Presentation of Financial ResultsOperating Income and Ordinary Income increased by ¥1.0 billion...
Transcript of Presentation of Financial ResultsOperating Income and Ordinary Income increased by ¥1.0 billion...
Copyright 2020 NSD CO., LTD.
May 8, 2020
Presentation of Financial Results for the Fiscal Year Ended March 31, 2020
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Copyright 2020
Index
2
Page■Financial Results for the Fiscal Year Ended March 31, 2020
Summary of Financial Results 3Net Sales and Operating Income by Segment 5System Development Business - Net Sales by End-user Sector 7System Development Business - Net Sales by End-user Sector (Financial Sector) 9System Development Business - Trends of Order Value / Net Sales / Order Backlog 11Solution Business – Net Sales by Service and Product Category 12Assets, Liabilities, and Net Assets 13
※ Financial EstimatesFinancial estimates are unconfirmed because it is difficult to reasonably calculate the effects of the widespread of the new coronavirus infection at this moment.We will announce them as soon as possible when reasonable financial estimates becomes calculable.
Reference1: Trends of Financial Results 142: Summary of Medium-Term Management Plan 153: Efforts in the Field of Advanced Technology 174: Return to Shareholders 185: Major Press Releases 19
※ Amounts less than the display unit are rounded down.Percentage figures are rounded off.
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Summary of Financial Results
3
■Net SalesNet Sales increased by ¥3.4 billion (+5.7%) year on year to ¥65.0 billion mainly due to steady growth in System Development Business and a large increase in System Service Business and System ProductBusiness, reflecting a favorable business environment.
■Operating Income・Ordinary Income・Net IncomeOperating Income and Ordinary Income increased by ¥1.0 billion (+12.4%) and ¥0.9 billion (+10.3%)year on year respectively, due to an increase in Net Sales and reduction of SG & A Expenses.Net Income increased by ¥0.4 billion yen (+8.5%) year on year to ¥6.3 billion due to recording expensesof 50th anniversary events and gain/losses concerning sales of real estates to extraordinary losses.
※ Income and expenses related to real estate services are recorded in Non-Operating Income and Non-Operating Expenses because Real Estate Service Business segment is abolished from FY ended 2020/3 (Previously recorded in Net Sales, Cost of Sales, or SG & A Expenses).The results of 2019/3 are restated based on the changed segments.
(Unit : Millions of yen)
2019/3
Results Results YoY YoY(%) Financial Estimate(Released 2019/5/8) YoY YoY(%)
61,573 65,063 3,490 5.7% 65,500 △ 436 △0.7%
(21.1%) (21.4%) (21.5%)
12,986 13,945 959 7.4% 14,100 △ 154 △1.1%(7.3%) (6.8%) (7.3%)
4,493 4,400 △93 △2.1% 4,800 △ 399 △8.3%(13.8%) (14.7%) (14.2%)
8,492 9,545 1,052 12.4% 9,300 245 2.6%
8,756 9,661 905 10.3% 9,400 261 2.8%
8,675 9,058 383 4.4% 9,050 8 0.1%
(9.4%) (9.7%) (9.3%)
5,817 6,314 497 8.5% 6,100 214 3.5%
Income beforeIncome Taxes
Net IncomeAttributable to
Owners of the Parent
2020/3
Net Sales
Gross Profit
SG & A Expenses
Operating Income
Ordinary Income
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Summary of Financial Results
4
※ The businesses covered by each segment are changed from FY ended 2020/3 (Changed “IT Infrastructure Building” from System Service Business to System Development Business). The results of 2019/3 are restated based on the changed business segments.
