Cac Holdings Corporation · TSE:4725
Cac — FY2018 Earnings Presentation
25 slides from Cac's earnings presentation, Feb 14, 2019
Slide 1: Briefing on Results for Fiscal Year 2018
Briefing on Results for Fiscal Year 2018 —January to December 2018 — February 14, 2019 CAC Holdings Corporation
Slide 2: Agenda
Agenda I. Overview of Financial Results for FY2018 Il. Medium-Term Strategy and Plans for FY2019 II. Results Forecasts for FY2019 and Return to Shareholders © 2019 CAC Holdings Corporation 1
Slide 3: I. Overview of Financial Results for FY2018
I. Overview of Financial Results for FY2018 © 2019 CAC Holdings Corporation
Slide 4: Overview of Financial Results
[Overview of Financial Results] We announced a revised forecast as soon as an extraordinary gain emerged last December. The financial results are roughly as forecasted at that time. Net sales dropped following the business reorganization and income figures rose after a turnaround in CRO and the sell
Slide 5: SG&A expenses, operating income and non-operating items
[SG&A expenses] - SG&A expenses decreased ¥500 million. It is attributable mainly to a decrease in the expenses of the two companies that were sold off. [Operating income] - Operating income increased to twice the level reached in the preceding year, although it is still unsatisfactory. - An increas
Slide 6: Quarterly sales and operating income trend
Recent quarterly sales trend shows that sales are on a slight downward trend. Operating income is rising steadily. However, we are fully aware that this figure is still poor. For the fourth quarter, the figure exceeded ¥500 million. For 2019, we are thinking of setting a plan on the basis of generat
Slide 7: Results by new business segments
From 2018 onwards, new business segments of domestic IT, overseas IT and CRO apply. Net sales fell sharply in all three segments. Especially in overseas IT, the sale of two companies and the decline at the subsidiary in India constituted major factors. Operating income turned around and grew in all
Slide 8: Financial services and service industry sales
[Financial services] The contraction in sales from a large bank had a considerable negative impact. We have long been providing services for the overseas systems. Our services for next- generation systems peaked in 2017 and began to decline in 2018. Sales from the large bank fell to nearly half the
Slide 9: Orders received and order backlog
Orders received and the order backlog increased in overseas IT while they fell significantly in CRO. Orders received in overseas IT showed a massive leap after the subsidiary in India won a project. In the fourth quarter, it gained a project relating to governmental offices in Dubai, making a roughl
Slide 10: Pharmaceutical industry sales in CRO
In the pharmaceuticals industry, the sales slide in CRO was such that net sales from this sector dropped sharply.
Slide 11: II. Medium-Term Strategy and Plans for FY2019
I. Medium-Term Strategy and Plans for FY2019 © 2019 CAC Holdings Corporation
Slide 12: Revised medium-term strategy
After the lapse of one year under the medium-term strategy commenced in 2018, we revised this strategy with an eye towards the remaining three years. The slide shows an overview. In recognition of the challenges, the first three challenges shown have not been changed. We are fully aware of a major c
Slide 13: First year progress and 2021 targets
In 2018, as the first year under the medium-term strategy, we worked hard on expanding the business. We made a positive investment and disposed of unprofitable packages and other assets for the future. We set a target of attaining net sales of ¥70 billion and operating income of ¥4 billion for 2021.
Slide 14: Board of Directors structure for 2019
We are planning to propose two inside directors and three outside directors for 2019 to the General Meeting of Shareholders. In the Board of Directors, outside directors will have a majority. The three current directors will retire and be appointed as executive officers. The Board will be run with a
Slide 15: Reorganization into five domains
In the past structure portrayed on the left, all subsidiaries were at the same level, under the control of CAC Holdings. From this year, they will be divided into five domains. In the Core ICT domain, five IT subsidiaries in Japan and two overseas subsidiaries closely related to CAC Corporation are
Slide 16: Key actions in individual domains
This slide portrays several key actions in individual domains. The India domain is seeing fluctuations in figures. Sales declined whereas profit grew. It is working to shift from low-value businesses such as hardware sales to services. If this shift is accomplished within this year, its performance
Slide 17: Operating income targets and ROE
We will work to fulfill a target on return, the numerator in return on equity, specifically operating income, of ¥2 billion in 2019 and ¥3 or 4 billion in 2020. In parallel, we will work to curtail equity, the denominator in return on equity. Slide 19 will explain the details.
Slide 18: Shareholder value sharing program
This program is designed to step up sharing of shareholder value and to give some executives and officers an incentive to share a common direction in running businesses.
Slide 19: III. Results Forecasts for FY2019 and Return to Shareholders
Il. Results Forecasts for FY2019 and Return to Shareholders © 2019 CAC Holdings Corporation
Slide 20: FY2019 results forecast
We have set a net sales target of ¥52 billion yen and an operating income target of ¥2 billion. For a more aggressive return of profits to shareholders, we will increase dividends to 50 yen per share.
Slide 21: Dividend forecast and treasury share purchase
Earlier today, concurrently with the financial results, we announced our dividend forecast for 2019 and a purchase of treasury shares. The purchase aims to acquire three million treasury shares for the current fiscal year for two purposes. One is to heighten capital efficiency, and the other is to r
Slide 22: Reference: Major News in the Second Half of the Fiscal Year (1/2)
Reference: Major News in the Second Half of the Fiscal Year (1/2) Segment Description of Release CAC Begins Providing Automotive AI Capable of Real-time Emotion Analysis of Automobile Passengers by Emotion Recognition AI (August 1, 2018) Al CAC begins providing Automotive AI, an in-vehicle sensing A
Slide 23: Reference: Major News in the Second Half of the Fiscal Year (2/2)
Reference: Major News in the Second Half of the Fiscal Year (1/2) Description of Release 5 CAC Opens New Location, BPO Center, in Nagasaki (December 27, 2018) $ B CAC is opening Nagasaki BPO Center (provisional name) at Nagasaki BizPORT in Nagasaki City to expand its BPO 3 P |business, in or around
Slide 24: CAC Holdings Corporation
CAC Holdings Corporation CAC Group helps disseminate and develop Boccia, a sport for the disabled. Enterprise Value Up Group, Corporate Planning Division Tel: 03-6667-8010 E-mail: prir@cac.co.jp https://www.cac-holdings.com/ © 2019 CAC Holdings Corporation ago)
Slide 25: Question and Answer
Question and Answer Q. What progress has been made in your initiatives such as investment in future businesses? (e.g. progress in digital technology and perceived response to your actions) => A. We operate a business concerning artificial intelligence for emotion recognition in Japan and in China. I