Consolidated Results for the Fiscal Year Ended Mar. 2015, Midterm Managerial Plan, and Consolidated Earnings Forecast for the Fiscal Year Ending Mar. 2016 May 15, 2015 SAXA Holdings, Inc. <Cautionary matter of description regarding future prospect> Please bear in mind that the forecast of our business performance and future forecast described in this material are forecasts judged by our company on the basis of the business environment at this point in time. The actual business performance can de different depending on the development of the business environment hereafter.
Transcript
Consolidated Results for the Fiscal Year Ended Mar. 2015, Midterm Managerial Plan, and Consolidated Earnings Forecast for the
Fiscal Year Ending Mar. 2016
May 15, 2015
SAXA Holdings, Inc.
<Cautionary matter of description regarding future prospect>
Please bear in mind that the forecast of our business performance and future forecast described in thismaterial are forecasts judged by our company on the basis of the business environment at this point intime. The actual business performance can de different depending on the development of the businessenvironment hereafter.
Today’s Topics
■ Fiscal Year Ended March 31, 2015
Outline of the Consolidated Business Performance
■ Midterm Managerial Plan
(Fiscal Year Ending Mar. 2016 to Fiscal Year Ending Mar. 2018)
■ Fiscal Year Ending March 31, 2016
Forecast of Consolidated Business Performance
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The amounts and ratios written in this reference material are shown by rounding off fractions less than units of display.
■ Fiscal Year Ended March 31, 2015
Outline of the Consolidated Business Performance
1. Major Efforts for “Expanding Our Business” and “Strengthening Our Management Base”
2. Business Performance
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Business expansion 1/2
1. Office market【Outline of efforts】
Provision of office space that is anxiety-free, safe, comfortable, and convenient
↓
Enrichment of the “Office AGENT” series, the office operation agency system that can swiftly solve “troubles” in customers’ networks
Enrichment of the “Office AGENT” series
① Upgrade of the key telephone system “PLATIA”② Release of the unified threat management appliance UTM “SS3000”③ Release of “SP1000,” which combined IP-PBX and UTM④ Release of the cloud management-type VPN router “ZC1000”⑤ Full-scale operation of “Network Karte Service”(Cloud device
management service) which visualizes the information on the operation and assets of PCs, etc. by utilizing these devices and the file server “SB2000”
1. Major Efforts for “Expanding Our Business” and “Strengthening Our Management Base”Overview of the Consolidated Results for the Fiscal Year Ended Mar. 2015
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IP network solutionSS3000ZC1000SB2000
Cloud service & IoT
Network Karte Service s(cloud device management
service)
Business phone solution
Upgrade of PLATIA function
IP-VOICEsolutionSP1000
UTMSS3000
VPN routerZC1000
ServerSB2000
Business phonePLATIA
Cloud
Office Operation Agency SystemOverview of the Consolidated Results for the Fiscal Year Ended Mar. 2015
IP-PBXSP1000
Business expansion 2/2
2. System integration business
・ Provision of systems and services for specific customers and special purposes
・One-stop services, including specification design and maintenance
【Outline of the efforts】To swiftly offer systems, services, etc. for meeting diverse
needs, with cloud services, smartphones, etc. by utilizing the products, services, and development resources owned by the company
① Provision of VoIP solutions(Network monitoring, visualization, VoIP security diagnosis, etc.)
② Provision of Building Energy Management System(Visualization of the electric power and the environment, the website system of municipal services for citizens)
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The details of the system will be explained later in the Midterm Managerial Plan.
1-2. Major Efforts for “Expanding Our Business” and “Strengthening Our Management Base”Overview of the Consolidated Results for the Fiscal Year Ended Mar. 2015
Reinforcement of the management base
1. Reduction in overall cost
・Cost reduction through the decrease in material expenses and the streamlining of production processes (revision to production maps inside and outside Japan, etc.)
