Investor s Guide 2015

Transcription

1 Investor s Guide 2015

2 PROFILE Reliable Ring Relia, supporting collaboration to create values With a variety of relationships with our customers based on reliance, we promise to share the harboring excitement and the future with customers, and to create happy feeling. We aim to become a corporate group that is a Reliable Relation, supporting collaboration to create new values. Clients and Organizations People and Society From service supply to service creation Relia works to connect voices and ideas of clients with the power of people We will continue to strengthen the Reliable Ring that connects people and society to corporations and organizations based on our key strategies: satisfy various customer needs, grow with society and challenge new possibilities. 01 Relia Inc. Investor s Guide 2015

3 CONSOLIDATED NET SALES 74.2 FORECASTS FOR THE JAPAN BUSINESS SERVICES MARKET 12,000 billion 10,000 As a major company in the industry, posting consolidated net sales of 74.2 billion in the fiscal year 8,000 ended March 31, 2015, Relia, Inc. provides support for field operations, and is also expanding the outsourcing business, such as back office operations, that extends beyond customer contact points. Earnings declined order in the fiscal year ended March 31, ,000 0 However, both net sales and profits are steadily recovering as the result of entering new businesses. Industry Number of Client Companies Manufacturing 95 Housing / Real Estate Distribution 27 Transportation 20 Mail-Order Sales 22 Utilities 22 Software 17 Banks Insurance Securities 9 Broadcasting 44 Non-Banks 33 Telecommunication 23 Government and Municipal Offices 81 Others 96 Newspapers / Publishing Information Services Internet Providers 6 NUMBER OF EMPLOYEES 18, (Forecast) Source: I DC Japan press release Announcement of Forecasts for the Japan BPO/Business Consulting Services Market (October 29, 2015) NUMBER OF CLIENT COMPANIES BY INDUSTRY Industry 4.2% 2,000 temporarily due to the completion of a large spot Number of Client Companies 2019: : 2014 CAGR 6,000 various contact channels, including call centers and 13 NUMBER OF CLIENT COMPANIES 625 The Company has 625 client companies as of the fiscal year ended March 31, Doing business with these client companies, which represent a wide variety of industries, attests to our high level of reliability and quality. * (Consolidated) The Company s employees number 18,796 (consolidated). Human resources are the source that enables us to provide client companies with high-quality services that result in customer satisfaction, as well as to achieve sustainable growth. We regard the effective utilization of human resources, consisting of a trinity of recruitment, training and appointment, as a core competence, and aim to become a company with many attractive workplaces that allow employees to experience a sense of reward and growth. * As of March 31, 2015 Relia Inc. Investor s Guide

4 MESSAGE FROM MANAGEMENT The Relia Group aims to contribute to the creation of value of our client companies and the enhancement of corporate value. JUN NAKAGOME President 03 Relia Inc. Investor s Guide 2015

5 QUESTION 1 Why did you change the company name? Since its establishment in 1987, the Relia Group s growth has centered mainly on call center operations. Today, however, our business areas have expanded beyond call center operations into diverse channel support services, such as the Internet and field operations, and the outsourcing business in general, which includes customer voice analysis and back office operations. In view of the expansion into these business areas, we changed our company name from MOSHI MOSHI HOTLINE, INC. to Relia, Inc. Relia derives from the word reliance and expresses the vision that we strive for to expand relationships of trust and create value together with all stakeholders, including shareholders, client companies and employees. QUESTION 2 Please tell us about the Mid-Term Management Plan. In view of the changes in the business environment, we have established a mid-term management plan covering the five years from the fiscal year ending March 31, 2016 with the aim of achieving further growth and enhancing corporate value. Within this plan, we have set out Business Strategy 2018, a consolidation of the specific growth strategy for the first three years. By steadily implementing the annual plan based on these strategies, we aim to enhance corporate value over the long term. See the top of page 06 Client companies needs for call centers tend to fall into either one of two categories pursuing quality or optimizing cost, and we are working towards diversifying services to meet increasingly diversifying customer needs. Changes with social systems, including the introduction of the Social Security and Tax Number system and deregulation of the electric power sector, are planned during the period covered by the mid-term management plan and as a result Relia Inc. Investor s Guide

