FY2018 1st Half Financial Results Briefing · 10/25/2018 · Cardealer 15. Cash management...
Transcript of FY2018 1st Half Financial Results Briefing · 10/25/2018 · Cardealer 15. Cash management...
FY2018 1st HalfFinancial Results Briefing
FUJITSU FRONTECH LIMITEDOctober 25, 2018
1. Summary of FY2018 1st HalfConsolidated Financial Results
Copyright 2018 FUJITSU FRONTECH LIMITED
Consolidated Results of OperationsSales/operating income by business segmentSales by RegionsOutline of the Business SegmentsConsolidated Financial Positions and Cash Flows
1
Consolidated Results of Operations
Net salesOperatingIncome
OrdinaryIncome
Net income Attributable to
Owners of parent
Net incomeper share
FY2018 1st Half 47.7 0.8 1.0 0.5 21.57 yen
FY2017 1st Half 47.4 1.9 1.9 1.3 55.40 yen
Change +0.4 -1.1 -0.9 -0.8Figures announced
In July45.6 0.9 0.7 0.4 16.69 yen
Changes from the figures announced in July +2.1 -0.1 +0.3 +0.1
[Billion yen]
Copyright 2018 FUJITSU FRONTECH LIMITED
Change【In Japan】 ・Growth in new totalizator terminals and sports lottery terminals.
・Decrease in banking terminals due to demand cycle.【Outside Japan】 ・Growth in new small-sized BRU.
Changes from the figures announced in July・Increase in sales related to hasting business deals outside Japan.・Increase in ordinary income related to foreign exchange gains based around
weak yen through the 1st-Half. 2
Sales / Operating income by Business Segment
FY2017 1st Half FY2018 1st Half Change
Net salesOperatingincome Net sales
Operatingincome Net sales
Operatingincome
Global ProductBusiness
18.7 0.7 18.0 -0.6 -0.7 -1.3
Service IntegrationBusiness
13.4 1.5 13.9 1.2 +0.4 -0.3
Public SolutionBusiness
8.8 0.2 10.1 0.6 +1.3 +0.5
Frontline SolutionBusiness
6.3 0.3 5.6 0.2 -0.7 ±0.0
Other/Corporate(Including strategic
investments)0.0 -0.7 0.0 -0.7 ±0.0 ±0.0
Total 47.4 1.9 47.7 0.8 +0.4 -1.1
[Billion yen]
Copyright 2018 FUJITSU FRONTECH LIMITED3
Sales by Regions[Billion yen]
FY2017 1st Half FY2018 1st Half Change
Japan 35.8 35.3 -0.5Outside Japan
(Raito of Sales outside Japan)
11.6(24.4%)
12.4(26.0%)
+0.9
Americas 5.4 5.3 -0.1
Europe 3.5 5.3 +1.8
Asia 2.7 1.8 -0.9
(China) (1.6) (0.9) -0.7
Total 47.4 47.7 +0.4
Copyright 2018 FUJITSU FRONTECH LIMITED
Average exchange rate during period
1USD=111 yen 110 yen
4
Growth in RFID solution sales in North America. Launch cash management service for a large customer in Japan (TC/CM). Growth in LCM service sales in Japan.
Outline of the Business Segment (1)
Service Integration Business 13.9Billion yen (Year on year : +0.4 Billion yen, +3%)
Copyright 2018 FUJITSU FRONTECH LIMITED
Launch of small-sized ATM for retail stores. Growth in new cash handling components (small BRU) sales (for SCO etc.) . Decrease in banking terminals sales due to demand cycle.
Global Product Business 18 Billion yen (Year on year : -0.7 Billion yen, -4%)
Key Efforts in 2nd Half1) Expansion of cash management business for retail stores in North America.2) Expansion of small bank solution business in Japan.
Key Efforts in 2nd Half1) Expansion of cash management service business (TC/CM).2) Expansion of SI business into new business fields in Japan.3) Expansion of solution business for outside Japan (ex. RFID)
5
Growth in RFID business outside Japan. Full-scale launch of multi settlement terminals handling IC credit cards
for retail companies in Japan. Decline of demand for mobile terminals for logistics company after
peaking of large orders.
Outline of the Business Segment (2)
Copyright 2018 FUJITSU FRONTECH LIMITED
Frontline Solutions Business 5.6 Billion yen (Year on year: -0.7 Billion yen, -11%)
Growth in new totalizator terminals sales. Growth in sales of sports lottery terminals. Launch of the cashless betting machine for JRA.