・Streamlining of development through the utilization of development resources inside and outside the corporate group
2. Optimization of the systems of the corporate group
・Discussions for the optimization of business processes and the sophistication of the functions of the corporate group
3. Reinforcement of the financial standing
・Sale of owned assets・Securing of the base for procuring the funds for the corporate group
・Utilization of corporate group’s finance and development of a cash management system
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1-3. Major Efforts for “Expanding Our Business” and “Strengthening Our Management Base”Overview of the Consolidated Results for the Fiscal Year Ended Mar. 2015
2. Business Performance (Consolidated Sales)Overview of the Consolidated Results for the Fiscal Year Ended Mar. 2015
(100 million yen)
FY14/MarActual Result
FY15/MarActual Result
Year-over-year Change Ratio of Change
Key telephone systems 125 137 12 9%
Network equipment, etc. 80 77 -3 -３％
Network solution field 205 214 9 4％
Security systems 110 95 -15 -13％
Parts, etc. 116 128 12 10％
Security solution field 226 223 -3 -1％
Total 431 437 6 1%
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FY14/Mar FY15/Mar
43.7 billion yen43.1 billion yenIncrease of 0.6
billion yen
(100 million yen)
Key telephone systems
Network equipment, etc.
Systems for the
amusement market
Increase in orders of
manufacture by commissioning
Network 205
Security226
＋12＋12-16
Network214
Security223
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2-2. Business Performance (Major Increases/Decreases in Consolidated Sales)(Fiscal Year Ended Mar. 2014 to the Fiscal Year Ended Mar. 2015)
Overview of the Consolidated Results for the Fiscal Year Ended Mar. 2015
-3
Office marketSystem integration business
2-3. Business Performance (Consolidated Profits and Losses)Overview of the Consolidated Results for the Fiscal Year Ended Mar. 2015
(100 million yen)
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FY14/MarActual Result
FY15/MarActual Result
Year-over-year Change
Ratio of Change
(A) (B) (B－A)
Network solutions field 205 214 9 4%
Security solutions field 226 223 -3 -1％
Net sales 431 437 6 1％
Operating income -5 10 15
Ordinary income -6 9 15
Net income -5 3 8
Net Income per share -7.82 yen 4.89
Dividend 3 yen (Plan) 3 yen
2-4. Business Performance (Major Increases/Decreases in Consolidated Operating Income)(Fiscal Year Ended Mar. 2014 to the Fiscal Year Ended Mar. 2015)
Overview of the Consolidated Results for the Fiscal Year Ended Mar. 2015
FY14/Mar FY15/Mar
1 billion yen- 0.5 billion yen Increase of 1.5 billion yen
(100 million yen)
Increase in sales
Change in models for
sales
Fluctuationin exchange
Cost reduction
Reduction of expenses
Improvement in profits due to the measures for improving
business administration
△ 8△ 6△ 4△ 2
02468
1012
＋1
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＋10
＋3＋2 -2
＋2
(100 million yen)
AssetsEnd of
FY14/Mar(A)End of
FY15/Mar(B)Change
Main reasons for change(B－A)
Current assets 234 237 3 Increase in accounts receivable due to sales growth
Fixed assets and others 191 199 8
Increase in deferred tax assets due to the revision to retirement benefit obligations (5)
Increase due to the acquisition of securities and fair market valuation
Total assets 425 437 12
Liabilities, Net assetsEnd of
FY14/Mar(A)End of
FY15/Mar(B)
ChangeMain reasons for change(B－A)
Current liabilities 114 126 12 Augmentation of current portion of debts
Fixed liabilities 81 82 1Increase due to the decrease in corporate bonds and
long-term debts, and the revision to retirement benefit obligations (15)
Total liabilities 195 208 13
Net assets 230 229 -1Decrease in retained earnings due to the posting of net
income and the revision to retirement benefit obligations (-10)
Total liabilities and net assets 425 437 12
Equity ratio 53.7% 52.0% -1.7%
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2-5. Business Performance (Consolidated Balance Sheet)Overview of the Consolidated Results for the Fiscal Year Ended Mar. 2015
2-6. Business Performance (Consolidated Cash Flow)Overview of the Consolidated Results for the Fiscal Year Ended Mar. 2015
(100 million yen)
End of FY14/Mar
End of FY15/Mar
A. Cash flows from operating activities 19 29
Net income before taxes and other adjustments -9 8
Depreciation 29 25
Change in operating funds -2 -5
Others 1 1
B. Cash flows from investing activities -20 -26
Payment for equipment investment -20 -18
Other investment activities -0 -8
Free cash flow -1 3
C. Cash flows from financing activities 1 -3
Cash and cash equivalents 62 63
Free cash flow is 300 million yen, as net income before taxes and other adjustments was posted, despite the expenditure through the acquisition of investment securities
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■ Midterm Managerial Plan (Fiscal Year Ending Mar. 2016 to Fiscal Year Ending Mar. 2018)
1. Basic Policy
2. Shift to Businesses That Can Grow Sustainably
3. Transformation into an Ideal Earning Structure
4. Target Management Indices
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1. Basic Policy Midterm Managerial Plan
Shift to businesses that can grow sustainably
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Transformation into ideal earning structure＋
Basic policy
Reinforcement of the management base
Expansion ofBusiness
■Sophistication of services and transformation into borderless industries through the popularization of cloud computing, IoT, etc.
