Datasection, Inc. · TSE:3905
Datasection — Q2 FY2024 Earnings Presentation
64 slides from Datasection's earnings presentation, Nov 21, 2023
Slide 1: Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2024
Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2024 Datasection Inc. November 21, 2023 Ticker Symbol: 3905
Slide 2: Table of Contents
Table of Contents 1. Results for the Second Quarter of the Fiscal Year Ending March 31, 2024 2. Plan for the Fiscal Year Ending March 31, 2024 3. Appendix 4. Reference Materials [Company Profile and Services] 1 © 2023 Datasection Inc.
Slide 3: 1. Results for the Second Quarter of the Fiscal Year Ending March 31, 2024
1. Results for the Second Quarter of the Fiscal Year Ending March 31, 2024 2 © 2023 Datasection Inc.
Slide 4: Consolidated Financial Highlights
1. Results for the Second Quarter of the Consolidated Financial Highlights Fiscal Year Ending March 31, 2024 • Driven by overseas subsidiaries, consolidated revenues increased (overseas net sales up 41% year on year) • Due to structural reform factors in Japan, particularly on a non-consolidated bas
Slide 5: Notes on Adjusted EBITDA
1. Results for the Second Quarter of the Fiscal Year Ending March 31, 2024 Notes on Adjusted EBITDA • Various depreciation and amortization, which are the source of the actual CF generation, are planned to be 295M yen per year in the current fiscal year after the impairment in the fiscal year ended
Slide 6: Consolidated Net Sales and Operating Profit Trends (Quarterly)
Consolidated Net Sales and Operating Profit Trends 1. Results for the Second Quarter of the (Quarterly) Fiscal Year Ending March 31, 2024 Operating profit Net sales (millions (millions of yen) of yen) Net sales (left axis) Operating profit (right axis) 2018/3 2019/3 2020/3 2021/3 2022/3 2023/3 2024/
Slide 7: Consolidated Financial Position (Balance Sheet)
1. Results for the Second Quarter of the Consolidated Financial Position (Balance Sheet) Fiscal Year Ending March 31, 2024 • Total assets decreased slightly due to profit factors (capital adequacy ratio remained at 57%) • Since expenditures from cash reserves were advanced in the first half, asset u
Slide 8: Progress of Leading Indicator: Retail Marketing (FollowUP)
1. Results for the Second Quarter of the Progress of Leading Indicator: Retail Marketing "FollowUP") Fiscal Year Ending March 31, 2024 Net sales leading indicators increased steadily year-on-year • The number of stores and cameras installed, a medium-term KPI for net sales, increased organically by
Slide 9: Topic 1: Change in Reporting Segment
1. Results for the Second Quarter of the Topic 1: Change in Reporting Segment Fiscal Year Ending March 31, 2024 Reporting segments are reorganized into two, "Japan" and "Overseas” • Review and upgrade business and performance management systems from a management approach perspective • Facilitate und
Slide 10: Topic 2: Strengthen Global Infrastructure (Consolidation in Panama and Spain)
Topic 2: Strengthen Global Infrastructure 1. Results for the Second Quarter of the (Consolidation in Panama and Spain) Fiscal Year Ending March 31, 2024 New consolidation of two (2) companies, Alianza FollowUP Panamá S.A. (Panama) and FollowUP Customer Experience S.I (Spain). Consolida % of votes Pr
Slide 11: Topic 3: Business Acquired from ROOM4D Group
1. Results for the Second Quarter of the Topic 3: Business Acquired from ROOM4D Group (September) Fiscal Year Ending March 31, 2024 • Acquisitions in high-growth domains such as generative AI • In the area of data analysis and AI solutions, a core business in which our Group has strengths, we intend
Slide 12: Topic 4: New Service Release (FollowUP Shelf Analytics)
1. Results for the Second Quarter of the Topic 4: New Service Release (FollowUP Shelf Analytics) Fiscal Year Ending March 31, 2024 • Launch of FollowUP Shelf Analytics, a product shelf analysis solution for supermarkets (Wednesday, June 28, 2023) • AI-based real-time detection of missing items, misp
Slide 13: Topic 5: Strengthen Investor Relations
Topic 5: Strengthen Investor Relations 1. Results for the Second Quarter of the (Start distribution of corporate research reports) Fiscal Year Ending March 31, 2024 Start of analyst coverage (first session on Monday, October 30, 2023) We will strive to further improve information disclosure, includi
Slide 14: Topic 6: Development of Sustainability Policy
1. Results for the Second Quarter of the Topic 6: Development of Sustainability Policy Fiscal Year Ending March 31, 2024 Sustainability Policy Contributing to the world and people's lives 100 years from now. 13 © 2023 Datasection Inc.
