Consolidated Financial Results for the First Halfof the FY ... · No change to full -year plan for...

1

Consolidated Financial Results for the First Half ofthe FY ending March 2020

(Six months ended September 30, 2019)

T-Gaia Corporation / TSENovember 11, 2019

If there is any discrepancy between the English version and the Japanese version, the Japanese version shall prevail.

2Disclaimer

This material contains statements about the future performance of T-Gaia Corporation which are based on management's assumptions and beliefs taking information currently available into consideration. Therefore, please be advised that T-Gaia’s actual results could differ materially from those described in these forward looking statements as a result of numerous factors, including general economic conditions in T-Gaia's principal markets as well as other factors detailed from time to time.

3

- Outline of the Consolidated Financial Results for the 1H of theFY ending March 2020 4-8

- Financial Results of the 1H of the FY ending March 2020 andStrategies by the Business Segments

- Mobile Telecommunications Business Segment 9-14- Enterprise Solution Business Segment 15-28- Payment Service Business and Other Business Segment* 29-34

- CSR Activities 35-36

- Appendixes 37-50

Table of Contents

*The translation of the name of the business segment has been revised for more clarity as below.

Former translation: Settlement Service Business & Other Business

Revised translation: Payment Service Business & Other Business

4

Outline of the Consolidated

Financial Results

5

244.54

34.19

27.22

6.96

10.38

6.99

102.0％

102.8％

103.2％

101.3％

101.8％

101.6％

（14.3％）

（2.4％）

（＋0.4ｐ）

（▲0.5ｐ）

56.6％

50.7％

50.1％

53.2％

56.2％

56.4%

432.00

67.50

54.40

13.10

18.50

12.40

(15.6％）

（3.0％）

1.8961.949 97.3％

63.4%5.403.42

239.79

33.26

26.38

6.87

10.20

6.88

（13.9％）

（2.9％）

3.33 102.7％

Summary of the Consolidated Financial Results

Achievement Ratio

Forecasts of 20/3 Full-year

Overall results as planned for FY 20/3

Gross Profit

Net Sales

SG&A Expenses

Operating Profit

Ordinary Profit

（to Net Sales）

（to Net Sales）

Non-Operating Income

（Income from hoarded cards, etc.）

Net Profit

（unit: billion yen）

*１ No change to full-year plan for the fiscal year ending March 31 2020, including non-operating profit

*２ From this fiscal year, UQ WIMAX has been included to the unit sales, and the unit sales for the 1Q of FY 19/3 has been revised.(1Q +2000 units, full year +7000 units).

*１

*２Mobile-phone Unit Sales (million units)

y/y Change

1HFY 19/3

1HFY 20/3

6

3.70 4.00

0.71 0.86

2.462.12

1H FY 19/3 1H FY 20/3

1H FY 19/3 1H FY 20/3

203.6 204.2

13.023.1

14.026.2

1H FY 19/3 1H FY 20/3

5.48 5.92

1.03 1.230.35

239.7 244.5

6.87

6.88 6.99[9.6%]

[5.4%]

[85.0%]

[10.7%]

[5.7%]

[83.6％]

[15.0%]

[5.2%]

[79.8%]

[10.4%]

[35.8%]

[53.8%]

[12.3%]

[30.4%]

[57.3%]

[▲2.8%]▲0.19

All have increased compared to the same time last year

[17.7%]

[85.1%]

6.96

* [ ] = segment ratio

Financial Results of the 1H by Business Segment

Net Sales Net Profit

Operating Profit

(Billion Yen)

(Billion Yen)

