Slide 1: FY2016 1H Consolidated Financial Results
FY2016 1H Consolidated Financial Results （Six month ended June 30. 2016) August 10, 2016 EPCO CO., LTD.
Slide 2: Part 1 Description of FY2016 1H Results
2 Part 1 Description of FY2016 1H Results
Slide 3: Consolidated Results for FY2016 1H
Consolidated Results for FY2016 1H 1 ■ Both sales and profits grew steadily, exceeding the initial plans. (Units:Million JPY) FY2016 1H Consolidated FY2015 1H Vs. forecast Vs. FY2015 1H Financial Results Result Forecast Result Change Change Change Change (%) (%) Net Sales 1,460 1,491 1,600 +109 +7.3
Slide 4: Effects on earnings of selection as a participant in subsidized projects
Effects on earnings of selection as a participant in subsidized projects 2 ■ The incurrence of costs and the receipt of subsidies ended on March 31, 2016. [General overview of costs incurred and subsidies received for all the subsidized projects] [Effects on earnings for IH of the fiscal year under
Slide 5: Year-on-Year Changes in Ordinary Income by Segment
Year-on-Year Changes in Ordinary Income by Segment 3 ■ Earnings in all segments improved steadily. [Energy Business: Quarterly changes in ordinary loss] FY2015 FY2015 FY2015 FY2015 FY2016 FY2016 1Q 2Q 3Q 4Q 1Q 2Q ■ FY2015 1H Result 0 ■ FY2016 1H Result -50 -57 (Units:Million JPY) ð Breakdown by segm
Slide 6: Overview of Earnings by Segment (1) Design Consulting Business
Overview of Earnings by Segment (1) Design Consulting Business 44 Vs. FY2015 1H (Units:Million JPY) - New home construction market in 1H: +5.4% year 1,200 Net sales Ordinary Income 600 on year (please refer to page 23 for more details) Net Sales 996 +82M 1,078 External - Exchange rate: The yen was s
Slide 7: Overview of Earnings by Segment (2) Customer Support Business
Overview of Earnings by Segment (2) Customer Support Business ６5 Vs. FY2015 1H (Units:Million JPY) - Because the Customer Support Business provides service for housing stock, increases or Net Sales 500 Ordinary Income Net sales decreases in new home construction had no External +22M impact. 406 envi
Slide 8: Overview of Earnings by Segment (3) Smart Energy Business
Overview of Earnings by Segment (3) Smart Energy Business ７6 Vs. FY2015 1H (Units:Million JPY) 売上高 Net sales 経常利益 Ordinary income The liberalization of retail electric power for homes 150 116 commenced in April 2016, and demand for services 80 Net sales External 100 +36M related to electric power fo
Slide 9: Revision to Forecast for Fiscal Year 2016
Revision to Forecast for Fiscal Year 2016 7 ■ The forecast has been revised to reflect excess amounts above the forecasts in 1H. (Units Million JPY) Consolidated Financial Operating Ordinary Net Income Net Sales Net Income Results Income Income per Share Previous Forecast (A) 3,105 -87 224 131 ¥29.5
Slide 10: EPCO's Shareholder Return Policy
EPCO’s Shareholder Return Policy 8 ■ Purchase of treasury stock From March 15, 2016 to June 30, 2016, the Company purchased treasury stock. An outline of the purchase is as follows. ・Number of shares purchased: 12,600 (acquisition price: 13 million yen) (For reference) Treasury stock as of June 30,
Slide 11: Part 2 EPCO's Business Strategy in the Medium to Long Term
11 Part 2 EPCO’s Business Strategy in the Medium to Long Term
Slide 12: EPCO's Businesses
EPCO’s Businesses 10 EPCO will pursue its business models with a focus on housing to achieve further growth. Model for connecting a flow business to a stock business Design Consulting Business Customer Support Business Service of designing housing 24-hour, 365-day call center equipment, including se
Slide 13: Image of Growth by Business in the Medium to Long Term
Image of Growth by Business in the Medium to Long Term 11 Factors for growth Energy-saving service: Development of operations in collaboration with housing companies and electricity retail companies Design service: Expansion of equipment design associated with the introduction of ZEH by housing comp
Slide 14: Performance in the Design Consulting Business
Performance in the Design Consulting Business 12 The strengths of the Company’s design service are its system and ability to execute equipment design, installation estimates, and the preparation of prefabrication drawings for components in an integrated manner in accordance with regional characteris
Slide 15: New Service in the Design Consulting Business
New Service in the Design Consulting Business 13 BPO for major housing companies In anticipation of a decline in demand for new home construction, housing companies are tending to outsource operations except the core business. EPCO’s BPO service using its Okinawa design base is expanding. Sales Desi
Slide 16: Service Growth in the Medium Term in the Design Consulting Business
Service Growth in the Medium Term in the Design Consulting Business 14 Equipment design service for ZEH The government’s policy is to make more than half of new homes net zero energy houses (ZEH) by 2020. Major housing companies are taking the lead in building ZEH, and EPCO is working to expand the
