Presentation Material of
Financial Results for FY2024 (ended December 31, 2024)
Note: This English translation is solely for reference purposes and not a legally definitive translation of the original Japanese text. In the event a difference arises regarding the meaning herein, the original Japanese version will prevail as the official authoritative version.
DENTSU SOKEN INC.
February 12, 2025
INDEX
Outline of Financial Results for FY2024
Forecasts for FY2025
Appendix
INDEX
Outline of Financial Results for FY2024
Forecasts for FY2025
3Appendix
Summary of FY2024
Results
Driven by Manufacturing Solutions, net sales increased by 7.0% YoY.
Despite a significant increase in personnel expenses due to aggressive hiring and compensation revisions, operating profit secured an increase due to the effects of increase in sales and improved gross profit margin.
•
•
Although we did not reach the revised targets, we successfully achieved all
initial plans.
We have formulated a new Medium-term management plan (2025-2027) aimed at our 2030 goals.
Medium-term Management Plan
Net sales has increased for nine consecutive periods, and operating profit and profit attributable to owners of parent have reached record highs for seven consecutive periods.
•
•
The year-end dividend is planned to be 54 yen as initially forecasted
(annual dividend of 108 yen).
This marks the 12th consecutive period of dividend increase, with a payout ratio of 46.5%.
Annual Dividend
Consolidated Results
(Unit: Millions of yen)
FY2024 (cumulative) | YoY | Vs. Previous forecasts (announced on Oct 31, 2024) | |||||
FY2023 (cumulative) | Variance | % change | Forecasts | Variance | % change | ||
Net sales | 152,642 | 142,608 | +10,034 | +7.0 | 152,000 | +642 | +0.4 |
Gross profit Gross profit margin (%) | 56,123 36.8 | 51,780 36.3 | +4,343 +0.5p | +8.4 - | 55,300 36.4 | +823 +0.4p | +1.5 - |
Selling, general and administrative expenses | 35,083 | 30,752 | +4,331 | +14.1 | 35,300 | -217 | -0.6 |
Operating profit Operating margin (%) | 21,039 13.8 | 21,028 14.7 | +11 -0.9p | +0.1 - | 20,000 13.2 | +1,039 +0.6p | +5.2 - |
Ordinary profit | 21,093 | 21,244 | -151 | -0.7 | 20,000 | +1,093 | +5.5 |
Profit attributable to owners of parent | 15,117 | 14,663 | +454 | +3.1 | 14,000 | +1,117 | +8.0 |
ROE (%) | 17.4 | 18.7 | -1.3p | - | |||
Number of employees* (people) | 4,413 | 3,652 | +761 | +20.8 | * at the end of the fiscal year | ||
Factors for Increase/Decrease in Operating Profit (YoY)
Although SG&A expenses expanded significantly, operating profit increased due to the effect of increased sales and improved gross profit margin.
The gross profit margin improved by +0.5p compared to the previous period due to the suppression of unprofitable projects.
The factors for the increase in SG&A expenses include an increase in personnel, revisions in compensation, an increase in the workload for sales support by engineers, and an increase in goodwill and other expenses associated with M&A activities.
Effect of increase in gross profit margin +7.0
(Unit: 100 million of yen)
Operating profit 210.2
Operating profit 210.3
Effect of increase in sales +36.4
Increase in SG&A expenses -43.3
Gross profit margin was 36.8% (+0.5p YoY)
Suppression of unprofitable projects (+approximately 6.0 effect)
Personnel expenses (+17.5)
Business development expenses (+8.1)*
Sales promotion expenses (+7.6)*
Amortization of goodwill (+2.8)
Depreciation expenses (+2.1)
YoY
+0.1
FY2023
(cumulative) result
FY2024
(cumulative) result
*Business development expenses are mainly labor costs for engineers' non-paid work hours. Sales promotion expenses are mainly labor costs for engineers' proposal activities to win new projects.
Factors for Increase/Decrease in Operating Profit (vs. Forecasts)
Operating profit exceeded the revised forecasts due to the effects of increased sales and improved gross profit margin, and the suppression of SG&A expenses.
