Settlement of Accounts of the Fiscal. Year Ending March 31, 2011 and. Annual Business Performance Forecast. SAXA Holdings, Inc.

Transcription

1 Settlement of Accounts of the Fiscal Year Ending March 31, 2011 and Annual Business Performance Forecast May 18, 2011 SAXA Holdings, Inc. <Cautionary matter of description regarding future prospect> Please bear in mind that the forecast of our business performance and future forecast described in this material are forecasts judged by our company on the basis of the business environment at this point in time. The actual business performance can de different depending on the development of the business environment hereafter. 1/30

2 Subject of Today s Briefing Fiscal Year Ending March 31, 2011 Outline of the Consolidated Business Performance Regarding the Future Business Development Fiscal Year Ending March 31, 2012 Forecast of Consolidated Business Performance 2/30

3 Fiscal Year Ending March 31, 2011 Outline of the Consolidated Business Performance 3/30

4 Major Engagements in FY11/Mar. Early recovery of business performance Reinforcement of management bases Resumption to growth pattern The establishment of a stable constitution of earnings The integration of redundant functions within the group, streamlining of indirect jobs. The reduction of overall costs and increase of added value The reinforcement of supply chain management Reinforcement of financial standing Squeezing of interest-bearing liabilities, setting of trust with retirement benefits 4/30

5 Major Engagements in FY11/Mar. Early recovery of business performance Resumption to growth pattern Expansion of management bases The development of products that blend voice, data and image Provision of solutions required by customers through market-in Field of network solutions Network security device SS1000 corresponding to information security Field of security solutions Various sensors, high security individual recognition terminal CT600 and common patient registration card issue system with added image analysis technology. Fresh engagements Sales of IP TV interphone system, student ID (employee ID) with Suica/PASMO and provision of corresponding system addressed to railway business operators. 5/30

6 Fiscal Year Ending March 31, 2011 Outlook of Consolidated Business Performance Net sales Network solutions field Securities solutions field Operating Income Ordinary Income Net Income Net Income per Share (yen) FY10/Mar Actual Result yen FY11/Mar Actual Result yen Dividend (Forecast) - 3 yen yen (Unit: 100 million yen) Year-over-year Change Ratio of Change 11% % % 90% 75% 107% 109% 6/30

7 Fiscal Year Ending March 31, 2011 Consolidated Net Sales (By Field) Security solutions Network solutions (100 millions of yen) +3.8 billion yen Parts etc. 9.6 billion yen Year-over-year +2.3 billion yen Security systems 13.3 billion yen year-over-year +1.5 billion yen Network equipment etc billion yen 7.0 billion yen Year-over-year +0.2 billion yen Key telephone systems 13.0 billion yen FY 10/Mar. FY 11/Mar. Year-over-year +0.3 billion yen 7/30

8 Breakdown of Major Changes of Operating Income (FY10/Mar. ~ FY11/Mar.) Operating Income 1,140 million yen Operating income 600 million yen Increased selling expense -100 million yen Reduced fixed cost 240 million yen Increased sales 100 million yen Reduced material cost Improved production efficiency 300 million yen FY10/Mar. FY11/Mar. 8/30

9 Fiscal Year ending March 31, 2011 Outline of the Balance Sheet Assets Current assets Fixed assets Deferred assets Total assets End of FY10/Mar (A) End of FY11/Mar (B) (Unit: 100 million yen) Change (B-A) Liabilities/Net assets Current liabilities Long-term liabilities Total liabilities Net assets Total liabilities and net assets End of FY10/Mar (A) End of FY11/Mar (B) Change (B-A) /30

10 Consolidated Cash Flow Cash flow from operating activities Cash flow from investing activities Free cash flow Cash flow from financing activities Cash and cash equivalents End of FY10/Mar (A) End of FY11/Mar (B) (Unit: 100 million yen) Change (B-A) /30