(Unit : Millions of yen)
■Net Sales
※ The ratio on the upper-left comers are composition ratio to sales. Results Results YoY YoY(%)
(89.5%) (89.1%)55,117 57,956 2,838 5.2%
(1.0%) (2.2%)592 1,434 841 142.0%
(6.1%) (6.5%)3,775 4,259 483 12.8%
(4.4%) (4.4%)2,680 2,847 167 6.3%
61,573 65,063 3,490 5.7%(11.4%) (13.1%)
7,048 8,541 1,493 21.2%
■Gross Profit
※ The ratios on the upper-left corners are Gross Profi t margin. Results Results YoY YoY(%)
(21.1%) (21.3%) (0.2%)11,632 12,343 711 6.1%
(25.6%) (27.0%) (1.4%)152 387 235 155.1%
(14.2%) (17.8%) (3.7%)535 759 224 41.9%
(30.5%) (29.6%) (△1.0%)818 841 23 2.9%
(21.1%) (21.4%) (0.3%)12,986 13,945 959 7.4%
(21.4%) (23.3%) (1.9%)1,506 1,989 483 32.1%
2020/32019/3
System Development Business
New technology *
Total
New Core Business (marked *)
2019/3 2020/3
System Product Business *
System Service Business *
Total
New Core Business (marked *)
System Development Business
New technology *
System Service Business *
System Product Business *
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■Net Sales ■Operating Income
Net Sales and Operating Income by Segment
(Unit : Millions of yen) (Unit : Millions of yen)
■System Development Business (Finance)Net Sales and Operating Income increased due to an increase in projects of business efficiency and market system renewals for major banks, system reconstruction for insurance companies, while there was decrease in projects for regional banks and credit card companies.
■System Development Business (Industry and Social Infrastructure)Net Sales and Operating Income increased due to an increase of orders from any of the end-users, especially in projects of system reconstruction for car makers, airline companies, and logistics companies, and projects for electric companies to cope with the separation of power generation and transmission.
■System Development Business (IT Infrastructure)Net Sales and Operating Income increased due to an increase in cloud migration mainly in manufacturing companies, and construction of telework supporting system for public offices.
■Solution BusinessNet Sales and Operating Income increased due to a steady expansion of shareholder relation services and human resource related services, and favorable sales of security related products.
※ Adjustments are the total of inter-segment sales eliminations and costs of whole company (mainly G&A costs which do not attribute to the reported segments).
8,492+280
+266+135
+373 △3 9,545
2019/3 2020/3
+1,052System
Development(Finance)
System Development(Industry and Social
Infrastructure)
System Development(IT Infrastructure)
Solution
Adjustment
61,573 +192
+1,631+814
+610 +241 65,063
2019/3 2020/3
SystemDevelopment
(Finance)
System Development(Industry and Social
Infrastructure)
System Development(IT Infrastructure)
+3,490
■YoY Increase ■YoY Decrease
SolutionAdjustment
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Net Sales and Operating Income by Segment
6
■Changing Segments
Segments consisted of 2 segments, “System Solution Services” and “Real Estate Services”, but upon withdrawing from real estate services, Real Estate Services segment was abolished and “System Solution Services” was divided into 4 segments of “System Development Business (Finance)”, “System Development Business (Industry and Social Infrastructure)”, “System Development Business (IT Infrastructure)”, and “Solution Business” from FY ended 2020/3.“Solution Business” consists of System Services and System Products.
※ Adjustments are the total of inter-segment sales eliminations and costs of whole company (mainly G&A costs which do not attribute to the reported segments).
■Net Sales (Unit : Millions of yen)
2019/3
Results Results YoY YoY(%)
(33.1%) (31.6%)20,368 20,560 192 0.9%
(45.9%) (45.9%)28,248 29,880 1,631 5.8%
(11.2%) (11.9%)6,915 7,730 814 11.8%
(10.6%) (11.0%)6,524 7,134 610 9.4%
△482 △241 241 △50.0%
61,573 65,063 3,490 5.7%
■Operating Income (Unit : Millions of yen)
2019/3
Results Results YoY YoY(%)
(15.3%) (16.5%) (1.2%)3,117 3,398 280 9.0%
(15.9%) (15.9%) (0.0%)4,483 4,750 266 6.0%
(14.2%) (14.5%) (0.3%)982 1,117 135 13.8%
(1.9%) (6.9%) (5.1%)120 494 373 308.8%
△211 △215 △3 1.9%
(13.8%) (14.7%) (0.9%)8,492 9,545 1,052 12.4%
System DevelopmentBusiness
Finance
Industry and SocialInfrastructure
IT Infrastructure
Solution Business
Adjustment
※ The ratios on the upper-left corners are Operating Income margin.
Total
2020/3
IT Infrastructure
System DevelopmentBusiness
Finance
Industry and SocialInfrastructure
※ The ratio on the upper-left comers are composition ratio to sales.