(Unit: 100 million of yen)
vs. Forecasts
+10.3
・Cost control
Operating profit 200.0
Effect of increase in sales +2.3
Effect of increase in gross profit margin +5.9
Operating profit 210.3
Decrease in SG&A expenses
+2.1
Gross profit margin was 36.8% (+0.4p vs. Forecast)
Increased In-house software sales in the Business Solutions segment
Improved profitability in the Manufacturing Solutions segment
FY2024 (cumulative) Forecast (announced on October 31, 2024)
FY2024 (cumulative) result
Non-operating Income/Expenses and Extraordinary Income/Losses
Ordinary profit decreased due to an increase in non-operating expenses, due to factors such as foreign exchange losses.
Profit attributable to owners of parent increased due to the recording of gains on the sale of investment securities and the absence of investment securities valuation losses recorded in the previous period.
(Unit: Millions of yen)
FY2024
(cumulative)
YoY
FY2023
(cumulative)
Variance
% change
Operating profit
21,039
21,028
+11
+0.1
Non-operating income
Non-operating expenses
318
264
267
51
+51
+213
+19.1
+417.6
Ordinary profit
21,093
21,244
-151
-0.7
Extraordinary income
Extraordinary losses
326
67
135
429
+191
-362
+141.5
-84.4
Profit before income taxes
21,351
20,951
+400
+1.9
Total income taxes
6,233
6,286
-53
-0.8
Profit attributable to non-controlling interests
0
1
-1
-
Profit attributable to owners of parent
15,117
14,663
+454
+3.1
Net Sales and Operating Profit by Reportable Segment
(Unit: Millions of yen)
Reportable segment
FY2024
(cumulative)
YoY
Vs. Previous Forecasts
(announced on October 31, 2024)
Variance
% change
Overview
Variance
% change
Financial Solutions
Net sales
Operating profit
%
31,910
3,674
11.5
+1,312
+176
+0.1p
+4.3
+5.0
-
Net sales and operating profit increased due to expanded sales and implementation of third-party software in the accounting area and customer contact reform area to the banking industry.
-90
-
-
-0.3
-
-
Business Solutions
Net sales
Operating profit
%
23,324
5,497
23.6
+217
-273
-1.4p
+0.9
-4.7
-
Net sales increased due to expanded sales and implementation of POSITIVE mainly for the insurance industry. Operating profit decreased due to a significant increase in personnel expenses associated with strategic staffing.
+324
-
-
+1.4
-
-
Manufacturing Solutions
Net sales
Operating profit
%
47,353
5,418
11.4
+6,235
+312
-1.0p
+15.2
+6.1
-
Net sales and operating profit increased due to the expansion of consulting to support system grand design and engineering, as well as the sales and implementation of Teamcenter mainly for the transportation equipment industry and electric appliances and precision instruments industry.
+353
-
-
+0.8
-
-
Communication IT
Net sales
Operating profit
%
50,053
6,448
12.9
+2,269
-204
-1.0p
+4.7
-3.1
-
Net sales increased due to expanded sales and implementation of SAP solutions mainly for the machinery and energy industries. Operating profit decreased due to an increase in personnel expenses and the goodwill amortization and other expenses resulting from the acquisition of Mitsue-Links Co., Ltd. as a subsidiary.
+53
-
-
+0.1
-
-
*POSITIVE: Integrated HCM Solution, Teamcenter: Product Lifecycle Management Solution
Net Sales by Service Category and Dentsu Group Companies
(Unit: Millions of yen)
Service category
FY2024
(cumulative)
YoY
Vs. Previous Forecasts (announced on October 31, 2024)
Variance
% change
Variance
% change
Consulting Services
10,480
+1,869
+21.7
-20
-0.2
Custom System Development
31,013
+100
+0.3
+1,013
+3.4
In-house Software
30,095
-142
-0.5
+95
+0.3
Third-party Software
54,372
+6,188
+12.8
-628
-1.1
Outsourcing, Operation and Maintenance Services
18,498
+1,390
+8.1
-2
-
IT Equipment Sales and Others
8,182
+629
+8.3
+182
+2.3
Counterparty
FY2024
(cumulative)
YoY
Variance
% change
Dentsu Group Inc. and it's subsidiaries
21,449
-1,242
-5.5
Ref. Consolidated Results for the 4Q of FY2024
Due to the underachievement of the initial full-year operating profit plan, a provision adjustment of performance-linked bonuses amounting to approximately ¥-700 million occurred in the 4Q.
