Slide 1: Briefing on Results for Fiscal Year 2019
Briefing on Results for Fiscal Year 2019 －January to December 2019－ February 14, 2020 © 2020 CAC Holdings Corporation
Slide 2: Agenda
Agenda Ⅰ. Overview of Financial Results for FY2019 Ⅱ. Revision of Medium-Term Strategy for FY2021 Ⅲ. Forecasts for FY2020 © 2020 CAC Holdings Corporation 1
Slide 3: Overview of Financial Results for FY2019
Ⅰ. Overview of Financial Results for FY2019 © 2020 CAC Holdings Corporation
Slide 4: Overview of Consolidated Results (Year on Year)
Overview of Consolidated Results (Year on Year) (JPY mil.) YoY Change FY2018 FY2019 Amount ％ Net sales 49,906 50,683 +776 +1.6% Gross profit 10,481 10,558 +76 +0.7% (profit margin) 21.0% 20.8% (0.2)pt SG & A 9,054 9,243 +188 +2.1% Operating income 1,426 1,314 (112) (7.9%) (profit margin) 2.9% 2.6% (
Slide 5: Net Sales and Operating Income by Segment (Consolidated)
Net Sales and Operating Income by Segment (Consolidated) Net sales (JPY mil.) FY2018 FY2019 YoY Amount vs Total Amount vs Total Amount ％ Domestic IT 29,623 59.4% 31,653 62.5% +2,030 +6.9% Overseas IT 9,280 18.6% 10,461 20.6% +1,181 +12.7% CRO 11,002 22.0% 8,568 16.9% (2,434) (22.1%) Total 49,906 100
Slide 6: Net Sales by Industry (Consolidated)
Net Sales by Industry (Consolidated) (JPY mil.) FY2018 FY2019 YoY Amount vs Total Amount vs Total Amount % Financial services 6,107 12.3% 5,621 11.1% (486) (8.0%) Trust banks 4,359 8.7% 5,623 11.1% +1,263 +29.0% Phamaceuticals 16,116 32.3% 14,190 28.0% (1,926) (12.0%) Food services 2,852 5.7% 2,956
Slide 7: Orders and Order Backlog by Segment (Consolidated)
Orders and Order Backlog by Segment (Consolidated) Orders Received (JPY mil.) YoY FY2018 FY2019 Amount ％ Domestic IT 29,588 32,332 +2,744 +9.3% Overseas IT 11,206 10,060 (1,145) (10.2%) CRO 9,376 8,406 (970) (10.3%) Total 50,171 50,799 +628 +1.3% Order Backlog YoY FY2018 FY2019 Amount ％ Domestic IT
Slide 8: Orders received by Industry (Consolidated)
Orders received by Industry (Consolidated) Orders Received (JPY mil.) YoY FY2018 FY2019 Amount ％ Financial services 6,608 5,811 (796) (12.1%) Trust banks 4,209 6,198 +1,988 +47.2% Phamaceuticals 14,257 14,156 (100) (0.7%) Food services 2,804 2,903 +99 +3.6% Manufacturing 3,828 4,555 +727 +19.0% Serv
Slide 9: Transition of Consolidated Results by Quarter
Transition of Consolidated Results by Quarter © 2020 CAC Holdings Corporation 8
Slide 10: Revision of Medium-Term Strategy for FY2021
Ⅱ. Revision of Medium-Term Strategy for FY2021 © 2020 CAC Holdings Corporation
Slide 11: Outline of the CAC Group
Outline of the CAC Group Roll out IT & healthcare services in Japan and overseas Net sales Appr. 50 JPY bil. Subsidiaries Overseas Net sales 9 countries 22 companies Appr. 20 % © 2020 CAC Holdings Corporation
Slide 12: Medium-Term Strategy (Determination21)
Medium-Term Strategy (Determination21) Aiming to be a corporate group that is able to respond to digital transformation (DX) Basic Policy (from FY2019) - Strengthening corporate governance by separating management and execution - Seeking the mobile implementation of business by achieving consistency
Slide 13: Progress to Medium-Term Strategy (Determination21)
Progress to Medium-Term Strategy (Determination21) Improving ● Domestic IT: Profitability improved as planned 〇 profitability of existing ● Overseas IT: Profitability enhancement delayed △ businesses ● CRO: Profit decreased considerably due to a massive fall in sales × △ ● Investment in companies wi
Slide 14: Actions Towards FY2021
Actions Towards FY2021 Construct a high-revenue model Increase the profitability of the overseas IT business, which contributes a growing portion of the Group’s net sales India: Accelerate business restructuring and revisions to business models China: Boost sales in the Chinese domestic market ASEAN
