March 2006 Settlement Detailed Discussion

Transcription

1 March 6 Settlement Detailed Discussion May 9, 6 COMSYS Holdings Corporation

2 Contents. Consolidated Statements of Income (Compared with Previous Term) (Reference) Consolidated Statements of Income by Group Company. Consolidated Statements of Income (Compared with Plan). Net Sales by Business Segment 4. Cost Reductions via Operational Efficiency Measures, including Operational Integration. Consolidated Balance Sheets 6. Consolidated Cash Flows. Changes in Main Financial Indicators (COMSYS HD and Non-consolidated for Nippon COMSYS) 8. Reference: Breakdown of Nippon COMSYS Settlement (Non-consolidated and Consolidated)

3 . Consolidated Statements of Income (Compared with Previous Term) ( million) Net Sales Cost of Sales Mar. * ( mos.) ( mos.) (a),96,896,,4 Mar. 6 (b),4,6 (b)-(a) (c) 8 % (c)/(a) 6.% 6.% Details NTT (4: Access 49, NW ), DoCoMo (4), NCC (6), Construction, etc. (-) Cost of sales ratio (88. % 88. ; -. percentage pt) Gross Profits % Gross profit margin (.8 %.%; +. percentage pt) Selling, General and Administrative Expenses Operating Income %.6% Consolidation of Kokusai Densetsu Co., Ltd., etc. () Operating income margin (4.8%. %; +. percentage pt Other income Other Expenses Recurring profit % -4.% 6.8% Amortization of consolidation adjustments for Kokusai Densetsu Co., Ltd. (), Ex gain (), Dividend income, etc. (-) Interest expenses (-) Recurring profit margin (. % 6. %; +.6 percentage pt) Extraordinary Income 6 8.% Mar. : Gain on sales of fixed assets (4), Gain on sale of investment securities (), Reversal on Maturities of Insurance Premiums () Mar. 6: Gain on sales of fixed assets (), Gain on sale of investment securities (), Reversal on Maturities of Insurance Premiums, Discontinuance of retirement pension (; Sanwa Denshi Co., Ltd) Extraordinary Loss % Mar. : Allowance for overseas doubtful receivables, etc. (), Gain on transfer of substitutional portion of contributory pension plan, etc. (8), Impairment loss (4), Loss on write-down of investment securities (), Loss on disposal of property and equipment (8) Mar. 6: Allowance for doubtful receivables (), incl. (9) for Heisei Denden), Gain on transfer of substitutional portion of contributory pension plan, etc. ), Loss on disposal of property and equipment (6), Bad debt loss () Net Income 8.% Net profit margin (. %. %, +.6 percentage pt) Note : With regard to the previous fiscal period results, figures for consolidated subsidiary Nippon COMSYS are for a -month (January-December ) period. Note : Figures are rounded down to the nearest million yen.

4 (Reference) Consolidated Statements of Income by Group Companies COMSYS-G SANCOM-G TOSYS-G ( million) Mar. ( mos.) Mar. 6 Mar. Mar. 6 Mar. Mar. 6 Net Sales,, NCC 8 N 9 NTT 9 NCC Cost of Sales,98, Gross Profits Selling, General and Administrative Expenses (.%) 4 (.4%) (8.%) (8.%) 48 (.9%) (.8%) 4 - Operating Income (.6%) 4 (6.%) 44 (.%) 4 (.%) 9 (.%) 9 (.%) -4 Other Income - Other Expenses - Recurring Profit (6.%) 4 (.%) 66 (.%) 4 (.%) 9 (.9%) (.%) 6-4 Extraordinary Income 4-9 Extraordinary Loss Net Income (Expenses) (.9%) 86 (.8%) 9 4 () - (.%) 8 (.9%) (.8%) - Note : With regard to the previous fiscal period results for the COMSYS Group, figures for consolidated subsidiary Nippon COMSYS are for a -month (January-December ) period. Note : Figures in parenthesis refer to net profit margins Note : Net sales in brackets refer to actual results of business transfers conducted between Nippon COMSYS and SANCOM.

5 . Consolidated Statements of Income (Compared with Plan) Net Sales Plan (Nov., ) (a), Actual (b),4 (b)-(a) 4 Details NTT(: Access, Network 4), DoCoMo (48), NCC (68) IT Solutions (-4), Electrical Engineering (-6) ( million) Cost of Sales Gross Profits Selling, General and Administrative Expenses Operating Income Other Income.% %,6 6,6.% % Cost of sales ratio ( 8. % 88. %; +. percentage pt) (Expenses associated with strengthening of engineering services and increased costs due to a decline in operational efficiency accompanied by heavy snow) Gross profit margin (. %. %; -. percentage pt) Reduction of expenses Operating income margin (. %. %) Amortization of consolidation adjustments of Kokusai Densetsu (), Foreign ex gain () Other Expenses - Decrease in interest expenses (-) Recurring Profit Extraordinary Income Extraordinary Loss Net Income % % % % 8 8 Recurring profit margin (6. % 6. %; +. percentage pt) Gain on sale of investment securities (), Gain on sales of fixed assets () Allowance for doubtful receivables ( for Heisei Denden) Net profit margin (.%.%; +. percentage pt)

6 . Net Sales by Business Segment ( million) Company COMSYS-G SANCOM-G TOSYS-G Business Mar. 6 vs previous term ( mos. basis) Mar. 6 vs previous term Mar. 6 vs previous term NTT Information Telecommunications Engineering, Electrical Telecommunications Engineering IT Solutions Social System-related Total, ( million) Business Company Nippon COMSYS Non-consolidated Mar. Mar. 6 TOSYS Non-consolidated Mar. Mar. 6 NTT Information Telecommunications Engineering Access Network Mobile Subtotal,9,

