Financial Results Briefing Session

for the Fiscal Year Ended January 2023

Computer Engineering & Consulting Ltd.

March 15, 2023

© Computer Engineering & Consulting Ltd. All rights reserved.

Contents

1.

Operating Results for

the Fiscal Year Ended January 2023

2. Progress of Medium-term Management Plan

3.

Earnings Forecast for

3.

the Fiscal Year Ending January 2024

© Computer Engineering & Consulting Ltd. All rights reserved.

1

© Computer Engineering & Consulting Ltd. All rights reserved.

2

Year-on-year and earnings forecast comparisons

  • ICT investment by customers became active mainly in the DX area and for security measures, and business negotiations increased.
  • Net income reached a record high with gain on sale of investment securities recorded in 2Q as extraordinary income.

(Unit: Million yen)

FY ended Jan.

FY ended Jan.

Amount of

Rate of

Earnings

Expected

2022

2023

change

change

forecast

achievement rate

Net sales

45,220

48,206

2,985

6.6%

48,000

100.4%

Operating

4,206

4,374

167

4.0%

4,500

97.2%

income

Operating

9.3%

9.1%

(0.2)

9.4%

income ratio

Ordinary income

4,282

4,413

130

3.1%

4,540

97.2%

Ordinary income

9.5%

9.2%

(0.3)

9.5%

ratio

Net income

3,039

5,179

2,140

70.4%

5,200

99.6%

Net income ratio

6.7%

10.7%

4.0

10.8%

  • Net income signifies Net income attributable to owners of parent (the same applies hereinafter).
  • From the beginning of the fiscal year under review, the Company applied the "Accounting Standard for Revenue Recognition," etc. Its impact in the fiscal year under review includes the following: net sales increased 387 million yen, and operating income, ordinary income, and profit before income taxes grew by 68 million yen, respectively.

© Computer Engineering & Consulting Ltd. All rights reserved.

3

Financial results

Net sales (100 million yen)

518

480

482

500

452

400

380

359

352

335

300

252

245

224

234

200

126

126

114

118

100

0

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

FYE Jan/2020

FYE Jan/2021

FYE Jan/2022

FYE Jan/2023

Operating income/Operating income ratio (100 million yen, %)

59

15%

60

50

44

42

9.1%

43

10%

40

37

30

32

28

26

22

19

20

16

15

5%

13

9

0

0%

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

FYE Jan/2020

FYE Jan/2021

FYE Jan/2022

FYE Jan/2023

© Computer Engineering & Consulting Ltd. All rights reserved.

Net sales

  • In the manufacturing area, net sales increased as ICT investments recovered.
  • The system development business saw steady demand for DX.
  • The security field was favorable thanks to strong demand.
  • Nearshore development is strong at Group companies.

Operating income

  • Increase in income due to higher net sales.
  • Profit margin improved through expansion of focused businesses.
  • Increase in corporate expenses to strengthen sales promotion.
  • Continued impact of unprofitable projects in the previous fiscal year and additional provision for loss on orders received was recorded in 1Q and 4Q.

4

Attachments

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Disclaimer

Computer Engineering & Consulting Ltd. published this content on 11 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 April 2023 07:06:04 UTC.