1
Results for 31st business period (Fiscal Year Ending March 31st, 2015)
TechMatrix Corporation
http://www.techmatrix.co.jp/
(Stock Code:3762)
May 29, 2015
Copyright © 2015 TechMatrix Corporation. All rights reserved.Ver.2015.5.29
2
Contents
1. Business Highlights for 31st Business Period
2. Progress of Business Strategy for 31st Business Period
3. Medium-term Management Plan ”TMX 3.0”
4. Stock price trend & shareholder returns
5. Market Conditions for our business
3
15
18
Copyright © 2015 TechMatrix Corporation. All rights reserved.Ver.2015.5.29
24
25
3
1. Business Highlights for 31st Business Period
Copyright © 2015 TechMatrix Corporation. All rights reserved.Ver.2015.5.29
4
1. Business Highlights (Consolidated) Highlights
Copyright © 2015 TechMatrix Corporation. All rights reserved.Ver.2015.5.29
■Net Sales: 18,417 ¥Million
■Year on year :up 6.1%
■ Operating income: 1,130 ¥Million (year on year up 1.0 %)
Operating income margin:6.1%
■ Ordinary income: 1,132 ¥Million (year on year down 2.7 %)
■ Net income : 584 ¥Million (year on year down 26.3 %)
■ CROSS HEAD made NCLC a wholly owned subsidiary. (CROSS HEAD merged NCLC on April 1, 2015) ■ Relocated and integrated our Head Office in order to meet our expanding business as well as increase in
workforce and to improve management efficiency by integrating the office space of Head Office. The new Head Office started operation on May 7, 2015.
■ Partial recovery in domestic IT investment is seen.
■ Sales bookings have gone on as planned.
■ Strategic expansion of stock-type businesses including cloud services has gone on as planned.
■ Offset sales decline of the Healthcare segment as planned with sales growth of other business segments.
■ 5 consolidated subsidiaries were profitable.
■ Recorded extraordinary loss in connection with relocation of the Head Office.
■ Net income increased due to the addition of deferred tax assets in Q1 of FY03/2014.
Income
Net sales
5
1. Progress of business performance
Copyright © 2015 TechMatrix Corporation. All rights reserved.Ver.2015.5.29
(¥Million)
Net sales (Consolidated)
Business Highlights
3,467
3,696
3,823
3,949
4,049
4,162
4,499
4,654
3,394
4,252
3,864
4,375
4,368
4,620
5,165
5,438
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000
FY03/2012
FY03/2013
FY03/2014
FY03/2015
Q1 Q2 Q3 Q4
6
1. Progress of business performance
Copyright © 2015 TechMatrix Corporation. All rights reserved.Ver.2015.5.29
Operating income (Consolidated)
Business Highlights
73
93
58
63
393
431
372
286
96
346
179
192
408
322
507
587
0 200 400 600 800 1,000 1,200 1,400
FY03/2012
FY03/2013
FY03/2014
FY03/2015
Q1 Q2 Q3 Q4
(¥Million)
7
1. Net sales of business segments
Copyright © 2015 TechMatrix Corporation. All rights reserved.Ver.2015.5.29
(Consolidated)
Business Highlights
9,921 9,805 10,561 11,195
12,044
5,280 5,474
6,170 6,157
6,373
0
5,000
10,000
15,000
20,000
FY03/2011 FY03/2012 FY03/2013 FY03/2014 FY03/2015
Information Infrastructure Business Application Services Business
(¥Million)
8
1. Information Infrastructure Business
Copyright © 2015 TechMatrix Corporation. All rights reserved.Ver.2015.5.29
■Highlight The sales of our main product, load balancers, have tended to peak out somewhat. Sales have steadily increased for next-generation firewalls for the public and private sectors, due in part to the growing threat from cyber-attacks such as Advance Persistent Threat (APT). Sales of anti-virus software licenses, website vulnerability assessment tools, URL Filtering appliance, Computer Forensics product , and other security-related products were solid. Number of contracts of security operation and monitoring services steadily increased. In conjunction with the accelerating growth of digital data, orders for cluster storage greatly increased. Sales of Sandbox (security) product for strengthening defense against unknown cyber-attacks, Security Information and Event Management (SIEM) product as security-related products in new fields started to grow. While CROSS HEAD received continuous orders in the maintenance, operation and monitoring services, it lost some sales opportunities due to difficulty in securing sufficient engineering staff. Okinawa Cross Head Co., Ltd. struggled somewhat to maintain sales and profitability because of stagnation of projects for government and other public agencies in Okinawa. Although sales of next-generation network appliances were favorable, the profitability deteriorated primarily due to the depreciation of the Japanese yen.
