Financial Results Briefing for Q2/FY2018 May 1, 2018

Transcription

1 Financial Results Briefing for Q2/FY2018 May 1, 2018

2 Contents Financial Results Overview for Q2 FY Financial Highlights 2 Consolidated P/L 3 Consolidated SG&A 4 Difference from consolidated earnings forecast for Q2 5 Business Overview 6 New Approach After Q3 FY Basic Policy in FY Improvement in ARPU 10 healthcare-related services 11 Topics 21 (See Appendix) 25

3 Financial Re sults Overview for Q2 FY2018 1

4 Financial Highlights Results for the Q2 Net sales 15,162million (Down 123million, Down 0.8%, YoY) Operating income 1,372million (Down 702million, Down 33.8%, YoY) Upward revision to the consolidated earnings forecast for the first half period Net sales: +162 million yen Operating income: +372 million yen ARPU increase by 29.7 yen compared to the same period last year 5.01million subscribers (Down 0.31 million compared to September 30, 2017) 2

5 Consolidated P/L Net sales remained at the same level. Income declined. (Millions of yen) FY2018 Q2 FY2017 Q2 Amount Change Percentage Net sales 15,162 15,285 (123) (0.8%) Cost of sales (Ratio) 3, % 2, % Gross profit 11,837 12,780 (942) (7.4%) (Ratio) 78.1% 83.6% SG&A 10,465 10,705 (240) (2.2%) (Ratio) 69.0% 70.0% Operating income 1,372 2,074 (702) (33.8%) (Ratio) 9.1% 13.6% Ordinary income 1,325 2,032 (707) (34.8%) (Ratio) 8.7% 13.3% Profit attributable to owners of parent 1, % (Ratio) 7.6% 2.9% Increase in number of video product lines 3

6 Consolidated SG& A FY2018 Q2 FY2017 Q2 (Millions of yen) Change Amount Percentage SG&A 10,465 10,705 (240) (2.2%) Advertising expenses Personnel expenses 2,857 3,121 (263) (8.5) 2,990 2, Commission fee 1,824 1,862 (37) (2.0) Subcontract expenses (399) (43.3) Depreciation Other 1,416 1,

7 Difference from consolidated earnings forecast for Q2 (Millions of yen) Forecast FY2018 Q2 Actual difference Net sales 15,000 15, Operating income 1,000 1, Ordinary income 960 1, Profit attributable to owners of parent 870 1,

8 Business Overview ⅰ) (Unit: Millions of people) The number of paying subscribers 6.14 million subscribers 1Q Q1 2Q Q2 3Q Q3 4Q Q4 1Q Q1 2Q Q2 3Q Q3 4Q Q4 1Q Q1 2Q Q2 FY2016 FY2017 FY2018 (Down 0.42 million compared to September 30, 2017) SP Feature phones FP Smart phones 6

9 Business Overview ⅱ) The average revenue per user (ARPU) for the smartphones paying subscribers YoY Change 29.7 UP! Q1 1Q Q2 2Q 3Q Q3 Q4 4Q Q1 1Q Q2 2Q 3Q Q3 Q4 4Q Q1 1Q Q2 2Q FY2016 FY2017 FY2018 7

10 New Approach in Q3 and thereaf ter 8

11 Basic Policy in FY Achievement of sales for healthcare-related services 2. Maintenance of the total number of paying subscribers 3. Improvement in average revenue per user (ARPU) 9

12 Improvement in average revenue per user (ARPU) Enhanced video lineup Continuous rise in APRU Q1 1Q Q2 2Q Q3 3Q Q4 4Q 1Q Q1 2Q Q2 3Q Q3 Q4 4Q 1Q Q1 2Q Q2 FY2016 FY2017 FY

13 Healthcare-related services Make Clinical Platform (cloud-type electronic medical record) a subsidiary Investment ratio 50.86% Investment ratio 10.14% 11