6 we anticipate demand for outsourcing in line with changes in the labor market over the medium to long term. It is our intention to firmly secure this demand by expanding the business process outsourcing business and field operations business. We will also take measures, including M&A, to bolster our overseas operations, in order to widely expand our business in the rapidly growing Asian market. The underlying basis of our quantitative plan is steady organic growth, and cases where the initiatives noted above achieve a certain degree of results are presented as upside cases. See the bottom of page 06 QUESTION 3 Please explain the policy for shareholder returns. In principle, our consolidated dividend payout ratio is targeted at a minimum of 50%. However, in the event of any drastic change in the business environment, such as a large-scale investment, it is possible that the dividend policy may be changed. DIVIDEND HISTORY DPS (Yen) Payout Ratio (Consolidated) (%) Ordinary Dividend Payout Ratio 80.6% 65.5% % 50.8% 57.9% Mar Mar 2013 Mar 2014 Mar 2015 Mar (Estimate) * Adjusted for 1-for-2 stock split effect (October ) 05 Relia Inc. Investor s Guide 2015

7 MID-TERM MANAGEMENT PLAN FOR 2020 Business Strategy 2018 has been established within the mid-term management plan covering the five years from the fiscal year ending March 31, 2016 as the specific growth strategy for the first three years. BUSINESS STRATEGY 2018 (3KEYS 7ACTIONS) KEY 1 Satisfy various customer needs ACTION 1 Enhancing our function to offer various customer experiences ACTION 2 Strengthening field operations KEY 2 Grow with society ACTION 3 Business expansion in line with changes in social regulations and circumstances Strengthening of core competence ACTION 5 ICT ACTION 6 Talent ACTION 7 Marketing KEY 3 Challenge new possibilities ACTION 4 Global organization through strengthening Asian business TARGET FIGURES AND RETURN TO STOCKHOLDERS Net Sales Operating Income (Billions of yen) (Billions of yen) 140 Net Sales [Steady case] 14.0 Net Sales [Upside case] Field operation Back Office Contact center Operating Income [Upside case] 100 Operating Income [Steady case] ROE target: 40 above 8% 4.0 Dividend policy 20 (payout ratio): 2.0 above 50% 0 Mar 2015 Mar 2016 Mar 2018 Mar (Actual) (Estimate) (Estimate) (Estimate) Note: Dividend policy may be changed in case management environment to be remarkably changed such as big investments. Relia Inc. Investor s Guide

8 CORPORATE SOCIAL RESPONSIBILITY Relia, Inc. conducts business at 29 operations centers throughout the country, from Hokkaido to Okinawa. In 2015, we introduced the Regionally-Based Full-Time Employment Program to establish and develop human resources systems that can accommodate various working styles, and we encourage every employee to bring 2.12% their capabilities into full play. We also plan to contribute to building up the local regions through job creation and effective utilization of human resources. The Group promotes employment of people with disabilities and supporting their independence and the encouraging their active participation in a society with no distinction from those without disability, through BUSINESS PLUS INC. (BUSINESS PLUS), specially approved subsidiary, to promote employment of people with disabilities as a whole company group. The number of employees at BUSINESS PLUS stood at as of June 1, 2015 (3.32%* of the actual employment rate), a high rate that has gained a high level of acclaim in society. We will continue our initiatives to fulfill our social responsibility as a corporate citizen. * The number of employees with disabilities and the actual employment rate were calculated according to the statutory formula. NUMBER OF EMPLOYEES WITH DISABILITIES AND ACTUAL EMPLOYMENT RATE Number of employees with disabilities Actual employment rate 2.34% % 2.63% % 3.38% 3.32% June 2009 June 2010 June June June 2013 June 2014 June 2015 CORPORATE GOVERNANCE The Relia Group s basic views on Corporate Governance are as follows. 1 We regard the rights of shareholders with the utmost respect, and make efforts to ensure that the rights of existing shareholders are not infringed and are treated fairly. 2 We make efforts to create corporate value and employment and maintain sound corporate management by building smooth relationships with stakeholders. 3 We ensure transparency in all important matters, and guarantee timely and appropriate information disclosure. 4 In addition to rigorously enforcing regulatory compliance, the Board of Directors and the Audit & Supervisory Board monitor and supervise business operations, thereby working on maximizing corporate value. CORPORATE GOVERNANCE SYSTEM Election & Dismissal Board of Directors: 7 Members (including 2 Nonexecutive Directors) Selection & Supervision Committee of Full- Time Board Members Board of Managing Officers Communication & Information Sharing Contract Risk Management Committee Disaster Risk Reduction Committee Information Security Committee Compliance Committee Reporting General Meeting of Shareholders Monitoring & Supervision Deliberation of important matters Election & Dismissal Audit & Supervisory Board: 4 Members Monitoring & Supervision President Reporting Cooperation Reporting Chief Financial Officer (CFO) Internal Control Division Divisions and Affiliated Companies Reporting Cooperation Reporting Evaluation Election & Dismissal Accounting Auditor Accounting Audit & Internal Control Audit Internal Audit Division Internal Audit 07 Relia Inc. Investor s Guide 2015

