President, Representative Director
and Group CEO
Masaki Funakoshi
ID Holdings Corporation
April 1, 2024 - June 30, 2024
Financial Results Presentations
TSE Prime Market
Code 4709
Our website can be
accessed from the QR
Code.
August 20, 2024
Change or Die !
1
2
3
Performance Overview for Q1
Business Focus for FY2024
Mid-Term Management Plan
©2024 ID Holdings Corporation. All Rights Reserved. | 2 |
Overview of Financial Results for Q1
Change or Die !
Net Sales ¥8,487 million（+8.5% YoY）
⊕ All services proceeded on a solid footing, paced by system management.
Operating Income ¥729 million（-11.5%YoY）
Operating Income Margin 8.6% (-1.9PYOY)
⊝ Returns to employees increased, as did expenses for strategic
investment in personnel training and retention. ⊕ High-marginDX-related business expanded.
©2024 ID Holdings Corporation. All Rights Reserved. | 3 |
Financial Results (Consolidated)
2023.6 2024.6
( million)
Results | (% of net sales) Results | (% of net sales) | Diff. | YoY |
Change or Die !
Net sales | 7,819 | - | 8,487 | - | 667 | +8.5% |
Cost of sales | 5,949 | 76.1% | 6,502 | 76.6% | 552 | +9.3% |
Gross profit | 1,869 | 23.9% | 1,984 | 23.4% | 115 | +6.2% |
SG&A expenses | 1,045 | 13.4% | 1,255 | 14.8% | 209 | +20.1% |
EBITDA1 | 973 | 12.4% | 893 | 10.5% | -79 | -8.2% |
Operating income | 823 | 10.5% | 729 | 8.6% | -94 | -11.5% |
Ordinary income | 884 | 11.3% | 799 | 9.4% | -84 | -9.6% |
Net income attributable to | 514 | 6.6% | 451 | 5.3% | -62 | -12.1% |
owners of parent | ||||||
Earnings per share (EPS) | 30.96 | - | 26.97 | - | -3.99 | - |
() | ||||||
EPS before amortization | 37.65 | - | 33.60 | - | -4.05 | - |
of goodwill2 () | ||||||
Notes:
- EBITDA = Operating income + Depreciation + Amortization of goodwill
- EPS before amortization of goodwill = (Net income attributable to owners of parent + Amortization of goodwill) ÷ Interim average number of shares
©2024 ID Holdings Corporation. All Rights Reserved. | 4 |
Net Sales by Service
Change or Die !
（¥ million）
7,819
58
(0.7%)
2,784
(35.6%)
712
(9.1%)
694
(8.9%)
3,568
(45.6%)
+35
+60.4%
+168
+6.1%
+123
+17.3%
+151
+21.8%
+189
+5.3%
8,487
93
(1.1%)
2,953
(34.8%)
836
(9.9%)
845
(10.0%)
3,758
(44.3%)
Software Development
⊕ Expansion of order acceptance from customers in the public sector and finance and expansion of transactions due to strengthened sales efforts
to major IT vendors
CyberSecurity,Consultingand Training
⊕ Expansion of order acceptance in cybersecurity
and consulting
IT Infrastructure
⊕ Expansion of transactions with major IT vendors
and of order acceptance from customers in
finance, the public sector and transportation
SystemManagement
⊕ Expansion of order acceptance and securing of new projects, including projects related to relocation of data centers for major IT vendors and customers in finance
2023.6 | 2024.6 |
■ System Management | ■ IT Infrastructure |
■ Cyber Security, Consulting and Training | |
■ Software Development | ■ Others |
©2024 ID Holdings Corporation. All Rights Reserved.
⊕ Revision of unit prices to reflect increases in
labor and outsourcing expenses
5
Change or Die !
Gross Profit by Service | ||||||||
System Management | IT Infrastructure | |||||||
241 | 40.0% | |||||||
919 | 245 | |||||||
1000 | 34.8% | 35.0% | ||||||
805 | ||||||||
30.0% | ||||||||
■ ■ Gross profit (¥million) | 800 | |||||||
29.0% | ||||||||
24.5% | 25.0% | |||||||
Gross profit margin (%) | ||||||||
600 | ||||||||
20.0% | ||||||||
22.6% | ||||||||
15.0% | ||||||||
400 | ||||||||
10.0% | ||||||||
200 | ||||||||
5.0% | ||||||||
0 | 0.0% | |||||||
2023.6 | 2024.6 | 2023.6 | 2024.6 | |||||
Cybersecurity, Consulting and Training | Software Development | Others | 40.0% | |||||
40.0% | 40.0% | 35.0% | ||||||
235 | 35.0% | 583 | 589 | 35.0% | ||||
223 | 30.0% | |||||||
33.1% | 6 | |||||||
30.0% | 30.0% | |||||||
25.0% | ||||||||
26.8% | 25.0% | 25.0% | ||||||
20.0% | ||||||||
20.0% | 19.9% | 20.0% | ||||||
20.9% | 15.0% | |||||||
15.0% | 15.0% | |||||||
2 | 7.2% | 10.0% | ||||||
10.0% | 10.0% | |||||||
5.0% | 5.0% | 5.0% | ||||||
4.6% | ||||||||
0.0% | 0.0% | 0.0% | ||||||
2023.6 | 2024.6 | 2023.6 | 2024.6 | 2023.6 | 2024.6 |
©2024 ID Holdings Corporation. All Rights Reserved. | 6 |
Net Sales of DX-related Business
DX-relatedbusiness
Promoting customer's DX by combining existing IT services with cutting-edge technologies such as
cloud and AI.
