Results for Q3 FY14 Ended December 31, 2014 (Financial version)

Transcription

1 Results for FY14 Ended December 31, 2014 (Financial version) Net One Systems Co., Ltd. TSE : 7518

2 Contents 1 Q1-3 FY14 (Apr-Dec 9months) P FY14 (Oct-Dec 3months) P Outlook of Consolidated for FY14, Ending March 31, 2015 P

3 1 Q1-3 FY14 (Apr-Dec 9months) P FY14 (Oct-Dec 3months) P Outlook of Consolidated for FY14, Ending March 31, 2015 P

4 - 1 - Overview of Financial Report Q1-3 (Apr-Dec 9 months cumulative) Q1-3 FY14 Q1-3 FY13 Actual Actual Change Ratio Bookings 104, ,091 2, % 140, % YoY Outlook FY14 Revised Oct 31,2014 Progress of Revised Outlook Revenue 91,963 95,037 (3,073) - 3.2% 136, % Operating income 1, ,222-3, % OP margin 1.5% 0.1% % - Ordinary income 1, % 4, % Net income(loss) 813 (741) 1,554-2, % Bookings/Revenue Operating income : Continuing the progress in line with our plan from the second quarter. : Progress in line with our plan.

5 - 2 - Overview of Financial Report Q1-3 (Apr-Dec 9 months cumulative) Market sector <Bookings> Product category <Bookings> 101, ,042 30,052 27,028 28,557 28,331 27,006 31,824 14,661 16,305 Q1-3 FY13 Q1-3 FY14 Enterprise Telecom Carrier Public 101, ,042 47,481 50,938 18,162 16,478 NOP [Partner biz] 35,447 36,626 Q1-3 FY13 Q1-3 FY14 Network products Platform products Service businesses Market sector <Revenue> Product category <Revenue> 95,037 91,963 27,374 25,522 34,153 29,399 20,364 22,715 12,299 13,735 Q1-3 FY13 Q1-3 FY14 Enterprise Telecom Carrier Public 95,037 91,963 44,773 41,213 14,132 13,538 NOP [Partner biz] 36,131 37,211 Q1-3 FY13 Q1-3 FY14 Network products Platform products Service businesses

6 Bookings, Revenue, Backlog by Market Sector Q1-3 (Apr-Dec 9 months cumulative) Q1-3 FY14 Q1-3 FY13 YoY Annual FY13 Actual Ratio Actual Ratio Change Ratio Actual Ratio Bookings ( Apr-Dec ) 104, % 101, % 2, % 146, % Enterprise 27, % 30, % (3,023) -10.1% 44, % Telecom Carrier 28, % 28, % (225) -0.8% 45, % Public 31, % 27, % 4, % 36, % NOP [Partner biz] 16, % 14, % 1, % 19, % Other % % (261) -32.2% % Revenue ( Apr-Dec ) 91, % 95, % (3,073) -3.2% 142, % Enterprise 25, % 27, % (1,852) -6.8% 41, % Telecom Carrier 29, % 34, % (4,754) -13.9% 45, % Public 22, % 20, % 2, % 34, % NOP [Partner biz] 13, % 12, % 1, % 18, % Other % % (253) -30.0% % Backlog ( Dec-31 ) 67, % 57, % 9, % 55, % Enterprise 18, % 16, % 1, % 16, % Telecom Carrier 14, % 11, % 3, % 16, % Public 25, % 21, % 3, % 16, % NOP [Partner biz] 8, % 7, % 1, % 5, % Other % % (20) -39.5% % (Note) Previous year results were recalculated to reflect the revised segment organization effective April 1,

7 Bookings, Revenue, Backlog by Product Category Q1-3 (Apr-Dec 9 months cumulative) Q1-3 FY14 Q1-3 FY13 YoY Annual FY13 Actual Ratio Actual Ratio Change Ratio Actual Ratio Bookings ( Apr-Dec ) 104, % 101, % 2, % 146, % Network products 50, % 47, % 3, % 64, % Platform products 16, % 18, % (1,684) -9.3% 24, % Service businesses 36, % 35, % 1, % 57, % Revenue ( Apr-Dec ) 91, % 95, % (3,073) -3.2% 142, % Network products 41, % 44, % (3,560) -8.0% 65, % Platform products 13, % 14, % (593) -4.2% 22, % Service businesses 37, % 36, % 1, % 53, % Backlog ( Dec-31 ) 67, % 57, % 9, % 55, % Network products 20, % 15, % 5, % 11, % Platform products 7, % 7, % % 4, % Service businesses 38, % 34, % 3, % 39, % (Note) [Network products] Router, Switch, Networking equipment, etc. [Platform products] Server/Storage, Virtualization software, Video conferencing, IP phone, etc. [Service businesses] Consulting, System design, Installation, Service/Operation management, Technology training, etc

