Slide 1: Q2 FY2014 Consolidated Financial Results
Q2 FY2014 Consolidated Financial Results (Six months ended June 30,2014) EPCO CO., LTD. Copyright © 2014 EPCO CO., LTD. ALL RIGHTSs Reserved.
Slide 2: Contents
Contents 【Part 1】 Consolidated Results For First Half Fiscal Year 2014 1 Forecast For Fiscal Year 2014 9 【Part 2】 Introduction of EPCO 13 Reasons for EPCO’s Involvement in Energy 17 Status of Liberalization of Electricity Retailing for General Consumers 20 in the United Kingdom About the “Enechange”
Slide 3: Consolidated Results For First Half Fiscal Year 2014
Consolidated Results For First Half Fiscal Year 2014 1 ■ Profit from Existing businesses increased, while profit from new businesses decreased due to prior investment (Units: Million JPY) FY2014 1H Consolidated FY2013 1H Vs. forecast Vs. FY2013 1H Financial Results result forecast result Percent Per
Slide 4: Change in Sales by Segment
Change in Sales by Segment ２ ■ Increased income in customer businesses lead to securing overall sales equivalent to those of FY2013 1H. (Units: Million JPY) FY2013 1H FY2014 1H FY2014 1H FY2013 Segment Vs. FY2013 1H Vs. forecast result result forecast result Design Consulting 990 1,008 ＋1.8% 1,114 ▲
Slide 5: Changes in New Home Construction and Design Commissions
Changes in New Home Construction and Design Commissions ３ 【Changes in New Low-Rise Home Construction (*1)】 【 Changes in New Low-Rise Home Construction By Quarter】 (Unit: Homes) (Unit: Homes) Jul 2012‐Jun 2013 Jul 2013‐Jun 2014 80,000 Decreasing By Period trend after Jul 2012~ Jul 2013~ 70,000 Change
Slide 6: FY2014 1H Results by Segment ① Design Consulting
FY2014 1H Results by Segment ①~ Design Consulting ~ ４ 【Vs. FY2013 1H】 (Units: Million JPY) ・New Home Construction is Declining Operating Income (See P.3 Material) Sales Sales External ・Exchange Rate: Chinese Yuan, Vs. FY2013 1,200 +17M 450 Environment 1H (FY2014 1H:16.56 JPY/CNY (＋6.6%) 990 +1.8% 1,
Slide 7: FY2014 1H Results by Segment ② Customer Support
FY2014 1H Results by Segment ②~ Customer Support ~ ５ 【Vs. FY2013 1H】 (Units: Million JPY) ・The Customer Support Business is a service Sales Operating Income for established homes, and therefore changes Sales External of new home construction have no effect 400 +73M 140 Environment ・There is high int
Slide 8: FY2014 1H Results by Segment ③ Smart Energy
FY2014 1H Results by Segment ③~ Smart Energy ~ ６ 【Vs. FY2013 1H】 (Units: Million JPY) Due to the of electricity retailing for general consumers in 2016 (7.5 trillion JPY worth of Sales 売上高 Operating 営業利益Income market opening), many private-sector External businesses and municipalities have 150 Envir
Slide 9: FY2014 1H Operating Income Change Analysis (Vs. FY2013 1H)
FY2014 1H Operating Income Change Analysis (Vs. FY2013 1H) ７ ■ Prior Investment into the Smart Energy Business in Anticipation of Selection for the Large-Scale HEMS Information Infrastructure Project Increased Profits Decreased Profits in Existing in New (Units: Million JPY) Businesses＋26M Businesse
Slide 10: FY2014 1H Operating Income Change Analysis (Vs. forecast)
FY2014 1H Operating Income Change Analysis (Vs. forecast) ８ ■ Operating Income Not Achieved Due to the Following Two Factors Factor ①:External Factor ②:Internal (Units: Million JPY) Business Environment Business Environment Decreased new construction due to a Prior Investments into the Smart Energy
Slide 11: Forecast for fiscal year 2014
Forecast for fiscal year 2014 ９ ■ Forecast for FY2014 was revised in consideration of the external and internal environment. Consolidated FY2014 FY2014 Financial Results Forecast Forecast Change 1H 2H 1H 2H (Units: Million JPY, %) In Feb. In Aug. Net Sales 1,602 1,703 3,305 1,514 1,579 3,093 ▲6.4% O
Slide 12: Sales Forecast by Segment (Revised)
Sales Forecast by Segment (Revised) 10 Segment FY2014 Forecast FY2014 Forecast Change (Units: Million JPY) 1H 2H In Feb. 1H 2H In Aug. Design Consulting 1,114 1,066 2,180 999 1,010 2,009 (▲7.8%) Waterworks Equipment 835 797 1,633 756 750 1,506 (▲7.8%) Design Electrical Equipment 117 109 227 94 95 18
Slide 13: FY2014/12 Analysis of Fluctuations in Operating Income (Vs. forecast)
FY2014/12 Analysis of Fluctuations in Operating Income (Vs. forecast) 11 ■ Revision of Performance By Acceleration of Prior Investments in Order to Speed Up Growth Factor①:External Business Factor②:Internal Business Environment Environment (Units: Million JPY) Decreased new construction due to a reb
Slide 14: Dividend Payments to Shareholders
Dividend Payments to Shareholders 12 ■ No Change to Predicted Dividends for FY2014 (Unit: JPY/Share) Sufficient cash on hand for business has been accumulated (Unit: %) ⇒ Maintaining Dividend Level of FY2013 (Predicted Dividend Payout Ratio 91.8%) 60.0 100.0 90.0 50.0 80.0 70.0 40.0 60.0 30.0 50.0 4
