ID : Financial Results Presentations Full Year(23/4/1 24/3/31)

ID Holdings Corporation

April 1, 2023 - March 31, 2024

Financial Results Presentations

President, Representative Director	TSE Prime Market	4709
and Group CEO
Code
Masaki Funakoshi

* Our website can be accessed from the

QR Code.

May 23, 2024

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Change or Die !

1 Performance Overview for FY2023

2	Business focus for FY2024

3	Mid-Term Management Plan

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2

(+0.7P YOY)

Change or Die !

Overview of Financial Results for FY2023

Achieved record-high net sales and operating income and increased sales and profits for the third consecutive year!

Net Sales ¥32,680 million（+5.1% YoY）

• System management; cybersecurity, consulting and training; and IT infrastructure all trended favorably.

Operating Income ¥2,769 million（+14.2% YoY） Operating Income Margin 8.5%

• Rising sales drove up earnings
• High-marginDX-related business expanded ⊝ Returning value to employees

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3

Financial Results (Consolidated)

2023.32024.3

( million)

Results (% of net sales) Results (% of net sales)

Diff.

YoY

Change or Die !

Net sales

Cost of sales

Gross profit

SG&A expenses

EBITDA1

Operating income

Ordinary income

Net income attributable to owners of parent

Earnings per share (EPS) ()

EPS before amortization of goodwill2()

31,101	-	32,680	-	1,579	+5.1%
24,298	78.1%	25,527	78.1%	1,228	+5.1%
6,802	21.9%	7,153	21.9%	351	+5.2%
4,377	14.1%	4,384	13.4%	6	+0.2%
3,033	9.8%	3,421	10.5%	387	+12.8%
2,424	7.8%	2,769	8.5%	344	+14.2%
2,504	8.1%	2,860	8.8%	356	+14.2%
1,402	4.5%	1,777	5.4%	374	+26.7%
84.54	-	106.42	-	21.88	-
111.33	-	133.04	-	21.71	-

Note:

1. EBITDA = Operating income + Depreciation + Amortization of goodwill
2. EPS before amortization of goodwill = (Net income attributable to owners of parent + Amortization of goodwill) ÷ Interim average number of shares

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4

Change or Die !

Financial Results by Services

	Net Sales			Gross Profit		（¥ million）
31,101		32,680				7,153
	331	6,802
	+15	52
467		-135	(1.0%)	36	+42.6%	(0.7%)
(1.5%)	-29.1%			(0.5%)
			11,573			-417	2,117
11,458	+114	(35.4%)	2,535	(29.6%)
(36.8%)	+1.0%			-16.5%
		(37.3%)
			3,319				960
		+385			+339	(13.4%)
2,934	(10.2%)	621
+54.6%
(9.4%)	+13.1%	2,862	(9.1%)	796
2,602	+259	(8.8%)	644	+152	(11.1%)
(8.4%)	+10.0%			(9.5%)	+23.6%
13,637	+956	14,593	2,964	+261	3,226
+7.0%
(43.9%)	(44.7%)	+8.8%	(45.1%)
	(43.6%)

2023.3	2024.3	2023.3	2024.3
■ System Management	■ IT Infrastructure ■ Cybersecurity, Consulting and Training ■ Software Development ■ Others

Net Sales by Services

■ System Management

■ IT Infrastructure

■ Cybersecurity, Consulting and Training

■ Software Development

• New orders were received due to redoubling of sales efforts aimed at major IT vendors, while orders accepted from existing clients swelled
• Major projects were accepted from finance-related clients, transactions with major IT vendors expanded and orders accepted from transport- and manufacturing-related clients grew
• Orders accepted in consulting expanded and new projects in cybersecurity were obtained
• Transactions expanded as a result of strengthened sales efforts toward major IT vendors, while

orders accepted from public-sector and finance-related clients expanded ⊝Some projects wrapped up

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5

Net Sales of DX-related Business

DX-related business

Promoting customer's DX by combining existing IT services with cutting-edge technologies such as cloud, AI and IoT.

DX-related sales & sales ratio

55.5%

Change or Die

20,000

15,000

10,000

（¥ million）	47.6%	18,137
		297
45.6%	14,810	1,935
12,671	259	2,829
1,509
322
1,257	2,461

1,8777,749

Expanding focus on advanced system management, remote support, consulting, and cloud.

!

