Slide 1: FY2016 Consolidated Financial Results
EPCO Co .,Ltd. （Stock code：2311） FY2016 Consolidated Financial Results EPCO（HK）LTD February 10,2017 1
Slide 2: Part 1: FY2016 Results & FY2017 Forecast
2 Part 1 Description of FY2016 Results & FY2017 Forecast
Slide 3: EPCO Group Change of consolidated results
EPCO Group Change of consolidated results １ ■Preparations for business restructuring are completed for update of the highest-ever profit Breakthrough the Highest-ever （Units : Million JPY） （単位：百万円） profit 1000 4,000 3,299 3,406 3,270 3,050 3,131 800 3,200 828 Highest-ever Sales are Highest Sales of
Slide 4: FY2016 Overview of Result
FY2016 Overview of Result ２ ■ It goes through the bottom of achievements by the prior investment ,to profit recovery situation （Units : Million JPY） FY2016 Consolidated Financial FY2015 Vs Forecast Vs FY2016 Results Forecast Result Change Change Change Change （％） （％） Net Sales 3,131 3,243 3,270 ＋27
Slide 5: Effects on earnings of selection as a participant in subsidized projects
Effects on earnings of selection as a participant in subsidized projects ３ ■The incurrence of costs and the receipt of subsidies ended on March 31,2016 【General overview of costs incurred and subsidies received for all the subsidized projects】 【Effects on earnings for 1H FY2016 under review】 Amount
Slide 6: FY2016 Results, Year-on-Year Ordinary Income summary by Segment
FY2016 Results ,Year-on-Year Ordinary Income summary by Segment ４ ■Earnings in all segments improved steadily ■ FY2015 Result ■ FY2016 Result ⇒ Breakdown by segment Design Business increased profit factor （Units : Million JPY） ・Effect on increased productivity ＋50 ・Strong Yen increase the cost of Ch
Slide 7: Forecast for FY2017
Forecast for FY2017 ５ ■Increasing continuously in sales and profit for FY2017 Consolidated profit and loss FY2016 FY2017 Year-on- （Units : million JPY %） Results Forecast Year(%) 1H 2H 1H 2H 1,60 Net Sales 1,669 3,270 1,569 1,837 3,406 ＋4.2％ 0 ▲20 Operating Income 293 92 172 354 527 ＋470.7％ 0 Ordina
Slide 8: Overview of Earnings by Segment ①: Design Consulting Business
Overview of Earnings by Segment ①〜Design Consulting Business 〜 ６ 【Business outline】 The service which achieves a design, reduction in construction cost and improvement of the construction quality by consulting on standardization from construction and equipment Design to a delivery of a part targeted
Slide 9: Overview of Earnings by Segment ②: Customer Support Business
Overview of Earnings by Segment ②〜Customer Support Business 〜 ７ 【Business outline】 Itʼs to keep call center operation which corresponds to a question about housing in general and analyze an offer of a customer management system and customer information targeted for the existing house, and reduction
Slide 10: Overview of Earnings by Segment ③: Smart Energy Business
Overview of Earnings by Segment ③〜Smart Energy Business 〜 ８4 【Business outline】 We provide application service and an energy saving reform service in B to B to realize energy saving and power saving in the home while liberalization of retail electricity in April 【Main Customer】 PV panel maker, stora
Slide 11: Forecast for FY2017 in Ordinary Income by segment 1H comparison
Forecast for FY2017 in Ordinary Income by segment 1H comparison 9 ■ The main increase profit factor is improvement of energy business ■ FY2016 ■ FY2017 （Units : Million JPY） ⇒ Breakdown by segment Energy business increasing profit factor 800 712 717 ・Effect on increased sales ＋45M 600 529 ・Decrease
Slide 12: Target for management index (ROE)
Target for management index（ROE） 10 ■ Target for management index ROE 15% 【ROE Target figure in elements】 Current profit Current profit Net sales Gross assets ＝ × × Equity capital Net sales Gross assets Equity capital Ratio of net profit ROE to net sales Gross assets ratio Financial leverage 15% １ro
Slide 13: About a shareholder return policy of EPCO
About a shareholder return policy of EPCO 11 ■ Purchase of treasury stock From March 15,2016 to June 30,2016 the company purchased treasury stock. An outline of the purchase is as follows ・Number of shares purchased:12,600 (acquisition price:13 million yen) （Reference）Treasury stock as of June 30,20
Slide 14: Part 2: EPCO's Business Strategy in the Mid-to-Long Term
14 Part 2 EPCOʼs Business Strategy in the Mid-to-Long Term
Slide 15: Directivity of housing market: Government Policy of Low carbonized house
