FY06/23 Full-year Forecasts Million yen FY06/22 FY06/23 Change actual forecast （full year) 1H 2H Full year 1H 2H Full year Net sales 4,887 6,606 11,493 6,800 6,700 13,500 ＋17.5% Payment & Finance 3,956 5,366 9,322 5,320 4,830 10,150 ＋8.9% Cloud Services 493 680 1,173 880 1,120 2,000 ＋70.5% Security
Slide 24: FY06/23 Cloud Services Plan
FY06/23 Cloud Services Plan While continuing to improve the infrastructure environment and operational structure in anticipation of an increase in the number of users in the first half, the plan aims for a 70% increase in sales for the full year. Million yen FY06/22 actual FY06/23 forecast Q1 Q2 Q3
Slide 25: Dividend Trends
Dividend Trends For the fiscal year ending June 30, 2022, we plan to raise the annual dividend by 3 yen from the initial forecast to 17 yen. For the fiscal year ending June 30, 2023, we plan to raise the annual dividend to 20 yen per share. Dividend per share 20 Payout ratio 17 13 48.8 10 42.3 41.1
Slide 26: Reference
Financial Results FY06/22 Progress of medium-term business plan Forecast for FY06/23 Reference Copyright © 2022, INTELLIGENT WAVE INC. All rights reserved. 26
Slide 27: Cost of manufacturing
Cost of manufacturing Thousand yen FY06/21 FY06/22 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Materials cost 4,890 6,337 8,255 8,940 7,194 8,162 11,264 10,943 Labor cost 708,202 739,778 712,358 732,866 718,848 734,397 714,332 724,102 Expenses 363,448 353,011 368,936 399,624 431,898 413,397 403,356 501,360 Subcontracti
Slide 28: SG&A expenses
SG&A expenses Thousand yen FY06/21 FY06/21 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Salaries 287,425 323,927 312,972 339,842 290,810 310,527 335,648 361,087 Training and recruiting 5,321 17,463 13,352 16,789 10,332 13,989 24,046 24,878 Rent 17,621 17,615 17,918 18,164 18,793 18,328 16,822 17,320 Advertising 1,586 4,
Slide 29: Cash Flows
Cash Flows ＋1,486 △1,516 Million yen △350 Income before taxes ＋1,556 D&A ＋829 A/R increase △716 Purchase of PP&E △248 A/P increase ＋518 Purchase of △1,289 Inventory increase △88 intangible assets Income taxes paid △384 Dividends △341 4,307 3,932 JPY 375mil decrease 30-Jun-21 Operating activities Inv
Slide 30: Historical performance
Historical performance ■… Net sales ■ … Operating income Million yen 11,187 11,493 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 1,177 1,036 1,130 731 702 921 678 484 547 371 389 417 228 358 321 131
Slide 31: Company overview
Company overview As of June 30,2022 Established December 27, 1984 Location Kayabacho Tower, 1-21-2 Shinkawa, Chuo-ku, Tokyo Employees 449 Parent company Dai Nippon Printing Co., Ltd. (50.71%) Capital stock JPY843.75k Shares 26,340,000 Shareholders 8,939 outstanding Ownership (%) % of shareholders In
Slide 32: 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