(Unit: Millions of yen)
4Q of FY2024
(Oct.-Dec.)
YoY
4Q of FY2023
(Oct.-Dec.)
Variance
% change
Net sales
40,411
37,340
+3,071
+8.2
Gross profit
Gross profit margin (%)
15,698
38.8
13,921
37.3
+1,777
+1.5p
+12.8
-
Selling, general and administrative expenses
9,122
8,444
+678
+8.0
Operating profit
Operating margin (%)
6,576
16.3
5,477
14.7
+1,099
+1.6p
+20.1
-
Ordinary profit
6,679
5,548
+1,131
+20.4
Profit attributable to owners of parent
5,042
3,825
+1,217
+31.8
Ref. Factors for Increase/Decrease in Operating Profit for the 4Q of FY2024 (YoY)
Although SG&A expenses expanded, operating profit increased due to the effects of increased sales and improved gross profit margin.
Operating profit 54.7
Operating Profit 65.7
Effect of increase in sales +11.4
Increase in SG&A expenses -6.7
YoY
+10.9
Effect of increase in gross profit margin +6.2
(Unit: 100 million of yen)
Gross profit margin was 38.8% (+1.5p YoY)
Improved profitability of custom system development and in-house software
Personnel expenses (+1.9)
Depreciation expenses (+1.6)
Business development expenses (+1.4)*
Sales promotion expenses (+1.0)*
Amortization of goodwill (+0.8)
4Q of FY2023
(cumulative) result
4Q of FY2024
(cumulative) result
*Business development expenses are mainly labor costs for engineers' non-paid work hours. Sales promotion expenses are mainly labor costs for engineers' proposal activities to win new projects.
Ref. Consolidated Results for the 4Q of FY2024
by Reportable Segment / by Service Category
Reportable segment
(Unit: Millions of yen)
Service category
(Unit: Millions of yen)
4Q of FY2024 (Oct.-Dec.) | YoY | |||
Variance | % change | |||
Net sales | 7,888 | -127 | -1.6 | |
Financial Solutions | 967 | |||
Operating profit | +46 | +5.0 | ||
% | +0.8p | - | ||
12.3 | ||||
Net sales | 6,187 | +546 | +9.7 | |
Business Solutions | 1,703 | |||
Operating profit | +505 | +42.2 | ||
% | +6.3p | - | ||
27.5 | ||||
Net sales | 12,817 | +1,519 | +13.4 | |
Manufacturing Solutions | 1,801 | |||
Operating profit | +155 | +9.4 | ||
% | -0.5p | - | ||
14.1 | ||||
Net sales | 13,517 | +1,131 | +9.1 | |
Communication IT | 2,103 | |||
Operating profit | +393 | +23.0 | ||
% | +1.8p | - | ||
15.6 | ||||
4Q of FY2024 (Oct.-Dec.) | YoY | ||
Variance | % change | ||
Consulting Services | 3,007 | +421 | +16.3 |
Custom System Development | 8,397 | +744 | +9.7 |
In-house Software | 8,000 | +356 | +4.7 |
Third-party Software | 13,806 | +973 | +7.6 |
Outsourcing, Operation and Maintenance Services | 5,096 | +429 | +9.2 |
IT Equipment Sales and Others | 2,103 | +148 | +7.6 |
Net Sales by Industry
(Unit: Millions of yen)
Industry | FY2024 (cumulative) | YoY | |||
Net sales | Composition ratio (%) | Variance | % change | ||
Banks | 22,892 | 15.0 | +857 | +3.9 | |
Other financial institutions | 8,859 | 5.8 | +1,782 | +25.2 | |
Financial | 31,751 | 20.8 | +2,639 | +9.1 | |
Transportation equipment | 27,593 | 18.1 | +5,027 | +22.3 | |
Electric appliances Precision instruments | 16,730 | 11.0 | +1,388 | +9.0 | |
Machinery | 11,211 | 7.3 | +591 | +5.6 | |
Other products | 10,938 | 7.2 | -1,121 | -9.3 | |
Manufacturing | 66,474 | 43.6 | +5,885 | +9.7 | |
Services and public offices | 41,571 | 27.2 | +1,001 | +2.5 | |
Distributions and others | 12,845 | 8.4 | +510 | +4.1 | |
* As we reviewed some of our client industries, we used reclassified figures for comparison with the same period last year.
