Increased New Orders and Sales Compared with Previous Year and Plan. 100 million

Transcription

1 September 2006

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3 Increased New Orders and Sales Compared with Previous Year and Plan Attained B FLET S sales plan Increased capital investment in response to number portability Expanded mobile facilities in NCC business Steep rise in optical cable installation Sharply increased construction to cover wider area and improve quality Increased construction work by enhancing nationwide sales/construction structures New Orders Net Sales % 0 0% 100 million % % 100 million 2,843 3,100 3,100 2,896 3,074 3,000 Mar Mar Plan Mar Mar Plan Note: The figures for the March 2005 term cover 12 months, with three months excluded for comparison purposes, as the settlement term of Nippon COMSYS consolidated subsidiaries was amended. 3

4 Sharp rises in Operating Income and Recurring Profit compared with previous year Net sales exceed projections Reduced costs by steadily implementing management efficiency measures Improved construction revenues and expenditures of consolidated subsidiaries Plan Attainment 4.8% % +25 Operating Income +0.5 pt 5.3% million % +16.9% 0 pt 5.3% 5.5% +0.6 pt Recurring Profit 6.1% % +0.1 pt 100 million 6.0% 180 Mar Mar Plan Mar Mar Plan Note: The figures for the March 2005 term cover 12 months, with three months excluded for comparison purposes, as the settlement term of Nippon COMSYS consolidated subsidiaries was amended. 4

5 Management policies 1. Strive to ensure that COMSYS HD is acclaimed by all stakeholders 2. Make efforts to create new work in all business categories 3. Aim to raise productivity in all business categories Make total response to increased demand by maximizing construction capabilities Strive to continually raise profitability via ongoing kaizen (improvement) 100 million Mar Mar Business Plan Change % Change New orders 3,100 3, % Net sales Operating income (Operating income margin) Recurring profit (Recurring profit margin) Net income (Net profit margin) 3, , % 5.3% % % 6.1% % % 3.3% % % 5

6 (1) To be the No. 1 company in infrastructure development (i) Set up a separate entity to ensure proper governance (ii) Develop COMSYS-Style Kaizen to strengthen business front line (2) Aiming to be a Systems Integrator in construction business (i) Product power (ii) Technological ability (iii) Advisory ability (3) Maximizing the effect of business integration Making the best use of the Pure Holding Company System (i) Concentration and selection (reorganization of business companies) (ii) M&A; alliances 6

7 Medium-term management Strategy Net sales: 345 billion Proportion of Non-NTT sales: 46% Operating margin: 5.8% Recurring profit margin: 6.2% 100 million New orders 3,100 3, , , Net sales 3,074 3, , , Operating income (Operating income margin) (5.3%) (5.4%) +0.1p (5.6%) +0.2p (5.8%) +0.2p Recurring profit (Recurring profit margin) (6.1%) (6.0%) 0.1p (6.2%) +0.2p (6.2%) 0p Net income (Net profit margin) (3.3%) (3.5%) +0.1p (3.5%) 0p (3.5%) 0p 7

8 Abrupt changes Sharp rise in B FLETS construction Acceleration of construction to respond to MNP Net sales ( 100 million) Net sales in NTT DoCoMo business 1,653 Second (FY2005) medium-term management plan target values et sales in non-ntt business 1,277 1,640 1,410 NCC-related business favorable Government sector, private sector, and IT solutions business struggled amid worse-than-expected intensifying competition 1,600 1,600 FY2006 medium-term management plan target values NTT DoCoMo business Strive to take full advantage of favorable conditions of NTT DoCoMo-related business Non-NTT business 1. Further acceleration of net sales in NCC businessfirmly held industry No. 1 share 2. IT Solutions business to maintain high sales growth and emphasize profits Mar Mar Mar Mar

9 Net Sales ( 100 million) Second-generation Third-generation B FLETS Rapid increase in tower construction Increased construction for number portability Mobile Access Enter business for maintenance and introduce super 3G Expand maintenance, agency and ubiquitous business Intra-office Enter business for building NGNs Vendor domain) New nodes Enter maintenance business NTT becomes a holding company CHD management integration Figures for Nippon Comsys only 9 (Mar. 2006) (Mar. 2008) CHD consolidated figures Infrastructure (Mar. 2010) Maintenance proposals for infrastructure facilities

