Densan System Holdings Co. Ltd. · TSE:4072
Densan System — Q1 2023 Earnings Presentation
21 slides from Densan System's earnings presentation, Jun 1, 2023
Slide 1: Presentation Materials for the 1Q FY2023 Results Briefing
Densan System Holdings Co., Ltd. Presentation Materials for the 1Q FY2023 Results Briefing Tokyo Stock Exchange Prime Nagoya Stock Exchange Premier Securities Code: 4072 Forward-looking statements contained in this document are based on current estimates and projections and include potential risks a
Slide 2: Table of Contents
Table of Contents ▸ 1Q FY2023 Business Results Highlights P3 ▸ 1Q FY2023 Transition in Quarterly Business Results P4 ▸ 1Q FY2023 By Segment P5 ▸ 1Q FY2023 Information Services Summary P6 ▸ 1Q FY2023 Information Services in Detail P7 ▸ 1Q FY2023 Payment Agency Services Summary P10 ▸ 1Q FY2023 Payment
Slide 3: 1Q FY2023 Business Results Highlights
1Q FY2023 Business Results Highlights Net sales 14.596 billion yen (23.5% ⤴) Operating income 1.186 billion yen (94.1% ⤴) Net income attributable to shareholders of the parent company 773 million yen (37.6% ⤴) 3
Slide 4: Business Results Highlights
1Q FY2023 Business Results Highlights Unit: Million yen ▸ Orders for both information services and payment agency services were strong. ▸ Non-operating income of 200 million yen in the previous year's 1Q was eliminated this year, and the YoY ratios of ordinary income and net income are lower than th
Slide 5: By Segment
1Q FY2023 By Segment Unit: Million yen ▸ The low sales growth rate due to the impact of the new standard for revenue recognition will be resolved over time. ▸ Google Workspace sales increased due to an increase in the number of customers. In addition, profits increased in Google-related business due
Slide 6: Transition in Quarterly Business Results
1Q FY2023 Transition in Quarterly Business Results Unit: Million yen ▸ Sales of stock transactions were almost in line with the plan, and sales were strong. ▸ Large spot sales of merchandise and product sales were also recorded in 1Q. ▸ Profit increased due to an increase in handling of newly acquir
Slide 7: Information Services Summary
1Q FY2023 Information Services Summary Unit: Million yen ▸ Both sales and profit increased. Various SI projects and sales of information security products were strong. Large-scale Google Workspace projects started operations, and invoice preparation services remained strong. Sales were boosted by la
Slide 8: Information Services in Detail (Google Business)
1Q FY2023 Information Services in Detail (Google Business) ▸ Sales increased 35.3% YoY. ▸ ChromeBook sales picked up. Net sales Number of Google (Google Workspace) installations (million yen) (Number of installations) ▸ Sales increased due to the operation of large Google Workspace projects. ▸ Numbe
Slide 9: Information Services in Detail (BPO Business)
1Q FY2023 Information Services in Detail (BPO Business) ▸ Invoice preparation services performed well. Net sales Number of items processed (million yen) (in thousand items) ▸ Number of items processed decreased from the previous fiscal year. ▸ Focused on multi-invoice services. ▸ Focused on sales of
Slide 10: Payment Agency Services Summary
1Q FY2023 Payment Agency Services Summary Unit: Million yen ▸ New acquisitions were strong (approximately 50 companies per month). ▸ Sales and profit increased due to steady growth in newly acquired customers following the 4Q of the previous year. ▸ Profit increased due to increased use of smart pho
Slide 11: Payment Agency Services in Detail
1Q FY2023 Payment Agency Services in Detail (Payment and Collection Agency Services / Online Payment Services) ▸ Cashless settlement using smartphones Number of items processed is expanding. (in thousand items) ▸ Number of payment slip settlements (termination of contracts with some large customers)
Slide 12: Payment Agency Services in Detail (Remittance / Peripheral)
1Q FY2023 Payment Agency Services in Detail (Remittance Services / Payment Agency Peripheral Services) Number of items processed ▸ Number of international remittances (in thousand items) decreased. Domestic remittance International remittance The reasons include the coronavirus, yen appreciation, an
Slide 13: Long-Term Plan: Challenge 1000
Long-Term Plan December 2021 to December 2027 Challenge 1000 2027 Net sales 100 billion yen Taking on the challenge to become a company with Information service ¥100 billion in net sales by 2027! ・BPO services ・Software development, operation, and maintenance services ・Medical services The coming of
Slide 14: Long-Term Plan: Challenge 1000 Initiatives
Long-Term Plan December 2021 to December 2027 Challenge 1000 Taking on the challenge to become a company with ¥100 billion in net sales by 2027! DSK Transformation (DX, self-transformation to create new value) Strengthen collaboration among Group companies (creation of new services, cross-selling) E
Slide 15: What should be done to achieve Challenge 1000?
Medium-Term Plan December 2023 to December 2025 What should be done to achieve Challenge 1000? DSK Transformation → From contracted development to packaged services From paper-based to paperless Improve efficiency of back-end operations Strengthen collaboration among Group companies → Strengthen and
Slide 16: Medium-Term Plan December 2023 to December 2025
Medium-Term Plan December 2023 to December 2025 Unit: Million yen ▸ Challenge 1000 will be an important 3-year period, with a determination to accomplish what we set out to achieve. ▸ Gradually increase the profit margin (overall) over a period of three years. ▸ Looking at the growth rate YoY, we ha
Slide 17: Topics: Google Maps Platform mobility services
1Q FY2023 Topics ▸ Started providing support for introduction of Google Maps Platform mobility services (GOGA) Achieve smooth operational linkage for expanding food delivery, home delivery, etc., to improve operational efficiency and resolve issues 17
Slide 18: Topics: Evolution of TREE PAYMENT
1Q FY2023 Topics ▸ Evolution for "TREE PAYMENT," a payment service platform (Densan System) March 10, 2023: Launch of "TREE PAYMENT Account Transfer —100% Deposit Guarantee service—" a credit guarantee type account transfer service March 29, 2023: Integration with "EngagePlus," a message delivery se
Slide 19: Topics: Business alliance with Newnet Secure Transactions
1Q FY2023 Topics ▸ First business alliance in Japan with Newnet Secure Transactions, Inc. (Densan System and DS Technologies) By using NewNet's Secure Transaction Cloud (STC) system, a payment gateway system compliant with the latest cloud technology to handle the huge volume of communication traffi
Slide 20: Topics / Impact of Social Conditions
1Q FY2023 Topics / Impact of Social Conditions Information service segment Although the impact of foreign exchange (yen depreciation) is becoming more moderate, the impact of higher prices and labor costs is expected to grow in the future. Increases in purchase prices for equipment, paper, etc., uni
Slide 21: Dividends
Dividends ▸ FY2022: Annual ordinary dividend of ¥35 per share (interim dividend of ¥17 and year-end dividend of ¥18) ▸ FY2023 forecast: Annual ordinary dividend of ¥37 per share (interim dividend of ¥18 and year-end dividend of ¥19) Commemorative dividend for the transition to a holding company stru
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