（Billion Yen）

Mobile Telecommunications Business

Enterprise Solution Business

Payment Service Business & Other Business

Graph1

19/3期19/3期19/3期

20/3期20/3期20/3期

2.46

3.7

0.71

2.46

4

0.86

2.12

Sheet1

19/3期キ20/3期キ11/3期 1Q キ12/3期 1Q キ

モバイル事業ジギョウ3.704.000.0%2,4152,415

ソリューション事業ジギョウ0.710.860.0%635635

決済サービス事業他ケッサイジギョウホカ2.462.120.0%202202

Sheet1

モバイル事業

ソリューション事業

決済サービス事業他

Sheet2

Sheet3

Graph1

19/3期19/3期19/3期

20/3期20/3期20/3期

13.0

23.1

14.0

26.2

203.6

26

46

204.2

28

51

Sheet1

17/3期キ19/3期キ20/3期キ11/3期 1Q キ12/3期 1Q キ

モバイル事業ジギョウ4,650203.6204.20.0%2,4152,415

ソリューション事業ジギョウ22226.028.00.0%635635

決済サービス事業他ケッサイジギョウホカ64346.051.00.0%202202

※SL、決済売上高×2 ケッサイウリアゲダカ

Sheet1

モバイル事業



Sheet2

Sheet3

Graph1

19/3期19/3期19/3期

20/3期20/3期20/3期

5.92

1.23

5.48

1.03

0.35

5.92

1.23

-0.19

Sheet1

17/3期キ19/3期キ20/3期キ11/3期 1Q キ12/3期 1Q キ

モバイル事業ジギョウ4,6505.485.920.0%2,4152,415

ソリューション事業ジギョウ2221.031.230.0%635635

決済サービス事業他ケッサイジギョウホカ6430.35(0.19)0.0%202202

※決済が▲2.5のためモバ▲2、SL▲0.5 ケッサイ

Sheet1

モバイル事業



Sheet4

Sheet2

Sheet3

7

Unit Sales

1H FY 19/3 1H FY 20/3

1949 1896・October 2019: Revised Telecommunications Business Act are in put in force, resulting in each telecommunications carrier to announce new plans. ・Rakuten Mobile to enter into MNO business.

Market Trends

The drop in unit sales compared to the same time last year

Consumer Trends

During September: There was a last-minute demand before the launch of new plans and increase in consumption tax.

Wait-and-see attitude

Unit Sales of the 1H on Company-wide Basis

Unit Sales of Mobile Phones & Tablets

(Thousand Units)

* Including WiFi terminals and MVNO handsets

* The unit sales of FY 19/3 has been modified as UQ WIMAX has been included into the calculation. (7000 units are added.)

Graph1

19/3期2Q

20/3期2Q

販売台数

194.9

189.6

Sheet2

19/3期2Q キ20/3期2Q キ15/3 計画ケイカク

販売台数ハンバイダイスウ194.9189.616.0

Sheet2

販売台数

Sheet3

8

Mobile Telecommunications Business Segment

Enterprise Solution Business Segment

Payment Service Business and OtherBusiness Segment

9

Mobile TelecommunicationsBusiness Segment

10

204.2

5.48 5.92

Though the unit sales decreased, due to the improved profitability per unit the operating profit and the net sales increased slightly compared to the same time last year.

1H FY 19/3 1H FY 20/3

203.6

3.70 4.00

1857 1780

1H FY 19/3 1H FY 20/3

Financial Results of Mobile Telecommunications Business Segment

Financial Results Comparison Unit Sales of Mobile Phones

(Thousand Units) * Including WiFi terminals and MVNO handsets(Billion Yen)NetSales

OperatingProfit

Net Profit

Graph1

19/3期

20/3期

総販売台数

185.3

178

Sheet1

19/3期20/3期15/3期（計画）キケイカク

総販売台数ソウハンバイダイスウ185.3178.0

【累積ベース】ルイセキ10/1Q10/2Q10/3Q10/4Q11/1Q11/2Q

総販売台数ソウハンバイダイスウ1,291,2952,637,1783,917,4425,495,5591,441,0953,027,371

スマートフォン販売台数ハンバイダイスウ89,584232,470522,026917,656456,3121,167,417

フィーチャーフォン販売台数ハンバイダイスウ1,201,7112,404,7083,395,4164,577,903984,7831,859,954

スマートフォン比率ヒリツ6.9%8.8%13.3%16.7%31.7%38.6%

Sheet1

&A

Page &P

Sheet1!#REF!

Sheet1!#REF!

000

&A

Page &P

000

&A

Page &P

（万台）

Sheet1!#REF!

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248

0

1

0

（万台）

1,291,295

2,637,178

3,917,442

5,495,559

1,441,095

3,027,371

スマートフォン販売台数

フィーチャーフォン販売台数

スマートフォン比率

（万台）

11

32(9)17(17) 24(22)

Docomo au SB YM UQ Rakuten

1,107（333）

1,129 1,107

182 193

570 549

17 17

1,8661,8981,129（326）

31(8)45(3)

331(34)

391(93)

285(173)

35(2)

347(40)

417(85)

281(173)

Total Number of Retail Outlets of Mobile Phone and Others

Change in Number of Retail Outlets

Carrier Shop Multi-Carrier Shop

Shop-in-shop & GMSAccessories Shop

*( ) = Directly managed Carrier Shop

Number of Shops by Each Carrier

End of September 2019




The number of directly managed carrier shops has increased due to the transfer of the management contracts.