Solution Business
Adjustment
Total
2020/3
※
※
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System Development Business - Net Sales by End-user Sector
■Net Sales by End-user SectorNet Sales increased by ¥2.8 billion (+5.2%) year on year to ¥57.9 billion, as orders from financial sectorincreased steadily and orders from manufacturing, transportation, commerce, and electricity & gas sectors increased significantly. Manufacturing : Orders increased from electric, machine, and car makers. Transportation : Orders increased from airline and logistics companies. Commerce : Orders increased from trading companies and convenience stores. Electricity & Gas: Orders increased from electric companies to cope with the separation of power
generation and transmission.
21,195
Finance21,867
9,272
Service9,477
6,566
Manufacturing
7,142
4,947
Telecommunication5.120
4,104
Transportation5,089
2,522
Commerce2,874
3,595
Public3,087
2019/3
2020/3
Finance Service ManufacturingTelecommunication Transportation CommercePublic Electricity & Gas ConstructionOthers
2020/3
2019/3
(Unit : Millions of yen)
55,117
+672+204
+575+173
+985
+351 △507+302 +88 △8 57,956
2019/3 2020/3
Manufacturing
CommerceElectricity
& GasPublic
Others
+2,838
(Unit : Millions of yen)
Transportation
Finance
Telecommunication
2020/32019/3
Service
Construction
■YoY Increase ■YoY Decrease
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System Development Business - Net Sales by End-user Sector
※ The results of System Development Business are written.
(Unit : Millions of yen)
Results CompositionRatio(%) Results Composition
Ratio(%) YoY YoY(%)
Finance 21,195 38.4% 21,867 37.7% 672 3.2%
Service 9,272 16.8% 9,477 16.4% 204 2.2%
Manufacturing 6,566 11.9% 7,142 12.3% 575 8.8%
Telecommunication 4,947 9.0% 5,120 8.8% 173 3.5%
Transportation 4,104 7.4% 5,089 8.8% 985 24.0%
Commerce 2,522 4.6% 2,874 5.0% 351 13.9%
Public 3,595 6.5% 3,087 5.3% △507 △14.1%
Electricity & Gas 1,520 2.8% 1,823 3.2% 302 19.9%
Construction 1,195 2.2% 1,284 2.2% 88 7.4%
Others 196 0.4% 188 0.3% △8 △4.1%
Total 55,117 100.0% 57,956 100.0% 2,838 5.2%
2019/3 2020/3
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System Development Business - Net Sales by End-user Sector (Financial Sector)
■Net Sales by End-user Sector (Financial Sector)Net Sales increased by ¥0.6 billion (+3.2%) year on year to ¥21.8 billion, due to an increase in majorbanks and insurance companies, while there was a decrease in other banks and credit card companies. Major Banks:
Net Sales increased due to business efficiency projects by RPA, system reconstruction projects of overseas and market systems, and expansion of existing projects.
Other Banks:Net Sales decreased due to an end of projects and large reductions of orders from existing projects.
Insurance Companies:Net Sales increased due to continuing orders of large projects on system reconstruction and additional orders from existing customers.
Credit Card Companies:Net Sales decreased due to an end of projects and replanning of projects.
7,567
Major Banks8,326
2,776
OtherBanks2,528
7,580
Insurance Conpanies
8,087
1,325
Securities Companies
1,319
1,491
Credit Card Companies
1,077
455
Others528
2019/3
2020/3
2020/3
2019/3
(Unit : Millions of yen)
21,195
+759 △247
+506 △5 △413
+73 21,867
2019/3 2020/3
Major Banks
Other Banks Insurance Companies
SecuritiesCompanies
Credit CardCompanies
Others
+672
(Unit : Millions of yen)
2020/32019/3
■YoY Increase ■YoY Decrease
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System Development Business - Net Sales by End-user Sector (Financial Sector)
※ The results of System Development Business are written.※ The results of 2019/3 are reclassified because the business segments of some companies were revised.
(Unit : Millions of yen)
Results CompositionRatio(%) Results Composition
Ratio(%) YoY YoY(%)
Major Banks 7,567 35.7% 8,326 38.1% 759 10.0%
Other Banks 2,776 13.1% 2,528 11.6% △ 247 △8.9%
InsuranceCompanies
7,580 35.8% 8,087 37.0% 506 6.7%
SecuritiesCompanies
1,325 6.3% 1,319 6.0% △5 △0.4%
Credit CardCompanies
1,491 7.0% 1,077 4.9% △413 △27.7%
Others 455 2.1% 528 2.4% 73 16.1%
Total 21,195 100.0% 21,867 100.0% 672 3.2%
2019/3 2020/3
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System Development Business - Trends of Order Value / Net Sales / Order Backlog
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※ The results of System Development Business are written.