Slide 15: Actions Towards FY2021: Digital Transformation (DX)
Actions Towards FY2021 Press ahead intensively with initiatives for digital transformation (DX) Offer proper and sustainable services in the age of DX • Accelerate agile development • Step up the model of co-creation with customers • Integrate the CRO business with digital technologies in the Group
Slide 16: Revision to Target Values for FY2021
Revision to Target Values for FY2021 Before the revision After the revision Target values Target values Net sales 70 billion yen Net sales 55 billion yen Operating income 4 billion yen Operating income 3 billion yen plus extra from investment and financial 8 8 strategies ROE % ROE % © 2020 CAC Holdi
Slide 17: Consolidated target figures (by segment)
Consolidated target figures (by segment) (JPY mil.) FY2019 FY2020 FY2021 Result Forecast Goal Domestic Net Sales 317 320 330 IT Operating Income 16 14 17 VS Total 5.2% 4.4% 5.2% Overseas Net Sales 105 130 140 IT Operating Income (0) 5 8 VS Total (0.4%) 3.3% 5.0% CRO Net Sales 86 70 80 Operating Inco
Slide 18: Dividend Policy for FY2020
Dividend Policy for FY2020 ✔ Increase capital efficiency and continue to positively return profits to shareholders ✔ Increase the dividend for FY2020 by 10 yen per share, to 60 yen per share ✔ Study specific measures for future returns to shareholders in the framework of investment and financial str
Slide 19: Forecasts for FY2020
Ⅲ. Forecasts for FY2020 © 2020 CAC Holdings Corporation
Slide 20: Results Forecasts for FY2020
Results Forecasts for FY2020 (JPY mil.) FY2019 FY2020 YoY Result Forecasts Net sales 50,683 52,000 +2.6% Operating income 1,314 2,000 +52.1% (profit margin) 2.6% 3.8% Ordinary income 1,257 1,900 +51.1% (profit margin) 2.5% 3.7% Net income 1,500 1,400 (6.7%) (profit margin) 3.0% 2.7% © 2020 CAC Holdi
Slide 21: Results Forecasts by segment for FY2020
Results Forecasts by segment for FY2020 Net sales (JPY mil.) FY2019 FY2020 Forecasts YoY amount vs Total amount vs Total amount % Domestic IT 31,653 62.5% 32,000 61.5% +346 +1.1% Overseas IT 10,461 20.6% 13,000 25.0% +2,538 +24.3% CRO 8,568 16.9% 7,000 13.5% (1,568) (18.3%) Total 50,683 100.0% 52,00
Slide 22: Reference: Major News in the Second Half of the Fiscal Year (1/3)
Reference: Major News in the Second Half of the Fiscal Year (1/3) Aug. 20, CAC commences collaboration with Dotmatics in drug development 2019 informatics. CAC signs a sales agent agreement with Dotmatics Limited (hereinafter “Dotmatics”), which engages in drug development informatics, to embark on
Slide 23: Reference: Major News in the Second Half of the Fiscal Year (2/3)
Reference: Major News in the Second Half of the Fiscal Year (2/3) Sep. CAC signs sales agent agreement with Brains Technology for 12, Neuron enterprise search engine. 2019 - Supporting the improvement of knowledge workers’ productivity - CAC signs a sales agent agreement with Brains Technology, Inc.
Slide 24: Reference: Major News in the Second Half of the Fiscal Year (3/3)
Reference: Major News in the Second Half of the Fiscal Year (3/3) Oct. 28, CAC jointly develops smile training app based on emotion 2019 recognition AI with Recruit Staffing. - Smile training service for temporary staff launched by Recruit Staffing on Mon., Oct. 28 - CAC and Recruit Staffing Co., Lt
Slide 25: Enterprise Value Up Group, Corporate Planning Division
Enterprise Value Up Group, Corporate Planning Division Tel: 03-6667-8010 E-mail: prir@cac.co.jp https://www.cac-holdings.com/ CAC Group helps disseminate and develop Boccia, a sport for the disabled. © 2020 CAC Holdings Corporation