Matsushita Electric Works Information Systems Co., Ltd. Presentation of Finances Fiscal Year ended March 31,

Transcription

1 Information Systems finally embedding computers invisible. Code No:4283 Matsushita Electric Works Information Systems Co., Ltd. Presentation of Finances Fiscal Year ended March 31, 2006 April 28, 2006 Takeyoshi Kawamura, President

2 1.,. Profile of MEW-IS and feature of its business. Financial results in the fiscal year ended March 31, Yearly business plan for the year ending March 31, Plan

3 2.,. Profile of MEW-IS and feature of its business. Financial results in the fiscal year ended March 31, Yearly business plan for the year ending March 31, Plan

4 Profile of MEW-IS Name Matsushita Electric Works Information Systems Co., Ltd. (MEW-IS) Date of establishment February 22, 1999 President Business Paid in Capital Number of employees Takeyoshi Kawamura 1) Overall integration services related to information systems 2) Computer system management and operation 3) Computer software design, development, sales, and leasing 4) Information network services and sales of related ICT products JPY 1.04 billion (as of 31 March 2006) 482 (as of 31 March 2006) 3

5 4., Business model Development of business around solutions 1. Service solutions business New customers Proposals of systems Proposals of solutions Existing customers System operation Solution sales Equipment sales and installation System services 1. ASP service 2. Network service 3. Outsourcing service System Solutions 1. Solution proposal 2. Consulting 3. Package software development and sales 2. System and communications equipment business 1. Sales of computers, servers, and Communications equipment 2. Network and facility construction

6 Sales power through the MEW Group channel Exploitable electrical / construction materials market Construction / engineering offices Agencies MEW Group Cooperating plants Secondary plants About 500,000 offices Proposal CRM e-marketplace Estimate Distribution Distribution solutions solutions revolving revolving around around MetaForce MetaForce Trunk System e-procurement EDI Promotion of strategic information systems (SIS) as vertical VANs About 2,000 firms CAD PDM Manufacturing Manufacturing solutions solutions revolving revolving around around production production management management systems systems Proposal of business services harnessing Internet technology ASP Housing Hosting Outsourcing 5

7 Multi-vendor environment not dependent on a particular manufacture Proposal of solutions by considering what is best for satisfaction of customer needs and making the right selection from our extensive product assortment IT vendors Hardware vendor Peripheral equipment Software vendor Telecommunication MEW-IS Replay of needs Alliance Know-how Added value Needs Customers Manufacturing industry Distribution industry Municipalities Trading firm SI Adoption of IT Solution Buyers Documentation Suppliers Soft house Business experience in in MEW Semi-majors and SMEs 6

8 Providing a one-stop solution 7 Ownership of a forerunning infrastructure: IDCs housed in dedicated computer buildings Network linking about 1,800 points nationwide Information Systems Engineers and consultants versed in the business Deep background in system development and operation know-how (more than 40 years of experience) Consulting System planning / design System development System installation One-Stop solution, providing total services from consulting, design, development and operation Operation and management

9 Our strength., Total IT solution Application Business consulting Infrastructure Operation Supporting the customer s s business True business partner with customers (semi-majors and SMEs) 8

10 9.,. Profile of MEW-IS and feature of its business. Financial results in the fiscal year ended March 31, Yearly business plan for the year ending March 31, Plan

11 Financial highlights for FY 2005 (ended 31 March 2006) Sales Operating millions of yen Year ended November 2004 Consolidated 42,108 Year ended March 2006 Ratio to sales reference Ratio to the year ended November , Non-consolidated 41,260 40, Consolidated 3,717 4, income Non-consolidated 3,716 4, Ordinary income Current net income Consolidated 3,685 4, Non-consolidated 3,710 4, Consolidated 2,107 2, Non-consolidated 2,132 2, Sales Operating income Sales in the system solution division exhibited a favorable trend (up 60.0% from the year ended November 2004). Total sales were down (by a corresponding 1.7%), mainly due to the big impact of the drop in sales of system equipment (down 26.6%). Orders for system solutions were more than initially anticipated. There was a decline in the share of total sales occupied by system equipment, which yields low margins. As a result, our operating income margin hit 11.1%, and was in double d digits for the entire year for the first time ever. 10