Consolidated Balance Sheets
(Unit: Millions of yen)
As of Dec. 31, 2024 | As of Dec. 31, 2023 | Variance | Main factors for increase/decrease | ||
Total current assets | 119,058 | 114,813 | +4,245 | Decrease in accounts receivable-trade, and contract assets (-1,877) Increase in deposits paid (+3,555) Increase in advance payments to suppliers (+2,018) | |
Total non-current assets | 28,273 | 18,520 | +9,753 | Increase in goodwill (+5,389) Increase in customer-related intangible assets (+3,096) | |
Total assets | 147,331 | 133,333 | +13,998 | ||
Total current liabilities | 52,544 | 47,622 | +4,922 | Increase in contract liabilities (+3,067) Increase in accounts payable (+725) | |
Total non-current liabilities | 3,592 | 2,739 | +853 | Increase in deferred tax liabilities (+1,089) Decrease in long-term lease liabilities (-213) | |
Total liabilities | 56,137 | 50,362 | +5,775 | ||
Total net assets | 91,194 | 82,971 | +8,223 | Increase in retained earnings (+7,949) | |
Total liabilities and net assets | 147,331 | 133,333 | +13,998 | ||
Consolidated Statements of Cash Flows
(Unit: Millions of yen)
FY2024 (cumulative) | Main factors | YoY | ||
FY2023 (cumulative) | Variance | |||
Cash flows from operating activities | 23,721 | Profit before income taxes (21,351) Depreciation (3,449) Increase in contract liabilities (2,932) Decrease in accounts receivable-trade, and contract assets (2,568) Income taxes paid (-5,839) Increase in advance payments to suppliers (-1,965) | 13,046 | +10,675 |
Cash flows from investing activities | -11,886 | Purchase of shares of subsidiaries resulting in change in scope of consolidation (-8,591) Purchase of intangible assets (-2,848) | -2,359 | -9,527 |
Cash flows from financing activities | -7,982 | Dividends paid (-7,168) | -6,702 | -1,280 |
Effect of exchange rate change on cash and cash equivalents | 353 | 225 | +128 | |
Net increase (decrease) in cash and cash equivalents | 4,206 | 4,210 | -4 | |
Cash and cash equivalents at the beginning of period | 57,515 | 53,305 | +4,210 | |
Cash and cash equivalents at the end of period | 61,722 | 57,515 | +4,207 | |
Orders Received and Order Backlog
(Unit: Millions of yen)
Orders received | Order backlog | ||||||
4Q of FY2024 (Oct.-Dec.) | YoY % change | FY2024 (cumulative) | YoY % change | FY2024 (As of Dec. 31) | YoY % change | ||
Total | 36,414 | +12.4 | 158,602 | +9.5 | 59,859 | +11.1 | |
Reportable segment | Financial Solutions | 8,239 4,874 10,371 12,927 | +11.5 | 32,036 22,259 50,105 54,200 | +4.7 | 7,901 6,812 25,866 19,279 | +1.6 |
Business Solutions | -6.3 +11.3 | +7.3 +8.6 | -13.5 +11.9 | ||||
Manufacturing Solutions | |||||||
Communication IT | +23.2 | +14.4 | +27.4 | ||||
Service category | Consulting Services | 2,786 8,280 6,670 10,403 5,251 3,022 | +11.0 | 11,356 31,564 28,493 57,425 20,905 8,856 | +26.3 | 2,241 5,686 9,170 30,142 6,493 6,125 | +64.3 |
Custom System Development | +17.1 -10.6 +3.0 +37.7 | +8.5 +0.6 +8.1 +18.2 | +10.7 -14.9 +11.3 +58.9 | ||||
In-house Software | |||||||
Third-party Software | |||||||
Outsourcing, Operation and Maintenance Services | |||||||
IT Equipment Sales and Others | +107.7 | +15.6 | +12.4 | ||||
INDEX
Outline of Financial Results for FY2024
Forecasts for FY2025
Appendix
Note:
Forecasts of business results in this document are based on judgments and assumptions made in light of industry trends, customer conditions, and other information currently available, and are not intended as a guarantee that they will be achieved. Actual results may differ from these forecasts due to uncertainties inherent in forecasts, changes in internal and external conditions, and other factors.
