Mirait One Corporation · TSE:1417
Mirait One — MIRAIT Holdings — FY2018 Earnings Presentation
40 slides from Mirait One's earnings presentation, May 14, 2019
Slide 1: Presentation on the Financial Results for the Fiscal Year Ended March 2019
Presentation on the Financial Results for the Fiscal Year Ended March 2019 May 14, 2019 MIRAIT Holdings Corporation
Slide 2: Table of Contents
Table of Contents I. Overview of the Financial Results for the Fiscal Year Ended March 2019 IV. Reference Materials 1. Financial Results for the Fiscal Year Ended March 2019 3-5 1. Overview of MIRAIT Holdings 28 - 32 2. Summary by Business Category 6-7 2. Changes in the Market Environment for the Mo
Slide 3: I. Overview of the Financial Results for the Fiscal Year Ended March 2019
I. Overview of the Financial Results for the Fiscal Year Ended March 2019
Slide 4: 1. Financial Results for the Fiscal Year Ended March 2019
1. Financial Results for the Fiscal Year Ended March 2019 （6-month (Oct-Mar ) results for TTK and 3-month (Jan-Mar) results for Solcom and Shikokutsuken are reflected) FYE March 2018 FYE March 2019 Units: bil. yen YoY Change Key Highlights Full-year Results Full-year Results Amount % Orders received
Slide 5: (Reference) Financial Results for the Fiscal Year Ended March 2019 (Former Group)
(Refernce) Financial Results for the Fiscal Year Ended March 2019 (Former Group) * Former Group is Mirait, Mirait Technologies and Lantrovision. FYE March 2018 FYE March 2019 Units: bil. yen YoY Change Key Highlights Full-year Results Full-year Results Amount % Record-high net sales and operating in
Slide 6: Detailed Analysis of Net Sales and Operating Income [YoY Comparison]
■ Detailed Analysis of Net Sales [YoY Comparison] ■ Detailed Analysis of Operating Income [YoY Comparison] NTT: Increase in facility operations. Multi-carrier: increase in work for new frequencies Impact of increase in net sales : +2.2bil. yen Environmental & Social Innovation: increase in compl
Slide 7: 2. Summary by Business Category (Former Group)
2. Summary by Business Category (Former Group) ○positive factors ▲negative factors 項 目 主な内容 【Net sales】 ○ Decline in utility pole renewal work off-set by increase in facility management business (+1.3% yoy). 【Gross profit】 ○ Increase in line with the improvement in gross profit margin thanks to KAIZ
Slide 8: Summary by Business Category (continued)
○positive factors ▲negative factors 項 目 主な内容 【Net sales】 ○ Increase due to robust LAN cabling work and goods sales in Japan and overseas, despite significant drop in work to resolve TV reception interference (+7.4% yoy) . 【Gross profit】 ○ Increase despite drop in demand for TV reception-related work
Slide 9: 3. Shareholder Returns
3. Shareholder Returns Comprehensive decisions on shareholder returns will be made based on the Company’s basic policy to pay dividends consistently and its total shareholder return target of more than 30%, while also taking into consideration the Company’s business results and cash position, amon
Slide 10: II. New Medium-term Management Plan (FY2019-2021)
II. New Medium-term Management Plan (FY2019-2021)
Slide 11: 1. Outline of New Medium-term Management Plan
1. Outline of New Medium-term Management Plan ■ Business environment ■ Theme of New Medium-term Management Plan Upcoming era of 5G and advanced mobile services Aim to be a company that contributes to the “smart society”, through Development of new ICT technologies and IoT initiatives to enhanc
Slide 12: 2. Key Initiatives under the New Medium-term Management Plan
2. Key Initiatives under the New Medium-term Management Plan Generating new business opportunities Transforming the business structure Support regional development by leveraging the expanded regional coverage Accelerate the transformation of the business structure (shift from base domains achiev
Slide 13: III. Business Plan for the Fiscal Year Ending March 2020
III. Business Plan for the Fiscal Year Ending March 2020
