LTS : FY2021 Financial Results(Presentation Material)

Open

FY2021

Financial Results

(Securities code 6560)

2/2022

LTS, Inc.

Open Copyright ©2022 LTS Inc. All rights reserved.

1

Table of Contents

1. Highlights
2. Business Overview
3. Overview of FY2021 Financial Results
4. Progress on and Review of Medium-Term Business Plan
5. Forecast for FY2022
6. Reference Material

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Highlight 1: FY2021 Summary

LTS Group overall

Net sales:	¥7,375 million	(up +32.7% YoY)
Operating profit:	¥600 million	(up +25.4% YoY)
Ordinary profit:	¥579 million	(up +29.6% YoY)

⇒Record high net sales, operating profit, and ordinary profit

Professional services business

Net sales:	¥7,125 million	(up +32.8% YoY)
Operating profit:	¥550 million	(up +27.1% YoY)

⇒Strengthened consulting and engineering teams as planned

Platform business

Net sales:		¥323 million (up +36.1% YoY)
Operating profit:	¥49 million (up +9.0% YoY)
⇒ Continue aggressive investments, including in structural
enhancement		* Net sales includes internal sales
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Highlight 2: Reflection on 4 Years Since Listing

• Achieved greater growth than planned, including surpassing

initial forecasts for four consecutive years following listing in

Estimated and Actual Net Sales and Operating Profit

December 2017

• Made decision to transition to Prime Market in April 2022

8,000

(Hundred million yen) Net sales:

6,000 Higher growth than planned

4,000

2,000

800

(Hundred million yen) Operating profit:

600 Higher growth than planned

400

200

• Through hiring and M&A, we increased the number of engineers and built a system for providing comprehensive support for DX projects. There is room for improvement in terms of unit price of engineers (profitability)

0						0
2018	2019	2020	2021	2018	2019	2020	2021
Net sales (forecast)		Net sales (results)				Operating profit (forecast)
									Operating profit (results)

Trend in number of consultants/engineers

• Expansion of the customer base, improvement of hiring and

	training capabilities, and improvement of operational productivity	250	Number of consultants	250	Number of engineers
	proceeded according to plan, but we recognize that the pace of
	(People)	+74		(People)	+150
	expanding the consultant structure was conservative	200			200
		150		(2017→2021)		150		(2017→2021)
•	As a result, there were cases where we had to turn down	100			195	100			185
	requests from new and existing customers
	50		121		50
		0				0		35
			2017	2021		2017	2021

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Highlight 3: Upward Revisions to Medium-Term Business Plan

• Through our activities over the 4 years after listing, we are confident that further business growth is achievable. Reviewing the steady growth scenarios to date, we

revised the Medium-Term Business Plan upward for rapid growth

►Net sales compound average growth rate: Staying above 20% ⇒ Staying

above 25%
▻2023: Net sales of 10.0 billion yen/Operating profit of 1.2 billion yen	⇒
Net sales of 11.0 billion yen/Operating profit of 1.2 billion yen
▻2024: Net sales of 12.0 billion yen/Operating profit of 1.8 billion yen	⇒
Net sales of 14.0 billion yen/Operating profit of 2.0 billion yen

Net sales compound average growth rate

revised upward

150			140
(Hundred million)	110	120
100		100
		Net sales
			growth rate
50			More than
			25%
0			(2023 and later)
	2023	2024

Sales (before revision)		Sales (after revision)

• Promoting efforts below for rapid growth
• • Active hiring of consultants and engineers
    ⇒Growth of professional services
  • Enhancement of advertising activities and holding of 20th anniversary
    events
    ⇒Growth of platform business and enhancement of branding and hiring

capabilities

• Relocation of office and IT-related investment

⇒Expansion of business and organizational foundation for continued

growth

Open Copyright ©2022 LTS Inc. All rights reserved.

Active Hiring

800	Number of consultants/			720
(People)	engineers
700
	+340
600			565	350
500		(2021-2024)450
400		380				275
				220
300		185
200					230	290	370
100		195
0
	2021			2022	2023	2024
				Consultants		Engineers	5