Mirait One Corporation · TSE:1417
Mirait One — MIRAIT Holdings — Investor Presentation (March 2013)
45 slides from Mirait One's investor presentation, March 2013
Slide 1: Presentation Materials
Presentation Materials March 2013 MIRAIT Holdings Corporation
Slide 2: Contents
Contents I. Overview of the MIRAIT Group IV. Financial Overview 1. Message from the President 3 1. Financial Overview 28 2. Overview of MIRAIT Holdings 4 2. Details of Net Sales 29 3. Formation of the MIRAIT Group 5 3. Details of Operating Income 29 4. Business Composition 6 4. Dividend Policy 30 5.
Slide 3: I. Overview of the MIRAIT Group
I. Overview of the MIRAIT Group MIRAIT Holdings Corporation
Slide 4: 1. Message from the President
1. Message from the President The explosive spread of smartphones and the rapid rise of cloud computing to integrate networks and computers are driving technological innovation forward along with the diversification and sophistication of services at an unprecedented pace in the information and telec
Slide 5: 2. Overview of MIRAIT Holdings
2. Overview of MIRAIT Holdings Establishment October 1, 2010 Capital stock 7 billion yen President (CEO) Masatoshi Suzuki [Total outstanding shares] 85,381,866 shares Shares [Unit] 100 shares Listed securities exchanges Tokyo Stock Exchange & Osaka Securities Exchange , First Section (Code No.: 1417
Slide 6: 3. Formation of the MIRAIT Group
3. Formation of the MIRAIT Group In October 2010, a management integration was carried out by Daimei Telecom Engineering Corporation, Commuture Corporation and TODENTSU Corporation, which had conducted business creating communication infrastructure for over half a century as partners of telecommun
Slide 7: 4. Business Composition
4. Business Composition The Group conducts business in a wide range of areas including ICT, the environment and energy, based on the creation of communication infrastructure (fixed communication and mobile communication) that is its main business. (1) Business content (3) Net sales by business Bus
Slide 8: 5. Business Overview (1) NTT Business
5. Business Overview (1)NTT Business Construction, maintenance and operation of fixed communication facilities of the NTT Group. Centered on the Greater Tokyo and Kansai regions. The Company's core business, accounts for 47.2% of net sales. Net sales and composition User (FYE Mar 2012) NTT excha
Slide 9: (2) Mobile Business
(2) Mobile Business Nationwide works on construction, maintenance and operation of communications facilities of all mobile carriers such as NTT DoCoMo, KDDI, Softbank and eAccess. This accounts for 25.6% of net sales. Net sales and composition (FYE Mar 2012) Mobile carriers Outdoor mobile Indoor
Slide 10: (3) ICT / Civil Engineering Business
(3) ICT / Civil Engineering Business The growing business which serves as an engine to become a “Comprehensive Engineering and Services Company". ICT : Supports our clients to create the ICT infrastructure. Consists 11.3% of net sales of FY 2012. Civil Engineering : Offers the comprehensive solu
Slide 11: Building Management and Solutions Offered by MIRAIT Group
■ Building Management and Solutions Offered by MIRAIT Group Air conditioning, hygienic and Wireless communication access energy-saving point(Wi-Fi・IMCS) solutions Wireless AP (Wi-Fi IMCS) Air conditioning Solar power system Creating Contact Center Solar power system, LED lighting Monitoring cameras
Slide 12: 6. Structural shift towards the Comprehensive Engineering and Services Company
6. Structural shift towards the “Comprehensive Engineering and Services Company” Promoting our structural shift towards the “Comprehensive Engineering and Services Company” by integrating our technologies obtained from creating telecommunication infrastructure and ICT/Civil engineering business
Slide 13: 7. Group Formation
7. Group Formation In NTT and Mobile business, MIRAIT and MIRAIT Technologies bear total responsibility including designing, quantity survey, operational management, while subsidiaries and subcontracting companies undertake the construction works. In ICT/Civil Engineering business, there are cas
Slide 14: II. Business Environment
II. Business Environment MIRAIT Holdings Corporation
Slide 15: 1. NTT business
1. NTT business Capital expenditures of NTT East & West are slowing down along with decreasing demand for fixed-line phones and blunting of contract numbers for optical-fiber service Pole renewal is consistent as planned while conventional work is in declining trend. Networking needs will increa
Slide 16: 2. Mobile business