9 CONSOLIDATED FINANCIAL HIGHLIGHTS Years ended March 31 NET SALES OPERATING INCOME 98, ,484 13,245 82,218 79,209 74,235 9,029 6,891 5,448 3,669 NET INCOME EPS AND ROE Yen EPS (Earnings per Share) ROE (Return on Equity) 7, , % 3,809 3,452 2, % 14.3% % 5.8% DPS AND PAYOUT RATIO Yen DPS (Dividend per Share) Payout ratio CASH FLOWS Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities % 50.8% 50.8% 57.9% 80.6% ,885 8,631 6,714 3,305 1,109 1, ,129 2,005 2,678 1,999 2,696 3,480 3,519 3,065 CASH AND CASH EQUIVALENTS AT END OF PERIOD EBITDA* AND EV/EBITDA RATIO EBITDA EV/EBITDA Ratio 15.7% 22,711 21,184 14,553 17,041 15,361 10, ,844 7,911 6, , * EBITDA = Operating income + Depreciation and amortization in the Statement of Cash Flows (including amortization of goodwill) Relia Inc. Investor s Guide

10 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEETS Years ended March 31 ASSETS Current assets ,676 40,870 45,265 39,858 43,030 Cash ,244 13,741 18,611 10,861 19,184 Notes and accounts receivable trade ,563 10,731 9,059 9,218 9,491 Inventories ,184 2,837 1,472 1,244 1,191 Deposits paid ,000 12,000 14,000 16,000 12,000 Other current assets ,684 1,559 2,122 2,533 1,163 Fixed assets ,893 10,800 10,690 10,651 10,289 Tangible fixed assets ,806 2,480 2,209 2,018 1,590 Intangible fixed assets Investments and other assets ,793 8,079 7,837 7,840 8,053 Total assets ,569 51,671 55,956 50,510 53,320 LIABILITIES Current liabilities ,163 13,278 13,539 7,598 9,757 Long-term liabilities ,348 1, Total liabilities ,512 14,521 14,385 8,467 10,623 NET ASSETS Shareholders equity ,182 37,305 41,586 42,006 42,640 Common stock Capital surplus ,202 1,202 1,202 1,202 1,202 Retained earnings ,573 35,696 39,977 40,397 41,032 Treasury stock (592) (592) (592) (592) (592) Accumulated other comprehensive income..... (124) (155) (119) (49) 16 Minority interests Total net assets ,057 37,149 41,571 42,043 42,697 Total liabilities and net assets ,569 51,671 55,956 50,510 53,320 CONSOLIDATED MANAGEMENT INDICATORS Years ended March 31 EPS (Earnings per Share)(Yen) ROE (Return on Equity)(%) DPS (Dividend per Share)(Yen) Payout ratio (%) EV (Enterprise Value) ,272 43,255 72,846 54,476 71,171 EBITDA ,911 10,106 14,553 6,531 4, Relia Inc. Investor s Guide 2015

