Id Holdings CorporationTSE: 4709

Financial Results Presentations Full Year(23/4/1 24/3/31)

· Issued by Id Holdings Corporation

ID Holdings Corporation

April 1, 2023 - March 31, 2024

Financial Results Presentations

President, Representative Director

TSE Prime Market

4709

and Group CEO

Code

Masaki Funakoshi

* Our website can be accessed from the

QR Code.

May 23, 2024

©2024 ID Holdings Corporation. All Rights Reserved.

Change or Die !

1 Performance Overview for FY2023

2

Business focus for FY2024

3

Mid-Term Management Plan

©2024 ID Holdings Corporation. All Rights Reserved.

2

(+0.7P YOY)

Change or Die !

Overview of Financial Results for FY2023

Achieved record-high net sales and operating income and increased sales and profits for the third consecutive year!

Net Sales ¥32,680 million（+5.1% YoY）

  • System management; cybersecurity, consulting and training; and IT infrastructure all trended favorably.

Operating Income ¥2,769 million（+14.2% YoY） Operating Income Margin 8.5%

  • Rising sales drove up earnings
  • High-marginDX-related business expanded ⊝ Returning value to employees

©2024 ID Holdings Corporation. All Rights Reserved.

3

Financial Results (Consolidated)

2023.32024.3

( million)

Results (% of net sales) Results (% of net sales)

Diff.

YoY

Change or Die !

Net sales

Cost of sales

Gross profit

SG&A expenses

EBITDA1

Operating income

Ordinary income

Net income attributable to owners of parent

Earnings per share (EPS) ()

EPS before amortization of goodwill2()

31,101

-

32,680

-

1,579

+5.1%

24,298

78.1%

25,527

78.1%

1,228

+5.1%

6,802

21.9%

7,153

21.9%

351

+5.2%

4,377

14.1%

4,384

13.4%

6

+0.2%

3,033

9.8%

3,421

10.5%

387

+12.8%

2,424

7.8%

2,769

8.5%

344

+14.2%

2,504

8.1%

2,860

8.8%

356

+14.2%

1,402

4.5%

1,777

5.4%

374

+26.7%

84.54

-

106.42

-

21.88

-

111.33

-

133.04

-

21.71

-

Note:

  1. EBITDA = Operating income + Depreciation + Amortization of goodwill
  2. 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

Change or Die !

Financial Results by Services

Net Sales

Gross Profit

（¥ million）

31,101

32,680

7,153

331

6,802

+15

52

467

-135

(1.0%)

36

+42.6%

(0.7%)

(1.5%)

-29.1%

(0.5%)

11,573

-417

2,117

11,458

+114

(35.4%)

2,535

(29.6%)

(36.8%)

+1.0%

-16.5%

(37.3%)

3,319

960

+385

+339

(13.4%)

2,934

(10.2%)

621

+54.6%

(9.4%)

+13.1%

2,862

(9.1%)

796

2,602

+259

(8.8%)

644

+152

(11.1%)

(8.4%)

+10.0%

(9.5%)

+23.6%

13,637

+956

14,593

2,964

+261

3,226

+7.0%

(43.9%)

(44.7%)

+8.8%

(45.1%)

(43.6%)

2023.3

2024.3

2023.3

2024.3

■ System Management

■ IT Infrastructure ■ Cybersecurity, Consulting and Training ■ Software Development ■ Others

Net Sales by Services

■ System Management

■ IT Infrastructure

■ Cybersecurity, Consulting and Training

■ Software Development

  • New orders were received due to redoubling of sales efforts aimed at major IT vendors, while orders accepted from existing clients swelled
  • Major projects were accepted from finance-related clients, transactions with major IT vendors expanded and orders accepted from transport- and manufacturing-related clients grew
  • Orders accepted in consulting expanded and new projects in cybersecurity were obtained
  • Transactions expanded as a result of strengthened sales efforts toward major IT vendors, while

orders accepted from public-sector and finance-related clients expanded ⊝Some projects wrapped up

©2024 ID Holdings Corporation. All Rights Reserved.

5

Net Sales of DX-related Business

DX-related business

Promoting customer's DX by combining existing IT services with cutting-edge technologies such as cloud, AI and IoT.

DX-related sales & sales ratio

55.5%

Change or Die

20,000

15,000

10,000

（¥ million）

47.6%

18,137

297

45.6%

14,810

1,935

12,671

259

2,829

1,509

322

1,257

2,461

1,8777,749

Expanding focus on advanced system management, remote support, consulting, and cloud.

!