Slide 17: Performance in the Customer Support Business
Performance in the Customer Support Business 15 The strengths of the Company’s customer service are its system and ability to receive orders for after-sales maintenance for homes from customers nationwide 24 hours a day, every day, and the fact that it has 23,000 maintenance companies nationwide ava
Slide 18: New Service in Customer Support
New Service in Customer Support 16 Integrated customer support service for major housing companies In anticipation of a decline in demand for new home construction, housing companies are expanding the after-sales services for their home improvement business (their own properties and the properties o
Slide 19: Service Growth in the Medium Term in the Customer Support Business
Service Growth in the Medium Term in the Customer Support Business 17 Customer support service for energy-saving home improvement EPCO is expanding its stock business by developing energy-saving home improvement operations in cooperation with housing companies and electricity retail companies, makin
Slide 20: Progress of Electricity Deregulation
Progress of Electricity Deregulation 18 l Advantageous rates are communicated to households that use large amounts of electricity. Rate plan l Less than 10% of all households can reduce their rates. l Just under 2% of households will conclude contracts with new electric power providers. Electricity
Slide 21: Outline of Services in the Electricity Service Business
Outline of Services in the Electricity Service Business 19 Energy-saving home improvement package Reductions in electricity rates in rate plans are limited. EPCO will save energy to reduce electricity and gas rates overall. Using its customer database, EPCO will provide energy-saving home improvemen
Slide 22: Medium- to Long-Term Roadmap for the Electricity Service Business
Medium- to Long-Term Roadmap for the Electricity Service Business 20 (1) From FY2017, EPCO will install energy-saving home improvement in cooperation with housing companies and electricity retail companies. (2) From FY2019, EPCO will install storage batteries for energy saving in homes where FIT wil
Slide 23: Reference materials
Reference materials | Energy Plan Company
Slide 24: Sales by Segment
Sales by Segment 22 ■ Sales exceeded the year-ago level and the forecast in all segments. (Units:Million JPY) FY2015 FY2016 Vs. FY2016 FY2015 Vs. Segment 1H 1H FY2015 1H Full-Year Forecast Result Result 1H Forecast Result Design Consulting 996 1,078 +8.2% 1,015 +6.2% 2,174 Waterworks Equipment Desig
Slide 25: Changes in New Home Construction and Design Commissions
Changes in New Home Construction and Design Commissions 23 Changes in New Low-Rise Home Changes in New Low-Rise Home Construction (*1) Construction By Quarter (Unit: Homes) (Unit: Homes) 14年 Jul 7月～15 2014-Jun 年6月 2015 15年 Jul 7月～16 2015-Jun 年6月 2016 By Period Jul 2014- Jul 2015- 70,000 Change Jun 2
Slide 26: Changes in the Scope of Segments
Changes in the Scope of Segments 24 ■ The accounting scope of segments has been changed, and the new scope is applied from FY2016. (Before change) Segment information for FY2015 Design (Millions of yen) Smart Energy Customer Support Consulting Net Sales 1,949 439 742 Operating Income 577 -691 227 Ch
Slide 27: Participation in Large-Scale HEMS Information Infrastructure Project
Participation in Large-Scale HEMS Information Infrastructure Project 25 [Purposes] (1) Installing HEMS equipment and testing technology (including collecting and analyzing electric power data) ð Expertise is accumulated. (2) Testing service using HEMS data for home use ð Service is limited. (3) Cons
Slide 28: Participation in Renewable Energy Local Production for Local Consumption Promotion Project
Participation in Renewable Energy Local Production for 28 26 Local Consumption Promotion Project in the Entire Region [Purposes] (1) Improving business profitability by overcoming the instability of renewable energy supply through supply and demand adjustments using storage batteries ð Examining the
Slide 29: Participation in a Feasibility Study on a Smart Community in Naha City
Participation in a Feasibility Study on a Local Production for 27 2912 9 Local Consumption-Type Smart Community in Naha City [Purposes] A feasibility study on a power retailing project where a local government is involved and a local gas company and a local consumer cooperative participate ð Accumul
Slide 30: Caution
Caution The forward-looking statements in this document, including forecasts, are based on information that the Company has obtained and certain assumptions that the Company considers reasonable. Actual results may differ significantly due to a number of factors. The Company does not guarantee their