FY2016 1st Half Financial Results Briefing. Bunmei Shimojima President and Representative Director Fujitsu Frontech Limited October 26,2016

Transcription

1 FY2016 1st Half Financial Results Briefing Bunmei Shimojima President and Representative Director Fujitsu Frontech Limited October 26,2016

2 1. Summary of FY st Half Consolidated Financial Results 1

3 Consolidated Results of Operations Net sales Operating income Ordinary income Net income attributable to owners of parent Net income per share FY2016 First half FY2015 First half yen yen Year-on-Year Figures announced in April yen Changes from the figures announced in April Sales Outside Japan (Ratio of Sales Outside Japan) Average exchange rate during period (1USD =) FY2016 First half 12.3 (23.8%) (Including -2.1 Billion yen effect of currency fluctuation) FY2016 First half 105 yen FY2016 First half 16.8 (30.1%) FY2015 First half 122 yen 2

4 Sales / Operating income by Business Segment FY2015 First half FY2016 First half Change Global Product Business Service Integration Business Public Solution Business Frontline Solution Business Other/ Corporate (Including strategic investments) Net sales Operating income Net sales Operating income Net sales Operating income ±0 ±0 Total

5 Major Factors for Changes in Operating Income Sales Increase in Japan +0.4 Expansion of cash management business in the US +0.3 Cost reduction -0.5 Sales decrease in overseas -0.3 Currency fluctuation 1.2 Advancement of business in Japan Changes from the figures announced in April+1.7 Figures announced in April 4 FY2016 First half (Result)

6 Sales by regions FY2015 First half FY2016 First half Change Japan Outside Japan (Ratio of Sales Outside Japan) 16.8 (30.1%) 12.3 (23.8%) -4.5 Americas Europe Asia [China] [5.2] [0.9] [-4.3] Other Total Effect of Currency Exchange -2.1 Billion yen 5

7 Consolidated Financial Positions and Cash Flows Consolidated Financial Position FY2016 First half Total Assets Total Liabilities Total Equity Capital Adequacy Ratio % FY % Change Consolidated Cash Flows C/F from operating activities A C/F from investing activities B Non-debt management from FY2015 Free C/F A + B C/F from financing activities C C/F A + B + C Cash and cash equivalents at the end of year FY2016 First half FY2015 First half Change Decrease of recovery due to strong yen 2 Payment of debt loan 6

8 2. Business Overview 7

9 Midterm Business Plan(From FY2016) Midterm Strategic Themes Expansion of overseas business areas (B to B to Front) Promotion of Business Transformation in Japan Strengthening and Developing Front-end Technologies Promotion of Business Efficiency by Process Innovation Financial Objectives Consolidated Net Sales Operating Income Operating Income Ratio Ratio of Sales Outside Japan FY2015 Results Midterm Target % 6.0% 29.3% 40% 8

10 Global Product Business Business Circumstances for the 1 st Half Sales of banking terminals increased by large replacement demands. ATM s large replacement demands peeked out last year, but the sales were as planned. Sales Cash handling component business Chinese market: Sales decreased due to several postponed businesses. US market: Showed large growth by the expansion of cash management systems for the retail store back offices. FY st Half FY st Half Operating Income FY st Half FY st Half Measures and Prospects for the 2 nd Half Surely corresponding to demands for banking terminals and ATMs in Japan. Aggressive proposals of banking terminals for mini branches. Further expansion of cash management systems in the US. Considering solution business utilizing cash management systems. Starting development of next generation small size BRU for global market. (SCO and small size ATM) 9

11 Service Integration Business Business Circumstances for the 1 st Half Sales of ATM software packages decreased due to peek out of large replacement demands. Sales Large scale SI business in financial and industrial fields showed steady performance. ATM services for retail stores showed steady performance. LCM services showed growth mainly by kitting services. Multi-vendor maintenance support for retail stores showed good performance. Started provision of new maintenance scheme service for a large mass retailer. Measures and Prospects for the 2 nd Half FY st Half Operating Income FY st Half FY st Half FY st Half Starting development of ATM service corresponding to internationally issued credit cards with Resona Bank. Expanding branch operation reforming solution business (ex. Quick counters, etc.). Enhancing functions of cash management services (linkage with POS and accounting systems), and promoting consideration of new sales channel. Expansion of SI and LCM business maximizing synergy of Solution and Service group being one organization. 10

12 Public Solution Business Business Circumstances for the 1 st Half Cloud based used car auction system promoted. Net Sales Systematization of medical integrated service solution for hospitals promoted. Replacement of new large scale display systems developed. Operating Income FY st Half FY st Half Demands for totalizator related systems advanced. FY st Half FY st Half Measures and Prospects for the 2 nd Half Promoting integration of cashless betting and gift ticket management server, applying to cloud service, for public racing business. Development and expansion of stadium solutions (display systems, entrance and exit control systems, etc.). Advancing development of 8 th generation totalizator terminals, and toto terminals. Advancing development of digital signage for outdoors, corresponding to inbounds. 11