Public Solutions Business 10.1 Billion yen (Year on year : +1.3 Billion yen, +15%)
Key Efforts in 2nd Half1) Expansion of target business field for multi settlement terminals handling
IC credit cards and related service business. 2) Sales expansion of new small-sized RFID tags and palm vein
authentication solution business.
Key Efforts in 2nd Half1) Expansion of the cashless betting machine. (JRA and local public racecourses) 2) Expansion of management service business.
6
Consolidated Financial Positions and Cash Flows
Total Assets
Total Liabilities
Total Equity
Capital Adequacy Ratio
FY2018 1st Half 72.3 25.2 47.0 64.2%
FY2017 71.3 25.2 46.1 63.9%
Change +1.0 ±0.0 +0.9
C/F from operating activities A
C/F from investing activities B
Free C/F A+B
C/F from financing activities C
C/FA+B+C
Cash and cash equivalents at the end of year
FY2018 1st Half 0.5 -2.7 -2.3 -0.9 -3.1 17.2
FY2017 1st Half 4.4 -2.5 1.9 -0.8 1.1 19.9
Change -4.0 -0.2 -4.2 ±0.0 -4.2 -2.6
[Billion yen]
[Billion yen]
Consolidated Financial Positions
Consolidated Cash Flows
Copyright 2018 FUJITSU FRONTECH LIMITED7
2. Summary of FY2018 Full-year targets
Copyright 2018 FUJITSU FRONTECH LIMITED
Consolidated Earnings ForecastForecast of Sales / Operating Income by Business SegmentsSales Forecast by Regions
8
Consolidated Earnings Forecast
[Billion yen]
Copyright 2018 FUJITSU FRONTECH LIMITED
Net Sales Operating Income
Ordinary Income
Net IncomeAttributable to
Owners of Parent
FY2018Forecast
102.9 4.1 3.3 2.3
FY2017Results
96.7 3.9 3.8 2.4
Change +6.2 +0.2 -0.5 -0.1
Net Income Per Share
95.99 yen
100.50 yen
Considering trends in global economies and exchange rate fluctuation,consolidated earnings forecast will remain the same.
9
Forecast of Sales/Operating Income by Business Segments
FY2017Result
FY2018Forecast
Change
Net Sales
Operating income
Net Sales
Operating income
Net Sales
Operating income
Global Product Business 37.7 1.1 34.3 0.4 -3.4 -0.7
Service Integration Business 28.3 2.7 30.3 2.9 +2.0 +0.2
Public Solution Business 19.4 1.1 24.8 1.7 +5.4 +0.6
Frontline Solution Business 11.2 0.4 13.4 0.8 +2.2 +0.4
Other/Corporate(Including strategic
investments)0.1 -1.5 0.1 -1.7 ±0.0 -0.2
Total 96.7 3.9 102.9 4.1 +6.2 +0.2
[Billion yen]
Copyright 2018 FUJITSU FRONTECH LIMITED10
[Billion yen]
FY2017 FY2018 Change
Japan 73.6 74.3 +0.7Outside Japan
(Ratio of Sales outside Japan)
23.2(23.9%)
28.6(27.8%)
+5.4
Americas 10.7 13.6 +2.9
Europe 7.6 9.4 +1.8
Asia 4.9 5.6 +0.7
(China) (2.9) (3.0) (+0.1)
Total 96.7 102.9 +6.2
Copyright 2018 FUJITSU FRONTECH LIMITED
Sales Forecast by Regions
Average Currency Exchange Rate During Period
1USD=
111 yen 105 yen※
※Assumption of average exchange rate
from 3rd-Quarter on
11
3. Introduction of the newest solution businesses
Copyright 2018 FUJITSU FRONTECH LIMITED
Frontline solutions without cashCash management services for retail storesNew solution for bank branches IoT sensor solutions
12
Frontline solutions without cash(1) Cashless Betting・Demand for cashless betting service to increase in betting sales
and improve services for fans.・From this autumn, cashless betting system utilizing palm vein
authentication is operating in JRA Tokyo Racecourse. - Buying a ticket and refunding easily without cash- Realized safely operation with high personal verification accuracy by palm vein authentication.
・Expanding into local public racecourses from now on.
Copyright 2018 FUJITSU FRONTECH LIMITED
<Automated betting and refunding machine><Cashless betting machine>13
Frontline solutions without cash (2) Multi settlement solution service handling IC credit card・Ensured security to correspond to the effort of credit card settlement safety by
the Ministry of Economy.①Preparation for IC on credit card settlement system②No preservation of card information in store
・Provide multi settlement solution as all-in-one settlement service from installationto maintenance.
・Credit cards, debit cards, union pay cards and electronic money are availablewith only one terminal.
