Cac Holdings Corporation · TSE:4725
Cac — FY2017 Earnings Presentation
32 slides from Cac's earnings presentation, Feb 14, 2018
Slide 1: Briefing on Results for Fiscal Year 2017
Briefing on Results for Fiscal Year 2017 －January to December 2017－ February 14, 2018 © 2018 CAC Holdings Corporation
Slide 2: I. Overview of Financial Results for FY2017 II. Results Forecasts for FY2018 III. Overview
I. Overview of Financial Results for FY2017 II. Results Forecasts for FY2018 III. Overview of Medium-Term Strategy (Determination 21) © 2018 CAC Holdings Corporation
Slide 3: I. Overview of Financial Results for FY2017
I. Overview of Financial Results for FY2017 © 2018 CAC Holdings Corporation
Slide 4: Overview of Consolidated Results (Year on Year)
Overview of Consolidated Results (Year on Year) Unit：million yen YoY Change FY2016 FY2017 Amount % Net sales 52,521 53,268 747 +1.4% Gross profit 10,479 10,272 (207) (2.0%) (profit margin) 20.0% 19.3% (0.7pt) SG & A 9,277 9,573 295 +3.2% Operating income 1,202 698 (503) (41.9%) (profit margin) 2.3%
Slide 5: Comparison of Full-Year Results Forecasts
Comparison of Full-Year Results Forecasts Unit: million Yen FY2017 FY2017 vs Initial VS Initial Forecasts % Results Forcasts Forecasts Forecasts Revised Net sales 53,000 53,268 +268 100.5% 54,000 (732) Operating income 600 698 +98 116.4% 1,800 (1,102) (profit margin) 1.1% 1.3% 3.3% Ordinary income 5
Slide 6: Operating Income: Differences from Initial Forecast
Operating Income: Differences from Initial Forecast © 2018 CAC Holdings Corporation 5
Slide 7: Distribution of Net Sales and Operating Income
Distribution of Net Sales and Operating Income Overseas IT Domestic IT (including CAC) Sales: 11.7 billion (+473 million) Sales: 30.3 billion (▲159 million) Income: ▲532 million (▲450 million) Income: 861 million (▲220 million) CRO Sales: 11.2 billion (+433 million) Income: 368 million (+168 million
Slide 8: Net Sales and Operating Income by Service (Consolidated)
Net Sales and Operating Income by Service (Consolidated) Unit: million yen Net sales FY2016 FY2017 YoY Change Amount vs Total Amount vs Total Amount % Systems Development 22,764 43.3% 22,060 41.4% (703) (3.1%) and Integration Systems Operation 17,950 34.2% 18,879 35.4% +928 +5.2% and Management BPO/
Slide 9: Net Sales by Industry (Consolidated)
Net Sales by Industry (Consolidated) Unit: million yen FY2016 FY2017 YoY Change Amount vs Total Amount vs Total Amount % Financial services 7,224 13.8% 7,253 13.6% +28 +0.4% Trust banks 4,237 8.1% 4,060 7.6% (176) (4.2%) Phamaceuticals 17,067 32.5% 16,268 30.5% (799) (4.7%) Food services 3,853 7.3%
Slide 10: Orders and Order Backlog (Consolidated)
Orders and Order Backlog (Consolidated) Orders Unit: million yen YoY FY2016 FY2017 Amount % Systems Development 22,017 20,884 (1,132) (5.1%) and Integration Systems Operation 17,739 18,686 +947 +5.3% and Management BPO/BTO 11,171 12,576 +1,404 +12.6% Finacial services 6,697 7,037 +339 +5.1% Trust ba
Slide 11: Consolidated Balance Sheets (B/S)
Consolidated Balance Sheets (B/S) Unit: million yen As of As of December 31 December 31 YoY Main factor 2016 2017 Current assets 26,468 24,084 (2,383) Cash and deposits Non-current assets 23,876 30,041 +6,165 Property, plant and equipment 1,731 1,392 (338) Intangible assets 4,736 3,871 (864) Goodwil
Slide 12: II. Results Forecasts for FY2018
II. Results Forecasts for FY2018 © 2018 CAC Holdings Corporation
Slide 13: Review of the Previous Medium-Term Strategy
Review of the Previous Medium-Term Strategy （Unit: Billion Yen） Net sales (left) Mid-term Strategy 2015-2017 Operating Income (right) ■Factors for stagnant income ➩ Poor performance of areas of focus (overseas and CRO) 2015 - 2016 Overseas business: Write-off of doubtful accounts receivable at a sub
Slide 14: Results Forecasts for FY2018
Results Forecasts for FY2018 Unit: million yen FY2017 FY2018 YoY Results Forecasts % Net sales 53,268 54,000 +1.4% Operating income 698 1,600 +129.1% (profit margin) 1.3% 3.0% Ordinary income 717 1,500 +108.9% (profit margin) 1.3% 2.8% Net income 1,100 1,100 (0.0%) (profit margin) 2.1% 2.0% Dividend
Slide 15: Points for Improvement of Business Performance
Points for Improvement of Business Performance ・An increase in opportunities to receive orders Domestic IT associated with a new digital shift business ・Strengthened project management Overseas IT ・Separation of unprofitable businesses business ・Capturing of local demand CRO ・Comprehensive cost redu
Slide 16: III. Overview of Medium-Term Strategy (Determination 21)
III. Overview of Medium-Term Strategy (Determination 21) © 2018 CAC Holdings Corporation
Slide 17: Overview of New Medium-Term Strategy
Overview of New Medium-Term Strategy Recognition of challenges ・Rapid expansion and penetration of digital transformation ・Formation of the borderless and seamless global market ・Old-fashioned system integrators and outsourcers are likely to be eliminated Aiming to develop into a corporate group tha
