Financial Results Presentation for the First Half of the Year Ending … · 2018-12-13 ·...
Transcript of Financial Results Presentation for the First Half of the Year Ending … · 2018-12-13 ·...
2018年3月期 決算説明会資料 Material for the Financial Results
Presentation for the First Half of
the Fiscal 2019
November 7, 2018
Financial Results Presentation for
the First Half of the Year Ending
March 31, 2019
2018年3月期 決算説明会資料 Material for the Financial Results
Presentation for the First Half of
the Fiscal 2019
1
Financial Summary for
the First Half of the Year
Ending March 31, 2019
2018年3月期 決算説明会資料 Material for the Financial Results
Presentation for the First Half of
the Fiscal 2019
2
Million yen
First half of the
year ending
March 31, 2019
YoY
(251)
+128
(8.5)
(8.2)
+8.5
Change Rate of change
Net sales
Operating income
Ordinary income
Profit attributable
to owners of
parent
First half of the
year ended
March 31, 2018
(5.9) 110,780
2,501
1,633
2,808
Financial Summary for the First Half of the Year Ending March 31, 2019: (1)
Consolidated Financial Results
117,750
2,732
1,504
3,060
(6,970)
(231)
2018年3月期 決算説明会資料 Material for the Financial Results
Presentation for the First Half of
the Fiscal 2019
3
Million yen
First half of the year ended
March 31, 2018
First half of the year ending
March 31, 2019 Change
Net sales Operating
income Net sales
Operating
income Net sales
Operating
income
Data & Document 81,274 3,997 75,204 3,839 (6,070) (157)
IT Innovation 12,865 1,122 14,121 1,443 +1,256 +320
Business
Products 15,946 479 13,700 (122) (2,246) (601)
Global 7,663 17 7,753 112 +89 +94
Elimination of inter-
company transaction (2,885) (2,773) 112
Consolidated total 117,750 2,732 110,780 2,501 (6,970) (231)
Business Performance by Business Segment
(7.5)
+9.8
(14.1)
+1.2
(3.9)
+28.6
–
+534.8
Financial Summary for the First Half of the Year Ending March 31, 2019: (2)
(8.5) (5.9)
2018年3月期 決算説明会資料 Material for the Financial Results
Presentation for the First Half of
the Fiscal 2019
4
In DPS, sales increased and operating income rose considerably despite a reduced sales volume and price falls, which were offset by a steady increase in contracts for transactional communication and direct mail mainly from financial institutions.
In digital solutions, sales increased and operating income rose considerably due to the increased sales of digital communication services of a variety of business documents and the regulations publication/management system for financial institutions.
In BPO, both sales and operating income declined significantly from the previous year given the rapid reduction in temporary benefit-related orders and large projects from some clients.
In BF, sales declined slightly and operating income decreased, primarily because of declining unit prices and decreasing demand.
Data & Document Business
Both sales and operating income rose considerably, due in part to the expansion in the range of orders for the system operation management service, the sales expansion of card-related equipment and RFID tags, and expansion in the payment service.
IT Innovation Business
Sales declined and operating income plunged significantly, primarily because of reduced sales from high-functionality labels for product management and a reactionary drop in demand for custom-order equipment
from the logistics industry.
Operating income rose significantly, despite lower revenue from the sale of PCs, servers, and related products in Hong Kong, which was offset by strong demand for DPS and BPO and the growth in orders
received for high value-added cards in Hong Kong and Thailand.
Business Products Business
Global Business
Sales by Business Segment
Financial Summary for the First Half of the Year Ending March 31, 2019: (3)
2018年3月期 決算説明会資料 Material for the Financial Results
Presentation for the First Half of
the Fiscal 2019
5
2,732
1,162
2,232 2,501
820
750 1,070
269
Growth and cost reduction of DPS, digital solutions, and the IT Innovation Business
and other factors contributed to operating income, but it decreased due to reductions
in large projects from some clients, a decline in sales from custom-order equipment,
and a sharp rise in distribution costs.
First half of the year
ended March 31, 2018
First half of the year
ending March 31, 2019
Cost
decreases
Change
in sales
Cost
increases
Reduction of
SG&A and
others
Financial Summary for the First Half of the Year Ending March 31, 2019: (4)
Analysis of YoY Change in Operating Income
Down ¥231 million
Labor costs,
distribution costs,
and others
Including
decrease of IT
costs
Material for the Financial Results
Presentation for the First Half of
the Fiscal 2019
6
Initiatives in Fields of Focus
Material for the Financial Results
Presentation for the First Half of
the Fiscal 2019
7
Profitability
Gro
wth
po
ten
tial
Payment services
1
2
4 3
HighLow
Low
High
BF
BPO
Global
Digital solutions
System operationmanagement
DPS
Supply productsEquipment
IoT/cardsDevelopingbusinesses innew domains
Improving profitability byincreasing our proprietaryproducts
Business expansion through growthinvestment aimed at improvingcompetitiveness, developinginfrastructure, etc.