Copyright 2018 FUJITSU FRONTECH LIMITED
Credit cards Debit cards Union Paycards
Electronic money
SC Taxi
Settlement terminalCAT
Settlement terminal
Settlement terminal
Massretailer
POS
Others(Financial,petroleum etc.)Settlement terminal
Department store
Handheldsettlement terminal
POS Settlement terminals
・Completion of release of handheld settlement terminal and taxi settlement terminals
14
Cash management services for retail stores (1) Cloud-based cash management service 「TeamCloud/CM」(in Japan)
・High interest in cash management work efficiency, caused by a deepeningshortage of workers.
・Provide solutions meeting needs of customers under the cloud environment.- Reduction of work to manage cash.
→ Effective staff allocation and contribution of work style innovation.- Visualization of cash stock
→ Efficient fund management using stored data analysis.・Launch in a major drugstore in this 2018 1st Half
Now in business deals with other various industries.
Copyright 2018 FUJITSU FRONTECH LIMITED
<Schematic view of TeamCloud/CM service> <Expansion of introduction destination>
Specialty storeBridal etc.
Supermarket
Fast food
Drugstore
Various industries that handle cash
Car dealer
15
Cash management services for retail stores (2) Back office cash management solution for retail stores in North America・Decrease in sales in real stores due to spread of online sale
→ Demands for operating reforms. ・Solution meeting needs of customers
-Making the process of cash management efficient → effective staff allocation and saving labor are available.
-Depositing sales proceeds without touching cash→ immediate capitalization and preventing workers from injustice.
-Safe and secure cash operation making use of palm vein authentication. ・Maintained line-up of cash management systems to meet needs of smalland medium scale store in addition to systems for big scale store,and now doing active business promotion and PoC.
Copyright 2018 FUJITSU FRONTECH LIMITED
<Line-up of cash management systems>
For small scale store For big scale store16
New Solution for bank branches Solution for mini bank・Rising demand in bank branches for innovation, such as further
efficiency of office work.
・Realizing the innovation by proposition of officework efficiency solution with semi-self counter.- No bill, no personal seal and no cash handling→ Rapid improvement of handling speed at counter.→ Shortening the office work process considerably.→ Improvement of customer satisfaction.
・Expand into city and regional banks.-Especially business deals with regional banks
are active, and now 40 business deals are in progress.
-Now plotting further expansion.
・Extending business to improve productsline-up adding full-self counter.
Copyright 2018 FUJITSU FRONTECH LIMITED
CustomerBank clerk
17
IoT sensor solutions (1) In Japan︓Total solution using RFID and beacon etc.・High interest in solution of saving labor and work efficiency,
influenced by the work style innovation and the shortage of workers. ・PoCs are in progress in various business fields.
- Warehouse management efficiencyin convenience stores, apparel industries,trading companies of auto parts and others.
- Temperature and humidity control in facility, warehouse,agriculture, refrigerated wagon
・Aim : commercialization of 5 businesses in FY2018 and 40 businesses by 2020.
Copyright 2018 FUJITSU FRONTECH LIMITED
Beacon equipped with sensor
<Temperature control in refrigerated wagon> <Management of the flow of parts picking in a factory>18
IoT sensor solutions (2) Outside Japan : Creation of new business
opportunity with cooperation partner・Acquired POSITEK in North America last year.・Provide solutions using our RFID washable tags for clothing rental and laundry business(about 75% share)
・Improve the rate of RFID introduction in existingmarkets and develop new markets by enhancing functions and miniaturizing RFID tags.
・Cooperation with new partner is underconsideration.
Copyright 2018 FUJITSU FRONTECH LIMITED
RFID laundry tag・Used in business field of clothing and linen rental,such as in hotel and hospital.
・Pursuit and management of clothing and linen equipped with RFID tags are available.
0
1
2
3
4
5
FY2006 FY2018
Total one hundredmillion tags
(hundred million tags)
Accumulated shipping volume of laundry tag
19
<Notes Regarding Forward-Looking Statements>
This material contains certain statements about projections and forecasts for thefuture plans, strategies, and performance based on assumptions made usinginformation available to Fujitsu Frontech at that time.
In addition, this material contains various risks and uncertainties (includingeconomic trend, fierce competitions in the related industries, market demands,informed that the actual results may materially differ from the forecasts madeby the Company.
<Trademark>The proper herein including product names are the trademarks or
Registered trademarks of the respective companies.
Copyright 2018 FUJITSU FRONTECH LIMITED20
Copyright 2018 FUJITSU FRONTECH LIMITED