■Business performance :Net sales 12,044¥Million(Year on year 7.6% up)
:Operating income 1,029¥Million(Year on year 17.4% up)
■ Achieved the highest ever sales record
(Consolidated)
(¥Million)
Business Highlights
9,921 9,805 10,561
11,195 12,044
824
934
1,017
1,017
1,029
0
200
400
600
800
1,000
0
2,000
4,000
6,000
8,000
10,000
12,000
FY03/2011 FY03/2012 FY03/2013 FY03/2014 FY03/2015
Net Sales Operating income
9
1. Application Services Business
Copyright © 2015 TechMatrix Corporation. All rights reserved.Ver.2015.5.29
■ Business performance :Net sales 6,373¥Million (Year on year 3.5% up)
:Operating income 101¥Million (Year on year 58.3% down)
■Highlight ●The Internet Service field
・Contracted development business sustained good performance mainly due to orders of developments related to smartphones from existing customers. ・Shortage of software developers was an issue.
・CASAREAL, Inc. sales stagnated somewhat due to difficulty in securing sufficient engineering staff.
The Software Quality Assurance field ・Sales were in good shape in the context of rising demands for test tools in the
manufacturing and financial industries. ・The necessity for improvement of the quality of embedded software and functional
safety is prevalent in the manufacturing industry. ・ Demands for functional safety consulting for embedded software in the Medical
Device field increased.
The Healthcare field ・NOBORI, a cloud service for healthcare information, received substantial inquiries
and steadily increased orders. ・The revenue of this service is recognized in proportion to its corresponding service
period, this method will result in a decrease of revenue for the short term. (business results are progressing almost as planned.)
・ Ichigo LLC steadily expanded the number of contracted facilities, teleradiology orders, and pay-as-you-go payments as a result of progress of gaining customers from healthcare facilities and others in addition to the conventional service provision for hospitals, which led to better results than scheduled in both revenue and profit terms.
The CRM field ・Sales remained steady thanks to increased orders from the business collaboration
with major system integrator as well as the expanding demands for cloud services. ・ Released “FastHelp5," a next generation product for contact center CRM.
(Consolidated)
(¥Million)
Business Highlights
5,280 5,474 6,170 6,157 6,373
△ 150
37
176
242
101
△ 200
0
200
400
0
2,000
4,000
6,000
8,000
FY03/2011 FY03/2012 FY03/2013 FY03/2014 FY03/2015
Net Sales Operating income
10
1. Balance sheet
Copyright © 2015 TechMatrix Corporation. All rights reserved.Ver.2015.5.29
FY03/2014 FY03/2015
Current assets 9,869 10,791
Cash and deposits 3,959 4,291
Notes and accounts receivable-trade 3,378 3,489
Advance payment-cost of maintenance service 1,723 2,101
Other 808 909
Noncurrent assets 3,301 3,435
Property, plant and equipment 448 472
Goodwill 649 344
Other 756 830
Investments and other assets 1,446 1,787
Total assets 13,170 14,227
FY03/2014 FY03/2015
Current liabilities 6,033 6,738
Accounts payable-trade 1,135 1,116
Short-term loans payable 350 350
Advance received-sales of maintenance service 2,907 3,282
Other 1,640 1,988
Noncurrent liabilities 885 1,037
Total liabilities 6,918 7,776
Shareholders' equity 6,165 6,422
Total accumulated other comprehensive income
0 26
Minority interests 87 2
Total net assets 6,252 6,451
Total liabilities and net assets
13,170 14,227
(Consolidated)
(¥Million)
Business Highlights
Equity ratio : 45.3% as of March 31, 2015. 46.8% as of March 31, 2014.