8 - 5 - Consolidated Income Statements Q1-3 (Apr-Dec 9 months cumulative) Q1-3 FY14 Q1-3 FY13 YoY Annual FY13 Actual Ratio Actual Ratio Change Ratio Actual Ratio Bookings 104, % 101, % 2, % 146, % Revenue 91, % 95, % (3,073) -3.2% 142, % Cost of sales 70, % 73, % (3,130) -4.3% 110, % Gross margin 21, % 21, % % 31, % Selling, general and administrative expenses 20, % 21, % (1,165) -5.4% 28, % Operating income 1, % % 1,222-3, % Non-operating income(loss) % % (316) -94.7% % Ordinary income 1, % % % 3, % Extraordinary income(loss) (27) 0.0% (1,015) -1.1% (1,040) -0.7% Income before income taxes and minority interests 1, % (568) -0.6% 1,893-2, % Net income(loss) % (741) -0.8% 1, % (Note) Consolidated subsidiaries : Net One Partners Co., Ltd. / Xseed Co., Ltd. Equity method affiliates : JBS Technology, Inc.

9 - 6 - Consolidated Balance Sheets Dec 31, 2014 Dec 31, 2013 YoY Actual Ratio Actual Ratio Change Ratio Total assets 90, % 85, % 4, % Current assets 78, % 73, % 5, % Cash and deposits + CD CP 20, % 23, % (2,235) -9.7% Notes and accounts receivable-trade 26, % 23, % 3, % Inventory assets 20, % 16, % 3, % Other 10, % 10, % % Noncurrent assets 11, % 11, % (497) -4.2% Property, plant and equipment 5, % 5, % (290) -4.9% Intangible assets 1, % 1, % % Investment etc. 4, % 4, % (296) -6.7% Total liabilities 34, % 29, % 4, % Current liabilities 32, % 27, % 4, % Accounts Payable-Trade 14, % 11, % 3, % Advances received 13, % 11, % 1, % Other 4, % 5, % (659) -13.0% Non-current liabilities 2, % 1, % % Total net assets 55, % 55, % (246) -0.4% Shareholders equity 55, % 55, % (162) -0.3% Capital stock 12, % 12, % 0 0.0% Capital surplus 19, % 19, % 0 0.0% Retained earnings 24, % 27, % (2,527) -9.3% Treasury stock (1,152) -1.2% (3,518) -4.1% 2,365 - Accumulated other comprehensive income % % % Subscription rights to shares % % % Minority interests % - - Total liabilities and net assets 90, % 85, % 4, %

10 - 7 - FY14 Revenue and Profit and Loss Amount by Reportable Segment Q1-3 (Apr-Dec 9 months cumulative) Q1-3 Ended Dec 31, 2014 (Actual) Enterprise Telecom Carrier Public NOP Sub-total Revenue 25,533 29,399 22,715 13,739 91,387 1,300 92,688 (724) 91,963 External revenue 25,522 29,399 22,715 13,735 91, ,963-91,963 Inter-segment revenue or transactions Reportable segment (724) - Segment margin 981 2,233 (2,438) 949 1, ,883 (548) 1,334 Other Total Adjustment Amount recorded in consolidated income statements Q1-3 Ended Dec 31, 2013 (Previous) Revenue 27,388 34,153 20,368 12,462 94,372 1,601 95,974 (936) 95,037 External revenue 27,374 34,153 20,364 12,299 94, ,037-95,037 Inter-segment revenue or transactions (936) - Segment margin 394 2,137 (2,601) (474) 111 (Notes) 1. The Other segment is not included as a reportable segment. It contains the server service business and other businesses. 2. The adjustment in segment margin (operating income) included corporate expenses not attributable to any reportable segment. Corporate expenses are mainly related to general administrative expenses not attributable to reportable segment. 3. Previous year results were recalculated to reflect the revised segment organization effective April 1, 2014.