18Earnings Forecast and Dividend Forecast for FY2025
Net sales is expected to grow by 11.4%, and operating profit is aimed to increase by 9% even after incorporating strengthened investments.
The annual dividend is planned to be 116 yen per share with a payout ratio of 47.2%, aiming for the 13th consecutive year of dividend increases.
(Unit: Millions of yen)
* at the end of the fiscal yearFY2025
(cumulative)
YoY
FY2024
(cumulative)
Variance
% change
Net sales
170,000
152,642
+17,358
+11.4
Operating profit
23,000
21,039
+1,961
+9.3
Operating margin (%)
13.5
13.8
-0.3p
-
Ordinary profit
23,000
21,093
+1,907
+9.0
Profit attributable to owners of parent
16,000
15,117
+883
+5.8
Number of employees* (people)
4,800
4,413
+387
+8.8
Dividend Forecast
Dividend
116yen
108yen
+8yen
+7.4
Dividend payout ratio (%)
47.2
46.5
+0.7p
-
Factors for Increase/Decrease in Operating Profit of FY2025 (YoY)
Effect of increase in gross profit margin +4.9
(Unit: 100 million of yen)
Operating profit 210.3
Operating profit 230.0
Effect of increase in sales +63.8
Increase in SG&A expenses -49.1
Gross profit margin target 37.1% (+0.3p YoY)
Focus on expanding sales of consulting and in-house software, and suppressing unprofitable projects.
YoY
+19.6
Personnel expenses, recruitment expenses, and training expenses (+approximately 22)
Operating expenses, sales promotion expenses, and advertising expenses (+approximately 7)
R&D expenses (+approximately 6)
Increase in goodwill and other expenses due to M&A activities in the previous period (+approximately 5)
FY2024
(cumulative) result
FY2025
(cumulative) forecast
Regarding Changes in the Businesses Managed by Each Reportable Segment
To implement the growth strategy of the new Medium-term Management Plan, we make the following changes to the businesses managed by each reportable segment:
Transfer the ERP business from Communication IT to Manufacturing Solutions.
(We will work on further distinguishing our ability to provide solutions for the manufacturing industry's value chain through collaboration with PLM business.)
Consolidate the business for some major customers, which was spread across multiple segments, into the primary managing segment.
(We aim to have a single point of contact for sales and focus on deepening customer relationships and expanding business areas.)
Integrate the smart society business and some solution businesses such as security into Communication IT. (Leveraging collaboration with the Dentsu Group, we aim to expand social and corporate transformation businesses.)