12Examples of Investments in Shops - Part 1

Docomo Shop Kobe Harbor-land Umie

Installed designated area for smartphone instructional classes for customers

Example of the shop re-location and refurbishment

13

By Docomo Shop Onojoat Community Center for Elderly People

in City of Onojo

Tailored classes commencing in local community facilitiesDelivery of smartphone classes

By au Shop ToboAt Nagasakishi East Public Hall

Examples of Investments in Shops - Part 2

14

Dual shop opened in September 14thNewly Opened

Rakuten Mobile Sakura-machi Kumamoto/Smart Labo Sakura-machi Kumamoto

Examples of Investments in Shops - Part 3

15

Enterprise SolutionBusiness Segment

16

92

11613.0 14.0

1.231.03

1H FY 19/3 1H FY 20/3 1H FY 19/3 1H FY 20/3

0.860.71

Financial Results of Enterprise Solution Business Segment

Financial Results ComparisonUnit Sales of Mobile Phones

(Billion Yen)Net Sales Operating Profit

Net Profit(thousand units）


Operating profit and the net profit increased due to strong sales in solution services and terminals for enterprise customers.

Graph1

16/3期

17/3期

販売台数

9.2

11.6

Sheet2

16/3期キ17/3期キ

販売台数ハンバイダイスウ9.211.6

Sheet2

販売台数

Sheet3

17

Sourcing and Proposal

Supporting Adaption

Building an Environment

Maintenance

Update

Operation

*LCM・・・Life Cycle Management

Sales of Hardware

Before

Giving supports through the Life-Cycle

Now

The Strategies of Enterprise Solution Business SegmentLCM Business Focusing on Mobile Phones and etc.

18

・Smart devices・Laptop PC with SIM・TG Rental （Terminal rental service）

・Kitting service・Enhancing security

Building ofWi-fi environment

Communication LineManagement Service for

Corporate Clients

Help desk service

・Disposal of used handsets (Purchase)

・Terminal replacement

Subsidiary

Subsidiary

Mobile SecurityIncluding iOS

Partner

T-Gaia

T-Gaia

T-Gaia

T-Gaia


The wide range of services and products from the stages of sourcing to replacement are provided and strengthened by the subsidiaries and the partners.

IT System

Development

Strategies of Enterprise Solution Business SegmentLCM Business Focusing on Mobile Phones and etc.

Sourcing and Proposal

Supporting Adaption

Building an Environment

Maintenance

Update

Operation

19

・holds in-house system engineers ・has been developing systems for sales・has its own IoT framework

Allows rapid development and alteration of products

IT System Development ×

Strengths in IT System Development Strengths in Sales

Subsidized

Strategies of Enterprise Solution Business SegmentStrengths in IT System Development

20

It is planning to increase thenumber of helpdesk clerk in order to expand the capacity to accept expected demands.

Maintenance

157197



Number of Subscription of Help Desk Services （thousand IDs）



PC Technology, Inc.

Graph1

1193期

20/3期

販売台数

15.7

19.7

Sheet2

1193期キ20/3期キ


Sheet2

販売台数

Sheet3

21

Number of movino star ID

End of Sept 2018 End of Sept 2019

536584（thousand ID）

The communication line management service for corporate clients



Operation

Graph1

19/3期

20/3期

販売台数

53.6

58.4

Sheet2

19/3期キ20/3期キ


Sheet2

販売台数

Sheet3

22

LCM Business Focusing on Mobile Phones and etc.

Strategies of Enterprise Solution Business Segment

ICT/IoT Enterprise Solutions

Offices

Target Customers

Restaurants and retail stores

By offering solutions to aid the issue on human resource shortage.

23

IT System Development



Developing new services together with its

subsidiaries, investees and outside partners.

24

Subsidiaries and

investees

Outside partners

Apps and services to aid on the issue of human resource shortage in restaurants and retail stores



25

Investing and building partnerships with the small cap IoT venders that focus on the issue on human resource shortage and improve efficiency of office and retail management.

POS/cashier system that works on tablets and mobile phones

Providing the POS system on mobile phones to

retail stores and restaurants.

The real-time updates of whether a table is available

Providing the online service tool for announcing

availability to cafes and restaurants.

Reception system and smart tools for offices

Providing the smart reception system that works

on tablets.



26

LCM focusing on Mobile Phones

ICT/IoTEnterprise Solutions

IT System Development

Roundup of the Strategies of Enterprise Solution Business Segment

27

Cumulative Number of TG HikariSubscribers (incl. Resale)

The number of contracts are increasing steadily.

