1 TSE:3738 Consolidated 3Q Financial Results for FY ending March 214 February 7, 214
Disclaimer * This material contains statements about the future performance of T-Gaia, which are based on management s assumptions and beliefs taking information currently available into consideration. Therefore, please be advised that T-Gaia s actual results could differ materially from those described in these forward-looking statements as a result of numerous factors, including general economic conditions in T-Gaia s principal markets as well as other factors detailed from time to time. 2
Corporate Policy for FY ending March 214 Sales Staff Realization of Smart-phone World through Strengthening of Hand-on Approach Strengthening of Hand-on Approach Further Improvement of Customer Satisfaction Promotion of Business Restructuring With Hands Approach Back-office Staff High Quality Business Operations Maintenance & Improvement of Staff Motivation For Providing Better Smart-phone Life with Customers Provision of Settlement Function Provision of Solution Services Close Communication with Telecom Carriers Maximization of Synergy Effect among TG Group Globalization of Services Share Info. & Knowhow with our Agents as Business Partners Strengthening of Proposal for Products related to Smart-phones 3
Outline of 3Q Financial Results for FY ending March 214 4
Key Points of Interim Financial Results Net Sales :59.4 billion yen(yoy 93.7%) Operating Income:8.39 billion yen(yoy 13.6%) <Main Factors for Decreased Net Sales> Total sales volume in mobile/smart-phone market have been below expectations especially in 2Q & 3Q Decrease of our sales volume due to streamlined sales channel <Main factors for Increased Operating Income> Improvement of sales quality through continuous education of sales staff and strengthening of smart-phones & tablets sales including products & services related to them Promotion of structural reorganization such as improvement of operational efficiency including optimization of sales channel 5
Summary of 3Q Financial Results (Unit:.1 billion yen) 13/3 3Q Results 14/3 3Q Results Increase / Decrease YoY Change Net Sales 5,438.1 5,94.2 343.9 93.7% Gross Margin 492.5 457.2 35.2 92.8% (to Net Sales) 9.1% 9.% - - SGA Expenses 411.4 373.2 38.2 9.7% Operating Income 81. 83.9 2.9 13.6% (to Net Sales) 1.5% 1.6% - - Ordinary Income 79.9 83.4 3.5 14.4% (to Net Sales) 1.5% 1.6% - - Net Income 44.1 45.9 1.8 14.1% (to Net Sales).8%.9% - - 6
3Q Financial Results by Business Segment Net Sales (.1 billion yen) 6, 5, 4, <Net Sales> 5,438 922 [17. %] 23 [3.7 %] Mobile-phone Business 5,94 794 [15.6 %] 29 [4.1 %] Solution Business <Operating Income> Settlement Service Business & Others 81. 7.5 [9.3 %] 18.7 [23.2 %] 83.9 6.8 [8.2%] 21.8 [26. %] Operating Income (.1 billion yen) 1. 9. 8. 7. 6. 3, 5. 2, 1, 4,312 4,9 [79.3 %] [8.3 %] 54.7 [67.5 %] 55.2 [65.8 %] 4. 3. 2. 1. 13/3 3Q 14/3 3Q 13/3 3Q 14/3 3Q. 7
