Mirait One Corporation · TSE:1417
Mirait One — MIRAIT Holdings — Investor Presentation (January 2015)
50 slides from Mirait One's investor presentation, Jan 30, 2015
Slide 1: Presentation Materials
Presentation Materials January 2015 MIRAIT Holdings Corporation
Slide 2: Table of Contents
Table of Contents I. Profile of the MIRAIT Group IV. Specific Measures in Each Business 1. Message from the President 3 1. Efforts in the NTT Business 16-17 2. Overview of MIRAIT Holdings 4 2. Efforts in the Multi-carrier Business 18 3. Efforts in the Environmental & Social Innovation and ICT Soluti
Slide 3: I. Profile of the MIRAIT Group
I. Profile of the MIRAIT Group
Slide 4: 1. Message from the President
1. Message from the President In Japan today, new growing markets have been created along with the social innovation which has been accelerated by promoting a growth strategy with the government and the private sector working together and by developing and utilizing ICT technology. At the same time,
Slide 5: 2. Overview of MIRAIT Holdings
2. Overview of MIRAIT Holdings Established October 1, 2010 Capital stock 7 bil. yen President (CEO) Masatoshi Suzuki Shares [Total outstanding shares] 85,381,866 shares Listed securities exchanges Tokyo Stock Exchange First Section (Code No.: 1417) Rating & Investment Information, Inc. (R&I) A- Rati
Slide 6: II. Medium-term Management Plan
II. Medium-term Management Plan (FY2014-2016)
Slide 7: 1. Medium-term Management Plan
1. Medium-term Management Plan ■ Business Environment ■ Basic Policy Active expansion of the environmental & social innovation and ICT solution businesses which include the drivers Abenomics, rebuilding of social infrastructure for future growth 2020 Olympics and Paralympics in Tokyo The envir
Slide 8: 2. Transformation into a Comprehensive Engineering and Service Company
2. Transformation into a "Comprehensive Engineering and Service Company" Matching Environmental Changes Expand the "breadth" of our business domains → Expansion from upstream to downstream processes (planning, design, construction, maintenance, operation, etc.) Increase the "height" of our busin
Slide 9: 3. Changes in the ICT Environment Looking Toward 2020
3. Changes in the ICT Environment Looking Toward 2020 <Trends in the Establishment of Infrastructure> Telecommunications carriers’ capital investment is decreasing recently, but due to innovation of ICT, expansion of Area, Speed, Quality and communication infrastructure will continue moving toward
Slide 10: III. Performance and Financial Overview
III. Performance and Financial Overview
Slide 11: 1. Performance and the Business Plan for the Year Ended March 2015
1. Performance and the Business Plan for the Year Ended March 2015 FYE March 2011 FYE March 2012 FYE March 2013 FYE March 2014 FYE March 2015 Units: billions of yen Key Points of the FYE March 2015 Business Plan (Note 1) (Plan) In the year ending March 2015, a new measure of Medium-term Net sales 2
Slide 12: Pillars of the Medium-term Management Plan
■ Reference (The Company's Efforts Since Establishment) October 2010 Establishment of the March 2011 March 2012 March 2013 March 2014 Company Great East Japan Acceleration of after-earthquake reconstruction Change in government (Abenomics) Earthquake Focus on new energy Environmental change Full-sca
Slide 13: 2. Financial Overview for the Six Months Ended September 30, 2014
2. Financial Overview for the Six Months Ended September 30, 2014 FYE March 2014 FYE March 2015 YoY Change FYE March 2014 FYE March 2015 2Q actual results 2Q actual results Units: billions of yen (Percentage change) Full-year Results Full-year Plan Key Points (Ratio) (Ratio) (2Q progress rate) (2Q p
Slide 14: 3. Details of Net Sales / 4. Details of Operating Income
3. Details of Net Sales [YoY Change] 4. Details of Operating Income [YoY Change] There was a decrease in large-scale projects and everyday work in the NTT business Earnings increased by 0.3 bil. yen YoY due to increased sales LTE work and WiMAX work is performing well in the multi-carrier busi
