Settlement of Accounts in the Second Quarter of the Fiscal Year Ending March 31, 2012 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, and actual business performance can be different depending on the development of the business environment hereafter.
Subject of Today s Briefing Fiscal Year Ending March 31, 2012 Outline of the Cumulative Second Quarter Consolidated Business Performance Fiscal Year Ending March 31, 2012 Forecasts of Consolidated Business Performance Medium-term Management Plan Ending Ending
Fiscal Year Ending March 31, 2012 Outline of the Cumulative Second Quarter Consolidated Business Performance
Fiscal Year Ending March 31, 2012 Outline of the Cumulative Second Quarter Consolidated Business Performance Net sales Network solutions field Security solutions field Operating income Ordinary income Net income Net income per share (yen) 2QFY11/Mar. Actual Result 217 5.8 4.1-1.4-2.37 yen 2QFY12/Mar. Actual Result 176 2.0 1.4 0.6 1.06 yen -41-3.8-2.7 +2.0 +3.43 yen (100 millions of yen) Year-over-year Change Ratio of Change -19% 97 94-3 -4% 120 82-38 -31% -65% -65% - -
Fiscal Year Ending March 31, 2012 Cumulative Second Quarter Consolidated Net Sales (By field) Security solutions Network solutions 217 (100 millions of yen) 176-3.8 billion yen Parts, etc. 2.5 billion yen Year-over-year -3.0 billion yen Security systems 120 82 5.7 billion yen Year-over-year -0.8 billion yen Network equipment, etc. 97 94-0.3 billion yen 3.8 billion yen Year-over-year +0.6 billion yen Key telephone systems 2QFY11/Mar. 2QFY12/Mar. 5.6 billion yen Year-over-year -0.9 billion yen
Breakdown of Major Changes in Operating Income (2QFY11/Mar.~2QFY12/Mar.) Operating income 580 million yen Decreased variable cost 320 million yen Operating income 200 million yen 2Q FY11/Mar. 2Q FY12/Mar. Impact of decreased sales 1.1 billion yen Increased development cost -100 million yen Reduced material cost 200 million yen Difference in product mix 300 million yen 6/25
Fiscal Year Ending March 31, 2012 Outline of the Second Quarter Balance Sheet Assets Current assets Fixed assets Deferred assets Total assets End of FY11/Mar. (A) 241 192 1 434 End of FY12/Mar. (B) 233 186 0 419 (100 millions of yen) Change (B-A) -8-6 -1-15 Liabilities/Net assets Current liablities Long-term lialibities Total liabilities Net assets Total liabilities and net assets End of FY11/Mar. A 119 85 204 230 434 End of FY12/Mar. (B 119 72 191 228 419 Change (B-A) 0-13 -13-2 -15
Fiscal Year Ending March 31, 2012 Forecasts of Consolidated Business Performance
Fiscal Year Ending March 31, 2012 Forecasts of Consolidated Business Performance Net sales Network solutions field Security solutions field Operating income Ordinary income Net income Net income per share (yen) FY11/Mar. Actual Result 429 11.4 10.3 2.9 4.77 yen FY12/Mar. Forecasts 425 10.0 9.0 5.0 8.26 yen Dividend (forecast) 3 yen 3 yen Change -4-1.4-1.3 +2.1 +3.49 yen (100 millions of yen) Year-over-Year Ratio of Change -1% 200 210 +10 +5% 229 215-14 -6% -12% -13% +73% +73% 9/25
Fiscal Year Ending March 31, 2012 Forecasts of Consolidated Sales Security solutions Network solutions 429 425 (100 millions of yen) -1.4 billion yen Parts, etc. 7.5 billion yen Year-over-year -2.1 billion yen 229 215 Security systems 14 billion yen Year-over-year +0.7 billion yen Network equipment, etc. 200 210 +1 billion yen 9.4 billion yen Year-over-year +2.4 billion yen Key telephone systems FY11/Mar. FY12/Mar. Forecast 11.6 billion yen Year-over-year -1.4 billion yen
Breakdown of Major Changes in Forecasted Operating Income (FY11/Mar.~FY12/Mar.) Operating income 1.14 billion yen Impact of decreased sales -100 million yen Difference in product mix -300 million yen Operating income 1 billion yen Increased development cost -100 million yen Reduced material cost, etc. 360 million yen FY11/Mar. FY12/Mar. Forecast
Investment in Business Development FY11/Mar. Actual Result FY12/Mar. Forecast (100 million yen) Year-over-Year Change Capital investment (tangible) 6 6 0 Capital investment (intangible) 17 25 +8 Total 23 31 +8 R&D expenses 51 52 +1 Depreciation expenses 27 26-1
Medium-term Management Plan (FY Ending March 2012 to FY Ending March 2014)
Changes in Business Environment Big Changes in Business Environment Negative impact by the Great East Japan Earthquake and actualization of a possibility of new businesses Uncertain global economy such as the European credit crisis, U.S. debt problem, etc. Impact by the flood damage in Thailand Diversification and progress of ICT services through cloud services and smart phones Engagements of Our Company Group Early creation of new products meeting market requirements in line with the constantly changing environment Course correction in business in response to diverse market changes Review of SAXA Medium-term Management Plan
Business Development Market-in Network solution Markets attended by SAXA Office market Small and medium offices Automatic security Shops Finance Amusement market Theme park Resort facilities Game Center Hall Social infrastructure/ education / nursing care market Education Nursing care, welfare Telemetering Electricity Provision of solutions Transport/ settlement market Railway Bus Distribution Roads Overseas market USA Europe China Asia 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 SAXA adopts the ideas of market-in and open innovation to offer timely solutions which are high-value added and realize security, safety, comfort and convenience from perspectives of customers. Office market Amusement market Social infrastructure (Education, Nursing care) market Transport/settlement market Overseas market