11
1. Cash Flows
Copyright © 2015 TechMatrix Corporation. All rights reserved.Ver.2015.5.29
(Consolidated)
(¥Million)
Business Highlights
FY03/2014 FY03/2015
Ⅰ. Net cash provided by operating activities 1,247 1,075
Ⅱ. Net cash provided by investing activities △976 △341
Ⅲ. Net cash provided by financing activities △145 △205
Ⅳ. Net increase in cash and cash equivalents 126 527
Ⅴ. Cash and cash equivalents at beginning of period 3,633 3,759
Ⅵ. Cash and cash equivalents at end of period 3,759 4,291
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1. Activities
Copyright © 2015 TechMatrix Corporation. All rights reserved.Ver.2015.5.29
Business Highlights
Date Contents
Jun.
Entered into distributorship agreement with Indonesia-based CBN Cloud
CROSS HEAD concluded a Japan exclusive distributorship agreement with French company Ulteo SAS
Announcement of the details of the shareholder special benefit plan
Jul. Entered into distributorship agreement with Nippon Jimuki Co., Ltd. for sales of NOBORI
Aug. Okinawa Cross Head Co., Ltd. entered into a business alliance with Hewlett-Packard Japan, Ltd.
Sep.
Concluded distributorship agreement with U.S.-based Avere Systems, Inc.
Concluded distributorship agreement with U.S.-based VERACODE, Inc.
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1.
Copyright © 2015 TechMatrix Corporation. All rights reserved.Ver.2015.5.29
Date Contents
Oct.
CROSS HEAD made investment in U.S.-based Pica8, Inc.
NCL Communications K.K. commenced the provision of a free trial license for "PicOS", a new network OS, announced by Pica8, Inc.
Commenced the provision of a cloud service for healthcare information jointly with SoftBank Telecom Corp. and Densan, Inc.
Nov.
Commenced the provision of the Web-based assistance for customer support organization
Notice regarding TechMatrix CRM FORUM 2015, Japan's largest seminar for C.C.professionals
Dec. CROSS HEAD acquired 100% ownership of NCL Communications
Business Highlights Activities
14
Date Contents
Jan.
Merger of consolidated subsidiaries
Downward earnings forecast of special loss due to head office relocation
Feb.
Commencement of new security monitoring service to defend unknown cyber-attack
Commenced the provision of “FastHelp5” as a new version of the Contact Center CRM system and new "FastHelp Pe", the CRM system for medicine counseling room
Held TechMatrix CRM FORUM 2015, Japan's largest seminar for Contact Center professionals
NCLC commenced the provision of software as a self-developed product for the next-generation network construction
Mar.
CASAREAL signs training partner contract with JetBrain and commences business tie-up with Samuraism
Entered into OEM agreement with 3z Corporation for sales of WATARU
Copyright © 2015 TechMatrix Corporation. All rights reserved.Ver.2015.5.29
1. Business Highlights Activities
15 Copyright © 2015 TechMatrix Corporation. All rights reserved.Ver.2015.5.29
2. Progress of Business Strategy for 31st Business Period
16
2. Topics
Copyright © 2015 TechMatrix Corporation. All rights reserved.Ver.2015.5.29
NOBORI •Steadily increased the number of customers as planned toward the goal (a total of 300 at the end of this fiscal year) •Sales bookings steadily grew by obtaining large-scale orders and strategically enhancing business alliances
Ichigo LLC •Led to better results than scheduled in both revenue and profits due to steady increase of the number of healthcare facilities
CRM •Increase demands for cloud services and business collaboration with major system integrators led to strong sales results •Commenced the provision of the Web-based assistance for customer support section
Internet Service •Contracted the large-scale orders for EC-related development projects and sustained good performance
Network and Security •Concluded distributorship agreement with U.S.-based Avere Systems, Inc., known for its Hybrid Cloud NAS system, and U.S.-based VERACODE, Inc., who provides cloud-based application vulnerabilities assessment service.
