PRESENTATION MATERIAL OF FINANCIAL RESULTS
FOR THE SECOND QUARTER OF FY2021 (FROM JANUARY 1, 2021 TO JUNE 30, 2021)
July 29, 2021
Information Services International-Dentsu, Ltd.
Note: This English translation is solely for reference purposes and not a legally definitive translation of the original Japanese text.
In the event a difference arises regarding the meaning herein, the original Japanese version will prevail as the official authoritative version.
COPYRIGHT INFORMATION SERVICES INTERNATIONAL-DENTSU,LTD.
Financial results
for the second quarter of FY2021
Note:
From the first quarter of the current consolidated fiscal year, the Enterprise IT division, which is engaged in the development and implementation of mission-critical systems, was transferred from the Business Solutions segment to the Communication IT segment, establishing a structure that provides integrated support from the marketing domain to mission-critical operations. The figures for the second quarter of the previous consolidated fiscal year and the second quarter of the current consolidated fiscal year have not been reclassified because it is not practicable to prepare the reportable segments for the same period as the respective comparative periods.
COPYRIGHT INFORMATION SERVICES INTERNATIONAL-DENTSU,LTD. | 1 |
1. Consolidated Results for the 2Q of FY2021 (cumulative)
Vs. initial forecast
Year on year
Interim dividends
Sales and profit increased mainly due to higher sales in Manufacturing Solutions and Communication IT.
Orders received reached record highs for the first half, but sales and profit decreased due to the peak-out of several large-scale projects.
Implemented ¥26 per share in line with initial forecast.
(Unit : Millions of yen)
Vs. initial forecast | YoY | |||||||||
2Q of FY2021 | (announced on February 10, 2021) | |||||||||
(cumulative) | Forecast | Variance | % change | 2Q of FY2020 | Variance | % change | ||||
(cumulative) | ||||||||||
Net sales | 54,293 | 53,300 | +993 | +1.9 | 55,020 | -727 | -1.3 | |||
Gross profit | 19,020 | 18,849 | +171 | +0.9 | 19,163 | -143 | -0.7 | |||
Profit margin | 35.0% | 35.4% | -0.4p | - | 34.8% | +0.2p | - | |||
Selling, general and | 12,494 | 12,849 | -355 | -2.8 | 12,192 | +302 | +2.5 | |||
administrative expenses | ||||||||||
Operating profit | 6,525 | 6,000 | +525 | +8.8 | 6,971 | -446 | -6.4 | |||
Operating margin | 12.0% | 11.3% | +0.7p | - | 12.7% | -0.7p | - | |||
Ordinary income | 6,443 | 5,900 | +543 | +9.2 | 6,862 | -419 | -6.1 | |||
Profit attributable to | 4,392 | 4,000 | +392 | +9.8 | 4,512 | -120 | -2.7 | |||
owners of parent | ||||||||||
Average number of | 3,180 | 3,210 | -30 | -0.9 | 2,959 | +221 | +7.5 | |||
employees during the period | ||||||||||
COPYRIGHT INFORMATION SERVICES INTERNATIONAL-DENTSU,LTD. | 2 |
2-1. Factors for Increase/Decrease in Operating Profit (vs. initial forecast)
(Unit : 100 million yen)
Vs. initial
forecast
+5.2
Operating
profit
60.0
2Q of FY2021
(cumulative)
initial forecast
Impact of decrease in gross | Decrease in SG&A | Operating | ||||
expenses | +3.5 | profit | ||||
Effect of | Increase | profit margin | -1.8 | 65.2 | ||
in sales | +3.5 | |||||
Decrease in gross profit margin | Decrease mainly in | |||||
travel and outsourcing | ||||||
vs. forecast | -0.4p | |||||
expenses | ||||||
(Gross profit margin of 35.0% is | ||||||
a record high for the first half.) | ||||||
2Q of FY2021 | ||||||
(cumulative) | ||||||
result |
COPYRIGHT INFORMATION SERVICES INTERNATIONAL-DENTSU,LTD. | 3 |
2-2. Factors for Increase/Decrease in Operating Profit (YoY)
Operating
profit
69.7
2Q of FY2020
(cumulative)
result
Effect of decrease | ||||
in sales | ||||
-2.5 | Impact of increase in gross | |||
profit margin | +1.0 |
Increase in gross profit margin | |
mainly from consulting services | |
and software products | +0.2p |
(Unit : 100 million yen)
YoY
Increase in SG&A-4.5
expenses -3.0
Operating
profit
Increase in personnel65.2 expenses from growth
in staff, etc.