Slide 14: 1. Business Plan for the Fiscal Year Ending March 2020
1. Business Plan for the Fiscal Year Ending March 2020 FYE March 2019 FYE March 2020 Units: bil. yen YoY Change Key Highlights Full-year Results Full-year Plan Amount % Net sales and operating income to increase due to full-year Orders received 392.6 420.0 + 27.4 + 7.0% contribution of merged compan
Slide 15: (Reference) Business Plan for the Fiscal Year Ending March 2020 (Former Group)
(Reference) Business Plan for the Fiscal Year Ending March 2020 (Former Group) * Former Group is Mirait, Mirait Technologies and Lantrovision. FYE March 2019 FYE March 2020 Units: bil. yen YoY Change Key Highlights Full-year Results Full-year Plan Amount % Aim for 4th consecutive year of sales and p
Slide 16: Detailed Analysis of Net Sales and Operating Income [YoY Comparison]
■ Detailed Analysis of Net Sales [YoY Comparison] ■ Detailed Analysis of Operating Income [YoY Comparison] NTT: decrease in utility pole renewal work Impact of increase in net sales : +0.6bil. yen Multi-carrier: work for new frequencies and Rakuten to gain full momentum Decline in gross profit m
Slide 17: 2. Trends in the NTT Business
2. Trends in the NTT Business NTT’s investment activities continue to slow down, but non-capex work (accounted for by NTT as operating expense ), such as those to remove lead-in wires, remain abundant. Access work such as utility pole renewals will decrease, but the decline in sales will be offs
Slide 18: Facility renewal proposals and consolidation of branch offices
Sales growth through facility improvement proposals Consolidation of branch offices Facility renewal proposals through daily inspections and by unit area Combined 2 construction branch offices to 1 in № Initiatives Ikebukuro, Tokyo Facility renewal proposals based on inspections by unit area (area
Slide 19: 3. Trends in the Multi-carrier Business
3. Trends in the Multi-carrier Business Investment activities of mobile carriers remain strong on the back of continued demand in work for advancements in 700MHz/3.5GHz-related work. Sales growth with work for new frequencies (1.7GHz/3.4GHz) gaining full momentum and start of work for Rakuten Mo
Slide 20: Trends in mobile business (5G) and adopting IT systems
Trends in mobile business (5G) Adopting IT systems in mobile business Network to be established based by 10km grids in all urban and regional potential industrial Aim to adopt common system across 5 group companies in 2 to 3 years areas nationwide 2019年 ⇒ 5G base stations (parent station) to be
Slide 21: 4. Trends in the Environmental & Social Innovation Business
4. Trends in the Environmental & Social Innovation Business Net sales growth due to increase in completed projects for mega-solar and civil engineering. In solar power, shifting from mega-solar projects to work for self-consumption solar power systems (roof-top solar panels at multiple stores) a
Slide 22: Initiatives in solar power-related business and civil engineering
Initiatives in solar power-related business Initiatives in civil engineering Project in Ponto-cho, Kyoto to lay power lines underground: Adopted various new From FIT to self-consumption systems + O&M construction methods for work in narrow roads. 2010～ 2012～ 2019～ 【Key features】 Household power La
Slide 23: 5. Trends in the ICT Solution Business
5. Trends in the ICT Solution Business 8Maintain operating income ratio at 8％ level at Lantrovision following the clean-up of unprofitable projects. Actively cultivate Olympics-related business opportunities （LAN, Wi-Fi, security-related, etc.） Sales to decrease for work to resolve 700MHz TV r
Slide 24: Initiatives in datacenter business and Lantrovision's overseas strategy
Lantrovision’s overseas business strategy Initiatives in datacenter business Sound business environment across Asia; expanding business in new areas in Myanmar. Development and operation of own datacenter Maintain operating income ratio at 8% level following clean-up of unprofitable projects.