Software Quality Assurance •Sales were in good shape in the context of rising demands for test tools in the manufacturing and financial industries. Consulting services revenue for functional safety increased mainly in healthcare equipment industry.
Pursuit of security and safety
(non-consolidated)
Progress of Business Strategy
17
2. Stock type sales ratio
Copyright © 2015 TechMatrix Corporation. All rights reserved.Ver.2015.5.29
Application Services Business Information Infrastructure Business
(non-consolidated)
Progress of Business Strategy
1,258 1,232 1,431
1,612 1,903
2,212 2,501
3,896 3,972 3,416
3,528
3,805 3,490
3,478
24.4% 23.7%
29.5%
31.4%
33.3%
38.8%
41.8%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
FY03/09 FY03/10 FY03/11 FY03/12 FY03/13 FY03/14 FY03/15
Stock
Non-stock
Stock ratio
2,120 2,414
2,634 2,812 2,909 3,003
3,216
3,417 3,171
2,963
3,470
3,857 3,874
4,777
38.3% 43.2%
47.1%
44.8%
43.0% 43.7%
40.2%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
FY03/09 FY03/10 FY03/11 FY03/12 FY03/13 FY03/14 FY03/15
Stock
Non-stock
Stock ratio
18 Copyright © 2015 TechMatrix Corporation. All rights reserved.Ver.2015.5.29
3. Medium-term Management Plan ”TMX 3.0”
External environment and our challenge
Actual status and challenge
1. Some encouraging signs of recovery started to appear such as continuing depreciation of the Japanese yen, higher stock prices, lower crude oil prices, consumer price increase and pickup in exports
2. shift in orientation of IT system investment from “ownership of equipment (on-premise type)” to “usage of services (cloud type)”
3. The era arrived where the various devices around us are electronically controlled by embedded software
4. Increasing sophistication of security threat from cyber-attacks 5. low growth of domestic IT investment
1. Touch the bottom of negative impact and come back into the black in cloud business for healthcare information
2. Sustainable growth and stability of our business 3. Expand our market share and promote our growth in excess of market growth rate 4. improve profit rate (cost reduction)
External environment
19
Goal of “TMX 3.0”
Continuing transformation to "Next-Gen. IT Service Creator", "Next-Gen. IT Service Provider"
10%
To
¥30Billion
50%
10%
Growth rate of net sales
Business scale may reach ¥25B-30B through M&A and expanded Biz in overseas markets
Stock type sales ratio (Cloud, maintenance, operation and monitoring services)
Challenge to operating income margin of 10%
20
15,202 15,279 16,731 17,353
18,417
20,400
22,700
25,100
666
971
1,194 1,118 1,130
1,300
1,700
2,350
0
500
1,000
1,500
2,000
2,500
0
3,000
6,000
9,000
12,000
15,000
18,000
21,000
24,000
27,000
FY03/2011 FY03/2012 FY03/2013 FY03/2014 FY03/2015 FY03/2016(Plan)
FY03/2017(Plan)
FY03/2018(Plan)
Net sales Operatting income
Copyright © 2015 TechMatrix Corporation. All rights reserved.Ver.2015.5.29
Strategy for next 3 years
Key
principle
Business
strategy
Operation
strategy
Shareholder
returns
Continuing transformation to "Next-Gen. IT Service Creator", "Next-Gen. IT Service Provider" through a breakaway from labor-intensive contract business as conventional type.