Slide 15: Introduction of EPCO
13 Introduction of EPCO ©2014 EPCO Co., Ltd. ALL RIGHTS RESERVED.
Slide 16: EPCO's Strength: The high ability of Our Business Services
Performance of Platform Company 14 The trust that major housing companies and housing equipment makers put in us is proof of our excellent performance in the field of homes and housing. Our prowess in residential solar 14%, 100,000 home market Customer Management for power design and generation shar
Slide 17: Overview of the Smart Energy Company
Overview of the Smart Energy Company 15 We Provide the Residential Smart Energy Service, Leveraging Our IT x Design x Customer Management Know-how Cultivated in the Housing/Home Field. Energy Management Service HEMS Service Big Data Service EPCO is Collaborating With Domestic and International Compa
Slide 18: Business Bases
Business Bases 16 With anticipated further expansion of the Smart Energy Company due to the deregulation of electricity retailing, the Tokyo base will be moved and expanded in November. Tokyo Okinawa Each Company/Head Office Design ・Customer Management Center Expansion and Moving Hong Kong Shenzhen
Slide 19: Reasons for EPCO's Involvement in Energy
17 Reasons for EPCO’s Involvement in Energy ©2014 EPCO Co., Ltd. ALL RIGHTS RESERVED.
Slide 20: EPCO's Growth Strategy: Ride the wave of the deregulation of electricity retailing
EPCO‘s Growth Strategy: Ride the wave of the deregulation of electricity 18 retailing to accelerate growth Acceleration of Growth with the Deregulation of Explosive Growth With the Deregulation of General Consumer Waterworks Construction! Electricity Retailing ! Equipment Design in the Housing /Home
Slide 21: EPCO's Strength in the Energy Business
EPCOʼs Strength in the Energy Business 19 Levering EPCO's Strength of Design, Customer Management , and Performance Management Know-how in the Housing/Home field, which is its specialty, We aim to expand businesses with collaborations with electricity retailers. Equipment Design Solar Panel Design a
Slide 22: Status of Liberalization of Electricity Retailing in the United Kingdom
20 Status of Liberalization of Electricity Retailing for General Consumers in the United Kingdom ©2014 EPCO Co., Ltd. ALL RIGHTS RESERVED.
Slide 23: Changes to Electricity Retailers and Charge Plans in the UK
Changes to Electricity Retailers and Charge Plans in the UK 21 Below chart indicates ・Percentage that changed their electricity/gas retailer as of 2013 (0.7~0.8% per month) ・ Every year, about 10% of families (~2.5M families) change their electricity/gas supplier ・The primary reason for the change w
Slide 24: About the Enechange Electricity Charge Plan Comparison Site for Japan
22 About the “Enechange” Electricity Charge Plan Comparison Site for Japan ©2014 EPCO Co., Ltd. ALL RIGHTS RESERVED.
Slide 25: The Electricity Charge Plan Comparison Site Offered in Japan (Enechange)
The Electricity Charge Plan Comparison Site Offered in Japan 23 (Enechange) ・ Cambridge Energy Data Lab, Ltd (Cam) has partnered with EPCO to develop a Beta‐version of the Enechange site that it developed/operates for Japan. ・ The full version of Enechange has a charge plan analysis function, and is