(Unit : Millions of yen)OrderValue YoY(%) Net Sales YoY(%) Order
Backlog YoY(%)
1Q 14,825 ー 13,220 3.4% 12,776 ー
2Q 14,430 ー 13,699 5.0% 13,508 ー
1st-half 29,256 ー 26,920 4.2% 13,508 ー
3Q 12,201 ー 14,044 6.9% 11,665 ー
4Q 14,702 ー 14,152 7.8% 12,214 ー
Full-year 56,159 ー 55,117 5.8% 12,214 9.3%
1Q 16,703 12.7% 13,948 5.5% 14,969 17.2%
2Q 13,965 △3.2% 14,532 6.1% 14,402 6.6%
1st-half 30,668 4.8% 28,481 5.8% 14,402 6.6%
3Q 12,302 0.8% 14,770 5.2% 11,933 2.3%
4Q 15,945 8.5% 14,704 3.9% 13,175 7.9%
Full-year 58,916 4.9% 57,956 5.2% 13,175 7.9%
2020/3
2019/3
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System Service Business / System Product Business – Breakdown of Net Sales
※ Human Resource Solutions : Solutions from new graduates/mid-career recruitment management to temporary staff management, for general companies and human resource service companies
※ Logistics Solutions : Solutions dealing with storage and retrieval processing, stock management, billing processing, etc. for warehousing business companies
※ Shareholder Relation Services: Out-sourcing services of shareholder benefit program, from planning of program, data management, and ordering & shipping of products, to responding to shareholders’ inquiries
※ Security Products : Managing evidences of sending and receiving files, preventing wrong transmissions of mails, managing digital certificates, targeted attack measures, etc.
■2020/3 (Unit : Millions of yen)
SystemService
SystemProduct
Results Results Results CompositionRatio(%)
Human ResourceSolutions 1,655 151 1,807 25.4%
Logistics Solutions 507 237 744 10.5%
Shareholder RelationServices 1,277 - 1,277 18.0%
Security Products 157 858 1,016 14.3%
Others 661 1,600 2,261 31.8%
Total 4,259 2,847 7,107 100.0%
Total
Human Resource Solutions25.4%
Logistics Solutions10.5%
Shareholder Relation Services18.0%
Security Products14.3%
Others31.8%
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Assets, Liabilities, and Net Assets
13
(※1) Following the abolishment of Real Estate Service Business segment from FY ended 2020/3, held real estate ¥7.2 billion is recorded in Investments and Other Assets (Previously recordedin Property, Plant and Equipment). The balance of 2019/3 is also restated.
(※2) Held real estate ¥6.1 billion was sold in FY ended 2020/3.
(Unit : Millions of yen)
35,819 39,654 3,835Cash and Deposits 22,817 25,226 2,409
Non-Current Assets 20,058 14,230 △5,827Property, Plant and Equipment 933 981 47Intangible Assets 2,372 2,377 5Investments and Other Assets 16,753 10,871 △5,881
55,878 53,885 △1,992Current Liabilities 7,701 7,820 118Non-Current Liabilities 830 1,086 256
8,532 8,907 37448,589 45,295 △3,294
Capital Stock 7,205 7,205 ーCapital Surplus 6,791 6,802 11Retained Earnings 43,563 43,384 △178Treasury Shares △8,971 △12,098 △3,127
△1,690 △857 833446 541 94
47,345 44,978 △2,367
Increase/DecreaseDuring the Period
Shareholders' Equity
Accumulated Other Comprehensive Income
Non-Controlling InterestsTotal Net Assets
2020/3
Current Assets
Total Assets
Total Liabilities
2019/3
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Reference1 : Trends of Financial Results
※1 The rates on the upper-left comers are percentage to Net Sales.※2 Real Estate Service Business segment is abolished from FY ended 2020/3 and the results of the past financial years are restated based on the changed segments.※3 While a stock split of ratio 1:2 was implemented on the record date of December 31, 2019, numbers on the table are restated based on the number of stocks
posterior to the stock split.※4 Numbers inside the brackets are DPS or dividend payout ratio excluding commemorative dividends.