2Q of FY2021
(cumulative)
result
COPYRIGHT INFORMATION SERVICES INTERNATIONAL-DENTSU,LTD.
4
3. Net Sales and Operating Income by Reportable Segment
(Unit : Millions of yen) | ||||||||||
Reportable segment | 2Q of | YoY | Vs. initial forecast | |||||||
FY2021 | Variance | % change | Overview | Variance | % change | |||||
(cumulative) | ||||||||||
Net sale | 11,804 | -420 | -3.4 | Net sales decreased mainly due to the postponement | -418 | -3.4 | ||||
Financial | Operating | 520 | -346 | -40.0 | of the recording of sales for large-scale project, | - | - | |||
profit | despite the expansion of BANK・R and DX-support | |||||||||
Solutions | projects by financial institutions. Operating profit also | |||||||||
% | 4.4 | -2.7p | - | |||||||
declined due to the impact of lower sales and an | ||||||||||
employees | 791 | +72 | +10.0 | increase in the cost of sales of some projects. | - | - | ||||
Net sale | 7,718 | -3,167 | -29.1 | Net Sales and operating profit declined due to a | +143 | +1.9 | ||||
Operating | - | - | ||||||||
Business | 1,231 | -489 | -28.4 | decline in sales in this division following the | ||||||
profit | ||||||||||
Solutions | transfer of the Enterprise IT division. However, the | |||||||||
% | 15.9 | +0.1p | - | business performed well, centered on POSITIVE, | ||||||
employees | 412 | -151 | -26.8 | Ci*X, and CCH Tagetik. | - | - | ||||
Net sale | 15,637 | +106 | +0.7 | Net sales and operating profit increased due to the | +519 | +3.4 | ||||
Manufacturing | Operating | 1,511 | +254 | +20.2 | expansion of DX support projects that | - | - | |||
profit | comprehensively provide from consulting to system | |||||||||
Solutions | development, in-house and third-party software for the | |||||||||
% | 9.7 | +1.6p | - | |||||||
automotive, electric/precision equipment industries, | ||||||||||
employees | 668 | +20 | +3.1 | which aim to innovate their entire value chain. | - | - | ||||
Net sale | 19,132 | +2,754 | +16.8 | Despite the peak-out of several large-scale projects, | +748 | +4.1 | ||||
Operating | - | - | ||||||||
Communication | 3,261 | +135 | +4.3 | both net sales and operating profit increased due to an | ||||||
profit | ||||||||||
IT | increase in DX support projects for customers, mainly in | |||||||||
% | 17.0 | -2.1p | - | the marketing area, and the transfer and integration of | ||||||
the Enterprise IT division. | - | - | ||||||||
employees | 716 | +263 | +58.0 | |||||||
* BANK・R: next-generation financing | solution POSITIVE : human capital management solution Ci*X : financial solution system CCH Tagetik : business management solution | 5 | ||||||||
COPYRIGHT INFORMATION SERVICES INTERNATIONAL-DENTSU,LTD. |
Ref.) Supplementary information on Reportable Segment
For comparative purposes, the reference figures for the second quarter cumulative period of FY2020 is adjusted for Enterprise IT division's net sales and operating profit. The comparison with the reference values is as follows.
Business Solutions: Sales and profits increased due to the expansion of sales and installation
projects of third-party software such as CCH Tagetik. Communication IT : Despite the acquisition of new projects, mainly in the marketing area,
sales and profits decreased due to the peak-out of several large-scale projects.
(Unit : Millions of yen) | ||||||||||
Comparison with reference figures | ||||||||||
Reportable segment | 2Q of FY2021 | Reference figures | ||||||||
(cumulative) | ||||||||||
for 2Q of FY2020 | Variance | % change | ||||||||
(cumulative) | ||||||||||
Net sales | 7,718 | 7,303 | +415 | +5.7 | ||||||
Business | Operating | 1,231 | 1,146 | +85 | +7.4 | |||||
Solutions | profit | |||||||||
% | 15.9 | 15.7 | +0.2p | - | ||||||
Net sales | 19,132 | 19,960 | -828 | -4.1 | ||||||
Communication | Operating | 3,261 | 3,700 | -439 | -11.9 | |||||
IT | profit | |||||||||
% | 17.0 | 18.5 | -1.5p | - | ||||||
COPYRIGHT INFORMATION SERVICES INTERNATIONAL-DENTSU,LTD. | 6 |
Ref.) Consolidated Results for the 2Q (April - June) of FY2021
Net sales
Operating profit
Net sales decreased due to the peak-out of several large-scale projects and the postponement of sales of large-scale projects in the financial solutions business to the second half of the fiscal year.