Slide 15: 5. Shareholder Returns
5. Shareholder Returns Our basic dividend policy is to pay steadily and consistently in consideration of our business performance and the dividend payout ratio FYE March 2015, dividends will be increased as a result of general consideration of factors such as the business performance forecast an
Slide 16: IV. Specific Measures in Each Business
IV. Specific Measures in Each Business
Slide 17: 1. Efforts in the NTT Business
1. Efforts in the NTT Business Due to the maturing of the fixed broadband market, capital investment by NTT East/West is decreasing, and there has been a decline in large-scale projects and everyday work We are reforming our business operation structure and building an organization able to creat
Slide 18: Promotion of productivity improvement measures in NTT business
■ Reference( Promotion of productivity improvement measures in NTT business) Improvement of efficiency through consolidation of offices in each region ⇒ Reduction of direct operation and construction vehicles by consolidating construction crews ⇒ Reduction of indirect operation through the consoli
Slide 19: 2. Efforts in the Multi-carrier Business
2. Efforts in the Multi-carrier Business Capital investment by mobile carriers is slowing, but with the increase in traffic caused by the spread of smartphones, LTE work and NW work are increasing As large numbers of small-scale projects increase, profits have increased through measures aimed at
Slide 20: 3. Efforts in the Environmental & Social Innovation and ICT Solution Business
3. Efforts in the Environmental & Social Innovation and ICT Solution Business In addition to the expansion of existing electrical and air conditioning work in the Environmental & Social Innovation Business, we are expanding solar power work, EV charging station work and social infrastructure work
Slide 21: Efforts in New Businesses and Expansion in Australia
■ Reference (Efforts in New Businesses) Orders Received and Power Generated in Solar Power Work Expansion of Nationwide Installation Work (Net Sales) (Units: billions of yen) (Units: MW) (Units: billions of yen) Orders received (left) : O 15 100 15 12.0 bil. yen Net sales (left) : S Orders for power
Slide 22: 4. Structural Reforms and Efforts to Reduce Administrative Costs
4. Structural Reforms and Efforts to Reduce Administrative Costs Maximizing the effects of business reorganization enables the strategic shift of personnel and injection of personnel into growth areas Promotion of cost-reduction measures through reduction project of administrative expenses Acc
Slide 23: Promotion of shift of personnel
■ Reference (Promotion of shift of personnel) Establishment of an organization aimed at the promotion of new business and the utilization of personnel (July) ⇒ (MIRAIT) Reorganization of headquarters and establishment of incubation organization ⇒ (MIRAIT Technologies) Establishment of Hyper Techno
Slide 24: Visualization of Cost Management and Promotion of BPR of Operations
■Reference: Visualization of Cost Management and Promotion of BPR of Operations Centralized management of financial accounting using an integrated financial accounting system (MINCS:MIrait the NuCleus business system for produce Synergy) At present, we are implementing reforms of our business in
Slide 25: V. Reference Materials
V. Reference Materials
Slide 26: 1. Formation of the MIRAIT Group
3. Formation of the MIRAIT Group In October 2010, a management integration was carried out by Daimei, Commuture and TODENTSU, which had conducted business creating communication infrastructure for over half a century as partners of telecommunications carriers. They established MIRAIT Holdings Corp
Slide 27: 2. Company Overview: Business Composition
