FY st Half Financial Results Briefing. Bunmei Shimojima President and Representative Director Fujitsu Frontech Limited October 29, 2014

Transcription

1 FY st Half Financial Results Briefing Bunmei Shimojima President and Representative Director Fujitsu Frontech Limited October 29, 2014

2 1. Summary of FY st Half Consolidated Financial Results 1

3 Consolidated Results of Operations [Billion yen] Item Net sales Operating income Ordinary income Net income Net income per share FY2014 FY yen yen Year-on-year ±0 ± yen Figures announced in April Change from the figures announced in April yen +1.7 ± yen Average exchange rate during period (1USD=) FY2014 FY yen 99 yen 2

4 Sales Operating income by Business Segment [Billion yen] Item Financial business Net sales FY2013 Operating income Net sales FY2014 Operating income Increase/Decrease Net sales Operating income Retail business Industrial/ Public business Service business ±0 Other ±0 Corporate ±0 Total ±0 ±0 3

5 Sales by Business Segment FY2013 Financial business Industrial/Public business Other [Billion yen] FY2014 Retail business Service business Financial business: 21.3 billion yen (year-on-year increase of 3.5 billion yen, up 20%) Increase in mechanical components for overseas Increase in palm vein authentication system Retail business: 8.7 billion yen (year-on-year decrease of 2.2 billion yen, down 20%) Decrease due to transfer of domestic retail solution business Decrease due to transfer of SCO software business of subsidiary in North America Decrease in overseas POS business Industrial/Public business: 9.5 billion yen (year-on-year decrease of 1.3 billion yen, down 12%) Decrease due to an end of a big project for display system Decrease in smartphone test supporting business Service business: 8.8 billion yen (year-on-year increase of 0.1 billion yen, up 1%) Increase in ATM services for stores Increase in maintenance service for retail business products 4

6 Sales by regions Domestic: Decrease due to transfer of businesses and end of big projects. Overseas: Increase due to demand expansion of mechanical components, mainly in China. Decrease in Americas due to transfer of SCO software business of subsidiary in North America Item Domestic (Retail Solution) FY (1.0) FY (0) [Billion yen] Increase/Decrease -2.1 (-1.0) Overseas (Overseas sales ratio) 13.5 (27.6%) 15.6 (31.9%) +2.1 (+4.3%) Americas (SCO software) 5.4 (0.4) 4.9 (0) -0.5 (-0.4) Europe Asia [China] [2.4] [4.7] [+2.3] Other Total ±0 5

7 Consolidated Financial Positions and Cash Flows Outline Total assets Net assets FY2014 [Billion yen] Capital adequacy ratio Net assets per share % 1, yen FY % 1, yen Increase/Decrease ± % yen Outline FY2014 FY2013 C/F from operating activities A C/F from investing activities B Free C/F A + B C/F from financing activities C C/F A + B + C [Billion yen] Cash and cash equivalents at the end of year Increase/Decrease ±

8 2. Summary of FY2014 Full-year Targets 7

9 Consolidated Earnings Forecast [Billion yen] Item Net sales Operating income Ordinary income Net income Net income per share FY2014 planned yen FY yen Increase/Decrease yen Average exchange rate during period (1USD=) FY2014 assumption FY yen 100 yen 8

10 Sales by Segment Financial business: Increase of sales in mechanical component business Retail business: Decrease of sales due to transfer of solution businesses done last year Industrial/Public business and Service business: Show recovery on second half [Billion yen] Item FY2013 FY2014 Increase/Decrease Financial business Retail business Industrial/Public business ±0 Service business Other Total

11 Sales by regions Overseas: Sales growth in China and Europe, by increase in sales of bill recyclingunit Decrease of sales in Americas due to transfer of software business of subsidiary in North America [Billion yen] Item FY2013 FY2014 Increase/Decrease Domestic Overseas (Sales ratio) 27.5 (25.4%) 30.0 (27.3%) +2.5 (+1.9%) Americas Europe Asia [China] [5.3] [7.9] [+2.6] Other Total

12 Description of each segments' business(main products) Refer to P12 Refer to P13 Financial business Retail business Industrial/Public business Service business Domestic Banking terminal Handheld terminal Totalizator terminal ATM POS call center Domestic and Overseas Details in P14 ATM RFID Details in P16 Display system ATM service for stores Overseas Details in P15 Palm vein authentication POS terminal Mechanical component Flight information display system LCM service 11

13 Policies for each segments in FY2014 (1) Financial business Sales:FY2013(Result) 43.9 billion yen, FY2014(Plan) 48.2 billion yen <Circumstances of 1st Half> Overseas mechanical component business continually showed good performance, especially in China and Europe Palm vein authentication showed good performancein domestic and overseas market, especially for financial institutions and public offices <Policies for 2nd Half> Domestic ATM: steady performance / Banking terminals: business negotiations are becoming active Overseas ATM: Roll out starting from Spain Retail business Sales:FY2013(Result) 21.5 billion yen, FY2014(Plan) 18.4 billion yen <Circumstances of 1st Half> Released low-priced POS for China and Asia, and Patio100, the new smartphone type hand-held terminal RFID showed good performance mainly in overseas linen-tag <Policies for 2nd Half > Development of new platform for POS and new mobile terminal Continuing actions for improving profits Patio100 12

