Presentation of Finances

Transcription

1 Code No: 4283 Presentation of Finances First Quarter Ended June 30, 2014 (Consolidated) July 24, 2014

2 Agenda 1 1. Overview of FY2014 Tatsuo Yoshikawa Director and Account Manager 2. Review of FY2014 Business Strategies for FY2014 Kazuhiro Maegawa, President Copyright(C) 2014 All rights reserved.

3 Presentation of Finances First Quarter Ended June 30, 2014 (Consolidated) July 24, 2014 Tatsuo Yoshikawa Director and Account Manager

4 Key Points of FY2014 Performance (Apr.-June) 3 1. Net Sales Net sales decreased due to a decrease in system development 2. Profit Profit decreased due to decreased sales of system solutions and an increase in factors of a lower cost rate 3. Order Backlog Projects that will lead to net sales after Q2 FY2014 increased Copyright(C) 2014 All rights reserved.

5 FY2014 Performance (Apr.-June) Decreased sales and profit 4 (Millions of Yen/%) FY2013 FY2014 First Half Profit Profit Sum Rate Rate YOY Sum FY2014 (Forecast) Full-year FY2014 (Forecast) Net Sales 8,309-8, ,700 37,000 Operating Income Ordinary Income 1, ,100 4,500 1, ,100 4,500 Net Income ,290 2,750 Copyright(C) 2014 All rights reserved.

6 Net Sales (Apr.- June) Net sales decreased in system solutions (Millions of Yen) System Solutions System Services 5 9,000 6,000 7,733 8,290 7,843 2,113 2,717 2,389 8,309 8,102 2,684 2,386 3,000 5,619 5,573 5,454 5,624 5,716 0 FY2010 FY2011 FY2012 FY2013 Copyright(C) 2014 All rights reserved. FY2014

7 Operating Income (Margin) (Apr.-June) Operating income decreased due to decreased sales of system solutions and an increase in factors of a lower cost rate (Millions of Yen) , , % Operating Margin 1, Operating Income 0 FY2010 FY2011 FY2012 FY2013 Copyright(C) 2014 All rights reserved. FY2014

8 Operating Income (Apr.-June) Operating income decreased due to decreased sales of system solutions and an increase in factors of a lower cost rate 7 1,259 Special Factors of FY2013 Price Drop Increase in Sales Streamlining Labor Cost (Millions of Yen) FY2013 FY2014 Copyright(C) 2014 All rights reserved.

9 Breakdown of Net Sales & Gross Margin by Business (Apr.-June) System Services -Net sales of services for general market increased -Gross margin decreased (Millions of Yen) 6,000 5,000 4,000 3,000 2,000 1, Copyright(C) 2014 All rights reserved. 17.3% 5,619 5,573 5,454 5,624 5,716 FY2010 FY2011 FY2012 FY2013 FY Gross Margin Net Sales

10 Breakdown of Net Sales & Gross Margin by Business (Apr.-June) 9 System Solutions The launch of the project for the Panasonic Group was delayed (Millions of Yen) % Gross Margin 3,000 2,000 2,113 2,717 2,389 2,684 2,386 Net Sales 1,000 0 FY2010 FY2011 FY2012 FY2013 Copyright(C) 2014 All rights reserved. FY2014

11 Order Backlog 10 Projects that will lead to net sales after Q2 FY2014 increased (Millions of Yen) 6,000 5,000 4,000 3,000 2,878 4,779 4,462 2,597 2,824 3,657 4,015 3,122 4,128 2,000 1,000 0 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 FY2012 FY2013 FY2014 Copyright(C) 2014 All rights reserved.

12 Earnings Forecast for FY FY2013 Full Year (Profit Rate) First Half (Profit Rate) FY2014 (Forecast) (Millions of Yen/%) Full Year YOY YOY (Profit Rate) Net Sales 36,333 17, , Operating Income 4,464 (12.3) 2,100 (11.9) ,500 (12.2) Ordinary Income 4,498 (12.4) 2,100 (11.9) ,500 (12.2) Net Income 2,685 (7.4) 1,290 (7.3) ,750 (7.4) Copyright(C) 2014 All rights reserved.

13 Presentation of Finances First Quarter Ended June 30, 2014 (Consolidated) July 24, 2014 Kazuhiro Maegawa President

14 Corporate Data 13 Company Name Established President Nature of Business Paid-in Capital Number of Employees February 22, 1999 Kazuhiro Maegawa Information services 1,040 million (as of Mar. 31, 2014) 687 (as of Mar. 31, 2014) Copyright(C) 2014 All rights reserved.

15 Business Model 61.2% System Services 14 System proposal Solution proposal (Composition ratio is as of Mar. 31, 2014) Proposals and provisions of application services and system infrastructure Cloud services Outsourcing services 38.8% System Solutions Operation services Maintenance services Proposals and constructions of system and equipment for business solutions Commissioned system development Infrastructure architecture Consulting Development of package software System and Communications Equipment Sales of computers, servers, and communications equipment Network and facility construction Clients Copyright(C) 2014 All rights reserved.