11 Regarding Future Business Development 11/30

12 Business Development Network solution Office market Markets attended by SAXA Amusement market Social infrastructure/ education / nursing care market Transport/ settlement market Overseas market Small and medium offices Automatic security Shops Finance Theme park Resort facilities Game Center Hall Education Nursing care, welfare Telemetering Electricity Railway Bus Distribution Roads USA Europe China Asia Market-in Provision of solutions Security solution Solutions which can help realize an assured, safe and convenient environment Open innovation Provide interactive communication such as TV meeting system and IP TV solution Provide a variety of services by appliance box, gateway, etc. on the base of common platforms Provide assurance/safety/ convenience/comfort by integration of camera, image processing technology and communication technology Visual technology Network technology Secure technology 12/30

13 Introduction of a new corporate message Technology to connect, and more ahead Towards realization of comfortable life, namely assured, comfortable and convenient life, to further pass on to connect our technology to future of our customers, and that is SAXA. 13/30

14 Major Engagements in Each Market 14/30

15 Office Market (1/2) Full IP system for small and medium business offices with enriched mobile linkage function -Multi network gateway Agrea MP1000 (NC) (Released in April 2011) - IP terminal MP1000(NC) Telephones of branch offices become internal phones Smart phones become internal phones even out of the office Linkage with PC telephone directory Rich lineup of peripheral equipment like codeless telephones and door phones Provision of safe and secure office network environment -Comprehensive threat control appliance (UTM) [SS1000] (Released in September 2010)- Nuisance mails Fraud Web SS1000 Hacking Shut-out Clean internal network Virus Network attack 15/30

16 Office Market (1/2) From security just to take image and see to monitoring solution that analyze and judge -Image sensor IS100 (Released in September 2010)- Camera (connect 4 units) Camera image Detected area Judge size of object that intruded in detected area (Able to detect multiple objects) Menace on the spot Monitor Output power at contact point (8 output power) IS100 Detect intruder by image analysis, detect prowler, detect bring out and bring in Security controller Alert to outside Line Security firm Enriched peripheral items of security system -Wireless sensor (Under development)- Mobile phone Alert to outside Low priced, long battery life wireless sensor Line Home security controller Security firm 16/30

17 Amusement Market Cleaning system inside the hall -Plasma cluster ion unit (Launched in July 2010)- Pachinko stand Plasma cluster ion unit Air conditioned private stall (Top view) Pachinko hall Hall High Security System -Parking management, prevention of information leakage- Measures for information leakage Eavesdropping prevention system Parking management IP camera auto number cross-check system IP camera parking monitoring system Parking gate control system 17/30

18 Social Infrastructure Market (1/2) Locally common patient card issuance control system A Hospital (Center hospital) DB reference/ renewal Patient card issuance control server Other system Linked file Output 1 Card issuance system DB Other system Linked file Output 2 Each hospital does new issuance/ reissuance of patient card DB reference/renewal DB reference/renewal Internet VPN DB reference/renewal Card issuance system Card issuance system Card issuance system B Hospital C Hospital D Hospital Locally common patient card 18/30

19 Social Infrastructure Market (2/2) Provide various solutions in the campus using noncontact IC technology, server technology, etc. Attendance management system Reservation of facilities Attendance management server Automatic linkage Facilities/ equipment management server Class schedule change Reservation of equipment I have to change reservation of facilities/equipment according to the class schedule change! 19/30

20 Transport/Settlement Market (1/3) Emergency telephone facilities of express highways that can share communication infrastructures with other facilities by introduction of IP. New Tomei Expressway 20/30

21 Transport/Settlement Market (2/3) The IP TV interphone, which is easy to listen even in noisy train. This technology was realized by the blending of our voice technology nurtured by development of telephone equipment for many years, IP communication technology and image technology. Station service room Ticket face monitor Head-on monitor Control station A Ticket face monitor Head-on monitor Controlled station Home/Ticket machine, etc. TV monitor Interphone Home/Ticket machine, etc. TV monitor Interphone Control station B Station service room Interphone response terminal Image adopter Head-on camera Image adopter Head-on camera LAN Head-on camera Image adopter Head-on camera Image adopter Main equipment Main equipment Ticket face camera Ticket face camera Home Ticket machine Toilet (without camera) 21/30