1. Company Overview (1) Business Composition The Group conducts business in a wide range of areas including ICT, the environment and energy, based on the creation of communication infrastructure (fixed communication and mobile communication) that is its main business. ■ Business content ■ Net sale
Slide 28: Business Overview: NTT Business
(2) Business Overview (1) NTT Business Construction, maintenance and operation of fixed communication facilities of the NTT Group. Centered on the Greater Tokyo and Kansai regions. The Company's core business, accounts for 36.0% of net sales. User Net sales and composition (FY2013) NTT exchange
Slide 29: Multi-carrier Business
(2) Multi-carrier Business Nationwide works on construction, maintenance and operation of communications facilities of all mobile carriers such as NTT DoCoMo, KDDI, Softbank, etc Fixed communication equipment for NCCs, CATV work, global business This accounts for 35.4% of net sales. Net sales
Slide 30: Environmental & Social Innovation and ICT Solution Business
(3) Environmental & Social Innovation and ICT Solution Business The growing business which serves as an engine to become a "Comprehensive Engineering and Services Company". Environmental & Social Innovation : Offers the comprehensive solutions to create environmental / social infrastructure. This
Slide 31: Building Management and Solutions Offered by the MIRAIT Group
■ Building Management and Solutions Offered by the MIRAIT Group Wireless communication access points Air conditioning, hygienic and energy- （Wi-Fi・IMCS/INDOOR） saving Wireless AP solutions Disaster response system （Wi-Fi IMCS) Air conditioning Solar power system (Earthquake impact determination syst
Slide 32: Executive Officers
(3) Executive Officers Outside Position Name Bio Officer Senior Executive Vice President, Nippon Telegraph and Telephone East Chairman, Director Goro Yagihashi Corporation President and CEO Masatoshi Suzuki Senior Executive Vice President, NTT DOCOMO, Inc. Senior Executive Vice Fumio Takaesu Preside
Slide 33: Overview of Major Subsidiaries
(4) Overview of Major Subsidiaries MIRAIT Corporation MIRAIT Technologies Corporation Capital stock 5.6 billion yen 3.8 billion yen President (CEO) Masatoshi Suzuki Fumio Takaesu Main Businesses Communication engineering business, etc. Communication engineering business, etc. Consolidated Business P
Slide 34: Group Formation
(5) Group Formation In NTT and (Mobile), MIRAIT and MIRAIT Technologies bear total responsibility including designing, quantity survey, operational management, while subsidiaries and subcontracting companies undertake the construction works. MIRAIT group is building a nationwide work organizatio
Slide 35: Expansion of Business Fields through the Use of M&A
(6) Expansion of Business Fields through the Use of M&A, etc. In the ICT solution business, we intend to exploit new business fields mainly in the upper layer (software, cloud computing, etc.) In the environmental & social innovation business, we will expand our business domain mainly in areas a
Slide 36: Share Information: Major Shareholders
(7) Share Information (1) Major Shareholders (As of Sep. 30, 2014) Number of Shares Shareholding Ratio Shareholder Held Shareholder Composition (%) (thousands) Sumitomo Electric Industries, Ltd. 16,236 19.0% The Master Trust Bank of Japan, Ltd. (Trust Account) 4,869 5.7% Treasury stock 3.5% MIRAIT H
Slide 37: Share Price
(2) Share Price (Since establishment of MIRAIT Holdings on October 1, 2010) ■ Share price and trading volume (Closing price) (Units: yen) 1,600 Dec.29, 2014 Closing price on Dec. 30,2014 1,389 yen (highest) ■ Share price 1,372 yen ■ PER 12.1x 1,200 ■ PBR 1.0x ■ Dividend yield 2.2% Oct.1, 2010 553 ye
Slide 38: Changes in the Business Environment and Business Opportunities
Forecast for the M2M market (domestic) 2. Changes in the Business Environment and Business Opportunities (bil. yen) ■ Japan's Structural Problems ■ Japanese Government Policy 1,500 1,170 1,000 Three arrows of Abenomics→Nominal growth rate of +3% for 10 years Overcome from low growth and deflation