16 Business Model Clients Panasonic Group Market strongly connected with the Group business General Market 15 General IT market Offers Support to develop and operate business systems Collaborate with Panasonic products and IT solutions Expand business based on the cultivated know-how Panasonic IS Activities For Panasonic Group Participate in business strategies Participate in business innovation Synergy For General Market Propose to reform and streamline operations Propose to reform infrastructures Keep providing a perfect IT environment for Panasonic Corporation Eco Solutions Company (ES Company) Offer the capability to develop and operate cultivated in ES Company to the general market Offer the know-how to rationalize and streamline cultivated in the general market to ES Company Copyright(C) 2014 All rights reserved.

17 Business Model Business Deployment Centering on Clients and Products 16 General Market Panasonic Group Client Orientation Product Orientation System Services System Solutions Copyright(C) 2014 All rights reserved.

18 Review of FY2014

19 Looking Back on FY2014 (Apr.-June) Decreased sales and profit FY2013 (Apr.-June) Sum Profit Rate Sum FY2014 (Apr.-June) Profit Rate YOY First Half FY2014 (Forecast) 18 (Millions of Yen/%) Full Year FY2014 (Forecast) Net Sales 8,309-8, ,700 37,000 Operating Income Ordinary Income 1, ,100 4,500 1, ,100 4,500 Net Income ,290 2,750 Copyright(C) 2014 All rights reserved.

20 Quarterly Net Sales 19 (Millions of Yen) 10,000 8,000 7,733 8,290 7,843 8,309 8,102 6,000 4,000 2,000 0 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 FY2010 FY2011 FY2012 FY2013 FY2014 Copyright(C) 2014 All rights reserved.

21 Quarterly Operating Income (Margin) 20 (Operating Income: Millions of Yen) (Operating Margin: %) 2, , ,500 1, , Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 FY2010 FY2011 FY2012 FY2013 FY Copyright(C) 2014 All rights reserved.

22 Review of FY Client Orientation (Millions of Yen/%) Net Sales Panasonic Group General Market FY2014 (Apr.-June) (YOY) 6,370 (92.8) 1,731 (119.6) Comments Revision of the service price Mainly due to a reaction to the last-minute demand prior to the tax hike, the launch of a new project of system development was delayed. net sales does not include it. Net sales of system services increased due to increased sales of cloud services. Net sales increased mainly due to a large project of thin client and an infrastructure development project. Copyright(C) 2014 All rights reserved.

23 Review of FY2014 Product Orientation FY2014 Net Sales (Apr.-June) (YOY) Comments 22 (Millions of Yen/%) System Services 5,716 (101.6) Revision of the service price for existing clients An increase of cloud services for the general market System Solutions 2,386 (88.9) Mainly due to a reaction to the last-minute demand prior to the tax hike, the launch of a new project of system development was delayed. net sales does not include it. System development projects for the general market are steady. Copyright(C) 2014 All rights reserved.

24 FY2014 Results in Key Business Areas 1 ICT infrastructure service FY2014 (Apr.-June) 731 Goals FY2014 3,600 (Millions of Yen/%) Progress System integration of core functions 157 1, Collaboration with the Panasonic Group Creation of something new Total 1,077 6, Copyright(C) 2014 All rights reserved.

25 Business Strategies for FY2014

26 Changes in Circumstances Surrounding the Company Changes in organizations in IT department of the Panasonic Group on July 1 25 The former Panasonic ITS Co., Ltd. The corporate name was changed to Fujitsu IT Management Partner Co., Ltd. (About 500 employees) Started the information system-related business for the Panasonic Group About 400 employees in Panasonic ITS Co., Ltd. were transferred to IBM Services Company Ltd. (From the press release by Panasonic Corp.) Copyright(C) 2014 All rights reserved.

27 Efforts in Q2 26 Efforts for achieving a performance goal Increase sales Early launch of projects for the Panasonic Group after receiving orders Raise operation rates of developers in the company Enhance operating activities to acquire new projects Reduce 150 million Cost rationalization of operation and development Reduce communication costs such as network and cell phone Achieve maturity level 4 in CMMI to further improve quality Copyright(C) 2014 All rights reserved.

28 Efforts in Q2 Order increase of the Panasonic Group (Eco Solutions Company) 27 Distribution Electric facility materials House building Proposal to renew the ordering system Acquisition of large system integration projects for agents and more orders Increase of proposals of system integration for living sales companies Copyright(C) 2014 All rights reserved.

29 Efforts in Q2 Gradually expanding the range of systems for P&E Company 28 Houses with a solar power system Purchase of electricity Purchase price Application service Panasonic Epco Energy Service (P&E Company) Sales of electricity Sales price Sale destination (New electricity companies, heavy consumers, etc.) May Website to apply for purchase of electricity was opened to limited people Aug. In-company core system including payments for purchase and adding up sales will be introduced Copyright(C) 2014 All rights reserved.

30 Efforts in Q2 Increase in sales of solutions with network cameras 29 Video surveillance An uniform management of network cameras and record Sales target 3.5 times (YOY) Lesson delivery A formulation of record and delivery of lessons as a system Order target New 16 schools Delivery Register internet Convert Record Copyright(C) 2014 All rights reserved.

31 Efforts in Q2 30 Further increase of solutions for theme park Sales management Proposal activity for stadium Strengthening activities from receiving orders to the launch Short term Launch of the systems for events Expanding the range of the solutions Copyright(C) 2014 All rights reserved.

32 Code No: 4283 This document includes the current plans and financial forecasts of the Company. These future plans and forecast figures have been made based on information currently available. Actual results may differ from these forecasts due to various factors and conditions, therefore this document does not assure or guarantee the realization of the plans and forecasts.