22 Transport/Settlement Market (3/3) Counting the number of bus passengers who get on and off by image analysis technology Sub unit (middle door) Base unit (front door) Automatic collection Bus service office Wireless LAN Analysis program 22/30

23 Overseas Market Provision of security solution by using image related products, security equipment, etc. and network environment Data center Network camera Alarm reception, image browse, remote control, etc. Network video recorder Security equipment Promotion of automatic security system to security firms Provision of disaster prevention equipment complying with the optical alarm standards in Europe IP Camera Monitor center Security by men Automatic security US, Europe, China, other Asian emerging nations, etc. 23/30

24 Fiscal Year Ending March 31, 2012 Forecasts of Consolidated Business Performance 24/30

25 Policy of Engagements in Fiscal Year Ending March 31, 2012 Expansion of Business Bases Accelerate conversion of business Thorough focusing on customers Selection and concentration of business assessing profitability and future potential of business Expansion through provision of solutions Creation of new value Global promotion Strategic resource distribution Reinforcement of the management bases Establishment of a stable constitution of earning Streamlining of the organization and right-sizing of staff Thorough reduction of overall cost and the increase of added value Pursuit of group functional efficiency Reduction of overall cost Strengthening of financial standing 25/30

26 Immediate Impact by the Great East Japan Earthquake Impact on employees, facilities There was no personnel damage. Physical damage to our operation base (Sendai City, Miyagi Pref.), production base (Yonezawa City, Yamagata Pref.) and development base ( Hachinohe City, Aomori Pref.) was negligible. With respect to the production facilities, there was no damage serious enough to affect productive activity. There was a delay in obtaining some parts due to damage to parts suppliers and influence of the blackout. Regarding the forecast of business performance The Impact of the Great East Japan Earthquake at this point has not been incorporated in the consolidated business performance for the fiscal year ending March 31, 2012 due to extreme difficulty to rationally forecast the impact. In case we expect new impact on the performance, it will be disclosed promptly. 26/30

27 Fiscal Year ending March 31, 2012 Forecasts of Consolidated Sales Security solutions Network solutions 429 (100 millions of yen) billion yen Parts etc. 9.2 billion yen year-over-year -0.4 billion yen Security systems 14.2 billion yen year-over-year 0.9 billion yen Network equipment etc billion yen 9.2 billion yen Year-over-year 2.2 billion yen Key telephone systems FY11/Mar. FY12/Mar. Forecast 12.4 billion yen Year-over-year -0.6 billion yen 27/30

28 Fiscal Year Ending March 31, 2012 Forecasts of Consolidated Business Performance Net sales Network solutions field Securities solutions field Operating Income Ordinary Income Net Income Net Income per Share (yen) FY 11/Mar. Actual Result yen FY 12/Mar. Forecast yen Dividend (Forecast) 3 yen Undecided Change yen (Unit: 100 million yen) Year-over-Year Ratio of Change 5% % % 14% 17% 107% 107% 28/30

29 Breakdown of Major Changes of Forecasted Operating Income (FY11/Mar. ~ FY12/Mar.) Operating income 1,140 million yen Increased development cost -100 million yen Operating Income 1,300 million yen Increased sales 200 million yen Increased selling expense -240 million yen Reduced material cost Improved production efficiency 300 million yen FY 11/Mar. FY 12/Mar. Forecast 29/30

30 Investment in Business Development Capital Investment FY 11/Mar. Actual Result FY 12/Mar. Forecast (Unit: 100 million yen) Year-over-Year Change (Tangible) Capital Investment (Intangible) Total Depreciation Expense R&D Expense /30

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