Directivity of housing market：Government Policy of Low carbonized house in household sector （MOE, MILT) 12 2017 2018 2019 2020 2030 Separation of Deregulation FIT expiration Power Market environment of Gas House Grid Parity Power production and supply New- Low build ZEH Over 50% Target ZEH 100% Carb
Slide 16: Mid-to-Long Term Roadmap for the ZEH Business
Mid-to-Long Term Roadmap for the ZEH Business (Scheme） 13 16 ・Developing Government-led ZEH service in accordance with house low carbonize schedule ・Cooperated with housing companies, offering ZEH design and maintenance service in the new-build and reform field 2017 2018 2019 2020 2030 Deregulation
Slide 17: ZEH Business Model (Newly-built Model)
ZEH Business Model （Newly-built Model） 14 Newly-Built detached house ZEH service model ZEH Design for New-build detached house （ZEH・ Nearly-ZEH） Sales Market Scale(2020) ZEH Design Market Scale 18billion yen Design expense：About 100.000yen/unit Major house maker Backbone builder （①〜⑤） （Design result
Slide 18: ZEH Business Model (Existing house model)
ZEH Business Model（Existing house model） 15 ZEH Design for Existing house ZEH reform Service Model Sales Market Scale(2020) （Electric ・PV・Storage Battery・EV・HEMS Major house maker ZEH Service Market Scale : 7billion yen (Management Backbone builder Service expense: About 35000yen/unit (Management Re
Slide 19: Reference materials
Reference materials | Energy Plan Company
Slide 20: FY2015 Results Sales by Segment
FY2015 Results Sales by Segment 16 (Units : Million JPY) FY2015 FY2016 Vs 2015 FY2016 Vs Segment Forecast Result 1H 2H Result （％） Forecast （％） Design Consulting Business 2,172 1,078 1,154 2,233 ＋2.8 2,218 ＋0.7 Plumbing system Design 1,574 766 850 1,616 ＋2.7 1,609 ＋0.4 Electric system Design 184 100
Slide 21: Changes in New Home Construction and Design Commissions
Changes in New Home Construction and Design Commissions 17 Changes in New Low-Rise Home Construction (*1) 【Change in New Low-Rise Home Construction by Quarter】 (Unit: Homes) (Unit : Homes) (Unit: Homes) Jul 2014-Jun 2015 Jul 2015-Jun 2016 By Period Year-on- 70,000 2015/Jan〜2015/Dec 15年1月～15年12月 2016
Slide 22: Forecast for FY2017 Sales Overview by Segment
Forecast for FY2017 Sales Overview by Segment 18 ■Increase of the Sales amount by the business diversification Segment FY2016 FY2017 Year-on- (Units:Million JPY) （Unit : million JPY) 1H 2H Result 1H 2H Forecast Year(%) Design Consulting Business 1,078 1,154 2,233 1,085 1,236 2,321 ＋88 Plumbing syste
Slide 23: Consolidated B/S (Balance Sheet) position
Consolidated B/S（Balance Sheet）position 19 ■Increasing a present balance by a profit recovery and the subsidy income Item End of FY2015 End of FY2016 Vs （Units : Million JPY） Component Component Year-on- Amount Ratio Amount Ratio year Current assets 2,617 78.7% 2,752 81.3％ +134 Cash and deposits (1,
Slide 24: Consolidated CF (Cash flow) position
Consolidated CF（Cash flow）position 20 ■FY2016 Free CF Increase significantly Item Average （Units : Million JPY） FY2013 FY2014 FY2015 FY2016 Result Result Result Result CF from Operating activities 574 151 173 802 425 CF from investing activities ▲270 ▲361 ▲136 ３ ▲191 Free CF 303 ▲209 36 805 234 CF f
Slide 25: Participation in Large-Scale HEMS Information Infrastructure Project
Participation in Large-Scale HEMS Information Infrastructure Project 21 [Purposes] (1) Installing HEMS equipment and testing technology (including collecting and analyzing electric power data) Expertise is accumulated. (2) Testing service using HEMS data for home use Service is limited. (3) Cons
Slide 26: Participation in Renewable Energy Local Production for Local Consumption Promotion Project
Participation in Renewable Energy Local Production for 26 22 Local Consumption Promotion Project in the Entire Region [Purposes] (1) Improving business profitability by overcoming the instability of renewable energy supply through supply and demand adjustments using storage batteries Examining the
Slide 27: Feasibility Study on Local Consumption-Type Smart Community in Naha City
Participation in a Feasibility Study on a Local Production for 23 2712 9 Local Consumption-Type Smart Community in Naha City [Purposes] A feasibility study on a power retailing project where a local government is involved and a local gas company and a local consumer cooperative participate Accumul
Slide 28: Caution
Caution The forward-looking statements in this document, including forecasts, are based on information that the Company has obtained and certain assumptions that the Company considers reasonable. Actual results may differ significantly due to a number of factors. The Company does not guarantee their