Maintaining profitability byincreasing market sharesand reducing costs
Direction of Each Business Domain
■Payment services
FY2021 targets
Net sales: ¥5.0 billion
Operating income: ¥1.5 billion
■IoT/cards
FY2021 target
Increase sales to 200% or
more compared to the
FY2018 level
■Digital solutions
FY2021 target
Increase sales to 200% or
more compared to the
FY2018 level
■Global
FY2021 target
Increase sales to 150%
or more compared to the
FY2018 level
Material for the Financial Results
Presentation for the First Half of
the Fiscal 2019
8
+17.7%
181,467
161,849 157,500 158,500 163,000
26,649
26,975 29,000
33,500
39,000
31,705
31,922 31,000
30,000
32,000
17,911
16,569 15,500
18,000
21,000
100,000
150,000
200,000
250,000
Result forthe year ended…
Result for the year endedMarch 31, 2018
Forecast for the year endingMarch 31, 2019
Forecast for the year endingMarch 31, 2020
Forecast for the year endingMarch 31, 2021
Data & Document Business IT Innovation Business
Business Products Business Global Business19/3-21/3
Compound
Average
Growth Rate
+1.6%
+17.2%
+1.7%
Business Performance (Net Sales)
Million yen
233,000 240,000
255,000
237,317
257,734
Result for the year ended March 31, 2017
Result for the year ended March 31, 2018
Forecast for the year ending March 31, 2019
Forecast for the year ending March 31, 2020
Forecast for the year ending March 31, 2021
Material for the Financial Results
Presentation for the First Half of
the Fiscal 2019
9
9,474
7,114
6,500
8,000
10,000
3.7%
3.0% 2.8%
3.3%
3.9%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
0
2,000
4,000
6,000
8,000
10,000
2017年3月期実績 2018年3月期実績 2019年3月期計画 2020年3月期計画 2021年3月期計画
Operating income Operating income margin
Business Performance (Operating Income) Million yen
Result for the year ended March 31, 2017
Result for the year ended March 31, 2018
Forecast for the year ending March 31, 2019
Forecast for the year ending March 31, 2020
Forecast for the year ending March 31, 2021
Material for the Financial Results
Presentation for the First Half of
the Fiscal 2019
10
Market Environment
Domestic Market
Unclear economic outlook attributed to political and economic uncertainty
Decline in the labor force attributed to the declining birthrate and aging population
Measures to improve productivity strengthened by companies through workstyle reforms,
with progress made in automatization and labor-saving by utilizing AI and RPA
Evolution and use/application of digital technologies accelerated toward 2020
Momentum for structural reforms increased in the financial industry and various other
industries
Increasing threat of cyber attacks due to the spread of digitization, with increasing
importance of information security
The time has come to replace social infrastructure.
ASEAN countries are seeing the expansion of the middle-income class in addition to
population growth.
High economic growth rate supported by high interest rates
Commencement of full-scale development of social infrastructure
Overseas Market
Material for the Financial Results
Presentation for the First Half of
the Fiscal 2019
11
Initiatives for Increasing Composite Projects: (1)
Promotion of Data & Document Business: (1)
Target for the year ending March
2021 (compared to the forecast
for the year ending March 2019):
¥10.0 billion increase in sales
from DPS, BPO, and DS
Digital Products: “Select and Focus” through rebranding
Systematizing and generalizing lineups in the fields of input, output, and storage, where market needs are
high
Capturing demand for DPS and BPO as the first step for the creation of large composite projects
Output Storage
経費精算 給与計算
Solutions related to
personnel/general affairs
Fast
Input Operational solutions
• Certificates for deduction
• Digitalization of payment
slips and others
Creating composite projects with a focus on DPS
Increase in DPS + digital solution projects
・Differentiating ourselves with optimal solutions combining existing and new products
Introduction of new methods utilizing IT
・Developing new DM services utilizing marketing automation (MA)
・Strengthening non-face-to-face sales activities utilizing the Web
■ Lineup of generalized services in digital solutions
• Attendance management
• Salary statement and
others
Material for the Financial Results
Presentation for the First Half of
the Fiscal 2019
12
Initiatives for Increasing Composite Projects: (2)
Strengthening the structure for receiving orders for BPO
Conforming to PCI DSS* Conformity to the global security standard, which will be a major differentiator
Expanding sales channels to a wide variety of industries, such as energy and mail order, by taking advantage
of our solid customer base
Opening new centers in regional cities
(Aomori Operation Center and BPO Satellite Himeji)
Establishing structure for receiving orders for BPO at our manufacturing locations across Japan
Strengthening the BCP system through cooperation with existing bases
Promotion of Data & Document Business: (2)
Fact-finding
surveys and
analyses Acceptance of
the form
Scanning of
the form
Screening
Data entry
Credit Check
Response to orders
and inquiries made via
telephone (Contact center)
Differentiators created by conformity to PCI DSS
We will handle voice communications with end users as well. We will also be ready to provide contract-based services of assuming contact center functions, including the input of sensitive information.