End of Sept2019

End of April 2015(Launch)

End of Sept 2018

increasing

steadily

The optic fiber access service

Subscription Service

Graph1

15/4

15/9

15/12

16/3

16/6

16/9

16/12

17/3

17/6

17/9

17/12

18/3

18/6

18/9

18/12

19/3

19/6

19/9

TG光　累計回線数

0

131

1759

3548

4582

6538

8809

11526

14130

17674

21176

24161

26188

28585

30727

33157

34741

36464

Sheet1

10/1Q10/2Q10/3Q10/4Q13/3期1Q キ13/3期2Q キ13/3期3Q キ13/3期4Q キ15/415/915/1216/316/616/916/1217/317/617/917/1218/318/618/918/1219/319/619/9

TG光　累計回線数ヒカリルイケイカイセンスウ6.9%10.6%22.6%27.2%0.0%0.0%0.0%0.0%0.0131.0175935484582653888091152614130176742117624161261882858530727331573474136464

【累積ベース】ルイセキ10/1Q10/2Q10/3Q10/4Q

総販売台数ソウハンバイダイスウ1,291,2952,637,1783,917,4425,495,559

スマートフォン販売台数ハンバイダイスウ89,584232,470522,026917,656

フィーチャーフォン販売台数ハンバイダイスウ1,201,7112,404,7083,395,4164,577,903

スマートフォン比率ヒリツ6.9%8.8%13.3%16.7%

Sheet1

000

&A

Page &P

Sheet2

000

&A

Page &P

Sheet3

71.110587.51710.45010178010

Sheet1!#REF!

Sheet1!#REF!

TG光　累計回線数 6.9% 10.6% 22.6% 27.2%

（万台）

1,291,295

2,637,178

3,917,442

5,495,559

1,441,095

3,027,371




（万台）

28

The online system for file transfer/share for enterprise customers,Giga CC ASP/OFFICE.

Subsidiary: WAMNET Japan K.K.

29

Payment Service Business andOther Business Segment

30Financial Results of Payment Service Business and Other Business Segment

Gross Sales of PIN & Gift Card

1H FY 20/31H FY 19/3

Significant increase due to the start of gift card business with a major sales channel from 2Q of FY 2019

1H FY 19/3 1H FY 20/3

Amount of Issued QUO Card

Issued amount continues to increase

Financial Results Comparison

Payment Service Business and Other Business Segment

Net Sales

Operating Profit

Net Profit

1H FY 19/3 1H FY 20/3

23.1

0.35

2.46

26.2

2.12

(0.19)

(Billion Yen)

Net ProfitOperating Profit

Net Sales

(Billion Yen)

20.8

0.450.3

0.78

1H FY 19/3 1H FY 20/3

24.6

0.53

Graph1

19/3末

20/3末

取扱高

547

742

Sheet2

19/3末マツ20/3末マツ15/3 計画ケイカク

取扱高トリアツカイダカ547.0742.016.0

135.6%

Sheet2

取扱高

Sheet3

Graph1

16/3期

17/3期

販売台数

323.4

332.2

Sheet2

16/3期キ17/3期キ


Sheet2

販売台数

Sheet1

Sheet4

Sheet5

Sheet6

Sheet7

Sheet8

Sheet3

31Wholesale Sale of Apple Accessories

The wholesale business of Apple Accessories to Seven-Eleven convenience stores.

9 accessories from Apple are on sale from May 2019.

32

Installing solar power systems to Docomo Shops

Subsidiary: Model T Inc. – Solar Power System

33Recent Campaigns

UQ Communication Inc.Until Nov. 30th 2019

Toyota Motor CorporationFrom Sept. 28th to Dec. 27th 2019

Until the stock lasts

The digital gift that can be used in physical retail stores, allowing enterprise customers to launch various types of promotional campaigns.

For updates and news on QUO Card Pay campaigns,please check its official website:

https://www.quocard.com/pay/campaign/

https://www.quocard.com/pay/campaign/

34

Member StoresConvenience

Stores

* I t s m e m b e r s to r e d i f fe r f r o m th a t o f Q U O C a r d .

*●= QUO Card Pay only

（守口本店のみ）（一部店舗）

*There are some exceptions

More stores are joining.

Book Stores

Cafes

Drugstores

Restaurants

(As of Nov. 1st 2019)

Member Stores: where it can be used

（都城妻ヶ丘本店のみ）（一部店舗を除く）（プラスゲオ富久山店のみ）

（一部店舗を除く）



（一部店舗を除く）（一部店舗を除く）

（一部店舗を除く）（一部店舗を除く）


（一部店舗）（一部店舗を除く）

Shopping Center


Toy Shop

（銀座博品館TOYPARK）

（一部店舗）（一部店舗）

35

CSR Activities

36

●e-Net Caravan

Photo taken at an e-Net Caravan seminar

By offering seminars to children, the company is taking its social responsibility to rise the awareness to the safe and secure use of internet.

