Presentation of Finances · 2013. 5. 30. · February 22, 1999 Kazuhiro Maegawa JPY 1.04 billion...

Presentation of FinancesFiscal Year ended March 31, 2010

April 26, 2010

Hiroyuki Maruoka, Director and Account Manager

Code No:4283

Panasonic Electric Works Information Systems Co., Ltd.

Ver 0.8

Kazuhiro Maegawa, President

http://panasonic-denkois.co.jp © Panasonic Electric Works Information Systems Co., Ltd. 2010 2

Presentation MaterialFiscal Year ended March 31, 2010


Trends in Net Sales, Operating Income, and Operating MarginTrends in Net Sales, Operating Income, and Operating Margin Consolidated

Net sales Operating income Operating margin (Operating income: ¥100 Million)(Net sales: ¥100 Million)

Year ended

March 2009

Year ended

March 2010

Year ended

March 2008

Year ended

March 2006

Year ended

March 2007

12.4%12.5% 12.5%11.9%

373

402

0

100

200

300

400

500

0

20

40

60

80

100

39011.1%

380

366

413

43.7

50.146.348.746.1

Ensured operating margin of 11.9% amid worsening business climate

(-1.8%)

(-5.6%)

[Planned]

46.5[Planned]


Quarterly Performance Trends in Net Sales & Gross MarginQuarterly Performance Trends in Net Sales & Gross Margin

(¥ Million)

[TOTAL]

4Q

3Q

2Q

Gross

margin

1Q

(%)

7,961 8,226 8,277

9,944 10,891 10,150

8,6068,033 8,270

13,713 11,914 10,621

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

8,727

19.719.7

19.419.419.319.318.818.8

0.0

5.0

10.0

15.0

20.0

25.0

40,22539,066

37,31936,650

9,577

8,364

9,980

8,829

10,792

8,417

13,345

41,385

17.117.1

Gross margin has grown steadily

(-1.8%)

Year ended

March 2009

Year ended

March 2010

Year ended

March 2008

Year ended

March 2006

Year ended

March 2007

Consolidated


Quarterly Performance Trends in Net Sales & Gross Margin Quarterly Performance Trends in Net Sales & Gross Margin

by Sales Categoryby Sales Category

[System Services] (%)

0

5,000

10,000

15,000

20,000

25,000

30,000

0.0

5.0

10.0

15.0

20.0

25.0

30.0

5,861 5,940 6,030

5,867 5,855 5,916

5,838 5,890 5,882

5,953 5,977 5,959

22.622.621.521.5

20.320.320.720.7

23,51923,664 23,788 23,045

5,963

5,809

5,575

5,697

5,695

5,633

5,714

5,630

22,672

24.024.0

4Q

3Q

2Q

Gross

margin

1Q

Gross margin improved despite falling prices for operations services

(-3.1%)

Year ended

March 2009

Year ended

March 2010

Year ended

March 2008

Year ended

March 2006

Year ended

March 2007

Consolidated

(¥ Million)


[System Solutions] (%)

752 947 1,0391,398

1,998

2,747 2,550

1,459

888 1,191

3,617

3,765

2,798

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

18.018.0

15.415.4

20.220.2

18.418.4

0.0

5.0

10.0

15.0

20.0

25.0

7,827

8,349

7,5806,957

2,325

1,386

1,190

1,528

641

2,942 1,846

6,301

13.713.7

4Q

3Q

2Q

Gross

margin

1Q

Ensured high gross margin

(-8.2%)

Year ended

March 2009

Year ended

March 2010

Year ended

March 2008

Year ended

March 2006

Year ended

March 2007

ConsolidatedQuarterly Performance Trends in Net Sales & Gross Margin Quarterly Performance Trends in Net Sales & Gross Margin


(¥ Million)


[System and Communications Equipment] (%)