Changes of desirable products and services for customers and changes of technologies and selling styles for meeting customers’ demand
⇒ “Expansion of business opportunities” and “creation of promising businesses, which will become new pillars”⇒ Rebalancing of the earning structure
・To offer office products and services・To offer amusement products and services・System integration business
Core businesses
Appropriate allocation of managerial resources
Streamlining business
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2. Shift to Businesses That Can Grow Sustainably (Expansion of Business )Midterm Managerial Plan
To obtain added values by utilizing resources
(Expansion of EMS/DMS)
■ Efforts for Expanding the Core Businesses (Office Market)Midterm Managerial Plan
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IP-PBXSP1000
(Office operation agency system)
ServerSB2000
IP-VOICEsolution
Lineup enrichment
Upgrade of functions
Lineup enrichmentUpgrade of functions
Service expansion
Network Karte service
Monitoring and remoteMonitoring
Service
UTMSS3000
IP network solution
VPN routerZC1000
Cloud services & IoTsolutions
Remote
Business phone
PLATIA
Business phone solution
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To offer systems and services to career, firms, education, and the public sector
Spec
design
Design
Development
Establishment
Maintenance
One-stop provision
System integration business scheme of SAXA Group
To expand and improve the core businesses(VoIP solution, information security solution,data linkage solution, NW integration,
footage solution, visualization solution)
Cooperation among group companies
Collaboration among partners
■Efforts for Expanding the Core Businesses (System Integration Business)Midterm Managerial Plan
IP-PBX system / call center system
NX-E1000(software)
Call center(software)
IP-PBX for middle to large-scale offices
Call center-compatible PBX for middle to large-scale offices
SIP-compatible IP phone system
SIP-compatible IP phone system in sync with call
center functionsPhone recordingVoice recognition
IP gateway
Spec design
Design
Development
Establishment
Maintenance
VOIP solution/security
■ Details of the System Integration Business 1/3 Midterm Managerial Plan
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Power supply/environment visualization solution
“New solutions”“Creation of new products”・Extension through combination
・Machine learning, etc.
Building Energy Management System
(put together and displayed)
CRM and cloud(analysis and prediction)Energy-saving control
(automatization and optimization)
・ECO Zeus, etc.
Horizontal expansion
Big data(weathers, footages, images, traffic volume, population, etc.)
Extension/sophistication
■ Details of the System Integration Business 2/3 Midterm Managerial Plan
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Network integration
“System optimization” for stores and firms
Data linkage solution
One-stop sales
Spec design
Design, development, establishment
Equipment selection
Operation and maintenanceE-money system Management systems
Data management solution
System integration
【 System architect 】
■ Details of the System Integration Business 3/3 Midterm Managerial Plan
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1. Optimization of the functions of the corporate group
(1) Improvement of group governance, and development of swift business operation systems
(2) Upgrade of production strategies and functions in the corporate group
(3) Streamlining of businesses 1 (4) Streamlining of businesses 2
(5) Improvement of the system integration business
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3-1. Transformation into an Ideal Earning Structure (Reinforcement of the Management Base) Midterm Managerial Plan
SAXAHoldings
SAXA System Amazing, Inc.Newly
established
Group management/business strategy functions
Responsibility for business operation
SAXA TechnoProduction strategies and functions in the
corporate group
Mother factory
SAXA Techno SAXATechnical Service
Merger
4/1SAXA SAXA
Business SystemDomestic contact points for security
products Transfer
8/1
4/1
4/1
4/1Group firms
SAXA
2. Reinforcement of the financial standing
(1) Improvement in capital and asset utilization efficiency① To secure stable profits② To improve development/investment efficiency③ To reduce inventory assets and review owned assets
(2) Improvement in fund utilization efficiencyDecrease in interest-bearing liabilities through the utilization of funds inside the corporate group, etc.