3. Smart society businesses, etc.
Communication IT
Manufacturing Solutions
2. Transfer customers
Business Solutions
Financial Solutions
1. ERP Business
Reclassification of Net Sales for FY2024 by Each Reportable Segment
(Unit: Millions of yen)
FY2024 (cumulative) | H1 of FY2024 (Jan. - Jun.) | ||||||
Before reclassification | After reclassification | Variance | Before reclassification | After reclassification | Variance | ||
Financial Solutions | 31,910 | 34,050 | +2,140 | 16,109 | 17,177 | +1,068 | |
Business Solutions | 23,324 | 23,626 | +302 | 11,717 | 11,863 | +146 | |
Manufacturing Solutions | 47,353 | 60,564 | +13,211 | 22,694 | 29,324 | +6,630 | |
Communication IT | 50,053 | 34,401 | -15,652 | 23,713 | 15,870 | -7,843 | |
Net Sales Forecasts for FY2025
by Reportable Segment / by Service Category
(Unit: Millions of yen) (Unit: Millions of yen)
Reportable segment | FY2025 (cumulative) | YoY | Service category | FY2025 (cumulative) | YoY | |||||
FY2024* (cumulative) | Variance | % change | FY2024 (cumulative) | Variance | % change | |||||
Financial Solutions | 37,000 | 34,050 | +2,950 | +8.7 | Consulting Services | 12,000 | 10,480 | +1,520 | +14.5 | |
Business Solutions | 27,000 | 23,626 | +3,374 | +14.3 | Custom System Development | 34,000 | 31,013 | +2,987 | +9.6 | |
Manufacturing Solutions | 67,000 | 60,564 | +6,436 | +10.6 | In-house Software | 34,000 | 30,095 | +3,905 | +13.0 | |
Communication IT | 39,000 | 34,401 | +4,599 | +13.4 | Third-party Software | 60,000 | 54,372 | +5,628 | +10.4 | |
*The figures for the previous year have been reclassified to conform to the changes in the reportable segments described on the previous page. | Outsourcing, Operation and Maintenance Services | 21,000 | 18,498 | +2,502 | +13.5 | |||||
IT Equipment Sales and Others | 9,000 | 8,182 | +818 | +10.0 | ||||||
Forecasts for the First Half of FY2025
(Unit: Millions of yen)
H1 of FY2025 | YoY | |||
H1 of FY2024 | Variance | % change | ||
Net sales | 83,000 | 74,235 | +8,765 | +11.8 |
Operating profit | 11,500 | 10,360 | +1,140 | +11.0 |
Operating margin(%) | 13.9 | 14.0 | -0.1p | - |
Ordinary profit | 11,500 | 10,262 | +1,238 | +12.1 |
Profit attributable to owners of parent | 8,000 | 7,248 | +752 | +10.4 |
Percentage of the full year (%) |
48.8 |
50.0 - |
50.0 |
50.0 |
Net Sales Forecasts for the First Half of FY2025
by Reportable Segment / by Service Category
(Unit: Millions of yen) (Unit: Millions of yen)
Reportable segment | H1 of FY2025 | YoY | Service category | H1 of FY2025 | YoY | |||||
H1 of FY2024* | Variance | % change | H1 of FY2024 | Variance | % change | |||||
Financial Solutions | 18,000 | 17,177 | +823 | +4.8 | Consulting Services | 5,800 | 4,763 | +1,037 | +21.8 | |
Business Solutions | 13,000 | 11,863 | +1,137 | +9.6 | Custom System Development | 16,500 | 15,027 | +1,473 | +9.8 | |
Manufacturing Solutions | 33,000 | 29,324 | +3,676 | +12.5 | In-house Software | 16,500 | 15,136 | +1,364 | +9.0 | |
Communication IT | 19,000 | 15,870 | +3,130 | +19.7 | Third-party Software | 29,500 | 26,886 | +2,614 | +9.7 | |
*The figures for the previous year have been reclassified to conform to the changes in the reportable segments described on the previous page. | Outsourcing, Operation and Maintenance Services | 10,300 | 8,404 | +1,896 | +22.6 | |||||
IT Equipment Sales and Others | 4,400 | 4,017 | +383 | +9.5 | ||||||
INDEX
Outline of Financial Results for FY2024
Forecasts for FY2025
Appendix
Appendix Evaluation
Index
「Platinum Kurumin」
「Tomonin」
Certification
*FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms that DENTSU SOKEN INC. has been independently assessed according to the FTSE4Good criteria, and has satisfied the requirements to become a constituent of the FTSE4Good Index Series, FTSE Blossom Japan Index, and FTSE Blossom Japan Sector Relative Index. Created by the global index provider FTSE Russell, these indices are designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices, and are used by a wide variety of market participants to create and assess responsible investment funds and other products.
