Results Briefing. for the Year Ended March 31, May 13, 2015 MOSHI MOSHI HOTLINE, INC.

Transcription

1 Translation Results Briefing for the Year Ended March 31, 2015 May 13, 2015 MOSHI MOSHI HOTLINE, INC. *NOTICE : This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail. Overview of FY2014

2 Results for the Year Ended Mar./15 (consolidated) Initial forecast Results for the Year Ended Mar./15 Change Achievement (million JPY) Results for the Year Ended Mar./14 Net Sales 75,000 74, % 79,209 Gross profit 10,641 12,701 SG&A Expenses Operating Income Ordinary Income 3,860 3,920 6,972 3,669 3, % 98.5% 7,253 5,448 5,605 Net Income 2,500 2, % 3,452 Increases in revenue and profits (yearonyear) in 2nd half after five half year periods Operating income was slightly below forecasts, but Net income was mostly in line with forecasts Copyright 2015 MOSHI MOSHI HOTLINE,INC. All Right Reserved. 3 Transition of Consolidated Sales (billion JPY) 60.0 Large Spot Business Revenue Consolidated Sales excluding the Large Spot Business Return to growth in fundamental businesses H 2H 1H 2H 1H 2H 1H 2H Mar./12 Mar./13 Mar./14 Mar./15 Copyright 2015 MOSHI MOSHI HOTLINE,INC. All Right Reserved. 4

3 Main Fluctuation Factors of Sales (Year on Year comparison) (billion JPY) Termination of spot business Government 8.3 Utilities 0.9 Poll Survey 0.2 Expansion of business in Manufacturing, Information and Distribution sector. Local Government +1.7 Poll survey +0.5 Copyright 2015 MOSHI MOSHI HOTLINE,INC. All Right Reserved. 5 Main Fluctuation Factors of OP (Initial forecast comparison) (million JPY) Unachieved in Digital Marketing due to delay of the hybrid channel service and costs associated with the startup of operation outsourcing services. Unachieved targets due to delay of the launch of automation service in customer care. Copyright 2015 MOSHI MOSHI HOTLINE,INC. All Right Reserved. 6

4 Consolidated Sales Classification by Industry (Telemarketing Business) Upper: Mar./14, Lower: Mar./15 Telecommunication (billion JPY) Financial service Utilities & infrastructure Government and municipal offices Broadcasting Manufacturing Information Distribution Services *Intergroup company transactions excluded Sales decreased in Government and Utilities sectors due to terminations of large spots business. Sales increased in manufacturing, information, and distribution. These businesses are fundamental businesses and are expected to contribute to profit from the next FY. Copyright 2015 MOSHI MOSHI HOTLINE,INC. All Right Reserved. 7 Consolidated Sales Classification by Services (Field Operation Business) (billion JPY) (million JPY) 10.0 Visiting 300 OTC (Over the Counter) Segment profit (Right axis) 200 Collection business remained stable as a result of improvement in work efficiency. Profitability of visiting services recovered, ceasing nonprofitable business Segment profit continues to improve Mar./13 Mar./14 Mar./15 0 *Segment loss of FY2012 is 289 million JPY *Intergroup company transactions excluded Copyright 2015 MOSHI MOSHI HOTLINE,INC. All Right Reserved. 8

5 Initiative Issues in FY Recovery fundamental profitability a) Steady growth in sales of fundamental businesses b) First increase in five halfyear periods for yearonyear revenue and profit during 2 nd half of Mar./15 2. Business structure change corresponding to changes in business circumstances a) Strategic Partnership with Nuance Communications, Inc. b) Establishment of a Joint Venture with Sony Mobile Communications Inc. Copyright 2015 MOSHI MOSHI HOTLINE,INC. All Right Reserved. 9 Initiative Issues in FY Strengthening business operations a) Introduction of a Regionallybased Fulltime Employment Program b) Fullscale launch of Group shared service center 4. Establishment of growth strategy Establishment of a midterm management plan Copyright 2015 MOSHI MOSHI HOTLINE,INC. All Right Reserved. 10

6 Midterm Management Plan for 2020 Review of Vision 2015 Key Issues of Previous Vision Strengthening Call Center Business 2. Developments of New Business 3. Further Strengthening of Management Structure 4. Extension of Overseas Operations Copyright 2015 MOSHI MOSHI HOTLINE,INC. All Right Reserved. 12

7 Review of Vision 2015 Achieved Items Strengthening of Management Activities Strengthening of Corporate Governance Recorded results in BPO Sector (billion JPY) Others 120 Field Operation Business Telemarketing related services Outbound services Inbound services Unachieved Items Target Figures Strengthening Call Center business Mar./11 Mar./12 Mar./13 Mar./14 Mar./15 Copyright 2015 MOSHI MOSHI HOTLINE,INC. All Right Reserved. 13 Our Facing Circumstances & Requirements Diversification, complication and sophistication of our customer s demand. Plenty of customer contact points through ICT development such as Call, , Web, Chat, SNS, etc. Structural change in Japanese work force, way of working and demographic pyramid. New business opportunities caused by social change such as introduction of national ID, deregulation, etc. Growth of consumer markets in Southeast Asia. Copyright 2015 MOSHI MOSHI HOTLINE,INC. All Right Reserved. 14

