ID Vision: Challenge, High Technology, Global and Creative
Information Development Co., Ltd.
FY2005 Semiannual Fiscal Summary
January 2006
1
Copyright©2006 Information Development Co., LTD All Rights Reserved
ID Vision: Challenge, High Technology, Global and Creative
Agenda
1. Semiannual Fiscal Result & Annual
Forecast
2.　Mid/Long Term Strategy
3.　Reference Materials
2
Copyright©2006 Information Development Co., LTD All Rights Reserved
ID Vision: Challenge, High Technology, Global and Creative
FY 2005
Semiannual Fiscal Result &
Annual Forecast
3
Copyright©2006 Information Development Co., LTD All Rights Reserved
ID Vision: Challenge, High Technology, Global and Creative
Highlight
• Revenue: 6.28 billions yen <Record setting performance>
(Y/Y +19.7%)
• Operating profit margin : 6.4％ (Y/Y +4.6point)
• Much improved labor productivity
• Extraordinary Loss :230millons yen
- Disposition of old company housing
• Interest-Bearing Debt decreased
• Numbers of Employees: 1,673 (Y/Y+6.1%)
• The most import point for our business expanding:
- Reinforcement of human resource
4
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ID Vision: Challenge, High Technology, Global and Creative
FY2005 Semiannual B/S (Consolidated)
(M yen)
Revenue
Operating profit
Operating profit
ratio
Recurring profit
Net profit
•
•
•
•
•
FY2004
semiannual
FY2005
semiannual
Y/Y
Forecast
5,249
96
1.8%
97
52
8.9
6,284
403
6.4%
+19.7%
+316 .4%
+4.6p
5,790
190
3.3%
394
89
15.1
+304 .7%
+69.8%
+70.0%
180
90
15.1
Net profit
Per share
Revenue & operating profit exceeded our target
Positive growth in all business segments
Specially, big growth in ITO&SI business segments
Operating profit much improved
- Even though outsourcing cost increased, labor productivity was much
improved
Extraordinary loss (Disposition of old company housing): 230M yen 5
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Trend of Monthly Revenue(parent)
30%
FY2005Q1/Q2
+19.7%
25%
20%
FY2004Q3/Q４
+5.9%
15%
Y/Y(%)
ID Vision: Challenge, High Technology, Global and Creative
35%
10%
5%
FY2004Q1/Q2
-3.1%
0%
-5%
-10%
-15%
2004/Q1
2004/Q2
2004/Q3
2004/Q4
2005/Q1
2005/Q2
6
Copyright©2006 Information Development Co., LTD All Rights Reserved
ID Vision: Challenge, High Technology, Global and Creative
Our Business Character:
Steady Growth & Stable Profitability
BUSINESS
CUSTOMERS
SI
IT
Telecom&Service
Others
Consulting&Security
Outsourcing
（ITO,BPO）
Strategic
Partners
Finance
• Outsourcing Business:
• Finance Customers:
• Direct Contracts:
CONTRACT
Others
Direct contracts
about 60%
about 50%
about 85%
7
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SI
Consulting
&Security
7 ,0 0 0
SI: System Integration
ITO: IT Outsourcing
BPO: Business Process Outsourcing
Consulting&Security
Outsourcing
(ITO,BPO)
6 ,0 0 0
5 ,0 0 0
SI
4 ,0 0 0
(M yen)
ID Vision: Challenge, High Technology, Global and Creative
Trend of Business Segments (Revenue)
BPO
3 ,0 0 0
2 ,0 0 0
Outsourcing Business: 60%
ITO
1 ,0 0 0
0
FY0 3 s e mian n u al
FY0 4 se mian n u al
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FY0 5 se mian n u al
8
ID Vision: Challenge, High Technology, Global and Creative
Revenue Detailed By Business Segments
Y/Y
FY2004 semiannual FY2005 semiannual
(M yen)
Revenue
Ratio
(A)
Revenue
Ratio
Revenue
(B)
P: Point
Change
(B) – (A)
SI
1,719
32.7% 2,147
34.2%
+24.9%
+1.5p
ITO
2,257
43.0% 2,708
43.1%
+20.0%
+0.1p
BPO
967
18.4% 1,017
16.2%
+5.2%
-2.2p
Consulting
&Security
306
411
6.6%
+34.3%
+0.8p
5.8%
<Major factors of Y/Y>
• SI : Recovery trend of IT investment in major our customers
(finance & public related, etc)
• ITO : Developed a big new customer(insurance related)
• BPO: Business growth in office work outsourcing
• Consulting&Security: Security business is going well
9
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IT
Telecom&Service
Others
70,000
Others
Finance
sales:1,048M yen