• Strategic and accelerated promotion of cloud-related businesses ‣ Self-driven operation of cloud service businesses (SaaS) ‣ Development and provision of technologies to enable cloud services
• Pursuit of security and safety ‣ Provision of network security solutions ‣ Provision of solutions for software functional safety and software quality assurance
• Cost reduction for high profitability ‣ Promote the active utilization of offshore development ‣ Improve operation efficiency by integrating the office space of Head Office (The new Head Office started operation on May 7, 2015) ‣ Transform business model without monotonic increase of human resources (Further promote service type business)
• Closer ties with partners • Strengthen direct sales. Penetrate deeply into the market for the government and
other public agencies • Strengthen workforce by promotion of diversity • Strengthen company's brand as corporate group
• Key principle : dividend payout ratio is more than 20% at the end of fiscal year • Emphasize an increase in dividends based on profit level • Improve the shareholder special benefit plan
21
Strengthen company's foundation and indicate basic policy to the next 30 years (Establish growth gene)
Copyright © 2015 TechMatrix Corporation. All rights reserved.Ver.2015.5.29
Strategic and accelerated promotion of cloud-related businesses
• Profit contribution by the cloud business (Realize profitability of the healthcare cloud business) • Turn our cloud service into a platform (diversification) • Establish cloud business in overseas (Asian) market (At first, the success of the joint venture in China) • Quality improvement for cloud operation (Exponential improvement of operational skills) • Strategic application of virtualization technologies (Cloud first) • Analysis of Big data gathered by the cloud (Secondary use of the data )
Core business strategy
• Enhancement of defenses against cyber-attacks and provide as one-stop service • Design, construction, maintenance, operation and monitoring services Realize value chain of automatization • Realize functional safety of embedded software for IoT (Internet of Things) • Contribute to safety and security within Internet-based society.
(accumulation of knowledge as a professional group in the Technology for Information Security and Software Quality Assurance field)
Pursuit of security and safety
22 Copyright © 2015 TechMatrix Corporation. All rights reserved.Ver.2015.5.29
22,700
6.4% 7.5% 9.4%
Business plan on our segments
20,400
25,100
16,731 17,353
18,417
23
10,561 11,195
12,044
13,800
15,400
17,000 6,170 6,157
6,373
6,600
7,300
8,100
0
5,000
10,000
15,000
20,000
25,000
30,000
FY03/2013 FY03/2014 FY03/2015 FY03/2016(Plan)
FY03/2017(Plan)
FY03/2018(Plan)
Information Infrastructure Business
Application Services Business
1,017 876 1,029 1,120 1,320 1,600
176 242 101 180
380
750
0
500
1,000
1,500
2,000
2,500
Information Infrastructure Business
Application Services Business
2,350 1,700 1,300 1,130 1,118 1,194
Net sales Operating income
Operating income margin
(¥Million) (¥Million)
Evolution for a stronger company materializing sustainable growth
Copyright © 2015 TechMatrix Corporation. All rights reserved.Ver.2015.5.29
24 Copyright © 2015 TechMatrix Corporation. All rights reserved.Ver.2015.5.29
March/08 March/09 March/10 March/11 March/12 March/13 March/14 March/15 March/16(Plan)
Shareholder special benefit plan
Eligible shareholder Shareholders who have 500 shares and over at the end of September Benefit plan 500 and over : ¥1,000 worth of products or
donation to charity 1,000 and over : ¥3,000 worth of products
or donation to charity
*The Company conducted a stock split at a ratio of 200 shares for every 1 share of common stock on April 1, 2013, based on a resolution passed at the Board of Directors’ meeting held on February 28, 2013. Accordingly, stock price and dividend are calculated assuming the stock split was conducted at the beginning as of March 2009.
