Results Briefing For the Year Ended March 31, 2018

Transcription

1 Results Briefing For the Year Ended March 31, 2018 May 15, 2018 *NOTICE: This document is a translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail Relia, Inc. All rights reserved.

2 Relia, Inc. All rights reserved. Overview of FY 2017

3 Overview of Consolidated Results for the Year Ended March 2018 (million JPY, Amounts of less than one million yen are rounded down) FY2016 FY2017 % change Net Sales 96, , % Gross Income (margin) 13, % 16, % +20.9% SG&A expenses 9,005 10, % Of which, amortization of goodwill 434 1,737 x4 Operating Income (margin) 4, % 5, % +21.0% Ordinary Income 4,371 5, % Profit attributable to owners of parent 3,264 3, % (Reference) Operating income before amortization of goodwill 4,806 7, % 3,698 5,144 Profit before amortization of goodwill +39.1% * Operating income before amortization of goodwill = Operating income + amortization of goodwill Profit before amortization of goodwill = Profit attributable to owners of parent + amortization of goodwill Relia, Inc. All rights reserved.

4 Transition of Consolidated Sales Overseas Sales Large spot business (Japan) Recurring business (Japan) FY2016 H1 FY2016 H2 FY2017 H1 * Overseas sales is a simple total of sales results for SPi CRM, Inc. Infocom technologies, Inc. and MOCAP VIETNAM JSC. FY2017 H Relia, Inc. All rights reserved.

5 Major Change Factors Net Sales On a non-consolidated basis, recurring business continued to expand Slight decline in domestic affiliate sales due to the restructuring of the Field Operation Business Overseas affiliates sales included in consolidated sales FY2016 Previous year s spot business down Spot business up Expansion, etc. of recurring business Domestic affiliates down Overseas affiliates up Consolidated adjustments, etc. FY2017 Non-consolidated factors Consolidated factors *Overseas affiliate sales comparison is based on a simple total of sales results of SPi CRM, Inc., Infocom technologies, Inc., and MOCAP VIETNAM JSC Relia, Inc. All rights reserved.

6 Major Change Factors Operating Income before amortization of goodwill Expansion of recurring business and productivity improvements resulted in improvement of non-consolidated operating income Rebound from acquisition costs and other temporary costs of previous year Overseas affiliates earnings included FY2016 Spot business down Expansion of recurring business, gross margin improved SG&A costs down Domestic affiliates Overseas affiliates Consolidation adjustments, etc. FY2017 Non-consolidated factors Consolidated factors *Overseas affiliate operating income comparison is based on a simple total of operating income results of SPi CRM, Inc., Infocom technologies, Inc., and MOCAP VIETNAM JSC Relia, Inc. All rights reserved.

7 Contact Center Business 50 Segment Profit (right axis) Overseas Sales Large spot business (Japan) Recurring business (Japan) FY2016 H1 FY2016 H2 FY2017 H1 FY2017 H2 * Overseas sales is a simple total of sales results for SPi CRM, Inc. Infocom technologies, Inc. and MOCAP VIETNAM JSC Relia, Inc. All rights reserved.

8 Back Office Business 10 Segment Profit (right axis) Large spot business (Japan) Recurring business (Japan) FY2016 H1 FY2016 H2 FY2017 H1 FY2017 H Relia, Inc. All rights reserved.

9 Field Operation Business 5 Segment Profit (right axis) 0.5 OTC Services Sales 4 Visiting Services Sales FY2016 H1 FY2016 H2 FY2017 H1 FY2017 H Relia, Inc. All rights reserved.

10 Consolidated Sales by Industry (Consolidated subsidiaries in Japan) Telecommunications Financial services Utilities/ Infrastructure Government/ municipal offices Broadcasting Manufacturing Information Retail/distribution FY2017 Services, etc FY Relia, Inc. All rights reserved.

11 Growing Contribution of Automation Platforms Acceleration in number of companies introducing Virtual Agent New orders and expansion of existing business incorporating automated platforms FY2016 FY2017 FY2018 (forecast) FY2016 FY2017 FY2018 (forecast) FY2016 FY2017 FY2018 (forecast) Trend in number of clients introducing automation platforms * Figures for clients already operating Trend in sales revenue from automation platforms Trend in sales revenue from new sales with automation platforms incorporated Relia, Inc. All rights reserved.