Slide 25: 6. Initiatives in New Solutions
6. Initiatives in New Solutions Cultivating business opportunities in light of the Olympics (Mobile sensors) Initiatives in drone business The Mirait Group, being headquartered in the local area, is actively engaging in work Offer wide range of services in areas such as facility inspection, meas
Slide 26: 7. Initiatives to Build a Stronger Business Base
7. Initiatives to Build a Stronger Business Base Strengthening the group’s business operations Overhead cost reduction effect (+700 mil. yen) Strengthen group-oriented management to enhance work capabilities, client base and profit structure. ■ Measures in 3/2020 HD ② ① Acquiring own assets and se
Slide 27: 8. ESG Initiatives
8. ESG Initiatives ESG Initiatives Strengthening human resources Electrical engineer 1,742 1,583 E Environment ① Grow the number of qualified staff Mirait’s track record in solar ・Contribute to penetration of renewable energy panel installation work ・Plan for the candidates to build hands-on experie
Slide 28: IV. Reference Materials
IV. Reference Materials
Slide 29: 1. Overview of MIRAIT Holdings: (1) Company Overview
1. Overview of MIRAIT Holdings (As of March 31, 2019) (1) Company Overview Established October 1, 2010 Paid-in capital 7 billion yen President (CEO) Masatoshi Suzuki Shares 【Total outstanding shares】 108,325,329 shares Stock listing 1st Section of the Tokyo Stock Exchange (Code: 1417) Credit ratings
Slide 30: (2) Business Overview
(2) Business Overview The MIRAIT Group’s business is centered on the construction of communication infrastructure (for fixed and mobile communication), but the Group is also engaged in various other businesses in areas such as ICT, the environment, and energy. ■Overview of business categories (Uni
Slide 31: (3) The Company's Initiatives Since Establishment
(3) The Company’s Initiatives Since Establishment 4nd MTP (~ FYE March 2022) Target: net sales 450, operating income 27 bil. yen. (6.0%), ROE More than 8.0% 3nd MTP (~ FYE March 2021) 1st MTP (~FYE March 2014) 2nd MTP (~ FYE March 2017) Mid-term plan Target: net sales 340, Target: net sales 280, Tar
Slide 32: (4) Future Focus Areas (Frontier Domains)
(4) Future Focus Areas (Frontier Domains) Zone Smart Office Smart Town Smart House Domain Cloud & Networks • Security (Surveillance cameras, network monitoring) • Disaster prevention networks Stock business & Cloud • LAN, PBX Operations & • Sensor networks Frontier Domains Networks • Cloud (Servers,
Slide 33: (3) Expansion of Business Areas Utilizing Technologies
(3) Expansion of Business Areas Utilizing Technologies (As of March 31, 2019) Resources (Technologies) Current Business Usage Areas to Expand Into Engineering area Expanded areas NTT Qualified personnel (total qualifications) Aging infrastructure Construction 7,850 (12,400 qualifications) Telecommun
Slide 34: 2. Changes in the Market Environment for the Mobile Business
2. Changes in the Market Environment for the Mobile Business - FY 2018 FY 2019 FY 2020 - Spread of smartphones Increase in connected devices Rapid increase in data traffic 2020 Tokyo Olympics and Paralympics Data offloading measures General mobile Expansion of frequency bands Measures to resolve poo
Slide 35: 3. Supplementary Financial Information: (1) Historical Performance
3. Supplementary Financial Information ※（ ） indicates results for the MIRAIT Group (Mirait, Mirait Technologies and (1) Historical Performance Lantrovision(S) Ltd.) excluding the impact from the merged companies. FYE March 2020 Unit: bil. yen FYE March 2016 FYE March 2017 FYE March 2018 FYE March 20
Slide 36: (2) Orders Received and Net Sales by Business Category
※（ ） indicates results for the MIRAIT Group (Mirait, Mirait Technologies and (2) Orders Received and Net Sales by Business Category Lantrovision(S) Ltd.) excluding the impact from the merged companies. FYE March 2018 FYE March 2019 FYE March 2020 Orders received Full-year Results Full-year Results F
Slide 37: (3) Assets, Liabilities and Net Assets
(3) Assets, Liabilities and Net Assets Total assets: 331.4 bil. yen (up from 234.4 bil, yen) due to increase in accounts receivable and non-current assets. Liabilities: 131.9 bil. yen (up from 93.7 bil. yen) due to increase in accounts payable for construction contracts and lease obligations.
Slide 38: (4) Key Performance Indicators: Cash Flows, Cash and Debt
(4) Key Performance Indicators Cash Flows Units: bil. yen FYE March 2016 FYE March 2017 FYE March 2018 FYE March 2019 Operating cash flow 6.2 4.7 12.5 6.4 Investment cash flow - 3.6 - 11.1 - 10.0 - 13.5 Financial cash flow - 2.6 10.4 -3.6 - 1.9 Free cash flow 2.6 - 6.4 2.5 - 7.1 (Note) Free cash flo
Slide 39: Capital Expenditure, Shareholder Return Indicators, Capital-related Indicators
Capital Expenditure / Depreciation and Amortization FYE March 2020 Unit: bil. yen FYE March 2016 FYE March 2017 FYE March 2018 FYE March 2019 (Forecast) （18.4） （9.7） Capital expenditure 3.7 4.6 12.6 19.3 11.2 （3.5） （3.4） Depreciation and mortization 2.4 2.8 3.0 4.0 3.8 (Note) Figures in () from FYE
Slide 40: 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