11 1 Q1-3 FY14 (Apr-Dec 9months) P FY14 (Oct-Dec 3months) P Outlook of Consolidated for FY14, Ending March 31, 2015 P

12 - 8 - Overview of Financial Report (Oct-Dec 3 months quarterly) 9,403 10,833 9,741 9,141 10,695 10,982 9,192 9,479 9,780 (million yen, %yoy) 5,373 6,730 6,908 5,424 5,680 3,774 4,361 FY13 FY14 FY13 FY14 FY13 FY14 FY13 FY % - 6.2% % % % % + 4.7% % Bookings Revenue Bookings Revenue Bookings Revenue Bookings Revenue Enterprise Telecom carrier Public NOP [Partner biz] FY13 FY14 FY13 FY14 FY13 FY14 FY13 FY14 Market Conditions Enterprise : Strong demand by network infrastructure for the data center business and the collaboration tool with video. Telecom carrier : Healthy growth by the deal of cloud building projects. Public : Continuously strong demand by system optimization using virtual desktop infrastructure(vdi) and unified platform infrastructure. NOP[Partner biz] : Healthy growth of mainly network products by our partner engagements.

13 Bookings, Revenue, Backlog by Market Sector (Oct-Dec 3 months quarterly) FY14 FY13 Actual Ratio Actual Ratio Change Ratio Bookings ( Oct-Dec ) 37, % 27, % 10, % Enterprise 10, % 9, % 1, % Telecom Carrier 10, % 5, % 5, % Public 9, % 6, % 2, % NOP [Partner biz] 5, % 5, % % Other % % % Revenue ( Oct-Dec ) 32, % 31, % 1, % Enterprise 9, % 9, % (599) -6.2% Telecom Carrier 9, % 10, % (1,790) -16.3% Public 9, % 6, % 2, % NOP [Partner biz] 4, % 3, % % Other % % % Backlog ( Dec-31 ) 67, % 57, % 9, % Enterprise 18, % 16, % 1, % Telecom Carrier 14, % 11, % 3, % Public 25, % 21, % 3, % NOP [Partner biz] 8, % 7, % 1, % Other % % (20) -39.5% (Note) Previous year results were recalculated to reflect the revised segment organization effective April 1, YoY - 9 -

14 Bookings, Revenue, Backlog by Product Category (Oct-Dec 3 months quarterly) FY14 FY13 YoY Actual Ratio Actual Ratio Change Ratio Bookings ( Oct-Dec ) 37, % 27, % 10, % Network products 19, % 14, % 5, % Platform products 5, % 4, % 1, % Service businesses 12, % 9, % 3, % Revenue ( Oct-Dec ) 32, % 31, % 1, % Network products 14, % 13, % 1, % Platform products 6, % 6, % % Service businesses 12, % 11, % % Backlog ( Dec-31 ) 67, % 57, % 9, % Network products 20, % 15, % 5, % Platform products 7, % 7, % % Service businesses 38, % 34, % 3, % (Note) [Network products] Router, Switch, Networking equipment, etc. [Platform products] Server/Storage, Virtualization software, Video conferencing, IP phone, etc. [Service businesses] Consulting, System design, Installation, Service/Operation management, Technology training, etc

15 Consolidated Income Statements (Oct-Dec 3 months quarterly) FY14 FY13 YoY Actual Ratio Actual Ratio Change Ratio Bookings 37, % 27, % 10, % Revenue 32, % 31, % 1, % Cost of sales 25, % 24, % % Gross margin 7, % 6, % 1, % Selling, general and administrative expenses 6, % 6, % (132) -2.0% Operating income 1, % % 1, % Non-operating income(loss) (111) -0.3% % (358) - Ordinary income 1, % % % Extraordinary income(loss) (13) 0.0% (2) 0.0% (10) - Income before income taxes and minority interests 1, % % % Net income % % % (Note) Consolidated subsidiaries : Net One Partners Co., Ltd. / Xseed Co., Ltd. Equity method affiliates : JBS Technology, Inc.