Change or Die !
7,000
（¥ million） | |
6,000 | |
5,000 | |
4,000 | 45.1% |
3,292 | |
62 | |
3,000 | 303 |
609 | |
2,000 | |
1,195 | |
1,000 | |
1,122 |
DX-related sales & sales ratio
63.0%
52.1% | 5,345 | Expansion focused on |
53 | ||
496 | advanced operation, remote | |
4,071 | 696 | support, IT infrastructure, |
71 | cloud computing and security | |
401 | ||
570 | ||
2,550 | 【Grossprofitmargin】 | |
1,690 | 25.8%(-0.9PYoY) | |
About 5points higher than | ||
1,336 | 1,548 | non-DX-related business |
0
2022.6 | 2023.6 | 2024.6 | |||
Security and IT Infrastructure | |||||
Remote Support, Advanced Development & System Management* | |||||
Cloud | |||||
Consulting and Training | |||||
Automation and Optimization | |||||
Sales ratio | 7 | ||||
©2024 ID Holdings Corporation. All Rights Reserved. *"Advanced System Management" has been added from the beginning of FY2023. |
Change or Die !
Net Sales by Strategic Alliances
Transactions with major, high-value customers that are actively investing in IT account for over 80%of net sales.
(¥ million) | Strategic Partners | ||||
⊝ Withdrawal from some projects in software | |||||
Figures in brackets | |||||
development, etc. | |||||
indicate % of net sales | |||||
8,487 | |||||
7,819 | |||||
1,484 | Major Customers (Non-Finance) | ||||
⊕ Expansion of transactions with customers in | |||||
-48 | (17.5%) | ||||
the public sector, broadcasting and | |||||
1,532 | |||||
-3.1% | manufacturing | ||||
(19.6%) | |||||
831 | |||||
-122 | (9.8%) | ||||
953 | Major Customers (Finance) | ||||
-12.8% | |||||
⊕ Expansion of orders accepted in fields such | |||||
(12.2%) | 1,548 | ||||
+274 | (18.2%) | as system management and software | ||||
1,273 | development | |||||
+21.6% | ||||||
(16.3%) | ||||||
2,242 | Hitachi Group | |||||
+186 | ⊝ Withdrawal from some projects in software | |||||
2,055 | (26.4%) | |||||
+9.1% | development, etc. | |||||
(26.3%) | ||||||
-111 | 647 | IBM Group | ||||
758 | (7.6%) | ⊕ Expansion of transactions in software | ||||
-14.7% | development | |||||
(9.7%) | ||||||
1,243 | +488 | 1,732 | ⊕ Acceptance of orders for new projects in | |||
(20.4%) | system management. etc. | |||||
(15.9%) | +39.3% | Reference | ||||
Kyndryl Japan | MI Digital | IBM Japan | ||||
Services | ||||||
2023.6 | 2024.6 | |||||
810 | 499 | 422 | ||||
■ IBM Group | ■ Hitachi Group | ■ Major Customers (Finance) | ||||
2024.6 | (5.9%) | (5.0%) | ||||
■ Major Customers (Non-Finance) | ■ Strategic Partners ■ Others | (9.5%) | ||||
©2024 ID Holdings Corporation. All Rights Reserved. | 8 |
Net Sales Composition by End-user Industry
Transactions with the financial and public sectors account for over 60% of net sales.
( million) | 2024.6 | (% of net sales) |
Finance | 3,894 | 45.9% |
(¥ million) | |
YoY | Figures in brackets |
indicate % of net sales | |
+451 | +13.1% |
Change or Die !
Public | 1,586 | 18.7% |
Information & | 698 | 8.2% |
Communication | ||
Manufacturing | 817 | 9.6% |
Transportation | 374 | 4.4% |
Others* | 1,115 | 13.1% |
+136 | +9.4% |
-190 | -21.5% |
+86 | +11.8% |
-68 | -15.4% |
+253 | +29.4% |
1,115
374 (13.1%)
(4.4%)
817
(9.6%)
698
(8.2%)
1,586
(18.7%)
3,894
(45.9%)
Total | 8,487 | 100.0% | +667 | +8.5% |
*"Media", "Healthcare", "Construction, Real estate", "Wholesale, Retail, Restaurants", etc.
**From FY2024, we have changed the accounting classification for some customers.
■ Finance
■ Public
■ Information & Communication
■ Manufacturing
■ Transportation
The figures of previous fiscal year have been adjusted based on changes. | ■ Others |
©2024 ID Holdings Corporation. All Rights Reserved. | 9 |
Operating Income Analysis (YoY)
Change or Die !
（¥ million）
Gross profit
SG&A
expenses
Operating
income
2023.6 | 2024.6 | ||||
Main Reasons in Changes | |||||
Results | Results | Diff. | |||
1,869 | 1,984 | +115 | ・Increase in net sales | +667 | |
・Increase in cost of sales | +552 | ||||
-Subcontract expenses | +437 | ||||
-Labor cost | +66 | ||||
-Manufacturing expenses | +29 | ||||
-Purchases | +19 | ||||
1,045 | 1,255 | +209 | ・Increase in personnel cost | +68 | |
-Advancing returns to employees | |||||
・Increase in other expenses | +141 | ||||
-Increase in strategic investment expenses to | |||||
train and secure personnel | |||||
etc. | |||||
823 | 729 | -94 |
©2024 ID Holdings Corporation. All Rights Reserved. | 10 |