Slide 1: FY2015 1H Consolidated Financial Results
August 17, 2015 FY2015 1H Consolidated Financial Results （Six month ended June 30. 2015) EPCO CO., LTD. EPCO.CONFIDENTIAL.INFORMATION
Slide 2: Part 1 Description of FY2015 1H Results
2 Part 1 Description of FY2015 1H Results EPCO.CONFIDENTIAL.INFORMATION
Slide 3: Consolidated Results for FY2015 1H (Jan.-Jun.)
Consolidated Results for FY2015 1H (Jan.-Jun.) 1 ■ Profits declined from a year ago due to prior investments but exceeded the forecast (Units: Million JPY) FY2015 1H Consolidated FY2014 1H Vs. forecast Vs. FY2014 1H Financial Results result Forecast Result Change Change Change Change (%) (%) Net Sal
Slide 4: Effects of Subsidized Projects on Results for 1H
Effects of Subsidized Projects on Results for 1H 2 ■ Effects on earnings of selection as a participant in subsidized projects Expenses associated with subsidized projects (Units: Million JPY) and subsidy income FY2015 1H result (adjusted) Amount Consolidated Item FY2015 Financial Results Result Subs
Slide 5: Overview of Earnings by Segment (1) Design Consulting Business
Overview of Earnings by Segment (1) Design Consulting Business 3 (Units: Million JPY) Vs. FY2014 1H Net Sales Ordinary Income Net sales 1,200 400 - New home construction market in 2Q: +1.2% year on -76M 1,008 year -7.6% 350 External 1,000 931 environment - Exchange rate: The renminbi is stronger tha
Slide 6: Changes in New Home Construction and Design Commissions
Changes in New Home Construction and Design Commissions 4 Changes in New Low-Rise Home Changes in New Low-Rise Home Construction (*1) Construction By Quarter (Unit: Homes) (Unit: Homes) Jul 2013-Jun 2014 Jul 2014-Jun 2015 By Period Jul 2013- Jul 2014- The reactionary fall peaked in the October- Chan
Slide 7: Overview of Earnings by Segment (2) Customer Support Business
Overview of Earnings by Segment (2) Customer Support Business 5 Vs. FY2014 1H (Units :Million JPY) Net Sales Ordinary Income Net sales 400 -12M 140 363 -3.3% 350 In FY2014 1H, the number of Inbound inquiries 350 120 External rose temporarily due to seasonal factors, including 131 environment heavy s
Slide 8: Overview of Earnings by Segment (3) Smart Energy Business
Overview of Earnings by Segment (3) Smart Energy Business 6 Vs. FY2014 1H (Units: Million JPY) Net sales Ordinary income 300 Inquiries increased from companies willing to Net sales 177 External enter the power retail market to provide services 200 +79M associated with electric power for homes in 98
Slide 9: Year-on-Year Changes in Ordinary Income by Segment
Year-on-Year Changes in Ordinary Income by Segment 7 ■ Prior investments were expanded (1) Actively hired human resources with experience in the power industry. in the Smart Energy Business. (2) Invested in the development of systems related to the supply and demand of electricity. (3) Strengthened
Slide 10: Ordinary Income Vs. Forecast by Segment
Ordinary Income Vs. Forecast by Segment 8 ■ Each segment was roughly on a par with the forecast. (Units: Million JPY) Breakdown of profit and loss in the FY2015 FY2015 Change Energy Business forecast result ■ FY2015 1H Forecast ■ FY2015 1H Result Net Sales 204 177 -26 -) Personnel expenses 205 221 +
Slide 11: Forecast for Fiscal Year 2015
Forecast for Fiscal Year 2015 9 ■ The forecast has been revised due to declines in sales from new projects and an increase in prior investments. Consolidated Financial FY2015 FY2015 Results (Units: Million JPY) 1H 2H initial 1H 2H revised Change forecast forecast forecast forecast forecast forecast
Slide 12: Sales Forecast (Revised) by Segment in FY2015
Sales Forecast (Revised) by Segment in FY2015 10 ■ Expected increases in sales from new commissions in the Design Consulting Business and Energy Business have been revised downward. FY2015 FY2015 Segment Initial Revised Year on (Units: Million JPY) 1H 2H forecast 1H 2H forecast year forecast forecas
Slide 13: Analysis of Changes in FY2015 Ordinary Income Forecast
Analysis of Changes in FY2015 Ordinary Income Forecast 11 ■ The main factors are downward revisions in the Smart Energy Business and the Design Consulting Business. Factors for Upward Revisions ■ FY2015 Initial Forecast Ordinary income to Expense Forecasts ■ FY2015 Revised Forecast Ordinary income (
Slide 14: Outline of Prior Investments in the Smart Energy Business
Outline of Prior Investments in the Smart Energy Business 12 ■ Intensive investments in 2015 in anticipation of the liberalization of electric power in April 2016 Effects of selection as a participant in subsidized projects on results in FY2015 (Units: Million JPY) Period of Subsidy Subsidized proje
Slide 15: Part 2 Initiatives in Smart Energy Business
13 Part 2 Initiatives in Smart Energy Business EPCO.CONFIDENTIAL.INFORMATION
Slide 16: Initiatives in New Business
14 Initiatives in New Business EPCO.CONFIDENTIAL.INFORMATION
Slide 17: Power Retail Business Model
15 Power Retail Business Model EPCO.CONFIDENTIAL.INFORMATION
Slide 18: Power Voltage Classification and Breakdown of Electricity Consumed
Power Voltage Classification and Breakdown of Electricity Consumed 16 From March 2000 From April 2004 From April 2005 Extra-high voltage Contract (kW) (Voltage (V)) Segments liberalized Segments liberalized Segments liberalized For extra-high-voltage industry For extra-high-voltage industry For extr
Slide 19: Developing the Electricity Business as a Power Retail Business
