Result for Q1 FY15 Ended June 30, 2015

Transcription

1 Result for Q1 FY15 Ended June 30, 2015 July 30, 2015 NetOneSystems Co., Ltd. TSE:

2 Agenda Overview Financial Report P. 2 FY2015 Overview of Q1 Actual P. 3 Performance by Market Sector P. 4 Performance by Product Category P. 5 Analysis of Operating Income P. 6 Appendix P

3 Executive Summary FY15 Plan Bookings/Revenue Top line is stayed as same as previous period because of increasing a focus on unified platform infrastructure for the Social Security and Tax Number System, work style innovation and cloud-ready network for seeing a reducing capital investment for Telecom Carrier. Income Bottom line is improved +0.8 points from the previous period because of raising operation rates of internal resources by development of human resources and productivity growth. FY15 Progress Bookings/Revenue In Enterprise Sector the booking and revenue increased since Q2/FY14 due to growing demand for collaboration tool and VDI(virtual desktop infrastructure) for work style innovation and strong demand for upgrades to cloud-ready network. In Public Sector projects related to VDI for strengthen information security and unified platform infrastructure for the Social Security and Tax Number System favorably although the bookings shifted to Q2 in year-over-year. In Telecom Carrier Sector the bookings went according to plan although declining trend by uncertified capital investment ongoing. Income In Q1 gross profit margin decreased 1.7% year-over-year due to Impacts of the yen's low levels in some projects and cost increase of vender support fee temporarily. But then the income is trend of recovering to our plan because of making steady progress for the curtailment of expenditures and subcontract expense. Forecast in H1 Bookings Recover in line with our plan by increasing demand generation and surefire bookings. Revenue Keep going in line with our plan. Operating Income Rate Approach our plan by raising operation rates of internal resources and productivity growth. 2

4 FY2015 Overview of Q1 Actual FY2014 Q1 Actual (M yen) FY2015 Q1 Actual (M yen) Amount (M Yen) Increase/ Decrease Revenue 25,718 29,200 +3, % % Operating Income [Margin] (1,360) [ 5.3%] (365) [ 1.3%] % Ordinary Income [Margin] (1,319) [ 5.1%] (358) [ 1.2%] % Net Income attributable to owners of the parent company [Margin] (912) [ 3.6%] (289) [ 1.0%] % Higher revenue, Higher profit, Narrower deficit 3

5 Performance by Market Sector Bookings Revenue Backlog (M yen) 32,574 6,338 28,130 8,177 8,941 6,111 12,451 8,111 5,514 4, /3 Q1 2016/3 Q1 25,718 7,453 9,911 29,200 9,479 9,613 4,721 6,106 3,522 3, /3 Q1 2016/3 Q1 61,961 57,752 15,577 19,779 14,303 9,400 24,055 21,951 7,971 6, /3 Q1 2016/3 Q1 Enterprise Growing demand for collaboration tool and VDI(virtual desktop infrastructure) by work style innovation and strong demand for upgrades to cloud-ready network. Telecom Carrier In line with our plan by increasing cloud building projects and renewal of current network systems. Public Strong demand with a focus on unified platform infrastructure for the Social Security and Tax Number System. Partner In line with our plan by expansion of cloud solutions and strengthening collaboration with our partners. Challenge to new business model for Internet of Things (IoT) and corporate market. 4

6 Performance by Product Category Bookings Revenue Backlog 32,574 61,961 28,130 29,200 57,752 25,717 15,859 15,768 12,438 13,736 12,318 11,013 8,151 5,186 6,048 2,973 2,673 2,836 37,950 40,127 10,757 11,720 11,867 13,908 (M yen) 2015/3 Q1 2016/3 Q1 2015/3 Q1 2016/3 Q1 2015/3 Q1 2016/3 Q1 Network products In line with our plan by strong demand for upgrades to cloud-ready network in Enterprise Sector and renewal of current network systems in Telecom Carrier Sector. Platform products Strong demand with a focus on unified platform infrastructure for the Social Security and Tax Number System in Public Sector and growing demand for collaboration tool and VDI by work style innovation in Enterprise Sector, although bookings decreased year-on-year. Service businesses Increasing design and implementation service related to upgrades for cloud-ready network in addition to maintenance and operation service for installed base. 5

7 Analysis of Operating Income 0 (200) Revenue +3,482 (25,718 29,200) [Product Category] Network +1,305 Platform +136 Service +2,040 Gross profit margin 1.7% (24.0% 22.3%) [Lowering factor] Some projects that had low margin 0 Increasing a part of vender support fee Reduction of SGA [Major Factor] Reduction of PC and S/W license fee by BYOD Reduction of start-up fee for ERP (365) (M yen) (400) (600) (800) (1,000) (1,360) (496) (1,200) (1,400) (1,600) FY2014 Q1 Operating Income Impact of change in net sales Impact of change in gross profit margin Impact of change in SGA FY2015 Q1 Operating Income 6

