http://panasonic-denkois.co.jp
Code No:4283
Panasonic Electric Works Information Systems Co., Ltd.
Presentation of FinancesFirst half ended September 30, 2008
October 24, 2008Takeyoshi Kawamura,
President
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1) Overall integration services related to information systems 2) Computer system management and operation3) Computer software design, development, sales, and leasing4) Information network services and sales of related ICT products
Panasonic Electric Works Information Systems Co., Ltd.
February 22, 1999
Takeyoshi Kawamura
JPY 1.04 billion (as of September 30, 2008)
575 (as of September 30, 2008,consolidated)
Business
Paid in capital
Number of employees
President
Companyname
Date of establishment
Profile of the Company
On October 1, 2008, Matsushita Electric Works Information Systems has changed its name to Panasonic Electric Works Information Systems Co., Ltd.
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2. System and communications 2. System and communications equipment businessequipment business
System servicesSystem services
System solutionSystem solution
1. Service solutions businessDevelopment of business around solutions
System operationSystem operation
Solution salesSolution sales
Equipment sales Equipment sales and installationand installation
Business Model
Proposals of systemsProposals of systems
Proposals of solutionsProposals of solutions
1. ASP service2. Network service3. Outsourcing service
1. Solution proposal2. Consulting3. Package software
development and sales
1. Sales of computers, servers, andcommunications equipment
2. Network and facility construction
Topics of the First Half of FY2008
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Overview of the First Half of FY2008
1,3772,3242,262
18,427
First half of FY2008
7.5%
12.6%
12.3%
-
Ratio to net sales (%)
102.6%2,206Operating income
96.4%19,117Net sales
101.4%2,291Ordinary income
102.7%1,341Net income
YoYFirst half of FY2007(Million yen)
19,117 18,427
2,2622,206
12.3%11.5%
Consolidated
(Million yen))
Net sales Net salesOperating income
Operating income
First half of FY2007 First half of FY2008
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(Million yen))
11,728 11,796 11,946
2,750 3,695 3,5903,426
3,625 2,891
64.8%
19.5%
15.7%
61.7%
19.3%
19.0%
65.5%
15.4%
19.1%
0
5,000
10,000
15,000
20,000
Net Sales by Business (First Half)
62.4%57.1%
50.5%54.8%
58.5% 60.6%
9.0% 10.7% 9.4%15.2%
21.4%
32.2%
40.2%
30.0%
22.1%
19.5% 18.1%
28.6%
0
10
20
30
40
50
60
70(%)
17,90519,117 18,427
Consolidated
System and communications equipment
System solutions
System services
System servicesSystem solutions
System and communicationsequipment
First half of FY2007 First half of FY2008First half of FY2006
FY2002 (ended November 2002)
FY2003 (ended November 2003)
FY2004 (ended November 2004)
FY 2005 (ended March 2006)
FY 2006 (ended March 2007)
FY 2007 (endedMarch 2008)
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Efficient and Sound Management
High Productivity, High ProfitabilityOrdinary income per employeeOperating Margin
90.4 million yen12.5%
Ranked 3rd Ranked 11th
Efficient ManagementOrdinary income to total assets (ROA) 23.6% Ranked 4thNet Income per Share (EPS) 266.78 yen
*1 NIKKEI SOLUTION BUSINESS July 30, 2008, FY2007 ranking of 173 companies with over 10 billion yen net sales
◆ In all sectors total score 125thNikkei excellent company ranking
Profitability ranked 121, Stability ranked 125th, Growth potential ranked 168th
*1
*1
*1
*2
*2 The NIKKEI October 18, 2008
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Strengthen corporate structure through improving profit margins
Gross profit margin
0
(%)
10
20
FY081st Half
FY07Year-end
FY071st Half
FY06Year-end
FY05Year-end
FY051st Half
FY061st Half
FY04*
Year-endFY03
Year-endFY031st Half
*Four-month period
Efficient and Sound Management
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Topics
Feature “Non-flashy Companies Tackle Economic Recession”
Ranked 17thin Ranking of Top 50 Solid Companies
Nikkei Business, October 6, 2008.