¥310 2008/3
¥467 2010/12
¥721 2013/12
Net s
ale
s/O
pera
ting in
com
e
(¥m
illion
)
Sto
ck
pric
e(¥
)
800
400
4. Stock price trend & shareholder returns
¥756 2015/5/20
9.0 9.0 12.5 12.5 12.5 12.5 15 15
3.5
2.5
2.0
30.8 44.9
81.1
35.0 23.9 22.6
31.1 24.5
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
FY03/9 FY03/10 FY03/11 FY03/12 FY03/13 FY03/14 FY03/15 FY03/16
(Plan)
(%) (¥) Dividend per share Commemorative dividendOrdinary dividenddividend payout ratio
1,300 1,130 1,118 1,194 971 666 746 740 1,099
20,400 18,417 17,353 16,731
15,279 15,202 14,248 13,438 11,612
0
5,000
10,000
15,000
20,000
25,000Operating income Net sales ー Stock price
25 Copyright © 2015 TechMatrix Corporation. All rights reserved.Ver.2015.5.29
5. Market Conditions for our business
26
5. Market Conditions Forecast of cloud market size (Japan)
Copyright © 2015 TechMatrix Corporation. All rights reserved.Ver.2015.5.29
Domestic cloud market size was ¥625.7 billion (22.6% up year on year). Forecast over ¥1,000 billion in FY2015 and expand to ¥1,800 billion. The “cloud first” is prevailing in the market. 80% of companies have evaluated cloud services when they build new system.
Forecast ¥1,800 billion in FY2018
(¥Billion)
Reference : Cloud business market report 2014(4.Nov.2014) by MM Research Institute
0
500
1,000
1,500
2,000
FY2013 FY2014 FY2015 FY2016 FY2017 FY2018
Private cloud (Hosted, On-premise, community) Public cloud(SaaS, IaaS/PaaS)
27
PACS: Picture Archiving and Communication System
Copyright © 2015 TechMatrix Corporation. All rights reserved.Ver.2015.5.29
Number of contracted facilities using cloud is 102 as of the end of FY2012 in Japan. They estimate full-fledged growth in about 2014. Techmatrix has successfully contracted with 50 facilities as of the end of FY2012. Accumulated total 150 as of the end of FY2013, about 300 as of the end of FY2014.
Reference : Medical Imaging Systems and PACS Markets 2014 by Yano Research Institute
102
241
416
515
637
775
900
355
667
1,133
1,462
1,950
2,405
2,696
0
500
1,000
1,500
2,000
2,500
3,000
0
100
200
300
400
500
600
700
800
900
1,000
FY2012
(actual)
FY2013
(actual)
FY2014
(estimated)
FY2015
(estimated)
FY2016
(estimated)
FY2017
(estimated)
FY2018
(estimated)
Number of contracted facilities Estimated capacity
(facilities) (TB)
*Estimate as of Dec.2014
PACS Cloud market size estimate
5. Market Conditions
28
Type of PACS Cloud
Copyright © 2015 TechMatrix Corporation. All rights reserved.Ver.2015.5.29
Techmatrix is ahead in the healthcare cloud business with "NOBORI" which is installable at a low price and in short term.
Cloud type
Brief summary Feature Configuration image “NOBORI”
TYPE 1
Store both short term and long term data in a in-house server + data center (dual storage for all data)
Data back up by data center
Additional cost -
TYPE 2
Store short term data in a in-house server + long term data in data center
High frequency use data in hospital
Additional cost
-
TYPE 3
All data in data center without in-house server (only cash in NOBORI appliance)
No additional cost and lower price range ◎
5. Market Conditions
29
5. CRM software market size (Japan)
Copyright © 2015 TechMatrix Corporation. All rights reserved.Ver.2015.5.29
Market size of Call center (telemarketing) is forecasted to grow at average rate of 1.7% each year form FY2011 to FY2016 and to ¥708.6 Billion as of FY2016 Market size of Contact center (CRM Solution) is forecasted to grow at average rate of 4.7% each year form FY2011 to FY2016 and to ¥545.6 Billion as of FY2016
Market Conditions
652 665 677 693 703 709
434 468
504 524 538 546
0
100
200
300
400
500
600
700
800
FY2011
(actual)
FY2012
(actual)
FY2013
(actual)
FY2014
(forecast)
FY2015
(forecast)
FY2016
(forecast)
Call center(telemarketing) Actual market size & forecast
contact center/CRM Solution Actual market size & forecast