Office Market 22.2 billion yen (FY12/Mar. Forecast of sales) 130% Security center Call center Cloud service Key telephone system Office Store Finance Integrated threat management appliance (SS1000) Network camera system Eco-lighting Radio LAN sensor (WL 100) Network video recorder Security cotroller Exchange diverse information anytime and anywhere Key telephone system Security system Multi-network gateway (AgreaMP1000) Digital signage Key telephone system Network video recorder Auto-phone Digital signage Network camera system
Office Market Topics: IP telephony field Started joint development of a new product with OKI Domestic IP telephony field including IP-PBX for small and medium offices Further reinforcing products by integrating the strengths of both companies Creation of competitive products responding to diversifing needs Release of a new product (scheduled in spring of 2013)
Office Market Topics: Radio Sensor WL100 Visualizing system of power consumption is easily realized by utilizing radio LAN sensor Low power Radio LAN sensor WL100 equipped with plural sensors (sample sales started in September 2011) Visualization of power Information on electric power consumption in an office and home is easy collected. Image of system configuration Commercially available access point Agriculture support Information on temperature, humidity and illumination in a plastic greenhouse is easily collected using an illumination sensor and temperature and humidity sensors. Security Immediate information on an intruder (or a past record of intrusions) is collected using contact and passive sensors. PC Power consumption in Building D (Target value: 117kWh or less) Internet Mobile phone Watch Necessary information is collected to watch over an elderly person living alone using temperature, humidity and illumination sensors and a passive sensor. Picture of consumed electric power Tablet terminator
Amusement Market 8 billion yen (FY12/Mar. Forecast of sales) 150% Pachinko-related equipment Hall Resort facility, golfing course, etc. Card equipment Telesecurity device Parking management system Digital signage Network camera system Pachinko hall Gate control Monitoring on the premises Hi security ASP service AD information, etc. Storage and distribution Browse and control of image and system information Server Tablet terminator Administrator PC
Social infrastructure (education, nursing care) Market 4.1 billion yen (FY12/Mar. Forecast of sales) 140% Nursing care, welfare Telemetering Network camera system Wanderer detection sensor Telemeter LP gas, town gas, water works, etc. Communication network Center Nurse callinterlocking system Network Falling detection sensor Nurse call-interlocking system Eco-lighting (building management) Solution for visualization of power Electric power Security system Monitoring system (building management) Remote teaching Home study Education Cafeteria/student hall Student information terminal Cashless system Work management/ enrollment management Library Print management Entry control gate Classroom Attendance management system PC log-on system Access control Network camera system
Social infrastructure (education, nursing care) Market Topics: Sensors Radio LAN sensors Image sensors Radio sensors for watch and security Bus-line sensors for security Detection sensors for getting-out-of bed Ultrasonic sensors
Social infrastructure (education, nursing care) Market Topics: Radio collection system for card timer-utilized data Card-utilized data of card-system TVs is easily collected by multihop connection via assured 1mW specified low power radio system (920MHz) even in a site without medical care (Release is scheduled in January 2012) Hospital Nurse station Specified low power 920MHz band radio Extension Confirmation of card timer balance Card timer Hospital room
Transport/settlement Market 2.9 billion yen (FY12/Mar. Forecast of sales) 160% Highway SA/PA Railroad yard ITV cameras IP emergency phones Head counting Drive disk recorders Destination guide plate signage IP TV intercoms Clear call in a station noise Call recording & simultaneous broadcast Conversion of text message Train is 15 minutes late due to an earthquake Head counting sensors In-vehicle cameras Train is 15 inutes late due to an earthquake Control PC Intercoms between booths KIOSK & signage Safety monitor by images Detection of carts and suspicious objects on railroad platforms Management office intercoms Network video recorder Suspicious object Cart
Overseas Market 600 million yen (FY12/Mar. Forecast of sales) 160% Early release of a voice alarm responding to a new standard Collaboration with a Chinese partner company and a release of a camera monitoring system Expansion of area by utilizing existing products such as alarms and simultaneous broadcast Expanding business opportunities via existing marketing channels such as automatic security systems and image products in emerging countries
Targets Security solutions Network solutions 429 425 550 (100 millions of yen) 600 FY11/Mar. Actual Result FY12/Mar. Forecast FY14/Mar. Target Target Net sales 42.9 billion yen 42.5 billion yen 55 billion yen 60 billion yen Ordinary income 1.03 billion yen 0.9 billion yen 2.5 billion yen 3 billion yen Ordinary income margin 2.4% 2.1% 4.5% 5% or more Total assets turnover 0.9 times 1.0 times 1.3 times 1.5 times or more
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.