Ranking OverviewApproximately 4,000 listed companies ranked by 4 metrics•Rate of increase in capital expenditure•Rate of increase in R&D expenditures•Rate of increase in employees•Depreciation (capital expenditure vs. amortization cost)
Business Plan for FY 2008 (Ending March 2009)
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Business plan for FY2008
2,842
5,001
4,876
39,066
FY2007result
103.6%12.2%5,050Operating income
106.2%-41,500Net sales
7.3%
12.3%
Ratio to net sales
102.0%5,100Ordinary income
106.6%3,030Net income
YoYFY2008
plan(Million yen)
Consolidated
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39.041.511.1%
12.5% 12.5%12.2%
0
10.0
20.0
30.0
40.0
50.0
0
2.0
4.0
6.0
8.0
10.0
41.3 40.2
5.04.6 4.8 5.0
ConsolidatedBusiness Plan for FY 2008Net sales, operating income, operating margin
Net sales Operating income Operating marginNet sales
(Billion yen))Operating income
(Billion yen))
FY2005 (ended March 2006)
FY2007 (ended March 2008)
FY2008 (endingMarch 2009) plan
FY2006 (ended March 2007)
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22.622.6 23.523.5 23.623.6 23.723.7
6.37.8 8.3 9.8
12.4 8.8 7.08.0
41.541.5
0
10.0
20.0
30.0
40.0
41.341.3 40.240.2 39.039.0
54.8%
15.2%
30.0%
58.5%
19.5%
22.1%
60.6%
21.4%
18.1%
57.1%
23.6%
19.3%
Business Plan for FY 2008 Consolidated
Net sales by business(Billion yen)
FY2005 (ended March 2006)
FY2006 (ended March 2007)
FY2007 (ended March 2008)
FY2008 (ending March 2009)
plan
System and communicationsequipment business
Service solutions Service solutions businessbusinessSystem solution
Service solutionsService solutionsbusinessbusinessSystem services
Business Environment
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View of Operating Environment■ Information Services Industry
Establishment of internal control systems, strengthening of information security and closely-associated continued strategic IT investment by large enterprisesSome investments curtailed due to economic uncertainty
Many system integrators dependent on specific industries experiencing business volatility.Avoidance of large-scale unprofitable projectsPivoting towards service business (stock business)
Market Environment
The Company
Steady, stable sales, 60%Thorough project managementOngoing rationalization effortsLarge balance of orders on handLeveraging financial crisis to the positive
Industry Trends
Outlook of Business Expansion
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Business Strategies 2008
Challenging the NEW - A new self, a new company -
Achieve NEW records
Create NEW products
Change into NEW personnel
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Achieve NEW Records
Net sales
Management Plan for FY 2008
Operating income
Ordinary income
Net income
41,500
5,050
5,1003,030
New record
(Million yen)
Improve profitability・・・ Obtain CMMI level 3, enhance project management Fully adopt the percentage of completion method from FY 2008
Reduce cost of sales・・・Share and cross-train of external personnelThrough Streamlining ・・・ Integrate and virtualize servers, multivendor
《New profit record 》
New record
New record
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Create NEW products
New services and products released this period Released
AprilE-Learning for Local Government Employee‘E-Learning Square’ by GYOSEI launched
May Data Leakage Prevention SolutionsPartner agreement with Utimaco Safeware
June Launched Internet FAX Transmission Service ASP/SaaSBuilt Metropolitan-class Data Center (Opening January 2009)Conversation Recording Function for Call Center SystemsCooperate with AnimoNew Version of ASTERIA FAX Adapter
July Shareholders’ Meeting Support System (Entry Model)
Egenera Blade Server Distributor AgreementFirst user to become distributorIT Governance Enhancement SolutionsEXCEL-Mainframe system linkage
August New version of ASTERIA Salesforce Adapter
October GRANDIT ERP Package
Personnel Deployment Optimization SystemCooperate with WINWORKS
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Approach of new services and products
Also setting NEW records on number of new products
New services and products
Existing services and products + added value
New
Markets
ExistingM
arkets
Personnel Deployment Support E-Learning by GYOSEI
Data Leakage Prevention Solutions
Internet FAX Transmission Services
Metropolitan-class Data Centers
Call Center Conversation Recording
ASTERIA FAX Adapter
ASTERIA Sales Force Adapter
Shareholders’ Meeting Support System (Entry Model)
Egenera Blade Server
IT Governance Enhancement Solutions
GRANDIT ERP Package
Create NEW products
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Major Solutions Available from Us
Website Design
Personnel Placement Optimization Support
Electronic documents and contracts
Thin client
CRM (Call Centers)
SCM Sales Management
Systems for Wholesalers