Slide 15: Sustainability Policy: Message from the CEO and Vision
Sustainability Policy Message from the CEO Sustainability Vision We are striving for sustainable growth Contributing to the world and people's and business breakthroughs with a lives 100 years from now. strong will to continue improving people's lives around the world. Since its establishment in 200
Slide 16: Sustainability Policy: Global Partnerships and Diversity
Sustainability Policy Creating innovation through Promoting diversity and global partnerships inclusion on a global basis By supporting stable management, especially in our South We partnered with companies in Southeast Asia to promote diversity American subsidiaries, we help developing countries cr
Slide 17: 2. Plan for the Fiscal Year Ending March 31, 2024
2. Plan for the Fiscal Year Ending March 31, 2024 16 © 2023 Datasection Inc.
Slide 18: Earnings Forecast
2. Plan for the Fiscal Year Ending March 31, 2024 Earnings Forecast • Unify earnings forecast in order to strengthen our commitment to the market • Based on the characteristics of each market in Japan and South America, we plan to achieve steady revenue growth in each of these markets and to increas
Slide 19: Financial Trends Highlights
2. Plan for the Fiscal Year Ending March 31, 2024 Financial Trends Highlights • Plan to increase revenues in both Japan and overseas markets while making investments necessary for business growth • While managing profitability and costs, we aim to achieve a steady return to profitability in operatin
Slide 20: Adjusted EBITDA (Plan)
2. Plan for the Fiscal Year Ending March 31, 2024 Adjusted EBITDA (Plan) • Adjusted EBITDA is planned to increase compared to the previous fiscal year on a merit basis, taking into account amortization and depreciation expenses related to product development and other factors < Previous < Plan > yea
Slide 21: Themes and Key Policies for the Period
2. Plan for the Fiscal Year Ending March 31, 2024 Themes and Key Policies for the Period 1. Business Portfolio 2. Strengthen Global Structure 3. Improve Customer Value • Continue overseas growth • Review business segments on • Launch new products that while balancing the investment a global basis ha
Slide 22: 3. Appendix
3. Appendix 21 © 2023 Datasection Inc.
Slide 23: Consolidated Net Sales Trends
Consolidated Net Sales Trends 3. Appendix Fiscal 2024/3 2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 2021/3 2022/3 2023/3 term Q2 Net sales (Millions of 317 376 439 593 721 1,088 1,168 1,389 1,692 1,925 978 yen) 22 © 2023 Datasection Inc.
Slide 24: Consolidated Operating Profit Trends
Consolidated Operating Profit Trends 3. Appendix Fiscal 2024/3 2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 2021/3 2022/3 2023/3 term Q2 Operating profit 57 85 28 79 45 100 14 18 77 (56) (162) (Millions of yen) 23 © 2023 Datasection Inc.
Slide 25: Consolidated Ordinary Profit Trends
Consolidated Ordinary Profit Trends 3. Appendix Fiscal 2024/3 2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 2021/3 2022/3 2023/3 term Q2 Ordinary profit 60 85 36 71 45 95 5 31 165 41 (123) (Millions of yen) 24 © 2023 Datasection Inc.
Slide 26: Trends in Consolidated Profit Attributable to Owners of Parent
Trends in Consolidated Profit Attributable to Owners of Parent 3. Appendix Fiscal 2024/3 2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 2021/3 2022/3 2023/3 term Q2 Profit attributable to owners of parent 45 63 26 36 16 37 (17) (41) 2 (534) (99) (Millions of yen) 25 © 2023 Datasection Inc.
Slide 27: 4. Reference Materials
4. Reference Materials 26 © 2023 Datasection Inc.
Slide 28: Company Profile
Company Profile 27 © 2023 Datasection Inc.
Slide 29: We ARE... Change the Frame
We ARE... What we will be... What we should do… Change the Frame As a "section" of the World Data Division, we continue to improve the lives of people around the world, revolutionizing the real world with technology and creating new ways of living © Datasection Inc.