*INCLUSION OF DENTSU SOKEN INC. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF DENTSU SOKEN INC. BY MSCI OR ANY OF ITS AFFILIATES.
Appendix Consolidated Financial Results
(Unit: Millions of yen)
FY2014 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | |
Net sales | 78,267 | 56,771 | 79,783 | 83,423 | 91,024 | 100,679 | 108,679 | 112,085 | 129,054 | 142,608 | 152,642 |
YoY | 105.8% | 72.5% | 140.5% | 104.6% | 109.1% | 110.6% | 107.9% | 103.1% | 115.1% | 110.5% | 107.0% |
Gross profit | 22,364 | 16,843 | 26,127 | 25,708 | 30,123 | 33,390 | 37,472 | 40,016 | 46,786 | 51,780 | 56,123 |
Gross profit margin | 28.6% | 29.7% | 32.7% | 30.8% | 33.1% | 33.2％ | 34.5% | 35.7% | 36.3% | 36.3% | 36.8% |
Selling, general and administrative expenses | 17,886 | 14,721 | 19,638 | 20,219 | 21,884 | 23,315 | 25,282 | 26,280 | 28,196 | 30,752 | 35,083 |
SG&A ratio | 22.9% | 25.9% | 24.6% | 24.2% | 24.0% | 23.2% | 23.3% | 23.4% | 21.8% | 21.6% | 23.0% |
Operating profit | 4,478 | 2,122 | 6,488 | 5,489 | 8,239 | 10,075 | 12,189 | 13,736 | 18,590 | 21,028 | 21,039 |
Operating margin | 5.7% | 3.7% | 8.1% | 6.6% | 9.1% | 10.0% | 11.2% | 12.3% | 14.4% | 14.7% | 13.8% |
Ordinary profit | 4,966 | 2,526 | 6,704 | 5,642 | 8,197 | 9,648 | 11,502 | 13,224 | 18,354 | 21,244 | 21,093 |
Profit attributable to owners of parent | 2,166 | 3,015 | 4,580 | 4,438 | 5,187 | 6,226 | 7,362 | 8,944 | 12,598 | 14,663 | 15,117 |
ROE | 5.5% | 7.3% | 10.5% | 9.6% | 10.5% | 11.8% | 12.9% | 14.3% | 18.1% | 18.7% | 17.4% |
Number of employees at the end of the fiscal year | 2,502 | 2,559 | 2,635 | 2,716 | 2,783 | 2,879 | 3,117 | 3,240 | 3,388 | 3,652 | 4,413 |
* Starting FY2015, we changed its fiscal year end from March 31 to December 31.