0.0

5.0

10.0

15.0

20.0

25.014,000

0

2,000

4,000

6,000

8,000

10,000

1,348 1,338 1,207 1,365

2,078 2,2871,683

1,308 1,254

1,196

4,142

2,171

1,8639.49.4

16.416.4

15.015.0

17.217.2

8,877

7,051

5,951

6,646

1,442

1,402

12,000

2,436

1,943

3,631

2,063

4,774

12,411

6.16.1

4Q

3Q

2Q

Gross

margin

1Q

Increased gross margin with expanded sales of high value added services

(11.7%)

Year ended

March 2009

Year ended

March 2010

Year ended

March 2008

Year ended

March 2006

Year ended

March 2007

ConsolidatedQuarterly Performance Trends in Net Sales & Gross Margin Quarterly Performance Trends in Net Sales & Gross Margin


(¥ Million)


Trends in Net Sales by Customer TypeTrends in Net Sales by Customer Type

Year ended

March 2010

(Planned)

Year ended

March 2010

(Actual)

Net Sales

0

100

200

300

400

(¥100 Million)

402402 390390 373373

202202 220220 213213

7565 65

124 10595

50.4%

18.7%

56.5%

16.5%

57.3%

17.3%

30.9% 27.0% 25.4%

413413

203203

65

144

49.2%

15.9%

34.9%

199199

59

107

54.5%

16.2%

29.3%

380380 366366

209209

171

55.0%

45.0%

General Panasonic Electric Works Group

Panasonic Electric

Works

Greater sales to general customers

(-6.4%)

(-8.1%)

(12.9%)

Year ended

March 2009

Year ended

March 2008

Year ended

March 2006

Year ended

March 2007

Consolidated


Trends in Order BacklogTrends in Order Backlog

(¥100 Million)

0

10

20

30

40

50

60

37

49

35

57

49

45

37

47

36

29 28

24

08/31Q

09/31Q

08/32Q

08/33Q

08/34Q

09/32Q

09/33Q

09/34Q

10/31Q

10/32Q

10/33Q

10/34Q

Rebuilding of backbone systems for Panasonic Electric

Works completed

(-36.8%)

Consolidated


New Medium-term

Management Plan

FY2010–FY2012

Ver1.1


Profile of the Company

Company name

Date of

establishment

President

Business

Paid in capital

Number of

employees

February 22, 1999

Kazuhiro Maegawa

JPY 1.04 billion (as of March 31, 2010)

612 (as of March 31, 2010, consolidated)

1) Overall integration services related to information systems

2) Computer system management and operation

3) Computer software design, development, sales, and leasing

4) Information network services and sales of related ICT products

Panasonic Electric Works Information Systems Co., Ltd.

(Abbreviation) Panasonic Electric Works IS


Business Model

Proposals of systems

Proposals of solutions

System services

System solutions

System operation

Solution sales

Equipment sales

and installation

Equipment sales

63%

19%

18%

•ASP service

•Network service

•Outsourcing service

•Solution proposal

•Consulting

•Package software

development and sales

•Sales of computers,

servers, and

communications

equipment

•Network and facility

construction

Customers

Panasonic Electric Works Group

Outside thePanasonic Electric Works Group

55%29%

16%


Looking Back on Year ended March 2010

Winning Large/Mid-sized Customers [Major Examples]

ServiceService CustomerCustomer SolutionSolution

High-performance

server virtualization

business

Daiwa Securities Co. Ltd. Infrastructure building and operations

The Bank of Tokyo-Mitsubishi UFJ, Ltd. Infrastructure building

Manufacturer A Infrastructure building/design support

Manufacturer BInfrastructure building/ERP introduction

support

Golf Digest Online Inc Infrastructure building

ERP systems

business for core

functions

Manufacturer CRebuilding finance (accounting)

Sales/production management

Publisher DPlanning and building backbone

system

Data center business

Auto finance firms Server housing and operations

Package vendors Server hosting


Perception of Business Environment

■■■■ Outlook for IT Market

2009: More cancelled/postponed SI projects; falling prices for

operations services

2010: Negative growth due to impact of economic recession

2011: Growth will be positive, but full-scale return to growth will

start in 2012 or thereafter

Structural reforms in IT, integration/optimization of IT

infrastructure

From ownership to use: Cloud

Strict investment effectiveness

Business opportunities to harness “on-site capabilities”

