Mirait One Corporation · TSE:1417
Mirait One — MIRAIT Holdings — FY2016 Earnings Presentation
41 slides from Mirait One's earnings presentation, May 10, 2017
Slide 1: Presentation on the Financial Results for the Fiscal Year Ended March 2017
Presentation on the Financial Results for the Fiscal Year Ended March 2017 May 10, 2017 MIRAIT Holdings Corporation
Slide 2: Table of Contents
Table of Contents I. Overview of the Financial Results for the Fiscal Year IV. Reference Materials Ended March 2017 1. Financial Results for the Fiscal Year Ended March 2016 3-4 1. Overview of MIRAIT Holdings 27 - 30 2. Summary by Business Category 5-6 2. Transformation into a “Comprehensive Enginee
Slide 3: I. Overview of the Financial Results for the Fiscal Year Ended March 2017
I. Overview of the Financial Results for the Fiscal Year Ended March 2017
Slide 4: 1. Financial Results for the Fiscal Year Ended March 2017
1. Financial Results for the Fiscal Year Ended March 2017 YoY Change Unit: bil. yen FYE March 2016 FYE March 2017 Key Highlights Amount % Orders received : Strong across all businesses, recording a historical high of 323.3 bil. Orders received 260.7 323.3 + 62.6 + 24.0% yen (up by 62.6 bil. yen YoY
Slide 5: Detailed Analysis of Net Sales and Operating Income
■ Detailed Analysis of Net Sales [YoY Comparison] ■ Detailed Analysis of Operating Income [YoY Comparison] NTT business: Increase in facility improvement proposals, optical work and facility management operations. Impact of increase in net sales due to M&A, etc.: +1.5 bil. yen Multi-carrier bu
Slide 6: 2. Summary by Business Category
2. Summary by Business Category ○positive factors ▲negative factors Item Key Highlights (Unit: billion yen) ○ Sales increased given proactive facility improvement proposals and the increase in optical work and facility management operations. ○ Promoted measures to improve productivity, such as the c
Slide 7: Summary by Business Category (continued)
○positive factors ▲negative factors Item Key Highlights (Unit: billion yen) ▲ Sales and profits decreased due to the drop in work for rechargeable batteries and electrical work. ▲ Sales and profits decreased due to absence of special demand for air conditioning work. Environmental & ▲ Work for recha
Slide 8: 3. Shareholder Returns
3. Shareholder Returns The Company’s basic policy is to pay dividends consistently, while taking the business performance, the dividend payout ratio, and other factors into consideration. Dividends in the fiscal year ended March 2017 was maintained at 30 yen per share (interim and year-end divid
Slide 9: 4. Quarterly Financial Results
4. Quarterly Financial Results FYE March 2016 FYE March 2017 FYE March 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net sales and operating income recorded historical Construction work carried lows in Q1 due to the decrease in construction work forward at the beginning of the Net sales and operating income re
Slide 10: II. Overview of New Mid-term Plan
II. Overview of New Mid-term Plan
Slide 11: 1. Overview of New Mid-term Plan
1. Overview of New Mid-term Plan ■ Business Environment ■ Basic Policy Changes in the Communication Expand the Company’s business domains to address changes in the social Changes in Social Structure structure and the telecommunications environment. Environment Transform the Company’s business mo
Slide 12: II. Business Plan for the Fiscal Year Ending March 2018
II. Business Plan for the Fiscal Year Ending March 2018
Slide 13: 1. Business Plan for the Fiscal Year Ending March 2018
1. Business Plan for the Fiscal Year Ending March 2018 YoY Change Unit: bil. yen FYE March 2017 FYE March 2018 Key Highlights Amount % 283.2 310.0 Net sales + 26.8 + 9.5% Net sales: Target of more than 300 bil. yen for the first time. Operating income also set （100％） （100％） to recover to 12.5 bil.