5,000

4,491

5,473

• Gross profit margin 】 24.7% (YoY+ 1.3P)

0

4,722 5,106 5,325

2022.3

2023.3

2024.3

About 5 points higher than non-DX-related business

Automation and Optimization
Consulting and Training
Cloud
Remote Support, Advanced Development & System Management*
Security and IT Infrastructure
*"Advanced System Management" has been added from the beginning of FY2023.	6
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Net Sales by Strategic Alliances

Change or Die !

Transactions with major, high-value customers that are actively investing in IT

account for over 80% of net sales.

(¥ million)

Figures in brackets indicate % of net sales

Strategic Partners

• Completion of some projects in system management and software development

31,101		32,680
	-138	6,332
6,470	(19.4%)
-2.1%
(20.8%)

3,568

-461 (10.9%)

4,029 -11.5%

(13.0%)

5,818

5,133 +13.3% (17.8%)

+684

(16.5%)

	+393	8,414
8,020	+4.9%	(25.7%)
(25.8%)

Major Customers（Non-Finance）

• Rising orders from customers related
  to broadcasting, manufacturing, public-sector, and transportation

• Wrap-upof some projects with public-sector customers

Major Customers（Finance）

• Orders accepted for major projects in IT infrastructure
• Expansion of orders received in software development and cybersecurity

Hitachi Group

• Completion of some projects in software development, etc.

	-230	2,868
3,099	(8.8%)
(10.0%)	-7.4%	5,678
4,347	+1,331
+30.6%	(17.4%)
(14.0%)
2023.3		2024.3

■ IBM Group ■ Hitachi Group ■ Major Customers （ Finance ） ■ Major Customers （ Non-Finance ）■ Strategic Partners ■ Others

IBM Group

• Receipt of new orders and expansion of existing transactions

【Reference】
	Kyndryl	MI Digital	IBM Japan
	Japan	Services
2024.3	2,683	1,937	1,058
(8.2%)	(5.9%)	(3.2%)

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Net Sales Composition by End-user Industry

Transactions with the financial and public sectors account for over 60% of net sales.

( million)

2024.3 (% of net sales)

	(¥ million)
YoY	Figures in brackets
indicate % of net sales

Finance

Public

14,686	44.9%
6,085	18.6%

+1,074	+7.9%
+589	+10.7%

1,634 3,775

(5.0%) (11.6%)

Change or Die !

Information & Communication

Manufacturing

Transportation

3,454	10.6%
3,044	9.3%
1,634	5.0%

+199	+6.1%
+380	+14.3%
+123	+8.2%

3,044

(9.3%)

3,454

(10.6%)

6,085

(18.6%)

14,686

(44.9%)

Others*	3,775	11.6%	-787	-17.3%
Total	32,680	100.0%	+1,579	+5.1%

*"Media", "Healthcare", "Construction, Real estate", "Wholesale, Retail, Restaurants", etc.

**From FY2023, we have changed the accounting classification for some customers. The figures of previous fiscal year have been adjusted based on changes

• Finance
• Public
• Information & Communication
• Manufacturing
• Transportation
• Others

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Operating Income Analysis (YoY)

（ million）

Gross profit

Change or	SG&A
Die!
expenses

Operating income

2023.3	2024.3
			Main Reasons in Changes
Results	Results	Diff.
6,802	7,153	+351	・Increase in net sales	+1,579
			・Increase in cost of sales	+1,228
			-Subcontract expenses	+984
			-Labor cost	+421
			-Manufacturing expenses	+176
			-Purchases	-339
4,377	4,384	+6	・Decrease in personnel cost	-124
			-Reassignment of personnel from SG&A
			divisions to business divisions	etc.
			・Increase in other expenses	+131

2,424 2,769 +344

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Net Income Attributable to Owners of Parent Analysis (YoY)

（ million）

Ordinary income

Change	Extraordinary
	income
or	Extraordinary
losses
Die !

Total income taxes

Net income

attributable to owners of parent

2023.3	2024.3
			Main Reasons in Changes
Results	Results	Diff.
2,504	2,860	+356	・Increase in operating income	+344
			・Increase in non-operating income +9
			・Decrease in non-operating expenses -2
0	73	+73	・Increase in gain on sales of investment
			securities	+70
172	30	-142	・Decrease in reaction to loss on retirement of
			non-current assets in the previous fiscal year
				-112
			・Decrease in reaction to Loss on office closings
			in the previous fiscal year	-37
			・Loss on valuation of investment securities
				+27
929	1,126	+197

1,402 1,777 +374

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