■■■■ User Trends

From “biggest,

highest”

to “best, optimal”

From “biggest,

highest”

to “best, optimal”


New Medium-term Management Plan

FY2010–FY2012


％

New Medium-term Management Plan Sales and Profits (Profit Margin)

0

250

300

350

400

450

FY2009 (Actual) FY2010 FY2011 FY2012

40

45

50

¥100

Million

¥100 Million366 360

400

375

Sales Operating

income

0

43 44

45

49

11.9%12.2%

12.1% 12.3%

11.5

12.0

12.5Profit margin

[Year ended

March 2010]

[Year ending

March 2011]

[Year ending

March 2012]

[Year ending

March 2013]


New Medium-term Management PlanComposition of Sales (by Business)

▼▼▼▼ Steady move from solutions to services

0

50

100

150

200

250

300

350

400

450

FY2009 (Actual) FY2010 FY2011 FY2012

366 360

400375

SolutionsSolutions

ServicesServices

¥100 Million

230 226 226242

70 7687

91

66 5862

67Equipment

sales

Equipment

sales

[Year ended

March 2010]

[Year ending

March 2011]

[Year ending

March 2012]

[Year ending

March 2013]


▼▼▼▼ Sales outside the Panasonic Electric Works Group grow by 30%

0

50

100

150

200

250

300

350

400

450

366366 360360

400400375375

Panasonic Electric Works

Group

Panasonic Electric Works

Group

¥100 Million

259243 255

260

107 117120

140 Outside the Panasonic Electric

Works Group

Outside the Panasonic Electric

Works Group

Account for over 35% of sales

New Medium-term Management PlanComposition of Sales (by Customer)

FY2009 (Actual) FY2010 FY2011 FY2012[Year ended

March 2010]

[Year ending

March 2011]

[Year ending

March 2012]

[Year ending

March 2013]


New Medium-term Management PlanManagement Vision for 2012

Striving for Delight beyond “Satisfaction”


Reinforce partnerships with key customersReinforce partnerships with key customersCultivate key customers

Cultivate key customers

▼▼▼▼ Contribute to customers’ business, and grow together

IT

infrastructureInitiatives to accelerate reform of IT structure

Engineering IT Cultivate engineering IT field

Sales

expansion

Approach large/mid-sized companies with IT rationalization

proposals

New

businessesSelect and focus on key businesses

Overseas Build infrastructure for overseas development

Structural

reform

Combine capabilities and enhance human resources

training through reorganization

Rationalization Thoroughly pursue further rationalization

Quality Nurture “quality-first” mindset

11 Expand external sales leveraging “on-site capabilities”Expand external sales leveraging “on-site capabilities”

Thorough reorganization and rationalization through structural reforms

Thorough reorganization and rationalization through structural reforms

Expand external salesExpand external sales

Bolster management constitution

Bolster management constitution

22

33

New Medium-term Management PlanMajor Initiatives


Create continuing customers and double new

customers

Approach large/mid-sized companies with IT

rationalization proposals

Main targets

Numerical targets

for FY2012

(No. of customers)

Manufacturing industry (Companies with annual sales of ¥30b+, with focus

on large/mid-sized companies)

100–120

School corporations(Mid-sized/2,000 students)

80–100

Manufacturing wholesalers (Annual sales of ¥10b+)

60–80

1 Expand external sales



Theme Description

１１１１Infrastructure optimization

◆◆◆◆ Server/storage/network optimization solutions Virtualization, integration, implementing BCP