The action to promote the safe and secure use of the internet and smartphones to students as well as guardians and teachers.

The number of certified instructors 456instructors (As of end of Sept 2019)

The number of seminars

done 128seminars (As of end of Sept 2019)● Environmental initiatives: Installing the solar panels and power generating systems to directly managed shops by T-Gaia and its warehouses.

(The warehouse in Shiga)

CSR

37

37

Appendixes

38

38

TG Vision – Our Vision -

TG Mission – Our Mission -

TG Action – Our Code of Conduct -

●We will propose new ways of communication to provide our customers with excitement, delight, and safety

●We value our employees, as well as their families, and strive to establish a pleasant work environment for everyone ●We will develop strong relationships with our business partners, regional communities and shareholders toward our future mutual growth● As a leading company in the industry, we will go ahead of changes to develop new businesses

●We will provide the highest-quality service exceeding any of someone’s expectations

●We will value communication and establish workplace with a culture of openness

●We will value our diversity and strive to achieve the best teamwork

●We will move ourselves higher as professionals

●We always act on high ethical standards and strengthen our compliance structure

【T-Gaia Corporate Philosophy】

●We will keep challenging something new aggressively with our passion and a sense of speed

39

The Midterm GoalsFrom November 2015, T-Gaia has set a medium-term goals to realize a sustainable growth and to respond to the expectations of all stakeholders including shareholders and employees by achieving the following objectives based on the corporate philosophy toward the FY 2020 (FY ending March 2021).

● Firmly maintain the position as the leading company in the core business of mobile phone distribution ● Grow solution business for corporate clients, settlement service and overseas business as a strong core business● Create and explore new business opportunities in the mobile and internet industries● Maintain the dividend payout ratio over 30%

In order to realize the objectives noted above, T-Gaia is taking concrete measures every day, setting the following points as the company-wide strategy.

● Cultivate, recruit, utilize and retain human resources to realize maximization and optimization of achievement of respective employees● Conduct strategic and continuous cost managements to transform the cost structure into one that can response to the change of the market environment● Maximize the corporate-wide achievements by optimizing the organization as well as the corporate system

Based on the above medium-term goals and company-wide strategies, T-Gaia will develop the business strategies for each business lines and make every effort to realize them through the concrete action plans in each business departments.

40Business Environment and The Strategies

The wide spread of smartphones allows people to connect to the world regardless of time. It has brought huge changes to the way people communicate, gather information and purchase.New types of businesses and services that were unimaginable in the past are now available. The market became more competitive and so as the chance of forming a new partnership.

Evaluations on the Business Environment

T-Gaia will accelerate the speed to become “a Comprehensive Provider of ICT-Related Domains”.The company will accelerate its investments in its digital services while making full use of its analog strengths, such as shops and sales bases across the nation, the diverse range of business models and well-established trades.It will strive to develop new businesses and services while maintaining the existing partnership within the group.

Strategies of T-Gaia

41

PaymentBusiness

B to B to C

Mobile PhoneDistributionBusiness for Consumers

B to C

SolutionBusiness

B to B

Wide variety of business

models

Wide range of business

relationship

Nationwide sales channels

(for mobile distribution business)

High flexibility and neutrality (low in in-house

products)

Financial condition kept in

good valance

CorporateGroup

Vision of Becoming “A Comprehensive Provider of ICT-Related Domains”

Digitalization

Cooperation

Cooperation

The Strengths of the Corporate Group

42Unit Sales of FY2019 and FY2020

Quarterly Sales Unit

FY19/3

943 1,006 1,030

1,147

913 983

1Q 2Q 3Q 4Q 1Q 2Q

FY20/3

(Thousand Unit)


* The unit sales of FY 19/3 has been modified as UQ WIMAX has been included into the calculation. (7000 units are added.)