2. Mobile business Mobile carriers’ capital expenditures are increasing to keep pace of growing traffic associated with wide spread of smart phones All mobile carriers introduced LTE method in FY 2011. Their capital expenditure has been accelerating in FY 2012 Acceleration in removal works of
Slide 17: Trends among mobile carriers
Trends among mobile carriers Since the start of FYE 2012, mobile carriers have been fully implementing LTE services. Mobile phone services using new frequency bands have also been started There are also plans to proceed with services in new frequency bands and LTE-Advanced from FY2014 onwards
Slide 18: 2. ICT / Civil Engineering Business
2. ICT / Civil Engineering Business Expanding demands for cloud, data center business and creation of service platform, etc Expanding demands for new energies such as solar power facilities, etc. after the Earthquake Expanding demands for Wi-Fi facilities due to the rapid spread of smart phone
Slide 19: III. Medium-term Management Plan and Specific Efforts
III. Medium-term Management Plan and Specific Efforts MIRAIT Holdings Corporation
Slide 20: 1. Medium-term Management Plan (FYE March 2011 – March 2014)
1. Medium-term Management Plan (FYE March 2011 – March 2014) Net sales is planned to be 280 billion yen and operating income is planned to be 12 billion yen (over 4%) in the year ending in March 2014, the final year of the Mid-term Management Plan published in May 2010. In ICT / Civil Engineering
Slide 21: 2. Perspectives of the Management Plan
2. Perspectives of the Management Plan Sustainable improvement of corporate value while growing as the “Comprehensive Engineering and Services Company” Promote of active shift of business portfolio while strengthening ICT / Civil Engineering business area (Note) Net sales indicates the trends fr
Slide 22: 3. Efforts in the NTT Business
3. Efforts in the NTT Business Sharing and standardization of the business processes to create an optimal implementation and improve productivity, amid the trend of declining sales associated with the maturing of fixed communications. Development of areas surrounding existing businesses (airport
Slide 23: 4. Efforts in the Mobile Business
4. Efforts in the Mobile Business Expanding through active responses to more diverse and advanced mobile communications (accelerating implementation of LTE and the reorganization of frequency bands) By optimizing operations through management integration, the work organization has been strengthe
Slide 24: 5. Efforts in the ICT/Civil Engineering Business
5. Efforts in the ICT/Civil Engineering Business Assigning management resources to growing markets (cloud computing, the environment and new energy) and achieve growth in the key areas of our business portfolio. Promoting the expansion of business areas. Also actively engaged in expanding our ne
Slide 25: Reference: Software and Solar power
■ Reference [Software] [Solar power] Promoting the software business and strengthen both quality and Increasing the orders received in accordance with the demand quantity of engineers for new energies after the earthquake Increasing ICT engineers in the field of server/networking Already rec
Slide 26: 6. Exploitation of New Business Fields through M&A
6. Exploitation of New Business Fields through M&A In ICT, we intend to exploit new business fields mainly in upper layer (software, cloud, etc.) In Civil Engineering, we will expand the business domain around the existing areas ICT Clients, Market Civil Engineering (Contribution to net sales 4.
Slide 27: 7. Creation of Integration Effects through Business Reorganization
7. Creation of Integration Effects through Business Reorganization Integration of personnel, compensation and accounting system according to the business reorganization Integration of systems (accounting, personnel, ordering, materials) into one and expansion of implementation in subsidiaries
Slide 28: IV. Financial Overview
IV. Financial Overview Third Quarter of FYE March 2013 MIRAIT Holdings Corporation
Slide 29: 1. Financial Overview (Third Quarter of FYE March 2013)
1. Financial Overview (Third Quarter of FYE March 2013) Net sales increased by 25.2 billion yen to 178.6 billion yen, due to strong performance centered on the mobile business. Operating income increased by 5.2 billion yen to 5.7 billion yen, due to increased net sales and improvements in gross
Slide 30: 2. Details of Net Sales / 3. Details of Operating Income
2. Details of Net Sales [YoY Comparison] 3. Details of Operating Income [YoY Comparison] All businesses are performing well Increased by 2.4 billion yen due to increasing net sales Increased significantly in the mobile business due to the The gross margin increased from 9.5% to 10.9% due to