14 Healthcare-related services (Reference)Information about the services of Clinical Platform BI QI Business management Quality management CRM Communication with patients Introduction of cloud-type electronic medical records into clinics and small-scale hospitals Cloud environment CLIPLA server ORCA server SCM Distribution management FIN Financial accounting Browser Clinics 12

15 Healthcare-related services (Reference)Cloud-type electronic medical records for eye clinics Seamless data link between Check-up - Medical examination- Accounting Tonometer Auto ref keratometer Data obtained as a result of a test Automated import of data obtained as a result of a test Transmission of the information provided Fundus camera Slit lamp Perimeter Pictures obtained as a result of a test Picture archiving Cloud-type electronic medical records receipt computer Various testing equipment (example) Initial cost 1.38 million yen Monthly usage fees 49,800 If the annual usage fees are paid in a lump sum, the unit amount of the monthly fee will be 45,650 per month. Package plan for eye clinics Renewal expenses 0 yen 13

16 Healthcare-related services Healthcare service for corporations Pedometer test result Body weight Blood pressure Blood Glucose level Meal Sleep Medical checkup 7 companies that use this service are certified as kenko keiei yuryo houjin 2018 (corporations implementing good health care)! 14

17 Healthcare-related services Healthcare service for corporations Q2 2Q Q3 3Q Q4 4Q Q1 1Q Q2 2Q Q3 3Q Q4 4Q Q1 1Q Q2 2Q FY2016 FY2017 FY2018 The number of IDs has been increasing steadily. 15

18 Healthcare-related services Health management service OEM supply of the health management function of CARADA 16

19 Healthcare-related services Sports management Conditioning and communication tool that connect athletes and coaches. Students enter data into app Lack of appetite injury Understand the condition of each member, and work to improve leadership capabilities Staying up late Exercise volume Meals Conditions, etc. Depression Improving the performance of the team Start of offering the nutrition counseling service! 17

20 Healthcare-related services Sports management Q1 Q2 Q3 Q4 Q1 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Q2 FY2016 FY2017 FY2018 Q3 Q4 Q1 Q2 Increased the number of charged orders from schools and clubs New acquisition to be suspended from Q3 onwards focus on product improvement 18

21 Healthcare-related services Healthcare information for women LunaLuna Apps Exceeded 12 million DL in aggregate! 19

22 Overview of healthcare-related services Developing healthcare information management databases to connect data in each Service Data coordination Genetic analysis (Subsidiary) Medical information Service cooperated with doctors etc. (Subsidiary) cloud-type electronic medical records (Subsidiary) Nutrition consulting service Machine to machine service Checkup service Electronic medicine notebook service Sports management service Healthcare information for women Electronic maternity health record book service For hospitals Chemical thermometer coordination LunaLuna Medico Doctors, etc. Hospitals Health insurance organizations Pharmacies Sport gyms schools, clubs at schools Collaborations between other companies and organizations Municipalities 20

23 Topics 21

24 AI service business - Example of introducing a chat bot ⅰ) Organization for Small & Medium Enterprises and Regional Innovation, JAPAN Q&A concerning starting a business Start of experiment for demonstration 22

25 AI service business - Example of introducing a chat bot ⅱ) Introduced for internal response to inquiry of Mizuho Securities Co., Ltd. 23

26 AI service business Image/video analysis Start of the AI inspection service Upon checking the information on a tag/package of the product, the product name, model number and other data must be input manually. Operations to input data that require a lot of work Upon taking a picture of a tag/package of the product with a smartphone, the product name, model number and other data will be captured, imported and stored in the cloud. Increase of the speed for each operation!! Recognition of the product name and model number using a smartphone camera 24

27 Thank you for your attention. Contact us Investor Relations Department TEL: FAX: MAIL: This report contains forward-looking statements on business performance based on the judgments, assumptions, and beliefs of management using the information available at the time. Actual results may differ materially due to changes in domestic or overseas economic conditions or changes in internal or external business environments or aspects of uncertainty contained in the forecasts, latent risks or various other factors. In addition, risk and uncertainty factors include unpredictable elements that could arise from future events.