(Unit : Millions of yen)2016/3 2017/3 2019/3
Results Results Results Results Results YoY YoY(%)
Net Sales 51,219 54,858 57,704 61,573 65,063 3,490 5.7%
(21.1%) (20.7%) (20.4%) (21.1%) (21.4%)10,826 11,334 11,769 12,986 13,945 959 7.4%
(8.8%) (7.8%) (6.9%) (7.3%) (6.8%)4,514 4,280 3,970 4,493 4,400 △93 △2.1%
(12.3%) (12.9%) (13.5%) (13.8%) (14.7%)6,312 7,054 7,799 8,492 9,545 1,052 12.4%
Ordinary Income 6,405 7,300 8,119 8,756 9,661 905 10.3%
(6.1%) (8.3%) (9.3%) (9.4%) (9.7%)3,110 4,543 5,368 5,817 6,314 497 8.5%
Net Income perShare(yen)
35.49 52.90 63.38 69.65 78.21 8.56 12.3%
18.5 22 26 30 46 ー ー(32)
52.1% 41.6% 41.0% 43.1% 58.8% ー ー(40.9%)
Shareholder Equity 40,999 43,374 45,368 46,898 44,437 ー ー
Shareholder EquityRatio
85.1% 85.2% 83.9% 83.9% 82.5% △1.4% ー
ROE 7.5% 10.8% 12.1% 12.6% 13.8% 1.2% ー
Dividend PayoutRatio
DPS(yen)
Net IncomeAttributable to Owners
of the Parent
2018/3
Operating Income
Gross Profit
SG & A Expenses
2020/3
※4
※4
※3
※3
Copyright 2020
Reference3 : Summary of Medium-Term Management Plan【Changes in the environment】
New technologies (AI, IoT) are progressing.Customers’ strategic IT technologiesare accelerating.
Needs to enhance capability for new technologies.
【Basic Strategies】1. Seek additional growth opportunities in new
business and new technologies area.2. Improve adaptability of new technologies in
system development.
3. Further enhancement of human resource and capability of organization.
Net Sales70billion yen
Net Sales fromNew Core Business12billion yen
Operating Income margin
More than13%
ROEMore than12%
(¥ Million)
※1 Real Estate Service Business segment is abolished from 2020/3 and the results of 2018/3 and 2019/3 are written based on the changed segments.※2 Revised target announced on May 8, 2019 is written.※3 Extra ordinary losses of 500 million yen is recorded as anniversary event cost.
(FY2021/3)
2018/3Results
2019/3Results
2020/3Target
2021/3Target
Net Sales 57,704 61,573 65,500 70,000
New Core Business 5,595 7,048 8,500 12,000
Operating Income 7,799 8,492 9,300 10,000Operating Income margin (%) 13.5 13.8 14.2 14.3Ordinary Income 8,119 8,756 9,400 10,100Net Income 5,368 5,817 6,100 6,800ROE (%) 12.1 12.6 12.9 13.7
(※3)
(※1)
(*)
(*) New Core Business refers to System Development Business related to new technologies and Solution Business (System Service Business and System Product Business).
15
(※2) (※2)(※1)
Copyright 2020
Reference3 : Summary of Medium-Term Management Plan
¥5.5bn
¥12bn
2018/3 2021/3
¥57bn
¥70bn
Factors for achievement of the plan +1.5
2. Enhance the system service.+2.3
1. Seek additional growth opportunities in new business and new technology area.
+0.5 3. Strengthen system products.
+2.2 4. Strengthen people and organizational capabilities in system development.
Strengthen and improve our sales force, promote cross-selling. Develop new products through technical collaboration with
other companies.
Improve consulting capabilities and enhance proposal capabilities. Laterally collaborate sales division with each business division and
strengthen capabilities of finding a new market. Speeding up raising project managers and project leaders and
raising overall skill level.
+¥6.5bn Healthcare
ITExpansion of functions of the remote health support service “CAReNA”.
Educational IT
Deployment of e-portfolio “ManaBOX” through collaborating with major learning cram schools.
Human Resource IT
Realizing of synergy effects among NMsystemsand Japan Job Posting Service.*Merged both companies in 2018/10/1 (Current: StellaS)
New core business
Original business
※ New Core Business refers to System Development Business related to new technologies and Solution Business (System Service Business and System Product Business).
(※)
Establish Advanced Technology ResearchInstitute
Create new services through joint development with user companies.~ Cooperate with one user company
per business sector as a standard
Establish Advanced Technology Division
Strengthen new technology development capabilities utilizing AI and IoT.