Y/Y:+4.4%
60,000
IT
Telecom&Service
50,000
(M yen)
ID Vision: Challenge, High Technology, Global and Creative
Revenue Detailed By Customers
Sales:2,153M yen
Y/Y:+41.1%
40,000
30,000
Finance
20,000
Sales:3,083M yen
Y/Y:+13.4%
10,000
0
FY03
FY04
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FY05
10
ID Vision: Challenge, High Technology, Global and Creative
FY2005 Semiannual B/S & C/F(Consolidated)
(M yen)
FY2004
FY2005
semiannual
semiannual
Y/Y
3,024
4,260
7,284
2,824
987
3,107
4,218
7,325
2,767
337
83
-42
41
-57
-650
4,341
4,433
92
245
76
-96
382
79
-42
137
3
54
-17
-23
-6
C/F From
Financial Activities
-317
-687
-370
Cash and Cash
Equivalents(Y/Y)
-169
-346
-177
1,171
870
-301
Current Assets
Fixed Assets
Total Assets
Liabilities
Interest-Bearing
Debt
Total Shareholder’s
Equity
C/F From
Operating Activities
Depreciation
C/F From
Investment
Plant and Equipment
Investment
Cash and Cash
Equivalents at Year-End
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General Points
・C/F from operating
activities improved
•Interest-bearing debt
decreased
•Cash at year-end:
870 M yen (for future
investments)
•Fixed Assets:
170M yen decreased
(Disposition of old
company housing)
•Shareholder’s equity
ratio: 60.5%
Financial structure is
11
stable
ID Vision: Challenge, High Technology, Global and Creative
FY2005 Annual Forecast
FY2004
FY2005 Forecast
※corrected by Dec. 9.2005
The First Forecast
(M yen)
Result
Amount
Y/Y
Amount
Revenue
11,378
12,630
+11.0%
12,300
+8.1%
Operating Profit
550
730
+32.7%
610
+10.9%
Operating Profit
Margin
4.8%
5.8%
+1.0p
5.0%
+1.1p
Recurring Profit
557
720
+29.2%
600
+7.7%
Net Profit
119
360
+200.6%
310 +160.5%
Net Profit
Per Share(yen)
17.8
58.2
+226.0%
49.9 +180.3%
Y/Y
• Recovery trend of IT investment in major our customers will continue.
• Outsourcing business will stably grow.
• Operating Profit Margin will be 5.8% that is higher than the first
target, because labor productivity is much improved.
12
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9.0%
14,000
8.0%
12,000
7.0%
10,000
6.0%
(M yen)
ID Vision: Challenge, High Technology, Global and Creative
Trend of Revenue＆Operating Profit(Annual)
8,000
5.0%
6,000
4.0%
4,000
Our Target Range:operating profit 5-6%
3.0%
2.0%
2,000
1.0%
0
FY97
FY99
FY01
revenue
FY03
0.0%
FY05(forecast)
operating profit
13
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ID Vision: Challenge, High Technology, Global and Creative
Mid/Long Term Strategy
14
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• Stable growth in ITO business
• Market development with strategic alliance partners (IBM etc.)
• Reinforcement of human resource
20,000
18,000
Revenue
+
M&A
Target annual growth ratio: 5-10%
(Next 5 years + α)
16,000
14,000
Average growth ratio: 5.4%
(FY200 to 05)
12,000
(M yen)
ID Vision: Challenge, High Technology, Global and Creative
To Create Company Value
Target operating
profit margin:
around 5-6%
10,000
8,000
6,000
4,000
2,000
0
FY00
FY05
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Next 5years +α
15
ID Vision: Challenge, High Technology, Global and Creative
Our Growing Step
Market Development
ITO
Future
Customer
Diversification
BPO
SI
Alliance
M&A
Present
Customer
SI Business
Present Business Area
Market Penetration
Product Development
Present Service
Future Service
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16
ID Vision: Challenge, High Technology, Global and Creative
Enhancement of our ITO Strength
IT Outsourcing
Comparison of SI & ITO business ration
in our bench mark companies (FY2004)
80.0%
ID
A社
70.0%
60.0%
IT Outsourcing
business focusing
B社
50.0%
C社
40.0%
D社
E社
30.0%
G社
20.0%
System Integration
business focusing
10.0%
0.0%
0.0%
F社
H社
Ｉ社
Ｋ社
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
Ｊ社
100.0%
System Integration
※Total of the rate may not be 100% because of there are
other business in some companies.