Slide 14: Detailed Analysis of Net Sales and Operating Income
■ Detailed Analysis of Net Sales [YoY Comparison] ■ Detailed Analysis of Operating Income [YoY Comparison] NTT business: Civil engineering and facility management operations should increase, but work for scheduled utility pole renewals is expected to decrease. Multi-carrier business: Work for adva
Slide 15: 2. Initiatives in the NTT Business
2. Initiatives in the NTT Business Respond flexibly to changes in content and volume of optical work on the back of the penetration of Hikari Coraboration※, despite the continued downward trend in NTT’s investment activities. Civil engineering and facility management operations set to increase,
Slide 16: NTT business net sales and productivity initiatives
Net sales growth in NTT business Initiatives to improve productivity ■ Breakdown of net sales ■ Consolidation of offices （Unit: bil. yen） Progress in efforts to reduce the number of offices by roughly 30% (approx. 98.2 95.0 Drop in net sales 70→50 locations), including those already completed in t
Slide 17: 3. Initiatives in the Multi-carrier Business
3. Initiatives in the Multi-carrier Business Expand sales by handling the pick-up in work for advancements in 4G and new frequencies, despite the slowdown in mobile carriers’ investment activities. Achieve sales and profit growth through efforts to complete projects and to smooth workload in the
Slide 18: Trends in the mobile business and global business
Trends in the mobile business Net sales growth in the global business FY2016 (Unit: bil. yen) ～end-FY2015 FY2017～ 2020～ 25.0 Usage of Penetration of Move toward full Move toward full Philippines, Sri Lanka network smart devices + penetration of IoT + penetration of AI approx.21.0 20.1 Lantrovision(S
Slide 19: 4. Initiatives in the Environmental & Social Innovation Business
4. Initiatives in the Environmental & Social Innovation Business In new energy, strengthen measures to attract construction work and O&M for roof-top solar power and mega-solar facilities. Focus on growing orders for infrastructure-related work (laying power lines underground, installing LEDs an
Slide 20: New energy-related initiatives and civil engineering
New energy-related initiatives Initiatives in civil engineering ■ Status of work for solar power ■ Status of work to lay power lines underground Tokyo is behind other major cities in the world in laying power lines underground. Targeting to install middle-solar facilities in 1,000 locations acro
Slide 21: 5. Initiatives in the ICT Solution Business
5. Initiatives in the ICT Solution Business Significant increase in work to resolve TV reception interference with the commencement of services in the 700MHz band. Net sales growth due to the full contribution of Lantrovision. Net sales growth in the software business on the back of M&A activi
Slide 22: 700MHz TV reception work and Lantrovision's strategy
Work to resolve 700MHz TV reception interference Lantrovision’s strategy and performance Asia’s largest company engaged in design, construction and maintenance of LAN cabling, etc., based in Singapore. On-going demand for work to resolve TV reception problems on the back of the launch ⇒Global ne
Slide 23: 6. Recent Initiatives for Business Expansion
6. Recent Initiatives for Business Expansion Expanding the “frontier domains” by actively engaging in strategic investments that leverage the technologies accumulated through the building of telecommunications infrastructure, which is MIRAIT’s core business at present. Actively engaging in allia
Slide 24: 7. Initiatives in New Solutions
7. Initiatives in New Solutions IoT business (wide-area wireless sensor network) Wi-Fi solutions Conducting verification test with Sensus Japan for a wide-area wireless sensor network that connects smart water meters using 280 MHz band wireless. ■ee-TaB* ⇒Preparing for next steps (tests using mult
Slide 25: 8. Initiatives to Build a Stronger Business Base
8. Initiatives to Build a Stronger Business Base Changing the safety/ work environment and workstyles Strengthening human resources ① Efforts to improve safety management ① Growing the number of qualified staff ・Establish “hard” and “soft” frameworks to ensure safety of workers ・Identify candidates
Slide 26: IV. Reference Materials
IV. Reference Materials
Slide 27: 1. Overview of MIRAIT Holdings (1) Company Overview
1. Overview of MIRAIT Holdings (1) Company Overview Established October 1, 2010 Paid-in capital 7 bil. yen President (CEO) Masatoshi Suzuki Shares 【Total outstanding shares】 85,381,866 shares Stock listing 1st Section of the Tokyo Stock Exchange (Code: 1417) Rating & Investment Information, Inc. (R&