8 New Corporate Name Our corporate name will be changed as follows on October 1, Japanese: りらいあコミュニケーションズ株式会社 English: New Corporate Name Relia, Inc. The new corporate name will be decided at the stockholders meeting to be held in June Copyright 2015 MOSHI MOSHI HOTLINE,INC. All Right Reserved. 15 New Group Name Group Name Relia Group Copyright 2015 MOSHI MOSHI HOTLINE,INC. All Right Reserved. 16

9 Group Vision Group Vision 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. Copyright 2015 MOSHI MOSHI HOTLINE,INC. All Right Reserved. 17 Vision 2020 Reliable Ring, connecting People, Society, Corporations, and Organizations. Clients and Organizations From service supply to service creation People and Society Relia works to connect voices and ideas of clients with the power of people Produce new customer experiences through business creation with clients Automated process management, using advanced technology Group companies synergy for global Multiple work methods and talent management Priority on CSR Through Business Strategy 2018, our power to connect will be raised to evolve our functions. Copyright 2015 MOSHI MOSHI HOTLINE,INC. All Right Reserved. 18

10 Business Strategy 2018 (3 Keys and 7 Actions) Key1 Satisfy various customer needs 1. Enhancing our function to offer various customer experiences 2. Strengthening field operations Key2 Grow with society 3. Business expansion in line with changes of social regulations and circumstances Strengthening of core Competence 5. ICT 6. Talent 7. Marketing Key3 Challenge new possibilities 4. Global organization through strengthening Asian business Copyright 2015 MOSHI MOSHI HOTLINE,INC. All Right Reserved. 19 Business Strategy 2018 (3 Keys and 7 Actions) Key1 Satisfy various customer needs Key2 Grow with society 1. Enhancing our function to offer various customer experiences Establish our service adapting various communication channels and integrated solutions. (ex. omnichannels.) Strengthen group companies strong points so that we can meet various customer s needs. 2. Strengthening of field operations Create comprehensive and value added services with group companies. 3. Business expansion in line with changes in social regulations and circumstances Expansion of back office services, taking into account of various social and public changes. Key3 Challenge new possibilities 4. Global organization through strengthening Asian business Strengthening of overseas networks in main ASEAN countries. Copyright 2015 MOSHI MOSHI HOTLINE,INC. All Right Reserved. 20

11 Business Strategy 2018 (3 Keys and 7 Actions) Strengthening of Core Competence 5. ICT Investment in strategical ICT amounting to 0.8 to 1.0 billion yen annually to realize advanced ICT service. 6. Talent Strengthening active recruitment, creating an appealing work environment, and strengthening local employment. 7. Marketing Enhancement of our ability to provide optium customer experience, through analyzing customer s voice, etc. Copyright 2015 MOSHI MOSHI HOTLINE,INC. All Right Reserved. 21 Target Figures <Steady Case> Consolidated Mar./15 A Mar./16 E Mar./18 plan (billion JPY) Mar./20 plan Net Sales < 89.0< Operating Income < 7.0< Profit attributable to owners of parent Target Figure Conditions : < 5.0< Traditional business grows to a certain level by the end of March Growth of traditional business is limited. Profit rate will improve continuously. Copyright 2015 MOSHI MOSHI HOTLINE,INC. All Right Reserved. 22

12 Target Figures <Upside Case> Consolidated Mar./15A Mar./16E Mar./18 plan (billion JPY) Mar./20 plan Net Sales > 127> Operating Income > 12.0> Profit attributable to owners of parent Target Figure Conditions : > 8.0> Newly developed business have been realized as execution of Midterm Management Plan for M&A, domestic and overseas. Administration of large spot business. Copyright 2015 MOSHI MOSHI HOTLINE,INC. All Right Reserved. 23 Target Figures and Return to Stockholders <Steady Case> Net Sales (billion JPY) Field operation Backoffice Contact center Operating Income<Steady case> Operating Income(billion JPY) ROE target: 8%< Dividend policy (payout ratio): 50%< Mar./15 A Mar./16 E Mar./18 E Mar./20 E Dividend policy may be changed in case management environment to be remarkably changed such as big investments. Copyright 2015 MOSHI MOSHI HOTLINE,INC. All Right Reserved. 24

13 Target Figures and Return to Stockholders <Upside Case> Net Sales (billion JPY) Net Sales <Steady case> Net Sales <Upside case> Field operation Back office Contact center Operating Income <Upside case> Operating Income<Steady case> ROE target: 8%< Operating Income(billion JPY) Dividend policy (payout ratio): 50%< Mar./15 A Mar./16 E Mar./18 E Mar./20 E Dividend policy may be changed in case management environment to be remarkably changed such as big investments. Copyright 2015 MOSHI MOSHI HOTLINE,INC. All Right Reserved. 25 Business plan for FY2015