Conforming to PCI DSS:
Achieving safe, secure operations in an environment with a high level of security
In addition to our solid customer base, the environment with a high level of information security will be our differentiator. Inquiries from a wide variety of industries, such as mail-order and energy, will increase.
1 2
* PCI DSS: A global standard of the credit card industry that was formulated
to ensure that information on credit card holders is handled safety
Establishing
operations
Establishing
environment
Material for the Financial Results
Presentation for the First Half of
the Fiscal 2019
13
Entering the Data Distribution Business
Building a data distribution platform
Taking advantage of our expertise in information security that was cultivated through DPS and other businesses,
we will build a data distribution platform with a focus on personal data store (PDS), an infrastructure for data
storage and management.
Moving forward, we will promote the use of the platform in the field of healthcare, and connect with blockchain,
which achieves secure, highly convenient data distribution, and other measures.
Conceptual rendering of connection linkage between
PDS and blockchain
Promotion of Data & Document Business: (3)
生活者
Applications for users Managing and storing personal
data, sensitive information,
etc.
PDS
Managing procedure
history, information,
etc.
Permission for registration and linkage
of necessary data
Applications, contracts, changes to notifications,
etc.
Achieving a Smart Contract
Consumers
Blockchain
TOPPAN FORMS
Material for the Financial Results
Presentation for the First Half of
the Fiscal 2019
14
Expansion of IT Innovation Business: (1)
Visualizing and Optimizing Work Sites by Introducing IoT
Increase in the adoption of RFID solutions in the fields of
manufacturing, healthcare, and logistics
Adoption of solutions from TOPPAN FORMS, which combine reader/writer and system based on high-quality
RFID, in a wide variety of settings including process management and parts logistics management
Introduction example: A system that collects manufacturing performance automatically by using RFID
Target for the year ending March
2021 (compared to the forecast for
the year ending March 2019):
IoT/Cards: Increase of sales by
¥5.0 billion
Real-time check of the progress of each process and immediate response to abnormal circumstances
Contributing to work efficiency improvement with accurate data collection
Head office
Abolishment of hand-written daily production report
Visualization of work sites
Process A Process B Process C
PLC
Manufacturing result Manufacturing result Manufacturing result
Confirmation of manufacturing performance
Output of daily production report
Abnormality monitoring Operational availability
monitoring Defect monitoring Traceability
Remote monitoring
Manufacturing performance is registered simply
by passing the RFID Kanban over the reader
every time manufacturing is completed.
In the event of an abnormality, abnormality alert
is given to the supervisor simply by placing a
stop card.
Linkage with the equipment permits the
automatic registration of performance of
manufacturing with the equipment.
Material for the Financial Results
Presentation for the First Half of
the Fiscal 2019
15
Expansion of IT Innovation Business: (2)
Expanding Business Domains with IoT
Using LPWA to expand our sales channel to the infrastructure industry
Additional investment in mtes Neural Networks, to make the company our equity method affiliate
Creating synergy in the field of IoT centered on Structural Health Monitoring
SAMPLE Vibrations and tilts are detected
by the sensors mounted on the
bridge piers.
Obtained data are sent to the parent device via LPWA.
Data aggregated in the parent
device are sent to the
cloud via 3G or LTE.
Managing and analyzing
data stored in the cloud
Cloud
How Structural Health Monitoring is used
LoRa PrivateHGW
Contributing to infrastructure maintenance through measurement and constant remote monitoring of changes to structures,
such as bridge piers, tunnels, and buildings
Material for the Financial Results
Presentation for the First Half of
the Fiscal 2019
16
Expansion of IT Innovation Business: (3)
Expansion of the Card Business Attributed to the Growth of Security-Related Demand
Expanding sales of laser-printed ID cards
Expanding sales of laser-printed ID cards, which are effective for preventing falsification and counterfeiting
because the characters printed on the card surface cannot be scraped off
Capturing security-related demand from international events and similar events, in addition to demand for laser-
printed ID cards such as health insurance cards, employee ID cards, and admission cards
It has been informally decided that multiple
health insurance unions will place orders for
the issuance of health insurance cards.