Source:Our estimation by the materials
from bench mark companies
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17
ID Vision: Challenge, High Technology, Global and Creative
Target:
Steady Growth & Stable Profitability
Growth & Profitability in FY2004
I
n
v
e
s
t
m
e
n
t
14.0%
12.0%
R
e
t
R
u O
r
n I
C
C
O
a
p n
i
t
a
l
A社
ID 2005年度予想
10.0%
Ｊ社
ID
Ｉ社
8.0%
6.0%
Ｆ社
Ｄ社
G社
4.0%
Ｈ社
Ｋ社 ※ROIC=taxed operating profit margin÷ interest-bearing
Ｅ社
debt +total shareholders' equity in
※tax rate is as 40%
2.0%
-5.0%
Ｂ社
C社
0.0%
0.0%
5.0%
10.0%
15.0%
20.0%
growth ratio (average for last 2 years)
Source:Our estimation by the fiscal reports from bench mark companies 18
Copyright©2006 Information Development Co., LTD All Rights Reserved
Number of System Management Engineers : 909
※BPO (139) is not included
1,800
9.0
1,600
8.0
1,400
7.0
1,200
6.0
1,000
5.0
800
600
•Woman Employment (ITO16.4%、BPO98.9%)
•Meister Employment (Experienced aged people)
•Offshore business for SI Business (ID Wuhan)
+
400
3.0
2.0
Training － BSC Management
200
4.0
Revenue per Employee (M yen)
(First ranked in IT Service Industry)
Employees
ID Vision: Challenge, High Technology, Global and Creative
Key point for business growth:
Reinforcement of Human Resource
1.0
0
0.0
F Y9 7
F Y9 9
F Y0 1
Number of Employees
F Y0 3
F Y0 5 (fo r e c as t )
Revenue per Employee
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19
To achieve future business expansion
ID Vision: Challenge, High Technology, Global and Creative
Productivity (Revenue per an employee)
•Partners Using
•Price up
Training
•Efficiency up
Future business style
Present business style
Number of Employees
20
Copyright©2006 Information Development Co., LTD All Rights Reserved
ID Vision: Challenge, High Technology, Global and Creative
Our Mission : will be achieved by CSR
To devote ourselves to build
wonderful society in the future
through our information
service business
Increasing of company value by penetration of CSR
21
Copyright©2006 Information Development Co., LTD All Rights Reserved
ID Vision: Challenge, High Technology, Global and Creative
Exclusion
In these materials, statements that expect for the
historical data, involve our expectation, strategies
and plan based on information currently available
to management.
These forward-looking statements involve some
risks such as economy &market condition changes,
also, uncertainties and other factors that may
cause actual results and achievements to differ
from those anticipated in these statements.
22
Copyright©2006 Information Development Co., LTD All Rights Reserved
ID Vision: Challenge, High Technology, Global and Creative
Reference Materials
23
Copyright©2006 Information Development Co., LTD All Rights Reserved
Revenue&Operating Profit Margin (parent)
14,000
15.0%
Operating Profit Margin
13.0%
12,000
Revenue
11.0%
Operating Profit Margin
10,000
9.0%
8,000
7.0%
6,000
5.0%
4,000
3.0%
2,000
1.0%
-1.0%
Copyright©2006 Information Development Co., LTD All Rights Reserved
FY04
FY05(forecast)
FY03
FY02
FY01
FY99
FY00
FY97
FY98
FY95
FY96
FY94
FY93
FY92
FY91
FY90
FY89
FY88
FY86
FY87
FY84
FY85
FY82
FY83
FY81
FY80
FY79
FY78
FY77
FY76
FY75
FY73
FY74
FY71
FY72
FY70
0
FY69
Revenue(M yen)
ID Vision: Challenge, High Technology, Global and Creative
Our status①
Trend of Revenue&Operating Profit Margin (from foundation)
24
Our status②
About Our 4 Business Segments
ID Vision: Challenge, High Technology, Global and Creative
Result
Revenue Y2004
(B yen)
Rate(%)
Future
Average
(2 years
recently)
Profitab
ility/Sta
bility
Growing
Image
Profitabilit
y/Stability
(%)
Market Information （By JISA）
IT Service Industry size：　14,527 B yen
Market Scale
Y2004
（B yen）
Software
Development
S
I
4.0
35.4
1.3
△/△
Recover
Expecting
B
P
O
O
T
H
E
R
4.6
40.5
11.9
〇/◎
Keep
Growing
Y/Y
（％）
46.7
102.2
10.4
104.3
16.8
98.7
12.7
106.9
2.2
102.6
6,786
〇/△
Software Product
1,507
I
T
O
Rate
（％）
Information Process
Service
〇/◎
2,439
System Management
1,507
2.0
0.8
17.2
7.0
7.4
21.7
〇/◎
△/〇
Keep
Growing
〇/〇
Keep
Growing
〇/〇
Database Service
320
This area is part of the above
business segments.
25
S
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