14 Priority Issues and Initiatives for FY Driving Business Strategy Change of business structure in response to environment changes 3. Strengthen Group synergy 4. Strengthen IR, CSR, Corporate Governance Copyright 2015 MOSHI MOSHI HOTLINE,INC. All Right Reserved. 27 Budget of Fiscal Year 2015 (consolidated) (million JPY) Results for the year Ended Mar./15 Annual Forecast Change % change Forecast for the 1 st half Net Sales 74,235 81,000 6, % 37,450 Operating Income 3,669 4, % 1,670 Ordinary Income 3,862 4, % 1,670 Profit attributable to owners of parent 2,479 3, % 1,130 Expected increase in revenue and profits (yearonyear) after three year period. Assuming leading investment for future growth changes. (ex. Establishment of new operation center, Investment in most advanced ICT facilities, Cost relating to change of company name) Copyright 2015 MOSHI MOSHI HOTLINE,INC. All Right Reserved. 28

15 Main Fluctuation Factors of Sales (Forecast) (billion JPY) Spot businesses for local government and pollsurvey Telecommunications Government Expansion of Fundamental business, Automation services Copyright 2015 MOSHI MOSHI HOTLINE,INC. All Right Reserved. 29 Reference : Change of reportable segments Change of reportable segments as business strategy on Midterm Management Plan for Segments(Old) Segments (Changed) Telemarketing business Inbound services Outbound servicess Telemarketing related services Field Operation business Others Contact Center business BackOffice business Field Operation business We provide support of marketing activities like customer care through telephone, e mails and the Internet. We provide backoffice services like data entry or processing for clientʼs general affairs and/or human resources sections. The Field Operation business provides marketing assistance services or research services via facetoface communication including storefront operations and business visits. Copyright 2015 MOSHI MOSHI HOTLINE,INC. All Right Reserved. 30

16 Returns to Shareholders Dividend Forecast Dividend Policy DPS (JPY) 51% 51% 58% 37.5 Ordinary Dividend Payout Ratio : Annual JPY 29 per share Interim dividend: JPY 14 per share, yearend: JPY 15 per share : 50% dividend payout ratio Unless drastic change in the business environment like largescale investment % % 90% 80% 70% 60% 50% 40% 30% 20% 10% Payout Ratio (Consolidated) 0 0% Mar./12 Mar./13 Mar./14 Mar./15 Mar./16E Adjusted for 1for2 stock split effect (October 2011) Copyright 2015 MOSHI MOSHI HOTLINE,INC. All Right Reserved. 31 <U.S. dollar basis> Reference : Results for the Year Ended Mar./15 (consolidated) Initial forecast Results for the Year Ended Mar./15 Change Achievement (million USD) Results for the Year Ended Mar./14 Net Sales % Gross profit SG&A Expenses Operating Income Ordinary Income % 98.5% Net Income % 28.7 * All U.S. dollar amounts are presented solely for the reader s convenience and are translated at =US $1, the approximate exchange rate at March 31, Copyright 2015 MOSHI MOSHI HOTLINE,INC. All Right Reserved. 32

17 Reference : Budget of Fiscal Year 2015 (consolidated) <U.S. dollar basis> (million USD) Results for the year Ended Mar./15 Annual Forecast Change % change Forecast for the 1 st half Net Sales % Operating Income % 13.8 Ordinary Income % 13.8 Profit attributable to owners of parent % 9.4 * All U.S. dollar amounts are presented solely for the reader s convenience and are translated at =US $1, the approximate exchange rate at March 31, Copyright 2015 MOSHI MOSHI HOTLINE,INC. All Right Reserved. 33 Reliable Ring We aim to be Corporate Group to esteem a reliable relation with customers by our power to connect.

18 Cautionary Statement This material contains statements (including figures) regarding MOSHI MOSHI HOTLINE, INC. ( MHL )'s corporate strategies, objectives, and views of future developments that are forwardlooking in nature and are not simply reiterations of historical facts. These statements are presented to inform stakeholders of the views of MHL's management but should not be relied on solely in making investment and other decisions. You should be aware that a number of important risk factors could lead to outcomes that differ materially from those presented in such forwardlooking statements. These include, but are not limited to, (i) change in economic conditions that may lead to unforeseen developments in markets for products handled by MHL, (ii) fluctuations in currency exchange rates that may cause unexpected deterioration in the value of transactions, (iii) adverse political developments that may create unavoidable delays or postponement of transactions and projects, (iv) changes in laws, regulations, or policies in any of the countries where MHL conducts its operations that may affect MHL's ability to fulfill its commitments, and (v) significant changes in the competitive environment. In the course of its operations, MHL adopts measures to control these and other types of risks, but this does not constitute a guarantee that such measures will be effective. All rights reserved. Copyright 2015 MOSHI MOSHI HOTLINE,INC. All Right Reserved. 35