12 Progress of Mid-term Business Plan Relia, Inc. All rights reserved.

13 Business Strategy 2018 Outcomes Business Strategy Satisfy various customer needs Grow with society Challenge new possibilities Outcomes Enhancement of call centers Expansion of introduction of automated platforms Enhancement of marketing functions (inside sales) Major expansion for operations of utilities industry due to electricity liberalization Progress in operations in financial back office business Conversion of SPi CRM and Infocom Technologies into subsidiaries Strengthening of core Competence Development of Relia ICT Suite Recruitment of regional full-time employees Relia, Inc. All rights reserved.

14 Examples of Initiatives to Respond to Growing Sophistication of Customer Needs Enhancement of call centers Expansion of introduction of automated platforms Enhancement of marketing functions Mizuho Contact Center Shared center for Mizuho Bank, Mizuho Trust & Banking, and Mizuho Securities Cost savings due to use of common center systems and labor cost reductions Took advantage of differences in three companies busy and slow periods to achieve improvements in outbound call efficiency and take-up rate Expansion of automated platforms Expansion of introduction of chatbots (Virtual Agent ), voicerecognition IVR (Relia Voice Cloud ), etc. ユーからの電話を独自のインター Automation needs remain strong, セプト機能でWebやSNSへ誘 so striving to expand customer 導 contact services that incorporate automated platforms Inside Sales Non face-to-face corporate sales agents Opened Relia Sales Base, a center that offers packages that include personnel with sales skills and (Relia-developed) sales management systems Relia, Inc. All rights reserved.

15 Business Strategy 2018 Outcomes FY2014 FY Consolidated sales Contact Center Business sales Back Office Business sales Overseas sales* Operating income Operating income before 3.7 amortization of goodwill 7.0 * Overseas sales is a simple total of sales results for consolidated subsidiaries doing business outside Japan, namely SPi CRM, Inc. Infocom technologies, Inc. and MOCAP VIETNAM JSC Relia, Inc. All rights reserved.

16 Business Strategy 2018 Outcomes Concentrated on expansion of recurring business and achieved growth that exceeded Japan s call center market growth 100 Domestic recurring business growth rate Domestic recurring business sales +9% % FY2014 FY2015 FY2016 FY Relia, Inc. All rights reserved.

17 Business Plan for FY Relia, Inc. All rights reserved.

18 Budget Outlook for FY 2018 Net Sales 115.0(+4.7%) Operating Income 7.8(+11.0%) (before amortization of goodwill) Profit 5.5(+6.9%) (before amortization of goodwill) Relia, Inc. All rights reserved.

19 Transition of Consolidated Sales (Plan) Overseas Sales Large spot business (Japan) Recurring business (Japan) Domestic business Promote integrated services Strengthen BPO business Invest in human resources - Enhance recruitment capacity and outsourcing controls - Improve employees salaries and benefits Introduce long-term disability income indemnity scheme Review salary standards Overseas business Build global operations framework - Expand multi-national clients (MNC) - Synergy Projects with Mitsui & Co. - Second U.S. site FY2016 FY2017 FY2018 (forecast) Relia, Inc. All rights reserved.

20 Return to Shareholders Dividend forecast: Annual: JPY 36 per share (JPY 18 per share interim dividend, JPY 18 per share year-end dividend) (JPY) Dividend payout ratio 81% DPS (%) 80 73% 64% 65% 61% FY2014 FY2015 FY2016 FY2017 FY2018 (forecast) Relia, Inc. All rights reserved.

21 Cautionary Statement This material contains statements (including figures) regarding Relia, Inc. ( Relia )'s corporate strategies, objectives, and views of future developments that are forward-looking in nature and are not simply reiterations of historical facts. These statements are presented to inform stakeholders of the views of Relia's management but should not be relied on solely in making investment and other decisions. You should be aware that a number of important risk factors could lead to outcomes that differ materially from those presented in such forward-looking statements. These include, but are not limited to, (i) change in economic conditions that may lead to unforeseen developments in markets for products handled by Relia, (ii) fluctuations in currency exchange rates that may cause unexpected deterioration in the value of transactions, (iii) adverse political developments that may create unavoidable delays or postponement of transactions and projects, (iv) changes in laws, regulations, or policies in any of the countries where Relia conducts its operations that may affect Relia's ability to fulfill its commitments, and (v) significant changes in the competitive environment. In the course of its operations, Relia adopts measures to control these and other types of risks, but this does not constitute a guarantee that such measures will be effective. All rights reserved Relia, Inc. All rights reserved.