ID Holdings Corporation

April 1, 2023 - September 30, 2023

Financial Results Presentations

President, Representative Director

Code 4709

TSE Prime Market

and Group CEO

Masaki Funakoshi

* Our website can be accessed from the QR Code.

November 21, 2023

©2023 ID Holdings Corporation. All Rights Reserved.

1

Change or Die!

1

Performance Overview for Q2

2

Mid-Term Management Plan

Next 50 Episode Ⅱ: Ride on Time

©2023 ID Holdings Corporation. All Rights Reserved.

2

Overview of Financial Results for Q2

Change or Die!

Net Sales

¥15,938 million（+7.2% YoY）

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

Operating Income

¥1,421 million（+23.0% YoY）

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

©2023 ID Holdings Corporation. All Rights Reserved.

3

Financial Results (Consolidated)

2022.92023.9

（ 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()

14,861

-

15,938

-

1,076

+7.2%

11,536

77.6%

12,354

77.5%

817

+7.1%

3,324

22.4%

3,583

22.5%

258

+7.8%

2,169

14.6%

2,162

13.6%

-7

-0.3%

1,454

9.8%

1,722

10.8%

267

+18.4%

1,155

7.8%

1,421

8.9%

266

+23.0%

1,209

8.1%

1,504

9.4%

295

+24.5%

680

4.6%

844

5.3%

163

+24.0%

41.04

-

50.76

-

9.72

-

54.43

-

64.12

-

9.69

-

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

©2023 ID Holdings Corporation. All Rights Reserved.

4

Change or Die!

Financial Results by Services

Net Sales

Gross Profit

（¥ million）

14,861

15,938

3,324

＋43

3,583

166

10

54

212

-45

＋398.7%

(1.0%)

(1.5%)

(1.4%)

-21.5%

1,502

(0.3%)

+172

488

1,130

+371

(9.4%)

315

+54.6%

(13.6%)

(9.5%)

(7.6%)

+32.9%

1,396

+110

420

1,228

(8.8%)

310

+167

(9.3%)

+35.5%

(11.7%)

(8.3%)

+13.6%

5,647

5,659

1,210

-181

1,028

+0.2%+11

(35.5%)

(38.0%)

(36.4%)

-15.0%

(28.7%)

6,641

+571

7,213

1,476

+114

1,591

+7.8%

+8.6%

(45.3%)

(44.4%)

(44.7%)

(44.4%)

2022.9

2023.9

2022.9

2023.9

■ System Management

■ Software Development ■ IT Infrastructure

■ Cybersecurity, Consulting and Training ■ Others

Net Sales by Services

■ System

⊕ New orders were received due to redoubling of sales efforts aimed at major IT vendors, while orders accepted from

Management

existing clients swelled

■ Software

⊕ Reinforced sales efforts aimed at major IT vendors led to expansion in transactions, while orders accepted from

Development

clients related to the financial fields swelled

  • Some projects with public-sector-related clients drew to a close

■ IT Infrastructure

⊕ The Group enjoyed increases in orders accepted for major projects with finance-related clients and in transactions

with major IT vendors and manufacturing-related clients

■ Cybersecurity,

⊕ Orders accepted in consulting and cybersecurity swelled

Consulting and

Training

©2023 ID Holdings Corporation. All Rights Reserved.

5

Change or Die!

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

（¥ million）

52.9%

10,000

46.8%

✔Expanding focus on

8,438

advanced development &

149

42.2%

system management,

8,000

6,951

902

5,629

136

1,262

IT infrastructure,

721

consulting.

6,000

145

1,221

539

835

3,546

【 Gross profit margin 】

4,000

1,874

2,597

25.7% (YoY+0.6P）

2,000

2,234 2,274 2,577

0

2021.9

2022.9

2023.9

About 6 points higher than non-DX-related business

Automation and Optimization

Consulting and Training

Cloud

Remote Support, Advanced Development & System Management*

Security and IT Infrastructure

Sales ratio

*"Advanced System Management" has been added from the beginning of FY2023.