２２２２Design process reform

◆◆◆◆ Solutions to support speedup and efficiency of

product development in response to global

expansion

３３３３

System integration for core functions

◆◆◆◆ Build integrated system for core functions

◆◆◆◆ Support seamless integration of information on

supply chain

４４４４IT operations service

◆◆◆◆ Make business from structural reforms in IT, such

as revision of IT operations

Deploy cloud business

５５５５

Collaboration with Panasonic

Electric Works

◆◆◆◆ Solutions through new integration of system

equipment of Panasonic Electric Works Group and

IT

Target sales: ¥5 Billion

Select and concentrate on new/priority

businesses1 Expand external sales



Build infrastructure for overseas development

1. Enhance international IT support readiness

2. Build global IT infrastructure

Appoint international business reps

to support companies accelerating

overseas development

Build an organization with 100 overseas staff

1 Expand external sales



Initiatives to accelerate reform of IT structure

The IT IcebergExcess infrastructureExcess infrastructure

Overly Overly

complex complex

systemssystems

Tangled networksTangled networks

Information Information

explosionexplosion

Increased Increased

management management

loadload

S

S S

S

S

SS

S?

?

?

N

N

N

N

N

N

???

Obstacles visible on surfaceObstacles visible on surface

Root causes of problemRoot causes of problem

Rapid technical progress Rapid technical progress

and poor digestionand poor digestion

More complex More complex

operationoperation

From ownership From ownership

to useto use

IT more involved IT more involved

with business corewith business core

Rationalization pressure Rationalization pressure

and exhaustionand exhaustion

2 Cultivate key customers



1. Accelerate application consolidation

2. Simplify foundation of information systems

3. Build optimum domestic and international

networks

Initiatives to accelerate reform of IT

structure(Roll out design-process reform solutions)




Cultivate engineering IT field

1. Enhance IT support in engineering

tasks(Roll out design-process reform solutions)

2. Create businesses linked to Panasonic

Electric Works’ system products

3. Expand support for embedded-software

development business

On next pageOn next page

Design & development domain




Orders

Procurement

Production

Distribu

tion

Sales

ＳＣＭＳＣＭＳＣＭＳＣＭ

Prod.

planning

Eval./Testing

PrototypeEval.

Prod.

desig

n

Prod.

planning

ＱＱＱＱ

ＣＣＣＣ

ＤＤＤＤ

Quality issuesComplaints

Redone work/redesignRevisions/fixes

Lost opportunitiesFailure to meet targets

Standardi-

zation More parts

Stalled commonization

Cost Invisible costs

Stalled cuts

Product development challenges

impeding benefits of SCM

1. Enhance IT support in engineering tasks(Roll out design-process reform solutions)


Change

Distri-

bution

Sales

service

Recycling

Orders

Procure-

ment

Shared information

All stages reference/use

same information

All stages reference/use

same information

Specified development process

operated with precision

Specified development process

operated with precision

Idea

ApprovalRevision

Contact

Response

SCM

Design-process reform solutions

Product development

Prod.

Planning

Look &feel design

Prod.

design

Produc-tionprep.

Proto-typeeval.

Produc-

tion

Product

concept



Further rationalization;

Nurture “quality-first” mindset

1. Activities for simplification to reduce operation

& development costs

2. Ensure quality in the upstream phase of

development

Item Specific measures

Applications ・・・・Approx. 400 systems

Servers ・・・・Approx. 1,800 units

Quality

Improvement

・・・・Enhance development centers・・・・Concentrate operation centers

→→→→Half

→→→→Half

3 Bolster management constitution



Build organization adapted to changes in market environmentHuman resources training initiatives

1. Reorganize and expand businesses

2. Enhance human resources training

3. Develop international human resources

On next pageOn next page




1. Reorganize and expand businessesCustomers

Customers

SalesSales

Operation

centers

Development

centers

In front of customersIn front of customersBack officeBack office

Conserve labor

Improve constitution

(Operations

capability)

Conserve labor

Improve constitution

(Operations

capability)

Enhance SI ability

Create services

(Development

capability)

Enhance SI ability

Create services

(Development

capability)

Assist customers

with better efficiency

Assist customers

with better efficiencyAssist customers

with process reforms

Assist customers

with process reforms

Develop-

ment

Develop-

ment

Opera-

tions

Opera-

tions

Solution business

Service business

Technology

Development Operations

Global Business Operations




Repeated reductions & active expansions

Reduce costs by moving Tokyo

office

Greatly reduce cost (rent)

Absolute amount: -¥90 million/3 years

Move planned for the first half of 2010

Enhance sales force in Tokyo

metro area

Grow Tokyo office 1.5xLarge personnel shift

Further reduce operational

/development costsApplications

(400 systems)Servers

(1,800 units)Half

ReductionsReductionsSimple organization adapted to

market environment

6 headquarters10 bus. depts.