We will introduce equipment for issuing
laser-printed cards.
The card surface becomes worn
or is otherwise damaged, which
may make it difficult to identify the
characters.
The surface is resistant to wear and
other damage because the colors
are part of the card.
ID function is retained.
Benefits of laser printing
[Conventional printing method] [Laser printing]
We will begin to accept orders for the bulk
issuance of cards in the second half.
Material for the Financial Results
Presentation for the First Half of
the Fiscal 2019
17
Expansion of IT Innovation Business: (4)
Expansion of use in such fields as amusement, taxis, and
vending machines
The number of terminals connected to the payment platform, which was around 20,000 on March 31, 2018,
increased rapidly to around 43,000 as of September 30, 2018.
Many development projects will be generated due to the rapid increase. We will try to handle projects more
quickly by securing resources.
Rapid Increase in the Number of Terminals Connected to Thincacloud
Readers/writers from TOPPAN FORMS and Thincacloud were
adopted for the new tablet with payment function, which is
mounted on the back of the front seat of the taxi.
Introduction example: JapanTaxi Co., Ltd.
Target for the year ending March
2021 (compared to the forecast for
the year ending March 2019):
Payment services: Increase of sales
by ¥3.0 billion
17/3
(実績)
17/9
(実績)
18/3
(実績)
18/9
(実績)
19/3
(期初想定)
19/3
(見込み)
5,000
10,000
20,000
43,000
80,000
The target set at the
beginning of the fiscal
year is expected to be
achieved.
Number of terminals connected to
Thincacloud
FY2021 targets (consolidated)
Net sales: ¥5.0 billion
Operating income: ¥1.5 billion
Mar. 2017
(Result)
Sept. 2017
(Result)
Mar. 2018
(Result)
Sept. 2018
(Result)
Mar. 2019
(Initial forecast)
Mar. 2019
(Forecast)
Material for the Financial Results
Presentation for the First Half of
the Fiscal 2019
18
Businesses That Contribute to Solving Social Issues
Participating in the Smart Card Common Usage Demonstration Project in Vietnam
A project adopted as a Project for Nurturing New Industries in ASEAN and Japan, which was
publicly solicited by JETRO
Conducting technology verifications for infrastructure development at commercial facilities and
similar facilities
Aiming to actualize the potential requirements of cashless payment in Vietnam
Contributing to overcoming the labor shortage with automation systems
Mail sorting system (eliminating delivery errors and solving the labor shortage at mail centers)
Reception counter support system
(Saving labor for branch operations of financial institutions and other organizations in conjunction with PASiD
scan)
Differentiator: Total support for processes from introduction to maintenance, which is provided by specialized
engineers via a nationwide sales network
[Business Products Business] Developing New Markets: Information Equipment
[Global Business] ASEAN: Initiatives for Infrastructure Development
Launching products that cater to needs of the times
Material for the Financial Results
Presentation for the First Half of
the Fiscal 2019
19
Creation and Promotion of New Businesses: (1)
Early Commercialization of New Business Projects
Foray into the healthcare field
Making our foray into the healthcare field by forming a capital tie-up with Hirotsu Bio Science Inc.
Providing comprehensive support for achieving the practical application of the cancer screening test
service that was developed by the company
Features of the test service • Affordable
• Exhaustive cancer screening of the
entire body
• Simple and easy
• Permits early detection
• Painless
Analysis Laboratory
Collaborations with medical institutions
Awareness campaign
Consumables for inspection
Inspection
Sales promotion to attract
corporate customers
Area worked on
by TOPPAN FORMS
Taking advantage of our
expertise in information
security cultivated through
DPS and BPO
Material for the Financial Results
Presentation for the First Half of
the Fiscal 2019
20
Creation and Promotion of New Businesses: (2)
Full-Scale Operation of RPA Business: Contributing to Workstyle Reform
Improving clients’ productivity with RPA total support service
Providing support for the processes from process selection through
demonstration experiment to introduction and operation.
Ready to select and provide the optimal RPA tool for the use environment, including the subject process and size
of the business establishment
Opening the RPA Lab, a facility for RPA training/tests, in early December
Planning to start providing full-scale training and support services in January 2019
Planning
introduction
Selection of tools
Support for trial
RPA service menu
Capable of
providing three RPA
tools with different
features
Support for
full-scale
introduction
Technical
support
Training and
instruction services
Support for
demonstration
experiment
1 2 3 4 5
Target for the year ending March
2021 (compared to the forecast for
the year ending March 2019):
RPA service: Increase of sales by
¥1.5 billion
* WinActor is a registered trademark of NTT Advanced Technology Corporation.