7 4. Cost Reductions via Operational Efficiency Measures, including Operational Integration Item Personnel Reduced Amount and Achievement Ratio (% of Achievement) % % - 8 mn - mn (%) Period Target -6 - Key Measures ( million) Promotion of early retirement via generous retirement packages and revision of pension system Streamlining workforce allocation via business reorganization Materials -. bn -. bn (%) -9-9 Implementation of volume discounts via bulk procurement of materials Augmenting personnel in charge of price negotiation and stringent selection of suppliers Outsourcing -. bn - 4 mn (%) - -4 Revision of subcontracting contracts and operations in charge of construction companies Overhead -. bn (6.9%) [- 6 mn - - Elimination of expenses via expanding outsourcing of shared operations Elimination of debt via expansion of CMS Integration of internal system Total - 4. bn -.4 bn (%) -8-4 Note : Figures in brackets represent the effect of operational efficiency achieved through management integration, including operational consolidation. Note : Figures in parenthesis refer to the percentage of achievement versus plan targets.

8 . Consolidated Balance Sheets,86 Assets + ( million), Liabilities and Shareholders Equity,86 + ( million), +6 Current Assets,4 +9 Cash and cash equivalents Notes and accounts receivable--trade Accumulated cost of construction in progress Other , Current Liabilities 68 Long-term Liabilities 88 Accounts payable--trade Advances received on construction in progress Income taxes payable - Long-term debt Consolidation adjustments account Fixed Assets Investment securities Loans receivable Shareholders Equity,8 +9 Retained earnings Unrealized gain on securities +4 +, March, March, 6 March, March, 6

9 6. Consolidated Cash Flows +9 - Operating Activities Investing Activities Acquisitions of property and equipment -4 Increase in long-term loans -4-6 Financing Activities Dividends -4 Decreases in debt - ( million) 8 Beginning of Year Income before income taxes and Other Adjustments to Net Income 64 Depreciation and amortization 9 Adjustments to Net Income - Income taxes million End of Year (March, ) (March, 6) Cash Flow Indicators Free Cash Flow: 4. billion Years to Debt Repayment:. years Interest Coverage (times): 9.8

10 . Changes in Main Financial Indicators (COMSYS HD and Non-consolidated for Nippon COMSYS) Stability [COMSYS HD] ROE/ROA [COMSYS HD] (%) 6 Equity Ratio Interest-Bearing Debt 8 (%) 6 6. (+.9).6 ROE ( x x (+.) (-) Net Profit Margin (% ). Financial leverage (total assets/shareholders' equity ) (times). Turnover of Total Assets (times)..4 ROA (x) Mar. Mar. 6 Mar. Mar. 6 Mar. Mar. 6 Stock-related Indicators [COMSYS HD] Cost Efficiency [Nippon COMSYS Non-consolidated] [Mar. 6] 4. times PER EPS PBR BPS <Price/Earnings Ratio> <Primary Earning per Share> <Price/Book Value Ratio> <Book Value per Share> ( 8). times 96 Common Stock Price <March >,68 Foreignheld (%) (%) <March > 8.9% (%) <Ratio of Expenses to Cost of Sales and Breakdown> Points Outsourcing [Mar. ].4 times 8. times 9 ( 48) Note: Figures in parenthesis exclude consolidation adjustment account %. Materials expenses ratio Personnnel expenses ratio-.. Other expenses ratio +. Mar. Mar. 6 (*Includes Information Systems business costs)

11 8. Reference: Breakdown of Nippon COMSYS Settlement (Non-consolidated and Consolidated) ( million) Nippon COMSYS Mar. (a) COMSYS-G Mar.6 (b) (b)-(a) Details Nippon COMSYS Mar. (c) COMSYS-G Mar. 6 (d) (d)-(c) Details Net Sales,99, COMSYS Tsusan (), Taiei Seisakusho (), COMSYS Business Service (, Nitto Tsuken (), Chuo. C (), Other (),,6 84 COMSYS Tsusan (6), Taiei Seisakusho (4), COMSYS Business Service (), Nitto Tsuken (), Other () Cost of Sales,86,98 9,944,69 Gross Profits 4 4 Tokyo Tsuken (), COMSYS Tsusan (), Nitto Tsuken (6), OT Engineering (), Other (6) 9 9 Tokyo Tsuken (), COMSYS Tsusan (), Nitto Tsuken (), OT Engineering (4), Taiei Seisakusho (), Other () [Gross Profit Margin].%.%.%.4% Selling, General and Administrative Expenses COMSYS Tsusan (), Tokyo Tsuken (6), Other() 6 4 COMSYS Tsusan (), Tokyo Tsuken (), Consolidation of Kokusai Densetsu, etc. () Operating Income [Operating Income Margin] 4.9%.6% 4.9% 6.% Other Income 8 Amortization of consolidation adjustments 6 Amortization of consolidation adjustments Other Expenses Recurring Profit 4 4 Tokyo Tsuken : share acquisition (8) Nitto Tsuken: share acquisition (4) Other: () 66 Tokyo Tsuken: share acquisition (8) Nitto Tsuken: share acquisition () Consolidation of Kokusai Densetsu Co., Ltd., etc. () [Recurring Profit Margin].% 6.%.%.% Note: With regard to the previous fiscal period results for the COMSYS Group, figures for consolidated subsidiary Nippon COMSYS are for a -month (January-December ) period..