10 Expand Infrastructure and Peripheral Businesses to the fullest Net Sales ( 100 million) Mar. 06 Mar. 07 Mar. 09 Secure quick-decision structure in gearing up for 30 NTT Group Business million optical cable subscribers Enter domain for building NGN vendor domain Establish a structure for maintenance of existing facilities (Establish receptacle structure for the 2007 problem) FMC (integration of fixed and mobile communications) Proactive entry into agency business Proactive initiatives toward ubiquitous businesses NTT DoCoMo 760 Total Net Sales of NTT Business 1,841 1,850 1,850 10

11 Transform the construction business into a manufacturing business within the world of virtual reality Create new construction business managementapportionment of work among companies (Data flow systems) Visualization of workplaces that are distant or that move (Real-time management) Customer unit Integrated management from order receipt to payment collection Parties taking on work share information equally Real-time schedule management of work parties Fostering a highly realistic sense of being present between the work party and person in charge of construction Speedier implementation of flexible ad-hoc steps Collection of a wide range of management indicators Eliminate waste at worksites and ensure that kaizen DNA is firmly in place 11Visualization of Rectify work flow

12 and other regular civil engineering business Infrastructure \ Results for March 2006 period Numerical targets of fiscal 2006 medium-term management plan BusinessRe-list Construction Business IT Solutions Maintenance IT Solutions Business 60 NTT becomes a holding company integration 09 (Mar. 06) (Mar. 08) (Mar.09) (Mar. 10) Figures for Nippon Comsys only CHD management 12 Overseas CHD consolidated figures

13 Attain Non-NTT Net Sales of 160 Billion by the Fiscal Year Ending March 31, 2009 Continuous Expansion to Ensure Management Stability Net Sales ( 100 million) Mar. 06 Mar. 07 Mar. 09 Growth Businesses Mature Businesses Expand orders through carrier free and area free and firmly maintain industry no. 1 share for NCC Expand and strengthen nationwide structure for construction Maintain safety and quality As a new pillar, secure acclaim as a systems integrator in telecommunications construction Expand sales by strengthening sales structure for brand products Establish nationwide maintenance structure Secure profits New responses to mature businesses Government sector: Establish business model that responds, from e-japan to U-Japan Electrical facilities: Proactively respond to demand for building renovation, mainly in private sector (Integrated electric/information construction) Building/eco: Develop models that enable accumulation of business know-how NCC IT Solutions Construction Total sales of Non-NTT business 1,233 1,300 1,600 13

14 (1) Effect of selection & concentration Integration of of NTT business in in metro Tokyo Consolidation & closure of of engineering companies (Alster; Sunnetcom) (2) Effect of unification of operations handled by group companies Integration of internal systems Enhancement of operations of Comsys Shared Service Co. (3) Effect of M&A & alliance formation Alliance with IT vendors such as Nissho Electronics Tie-up with Unique Link for development of Comsys brand products Reorganisation of of Access related affiliates in in the Metropolitan area Promoting outsourcing of of information business Centralized buying Comsys-style kaizen Integrated business operation in in the the use of of real estate & other areas Forming alliances to to expand maintenance business Alliance for IT IT Solution business expansion Amount added through managerial improvement ( 100 million) (4)Company s own measures to improve management Clarifying the roles of of CHD & subsidiaries; and reassigning personnel Normalizing outsourcing expenses Total amount contributed by managerial improvement (of this, the synergy effect amount) 14

15 (Unit: Person) Cisco Microsoft Oracle Linux Maker / Certification Period CCIE 1 MCSE 2 PLATINUM GOLD 3 LPIC2 4 FY2005 (results) ( ) FY2008 (Plan) , , CCIE Cisco Certified Internetwork Expert is the top qualification for the engineer recognition by Cisco, a maker for network appliances, such as routers. 2 MCSE Microsoft Certified Systems Engineer is the top qualification for the engineer qualification system by Microsoft. 3 4 PLATINUM GOLD The top qualification for the vendor quality recognition series by Oracle Japan. This qualification is also recognised as the global qualification by Oracle, Oracle Certified Professional (OCP) LPIC2 LPIC is an abbreviation of Linux Professional Institute Certification, and it is the certification examination for Linux engineers run by LPI, a specified non-profit corporation that accredits Linux engineers. 15