Slide 28: 2. Establishment of the MIRAIT Group
2. Establishment of the MIRAIT Group MIRAIT Holdings Corporation was established in October 2010 through the management integration of Daimei, Commuture and TODENTSU, each of which had a history of more than half a century centered on building communication infrastructure in partnership with telec
Slide 29: (3) Business Categories
(3) Business Categories 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 ■
Slide 30: (4) The Company's Initiatives Since Establishment
(4) The Company’s Initiatives Since Establishment The management integration aims to strengthen the Group’s competitiveness and to create a robust management base by 5/2017 leveraging synergies. The following efforts have been implemented to date: Launch of 3rd Mid-term Plan (1) Strengthening of t
Slide 31: Transformation into a Comprehensive Engineering and Service Company
2. Transformation into a "Comprehensive Engineering and Service Company" (1) Expansion of Business Domains (Overview) Expand the "breadth" of our business domains → Expansion from upstream to downstream processes (planning, design, construction, maintenance, operation, etc.) Increase the "height
Slide 32: (2) Future Focus Areas (Frontier Domains)
(2) Future Focus Areas (Frontier Domains) Zone Smart Office Smart Town Smart House Domain Cloud & Networks • Security (Surveillance cameras, network monitoring) Cloud • Disaster prevention networks Stock business & • PBX (Cloud) Operations & • Sensor networks Networks Frontier Domains • LAN, Servers
Slide 33: 3. Changes in the Business Environment through 2020
3. Changes in the Business Environment through 2020 ■ Japan's Structural Problems ■ Evolution of communications technology Abenomics (departure from deflation, low ■ Changes in the Spread of smartphones and tablets birthrate and aging society, revitalization of ■ Changes in regional economies, e
Slide 34: Changes in the Communications Environment
■ Changes in the Communications Environment (Domestic) State of establishment of local government Wi-Fi - 2015 2016 2017 2020 - Installed Not installed Overall (n=1,273) 39.7% 60.3% Data volume Special admin cities 2010 × 1,000 times (n=39) 61.5% 38.5% Other cities (n=603) 44.8% 55.2% Core networks
Slide 35: 4. Changes in the Market Environment for the Mobile Business
4. Changes in the Market Environment for the Mobile Business - FY2016 FY2017 FY2018 - Spread of smartphones Rapid increase in data traffic Data offloading measures General mobile Expansion of frequency bands 2020 Tokyo Olympics and Measures to resolve poor reception Paralympics areas between subway
Slide 36: 5. Supplementary Financial Information (1) Historical Performance
5. Supplementary Financial Information (1) Historical Performance FYE March 2018 Unit: bil. yen FYE March 2014 FYE March 2015 FYE March 2016 FYE March 2017 (Plan) Orders received 282.0 293.6 260.7 323.3 310.0 Net sales 277.7 283.7 269.5 283.2 310.0 Gross profit 29.9 33.1 25.8 33.5 37.2 Gross profit
Slide 37: (2) Orders Received and Net Sales by Business Category
(2) Orders Received and Net Sales by Business Category YoY Change FYE March 2018 YoY Change Orders received FYE March 2016 FYE March 2017 (Plan) (%) (%) Unit: bil. yen （a） （b） （b）－（a） （c） （c）－（b） + 8.5 - 12.2 NTT Business 95.7 104.2 92.0 （+ 8.9%） （- 11.7%） + 15.5 - 4.1 Multi-carrier Business 73.1 88
Slide 38: (3) Assets, Liabilities and Net Assets
(3) Assets, Liabilities and Net Assets Total assets increased from 194.9 bil. yen to 218.0 bil. yen due to an increase in accounts receivable and goodwill, among others. Liabilities increased from 68.3 bil. yen to 89.2 bil. yen due to the issuance of convertible bonds (16.5 bil. yen), among othe
Slide 39: (4) Key Performance Indicators
(4) Key Performance Indicators Capital-related Indicators FYE March 2018 FYE March 2014 FYE March 2015 FYE March 2016 FYE March 2017 (Forecast) Equity ratio 63.0％ 63.8％ 63.1% 56.9% 58.0% Return on equity (ROE) 6.7％ 9.5％ 3.0% 5.2% 6.3% Shareholder Return Indicators FYE March 2018 FYE March 2014 FYE M
Slide 40: Cash Flows and Cash and Deposits/Interest-bearing Debt
Cash Flows Unit: bil. yen FYE March 2014 FYE March 2015 FYE March 2016 FYE March 2017 Operating cash flow 9.0 18.6 6.2 4.7 Investment cash flow - 2.7 - 3.8 - 3.6 - 11.1 Financial cash flow - 3.5 - 2.2 - 2.6 10.4 Free cash flow 6.3 14.8 2.6 - 6.4 (Note) Free cash flow = operating cash flow + investme
Slide 41: 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