Total No. of Mobile-phones Sold Company-wide (Unit: 1 5 thousand) 4 3 2 1 <Total No. of Mobile-phones, etc. sold in 9 months until Dec. 213> 464 Smart-phone Ratio 65.9% 13/3 3Q Including WiFi model 4 Smart-phone Ratio 69.4% 14/3 3Q <Total No. of Mobile-phones of Three Major Telecom Carriers sold Company-wide & Smart-phone Ratio on Quarterly basis> ( Unit: 1 th ousand) 2 15 1 5 Sales volume have decreased due to streamlined sales channel & total sales volume in mobile/smart-phone market have been below expectations especially in 2Q & 3Q Smart-phone Ratio has risen to approx. 7% mainly because of launch of new models 8 144 31.8% No. of Smart-phones スマートフォン販売台数スマートフォン比率 Smart-phone Ratio 183 158 45.% 159 144 158 66.1% 58.5% 58.4% 55.7% No. of Feature -phones フィーチャーフォン他販売台数 161 161 131 126 141 72.6% 69.8% 69.1% 68.3% 69.9% 12/1Q 12/2Q 12/3Q 12/4Q 13/1Q 13/2Q 13/3Q 13/4Q 14/1Q 14/2Q 14/3Q 1.% 9.% 8.% 7.% 6.% 5.% 4.% 3.% 2.% 1.%.%
Mobile-phone Business Financial Results Comparison Net Sales (.1 billion yen) 5,. 4,. 3,. 2,. 1,.. 4,312 13/3 3Q 4,9 54.7 55.2 14/3 3Q Operating Income 1. 8. 6. 4. 2.. Total No. of Mobile-phones Sold in the Segment ( 万台 ) 5 4 3 2 1 4, 3, 2, 1, 13/3 3Q 14/3 3Q キャリアショップ併売店等量販店 アクセサリーショッフ 3,391 453 No. of Sales Base (1 thousand units) チャイナユニコムショッフ 385 6 4 2,781 2,52 8 Unicom Shop 1,555 Large Retail 11 4, チャイナユニコムショッフ 1,27 7 3, 1,23 95 1,55 1,22 2, 3, 12 3 3, Accessory 12 Store & GMS 1,6 1,61 1, 6 2. Shop 5535 469 1 38 871 8 871 553 Multi-carrier 12/12 13/6 469 13/12 Shop 38 末末末 1,273 Carrier Shop 1,236 1,228 12/12 末 13/6 末 13/12 末 Dec. 212 June 213 Dec. 213 Net Sales decreased mainly due to decrease of total No. of mobile-phones sold in the segment Improved sales quality through continuous education of sales staff and strengthened sales of smart-phones & tablets sales Promoted structural reorganization such as improvement of operational efficiency including optimization of sales channel 9
Mobile-phone Business: Accessory Shop Development with the brand name of Smart Labo Opened Smart Labo LovaLa2 at LoveLa2, one of the largest Shopping malls in Niigata Pref. on November 2, 213. <Smart Labo Shop List > Hiroshima Hondori (Hiroshima) Matsumoto Parco (Nagano) Yume Town Mitoyo (Kagawa) Shinsaibashi (Osaka) Okaido Central (Ehime) Chiba Parco (Chiba) Aeon Mall Natori (Miyagi) Aeon Lake Town (Saitama) LoveLa2 (Niigata) Rakuten Ichiba (Online Shop) 1
Mobile-phone Business: Accessory Shop Development with the brand name of AppBank Store August 2, 213, opened AppBank Store Shinjuku as one of the largest accessory shops for iphones in Japan in cooperation with AppBank (Store) Co., Ltd. AppBank Store is registered trademark of AppBank (Store) Co., Ltd. Dec. 13, 213, opened AppBank Store Harajuku at Takeshita-dori, the world s fashion center 11
Solution Business Financial Results Comparison 2. 15. 1. Net Income (.1 billion yen) 25. 5. 23 29 18.7 21.8 Operating Income 4. 3. 2. 1. Total No. of Mobile-phones Sold in the Segment ( 1 thousand) 2. 15. 1. 5.. 1.9 13/3 3Q 15.6 14/3 3Q Total No. of lines subscribing for movinostar service 1 thousand) 4. 3. 2. 32. 33.6 Including WiFi models 36.. 13/3 期 3Q 累計 14/3 期 3Q 累計. 1.. Dec. 212 June 213 Dec. 213 Increase of sales volume of mobile-phones for corporate clients and subscription for various solution service such as kitting & Mobile Device Mgmt. contributed to growth of both net sales & operating income. 12