11 CONSOLIDATED STATEMENTS OF INCOME Years ended March 31 Net sales ,218 98, ,484 79,209 74,235 Cost of sales ,572 81,641 79,482 66,507 63,593 Gross profit ,645 16,430 21,002 12,701 10,641 Selling, general and administrative expenses... 6,754 7,400 7,756 7,253 6,972 Operating income ,891 9,029 13,245 5,448 3,669 Non-operating income Non-operating expenses Ordinary income ,053 9,216 13,387 5,605 3,862 Extraordinary gains Extraordinary losses Income before income taxes and minority interests ,712 9,025 13,354 5,580 3,888 Income taxes ,903 3,937 5,503 2,179 1,451 Income before minority interests ,809 5,087 7,850 3,401 2,436 Minority interests in loss (14) (50) (42) Net income ,809 5,087 7,865 3,452 2,479 CONSOLIDATED STATEMENT OF CASH FLOWS Years ended March 31 Cash flows from operating activities ,305 8,631 11,885 (1,605) 6,714 Income before income taxes and minority interests ,712 9,025 13,354 5,580 3,888 Depreciation and amortization , Amortization of goodwill Increase in notes and accounts receivable trade (537) (428) 1,781 (238) (354) Income taxes (paid) refund (3,563) (3,413) (4,196) (6,631) 881 Other (325) 2,372 (362) (1,400) 1,436 Cash flows from investing activities (3,480) (428) (2,696) (2,678) 1,109 Purchase of tangible fixed assets (1,445) (606) (1,012) (1,074) (390) Decrease (increase) in deposits paid ,200 1,600 (3,000) (2,000) 2,300 Other (3,234) (1,421) 1, (800) Net cash from financing activities (2,129) (2,005) (3,519) (3,065) (1,999) Cash dividends paid (2,134) (1,962) (3,581) (3,031) (1,999) Other (42) 61 (34) Net increase (decrease) in cash and cash equivalents (2,304) 6,197 5,669 (7,350) 5,823 Cash and cash equivalents at beginning of period ,149 10,844 17,041 22,711 15,361 Cash and cash equivalents at end of period ,844 17,041 22,711 15,361 21,184 Relia Inc. Investor s Guide

12 CORPORATE DATA As of March 31, 2015 STOCK INFORMATION Total Number of Shares Authorized 253,152,000 shares Total Number of Shares Outstanding 69,503,040 shares Number of Shareholders 13,574 MAJOR SHAREHOLDERS Name of Shareholders Number of Shares Held (Thousand Shares) Shareholding Ratio (%) MITSUI & CO., LTD. 23, Japan Trustee Services Bank, Ltd. (Trust Account) 3, CENTRAL SECURITY PATROLS Co., Ltd. 3, Japan Trustee Services Bank, Ltd. (Sumitomo Mitsui Trust Bank, Limited. Re-Entrusted / CENTRAL SECURITY PATROLS Co., Ltd. Pension Fund Trustee) 3, JP MORGAN CHASE BANK , Note: Fractions of less than a thousand shares are rounded down. CORPORATE PROFILE (As of October 1, 2015) Name Registered Head Office Relia, Inc , Yoyogi, Shibuya-ku, Tokyo Head Office Odakyu Southern Tower 16F, 2-2-1, Yoyogi, Shibuya-ku, Tokyo Telephone Number Establishment June 1987 BOARD OF DIRECTORS (As of June 23, 2015) President Senior Managing Director Directors Audit & Supervisory Board Members Jun Nakagome Yoshihiro Shimomura Hiroyuki Iwata Seiichiro Tanaka Wataru Ebata Hideki Noda Junichi Kishigami Yasuhira Miyata Yasutomo Shirakawa Akihiro Sato Yasuhiro Wakasa Corporate Planning Div. Odakyu Southern Tower 16F 2-2-1, Yoyogi, Shibuya-ku, Tokyo Tel Fax