Slide 1: Shigeru Suzuki, Representative Director & President
Shigeru Suzuki Representative Director & President Copyright © 2006 2005 NS Solutions Corporation, All rights reserved.
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This document includes statements of forward-looking descriptions regarding the intent, belief or current expectations of NS Solutions Corporation (the “Company”) or its officers in terms of its operation and financial condition. Accordingly, such statements contain risks
Slide 3: FY2005 Actual vs FY2004 and Previous Outlook
Billions of yen FY0 FY044 FY0 FY055 C Cha hange nge FY0 FY055 C Cha hange nge PPrreevviioous us A Act ctua uall A Act ctua uall oout utllooookk AA BB B- B-AA CC B- B-CC SSaalles es 146.5 146.5 148.3 148.3 ++ 1.8 1.8 150.0 150.0 -- 1.7 1.7 Business Business solutions solutions 81.9 81.9 84.0 84.0 ++
Slide 4: FY2005 Sales by Business Line and Customer Industry
Billions of yen FFY0 Y044 FY0 FY055 C Cha hange nge B Buusin sineessss lin linee// A Act ctua uall A Act ctua uall C Coom mmmeent nt C Cuusto stom meerr in indudustr stryy A B B- A B B-AA B Bus usiine nessss ssoollut utiioons ns 70.6 70.6 72.0 72.0 ++ 1.4 1.4 Increase Increasein insystem Manufacturi
Slide 5: Business Solutions Sales Breakdown by Industry
Manufacturing, distribution and service Financial Services industries Auto and auto parts Insurers other 1 Others manufacturing 9% % 8% 24% Electric appliances and Securities Power high tec 25% companies and 25% railroads Wholesale and 5% retail Banks 9% 66% Service Foods industry industry 4% 24% 4
Slide 6: Gross Profit Year on Year Change
Subcontract and material cost Shift to reduction, and others Year on year high value added businesses +0.3 Billions of yen +0.7 Gross profit increase relative to sales . increase +0.4 ¥0.4 bn. . Investment to reinforce business structure -1.0 5 Copyright © 2006 2005 NS Solutions Corporation, All rig
Slide 7: FY2006 Outlook
Billions of yen FY0 FY055 FY0 FY066 C Cha hange nge A Act ctua uall Out Outllook ook AA BB B- B-AA SSaalles es 148.3 148.3 152.0 152.0 ++ 3.7 3.7 Business Business solutions solutions 84.0 84.0 86.5 86.5 ++2.5 2.5 Platform Platform solutions solutions 24.2 24.2 24.5 24.5 ++0.3 0.3 Business Business
Slide 8: Business Line and Market Direction
… Business line/ Market Market trend Customer industry direction Business solutions Manufacturing, Clients have strong will for IT investment in distribution and service industries system renewal, logistics, CRM, PLM and so on. Mainly mega banks have started to expand Financial services strategic IT
Slide 9: FY2006 Outlook by Business Line and Customer Industry
Billions of yen FFY0 Y055 F FY0 Y06 6 C Cha hange nge B Buussin ineessss lin linee// A A ctua ct uall Out Outllooook k C Coom mmmeent nt CCuussto tom meerr in indu dussttrryy A B B- A B B-AA Growth Growthmainly mainly in in B Bus usiine nessss ssoollut utiioons ns 72.0 72.0 73.5 73.5 + + 1.5 1.5 man
Slide 10: FY2006 Gross Profit Year on Year Change
Structural reform of Year on year Gross profit Increase clients and projects relative to sales increase Selection and Billions of yen +0.7 concentration /offshore system development, etc. +0.2 . . 10.0 ¥0.3 bn. BCM-related expense - 0.3 New data center-related cost - 0.3 * Investment to reinforce bu
Slide 11: FY2005 Actual and FY2006 Outlook by Half Year
Billions of yen FY0 FY055 A Act ctua uall FY0 FY066 Out Outllook ook C Cha hange nge 11H H 22H H 11H H 22H H 11H H 22H H AA BB SSaalles es 64.8 64.8 83.5 83.5 66.0 66.0 86.0 86.0 ++ 1.2 1.2 ++ 2.5 2.5 Business Business solutions solutions 33.6 33.6 50.4 50.4 33.5 33.5 53.0 53.0 -- 0.1 0.1 ++2.6 2.6
Slide 12: FY2005 Business Structure Reinforcement Programs
1. Enhancing technical capabilities to develop systems in an organized way 2. Going ahead with our plan to set up modern software factory 3. Strengthening consulting capabilities 4. Establishing sales process 5. Performing ARM & SLC-T task force activities 6. Creating brand-new solutions 7. Setting
Slide 13: Structural Reform of Clients and Projects
Structural reform of clients and projects Market expands, but the limit of our human resources. Background zProjects are growing in size zProducts’ margins are getting lower zA larger number of clients zSelection and concentration of industries and clients Policy zShift to large-scale and high value
Slide 14: FY2006 Priority Programs
1. Enhancing technical capabilities to develop systems in an organized way 2. Strengthening sales efforts 3. Incubating and enlarging service businesses 4. Carrying forward business continuity management 5. Going ahead with management of subcontractors 13 Copyright © 2006 2005 NS Solutions Corporati
Slide 15: Enhancing Technical Capabilities to Develop Systems
2006/3 200 /3 1.Setting the standard zSpreading internally of system development Setting the standard of SLC 1 zEstablishing internally Development process zContinue to improve system Task development process Deliverable Setting the standard of IT infrastructure engineering and system operation 2. S
Slide 16: Strengthening Sales Efforts
zEstablishing sales process zAssembling database for Introducing sales processes by sales promotion knowledge using Sales Force Automation zDeveloping education program for sales promotion zImproving consulting methodology 15 Copyright © 2006 2005 NS Solutions Corporation, All rights reserved.
Slide 17: Incubating and Enlarging Service Businesses
Expanding data center service menu zNew data center started operations zDisaster recovery service to start Incubating and enlarging professional network services zDeveloping various utility services zSecurity services and network performance evaluating services Establishing the operating base of NSS
Slide 18: Carrying Forward Business Continuity Management
We go ahead with BCM, as preparing master plan and constructing cooperative framework between business unit, subsidiaries and headquarters. Risk management for reliability of financial reporting zAssessing design and implementation of internal control zStandardizing business processes Risk managemen
Slide 19: Tightening Compliance Control and Subcontractor Management
Tightening compliance control zFollowing Act Against Delay in Payment of Subcontract Proceeds, etc. and Worker Dispatch Law Management system for subcontractors zID system and visitor’s pass management E-learning 18 Copyright © 2006 2005 NS Solutions Corporation, All rights reserved.
Slide 20: Workplace Environment, Organization and Alliances
Workplace environment and motivation We prohibited late-night overtime (22:00-5:00) and holiday work We recommend our staff members to take a nine straight day vacation 2 Organization and equipment We’ve set up Business Continuity Management Group in October 2005 We’ve improved new data center facil
Slide 21: Dividend Plan: Increase to ¥35 per Share
We provide stable dividends to shareholders and maintain internal reserve for expanding business activities in the future, etc. Sales and profit increased year on year. Distributing profits among shareholders We plan to increase an annual per-share dividend. 2006/3 2007/3 ¥25.00 per share ¥35.00
Slide 22: http://www.ns-sol.co.jp/
http://www.ns-sol.co.jp/ Copyright © 2006 2005 NS Solutions Corporation, All rights reserved.