President, Representative Director
and Group CEO
Masaki Funakoshi
ID Holdings Corporation
April 1, 2024 - September 30, 2024
Financial Results Presentations
TSE Prime Market
Code 4709
Our website can be
accessed from the QR
Code.
November 20, 2024
Change or Die !
1
2
3
Performance Overview for Q2
Business Focus for FY2024
Mid-Term Management Plan
©2024 ID Holdings Corporation. All Rights Reserved. | 2 |
Overview of Financial Results for Q2
Change or Die !
Net Sales ¥ 17,347 million (+8.8% YoY)
⊕All services, paced by IT infrastructure, posted solid growth trends, as
the Group revised order acceptance prices and strategically committed
management resources to the highly profitable fields of advanced
operations and IT infrastructure.
Operating Income ¥1,737 million（+22.2% YoY）
Operating Income Margin 10.0% (+1.1P YOY)
⊝ Returns to employees increased, as did expenses for strategic
investment in personnel training and retention. ⊕ High-margin DX-related business expanded.
©2024 ID Holdings Corporation. All Rights Reserved. | 3 |
Financial Results (Consolidated)
Change or Die !
2023.92024.9
( million)
Results | (% of net sales) | Results | (% of net sales) | Diff. | YoY | |
Net sales | 15,938 | - | 17,347 | - | 1,408 | +8.8% |
Cost of sales | 12,354 | 77.5% | 13,186 | 76.0% | 831 | +6.7% |
Gross profit | 3,583 | 22.5% | 4,160 | 24.0% | 577 | +16.1% |
SG&A expenses | 2,162 | 13.6% | 2,423 | 14.0% | 261 | +12.1% |
EBITDA1 | 1,722 | 10.8% | 2,065 | 11.9% | 343 | +19.9% |
Operating income | 1,421 | 8.9% | 1,737 | 10.0% | 316 | +22.2% |
Ordinary income | 1,504 | 9.4% | 1,801 | 10.4% | 296 | +19.7% |
Net income attributable to | 844 | 5.3% | 1,055 | 6.1% | 211 | +25.1% |
owners of parent | ||||||
Earnings per share (EPS) () | 50.76 | - | 63.03 | - | 12.27 | - |
EPS before amortization | ||||||
of goodwill2 () | 64.12 | - | 76.29 | - | 12.17 | - |
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） | ||
Software Development | ||
⊕ Expansion of order acceptance from customers | ||
17,347 | in the public sector and finance and expansion | |
of transactions due to strengthened sales efforts | ||
15,938 | 190 | |
to major IT vendors | ||
(1.1%) | ||
166 +23
(1.0%) +14.3%
+319 | 5,978 | CyberSecurity,Consulting and Training | |||
⊕ Expansion of order acceptance in cybersecurity | |||||
5,659 | (34.5%) | ||||
+5.6% | and consulting | ||||
(35.5%) | |||||
+317 | 1,819 | ||||
1,502 | (10.5%) | ||||
+21.1% | |||||
(9.4%) | +433 | 1,829 | IT Infrastructure | ||
1,396 | (10.5%) | ⊕ Expansion of transactions with major IT vendors | |||
(8.8%) | +31.0% | and of order acceptance from customers in the | |||
public sector, finance and transportation | |||||
7,213 | +315 | 7,528 | |||
+4.4% | SystemManagement | ||||
(45.3%) | (43.4%) | ||||
⊕ 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 | |||||
2023.9 | 2024.9 | ⊕ Revision of unit prices to reflect increases in | |||
labor and outsourcing expenses | |||||
■ System Management | ■ IT Infrastructure | ||||
■ Cyber Security, Consulting and Training | |||||
■ Software Development | ■ Others | ||||
©2024 ID Holdings Corporation. All Rights Reserved. | 5 |
Gross Profit by Service
Change or Die !
System Management | IT Infrastructure | ||||||||
1,819 | 554 | 50.0% | |||||||
1800 | 1,591 | ||||||||
420 | 45.0% | ||||||||
1600 | |||||||||
40.0% | |||||||||
■ ■ Gross profit (¥million) | 1400 | ||||||||
35.0% | |||||||||
30.3% | |||||||||
1200 | 24.2% | 30.0% | |||||||
30.1% | |||||||||
Gross profit margin (%) | |||||||||
1000 | 25.0% | ||||||||
22.1% | |||||||||
800 | 20.0% | ||||||||
600 | 15.0% | ||||||||
400 | 10.0% | ||||||||
200 | 5.0% | ||||||||
0 | 0.0% | ||||||||
2023.9 | 2024.9 | 2023.9 | 2024.9 | ||||||
Cybersecurity, Consulting and Training | Software Development | Efforts to improve gross profit margin | |||||||
50.0% | 1,213 | 40.0% | |||||||
546 | Background | ||||||||
45.0% | 1,028 | 35.0% | ❶ Long-term, low-margin projects with some customers | ||||||
488 | 40.0% | are putting downward pressure on earnings. | |||||||
30.0% | |||||||||
35.0% | (Results are expected to recover gradually as these | ||||||||
32.5% | 25.0% | projects are wound down.) | |||||||
30.0% | 30.0% | ||||||||
20.3% | ❷ Repricing of services in response to value-added is | ||||||||
25.0% | 20.0% | ||||||||
delayed. | |||||||||
20.0% | 18.2% | 15.0% | |||||||
15.0% | |||||||||
10.0% | |||||||||
10.0% | Future measures | ||||||||
5.0% | |||||||||
5.0% | |||||||||
❶ Selection and concentration of projects | |||||||||
0.0% | 0.0% | ||||||||
2023.9 | 2024.9 | ❷ Improving productivity by strengthening negotiation of | |||||||
2023.9 | 2024.9 | unit prices and conducting thorough project management | |||||||
©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.
