Comsys Holdings Corporation · TSE:1721
Comsys — H1 FY2024 Earnings Presentation
37 slides from Comsys's earnings presentation, Nov 16, 2023
Slide 1: Presentation of Performance for the First Half Fiscal Year Ending March 31, 2024
Presentation of Performance for the First Half Fiscal Year Ending March 31, 2024 November 16, 2023
Slide 2: Contents
1 Contents IV. Enhancement of Corporate Value I. Highlights of Financial Statements ü Major Issues and Sustainability … 21 ü Highlights of Financial Statements for Q2 FYE Mar. 2024 … 3 ü Sustainability Initiatives … 22-23 II. Overview of Performance for Q2 FYE Mar. 2024 V. Shareholder Returns ü Orde
Slide 3: I. Highlights of Financial Statements
I. Highlights of Financial Statements
Slide 4: Highlights of Financial Statements for Q2 FYE Mar. 2024
3 Highlights of Financial Statements for Q2 FYE Mar. 2024 YoY Growth Sales Growth (+6.1%) Business Net Sales Profit Growth (+1.7 p.p.) ¥124.8 billion (YoY +15.5%) Limit for Women Treasury Shares Acquisition of Serving as Director 8 million shares Treasury Shares 1 Retired ¥1.0 billion Elected Increa
Slide 5: II. Overview of Performance for Q2 FYE Mar. 2024
II. Overview of Performance for Q2 FYE Mar. 2024
Slide 6: Orders Received/Net Sales
5 Orders Received/Net Sales Growth Business offset decline in telecom carrier-related business, and total orders received/net sales increased year on year. Orders Received Net Sales (Unit: ¥100 million) (Unit: ¥100 million) Progress Rate 48.4% 52.9% 41.0% 43.0% +140 (6.1%) 2,448 +337 3,015 2,308 (12
Slide 7: Operating Profit/Profit Attributable to Owners of Parent
6 Operating Profit/Profit Attributable to Owners of Parent Profit increased year on year, mainly due to completion of profitable projects ahead of schedule and the increase in total net sales. Operating Profit Profit Attributable to Owners of (Unit: ¥100 million) Parent (Unit: ¥100 million) Progress
Slide 8: Contract Backlogs
7 Contract Backlogs The contract backlog in Growth Business increased on the strong orders received. Contract backlog at beginning of 3Q (Unit: ¥100 million) 2,549 +94 (3.9%) 2,506 2,411 YoY Change Social 1,032 System 1,017 1,122 +105 (10.3%) IT 334 405 421 +16 (4.0%) NCC 171 174 183 +9 (5.4%) NTT 1
Slide 9: III. Business Overview by Segment for FYE Mar. 2024
III. Business Overview by Segment for FYE Mar. 2024
Slide 10: Telecom Carrier-Related Business (NTT/NCC)
9 Telecom Carrier-Related Business (NTT/NCC) Strengthen Group collaboration and continue to take on the challenge of new business domains. Orders Received (Unit: ¥100 million) NTT 2,570 Ø Share business resources with Growth Business by raising productivity in existing domains Ø Take on the challeng
Slide 11: Initiatives on New Telecom Carrier-Related Business Domains
10 Initiatives on New Telecom Carrier-Related Business Domains Contribute to topline expansion by collaborating and sharing resources with Growth Business. Expansion Leverage engineering capabilities cultivated in the telecom carrier-related business to expand peripheral-related business Growth DCI
Slide 12: Initiatives on Telecom Carrier-Related Peripheral Business
11 Initiatives on Telecom Carrier-Related Peripheral Business Maximize the advantages of regional brands. Initiative example 1 Initiative example 2 Acquiring orders from new telecommunications companies Acquiring orders from infra-sharing companies Steady progress in Market gradually Telecommu recei
Slide 13: IT Solutions Business
12 IT Solutions Business Capitalize on rising DX needs and expand orders received, mainly for public sector projects. Orders Received (Unit: ¥100 million) 1,170 Compared to targets Progress Rate 55.2% Ø Strengthen initiatives to secure favorable order receipts next fiscal year and beyond, mainly for
Slide 14: Strategy in the IT Solutions Business