Settlement Service & Other Business incl. Overseas Business Financial Results Comparison Total No. of convenience stores dealing PIN/Gift Card PIN Gift Card Net Sales (.1 billion 1,. yen) 8. 922 794 Operating Income 15. 5, 25, Approx. 44,5 Approx. 19, Approx. 46,6 Approx. 19,5 Approx. 47,6 Approx. 21,2 6. 4. 7.5 6.8 1. 5. Dec. 212 June 213 Dec. 213 China Unicom Shop 2... 13/3 3Q 14/3 3Q Operating Income decreased mainly due to investment in mobile-phone distribution business in Chaina especially to open new mobile shops though income from Settlement Service Business alone stayed at the same level as the 3Q in the previous fiscal year. November 213, opened the twelfth China Unicom Shop in Shanghai 13
Results for FY ending March 214 14
Revised Consolidated Forecasts for FY ending March 214 (Unit:.1 billion yen) 14/3 Initial Forecasts 14/3 Revised Forecasts YoY basis (%) Net Sales 7,25. 7,1. 15. Operating Income 141. 128. 13. Ordinary Income 138. 127. 11. Net Income 77.5 7. 7.5 Net Income/Share (yen) 98.14 88.65 9.49 No. of Mobile-phones to Sell 6 56 4 (1 thousand units) 15
Revised Consolidated Forecasts for all TG Group Financial Results Comparison Net Sales (.1 billion yen) 8 7 6 5 4 3 2 1 7,368 118 7,1 128 Operating Income (.1 billion yen) 2 18 16 14 12 1 8 6 4 2 No. of Mobile-phones to Sell (1 thousand units) 7 6 5 4 3 2 1 625 56 13/3 Results 14/3 Forecasts 13/3 Results 14/3 Forecasts 16
Return to Shareholders: Dividend Policy Basic Dividend Policy Targeting and maintaining Dividend Payout Ratio over 3% Level ( 円 ) Net Income per Share(After-split basis) 12 1 92.76 77.11 79.39 8 73.71 62.54 61.14 6 53.52 45.28 4 2 82.77 88.65yen Dividend per Share & Payout Ratio (After-split basis) 8 7 6 5 4 3 2 1 ( 円 ) 5.% 22.5 35.% 36.% 18.75 22.5 4.9% 25. Memorial dividend 記念配当 Dividend / share (yen) 一株当たり配当額 ( 円 ) 配当性向 (%) *Payout Ratio 35.7% 37.8% 37.3% 27.5 3. 27.5 35.% 32.5 42.3% 39.5% 35. 35. 5.% 4.% 3.% 2.% 1.% 5/3 期 6/3 期 7/3 期 8/3 期 9/3 期 1/3 期 11/3 期 12/3 期 13/3 期 14/3 期 ( 予想 ) (E) Amount for 214/3 (Forecast) is calculated based on the average number of shares outstanding during the period. 5/3 期 6/3 期 7/3 期 8/3 期 9/3 期 1/3 期 11/3 期 12/3 期 13/3 期 14/3 期 ( 予想 ) Dividend Payout Ratio for 214/3 (Forecast) is calculated based on the average number of shares outstanding during the period..% (E) Year-end Dividend per Share for FY ending March 214(Forecast ) 35 yen/share(interim dividend:17.5 yen / Year-end dividend :17.5 yen) Same level as the annual dividend in the FY ended March 213 17
Acquisition of Own Stock & Public Tender Offer As described in the Announcement of Own Stock and Public Tender Offer as of January 31, 214, we have made a public tender offer for own stock from February 3. Classes of Shares to be Acquired : Common Stock of the Company Projected No. of Shares to be Acquired : 1,4, shares (13.17% of outstanding shares) Offer Price per Share : 85 yen Total Acquisition Price : 8,84 million yen Duration of Public Tender : Offer : From Feb. 3 until March 3, 214 18