Graph1

19/3期1Q

19/3期2Q

19/3期3Q

19/3期4Q

20/3期1Q

20/3期2Q

943

1006

1030

1147

913

983

Sheet1

【半期ベース】ハンキ10/1Q10/2Q10/3Q10/4Q13/3期1Q キ13/3期2Q キ13/3期3Q キ13/3期4Q キ16/3期1Q キ16/3期2Q キ16/3期3Q キ16/3期4Q キ18/3期1Q キ18/3期2Q キ18/3期3Q キ18/3期4Q キ19/3期1Q キ19/3期2Q キ19/3期3Q キ19/3期4Q キ20/3期1Q キ20/3期2Q キ

総販売台数ソウハンバイダイスウ129.1134.6128.0158.9144.6158.3161.4161.4103.0113.0124.0129.0102.4108.1121.7127.09431,0061,0301,147913983

スマートフォン販売台数ハンバイダイスウ9.014.329.043.284.2104.5117.1112.6

フィーチャーフォン他販売台数ホカハンバイダイスウ120.2120.399.1115.760.253.844.248.8

スマートフォン比率ヒリツ6.9%10.6%22.6%27.2%58.2%66.0%72.6%69.7%

【累積ベース】ルイセキ10/1Q10/2Q10/3Q10/4Q

総販売台数ソウハンバイダイスウ1,291,2952,637,1783,917,4425,495,559

スマートフォン販売台数ハンバイダイスウ89,584232,470522,026917,656

フィーチャーフォン販売台数ハンバイダイスウ1,201,7112,404,7083,395,4164,577,903

スマートフォン比率ヒリツ6.9%8.8%13.3%16.7%

Sheet1

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Page &P

129.1

134.5

127.7

158.2

144.1

158.6


フィーチャーフォン他販売台数


Sheet2

000

&A

Page &P

Sheet3

000

&A

Page &P

（万台）

スマートフォン販売台数 9.0 14.3 29.0 43.2

フィーチャーフォン他販売台数 120.2 120.3 99.1 115.7

スマートフォン比率 6.9% 10.6% 22.6% 27.2%

71.1105

87.5171

0.4501017801

0

（万台）

1,291,295

2,637,178

3,917,442

5,495,559

1,441,095

3,027,371




（万台）

43

（Billion Yen）

1Q (April to June)

115.6 117.9

2.883.11

FY 19/31Q

FY 20/31Q

3.703.86

2Q (July to September)

FY 20/32Q

FY 19/32Q

124.1 126.5

3.75 4.07 3.283.01

Financial Results in Quarterly Comparison

（Billion Yen）Net Sales Operating

ProfitNet Profit Net Sales Operating

ProfitNet Profit

44Consolidated Forecasts for FY Ending March 2020

432.00

Full Year Results for 2019/3

Full Year Forecast for 2020/3

67.50

54.40

13.10

18.50

12.40

Gross Profit

Net Sales

SG&A Expense

Operating Profit

Attributable to Shareholders of the Parent Company

Net Profit

Ordinary Profit

Year-on-year

▲18.0％

▲4.9％

▲2.1％

▲10.2％

▲10.4％

（Unit: billion yen）

▲3.44

▲1.16

▲2.28

▲2.09

▲1.44

▲14.8％

▲94.92

5.40 ＋3.6％＋0.19Non-Operating Income(Income from Hoarded Cards , etc..)

526.92

70.94

55.56

15.38

20.59

13.84

5.21

45

● Continue to make strategic investments such as store relocation and renovation

● Active investments in staff education and recruitment of personnel for enhancement of sales ability and improvement of customer satisfaction

Forecasts for Mobile Telecommunications Business Segment

● Improving the ratio of revenue generated by subscription services

● Reinforcing our “values in proposals” in response to the drop in sales volume due to the complete separation of charges of mobile phone handset and communication charges (Smartphone instructional classes and IoT showrooms within shops, etc.)

FY 20/3 (Forecasts)FY 19/3

Forecasts of Mobile Telecommunications Business Segment

452.6

351.0

8.86 7.76

(Billion yen)Net Sales

Net Profit

11.5613.10

Operating Profit

The large swells that drive the industry are the law amendments regarding the sales of terminals in force from October and the foreseen establishment of a new carrier.The preparation for 5G has started.

The Business Environment

Our Strategies

46

● Expansion of revenue base of “TG Hikari”Network Business

Mobile Enterprise Solution Business●Mobile version of LCM business are promoted●IoT business put forward through capital alliance with venture companies

Forecasts for Enterprise Solution Business Segment

Forecasts for Enterprise Solution Business Segment

● Productivity improvements by effective use of sales support system

● Building up of subscription business such as ”movinostar”

FY 20/3 (Forecasts)FY 19/3 Results

26.531.0

1.68 1.71

(billion yen)Net Profit

2.482.43

Operating Profit

Net Sales

- Workstyle reform and shortage of labor are both tailwind.

- Installing smart devices are popular to enterprise customers.

- Information security issue are becoming more serious. - Re-wholesale of “Hikari” fiber-optic connection

service has started.