13 Strategy in the IT Solutions Business Expand orders received in each market through integrated management in Tokyo metropolitan area. Prime Alliance Secondary Public sector, local government, etc. System integrators, etc. NTT Group, etc. Shift to new business domains and endeavor to create new bu
Slide 15: IT Solutions Business (Topics)
14 IT Solutions Business (Topics) Promote customer DX projects by supporting construction and operation of cloud environments. Microsoft 365 Google Cloud Japan Post Bank A National University • Proposing to improve, operate, and maintain operations • Construction of AI learning cloud infrastructure
Slide 16: Main IT Solutions Business Orders Received in the First Half
15 Main IT Solutions Business Orders Received in the First Half Advantages for achieving full-year target due to multiple orders received for large-scale projects. p A public organization: Construction of common telecommunications infrastructure p A public organization: Construction of security gate
Slide 17: Social System-Related Business
16 Social System-Related Business Work to receive large-scale orders in the second half also, mainly data center (DC) projects. Orders Received (Unit: ¥100 million) Compared to targets Ø Strengthen initiatives aimed at DC market, which is expected to expand 1,960 Progress Rate 55.1% Ø Steadily acqui
Slide 18: Strategy in the Social System-Related Business
17 Strategy in the Social System-Related Business Focus on initiatives for DC and DCI work, where investment is booming. ■Forecast for core business: Shift from solar to DC ü DC: Construction of a full set of electric, air conditioning, and communication facilities (Unit: ¥100 million) DC Large-scal
Slide 19: Social System-Related Business (Topics)
18 Social System-Related Business (Topics) Receive orders for large-scale expressway facility projects through Groupwide collaboration efforts. Social System-Related Business (Topics) • Areas: Tokyo metropolitan area and Tohoku region • Installation of wireless antennas, smart interchange system, pa
Slide 20: Main Social System-Related Business Orders Received in the First Half
19 Main Social System-Related Business Orders Received in the First Half Steadily received orders for planned large-scale projects. p PFI project for undergrounding of electric power lines (Approx. ¥1.0 billion) p Horizontal directional drilling (HDD) transmission line project (Approx. ¥1.0 billion)
Slide 21: IV. Enhancement of Corporate Value
IV. Enhancement of Corporate Value
Slide 22: Major Issues and Sustainability
21 Major Issues and Sustainability To enhance corporate value by contributing to society through business activities. SDGs the Company Major Issues Main Initiatives Contributes to ■Pursue business activities that meet society’s diversifying infrastructure needs Contribute to local ■Develop new techn
Slide 23: Sustainability Initiatives
22 Sustainability Initiatives Acquisition of Science Based Targets (SBT) certification E Acquired SBT certification, which validates the Company’s greenhouse gas emission reduction targets, in October 2023 Promotion of switch to green power by Group companies E Plan to purchase 10GW (nearly 30% of t
Slide 24: Strengthening of corporate governance
23 Strengthening of corporate governance G Qualification of Directors other than Reduction in number of Directors the President to be chairman Diversification of the Board of Directors of the Board of Directors Strengthening of prompt and appropriate Maintaining and upgrading the independent Promoti
Slide 25: V. Shareholder Returns
V. Shareholder Returns
Slide 26: Shareholder Returns Policy
25 Shareholder Returns Policy Increased limit for acquisition of treasury shares by ¥1.0 billion based on financial results for first half. Completed acquisition of ¥2.0 billion in treasury shares and retirement of 8,000,000 shares in the first half Profit 280 Negative Profit Total Dividends 51 Good
Slide 27: (Reference) Trend of Dividends, etc.