DX-related sales & sales ratio
Change or Die !
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
（¥ million） | 64.4% | |
52.9% | 11,174 | |
107 | ||
1,082 | ||
46.8% | 8,438 | 1,463 |
6,951 | 149 | |
902 | ||
136 | 1,262 | |
721 | ||
5,310 | ||
1,221 | ||
3,546 | ||
2,597 | ||
2,274 | 2,577 | 3,211 |
2022.9 | 2023.9 | 2024.9 |
Expansion focused on
advanced operation, remote
support, security and IT
infrastructure
【Grossprofitmargin】
26.3%(+0.6PYoY）
About 5points higher than
non-DX-related business
Security and IT Infrastructure
Remote Support, Advanced Development & System Management* | |
Cloud | |
Consulting and Training | |
Automation and Optimization | |
Sales ratio | |
©2024 ID Holdings Corporation. All Rights Reserved. *"Advanced System Management" has been added from the beginning of FY2023. | 7 |
Net Sales by Strategic Alliances
Change or Die !
Transactions with major, high-value customers that are actively investing in IT account for over 80%of net sales.
(¥ million) | Strategic Partners | ||||
⊝ Withdrawal from or conclusion of some | |||||
Figures in brackets | |||||
indicate % of net sales | 17,347 | projects in software development | |||
15,938 | |||||
3,054 | Major Customers (Non-Finance) | ||||
+8 | (17.6%) | ⊕ Expansion of transactions with customers in | |||
3,045 | the public sector, broadcasting and | ||||
+0.3% | |||||
(19.1%) | 1,649 | manufacturing | |||
-206 | (9.5%) | ||||
1,856 | -11.1% | Major Customers (Finance) | |||
(11.6%) | 3,253 | ⊕ Expansion of orders accepted in fields such | |||
+528 | (18.8%) | as system management and software | |||
2,725 | development | ||||
+19.4% | |||||
(17.1%) | |||||
4,562 | Hitachi Group | ||||
+438 | ⊝ Conclusion of some projects in software | ||||
4,123 | (26.3%) | ||||
+10.6% | |||||
(25.9%) | development, etc. | ||||
1,331 | |||||
-159 | IBM Group | ||||
1,490 | (7.7%) | ||||
-10.7% | ⊕ Expansion of transactions in software | ||||
(9.4%) | development | ||||
3,495 | |||||
2,696 | +798 | ⊕ Acceptance of orders for new projects in | |||
(20.2%) | |||||
+29.6% | |||||
(16.9%) | system management and IT infrastructure, etc. |
Reference | ||||||
2023.9 | 2024.9 | Kyndryl Japan | MI Digital | IBM Japan | ||
Services | ||||||
■ IBM Group | ■ Hitachi Group | ■ Major Customers (Finance) | 1,672 | 980 | 843 | |
■ Major Customers (Non-Finance) | ■ Strategic Partners | ■ Others | 2024.9 | (5.6%) | (4.9%) | |
(9.6%) | ||||||
©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.
(% of net | (¥ million) | |||
( million) | 2024.9 | YoY | Figures in brackets | |
sales) | indicate % of net sales | |||
Finance | 7,948 | 45.8% | +897 | +12.7% |
Change or Die !
Public
Information & Communication
Manufacturing
Transportation
Others*
3,254 | 18.8% | +388 | +13.5% |
1,425 | 8.2% | -351 | -19.8% |
1,649 | 9.5% | +157 | +10.6% |
762 | 4.4% | -103 | -12.0% |
2,306 | 13.3% | +421 | +22.4% |
2,306
762 (13.3%)
(4.4%)
1,649
(9.5%)7,948
(45.8%)
1,425
(8.2%)
3,254
(18.8%)
Total | 17,347 100.0% +1,408 | +8.8% |
*"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
2023.9 | 2024.9 | ||||
Main Reasons in Changes | |||||
（¥ million） | Results | Results | Diff. | ||
Gross profit | 3,583 | 4,160 | +577 ・Increase in net sales | +1,408 | |
・Increase in cost of sales | +831 | ||||
-Subcontract expenses +693 | |||||
-Purchases | +67 | ||||
-Expenses | +59 | ||||
-Labor cost | +16 |
SG&A2,162 2,423 +261 ・Increase in personnel cost +85
!
expenses
-Advancing returns to employees
・Increase in other expenses +175
-Increase in strategic investment expenses to
train and secure personnel
etc.
Operating
1,421 1,737 +316
income
©2024 ID Holdings Corporation. All Rights Reserved. | 10 |