Our Strategies

47

Payment Service Business

Overseas Business

● Increase in gross sales due to expansion of products and sales channels●Implementing large-scale sales promotion of "QUO Card Pay" (the planned cost: approximately 1 billion yen)

● Preparing to launch a business in Vietnam

● Gross sales of gift card increased due to the expanded sales channels at the luxury supermarket chain in Singapore

Gift card business and PIN business are steady.Cashless payment services using smartphone are expanding.


Our Strategies

Forecasts for Payment Service Business and Other Business Segment

Forecast for Payment Service Business and Other Business Segment (Consolidated)

Net Sales

Operating Profit

Net Profit

47.73.28 2.93

50.0

▲0.16▲0.94

FY 19/3 Results FY 20/3 Forecasts

(billion yen)

Reference: The Forecast for Payment Service Business and Other Business Segment (T-Gaia Alone)

Net Sales

Operating Profit

Net Profit (billion yen)

FY 19/3 Results FY 20/3 Forecasts

43.6 46.5

1.240.76 0.90

1.30

48

12.714.3

15.614.2 14.4

15.3

13.1

26.4%

29.4% 29.3% 29.7%30.9%

33.3%

24.5%*

Financial Information of T-Gaia: Part 1● Transition of ROE & Operating Profit

FY 14/3 FY 15/3 FY 16/3 FY 17/3 FY 20/3（Forecast）

FY 18/3 FY 19/3

Operating Profit

(billion yen)

ROE (Return on Equity)

It has been selected to “JPX Nikkei Index 400” for consecutive years by maintaining high level of ROE

*The ROE of the FY 20/3（Forecast） is calculated based on the forecast of the net profit for FY 20/3 attributable to shareholders of the parent company and the prediction of the net worth of the period.

Graph1

12.7

14.3

15.6

14.2

14.4

15.3

13.1

142

Sheet1

09/3期キ10/3期キ11/3期キ12/3期キ13/3期キ14/3期キ15/3期キ16/3期キ17/3期キ18/3期キ19/3期キ20/3期キ

ROE28.6%28.5%22.7%28.3%23.4%26.4%29.4%

DOE10.3%10.8%8.5%9.8%10.1%10.0%8.8%

純利益ジュンリエキ12415114514811812.714.315.614.214.415.313.1

Sheet1

ROE

DOE

純利益

Sheet2

Sheet3

Graph1

0.264

0.294

0.293

0.297

0.309

0.333

0.245

Sheet1

09/3期キ10/3期キ11/3期キ12/3期キ13/3期キ14/3期キ15/3期キ16/3期キ17/3期キ18/3期キ19/3期キ20/3期キ

ROE28.6%28.5%22.7%28.3%23.4%26.4%29.4%29.3%29.7%30.9%33.3%24.5%

平均ヘイキン8.0%8.0%8.0%8.0%8.0%8.0%8.0%

営業利益エイギョウリエキ63.681.375.579.365.868.377.4

Sheet1

ROE

平均

営業利益

Sheet2

Sheet3

49

Year End (in billion) 2014/3 2015/3 2016/3 2017/3 2018/3 2019/3

Net Profit 6.83 7.74 9.49 9.69 10.16 13.84

Net Worth 23.59 29.10 35.81 29.36 36.44 46.73

Equity Ratio of Net Profit（ROE)

26.4% 29.4% 29.3% 29.7％ 30.9％ 33.3％

Return on Investment (ROIC) 10.0% 13.5% 17.3% 17.6% 20.3% 22.0%

Operating Profit on sales 1.8% 2.2%

2.5％ 2.6％ 2.6% 2.9%

Dividend on Equity ratio (DOE) 10.0% 9.8%

9.1％ 9.9％ 9.3％ 10.0％

● The Past Trends and the Forecasts of the Key Financial Index

Financial Information of T-Gaia: Part 2

50

35.00 37.5043.00

52.00 55.00

75.00

86.74112.68

138.11

172.62182.34

242.24222.51

75.00

Net Profit per share Dividend per share & Payout Ratio

40.3%33.3% 31.1% 30.1% 30.2% 30.1%

33.7%

Basic Dividend Policy Targeting & maintaining dividend payout ratio of more than 30%

Dividend per share Payout ratio

（yen）（yen）

* The net profit per share and dividend per share at the end of FY 20/3 are calculated based on the predicted average number of the share of the period at the end of FY 20/3.

