Densan System Holdings Co. Ltd. · TSE:4072
Densan System — FY2019 Earnings Presentation
22 slides from Densan System's earnings presentation, 2020
Slide 1: Presentation Materials for the FY2019 Results Briefing
Presentation Materials for the FY2019 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 ris
Slide 2: FY2019 Business Results Highlights
FY2019 Business Results Highlights Y-o-y change in parentheses Net income attributable to Sales Operating income shareholders of the parent company 40,202 million yen 2,268 million yen 1,559 million yen (Up 9.9%) (Up 36.0%) (Up 52.8%) Business results ✓ Achieved plan, with solid results for the peri
Slide 3: FY2019 Business Results Highlights
FY2019 Business Results Highlights (Unit: Million yen) ✓ Income exceeded initial plan and upward revision, profit margins increased FY 12/2018 FY 12/2019 Y-o-y (%) Plan Attainment ratio Sales 36,576 40,202 9.9% 40,000 100.5% Operating income 1,668 2,268 36.0% 2,100 108.0% Income ratio 4.6% 5.6% 1.1%
Slide 4: Transition in Quarterly Business Results
FY2019 Transition in Quarterly Business Results (Unit: Million yen) ✓ Fluctuations in quarterly profits due to differences in the sales compositions between stock and flow ✓ 4Q profit reduced due to shareholder benefits, etc. FY 12/2019 40,202 FY 12/ 2019 2,268 Sales Plan 40,000 Operating income Pla
Slide 5: By Segment
FY2019 By Segment (Unit: Million yen) ✓ Information services business took the lead ✓ Payment agency services business almost attained the revised plan but missed the initial plan Sales Operating income 40,000 2,250 Payment Payment agency 35,000 agency service 2,000 service 635 30,000 17,477 1,750 1
Slide 6: Information Services Summary
FY2019 Information Services Summary (Unit: Million yen) ✓ Mainstay SI and software development and information processing were strong ✓ Profit margin rose notably, gaining 1.8 points from last year FY 12/2018 FY 12/2019 Y-o-y Plan Attainment ratio Amount Ratio Sales 19,415 22,724 3,308 17.0% 22,517
Slide 7: Information Services in Details: Google business
FY2019 Information Services in Details (Unit: Million yen) Google business (SI and software development) Number of Google (G Suite) adopter companies 1,499 1,725 1,648 ✔ Number of Google (G Suite) adopter companies 1,246 : Over 1,700 companies 943 Sales of cloud related services 系列1 系列2 5,229 ✔ Sale
Slide 8: Information Services in Details: BPO business
FY2019 Information Services in Details (Unit: Million yen) BPO business (information processing) Number of items processed (in thousand items) 81,493 79,974 ✓ Changes in the sales 51,053 composition reflected in 56,042 35,564 sales and number of items 4,000 Sales 3,601 ✓ Sales growth rate expanded 3
Slide 9: Payment Agency Services Summary
FY2019 Payment Agency Services Summary ✓ Natural disasters had additional adverse effects on (Unit: Million yen) sales growth ✓ Scarcity of cashless users held down profit margins FY 12/2018 FY 12/2019 Y-o-y Plan Attainment ratio Amount Ratio Sales 17,160 17,477 316 1.8% 17,482 100.0% Payment servic
Slide 10: Payment Agency Services in Details: Payment service
FY2019 Payment Agency Services in Details (Unit: Million yen) Payment service 210,165 216,262 Number of items processed 198,235 (in thousand items) 181,157 ✓ Minimal growth due to extended lead times for Account 系列3 transfer Paperless 系列2 payment Payment slip 系列1 settlement Sales service service lar
Slide 11: Payment Agency Services in Details: Status of payment innovation
FY2019 Payment Agency Services in Details Status of payment innovation ✓ Counter payment service - 3,762 adopter stores ✓ International remittances - Increase in Will-Call stores (Average number of remittances (day)) (Remittance amount (million yen)) International remittances (Number of registered u
Slide 12: FY2020 Business Results Projections
FY2020 Business Results Projections (Unit: Million yen) ✓ Organic growth in sales 44,000 million yen but aiming for PLAN 2020 FY 12/2019 FY 12/2020 projection Full year 1H 2H Full year 1H 2H Full year Change in amount Y-o-y Sales 19,874 20,327 40,202 21,273 22,727 44,000 3,798 9.4% Operating income
Slide 13: FY2020 Information Services Projection
FY2020 Information Services Projection (Unit: Million yen) ✓ In SI and software development, the market continues to be strong, targeting high growth ✓ In information processing, growth in RPA application contributing to profit FY 12/2019 FY 12/2020 projection Full year 1H 2H Full year 1H 2H Full ye
Slide 14: FY2020 Payment Agency Services Projection
FY2020 Payment Agency Services Projection (Unit: Million yen) ✓ Higher sales anticipated due to the expected launch of large project ✓ Planning for new services, with costs expected to weigh down profit margins FY 12/2019 FY 12/2020 projection Full year 1H 2H Full year 1H 2H Full year Change in amou
Slide 15: Medium-Term Management Plan Main Points: Key measures
Medium-Term Management Plan (3-Year Plan from Dec. 2020 to Dec. 2022) Main Points Key measures 1. Overseas business development 2. Transition from flow business to stock business 3. Proactive M&A
Slide 16: Medium-Term Management Plan (3-Year Plan from Dec. 2020 to Dec. 2022)
Medium-Term Management Plan (3-Year Plan from Dec. 2020 to Dec. 2022) (Unit: Million yen) Growth rate FY 12/2019 FY 12/2020 FY 12/2021 FY 12/2022 y -o-y Actual Plan Plan Plan Average Sales 40,202 44,000 48,700 54,000 10.3% Inf ormation serv ice 22,724 25,050 27,300 29,400 Pay ment agency serv ice 17
Slide 17: Transition from flow business to stock business
Medium-Term Management Plan - Key Measures Transition from flow business to stock business Tono IDC Expansion Plan Spring 2021 DSK Tono IT Business Park Projected locations for next-generation, new-type module expansion New-type modules to be expanded Tono IDC Tono BPO Center
Slide 18: Medium-Term Management Plan - Key Measures
Medium-Term Management Plan - Key Measures ✓ Start of convenience store payment service introduction for elementary school educational material sales nationwide Schools no longer need to collect payment! Scan QR code printed on application flyer Choose product DSK Payment Visit order page Enter chil
Slide 19: Long-term plan PLAN 2020
Long-term plan PLAN 2020 3 fields, 7 businesses - Achieve over 80% stock-type business 2020 ● Payment field ● Business processing field Net sales: (1) Payment agency services (5) BPO business ¥50 billion business (6) Development, operation and (2) Remittance services maintenance business business (7
Slide 20: Final year of PLAN 2020
Long-term plan PLAN 2020 Final year of PLAN 2020 ✓ Extent of achievement of PLAN 2020 (end of 2019) In 2020, targeting sales of 50 billion yen from seven core operations → including one operation in preparation (new payments business) Sales of 44,000 million → 6,000 million not achieved ✓ Measures f
Slide 21: Shareholder Returns
Shareholder Returns ✓ Annual ordinary dividend per share: ¥28 (interim dividend of ¥14 and year-end dividend of ¥14) 30 (Up 3.7%) Interim Year-end 25 Special dividend 14 20 13 14 2.5 12 13 11 12 15 10 9 10 7 13 13 14 11 11 12 12 5 8.5 10 7 0 FY 12/2011 FY 12/2012 FY 12/2013 FY 12/2014 FY 12/2015 FY
Slide 22: Thank you for your attention.
Challenge Innovation Thank you for your attention. Speed