*Service provider's sales. Estimate as of Jan.2015
Reference : Call Center (Telemarketing)/Contact Center/CRM Solution Market in Japan: Key Research Findings 2014 by Yano Research Institute
(¥Billion)
EC(BtoC)market size (Japan)
Market size rerated to EC was 12.5% up in 2012 year on year, and forecasted 17.4% up in 2013. Growth rate on average beyond 2013 at 11.9% has been forecasted (NRI)
Reference: ”The E-Commerce Market Survey“ by Ministry of Economy, Trade and Industry, “IT market trend survey to 2020” by Nomura Research Institute
(~2013:METI, 2014~:NRI)
Copyright © 2015 TechMatrix Corporation. All rights reserved.Ver.2015.5.29 34
(¥Billion)
6,089 6,696 7,788 8,459
9,513 11,166
12,800
14,400
25,100
1.79%
2.08%
2.46%
2.83% 3.11%
3.67%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
0
5,000
10,000
15,000
20,000
25,000
30,000
2008 2009 2010 2011 2012 2013 2014
(NRI)
2015
(NRI)
2020
(NRI)
EC market size (actual/forecast) EC rate (actual)
EC(BtoC)market size (actual/forecast)
5. Market Conditions
31
5. CRM software market size (Japan)
Copyright © 2015 TechMatrix Corporation. All rights reserved.Ver.2015.5.29
Market size related to CRM are ¥653.4 billion in FY2012, ¥686.2 billion in FY2015. Growth rate:1.6% a year Software market size in total amount of CRM is ¥111.5 billion in FY2012, ¥117.2 billion forecasted in FY2015 by increasing 1.8% in FY2012 and 1.7% in FY2013. SaaS market size will be ¥48.7 billion in FY 2015 from ¥36 billion in FY2012 at the annual growth rate of 10.6%. SaaS ratio was forecasted to expand 42% in FY2015 from 32% in FY2012.
Market Conditions
78,580 75,500 72,700 70,328 68,588
30,900 36,000 40,700 45,000 48,700
28% 32%
36% 39%
42%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
FY2011
(actual)
FY2012
(actual)
FY2013
(forecast)
FY2014
(forecast)
FY2015
(forecast)
CRM on premise CRM SaaS SaaS ratio
(¥Million)
Reference : CRM business report 2013 by MIC Research Institute
32
5. Network & Security market size (Japan)
Copyright © 2015 TechMatrix Corporation. All rights reserved.Ver.2015.5.29
Forecasted Networks Security business market in Japan expanding from ¥359.4 billion in FY2013 to ¥471.2 billion in FY2018. High growth rate on average at 5.6% has been forecasted.
Market Conditions
(¥Billion)
Reference : Network Security business report 20134 by Fuji Chimera Research Institute
0
50
100
150
200
250
300
350
400
450
500
FY2013
(actual)
FY2014
(forecast)
FY2015
(forecast)
FY2016
(forecast)
FY2017
(forecast)
FY2018
(forecast)
Security service Security tools
33
5. Embedded system market size (Japan)
Copyright © 2015 TechMatrix Corporation. All rights reserved.Ver.2015.5.29
As for the embedded system market, it is expected that an annual rate of over 2% of gradual growth continues after FY2014. In FY2013, it is ¥867 billion compared with the previous fiscal year, up 3.5%. It is expected that the market finally grows up steadily, despite the embedded system market which was sluggish by recession after Lehman shock and the rapid shift to a smartphone .
Market Conditions
(¥Million)
555,000 567,000 587,000 609,000 626,000 640,000
162,000 162,000 167,000 172,000 175,000 177,000 115,000 109,000
113,000 117,000 120,000 122,000
14% 13% 13% 13% 13% 13%
-6%
-4%
-1%
2%
4%
7%
9%
12%
14%
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
FY2011
(actual)
FY2012
(actual)
FY2013
(forecast)
FY2014
(forecast)
FY2015
(forecast)
FY2016
(forecast)
Service Hardware Software Software ratio Software ratio change from previous year
Reference : Embedded system solution report 2013 by MIC Research Institute
34 Copyright © 2015 TechMatrix Corporation. All rights reserved.Ver.2015.5.29
TechMatrix Corporation Planning and accounting division Corporate planning team
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