12 Trend of sales, operating income, and operating income margin (consolidated) sales (Sales: hundreds of millions of yen) 500 operating income operating income margin (Operating income: hundreds of millions of yen) Year ended November 2002 Year ended November 2003 Year ended November 2004 Year ended March 2005 Year ended March

13 Sales by business division (consolidated) millions yen System and communications % equipment business % % % System solution business % % System services System Services System Solution 0 FY ended November 2004 FY ended March % 57.1% 50.5% System and communications equipment 54.8% % 32.2% 40.2% 30.0% % 10.7% 9.4% 15.2% 0 FY ended November 2002 FY ended March 2006 FY ended FY ended November 2003 November 2004 Excluding the (irregular) term ended March

14 Topics in FY 2006 First year under a new president Advancement to a new stage after the journey from establishment to the first stage of scale expansion Buildup of sales in Greater Tokyo Opening of our new Yaesu Office in Tokyo (July 2005) Opening of Solution Plaza as a venue of proposal and consultation services for customers (September 2005) Visits by 100 firms since the opening Holding of theme-specific seminars Staging of the first private fair in Tokyo (November 2005) Attraction of 1,300 guests 13

15 14 Alliances Collaboration with Infoteria in interconnection services Development and sales of various types of system interconnection adapters Collaboration with Dell and HP Japan in thin-client business Amplification of the assortment Collaboration with Fujitsu in ASP-CAD business Realize CAD with thin-client systems Collaboration with Sales Force.Com in SFA Support for making sales visible Approaches to new services Commencement of Mimamori Net services First B to C Services (July 2005) Smooth development of priority solution business Particularly big expansion of thin-client solution and EAI solution sales

16 In fiscal 2005 (ended 31 march 2006), we carried out a selection and consolidation process for low-va business (reduction of system hardware sales). The major system development projects proceeded as anticipated, and income margin rose. Priority solutions Business in priority solutions exhibited a favorable trend. There were many repeat orders as well as first-time ones. Thin-client business 04/11 05/3 four-month 06/3 Sales (hundreds of millions of yen) Sales breakdown Distribution solutions Metaforce 04/11 Schools 11.4 ordinary enterprises 1.8 local governments /3 four-month Schools 18.0 ordinary enterprises 1.6 local governments 6.0 (security 10.7) 06/3 Sales (hundreds of millions of yen) Additional introduction (number of customers) Actual 18 Cumulative 22 Actual 5 Cumulative 27 Actual 20 Cumulative 47 15

17 EAI solution 04/11 05/3 four-month 06/3 Sales (hundreds of millions of yen) Number of customers Actual 25 Cumulative 34 Actual 10 Cumulative 44 Actual 35 Cumulative 79 EAI (Enterprise Application Integration) Middleware for interconnection of internal and external information systems Conventional system interconnection Business integration through EAI DWH Call center Internet transactions DWH Call center Internet transactions Production management Help desk Production management EAI Help desk Sales management ERP Agency system Sales management ERP Agency system 16

18 ., XBRL XBRL enables enables easy easy and and efficient efficient circulation circulation of of corporate corporate financial financial information information (e.g., (e.g., Balance Balance Sheets, Sheets, Statements Statements of of income, income, Statements Statements of of Cash Cash Flows, Flows, Financial Financial report, report, and and Flash Flash Reports). Reports). In In addition, addition, it it allows allows the the handling handling of of such such financial financial information information by by the the various various parties parties (e.g., (e.g., financial financial institutions, institutions, supervisory supervisory institutions, institutions, and and investors). investors). Image of the use of XBRL Banks (loan application) XBRL XBRL XBRL Accounting Stuffs Financial accounting system XBRL XBRL XBRL Tax offices (income tax return) Security exchanges (IR) WWW XBRL Investors Subsidiaries (consolidated closing account) IR Stuffs XBRL Accounting offices / Auditing firms (calculation / auditing) Homepage IR WWW 17