Slide 18: Numerical Targets
Numerical Targets FY2021：Net sales 70 billion operatiing income 4 billion （Unit: Billion yen） Net sales (Left） Operatiing Income (right） © 2018 CAC Holdings Corporation 17
Slide 19: Numerical Targets
Numerical Targets Existing New businesses businesses Net sales: 50 billion Net sales: 20 billion Operating income: Operating income: 2.5 billion 1.5 billion © 2018 CAC Holdings Corporation 18
Slide 20: Initiative 1: Improvement of Earnings Power in Existing Businesses
Initiative 1: Improvement of Earnings Power in Existing Businesses Domestic IT business Overseas IT business CRO business ・New digital shift ・Expansion of peripheral ・Focus on India and businesses ・Reverse innovation China ・Full-fledged operation in India and China ・Expansion of business ・Business r
Slide 21: Initiative 2: Creation and Expansion of New Business Domains
Initiative 2: Creation and Expansion of New Business Domains Investment in and M&A with companies that are expected to grow Nursing care New digital Agriculture Asia Inbound tourism Aim to record net sales of ¥20 billion and operating income of ¥1.5 billion by FY2021 © 2018 CAC Holdings Corporation
Slide 22: Examples: Creation and Expansion of New Business Domains
Examples: Creation and Expansion of New Business Domains Medical tourism Inbound services Emotion recognition AI Film Farming Jibo © 2018 CAC Holdings Corporation 21
Slide 23: Initiative 3: Strengthening and Revitalizing of the Group
Initiative 3: Strengthening and Revitalizing of the Group Joint education of future human resources Overhaul of management Strategic accounting personnel rotation Measures to Introduction increase of a new corporate evaluation presence system © 2018 CAC Holdings Corporation 22
Slide 24: Appendix: Initiatives and Major News in the Second Half of FY2017
Appendix: Initiatives and Major News in the Second Half of FY2017 © 2018 CAC Holdings Corporation
Slide 25: Acquisition of New Technologies and New Business Domains: Blockchain
Acquisition of New Technologies and New Business Domains Commencement of services using blockchain ・Cooperation with Toppan Printing ・Launched a demonstration experiment service that combines blockchain, AI and IoT ・Rolled out to other sectors in addition to financial institutions P2P Insurance: A t
Slide 26: Emotional-recognition AI: Kokoro Sensor
Acquisition of New Technologies and New Business Domains Emotional-recognition AI: Began providing Kokoro Sensor, a video analysis service ・A video analysis service that is able to convert emotions into numerical data by analyzing the emotions of people appearing in video using emotion recognition A
Slide 27: Initiation of CVC fund for domestic companies
Acquisition of New Technologies and New Business Domains Initiation of CVC fund for domestic companies ・Initiated a standalone corporate venture capital fund that we operate on our own. The total amount of funds under management is planned to be ¥3 billion (maximum). ・Endeavor to create new business
Slide 28: Strengthening of the Global Collaboration System
Strengthening of the Global Collaboration System Entry into the advanced drive-assistance system (ADAS) area based on cooperation between Japan and India ・Develop ADAS projects in Japan based on cooperation between CAC and AFL with a proven record in ADAS in India. ・Expand business by increasing the
Slide 29: CSR Activities
CSR Activities Activities for the dissemination and support of Boccia, a sport for the disabled ・ Have supported Boccia since 2016 as part of our social contribution. ・ Held the first CAC Cup, a friendly Boccia competition for students. ・ Implemented a Boccia equipment donation project. Donated Bocc
Slide 30: Major News in the Second Half (1/2)
Major News in the Second Half (1/2) July 18, Established the CAC Special Award with an investment fund of 2017 ¥50 million in the Startup World Cup 2018 – Selected one company from the finalists in the Japan preliminary round. CAC Holdings established the CAC Special Award in the Japan preliminary r
Slide 31: Major News in the Second Half (2/2)
Major News in the Second Half (2/2) September CAC Group hosted the first CAC Cup, a friendly competition of 30, 2017 Boccia, a sport for the disabled, for students. For the purpose of further disseminating and supporting Boccia, a sport for the disabled, which CAC Group has implemented since 2016 as
Slide 32: CAC Group helps disseminate and develop Boccia
CAC Group helps disseminate and develop Boccia, a sport for the disabled. Corporate Planning Division, Enterprise Value Up Group TEL: 03-6667-8010 E-mail: prir@cac.co.jp https://www.cac-holdings.com/ © 2018 CAC Holdings Corporation 31