Appendix Net Sales and Operating Profit by Reportable Segment
(Unit: Millions of yen)
FY2014 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | ||
Financial Solutions | Net sales | 24,086 | 17,851 | 22,037 | 21,413 | 23,242 | 24,622 | 23,888 | 25,176 | 28,125 | 30,598 | 31,910 |
Operating profit | 1,447 | 1,441 | 2,110 | 1,821 | 1,794 | 1,542 | 1,411 | 1,494 | 1,611 | 3,498 | 3,674 | |
Operating margin | 6.0% | 8.1% | 9.6% | 8.5% | 7.7% | 6.3% | 5.9% | 5.9% | 5.7% | 11.4% | 11.5% | |
Business Solutions | Net sales | 14,934 | 11,177 | 16,965 | 17,033 | 16,810 | 19,289 | 22,100 | 14,958 | 18,608 | 23,107 | 23,324 |
Operating profit | -30 | 1,666 | -169 | 701 | 1,741 | 2,760 | 2,655 | 4,704 | 5,770 | 5,497 | ||
Operating margin | - | 9.8% | - | 4.2% | 9.0% | 12.5% | 17.7% | 25.3% | 25.0% | 23.6% | ||
Manufacturing Solutions | Net sales | 21,766 | 15,588 | 23,872 | 25,530 | 29,252 | 30,027 | 30,511 | 32,031 | 36,453 | 41,118 | 47,353 |
Operating profit | -619 | 692 | 1,359 | 2,228 | 2,103 | 2,357 | 2,847 | 4,179 | 5,106 | 5,418 | ||
Operating margin | - | 2.9% | 5.3% | 7.6% | 7.0% | 7.7% | 8.9% | 11.5% | 12.4% | 11.4% | ||
Communication IT | Net sales | 17,480 | 12,152 | 16,908 | 19,445 | 21,718 | 26,739 | 32,179 | 39,919 | 45,867 | 47,784 | 50,053 |
Operating profit | 2,483 | 1,331 | 2,018 | 2,477 | 3,515 | 4,688 | 5,659 | 6,738 | 8,095 | 6,652 | 6,448 | |
Operating margin | 14.2% | 11.0% | 11.9% | 12.7% | 16.2% | 17.5% | 17.6% | 16.9% | 17.6% | 13.9% | 12.9% | |
FY2015 and later are disclosed in the above four segments. For FY2014, only net sales have been reclassified into the above segments.
From FY2021, the Enterprise IT division, which is engaged in the development and implementation of mission-critical systems, was transferred from the Business Solutions segment to the Communication IT segment.
Appendix Net Sales by Service Category
(Unit: Millions of yen)
FY2014 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | ||
Consulting Services | Net sales | 3,860 | 3,350 | 5,426 | 5,515 | 6,818 | 6,819 | 5,975 | 7,200 | 7,418 | 8,611 | 10,480 |
Composition | 4.9% | 5.9% | 6.8% | 6.6% | 7.5% | 6.8% | 5.5% | 6.4% | 5.8% | 6.0% | 6.9% | |
Custom System Development | Net sales | 23,072 | 16,658 | 21,622 | 22,473 | 24,188 | 29,153 | 28,147 | 29,245 | 33,107 | 30,913 | 31,013 |
Composition | 29.5% | 29.3% | 27.1% | 26.9% | 26.6% | 29.0% | 25.9% | 26.1% | 25.7% | 21.7% | 20.3% | |
In-house Software | Net sales | 13,438 | 10,366 | 14,796 | 14,752 | 15,070 | 17,126 | 20,549 | 22,089 | 24,807 | 30,237 | 30,095 |
Composition | 17.2% | 18.3% | 18.5% | 17.7% | 16.6% | 17.0% | 18.9% | 19.7% | 19.2% | 21.2% | 19.7% | |
Third-party Software | Net sales | 22,728 | 16,578 | 23,850 | 25,077 | 27,261 | 29,945 | 33,325 | 33,767 | 40,299 | 48,184 | 54,372 |
Composition | 29.0% | 29.2% | 29.9% | 30.1% | 29.9% | 29.7% | 30.7% | 30.1% | 31.2% | 33.8% | 35.6% | |
Outsourcing, Operation and Maintenance Services | Net sales | 7,541 | 5,256 | 8,015 | 8,587 | 9,555 | 9,524 | 12,462 | 12,085 | 16,052 | 17,108 | 18,498 |
Composition | 9.6% | 9.3% | 10.1% | 10.3% | 10.5% | 9.5% | 11.5% | 10.8% | 12.4% | 12.0% | 12.1% | |
IT Equipment Sales and Others | Net sales | 7,625 | 4,561 | 6,071 | 7,017 | 8,130 | 8,110 | 8,219 | 7,696 | 7,369 | 7,553 | 8,182 |
Composition | 9.8% | 8.0% | 7.6% | 8.4% | 8.9% | 8.0% | 7.5% | 6.9% | 5.7% | 5.3% | 5.4% | |