Developing the Electricity Business as a Power Retail Business 17 Hydro power plant Thermal power plant Nuclear power plant Wind power plant, etc. Power producer Power generation and power transmission to be separated in FY2020 Wholesale contract with Receiving electricity retail electricity busines
Slide 20: Positions of Entities in the Power Retail Market
Positions of Entities in the Power Retail Market 18 High voltage, within the region High voltage, outside the region Subsidiary PPS High-voltage companies Many locations, small amounts Local government Fuel company Power company City gas company Communications Propane gas company company EPCO Point
Slide 21: Services to Be Supplied by EPCO in the Power Retail Market
Services to Be Supplied by EPCO in the Power Retail Market 19 (1) High-voltage company, (2) Low- Power (1) Direct sales from EPCO company EPCO (2) Through partners voltage company, (3) Low-voltage general customer EPCO Back-office Supply and service Large power End Energy demand Retail source custom
Slide 22: EPCO's Unique Electricity Sales Model
EPCO’s Unique Electricity Sales Model 20 EPCO’s unique tripartite power retail model in collaboration with existing partners General power Power supply company company Power transmission Power wholesale contract contract EPCO (Power retail) Power retail contract Agency contract (1. High-voltage comp
Slide 23: Electricity Selling Model to Complement Core Businesses
Electricity Selling Model to Complement Core Businesses Through 21 Integration of Existing Businesses and Electricity Selling Developing a new business model that complements business partners’ existing businesses Customer Existing business partner (distributor) Builder EPCO business Business partne
Slide 24: Developing Products and Services for Business Partners to Deal In
Developing Products and Services for Business Partners to Deal In 22 Boosting Refurbish demand for energy-saving plans by selling three-item sets to homes that are replacing equipment Division of roles for energy-saving Electricity, gas, energy diagnosis refurbish three-item set [Energy diagnosis [E
Slide 25: Housing Stock as Targets for Energy-Saving Equipment Installation
Housing Stock as Targets for Energy-Saving Equipment Installation 23 Approximately 6 million houses that were built from 1996 to 2005 are targets for equipment replacement. Statistical Survey of Construction Starts of the Ministry of Land, Infrastructure, Transport and Tourism Collective housing Det
Slide 26: Investment in Enechange
24 Investment in Enechange EPCO.CONFIDENTIAL.INFORMATION
Slide 27: Investment in Enechange
Investment in Enechange 25 Investing in Enechange Co., Ltd., which operates a website comparing electricity rate plans Business model of Enechange Website comparing rate plans External investors Investment, assigning employees temporarily EPCO.CONFIDENTIAL.INFORMATION
Slide 28: Initiatives in Existing Businesses
26 Initiatives in Existing Businesses EPCO.CONFIDENTIAL.INFORMATION
Slide 29: Storage Battery Leasing of ONE Energy
Storage Battery Leasing of ONE Energy 27 Outsourcing from ONE Energy is expanding, and sales are expected to rise to 150 million yen. (Number of outsourced projects: a total of approximately 1,500 projects as of the end of 2014 à In 2015 around 7,000 projects are expected to be outsourced.) Solar po
Slide 30: Purchases of Solar Power by Panasonic EPCO Energy Services
Purchases of Solar Power by Panasonic EPCO Energy Services 28 The power purchase service needs to be reviewed in response to changes in the rules of the feed-in tariff scheme. Existing service Power supply source Company Buyer of power Buying power (premium) Wholesale of power Home with solar power
Slide 31: Initiatives in Subsidized Projects
29 Initiatives in Subsidized Projects EPCO.CONFIDENTIAL.INFORMATION
Slide 32: Participation in Large-Scale HEMS Information Infrastructure Project
Participation in Large-Scale HEMS Information Infrastructure Project (FY2014 and FY2015) 30 Purposes of participation in Large-Scale HEMS Information Infrastructure Project (1) Installing HEMS equipment and testing technology (including collecting and analyzing HEMS data) (2) Testing service using H
Slide 33: Selection as a Participant in the Renewable Energy Local Production Project
Selection as a Participant in the Renewable Energy of the entire region Local Production for Local Consumption Promotion Project 31 Verifying a local government PPS model, which uses regional renewable energy in the entire region (1) A power retail model for local production for local consumption us
Slide 34: Feasibility Study on Smart Community in Naha City
Selection as a Participant in a Feasibility Study on Local Production for Local Consumption-Type Smart Community in Naha City 32 Co-op members Demand A power grid only for Okinawa in Naha City Using co-op forecasting ↓ The local production of energy for local Power consumption is necessary for disas
Slide 35: Initiatives in the China Business
33 Initiatives in the China Business EPCO.CONFIDENTIAL.INFORMATION
Slide 36: Progress in the Apartment Maintenance Business in China
Progress in the Apartment Maintenance Business in China 34 Planning to commence services in Foshan, Guangdong Province, where Lesso’s main plant is located, in late September STEP1: Starting to provide services to 15,000 households in the middle- to high- class apartment buildings in the Long Jiang
Slide 37: Energy Plan Company
Energy Plan Company