Slide 39: Changes in the Communication Environment
Forecast Size of Smartphone Market (Japan) Feature phone subscribers ■ Changes in the Communication Environment （mil.） Smartphone subscribers 150 Smart phone ratio 100% x 100 2014 2016 2020 Business Opportunities for MIRAIT 120 80% Maturing of fiber optic networks Pole renewal 90 60% Migration to IP
Slide 40: Market Environment in the Mobile Business
■ Market Environment in the Mobile Business Since FY2012, mobile carriers have been accelerating LTE services. Mobile phone services using new frequency bands have also been started From FY2014, service is scheduled to begin providing using new frequency bands and higher speeds using carrier agg
Slide 41: Expansion of Business Areas Utilizing the MIRAIT Group's Technologies
3. Expansion of Business Areas Utilizing the MIRAIT Group's Technologies Resources (Technologies) Current Business Usage Areas to Expand Into （As of Sep 30, 2014) Engineering area Expanded areas NTT Qualified personnel (total qualifications) Recent areas engaged in Construction 4,400 (7,500 qualific
Slide 42: Current Industry Conditions
4. Current Industry Conditions (1) Current State of the Industry (As of December 2014) Communications construction companies are made up of three nationwide groups (MIRAIT, COMSYS, Kyowa Exeo), and nine regional companies. In recent years, a realignment of the industry has been carried out by thes
Slide 43: Net Sales and Operating Income of MIRAIT and Peer Companies
(2) Net Sales and Operating Income of MIRAIT and Peer Companies MIRAIT Holdings established with the management integration of the three companies had net sales of 277 billion yen in the year ended March 2014, approaching the scale of the two largest companies (COMSYS and Kyowa Exeo). Growing into
Slide 44: VI. Supplementary Materials
VI. Supplementary Materials
Slide 45: 1. Performance
1. Performance FYE March 2015 Units: billions of yen FYE March 2011 FYE March 2012 FYE March 2013 FYE March 2014 (Plan) Orders received 241.3 252.0 278.0 282.0 290.0 Net sales 246.6 236.0 271.0 277.7 285.0 Gross profit 24.3 24.0 29.3 29.9 32.3 Gross profit ratio 9.9% 10.2% 10.8% 10.8% 11.3% SG&A 19.
Slide 46: 2. Orders Received and Net Sales by Business Category
2. Orders Received and Net Sales by Business Category FYE March 2014 FYE March 2015 YoY Change FYE March 2014 FYE March 2015 YoY Change Orders received Progress Progress 2Q actual results 2Q actual results (Percentage change) Full-year Results Full-year Forecast (Percentage change) Units: billions o
Slide 47: 3. Assets, Liabilities and Net Assets
3. Assets, Liabilities and Net Assets As of September 30, 2014 , the equity ratio was 67.1% (63.0% as of March 31, 2014) Around 70% of assets are current assets, mainly made up of cash & deposits, accounts receivable from completed construction contracts and costs on uncompleted construction con
Slide 48: 4. Key Performance Indicators
4. Key Performance Indicators Capital-related Indicators FYE March 2015 FYE March 2011 FYE March 2012 FYE March 2013 FYE March 2014 (Plan) Equity ratio 66.5％ 65.3％ 60.0％ 63.0％ 67.9％ 30.9％ Return on equity (ROE) * 3.3％ 4.1％ 6.7％ 8.0％ （3.8％） Shareholder Return Indicators FYE March 2015 FYE March 2011
Slide 49: Cash Flows and Cash and Deposits / Interest-bearing Debt
Cash Flows FYE March 2014 FYE March 2015 Units: billions of yen FYE March 2011 FYE March 2012 FYE March 2013 FYE March 2014 2Q actual results 2Q actual results Operating cash flow 3.6 5.4 -1.6 9.0 7.5 15.3 Investment cash flow 0.4 -2.3 - 1.5 -2.7 - 1.5 - 2.2 Financial cash flow -7.1 -2.1 -2.4 -3.5 -
Slide 50: Precautionary Statement
Precautionary Statement Statements and quotes relevant to the forecasted values in this handout are the future prospects based on the plans and prospects of the Company at this point in time. The actual business results could be significantly different from those stated in this handout due to change
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