Slide 30: Introduction of the Company
Introduction of the Company Company Profile Company Profile Datasection Inc. Head Office 8F Gotanda PLACE Bldg., 1-3-8, Nishigotanda, Shinagawa-ku, Business Business in Japan Tokyo, 141-0031, Japan Domain Data Science Domain Foundation July 11, 2000 Marketing Solution Domain Date System Integration
Slide 31: Company History
Company Profile Company History Company History 2000 2003 2009 2012 2013 2014 2016 2017 2018 2019 2023 Acquisition of The ROOM4D Alliance with Nippontect Systems Jach Technology SpA becomes a subsidiary Capital and business alliance with KDDI Capital and business alliance with Arum in the medical fi
Slide 32: Introduction of the Founder
Company Profile Introduction of the Founder Leading expert on data science workforce development Founder of Datasection Inc. (currently an advisor to our company) / Professor at Digital Hollywood University Director of Media Library, Visiting Professor, Tama University Graduate School Director, Wit
Slide 33: Our Leadership
Company Profile: Our Leadership Our Leadership Kento Hayashi Shinichi Iwata Christian Cafatti President and Vice President and Director Representative Director Representative Director and CEO and CFO Joined a major foreign consulting firm in 2002 after Joined a major financial institution in 1998 af
Slide 34: Our Leadership
Company Profile: Our Leadership Our Leadership Jun Nakajima Kohki Sakata Yuki Uchiyama Director (External) Director (External) Director (External) Joined DENTSU INC. in 1989. After working in various After graduating from Waseda University's School of In 2004, after graduating from the Department of
Slide 35: Introduction of the Audit & Supervisory Board Members
Company Profile: Our Leadership Introduction of the Audit & Supervisory Board Members Akira Tashiro Shun Ishizaki Daisuke Yokoyama Full-time Audit & Audit & Supervisory Audit & Supervisory Supervisory Board Board Member (External) Board Member (External) Member (External) After graduating from the F
Slide 36: Introducing the Datasection Group
Company Profile: Datasection Group DATASECTION GROUP Introducing the The Datasection Group supports DX and business rationalization for a wide range of companies in retail and other industries on a global basis with its strengths in large-scale data analysis, Datasection high-performance image analy
Slide 37: Businesses of Datasection Group
Businesses of Datasection Group 36 © 2023 Datasection Inc.
Slide 38: Business in Japan
01 Data Science Business in Japan Data and AI. Datasection's core technology that drives businesses forward. DATA & AI 02 03 Marketing System Integration Solution © Datasection Inc.
Slide 39: Data Science
Business in Japan Data Science Business in Japan Data Science As a business data concierge, we respond with our extensive experience and deep technical expertise. We provide specialized support and consulting for all phases of Consulting & Data Analytics / AI Development Data Integration Infrastruct
Slide 40: Consulting & Data Analytics / AI Development
Business in Japan: Data Science, Consulting and Data Analytics / AI Development Data Science Consulting & Data Analytics / AI Development At Datasection, our experienced consultants and the best data scientist for the given project will help with a variety of issues. Consulting & Data Analytics AI D
Slide 41: Building Data Infrastructure
Business in Japan: Data Science, Building Data Infrastructure Data Science Building Data Infrastructure We provide one-stop services from analysis to visualization. Multiple clouds can be supported, including AWS, Azure, and GCP. High volume AWS Cloud data (response time of 1 minute or more) Ad hoc
Slide 42: Education and Training
Business in Japan: Data Science, Education and Training Data Science Education and Training Experienced consultants and data scientists are available as trainers. For Business Users For Engineers Data analysis helpline Statistical data analysis How to use data analytics for DX initiatives Establishm
Slide 43: Key Case Studies
Business in Japan: Data Science Key Case Studies Data Science Key Case Studies Data Integration Infrastructure & Dashboard Building Building and visualizing a DMP integrating multiple data sources Quantitative data usage analysis and image analysis Demand forecasting, inventory and production optimi
Slide 44: Building and visualizing a DMP integrating multiple data sources
Business in Japan: Data Science, Building and Visualizing Integrated DMP for Multiple Data Sources Data Science Project Case 01 Building and visualizing a DMP integrating multiple data sources • Build a data integration infrastructure solution to integrate, centrally manage, and operate internal dat
Slide 45: Demand forecasting, inventory and production optimization
Business in Japan: Data Science Demand forecasting, inventory and production optimization Data Science Project Case 02 Demand forecasting, inventory and production optimization • Detailed visualization of existing data and analysis of trends and drivers • Feed characteristics into the algorithm to d
Slide 46: Predict product import volumes using crawler data
Business in Japan: Data Science Predict product import volumes using crawler data Data Science Project Case 03 Predict product import volumes using crawler data Challenges: Based on the information available on the web, staff predicted the volume of product imports based on intuition and experience
Slide 47: Marketing Solution
Business in Japan Marketing Solution Business in Japan Digitization of data at offline stores using IoT devices Marketing and support for utilizing the data. Also provides Solution marketing solutions such as social big data analytics and engines. Customer journeys that extend infinitely In-Store An
Slide 48: In-Store Analytics
Business in Japan Marketing Solution: In-Store Analytics In-Store Analytics Install IoT devices in stores to transform customer interests (≒customer behavior) into data and analyze it • Perform data analysis on customer shopping behavior that was previously based on visual observation, store associa
Slide 49: In-Store Analytics Services: FollowUP and ATIKO
Business in Japan Marketing Solution: In-Store Analytics Services In-Store Analytics Services Store analytics tool Flow line analytics tool FollowUP ATIKO FollowUP is a store analytics tool that derives actionable Assigns a unique ID to each customer who visits the store and insights to both enhance
Slide 50: Business Partners (excerpt)
Business in Japan Marketing Solution: Our Business Partners Marketing Solution Business Partners (excerpt) Apparel Miscellaneous goods Fishing gear Jewelry Reuse Cosmetics Stationery Include past results © Datasection Inc.