16 Setting up an advisory board and undertaking operations that utilize the holding company framework (Implemented from April 2006) Promote corporate social responsibility (CSR) Establish CSR Committee Upgrade environmental and social contribution activities Adhere strictly to compliance Strict adherence to laws (strengthen preventive measures) Strengthen internal operation audits and legal checks Strengthen risk management Establishment of Risk Management Committee Establishment of TOB countermeasure project Establish internal control system Set up internal control deliberation project Formulate Basic Policies for Building Internal Control System COMSYS Group Expand M&A and alliances to transform business formats and expand operations Tie-ups with IT companies Utilize treasury stock and cash Raise productivity through cost reductions Thoroughly implement COMSYS-style Kaizen Promote management improvement measures Implement safety measures thoroughly Elevate safety awareness Carry out basic actions thoroughly 16

17 Shareholders (as of September 30, 2005) Distribution of shares by owners (as of March. 31, 2006) Major shareholders Trust account of Japan Trustee Services Bank Trust account of Master Trust Bank of Japan Japan Trustee Services Bank (trust account for Fujikura s retirement benefits, entrusted by Mitsui Asset Trust & Banking Co.) Sumitomo Electric Industries, Ltd. Furukawa Electric Co., Ltd. Number of shareholders Number of shares held (1,000 shares) 14,495 12,929 6,834 5,166 5,166 9,036 Equity % 8,478 owners 28.97% 245 owners 12.24% 191 owners Financial institutions Other corporations Individuals, other owners 2.99% 35 owners ecurities companies Foreign corporations (for comparison) Distribution of shares by owners (as of March 31, 2005) 16.86% 9,349 owners Ratio of non-japanese ownership of shares 28.97% 26.85% 211 owners owners % 162 owners Financial institutions Other corporations Individuals, other 2.08% 31 owners Securities companies Foreign corporations

18 COMSYS Holdings Corporation Establishment 30 September 2003 Paid-in Capital: 10,000 million Number of Employees Consolidated 7,081 Non-consolidated 24 [As of 31 March. 2006] SANWA COMSYS Engineering Corporation Address: 6-17, Aobadai 3-chome Meguro-ku, Tokyo , Japan Commencement of Business: 1 August1947 Establishment: 12 September 1947 Paid-in Capital: 3, million Number of Employees Consolidated 1,200 Non-consolidated 640 URL: Nippon COMSYS Corporation Address: 23-14, Takanawa 3-chome Minato-ku, Tokyo , Japan Establishment 20 December 1951 Paid-in Capital: 31, million Number of Employees Consolidated 4,810 Non-consolidated 3,187 URL: TOSYS Corporation Address: , Higashiyama Aza, Watauchi, Wakaho, Nagano , Japan Establishment: 23 January 1960 Paid-in Capital: 500 million Number of Employees Consolidated 1,047 Non-consolidated 403 URL: Consolidated Subsidiaries: 6 Companies Consolidated Subsidiaries: 15 Companies Consolidated Subsidiaries: 7 Companies 18

19 . Japan was able to formulate a telecommunications infrastructure plan on its own after the conclusion of a peace treaty in However, the plan called for the establishment of a telecommunications installation company that could create a nationwide telecommunications network. Leaders of Japan s business world established Nippon Telecommunications Construction Co, Ltd in 1951, a year before the establishment of NTT, to begin installation of Japan s lifeline telecommunications network. The founder of Nippon Telecommunications Construction was Taizo Ishizaka, called the prime minister of the business world at the time, and Tsuyoshi Kajii, who later became the first president of NTT, was an advisor Founded as The Nippon Telecommunications Construction Co., Ltd. Certified as the first top comprehensive contractor by Nippon Telegraph and Telephone Public Corporation (Former NTT) Listed on the Tokyo Stock Exchange, Second Section Listed on the First Section of the Tokyo and Osaka Stock Exchanges Changed our name from The Nippon Telecommunications Construction Co., Ltd. to Nippon COMSYS Corporation Certified as comprehensive contractor for telecommunications construction projects by NTT Paid-in capital exceeded 10 billion Orders received and net sales exceeded 200 billion Paid-in capital exceeded 30 billion 50 th Anniversary of the Company s founding Selected as one of the 225 companies included in the Nikkei Stock Price Index Establishment of COMSYS Holdings (Ticker Code: 1721) 19