19 ., New services: first full-scale B to C services work for wider recognition Adaptation to the aged society Mimamori Net 05/7 06/3 (Actual) Transferred from MEW in July 2005 Actual introduction New (additional) 53 Cumulative 283 Extremely high degree of media interest Appearance 12 times in newspapers, 24 times in magazines, and 2 times on TV A service enabling relatives to check unobtrusively on the situation and safety of aged living alone using mobile phones and other devices. Aged Aged living living alone alone Care Care side side (children, (children, other other relatives, relatives, etc.) etc.) Rising at 7:00 AM Life situation Life situation Safety information Safety information Sitting in the living room around 11:00 AM Daily notification by 1) Regular transmission 2) Reception of requests 3) Emergency contact Mother woke up as usual and looks as healthy as ever today, too. Easy checking on a daily basis. 18

20 ., (millions of yen) Yearly: 1 billion yen basis Yearly: 1 billion yen basis Yearly: 1 billion yen basis Number of menus 43 (up by 3) 1 st quarter, 4 th term 2 nd quarter, 4 th term 3 rd quarter, 4 th term 4 th quarter, 4 th term 1 st quarter, 5 th term 2 nd quarter, 5 th term 3 rd quarter, 5 th term 4 th quarter, 5 th term 1 st quarter, 6 th term 2 nd quarter, 6 th term 3 rd quarter, 6 th term 4 th quarter, 6 th term 7 th term (irregular) 1 st quarter, 8 th term 2 nd quarter, 8 th term 3 rd quarter, 8 th term 4 th quarter, 8 th term 19

21 20.,. Profile of MEW-IS and feature of its business. Financial results in the fiscal year ended March 31, Yearly business plan for the year ending March 31, Plan

22 21 Yearly business plan for the year ending march 31, 2007 (millions of yen) FY ended March 2006 FY ending March 2007 (forecast) Y o Y ratio Ratio to Sales (%) Sales 41, , Operating Income Ordinary income Net income Consolidated 41,385 Nonconsolidated 40,403 Consolidated Nonconsolidated Consolidated Nonconsolidated Consolidated Nonconsolidated 4,610 4,554 4,652 4,602 2,800 2,748 4,700 4,700 4,700 4,700 2,800 2,

23 22., Sales by business division (consolidated) (hundreds of millions of yen) % % % System hardware and communications equipment business % % 73 18% Service solutions business System solutions % % % % % Service solutions business System Services % 0 FY ended November 2004 FY ended March 2005 Four-month period (Dec Mar. 2005) FY ended March 2006 FY ended March 2007 (forecast)

24 Trend of sales, operating income, and operating income margin (consolidated) Sales Operating income Operating income margin Sales : hundreds of millions of yen (Operating income : hundreds of millions of yen) month period (Dec Mar. 2005) FY ended November 2003 FY ended November 2004 FY ended March 2005 FY ended March 2006 FY ended March 2007 (forecast) 0 23

25 Semiannual trend of sales and operating income (consolidated) Sales (hundreds of millions of yen) % % % 13.9% 16.5% 15.1% % 20.4% 57.7% 52.1% 62.2% 52.0% System hardware and communications equipment System solutions System services 0 06/3 the first half 06/3 the second half 07/3 the first half 07/3 the second half (hundreds of millions of yen) Operating income 20 Expansion of Unearthing new projects collaboration after the collaboration /3 the first half 06/3 the second half 07/3 the first half 07/3 the second half 24

26 Combination of solutions Core materials Increase in value-added System interconnection ex. Harvest ex. Otegaru Call Center ex. Thin-client Increase in marketing might ex. Harvest Tools for business visualization Tools to prevent information leaks DB search tools Our existing core material A Our existing core material B Increase in value-added Operation Other System C Overall optimization Rebuilding from new perspectives and angles, into solutions matching client needs Our existing core material D Clear Clear definition of of advantage from from the the marketing standpoint 25

27 Business strategy priority products Thin-client solutions Shift from the usual sales of thin-client systems alone to proposal of solutions combined with applications Case 1 Call center + thin-client + security items Human sensor Diskless terminals Surveillance camera Thin-client Security gate Interconnection Biometrics ID Non-contact IC card access control system PC log-on on card interconnection Otegaru Call Center 26

28 27 Thin-client solutions Shift from the usual sales of thin-client systems alone to proposal of solutions combined with applications Case 2 Thin-client + ASP-CAD 2D CAD ASP services Office Lap-top PC ASP Data center CAD software Business site Editing / referencing Domestic plant Lap-top PC Partner firm Desk-top PC SSL-VPN SSL-VPN Internet Internet Desk-top PC Thin-client system Internet Drawing design work CAD ASP server Internet Thin-client system