26 (Reference) Trend of Dividends, etc. Aim to continue increasing the dividend and improving EPS and ROE in the current fiscal year. ¥105 Trend for Dividends ¥100 Year-end 50 50 55 45 40 30 25 20 Interim 15 15 20 35 40 45 50 50 10 25 30 15 15 20 10 10 Mar. 2013 Mar. 2014 Mar. 2015 Mar. 2016 Mar. 20
Slide 28: Data Book
Data Book A = ee
Slide 29: I. Consolidated Statements of Income (COMSYS.HD Consolidated)
28 I. Consolidated Statements of Income (COMSYS.HD Consolidated) For the Six Months Ended September 30, 2023 (Unit: ¥100 million) FY March 2023 FY March 2024 (Reference) FY March 2023 1st Half Year 1st Half Year Difference (c) Percentage Full Year Progress Full Year Progress Results Results differen
Slide 30: II-1. Income Statements [by operating company group]
29 II-1. Income Statements [by operating company group] For the Six Months Ended September 30, 2023 (Unit: ¥100 million) ◆ Comparisons with Nippon COMSYS-G SANCOM-G TOSYS-G TSUKEN-G the Previous Term FY Mar. 2023 FY Mar. 2024 FY Mar. 2023 FY Mar. 2024 FY Mar. 2023 FY Mar. 2024 FY Mar. 2023 FY Mar. 2
Slide 31: II-2. Income Statements [by operating company group]
30 II-2. Income Statements [by operating company group] For the Six Months Ended September 30, 2023 (Unit: ¥100 million) ◆ Comparisons with NDS-G SYSKEN-G Hokuriku Denwa Kouji-G COMSYS JOHO SYSTEM-G the Previous Term FY Mar. 2023 FY Mar. 2024 FY Mar. 2023 FY Mar. 2024 FY Mar. 2023 FY Mar. 2024 FY Ma
Slide 32: III. Orders Received, Net Sales, and Contract Backlogs by Business Area
31 III. Orders Received, Net Sales, and Contract Backlogs by Business Area (COMSYS.HD Consolidated) (Unit: ¥100 million) ◆ Orders Received FY March 2023 FY March 2024 (Reference) FY March 2023 (Six months ended September 30) 1st Half Year 1st Half Year Difference (c) Percentage Full Year Progress Fu
Slide 33: IV. Orders Received and Net Sales by Detailed Business Area
32 IV. Orders Received and Net Sales by Detailed Business Area for Eight Companies on a Non-Consolidated Simple Sum Basis (Unit: ¥100 million) ◆ Orders Received FY March 2023 FY March 2024 (Reference) FY March 2023 (Six months ended September 30) 1st Half Year 1st Half Year Difference (c) Percentage
Slide 34: V. Capital Expenditure, Depreciation and Amortization
33 V. Capital Expenditure, Depreciation and Amortization (Unit: ¥100 million) FY March 2023 FY March 2024 FY March 2024 Comparisons with the previous term 1H Results 1H Results Percentage Full Year Targets Progress Rate Difference difference Tangible Assets 29 51 21 71.6% 93 54.9% Capital Expenditur
Slide 35: VI. Consolidated Balance Sheets (Condensed)
8 VI. Consolidated Balance Sheets (Condensed) ASSETS (Unit: ¥100 million) LIABILITIES AND NET ASSETS (Unit: ¥100 million) 5,021 5,021 -281 4,740 -281 4,740 Current (-335) Liabilities • Notes payable, accounts payable for construction -214 1,344 contracts and other (-277) • Short-term borrowings -2 1
Slide 36: VII. Consolidated Cash Flow (Condensed)
35 VII. Consolidated Cash Flow (Condensed) (Unit: ¥100 million) Cash Flows from Cash Flows from Operating Activities Investing Activities +292 -55 Cash Flows from • Purchase of property, plant Financing Activities • Profit before income taxes +148 and equipment -50 • Depreciation +51 • Purchase of i
Slide 37: COMSYS Group Management Philosophy
— COMSYS Group Management Philosophy — At the COMSYS Group, we are united as a Group and strive for strong partnership and collaboration with diverse external players in achieving our management philosophy. • We will build a company that customers continue to choose through the construction of diver