Cooperate with venture companies
Develop new business models utilizing new technologies.
16
Copyright 2020
NSD Advanced Technology ResearchInstitute (Established in April 2019)
Established to share issues with customers throughinvestment and membership, and create new services that utilize advanced technology.
Reference4 : Efforts in the Field of Advanced Technology
Customers
NSD Advanced Technology Research
Institute
NSD
Advanced Technology Business Division
(Conventional IT Development)SE 3,000 people
Image of NSD group collaborationShareholder
Companies
PreferredMembers
Other Companies
Shareholders and Preferred members (As of March 31, 2020)Shareholders: IBC Co., Ltd., IWATSU ELECTRIC CO., LTD.,
NIPPON TELEGRAPH AND TELEPHONE WEST CORPORATION, Signpost Corporation
Preferred members:JR Kyushu System Solutions Inc., Konoike TransportCo., Ltd., Lenovo Group, Marubeni Corporation, MARUBENI INFORMATION SYSTEMS CO., LTD.,T&D INFORMATION SYSTEM Ltd.
(In alphabetical order)
Advanced Technology Business Division(Changed as a division in April 2019)
Changed Advanced Technology Promotion Division as a business division to strengthen as a development division.
17
DevelopmentsReleased “Tracking Navi” (September 2019)・ A solution service which measures and
visualizes workers’ location information utilizing autonomous navigation
・ Contribute to productivity improvement by optimum arrangement of workers, and to safety confirmation of workers
Released “AIkotoba” (February 2020)・ Face recognition reception solution which
seamlessly welcomes visitors and calls the person in the company in charge.
(Solution Sales)Market Development
Business Division
Copyright 2020 18
Reference2 : Return to Shareholders
※1: Treasury stock of 1 million shares were retired in 2017/7/18※2: Treasury stock of 1 million shares were retired in 2019/12/6
1,609 1,888 2,196 2,484 2,550
1,1321,877 1,008
1,3621,999
4,999112.1%
63.7% 66.3%77.1%
137.5%
FY 2016/3 FY 2017/3 FY 2018/3 FY 2019/3 FY 2020/3
Year End Dividend Commemorative Dividend
Share Buy Back
(Million yen)【 Result 】
Total Return Ratio
Total Payout of Dividends and Share Buy Back
(※2)(※1)
18.522
26 30 32
6.5
52.1%
41.6% 41.0% 43.1%
58.8%
FY 2016/3 FY 2017/3 FY 2018/3 FY 2019/3 FY 2020/3
Dividend per Share Commemorative Dividend
Payout Ratio(yen)
7.5 +10%
【 Result 】
40%
Dividend per Share and Payout Ratio
46yen
+500 million yen increase
※:Dividend per share is written on the basis of the number of shares posterior to the stock split on the record date of 2020/1/1.
■Policies of Dividend for FY Ended 2020/3In commemoration of the 50th anniversary, the followingdividend was implemented.① Consolidated dividend payout ratio is 50% or more.
(among commemorative dividend 10%)② Furthermore, the total dividend amount increased by
500 million yen. (commemorative dividend)~ Commemorative dividend 14 yen were paid on
2019/11/18 as second quarter dividend
■Policies of Return to Shareholders
① Maintain consolidated dividend payout ratio, 40% ormore.
② Actively return profits to shareholders, judgingbusiness performance and stock price trendscomprehensively.
Copyright 2020 19
Reference5 : Major Press Releases
Release Date Category Details
April / 1 / 2019 Strategic Alliance
Started strategic cooperation with Lenovo Enterprise Solutions Ltd.・ Started strategic cooperation regarding platform businesses for data management
and IoT/AI to respond to the expanding digital transformation related businesses.・ Fuse Lenovo group’s data management solutions utilizing data integrated management
tools and NSD’s technological capabilities, and expand data management services.
May / 8 / 2019 Corporate Finance
Dividend forecast for the fiscal year ending March 31, 2020・ Planning the 50th anniversary commemorative dividend (28 yen per share) as the second
quarter end dividend for the fiscal year ending March 31, 2020.・ Planning the year end dividend of 63 yen per share and 91 yen annually.
