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ACCESS CO., LTD. © 2019 ACCESS CO., LTD. All rights reserved. ACCESS Company Presentation ACCESS Co., LTD. May 2019
ACCESS CO., LTD.© 2019 ACCESS CO., LTD. All rights reserved.
ACCESS Company Presentation
ACCESS Co., LTD.
May 2019
P. 2P. 2© 2019 ACCESS CO., LTD. All rights reserved.
IPO to TSE Mothers Palm SourceAcquisition
IP InfusionAcquisition
Launched Digital Publishing Solution
Launched Network OS for White Box
Northforge Acquisition
NetRange Acquisition
History
2001 2005 2006 2011 2015 2018 2019
Browser for Cellular phone
(HTML vs WAP battle)
Smartphone Platform battle
(ACCESS Linux Platform)
Business pivot &restructuring
Investment focus in
IoT, Whitebox
New businessDevelopment
8,1409,700
15,000
(1,071)534 550
3,000
'15.1 '16.1 '17.1 '18.1 '19.1 '20.1 '21.1 '22.1
Net Sales Operating Profit
Latest Fiscal YearResults
(JPY Million)
P. 3P. 3© 2019 ACCESS CO., LTD. All rights reserved.
Founded ：1984
Capital ：29,386M JPY（as of Jan. 2019）
Revenue ： 8,140M JPY（ended Jan. 2019）
(plan) 9,700M JPY（ending Jan. 2020）
Employees ：Consolidated 657
HQ 235（as of Jan. 2019）
ACCESS
ACCESS Europe
ACCESS (Beijing)
ACCESS Seoul
ACCESS Works
ACCESS AP TAIWAN
IP Infusion
IP InfusionIndia
Northforge
NorthforgeIsrael
NorthforgeUSA
Domestic Business（Revenue: 5,025M JPY）
Overseas Business （Revenue: 1,064M JPY）
Network Software Business（Revenue: 2,050M JPY）
Embedded Browser, IoT Solutions,and Digital Publishing Platform
Embedded Browser and Multiscreen Media Solution
Network OS for switch/router and Network domain expert professional services
NetRange
Company Overview
P. 4P. 4© 2019 ACCESS CO., LTD. All rights reserved.
DomesticBusiness
OverseasBusiness
NetworkSoftwareBusiness
IoT Solutioninsuranceservice
officefactory
Embedded Browser
Network OS for White Box
Network Platform Standards-based Layer 2, Layer 3, and MPLS/MPLS/TP network platform300+ customers worldwide
Industry’s first full-featured Carrier-grade Network OS that enables “disaggregation”
Embedded Browser
Smart Media Platform Content Service and Software Solution for Connected Car Infotainment and Smart TV
Digital PublishingPlatform
Business Overview
Developing E2E/one-stop IoT services for enterprises utilizing beacon solution (location), IoT gateway & cloud platform
Browser/MMI for electronic devices, including TV, STB, Games, IVI, etc. Deployed over 1.5 billion devices
TV as a browser application, browser and/or MMI/Media service engine for Automotives
Integrated E2E Solution. Initial focus on White-label full support services for comics and magazines
P. 5P. 5© 2019 ACCESS CO., LTD. All rights reserved.
FY2018 Financial Highlights（JPY Million）
Both consolidated sales and profits increased, and overall results were generally in line with expectations
FY2017 FY2018Increase
(Decrease)FY2018 Forecast(as of Mar 15, 2018)
Variance
Net Sales 7,930 8,140 +209 +2.6% 8,200 ▲59
Gross Margin 3,271 3,693 +421 +12.9% ー ー
Operating Profit 413 534 +120 +29.2% 500 +34
Non-operating Profit & Loss (97) (25) +71 - ー ー
Ordinary Profit 316 508 +192 +60.9% 500 +8
ExtraordinaryProfit & Loss (22) 18 +40 - ー ー
Income Taxes 45 148 +102 - ー ー
Net Income 246 377 +130 +52.8% 370 +7
Dividend per Share (JPY) 0 3.0 3.0 - ー ー
The consolidated dividend payout ratio is 30.8%.
P. 6P. 6© 2019 ACCESS CO., LTD. All rights reserved.
1,8932,071 2,050
957921 1,083
2,7283,346 3,508
6,627
7,930 8,140
9,700
15,000
599 413 534 550
3,000
'17.1月期
実績
'18.1月期
実績
'19.1月期
実績
'20.1月期
業績予想
'21.1月期
計画
'22.1月期
計画
Mid-term Strategy（JPY Million）
IoT
DigitalPublishing
Network
Others
Operating Profit
FY2018Results
FY2017Results
FY2016Results
FY2019Forecasts
FY2020Plan
FY2021Plan
・ Accelerate product/business investments in Market-test-proven “Products” for mid-term hokey-stick growth