14 Policies for each segments in FY2014 (2) Industrial / Public business Sales:FY2013 (Result) 23.6 billion yen, FY2014 (Plan) 23.6 billion yen <Circumstances of 1st Half > Expansion of services for public racecourses(new cashless terminals and etc.) Released Eco-board, an ecology-conscious scoreboard <Policies for 2nd Half> Development of next generation totalizator terminal Enhancing competitiveness by functional extension of large scale display system Aggressively expand sales of patient guide system for hospitals and Eco-board Service business Ecology-consciousl scoreboard (Tokunoshima Amagicho Stadium) Sales:FY2013 (Result) 17.8 billion yen, FY2014 (Plan) 19.2 billion yen <Circumstances of 1st Half> Showed steady performance, especially in ATM service for stores Retail call center obtained a Three-Star Customer Service Rating, highest rating in HDI-Japan Benchmarking (Twice in a row) <Policies for 2nd Half> Expand business for financial and retail fields by dedicated organization for LCM service 13

15 (Topics) Global Financial Business FY st Half (Result) 1 st Half Result Y o Y comparison 10.7 billion yen +3.3 billion yen (+45%) Business circumstances Due to expansion of demand of mechanical components in China and Europe, financial business s overseas sales ratio has reached 52% (1) Mechanical component business 1Demands of BRU for ATMs are expanding in Europe and China. Europe: In good condition especially in Eastern Europe. China: Mandatory banknote serial number reading function has lead to more demand. 2Aggressively developing new ways of use other than ATM, which are expected to expand in the future. ex.)tcr, SCO, ticket vending machine, depositing machine, redemption KIOSK (2) System business 1Starting system business, leveraging the strength of mechanical component. ATM:Starting sales in Europe, and business negotiations are active. TCR and other systems are also being considered. 2Considering providing solution in the future. Forecast for FY 2014 FY2014 (forecast) Y o Y comparison 20.4 billion yen +4 billion yen (+24%) 14 Small size BDU (F53) Large size BRU (G750) ATM Series 100

16 (Topics) Palm Vein Authentication System Business Market trend Biometric authentication market is active due to increasing demand of security The vein authentication market will show 32% annual growth until 2017 (Researched by TechSci Research) - Domestic:For financial institutions and public offices - Overseas:For Brazil, Turkey, China and other developing countries Business circumstances Shipment planning for FY2014:150,000 units (double the number of FY2013) - Promoting large scale business negotiations for financial institutions and public offices in domestic and overseas market. - Improved accuracy of authentication, and super-thin compact size sensor have been equipped to tablets. Introduction example1:sensorbuilt in tablet 2,000 tablets were introduced to Fukuoka Financial Group. Being used for external activities, it gave changes to their sales operation style. Introduction example2: Autonomy preventing divulging of information Installed to all PCs in Souka city hall, which are used by 1,300 staff members, protecting information of citizens. 15

17 (Topics) RFID business Market trend Along with price reduction of RFID tags, the market is gaining momentum Installation are accelerating aiming for business efficiency and enhancing traceability Business circumstances FY2014 shipment planning:over 50 million tags (double the number of FY Domestic: Introduction of tags for medical and apparel business are in progress - Overseas: Sales of Linen tags, which can be washed repeatedly, are showing large growth. Commercializing RFID solution platform, and start sales from this second half. Introduction example1: Label tag for blood collection tube Speeding up the reading compared to traditional barcodes. Reading 100 tags in 4 seconds (5 minutes using barcodes) Operating in 20 hospitals Introduction example2: Managing line products for medical use Realizing automation of checking of washing and antisepsis Conveyor reading all at once 16

18 Major Strategic Investments Overseas investments Introduction of new POS products to the Chinese market Introduction of new self-checkout systems for Europe and the U.S. TCR development Global ATM (Spain European markets) Overseas strategies for ATM cover both systems and mechanical components in the future. Investment in Japan Cross-boarder M&A Enhancement of manufacturing system at the major plant in the Philippines Increased production of mechanical components for overseas market Development of the next-generation totalizator terminals Introduction of cash management solution services to the markets Commercialization of RFID solution platform Approach to businesses related to the Tokyo Olympic Games 17

19 By creating new businesses with the B to B to Front approach (the front line facing with the consumers) based on our strategic advancement of business and strict continuation of efforts to increase business efficiency, we will strive to achieve: <FY2014 targets> Consolidated net sales: billion yen Consolidated operating income: 4.9 billion yen 18

20 <Notes Regarding Forward-Looking Statements> This material contains certain statements about projections and forecasts for the future plans, strategies, and performance based on assumptions made using information available to Fujitsu Frontech at that time. In addition, this material contains various risks and uncertainties (including economic trend, fierce competitions in the related industries, market demands, foreign exchange rates, tax rules and other regulations). Accordingly, please be informed that the actual results may materially differ from the forecasts made by the Company. <Trademark> The proper nouns herein including product names are the trademarks or registered trademarks of the respective companies. 19

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