Slide 26: EPCO's Smart Energy Business
24 EPCO’s Smart Energy Business ©2014 EPCO Co., Ltd. ALL RIGHTS RESERVED.
Slide 27: EPCO Medium-Term Vision: Smart Energy Business
EPCO Medium-Term Vision: Smart Energy Business 25 2014 2016 Around 2018 From Services Possible Before Deregulation of Electricity Retailing (Scheduled) Separation of Generation Liberalization and Transmission of Electricity ・Storage Battery Rental Service for 【Entering the General Consumer Household
Slide 28: ONE Energy Developed Japan's First Storage Battery Rental Service
ONE Energy, Co. Ltd. Developed Japanʼs First * Storage Battery 26 Rental Service *As of April 2013 Research by SVP Japan Corp. Japanʼs First* Storage Battery Rental Service EPCO Provides Storage Battery Control Technology and the “Pipipa!” Service. EPCO Acquired a Patent for Its “Pipipa!” HEMS
Slide 29: Overview of HEMS Application Pipipa!
Overview of HEMS Application “Pipipa!” 27 Our HEMS Application “Pipipa!” Is the First Patented Integrated System in Japan Leveraging this Basic Patent, We Will Aim to Collaborate with Businesses Providing HEMS Applications Consumption Power-Saving Prediction Advice Electricity Selling Prediction Wea
Slide 30: Panasonic–EPCO Energy Service's Solar Power Aggregation Service
Panasonic–EPCO Energy Service (Co., Ltd.)ʼs 28 Solar Power Aggregation Service EPCO Provides the Surplus (Whole Amount) Solar Electric Power Prediction System “Eneberg“ and the “Pipipa!” HEMS Application Service Electric Power ￥ Normal Price +1 JPY On Top Panasonic-EPCO Solar Power ＝Payment of a Pre
Slide 31: Overview of Eneberg Surplus Solar Electric Power Prediction System
Overview of “Eneberg” that is the Prediction System 29 for Surplus (Whole Amount) Solar Electric Power EPCO is continuing to develop the prediction system for Surplus (Whole Amount) Solar Electric Power generated by household, named "Eneberg" , alongside the Cambridge University Smart City Research
Slide 32: About the METI Large-Scale HEMS Information Infrastructure Project
30 About the METI Large-Scale HEMS Information Infrastructure Project ©2014 EPCO Co., Ltd. ALL RIGHTS RESERVED.
Slide 33: Overview of the Large-Scale HEMS Information Infrastructure Project
Overview of the Large-Scale HEMS Information Infrastructure Project 31 ２ ① Construction of Large-Scale HEMS Information Infrastructure ・Introduce HEMS in 14,000 Homes Nationwide ・Construction of Information Infrastructure System to Manage Cloud ・EPCO Introduces HEMS into about 2,000 homes in the Kyu
Slide 34: Large-Scale HEMS Project Consortium Members
Large-Scale HEMS Information Infrastructure Project Consortium Members 32 16 ③ Information ① Consortium Management Vendors • NTT East Corporation ②Executive Companies • KDDI Corporation ■NTT East Corporation • Yahoo Japan Corporation ■KDDI Corporation • Panasonic Corporation ■SoftBank BB Corporation
Slide 35: Large-Scale HEMS Project-Related Services EPCO and Municipalities are Involved In
Large-Scale HEMS Information Infrastructure Project-Related Services 33 That EPCO and Municipalities are Involved In 1．Role as HEMS Management Vendor ① EPCO and municipalities install HEMS in the homes of citizens (Smart Meters and HEMS will see widespread use as a set) ② Electric Power Data From HE
Slide 36: Services Leveraging the Large-Scale HEMS That EPCO Provides
Services Leveraging the Large-Scale HEMS That EPCO Provides 34 14 8 to Companies and Municipalities Miyama City Homes Home Electronics (Example) Solar Power HEMS Router (B Route ) Electric Smart Meter HEMS Server Power Data (EPCO) Storage Battery HEMS App (Visualization/ Control) Verification Applic
Slide 37: Example of Business Models for Municipalities Entering Electricity Retailing
Example of Business Models for Municipalities Entering Electricity 0 35 Retailing as New Electricity Suppliers 【Miyama City, Fukuoka Prefecture Aims for a Concept Local Production and Consumption of Energy】 ・By promoting the spread of renewable energy, it will increase the consumption rate of its ow
Slide 38: Summary of Entry Into the Electricity Retailing Market
Summary of Entry Into the Electricity Retailing Market Using the Opportunity 36 of the Large-Scale HEMS Information Infrastructure Project 【Groups Looking to Enter the 【Providing EPCOʼs Strengths as Packages】 Electricity Retailing Market】 Leveraging EPCOʼs System and Business Housing/Home Field Core