- Focusing on White Box, IoT services and Multiscreen Media solutions
・ Boosted Operating profit growth from FY2021
- “Cash cow” cross-subsidizes new “Recurring Business” till 2020
P. 7P. 7© 2019 ACCESS CO., LTD. All rights reserved.
※Total market size including software and hardware
IoT biz: Multiscreen Media Solution for Automotive
In-vehicle Infotainment Market（USD Billion）Our Approach
※System Diagram
Business Expansion to In-Vehicle Infotainment, leveraging existing Browser for Car-navigation business
- Connected-car and in-vehicle infotainment service evolve hand-in-hand
- Build recurring business model by providing content & service delivery platform
・ Engaged in multiple PoC projects with major
Auto manufacturers and Tier1 suppliers
・ Forming a partnership with content providers
・ Enhancing software security
（collaboration with Irdeto, etc）
・ Certification by a German public institution
as a media platform for cars(Medienanstalt Hamburg/Schleswig-Holstein)
P. 8P. 8© 2019 ACCESS CO., LTD. All rights reserved.
White Box, Network Disaggregation
“ZebOS”
License biz
“OcNOS”
Royalty Biz
SoftwareVendor Hardware
Vendor
Telecom CarrierService Operator
Telecom CarrierService Operator
Software Vendor
ODM Hardware Vendor
Opportunities for IP Infusion・ Conventional type: inflexible & expensive・ Improved flexibility & Reduced cost
Collaboration
Industry Giant
competitive
・ Software defines the value and/or differentiation
Chipset Vendor
1) Conventional business Model
Licensing Software to box vendors
2) White Box business Model
Disaggregated Sourcing based on standardized/commoditized HW
P. 9P. 9© 2019 ACCESS CO., LTD. All rights reserved.
White Box Solution
$0.0
$50.0
$100.0
$150.0
$200.0
$250.0
ODM Direct Switch Vendor Revenue (US$M)
※Total market size including conventional type, also hardware & software※Source: IDC
Network Switch Market（USD Billion） White Box Market（USD Million）
※White Box Switch market out of all network switch market※Source: IDC
Market growth in White Box to be driven by Telecom Carriers- White box Switch for data centers ramping up
- Transition to 5G is a huge issue for Telecom carriers (CAPEX / OPEX)
- “White Box Switch for Carriers” is yet to be proven but very promising business
=> Spearheaded by LINX
IP Infusion is well positioned to be a leader in telecom carrier White Box software market
- Most popular, proven commercially-deployed track record in “Inter-connectivity”. Participating in many PoCs today
- Not the 1st entrants in “Data Centers”, but will carve out the share with differentiator in high performance/quality
P. 10P. 10© 2019 ACCESS CO., LTD. All rights reserved.
Appendix
P. 11P. 11© 2019 ACCESS CO., LTD. All rights reserved.
413 534 500
+209
+212 ▲301
7,930 8,140 8,200 +393 ▲162 ▲21
Sales increase in Domestic
Business
Sales decrease in Overseas
Business
Sales decrease in Network Software
Business
Sales increase
Cost reduction
SGA expensesincrease*
Net Sales
Operating Profit
Year-on-year Factors of Change（JPY Million）
FY2018Result
FY2018Forecast
FY2017Result
FY2018Result
FY2018Forecast
FY2017Result
*M&A-related expenses and
amortization of acquisition-
related intangibles & goodwill
P. 12P. 12© 2019 ACCESS CO., LTD. All rights reserved.
6,837 6,627
7,930 8,140
'16.1月期 '17.1月期 '18.1月期 '19.1月期
Dividend
・ Year-end dividends of ¥3.0 per share.
Company established a stable business bases and accumulated a certain level of retained earnings.
・ The consolidated dividend payout ratio is 30.8%.
・ Our policy is continuously profit distribution to shareholders while securing internal reserves necessary for our business.
▲114
599413
534
▲1,318
314 246 377
'16.1月期 '17.1月期 '18.1月期 '19.1月期
Net Sales（JPY Million） Operating Profit & Net Income（JPY Million）
Left ： Operating ProfitRight： Net Income
FY2018FY2017FY2016FY2015 FY2015 FY2016 FY2017 FY2018
P. 13P. 13© 2019 ACCESS CO., LTD. All rights reserved.
FY2019 Consolidated Forecast（JPY Million, %）
FY2018Result
FY2019Forecast
Increase(Decrease)
Ratio
Net Sales 8,140 9,700 +1,559 +19.2%
Operating Profit 534 550 +15 +2.9%
Ordinary Profit 508 520 +11 +2.2%
Net Income 377 380 +2 +0.7%
Net Income perShare(JPY)
9.75 9.82 +0.07 +0.7%
Dividend perShare(JPY)
3.00 3.00 ー ー
Strong increase in sales: IoT-related NRE and Northforge's full-year contribution
Slight increase in profits: amortization of software, intangibles and goodwill