3 headquarters (-3)4 bus. depts. (-6)

FY2009 FY2010

ExpansionsExpansions

100 peopleFY2009

10 people

Strengthen global HR/build global org.

First global year

Vitalize org. with new people

30 new hires in FY2010



Be a company with strong “on-site capabilities”Be a company with strong “on-site capabilities”

Overcome with individual

dedication

×××× PersistenceOvercome antimonyQuality

Cost Speed

Turn into DNA with organization’s

commitment

Implement activities from customer’s perspective

Practice Q (quality) – C (cost) – S (speed)



Mindset/

etiquette

Mindset/

etiquette

Mechanisms/

technology

Mechanisms/

technology

●●●● Maintain/improve CMMI level 3

●●●● Improve SI/project skills

●●●● Improve employees’ quality of etiquette

- Start over from fundamentals

●●●● Customer satisfaction survey

- Recognize our current standing

Insistence on quality

Technical Skills + Human Skills

75%

25%

Two sides of “Delight in Quality”:

“Technical” and “Human”

Two sides of “Delight in Quality”:

“Technical” and “Human”



Plan for the Year Ending March 2011


Plan for the Year Ending March 2011

Year ended

March 2010

(¥ Million)

Year ending

March 2011

(¥ Million)

Change

(%)

Net Sales 36,650 36,000 (1.8)

Operating

income4,371 4,400 0.7

Ordinary

income4,400 4,450 1.1

Net income 2,562 2,600 1.4


� Providing returns to shareholders is one of the most important

management issues.

� Keep in mind the need to increase internal reserves for reinforcing

management foundations and long term growth.

� Actively and stably distribute surplus funds based on financial

performance.

� Maintain a stable dividend payout of 55 yen per share each year.

� Make the distribution of profits to the greatest extent possible in

accordance with our consolidated financial performance based on

comprehensive considerations of our status of fund, financial standing,

and payout ratio.

Dividend Policy

Year ended March 2010 Stable dividend ¥ 55 Payout ratio

Planned Performance-tied dividend ¥ 10 27.0%

Year ending March 2011 Stable dividend ¥ 55 Payout ratio

Forecast Performance-tied dividend ¥ 10 26.6%

Dividend Policy


Trends in Dividends

FY2005[Year endedMarch 2006]



FY2008Year endedMarch 2009]

(Yen)

0

10

20

30

40

50

60

70

80

[Planned]

FY2009 [Year ended March 2010]

Payout

ratio21.1% 19.5% 24.4% 28.7% 27.0% 26.6%

[Forecast]

FY2010[Year endingMarch 2011]

Dividend Dividend increaseincrease¥¥1010

¥45¥55

Stable

dividend

¥55

PerformancePerformance--tied dividendtied dividend

¥¥1010

Stable

dividend

¥55

PerformancePerformance--tied dividendtied dividend

¥¥1010

Stable

dividend

¥55

Performance-tied dividend

¥10

Stable

dividend

¥55

Performance-tied dividend

¥10

Memorial Memorial dividenddividend¥¥1010


This document includes the current plans and financial

forecasts of the Company. Those future plans and forecast

figures have been made based on information currently

available. Actual results may differ from those forecasts due to

various factors and conditions, therefore this document does

not assure or guarantee the realization of the plans and

forecasts.

Code No:4283

Presentation of Finances · 2013. 5. 30. · February 22, 1999 Kazuhiro Maegawa JPY 1.04 billion...

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Transcript of Presentation of Finances · 2013. 5. 30. · February 22, 1999 Kazuhiro Maegawa JPY 1.04 billion...