Slide 1: Briefing on Results for Fiscal Year 2017
Briefing on Results for Fiscal Year 2017 — January to December 2017 —-— February 14, 2018 CAC Holdings Corporation
Slide 2: Agenda
I. Overview of Financial Results for FY2017 II. Results Forecasts for FY2018 III. Overview of Medium-Term Strategy (Determination 21)
Slide 3: I. Overview of Financial Results for FY2017
I. Overview of Financial Results for FY2017
Slide 4: FY2017 results: net sales, gross profit, SG&A, operating income
(Net sales) Net sales increased ¥700 million. However, given that the impact of exchange rates was nearly ¥700 million, we think that net sales were actually flat from the previous year. (Gross profit) Gross profit declined despite the increase in net sales. Profit declined ¥350 million in overseas
Slide 5: Results versus revised forecasts
・Our full-year results forecasts have almost fallen within the revised values we announced on November 10, 2017. ・Although the amount of difference is less than ¥200 million, we have disclosed it in the “Notice of Differences Between Consolidated Results Forecasts and Actual Results for FY2017” publ
Slide 6: Differences from initial forecast
Differences from initial forecast (announced on February 14, 2017) (A subsidiary in Singapore (Sierra Solutions)) A large project for a state-run hospital in Thailand became unprofitable. At the beginning of the period, operating income of ¥200 million was expected in FY2017 because the project was
Slide 7: Overseas IT results
In overseas IT, income declined due to the poor performance of Sierra Solutions and a delay in the recovery of Accel Frontline, and an operating loss was posted as a result. T
Slide 8: Systems development and integration
(Systems Development and integration) Net sales: Net sales declined as a result of a fall in sales to pharmaceuticals in Japan. Operating income: Domestic IT did not fare well, but the major factor for an operating loss in this segment was a decline in operating income by nearly ¥600 million year on
Slide 9: Net sales by industry
(Pharmaceuticals) Sales declined ¥800 million year on year due to the effect of a significant fall in system projects for pharmaceutical companies in Japan. (Financial services) Large projects for mega banks were restored to their normal state. Sales declined ¥400 million in Japan and increased more
Slide 10: Orders received and order backlog
・Orders received totaled ¥52.1 billion, an increase of ¥1.2 billion year on year. The order backlog stood at ¥15.7 billion, a decrease of ¥1.1 billion year on year. ・Orders were strong, but the major factor for this was that there were many long-term orders (where the period from orders received to
Slide 11: Gain on valuation of securities and net assets
・The gain on the valuation of securities increased ¥4.1 billion due to a rise in share prices, and this was the major factor for the increase in net assets. NN
Slide 12: II. Results Forecasts for FY2018
II. Results Forecasts for FY2018
Slide 13: Review of previous medium-term strategy
・The previous medium-term strategy was to expand the business and business domains of the Group by investing in overseas and CRO. ➔While sales grew slightly, income was pressed down as a result. ・In 2015 and 2016, Accel Frontline, a subsidiary in India, recorded an operating loss. An unprofitable pr
Slide 14: FY2018 results forecasts and dividend
Results forecasts for FY2018 are similar to those at the beginning of FY2017. Annual dividend is set at ¥38, an increase of ¥2 from the previous year. N
Slide 15: FY2018 initiatives by business
(Domestic IT business) ・New digital shift: With a particular focus on efforts to capture demand for AWS (Amazon Web Services), a cloud service platform, we will revive income by increasing opportunities to receive orders. ・We will manage projects overall to prevent them from becoming unprofitable by
Slide 16: III. Overview of Medium-Term Strategy (Determination 21)
III. Overview of Medium-Term Strategy (Determination 21)
Slide 17: [As described on the slide]
[As described on the slide] NT
Slide 18: Target numbers
Target numbers are as indicated on the slide. N
Slide 19: Breakdown of target numbers
Breakdown of target numbers ・Existing businesses refer to businesses of the Group companies as of the end of 2017. We expect that their net sales will in fact decline to ¥50 billion. We aim to revive their operating income to ¥2.5 billion. ・New businesses refer to businesses planned by a specialized
Slide 20: Strategy by business: domestic IT, overseas IT, CRO
(Domestic IT business) ・In reverse innovation, we will bring solutions provided by overseas subsidiaries into Japan to develop them in Japan. Currently, we are providing Japanese customers with services such as the technology of Accel Frontline in India for autonomous driving support systems, which
Slide 21: [As described on the slide]
[As described on the slide] ON
Slide 22: Emotional-recognition AI and inbound services
・In China, emotional-recognition AI is used to evaluate teachers by recording classes at school and understanding students from their expressions. ・In inbound services, we are thinking about creating a service in cooperation with a medical corporation that will enable Chinese tourists to reserve med
Slide 23: Group human resources and corporate presence
We will implement the joint education of human resources and strategic rotation as the entire Group. We will also work on measures to increase corporate presence to enhance the corporate value of the entire Group as a listed holding company. OP
Slide 24: Appendix: Initiatives and Major News in the Second Half of FY2017
Appendix: Initiatives and Major News in the Second Half of FY2017
Slide 25: Commencement of services using 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 roots) J Cashback Pool ¢ Account blockchain, AI and IoT - Rolled out to other sectors in addition to finan
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
Slide 27: Initiation of CVC fund for domestic companies
Acquisition of New Technologies and New Business Domains Initiation of CVC fund for domestic companies CAC CAPITAL multi-strategy CVC : 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).
Slide 28: AFL: Accel Frontline, a subsidiary in India
AFL: Accel Frontline, a subsidiary in India
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 prelimina
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
Slide 32: CAC Holdings Corporation
CAC Holdings Corporation CAC Group helps disseminate and develop Boccia, a sport for the disabled. jt a is te o' R a * = #1 CACHYT CAG PERF VAR 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 Corporatio