8 Appendix

9 Outlook FY15: Consolidated Income Statements (million yen, % to revenue) Bookings 69, % 78, % 148, % Revenue 62, % 81, % 144, % Cost of sales 47, % 63, % 110, % Gross profit 14, % 18, % 33, % SG&A 13, % 14, % 27, % Operating income % 4, % 5, % Ordinary income % 4, % 5, % Net income attributable to owners of the parent FY15 H1 H2 Annual As of May 1, % 2, % 3, % Dividends per share (million yen) Capital expenditures Depreciation Exchange rate Yen Yen Yen FY15 Annual 3,410 2, usd/yen (Note) Net income was referred to as "Net income attributable to owners of the parent" starting April 1,

10 Outlook FY15: Market Sector (million yen, %yoy) H1 As of May 1, 2015 Bookings 69, % 78, % 148, % Enterprise 19, % 28, % 48, % Telecom Carrier 18, % 18, % 36, % Public 20, % 19, % 40, % NOP [Partner biz] 10, % 12, % 22, % Other % % Revenue 62, % 81, % 144, % Enterprise 19, % 27, % 46, % Telecom Carrier 16, % 19, % 35, % Public 15, % 23, % 39, % NOP [Partner biz] 10, % 11, % 21, % Other % % % FY15 H2 Annual 9

11 Outlook FY15: Product Category As of May 1, 2015 (million yen, %yoy) H1 FY15 H2 Annual Bookings 69, % 78, % 148, % Network products 32, % 34, % 66, % Platform products 11, % 10, % 21, % Service businesses 25, % 33, % 59, % Revenue 62, % 81, % 144, % Network products 27, % 36, % 63, % Platform products 10, % 13, % 23, % Service businesses 25, % 31, % 57, % (Note) [Network products] Router, Switch, Networking equipment, etc. [Platform products] Server/Storage, Virtualization software, Video conferencing, IP phone, etc. [Service businesses] Consulting, System design, Installation, Service/Operation management, etc. 10

12 Results Q1: Consolidated Balance Sheets (million yen) Jun 30, 2014 Jun 30, 2015 yoy Results Results Change Ratio Total assets 89,036 93,788 4, % Current assets 77,197 82,092 4, % Cash and deposits + CD CP 23,951 25,429 1, % Notes and accounts receivable-trade 25,232 26,393 1, % Inventory assets 17,419 18,497 1, % Other 10,593 11,772 1, % Noncurrent assets 11,838 11,695 (143) - 1.2% Property, plant and equipment 5,776 5, % Intangible assets 1,847 1,687 (160) - 8.7% Investment etc. 4,215 4,196 (18) - 0.4% Total liabilities 34,213 38,154 3, % Current liabilities 32,155 34,722 2, % Accounts Payable-Trade 11,730 11,465 (265) - 2.3% Advances received 16,282 17,635 1, % Other 4,143 5,622 1, % Non-current liabilities 2,057 3,432 1, % Total net assets 54,823 55, % Shareholders equity 54,791 55, % Capital stock 12,279 12, % Capital surplus 19,453 19, % Retained earnings 24,215 24, % Treasury stock (1,157) (1,143) 13 - Accumulated other comprehensive income (34) Subscription rights to shares % Total liabilities and net assets 89,036 93,788 4, % 11

13 Results Q1: Revenue and P/L by Reportable Segment Ended Jun 30, 2015 (Results) Amount Reportable segment recorded in (million yen) Other Total Adjustment consolidated Telecom Enterprise Public NOP Sub-total income Carrier statements Revenue 9,483 9,613 6,106 3,822 29, ,422 (222) 29,200 External revenue 9,479 9,613 6,106 3,820 29, ,200-29,200 Inter-segment revenue or transactions (222) - Segment income (761) 70 (230) (19) (249) (116) (365) Ended Jun 30, 2014 (Previous) Revenue 7,456 9,911 4,721 3,522 25, ,143 (425) 25,718 External revenue 7,453 9,911 4,721 3,522 25, ,718-25,718 Inter-segment revenue or transactions (425) - Segment income (290) 832 (1,759) (66) (1,282) 110 (1,172) (188) (1,360) (Notes) 1. The Other segment is not included as a reportable segment. It contains the server service business and other businesses. 2. The adjustment in segment income included corporate expenses not attributable to any reportable segment. Corporate expenses are mainly related to general administrative expenses not attributable to reportable segment. 12

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