6

©2023 ID Holdings Corporation. All Rights Reserved.

Major Customers（Non-Finance） ⊕ Rising orders from customers related
to manufacturing, public-sector,transportation, and broadcasting
⊝ 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
Hitachi Group
⊝ Rebound decline due to wrap-upof major projects in software development in the previous fiscal year
IBM Group
⊕ Receipt of new orders and expansion of existing transactions
【Reference】
Strategic Partners
⊝ Completion of some projects in system management

Net Sales by Strategic Alliances

Transactions with major, high-value customers that are actively investing in IT account for over 80% of net sales.

Change or Die!

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

14,861

2,949

(19.8%)

1,975

(13.3%)

2,537

(17.1%)

3,866

(26.0%)

1,521

(10.2%)

2,010

(13.5%)

+96

(+3.3%)

-119(-6.1%)

+187

(+7.4%)

+256

(+6.6%)

-30(-2.0%)

+686

(+34.1%)

15,938

3,045

(19.1%)

1,856

(11.6%)

2,725

(17.1%)

4,123

(25.9%)

1,490

(9.4%)

2,696

(16.9%)

2022.9

2023.9

■ IBM Group

■ Hitachi Group

■ Major Customers （ Finance ）

■ Major Customers （ Non-Finance）■ Strategic Partners ■ Others

2023.9

Kyndryl

MI Digital

IBM Japan

Japan

Services

1,319

922

454

(8.3%)

(5.8%)

(2.9%)

©2023 ID Holdings Corporation. All Rights Reserved.

7

Net Sales Composition by End-user Industry

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

Change or Die!

(¥ million)

2023.9

(% of net sales)

YoY

Finance

7,051

44.2%

+276

+4.1%

Public

2,870

18.0%

+244

+9.3%

Information &

1,793

11.3%

+161

+9.9%

Communication

Manufacturing

1,480

9.3%

+166

+12.7%

Transportation

858

5.4%

+124

+16.9%

Others*

1,883

11.8%

+103

+5.8%

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

1,883

858 (11.8%)

(5.4%)

1,480

(9.3%)

1,793

(11.3%)

2,870

(18.0%)

7,051

(44.2%)

Total

15,938

100.0% +1,076 +7.2%

*"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

©2023 ID Holdings Corporation. All Rights Reserved.

8

Operating Income Analysis（YoY）

Change or Die!

2022.9

2023.9

Main Reasons in Changes

（ million）

Results

Results

Diff.

Gross profit

3,324

3,583

+258

・Increase in net sales

+1,076

・Increase in cost of sales

+817

-Labor cost

+302

-Subcontract expenses

+503

-Manufacturing expenses

+10

-Purchases

+5

SG&A

2,169

2,162

-7

・Decrease in personnel cost

-50

expenses

-Reassignment of personnel from SG&A

divisions to business divisions

etc.

・Increase in other expenses

+42

Operating

1,155

1,421

+266

income

9

©2023 ID Holdings Corporation. All Rights Reserved.

Net Income Attributable to Owners of Parent Analysis（YoY）

Change or Die!

（ million）

Ordinary income

Extraordinary income

Extraordinary losses

Total income taxes

Net income

attributable to owners of parent

2022.9

2023.9

Main Reasons in Changes

Results

Results

Diff.

1,209

1,504

+295 ・Increase in operating income

+266

・Increase in non-operating income

+25

・Decrease in non-operating expenses

-3

0 0 -

3 0 -3 ・Decrease in reaction to loss on retirement of

non-current assets in the previous fiscal year -3

524 660 +136

680 844 +163

©2023 ID Holdings Corporation. All Rights Reserved.

10

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ID - Information Development Co. Ltd. published this content on 01 December 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 December 2023 08:14:17 UTC.