Slide 31: 4. Dividend Policy / 5. Assets, Liabilities and Net Assets
4. Dividend Policy For FYE March 2013, the interim dividend is per share 10 yen (December 2012) and the year-end will be 10 yen (June 2013). Annual dividend per share will be kept at 20 yen for this fiscal year, as same amount as last fiscal year 5. Assets, Liabilities and Net Assets Equity rati
Slide 32: V. Reference Materials
V. Reference Materials MIRAIT Holdings Corporation
Slide 33: 1. Performance
1. Performance FYE March 2013 Units: billions of yen FYE March 2009 FYE March 2010 FYE March 2011 FYE March 2012 (Forecast) Orders received 272.7 252.9 241.3 252.0 261.3 Net sales 263.3 255.2 246.6 236.0 265.0 Gross profit 30.8 27.8 24.3 24.0 27.4 Gross profit ratio 11.7% 10.9% 9.9% 10.2% 10.4% SG&A
Slide 34: 2. Orders Received and Net Sales by Business Category
2. Orders Received and Net Sales by Business Category FYE March 2012 FYE March 2013 FYE March 2012 FYE March 2013 YoY Orders received 3Q actual results 3Q actual results (YoY Change) Full-year Results Progress Full-year Plan YoY Progress Units: billions of yen (YoY Change) (a) (b) (b)-(a) (c) (a)/(c
Slide 35: 3. Key Performance Indicators
3. Key Performance Indicators Capital-related Indicators FYE March 2013 FYE March 2009 FYE March 2010 FYE March 2011 FYE March 2012 (Forecast) Equity ratio 60.9% 65.1% 66.5% 65.3% 65.6% Return on equity (ROE) 4.6% 5.7% 3.8% 3.3% 3.2% Shareholder Return Indicators FYE March 2013 FYE March 2009 FYE Ma
Slide 36: Cash Flows, Cash and Deposits, Capital Expenditure
Cash Flows Units: billions of yen FYE March 2009 FYE March 2010 FYE March 2011 FYE March 2012 Operating cash flow 10.9 0.8 3.6 5.4 Investment cash flow - 2.9 - 3.6 0.4 - 2.3 Financial cash flow - 4.3 - 7.9 - 7.1 - 2.1 Free cash flow 8.0 - 2.8 4.0 3.1 Cash and Deposits/ Interest-bearing Debt Units: b
Slide 37: 4. Executive Officers
4. Executive Officers Outside Position Name Bio Officer Chairman, Senior Executive Vice President, Nippon Telegraph and Telephone East Goro Yagihashi Representative Director Corporation President and CEO Masatoshi Suzuki Senior Executive Vice President, NTT DOCOMO, Inc. Senior Executive Vice Fumio T
Slide 38: 5. Share Information (1) Major Shareholders
5. Share Information (1) Major Shareholders (As of Sep. 30, 2012) Number of Shareholding Name of Shareholder Shares Held Ratio Shareholder Composition (thousands) (%) Sumitomo Electric Industries, Ltd. 16,236 19.0% The Master Trust Bank of Japan, Ltd. (Trust Account) 5,174 6.1% Treasury stock, etc.
Slide 39: (2) Share Price
(2) Share Price (After inauguration of MIRAIT Holdings on October 1st 2010) <1> Share price and volume （Unit： yen） 1,000 Share price as of February 28, 2013 February 8, 2013 ■ Share price 901 yen 927 yen (highest) ■ PER 22.5 October 1st, 2010 800 553 yen ■ PBR 0.7 ■ Dividend yield 2.2％ 600 March 15,
Slide 40: 6. Overview of Major Subsidiaries
6. Overview of Major Subsidiaries (1) Overview of Major Subsidiaries MIRAIT Corporation MIRAIT Technologies Corporation Capital stock 5.6 billion yen 3.8 billion yen President (CEO) Masatoshi Suzuki Fumio Takaesu Main Businesses Communication engineering business, etc. Communication engineering busi
Slide 41: (2) Assets/Liabilities/Net assets
(2) Assets/Liabilities/Net assets (As of December 31, 2012) (Units: billions of yen) MIRAIT Corporation MIRAIT Technologies Corporation Item Amount Item Amount Item Amount Item Amount Assets Liabilities Assets Liabilities Current assets 68.5 Current liabilities 25.3 Current assets 38.9 Current liabi
Slide 42: 7. Current State of the Industry
7. Current State of the Industry (As of February 2013) Communications construction companies are made up of three nationwide groups (MIRAIT, COMSYS, Exeo), and nine regional companies. In recent years, a realignment of the industry has been carried out by these companies. Electrical construction
Slide 43: 8. Positions in the Industry after the Formation of MIRAIT Group
8. Positions in the Industry after the Formation of MIRAIT Group MIRAIT Holdings established with the management integration of the three companies had net sales of 236 billion yen in the FYE March 2012, approaching the scale of the two largest companies (COMSYS and Exeo). Growing into one of the
Slide 44: Corporate Philosophy
Corporate Philosophy Basic Management Philosophy Origin of the Company Name Three Ideas Imbued in the Logo 1. Strive to be a leading Japanese corporation MIRAIT -- A comprehensive engineering & services 1. Expand the "breadth" of our business that realizes the highest levels of customer company that
Slide 45: Notes
Notes 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 and briefing due to changes in