29 Deployment of services interconnected with major package software and application services Case Salesforce + ASTERIA Marketing of the new Asteria Salesforce adapter (April 12) Reduction of costs through shortening of development lead time Making sales visible ERP NOTES Legacy, etc. Within the client network Adopter Employee information Business partner information Product information Forecasting Business talk history Client information Products Products Product Product master master Price Price sheet sheet etc. etc. Business Business talks talks Business Business talk talk information information Process Process management management document document submitted submitted etc. etc. Profile Profile information information Profile information Profile information Activity schedule & history Activity schedule & history Inquiry information Inquiry information etc. etc. Sales 28

30 (Engineering chain management) objectives Increase in the speed and productivity of new product development Reuse and sharing of design data Provision of design data to SCM and sales Grasp of cost in real time Use for intensive purchase of components and materials ECM SCM etc. Establishment of value chain management ECM commercialization axis Product conception Advertising Marketing Individual order-based production Provision of product information Anticipatory production BOM PLM 3DCAD Product Development of development facilities and molds PDM Innovation / quality services Good quality / satisfactory cost Timely deliverly / environmental measures SCM objectives Contraction and rationalization of inventory (Shift from products to materials as inventory subjects) Manufacturing rationalization and cost reduction Cell production shift Buildup into a new core business Sales / services Order receipt Procurement Intensive purchasing Production Logistics Recycling 29

31 Aims., Reorganization of the sales setup Acceleration of external sales business Strengthening of capacity for distribution and sales Deeper cultivation of existing customers Repeat orders Timely and effective proposals matching the customer s management issues Better support for group companies IT solutions of higher quality rooted in local needs Closer relations with partner firms Promotion of alliance and collaboration business Being a best partner for our customers First-rate First-rate clients clients (A-list (A-list clients) clients) Existing clients clients Sales Headquarters East Japan Solution Sales Dept. West Japan Solution Sales Dept. Logistics Solution Sales Dept. Potential Potential // prospective prospective clients clients 30

32 31.,. Profile of MEW-IS and feature of its business. Financial results in the fiscal year ended March 31, Yearly business plan for the year ending March 31, Plan

33 32., Trend of the Japanese IT market, (millions of yen) Average annual growth rate 1.8% 2006/ trillion 12.8 trillion IT services Package software Hardware Type of product Hardware Package software IT services Market trend to 2010 Rating

34 33., Orientation of basic strategy Increase in sale per customer and customer base System services System operation Creation of new business Contribution to management, solutions System proposals Solution proposals System solutions Solution sales Further reinforcement of system services Hardware sales and construction

35 34., 2010 numerical management targets Sales Operating income (margin) 70 billion yen Non-MEW sales rate: about 65% 7.5 billion yen 10.7% Breakdown of sales by customer Other firms 30% MEW-affiliated firms 20% MEW 50% Other firms 45% MEW 35% MEW-affiliated firms 20% At present 2010 target

36 35., Groundwork for the 2010 Plan Creation of new business Strengthening of the setup for new business creation a unit directly under the CEO New Business Planning Office Bundling of the new business / product creation capabilities of each division Construction of an interdivisional unit Product conception aligned with strengths Interweaving of distinctive technologies and products Study of new business domains over the medium and long terms Devising of business models

37 Human Human resources resources 1) Reinforced hiring 2) Better human resource development., Groundwork for the 2010 Plan Human resource recruitment and development Human Human assets assets Active investment in human assets to solidify core business and expedite business planning Regular hiring: solidification of core business Mid-career hiring: immediate manpower in each job category sales per employee: million yen Actual ranking in FY 2004 Japan Unisys Itochu Technoscience NRI Data Service MEW-IS NTT-Data Nippon Information and Communication 7 DoCoMo Systems 12,913 11,438 9,957 9,731 9,688 6,966 6,786 Ranking for sales in the information service industry, Computopia, Sept For development of human assets with balanced technical, human, and conceptual capabilities Further reinforcement of project management skills 36

38 37., This document includes the current plans and financial forecasts of MEW-IS. Those future plans and forecast figures have been made based on information currently available. Actual results may differ from those forecasts due to various factors and conditions, therefore this document doesn t assure or guarantee the realization of the plans and forecasts.