Business Support
Administrative Support
Infrastructure Support
Electronic Procurement
Networking Information security strategies
Operational Support
IT Outsourcing Support Center
Engineering Support
Data Searching and Analysis
ASP
Egenera
ERP [GRANDIT]
Metropolitan-class Data Centers
FAX Transmission Services
CRM (Conversation Recording)
Data Leakage Prevention
GYOSEIe-Learning
Entry Model
IT Governance Enhancement
EAI (System Linkage)
Shareholders’ Meeting Support
New Services and Products This Period
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Vertical Set Up – Already received orders from 2 customers
Target: Major Corporations Watchwords: “Green IT,” “Environment Conscious,” “Server Consolidation,”“Operational Efficiency.”Sales Target: ¥500 million (1 year after launch)
Experience as a user
New ProductLaunched sales of Egenera Blade Frame
Focus on Blade Servers
(First user appointed as official distributor by Egenera)
(1) Examples
Egenera use at the Company
Server Consolidation Virtualization
Leveraging our strengths…
Green IT
New Markets, New Services and ProductsExample 1
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New Markets, New Services and ProductsPersonnel Deployment Optimization
Increasing importance of “personnel management”.
Optimal solution through simulation
Improve Employee Satisfaction
Customer Satisfaction
Improve ManagementEfficiency
Launched sale of ‘WINWORKS ONE’, a new product designed as a personnel deployment optimization solution.
Hotel Services: 14% improvement in guest accommodating efficiency Brand Retailer: 10% improvement in customer handling, improved
employee satisfaction through improved holiday scheduling. Nursing Homes and Hospices: Nurse time sheet preparation cut in half, turn-over reduced Call Center: Personnel cost cut by 10% due to creation of optimal work plan for employees
(Became official distributor of WINWORKS)
Sales Target: ¥500 million (FY 2010)
Abundant solutions available for other than personnel-related data processing (material, finance, information)
Experience and Insight ⇒
Example 2
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Personnel Deployment Optimization Solutions WINWORKS One+α
ee--LearningLearningSystems Systems
Exhibitions Deployment
Systems
SFASFASystems Systems
Including weekends and Including weekends and holidays shift planning holidays shift planning
for exhibitions for exhibitions
Improve customer Improve customer satisfaction satisfaction
Skill development and Skill development and skill management skill management
Coordinate information Coordinate information with shift management with shift management
ee--SmileCallSmileCallSystems Systems
Shift planning for Shift planning for Call Center operations Call Center operations
Production Planning Systems
Shift planning for production Shift planning for production workers based on skills workers based on skills and production volumes and production volumes
Combine ‘WINWORKS One’ with other solutions
Existing Services and Products + Added ValueExample 3
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Change into NEW Personnel
Take on an environment unlike the current one
・Mine potential abilities and strengthen specialties in a new environment・Utilize people who have broad business expertise in non-Panasonic sales
(1) Proactive rotation
•Balanced personnel through thorough layered training
(3) Enhance training
(2) Put our offices on a diet・Eliminate operational waste and work more efficiently (start by “stopping”)・Use the time gained for something new
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ICT Site
Field-intensive approach designed to effect internal changefrom a field-oriented perspective. Solutions where business activities and systems work side-by-side.
Support from planning, design, development and operation to support customers
Based on a wealth of field experience and know-how, Learning from successes and failures A “can-do” attitude toward challenges.
Review of ICT to find and eliminate rifts between planning and field sites
We provide:
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Fusion
Our roleOur role
Implement Management Vision
“Value designer” for our customers~ Working with customers to envision their future
and create value together ~
““Value designerValue designer”” for our customersfor our customers~~ Working with customers to envision their future Working with customers to envision their future
and create value togetherand create value together ~~
Optimal ITOptimal IT KnowKnow--howhow((Actual abilityActual ability))
Selection of optimal ITregardless of whether it is old or new
Experience and business know-how that supported Panasonic Electric Works with IT
Creation of Creation of Value Value togethertogetherCustomersCustomers
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.