13 Frontline Solution Business Business Circumstances for the 1 st Half Sales decreased, but operating income improved due to changes in supply chain scheme of POS in FY2015. RFID business showed good performance globally. Net Sales Palm vein authentication system showed growth globally, especially for municipal organizations in Japan. Operating Income FY st Half FY st Half Released small-sized and high performance palm vein authentication sensor and built-in authentication control board. Measures and Prospects for the 2 nd Half FY st Half FY st Half RFID and palm vein authentication systems will continue to show good performances. Promoting development of sensor (RFID, beacon) platform. Enhancement of palm vein authentication business (apply to cloud and services). 12

14 3. Summary of FY2016 Full-year Targets 13

15 Consolidated Earnings Forecast Decrease due to currency fluctuation and decrease in Chinese and European business Expansion of cash management business for retail markets in the US Promotion of cost reduction and efficient use of expenses FY2016 Forecast FY2015 Results Net sales Operating income Ordinary income Net income attributable to owners of parent Change Net income per share yen yen Change vs Previous Forecast ±0 ±0 FY2016 Assumption FY2015 Assumption rate from 3Q Average Currency Exchange Rate During Period(1USD=) 100 yen 120 yen 14

16 Forecast of Sales and Operating Income by Business Segments FY2015 FY2016 Change Net Sales Operating Income Net Sales Operating Income Net Sales Operating Income Global Product Business Service Integration Business Public Solution Business Frontline Solution Business ± Other / Corporate ±0 ±0 Total

17 Sales Forecast by Regions FY2015 FY2016 Change Japan Outside Japan Americas Europe Asia [China] [9.7] [7.6] [-2.1] Other Impact of Currency Fluctuation Total

18 4. Topics 1.Development of Cash Management Business in the US 2.Circumstances of Business in China 3.Enhancement of IoT Sensor Solution 4.Expansion of Palm Vein Authentication Business 17

19 Development of Cash Management Business in the US ~ Expanding Business Area Utilizing Cash Handling Technologies, which are our strength ~ Retail stores in the US Needs of re-examining cash management costs High interest in installing self-service and solutions Starting development of cash management solution Business Circumstances for the 1st Half Frontline of retail stores:expanding product portfolio by developing Cash Box Module(CBM) Micro Self Service(MSS). Back Office:Starting business for cash management systems. Measures and Prospects for the Future Promoting automation and efficiency by unified management of data and cash. Expanding business to cash management solution including store s frontline and back office. 18

20 Circumstances of Business in China Circumstances of Chinese ATM Market and Our Business Mainly developing cash handling unit business for ATM The ATM market expanded at high speed due to economic development. Our business also expanded due to needs in corresponding to bank note serial number reading. Circumstances changed from FY2015 Escalation of price competition due to aggressive adoption of domestic products. Banks reducing investments from unclearness in future of Chinese economy. Sales in China are expected to decrease in FY2016 due to escalation of price competition and so on. Measures and Prospects for the Future Promoting sales of cash handling units for ATM which the delivery has been extended. Focusing on expansion of small-sized ATM for rural part. Expanding cash handling unit business to high-speed bank note acceptor, TCR and exchange machine. Steady promotion of public transit (subway) ticket vending machine. (Operating at 60 lines) 19

21 Enhancement of IoT Sensor Solution Overview Providing sensor platform on Fujitsu cloud. Supporting realization of new added value utilizing information from sensors such as RFID, beacon, and other sensors on business systems, at low cost and short term What the Solution Can Do Management of goods (goods, documents, uniforms, etc.) Management of people (customers, employees, laborers, etc.) Noticing information (products, locations, facilities discount tickets, etc.) Merits Enabling easy connection to RFID and sensors and collecting information by utilizing sensor platform Enabling load sharing of cloud and enhancement of edge terminal s processes by utilizing sensor platform Improvement of customers presence by cooperating with smartphone (push delivery) Image 20

22 Expansion of Palm Vein Authentication Business Overview Providing integrated authentication service on Fujitsu s cloud, by developing palm vein authentications business. Totally supporting various verifications, such as biological, seal, personal number card, FIDO, etc. What the Solution Can Do Safe and secure verification (Palm vein authentication, FIDO authentication, public personal authentication) High convenience (Cardless authentication, smartphone authentication) Flexible correspondence by usage scenes (different usage by scenes, combination of authentications) Merits Enabling unified management of various authentications such as FIDO Enabling quick installation and management, and operation of biological information by customers are unnecessary Enabling smooth change from verifications using objects (seals, cards, etc.) to biometric authentications Image 21

23 <Notes Regarding Forward-Looking Statements> This material contains certain statements about projections and forecasts for the future plans, strategies, and performance based on assumptions made using information available to Fujitsu Frontech at that time. In addition, this material contains various risks and uncertainties (including economic trend, fierce competitions in the related industries, market demands, foreign exchange rates, tax rules and other regulations). Accordingly, please be informed that the actual results may materially differ from the forecasts made by the Company. <Trademark> The proper nouns herein including product names are the trademarks or registered trademarks of the respective companies. 22

24