FY 20/3（Forecast）

FY 18/3FY16/3 FY17/3FY15/3FY14/3 FY 19/3FY 20/3（Forecast）

FY 18/3FY16/3 FY17/3FY15/3FY14/3 FY 19/3

Return to Shareholders in FY ending March 2020

● Annual dividend: 75 yen/share (Interim: 37.5 yen/share, Yearend: 37.5 yen/share)

Financial Information of T-Gaia: Part 3● Return to Shareholders: Dividend Policy

Graph1

14/3期14/3期

15/3期15/3期

16/3期16/3期

17/3期17/3期

18/3期18/3期

75

75

35.00

35

0

37.5

0

43

0

52

0

55

0

Sheet1

03/3期04/3期05/3期06/3期07/3期08/3期09/3期10/3期11/3期12/3期13/3期14/3期15/3期16/3期17/3期18/3期19/3期20/3期（予想）キヨソウ

一株当たり配当額（円）エン6,5002,5002,5003,7504,5005,0005,0006,0005,5006,5007,0007,0007,0007,0007,0007,000

2,000500

一株当たり配当額（円）エン331312.5018.7522.5025.0025.0030.0027.5032.5035.0035.0037.5043.0052.0055.0075.0075.00

記念配当キネンハイトウ0010.000.000.000.002.500.000.000.000.000.000.000.000.000.00

配当性向（％）29.7%30.8%50.0%35.0%36.0%40.9%35.7%37.8%37.3%35.0%42.3%40.3%33.2%31.1%30.1%30.0%30.2%33.7%

Sheet1

&A

Page &P

（円）

一株当たり配当額（円）

配当性向（％）

5,500

Sheet2

Sheet3

Graph1

14/3期

15/3期

16/3期

17/3期

18/3期

19/3期

20/3期

86.74

86.74

112.68

138.11

172.62

182.34

242.24

222.51

Sheet2

03/3期04/3期05/3期06/3期07/3期08/3期09/3期10/3期キ11/3期キ12/3期キ13/3期キ14/3期キ15/3期キ16/3期17/3期18/3期19/3期20/3期キ

分割調整後1株利益ブンカツチョウセイゴ5,463.758,115.759,056.0010,704.2912,507.0012,721.0015,422.6815878.5214742.7118551.2221804

1株利益（短信）タンシン21,855.0032,463.0018,112.0010,704.2912,507.0012,721.0015,422.688,496.005,265.003,110.00

分割係数0.250.250.501.001.001.001.001.001.001.00

200分割後ブンカツゴ27.3240.5845.2853.5262.5461.1477.1179.3973.7192.7682.7786.74112.68138.11172.62182.34242.24222.51

Sheet2

200分割後

Sheet3

Sheet1

Graph1

0.403

0.333

0.311

0.301

0.302

0.301

0.337

Sheet1

03/3期04/3期05/3期06/3期07/3期08/3期09/3期10/3期11/3期12/3期13/3期14/3期15/3期16/3期17/3期18/3期19/3期20/3期キ

一株当たり配当額（円）エン6,5002,5002,5003,7504,5005,0005,0006,0005,5006,5007,0007,0007,0007,0009,7009,700

2,000500

一株当たり配当額（円）エン331312.5018.7522.5025.0025.0030.0027.5032.5035.0035.0035.0037.5052.0056.0075.0075.00

記念配当キネンハイトウ0010.000.000.000.002.500.000.000.000.000.000.000.000.000.00

配当性向（％）29.7%30.8%50.0%35.0%36.0%40.9%35.7%37.8%37.3%35.0%42.3%40.3%33.3%31.1%30.1%30.2%30.1%33.7%

Sheet1

&A

Page &P

（円）

一株当たり配当額（円）

配当性向（％）

5,500

Sheet2

Sheet3

スライド番号 1スライド番号 2スライド番号 3スライド番号 4スライド番号 5スライド番号 6スライド番号 7スライド番号 8スライド番号 9Financial Results of �Mobile Telecommunications Business Segmentスライド番号 11スライド番号 12スライド番号 13スライド番号 14スライド番号 15スライド番号 16スライド番号 17スライド番号 18スライド番号 19スライド番号 20スライド番号 21スライド番号 22スライド番号 23スライド番号 24スライド番号 25スライド番号 26スライド番号 27スライド番号 28スライド番号 29Financial Results of �Payment Service Business and Other Business Segment�スライド番号 31スライド番号 32スライド番号 33スライド番号 34スライド番号 35スライド番号 36Appendixesスライド番号 38スライド番号 39スライド番号 40スライド番号 41スライド番号 42スライド番号 43スライド番号 44スライド番号 45スライド番号 46スライド番号 47スライド番号 48スライド番号 49スライド番号 50

Consolidated Financial Results for the First Halfof the FY ... · No change to full -year plan for...

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