May / 8 / 2019May / 31 / 2019 Corporate Finance
Resolved share repurchase・ Resolved share purchase to exercise agile management of capital policy and to return our
profits to shareholders furthermore.※ Results (Released on June 24)
~ Repurchase period: 2019/5/9~6/21Total number : 967 thousand sharesTotal amount : 2,999 million yen
May / 8 / 2019 Medium-term Management Plan
Resolved upward revision of the Medium-Term Management Plan (FY2018~FY2020), considering the financial results and the favorable trend of orders.
May / 8 / 2019 Strategic Alliance
Agreed with Chengdu Winnersoft Co., Ltd. on joint business of the subsidiary RX Technology Japan Ltd.・ Strengthen engineer mobilization and flexibly respond to customer’s various needs by
cooperating with Chengdu Winnersoft Co., Ltd.
July / 31 / 2019 Organization Restructuring
Absorption merger with the subsidiary Business Innovation Co., Ltd. on October 1, 2019・ Absorb and merge to concentrate and effectively utilize management resources, and then
to strengthen marketing power and to make management efficiently.
Copyright 2020
Reference5 : Major Press Releases
Release Date Category Details
Sept / 27/ 2019 StrategicAlliance
Reached a basic agreement on capital and business alliance with Signpost Corporation on expanding “Wonder Register”, a setup-type register installed with AI・ NSD will expand the functions of the register, customize, and develop and maintain the surrounding
systems.Signpost Corporation will concentrate its resources into researching and developing AI and image recognition technologies, which are the core technologies, and developing new models.
Oct / 10 / 2019 Corporate Finance
Resolved 50th anniversary commemorative dividend payout and the revision of the year-end dividend forecast・ Resolved the 50th anniversary commemorative dividend of 28 yen per share as the second quarter
dividend for the fiscal year ending March 31, 2020.・ Revised forecast of year-end dividend to 64 yen (92 yen annually), an increase of 1 yen per share.
Oct / 11 / 2019 StrategicAlliance
Agreed with Avanade on strategic cooperation for Microsoft-related projects・ Share technologies and know-how with Avanade to strengthen capabilities and accelerate
development of service business in Microsoft 365, Dynamics 365, and Azure.・ Established Avande Development Office in NSD, and fuse Microsoft solutions with NSD’s technical
capabilities and provide high-quality services for customers.
Oct / 31 / 2019 Corporate Finance
Resolved share repurchase and the retirement of treasury stock・ Resolved share purchase and retirement of treasury stock (1,000 thousand shares) to exercise agile
management of capital policy and to return our profits to shareholders furthermore.※ Results of share repurchase (Released on November 27)
~ Repurchase period: 2019/11/1~11/29Total number : 443 thousand sharesTotal amount : 1,499 million yen
Oct / 31 / 2019 Corporate Finance
Resolved stock split and the revision of the year-end dividend forecast・ Each share of common stock will be split into two shares on the record date of 2019/12/31 to
improve the liquidity of our stock and to expand our investor base.・ Following the stock split, the year-end dividend forecast of 64 yen per share is revised to 32 yen.
(Effectively, there is no change.)
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Reference5 : Major Press Releases
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Release Date Category Details
Oct / 31 / 2019 SubsidiaryRelated
US subsidiary NSD International acquired all shares of MKG Global Technology (Japan Tech)・ Japan Tech is a company in the United States which provides system development and consulting
mainly for local Japanese companies.・ Acquired to accelerate business growth in the United States, and to improve proposing capabilities
and services to customers.
Jan / 31 / 2020 Organization Restructuring
Absorption merger with the subsidiary NRS CO., LTD. on April 1, 2020・ Absorb and merge real estate management subsidiary to withdraw from real-estate management
business for effective management.
Jan / 31 / 2020 Corporate Finance
Resolved share repurchase・ Resolved share purchase to exercise agile management of capital policy and to return our
profits to shareholders furthermore.※ Results of share repurchase (Released on February 27)
~ Repurchase period: 2020/2/3~2/26Total number : 267 thousand sharesTotal amount : 499 million yen
Mar / 2 / 2020 Non-financialCertified as Health & Productivity Management Outstanding Organization (Large Enterprise Category)・ Efforts such as strengthening employees’ health management and providing comfortable working
environment were evaluated.
Mar / 31 / 2020 StrategicAlliance
Signed capital and business alliance with JR Kyushu System Solutions Inc. (JRQSS)・ Promote alliances in many ways including technologies, such as sending engineers to JRQSS delivery
centers, and cooperate in development projects and creating new solutions together.
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