5,000

4,491

5,473

  • Gross profit margin 】 24.7% (YoY+ 1.3P)

0

4,722 5,106 5,325

2022.3

2023.3

2024.3

About 5 points higher than non-DX-related business

Automation and Optimization

Consulting and Training

Cloud

Remote Support, Advanced Development & System Management*

Security and IT Infrastructure

*"Advanced System Management" has been added from the beginning of FY2023.

6

©2024 ID Holdings Corporation. All Rights Reserved.

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)

Figures in brackets indicate % of net sales

Strategic Partners

  • Completion of some projects in system management and software development

31,101

32,680

-138

6,332

6,470

(19.4%)

-2.1%

(20.8%)

3,568

-461 (10.9%)

4,029 -11.5%

(13.0%)

5,818

5,133 +13.3% (17.8%)

+684

(16.5%)

+393

8,414

8,020

+4.9%

(25.7%)

(25.8%)

Major Customers（Non-Finance）

  • Rising orders from customers related
    to broadcasting, manufacturing, public-sector, and transportation
  • Wrap-upof some projects with public-sector customers

Major Customers（Finance）

  • Orders accepted for major projects in IT infrastructure
  • Expansion of orders received in software development and cybersecurity

Hitachi Group

  • Completion of some projects in software development, etc.

-230

2,868

3,099

(8.8%)

(10.0%)

-7.4%

5,678

4,347

+1,331

+30.6%

(17.4%)

(14.0%)

2023.3

2024.3

■ IBM Group ■ Hitachi Group ■ Major Customers （ Finance ） ■ Major Customers （ Non-Finance ）■ Strategic Partners ■ Others

IBM Group

  • Receipt of new orders and expansion of existing transactions

【Reference】

Kyndryl

MI Digital

IBM Japan

Japan

Services

2024.3

2,683

1,937

1,058

(8.2%)

(5.9%)

(3.2%)

©2024 ID Holdings Corporation. All Rights Reserved.

7

Net Sales Composition by End-user Industry

Transactions with the financial and public sectors account for over 60% of net sales.

( million)

2024.3 (% of net sales)

(¥ million)

YoY

Figures in brackets

indicate % of net sales

Finance

Public

14,686

44.9%

6,085

18.6%

+1,074

+7.9%

+589

+10.7%

1,634 3,775

(5.0%) (11.6%)

Change or Die !

Information & Communication

Manufacturing

Transportation

3,454

10.6%

3,044

9.3%

1,634

5.0%

+199

+6.1%

+380

+14.3%

+123

+8.2%

3,044

(9.3%)

3,454

(10.6%)

6,085

(18.6%)

14,686

(44.9%)

Others*

3,775

11.6%

-787

-17.3%

Total

32,680

100.0%

+1,579

+5.1%

*"Media", "Healthcare", "Construction, Real estate", "Wholesale, Retail, Restaurants", etc.

**From FY2023, we have changed the accounting classification for some customers. The figures of previous fiscal year have been adjusted based on changes

  • Finance
  • Public
  • Information & Communication
  • Manufacturing
  • Transportation
  • Others

©2024 ID Holdings Corporation. All Rights Reserved.

8

Operating Income Analysis (YoY)

（ million）

Gross profit

Change or

SG&A

Die!

expenses

Operating income

2023.3

2024.3

Main Reasons in Changes

Results

Results

Diff.

6,802

7,153

+351

・Increase in net sales

+1,579

・Increase in cost of sales

+1,228

-Subcontract expenses

+984

-Labor cost

+421

-Manufacturing expenses

+176

-Purchases

-339

4,377

4,384

+6

・Decrease in personnel cost

-124

-Reassignment of personnel from SG&A

divisions to business divisions

etc.

・Increase in other expenses

+131

2,424 2,769 +344

©2024 ID Holdings Corporation. All Rights Reserved.

9

Net Income Attributable to Owners of Parent Analysis (YoY)

（ million）

Ordinary income

Change

Extraordinary

income

or

Extraordinary

losses

Die !

Total income taxes

Net income

attributable to owners of parent

2023.3

2024.3

Main Reasons in Changes

Results

Results

Diff.

2,504

2,860

+356

・Increase in operating income

+344

・Increase in non-operating income +9

・Decrease in non-operating expenses -2

0

73

+73

・Increase in gain on sales of investment

securities

+70

172

30

-142

・Decrease in reaction to loss on retirement of

non-current assets in the previous fiscal year

-112

・Decrease in reaction to Loss on office closings

in the previous fiscal year

-37

・Loss on valuation of investment securities

+27

929

1,126

+197

1,402 1,777 +374

©2024 ID Holdings Corporation. All Rights Reserved.

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