16 1 Q1-3 FY14 (Apr-Dec 9months) P FY14 (Oct-Dec 3months) P Outlook of Consolidated for FY14, Ending March 31, 2015 P

17 Outlook for FY14 Market sector <Bookings> Market sector <Revenue> 140,000 Total Bookings 74.3% 136,000 Total Revenue 67.6% 101,091 30, ,042 27,028 40,000 37,000 Enterprise 67.6% Telecom carrier 76.6% 95,037 91,963 27,374 25,522 38,500 38,000 Enterprise 66.3% Telecom carrier 77.4% 28,557 28,331 39,000 Public 81.6% 34,153 29,399 36,500 Public 62.2% 27,006 31,824 14,661 16,305 24,000 NOP [Partner biz] 67.9% 20,364 22,715 12,299 13,735 23,000 NOP [Partner biz] 59.7% FY13 Actual FY14 Actual FY14 Outlook Revised Oct 31, 2014 FY13 Actual FY14 Actual FY14 Outlook Revised Oct 31, 2014 Market Status Enterprise : Healthy growth Telecom carrier : Progress with the plan Public : Growth to continue next a few years NOP[Partner biz] : Growth with partner engagements

18 Outlook for FY14 by Market Sector (million yen, %yoy) Revised Oct 31, 2014 (1) / (2) Bookings 104, % 140, % 35, % Enterprise 27, % 40, % 12, % Telecom Carrier 28, % 37, % 8, % Public 31, % 39, % 7, % NOP [Partner biz] 16, % 24, % 7, % Other % Revenue 91, % 136, % 44, % Enterprise 25, % 38, % 12, % Telecom Carrier 29, % 38, % 8, % Public 22, % 36, % 13, % NOP [Partner biz] 13, % 23, % 9, % Other % FY Ending Mar 31, 2015 Q1-3 Results (1) Annual Outlook (2) (2) - (1) Dec 31, 2014 Dec 31, 2013 YoY Actual Ratio Actual Ratio Change Ratio Backlog 67, % 57, % 9, % Enterprise 18, % 16, % 1, % Telecom Carrier 14, % 11, % 3, % Public 25, % 21, % 3, % NOP [Partner biz] 8, % 7, % 1, % Other % % (20) -39.5%

19 Outlook for FY14 by Product Category FY Ending Mar 31, 2015 (million yen, %yoy) Q1-3 Results (1) Annual Outlook (2) Revised Oct 31, 2014 (2) - (1) (1) / (2) Bookings 104, % 140, % 35, % Network products 50, % 61, % 10, % Platform products 16, % 25, % 8, % Service businesses 36, % 54, % 17, % Revenue 91, % 136, % 44, % Network products 41, % 58, % 16, % Platform products 13, % 22, % 8, % Service businesses 37, % 56, % 18, % Dec 31, 2014 Dec 31, 2013 YoY Actual Ratio Actual Ratio Change Ratio Backlog 67, % 57, % 9, % Network products 20, % 15, % 5, % Platform products 7, % 7, % % Service businesses 38, % 34, % 3, % (Note) [Network products] Router, Switch, Networking equipment, etc. [Platform products] Server/Storage, Virtualization software, Video conferencing, IP phone, etc. [Service businesses] Consulting, System design, Installation, Service/Operation management, Technology training, etc.

20 Outlook for FY14 Consolidated Income Statements (million yen, % to Revenue) FY Ending Mar 31, 2015 Q1-3 Results Annual Outlook Revised Oct 31, 2014 (2) - (1) (1) / (2) Bookings 104, % 140, % 35, % 74.3% Revenue 91, % 136, % 44, % 67.6% Cost of revenue 70, % 104, % 34, % 67.2% Gross profit 21, % 31, % 9, % 69.1% Selling, general and administrative expenses 20, % 27, % 7, % 73.8% Operating income 1, % 3, % 2, % 35.1% Ordinary income 1, % 4, % 2, % 33.8% Net income % 2, % 1, % 35.4% Dividends per share Capital expenditures Depreciation Exchange rate (Notes) 1,872 3,000 2,034 2, Usd/Yen Usd/Yen As of Dec 31, 2014 As of Mar 31, 2013 Employees (person) 2,386 2,436 (Notes) 1. On November 25, 2014, an interim dividend of yen per share was paid to shareholders of record as of September 30, The Company is planning to the year-end dividend payment of yen per share that was announced at the beginning of fiscal year.

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