Patrol Robocon
Material for the Financial Results
Presentation for the First Half of
the Fiscal 2019
21
Structural Reform: Profitability Improvement
Implementing Structural Reform Aimed at Continuous Growth
Profitability improvement
Speeding up the manufacturing process for DPS by using full-color digital printers
Subsequently expanding the subject orders at production locations nationwide
At Takiyama Factory, which is our core factory, a faster process has been achieved for more than 70%
of subject orders.
Structural Reform
Optimizing businesses and organizations: Restructuring the BPO business/Optimizing the sales and
manufacturing systems
Reviewing existing businesses: Disposing of unprofitable businesses in Japan and other countries
Reform of personnel system and operational reforms: Promoting optimization of personnel distribution
Promoting personnel shift to growth fields
Improving operational efficiency by introducing RPA internally
Initiatives for productivity improvement and cost reduction in the
manufacturing division
Reviewing businesses and organizations and promoting systemic reforms
Expected effect of structural reform:
¥3.0 billion
Material for the Financial Results
Presentation for the First Half of
the Fiscal 2019
22
Business Investments
Making Business Investments Aimed at Continuous Growth
Collaborations and tie-ups through the creation of synergy in growth domains
Making investments mainly in start-ups, aiming to create synergy of their businesses with ours
Measure taken in the first half under review: Additional investment in mtes Neural Networks to make
the company became our equity-method affiliate
Investments for expansion of the Global Business
Planning collaborations with strong local companies in Indonesia and other ASEAN countries with the
aim of strengthening DPS and BPO
Collaborations and tie-ups in new business domains
Investing in start-ups with unique technologies, aiming to promote the Frontier Business for creating
businesses that will be our mainstay businesses for the next generation.
Measure taken in the first half under review: Formation of a capital tie-up with Hirotsu Bio Science Inc.
Material for the Financial Results
Presentation for the First Half of
the Fiscal 2019
23
Reference
Material for the Financial Results
Presentation for the First Half of
the Fiscal 2019
24
Change
(2,690)
+683
+1.2p
Total assets
Net assets
Equity ratio
September 31, 2018
Total Assets and Net Assets Million yen
Change
+376
(3,066)
+4
Net cash provided by operating activities
Net cash used in investing activities
Net cash used in financing activities
Cash equivalents +2,267
Financial Status and Cash Flows
Status of Cash Flows Million yen
219,777
172,580
77.3%
6,703
(5,426)
(1,429)
63,622
March 31, 2018
First half of the year
ended March 31,
2018
222,467
171,897
76.1%
6,327
(2,360)
(1,434)
61,354
First half of the year
ending March 31,
2019
Material for the Financial Results
Presentation for the First Half of
the Fiscal 2019
25
Capital Expenditure and Depreciation
Actual capital expenditure
4,831 million yen (Planned annual amount: 7,300 million yen)
Actual depreciation
3,710 million yen (Planned annual amount: 8,700 million yen)
Major capital expenditures in the first half under review
Expenditures related to the construction of Fukuroi Factory ¥2.5 billion
Expenditures related to production equipment such as variable printers ¥0.8 billion
Capital expenditures at overseas locations ¥0.4 b¥illion
Actual Capital Expenditures, Depreciation and
Shareholder Returns
Shareholder Returns
Measure for shareholder returns
Payment of interim dividend of ¥12.5 (to be ¥25.0 in total for the full year)
Material for the Financial Results
Presentation for the First Half of
the Fiscal 2019
26
Takaaki Hirotsu, President & CEO
Representative
• Biological diagnostics research:
Research, development, manufacturing,
and sale of cancer diagnostic testing
equipment utilizing C. elegans and C.
elegans olfactory sensors
Business overview
August 2016
Established
Corporate Profile
About Hirotsu Bio Science: (1)
1,642,077,000 yen (including capital reserve; as of November 2018)
Capital
Hirotsu Bio Science Inc.
Company name
To all
黄色マーカー箇所は同社の「会社概要」より引用しました。
Yellow parts are from the following.
日
https://hbio.jp/company/
英
https://hbio.jp/en/company/
Material for the Financial Results
Presentation for the First Half of
the Fiscal 2019
Note on Forward-Looking Statements
Please note that performance forecast and future outlook contained
in this presentation material are forward-looking statements made
by the Company based on currently available information, and its
actual business performance may differ from such statements
depending on the future business environment.