Densan System Holdings Co. Ltd. · TSE:4072
Densan System — Q2 FY2020 Earnings Presentation
17 slides from Densan System's earnings presentation, 2020
Slide 1: Presentation Materials for the 2Q FY2020 Results Briefing
Presentation Materials for the 2Q FY2020 Results Briefing Densan System Co., Ltd. Tokyo Stock Exchange, First Section Nagoya Stock Exchange, First Section Securities Code: 3630 Forward-looking statements contained in this document are based on current estimates and projections and include potential
Slide 2: 2Q FY2020 Business Results Highlights
2Q FY2020 Business Results Highlights Y-o-y change in parentheses Net income attributable to Sales Operating income shareholders of the parent company 21,871 million yen 1,683 million yen 1,064 million yen (Up 10.0%) (Up 36.7%) (Up 24.4%) Business results ✔ Sales and earnings up y-o-y ✔ Net income i
Slide 3: 2Q FY2020 Business Results Highlights
2Q FY2020 Business Results Highlights (Unit: Million yen) ✓ Sales according to plan and high attainment ratio for income in the first half of the fiscal year ✓ Upward revision in full-year sales plan due to M&A and the GIGA School concept Attainment Full-year FY 12/2019 FY 12/2020 YoY 1H forecast ra
Slide 4: FY2020 Transition in Quarterly Business Results
FY2020 Transition in Quarterly Business Results (Unit: Million yen) ✓ While operating income was up YoY in 2Q, it was particularly higher in 1Q Sales Operating income 12,000 1,113 11,127 1,100 10,744 10,076 10,194 10,132 1,000 10,000 9,798 900 800 782 8,000 700 636 600 569 6,000 500 449 400 4,000 40
Slide 5: By Segment
2Q FY2020 By Segment (Unit: Million yen) ✓ The information service segment had particularly strong profit growth ✓ Sales and income both up slightly in the payment agency service segment Sales Operating income 1,700 Payment 20,000 1,500 363 agency Payment agency service 17,500 9,106 service 1,300 15
Slide 6: Information Services Summary
2Q FY2020 Information Services Summary ✓ In SI and software development, auto auctions and software (Unit: Million yen) development commissions were robust Sales were strong due to telework demand ✓ Revenues were down for information processing due to the impact of the coronavirus Attainment FY 12/2
Slide 7: Information Services in Detail: Google business
2Q FY2020 Information Services in Detail (Unit: Million yen) Google business Number of Google (G Suite) adopter companies ✓ Telework contributed to sales of 1,776 1,725 Chromebooks 1,648 1,499 ✓ Digital signage contributed to 1,246 profits Sales of cloud related services Google Other clouds 5,229 Nu
Slide 8: Information Services in Detail: BPO business
2Q FY2020 Information Services in Detail (Unit: Million yen) BPO business 81,493 79,974 ✓ The impact of voluntary Number of items processed (in thousand items) restraint led to a drop in the 56,042 number of items processed 4,000 35,564 31,515 3,601 3,500 ✓ Self-restraint in sales is a 3,145 3,011 S
Slide 9: Payment Agency Services Summary
2Q FY2020 Payment Agency Services Summary (Unit: Million yen) ✓ The decrease for the paperless payment service was due to factors including a decrease in ticket sales and event participation fees ✓ The increase for the remittance service was largely due to an increase in refund processing due to the
Slide 10: Payment Agency Services in Detail: Payment service
2Q FY2020 Payment Agency Services in Detail (Unit: Million yen) Payment service 216,262 210,165 198,235 Number of items processed (in thousand items) ✓ Start of DSK deferred payment Account transfer Paperless payment Payment slip settlement 17,500 16,554 16,840 Sales 15,766 641 655 628 1,305 15,000
Slide 11: Status of payment innovation
2Q FY2020 Payment Agency Services in Detail Status of payment innovation ✓ Counter payment service - 3,728 adopter stores ✓ Profits achieved due to an increase in the number of stores offering the Will Call international remittance service and temporarily closures of other stores (Average number of
Slide 12: Partnership agreement with Works Human Intelligence
Topics Signed a partnership agreement with Works Human Intelligence Co., Ltd. (March 24, 2020) ✓ Conducted and promoted a business partnership in the COMPANY® business, a package software for the integrated management of human resources operations overall • Sales cooperation for the sale and introdu
Slide 13: Participation in Google for Education Distance Learning Support Program
Topics Participation in Google for Education™ Distance Learning Support Program for schools that are closed ✓ Increase in inquiries regarding Google for Education™ ✓ Classroom function to support online classes, assignment submissions, etc. ✓ Also supports the GIGA School concept Devices that comply
Slide 14: DSK deferred payment service
Topics DSK deferred payment service ✓ July 1, 2020: Start of DSK deferred payment service Helps providers to reduce the risk of uncollectible receivables, reduce operating costs, and increase sales Provider (1) Purchaser selects DSK deferred payment (3) Reply with (2) Credit review requested to the
Slide 15: Full-scale entry in the security business (M&A)
Topics Full-scale entry in the security business (M&A) ✓ July 31, 2020: Acquired 100% of the shares of PSI Inc., an information security business company, and added it to the Densan System Group ✓ August 1, 2020: Established a Security Business Division to become more reliable Densan System Group wi
Slide 16: Impact of the coronavirus
Topics Impact of the coronavirus Continue business and services and minimize the negative impact by implementing measures such as staggered working hours, telecommuting, changing desk locations, and staggered lunch breaks that can be implemented in each department Voluntary restraint on sales activi
Slide 17: Shareholder Returns
Shareholder Returns ✓ Annual ordinary dividend per share: ¥28 (interim dividend of ¥14 and year-end dividend of ¥14) 30 Interim (Up 4.0%) Year-end 25 Special dividend 14 20 13 14 2.5 13 12 11 12 15 10 9 10 7 13 13 14 11 11 12 12 5 10 8.5 7 0 FY 12/2011 FY 12/2012 FY 12/2013 FY 12/2014 FY 12/2015 FY