Slide 51: Social Listening
Business in Japan: Social Listening Social Listening Extract consumer insights and risk postings from the vast amount of social big data that exists Social media is a treasure trove of the "real voices" of consumers. This is important data for business marketing. We discover the hidden true feelings
Slide 52: Social Listening Services
Business in Japan: Social Listening - Social Listening Services Social Listening Services Accurate and immediate analysis of the voices on the web Analytics that "pinpoint” the needs of marketers X (formerly Twitter) Data Analytics Service Analytics that reflect the expertise of marketers who analyz
Slide 53: Social Listening Case Studies
Business in Japan: Social Listening - Social Listening Case Studies Social Listening Social Listening Case Studies Product Competitive comparison Campaign impact study Measurement of advertising word-of-mouth research for each funnel effectiveness survey Compare the level of consumer penetration of
Slide 54: System Integration
Business in Japan System Integration Business in Japan System We can provide a one-stop support from upstream processes to downstream maintenance and operation based on the customers’ Integration individual requirements for AI and system contract development AI Contract Development Data, AI, and cut
Slide 55: Key Case Studies
Systems Integration Business in Japan: Major Cases System Integration Key Case Studies AI Contract Development Analysis of biometric information (EEG and ECG waveforms) Visitor counting from security camera footage Development of speech analysis engine Abnormality detection from driving recorder foo
Slide 56: Image recognition in automated driving systems
Systems Integration Business in Japan: Image recognition in automated driving systems System Integration Project Case 01 Image recognition in automated driving systems In the automotive field, the main challenge is to develop a system that can instantly determine the current Challenges: situation of
Slide 57: Inappropriate image filtering engine
Systems Integration Business in Japan: Inappropriate image filter engine System Integration Project Case 02 Inappropriate image filtering engine Challenges: A large company blocks websites with harmful content. Previously, blocking sites with harmful content was done manually. • Deep learning and ot
Slide 58: AI Reporter
Systems Integration Business in Japan: AI Reporter System Integration Project Case 03 AI Reporter • For THE MID-JAPAN ECONOMIST 70th anniversary project, we implemented an AI-generated document project. Machine learning of word relationships in existing documents • One million past online articles -
Slide 59: Manufacturing search engine development
System Integration in Japan: Manufacturing search engine development System Integration Project Case 04 Manufacturing search engine development • Development of a Web service that crawls and searches the websites of approximately 40,000 companies across Japan • Provide a dashboard that allows users
Slide 60: Overseas business
Overseas business A data bridge connecting the world. Datasection's services are being developed globally, with a focus on South America. © Datasection Inc.
Slide 61: FollowUP
Overseas business: FollowUP FollowUP “FollowUP” Improve sales performance by analyzing in-store customer behavior. FollowUP is a store analytics tool that derives actionable insights to both enhance and improve sales performance based on customer behavior in the store. It contributes to improving sa
Slide 62: 20 countries 7,000 stores 100 companies
Overseas business: FollowUP FollowUP Working with global retailers. FollowUP is installed in 47 department stores of Falabella S.A., a major South American retail group, as well as in 58 high street stores of 12 brands licensed by Falabella in Chile, including Clarks, Aldo, and Mango. Datasection is
Slide 63: Datasection Inc.
Datasection Inc. [email protected] 03-6427-2565 8F Gotanda PLACE Bldg., 1-3-8, Nishigotanda, Shinagawa-ku, Tokyo, 141-0031, Japan https://www.datasection.co.jp
Slide 64: Forward-Looking Statements Disclaimer
Forward-Looking Statements Disclaimer • This document has been prepared by the Company for the purpose of providing investors with an understanding of the current status of the Company for their reference. • The information contained herein is based on generally accepted economic, social, and other