3. Optimization of staffing
(1) Qualitative reform of personnel① To enhance personnel development② To secure personnel
(2) Optimization of staffing by utilizing personnel systems
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3-2. Transformation into an Ideal Earning Structure (Reinforcement of the Management Base) Midterm Managerial Plan
49%51%
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31%
11%7%8%
4%
29%
9%Key telephone systems
Network equipment (office)
Network equipment (SI business）SI business (card system)
Amusement market
Social infrastructure market
Consigned processing business
Office market (security)
43.7billion yen
Goals for the fiscal year ending Mar. 2018■Consolidated net sales: over 55 billion yen ■Consolidated ordinary income: over 3 billion yen ■ROE: over 5% as soon as possible
Fiscal Year ended Mar. 2015 (results)
Fiscal Year ending Mar. 2018 (target values)
56%44%
28%
12%16%
9%5%
21%
8%Network solution field
Security solution field
4. Target Management Indices Midterm Managerial Plan
55 billion yen
Development of the
profitable management
base
Return to a growth track
[Composition of net sales]
■ Consolidated Earnings Forecast for the Fiscal Year Ending Mar. 2016
1. Estimated Consolidated Sales
2. Estimated Consolidated Profit and Loss
3. Investment in Business Operation
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1. Forecast of the Consolidated Business PerformanceFY2016 Business Forecast
(100 million yen)
FY15/MarActual Result
FY16/MarForecast
Year-over-yearChange
Ratio of Change
(A) (B) (B－A)
Key telephone systems 137 137 0 0％
Network equipment ,etc. 77 115 38 49％
Network solutions field 214 252 38 18％
Security systems 95 96 1 1％
Parts, etc. 128 112 -16 -13％
Security solutions field 223 208 -15 -7％
Total 437 460 23 5％
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1-2. Major Increases/Decreases in Estimated Consolidated SalesFY2016 Business Forecast
(100 million yen)
Key telephone system
Network equipment, etc.(Office market)
Network equipment, etc.
(System integration business)
Systems forthe
amusement market
Decrease oforders for
EMS and DMS
0
＋35
+３
Network equipment for office market
Network214
Security223
Network252
Security208
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-16
０
Office marketSystem integration business
+12
-9Optical-related equipment, etc.
FY15/Mar FY16/Mar
46.0 billion yen43.7 billion yen Increase of 2.3 billion yen
2. Estimated Consolidated Profit and Loss FY2016 Business Forecast
(100 million yen)
FY15/MarActual Result
FY16/MarForecast
Year-over-year
Change
Ratio of Change
(A) (B) (B－A)
Network solutions field 214 252 38 18％
Securities solutions field 223 208 -15 -7％
Net sales 437 460 23 5％
Operating Income 10 15 5
Ordinary Income 9 15 6
Net Income 3 5 2
Net Income per share 4.89 8.51
Dividend （Plan）3 yen （Plan）3 yen
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2-2. Major Increases/Decreases in Estimated Consolidated Operating Income FY2016 Business Forecast
(100 million yen)
Increasein sales
Change in models
for sale Fluctuationin exchange
Cost reduction
Increase in depreciation
Increase inselling cost
Effects of structural reform of management
0
5
10
15
20
-4＋4
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＋5
-1
-2
-4
＋7
FY15/Mar FY16/Mar
1.5 billion yen1 billion yen Increase of 0.5 billion yen
3. Investment in Business Operation FY2016 Business Forecast
FY15/Mar Actual Results
(A)
FY16/MarForecast
(B)
Change(B－A)
Capital investment (Tangible) 4 7 3
Capital investment (Intangible) 17 13 -4
Total 21 20 -1
R&D expenses 45 47 2
Depreciation expenses 25 29 4
(100 million yen)
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Technology to connect, and more ahead
Towards realization of comfortable life, namelyassured, comfortable and convenient life, to furtherpass on to connect our technology with future of ourcustomers, and that is SAXA.