Decrease due to lower gross profit margin and higher SG&A expenses, in addition to the impact of lower sales.
(Unit : Millions of yen)
YoY | |||||
2Q of FY2021 | |||||
(April - June) | 2Q of FY2020 | Variance | % change | ||
(April - June) | |||||
Net sales | 26,797 | 28,654 | -1,857 | -6.5 | |
Gross profit | 9,425 | 10,185 | -760 | -7.5 | |
Profit margin | 35.2% | 35.5% | -0.3p | - | |
Selling, general and | 6,627 | 6,508 | +119 | +1.8 | |
administrative expenses | |||||
Operating profit | 2,798 | 3,676 | -878 | -23.9 | |
Operating margin | 10.4% | 12.8% | -2.4p | - | |
COPYRIGHT INFORMATION SERVICES INTERNATIONAL-DENTSU,LTD. | 7 |
4. Consolidated Net Sales by Service Category
(Unit : Millions of yen)
YoY | Vs. initial forecast | ||||||||
Service category | 2Q of | ||||||||
FY2021 | Variance | % change | Overview | Variance | % change | ||||
(cumulative) | |||||||||
Consulting Services | 3,249 | +230 | +7.6 | Increase in Communication IT and | +357 | +12.3 | |||
Financial Solutions. | |||||||||
Custom System | 13,464 | -1,531 | -10.2 | Decrease in Financial Solutions and | -2,291 | -14.5 | |||
Development | Communication IT. | ||||||||
In-house Software | 11,441 | +1,317 | +13.0 | Increase in Communication IT (iPLAss) and | +1,006 | +9.6 | |||
Financial Solutions (Bank・R). | |||||||||
Third-party Software | 16,452 | -247 | -1.5 | Increase in Business Solutions (CCH Tagetik), | +736 | +4.7 | |||
but decrease in Communication IT (ERP, etc.). | |||||||||
Outsourcing, Operation | 5,590 | -500 | -8.2 | Decrease in Communication IT. | +302 | +5.7 | |||
and Maintenance Services | |||||||||
IT Equipment Sales | 4,094 | +4 | +0.1 | Almost same level as in 2Q of FY2020. | +883 | +27.5 | |||
and Others | |||||||||
* iPLAss : marketing platform | |||||||||
COPYRIGHT INFORMATION SERVICES INTERNATIONAL-DENTSU,LTD. | 8 |
5. Consolidated Net Sales by Industry
(Unit : Millions of yen) | ||||||||
Industry | 2Q of FY2021 (cumulative) | YoY | ||||||
Net Sales | Composition Ratio (%) | Variance | % change | |||||
Banks | 9,127 | 16.8 | -686 | -7.0 | |
Other financial | 2,369 | 4.4 | +241 | +11.3 | |
institutions | |||||
Financial | 11,496 | 21.2 | -445 | -3.7 | |
Transportation | 8,282 | 15.3 | -85 | -1.0 | |
equipment | |||||
Electric appliances | 5,477 | 10.1 | +875 | +19.0 | |
Precision instruments | |||||
Machinery | 3,468 | 6.4 | +64 | +1.9 | |
Other products | 4,120 | 7.6 | -145 | -3.4 | |
Manufacturing | 21,347 | 39.3 | +708 | +3.4 | |
Services and public offices | 16,885 | 31.1 | -1,474 | -8.0 | |
Distributions and others | 4,564 | 8.4 | +483 | +11.8 |
- As reviewed some of our customers' industries, we used reclassified figures for comparison in the same period of the previous fiscal year.
6. Net Sales for Dentsu Group
Dentsu Group Inc. and | 11,849 | 21.8 | -2,615 | -18.1 | ||
it's subsidiaries | ||||||
COPYRIGHT INFORMATION SERVICES INTERNATIONAL-DENTSU,LTD. | 9 |
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ISID - Information Services International - Dentsu Ltd. published this content on 29 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2021 06:06:24 UTC.