financial results presentation for q2 fye 3/2022
TRANSCRIPT
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Financial Results
Presentation for
Q2 FYE 3/2022
November 24, 2021
MIRAIT Holdings Corporation
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Ⅰ Financial Results for Q2 FYE 3/22
ⅣManagement Strategy for the New Group
after the Merger of Three Companies
Ⅲ Topics
Ⅱ FYE 3/22 Full-year Forecast
1 FYE 3/22 Full-year Forecast
2 Shareholder Returns
1
Today’s Agenda
(Note)”Net income attributable to owners of parent” is referred to as “net income” in this presentation.
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Ⅰ.Financial Results
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3
Q2
FYE 3/19
Q2
FYE 3/20
Q2
FYE 3/21
Q2
FYE 3/22
249.6229.1222.6
159.7
+20.5Orders received
(bil. yen)
■ ICT
■ Environmental
& Social
■ Multi-carrier
■ NTT
Orders received
249.6 bil. yen(+20.5 bil. yen yoy )
○Work to build advanced wireless networks
○5G-related work
○Large-scale electrical work
○Datacenter work
Record-high orders
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Q2
FYE 3/19
Q2
FYE 3/20
Q2
FYE 3/21
Q2
FYE 3/22
211.8191.7
5th consecutive
year ofrecord-high sales
4
182.9
140.3
+20.1
Net sales
■ ICT
■ Environmental
& Social
■ Multi-carrier
■ NTT
(bil. yen)
Net sales
211.8 bil. yen(+20.1 bil. yen yoy)
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NTT Business
5
Net sales
75.2 bil. yen(+6.9 bil. yen yoy)
○Work to build advanced wireless networks
○Facility management
▲Civil engineering
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Multi-carrier Business
6
○5G-related work
○Rakuten projectsnation-wide
○CATV work
▲Some delays in delivery of materials and parts
Net sales
46.5 bil. yen(+6.7 bil. yen yoy)
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7
○Water utility/ sewage
○Electrical work
▲Mega-solar
▲Air conditioning
Environmental & Social Innovation Business
Net sales
22.4 bil. yen(-3.4 bil. yen yoy)
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8
○Domestic LAN
○Datacenter work
○Global (Lantrovision)
○Sales of goods(Mobile-related )
ICT Solutions Business
Net sales
67.6 bil. yen(+9.9 bil. yen yoy)
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Q2
FYE 3/19
Q2
FYE 3/20
Q2
FYE 3/21
Q2
FYE 3/22
11.0
6.7
5.0 4.9
+4.3
9
Operating income
(bil. yen)
Record-high
for the 2nd
consecutive year
Operating income
11.0 bil. yen(+4.3 bil. yen yoy)
Operating income ratio
5.2%(+1.7p yoy)
3.6%
2.7%
3.5%
5.2%
Operating income ratio
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Q2
FYE 3/21
Q2
FYE 3/22
Adoption of accounting standard for revenue
recognition
+0.3
10
○Further operationalefficiency
○Profit growth in non-communication businesses(Environmental and
Social Innovation, ICT)
Operating income
(bil. yen)
Gross profit margin
+1.8p
Increase in net sales
SG&A
+6.7
+2.3
+3.9 -1.9
11.0
Operating income
11.0 bil. yen(+4.3 bil. yen yoy)
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Q2
FYE 3/19
Q2
FYE 3/20
Q2
FYE 3/21
Q2
FYE 3/22
7.8
4.7
11
3.33.6
+3.1
Net income
(bil. yen)
Net income
7.8 bil. yen(+3.1 bil. yen yoy)
Record-high
for the 2nd
consecutive year
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Ⅱ.FYE 3/22
Full-year Forecast
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Orders received 480.0 ⇒ 490.0 bil. yen (+10.0)
Net sales 470.0 ⇒ 480.0 bil. yen (+10.0)
Op. income 30.5 ⇒ 32.0 bil. yen (+ 1.5)
Net income 21.0 ⇒ 22.5 bil. yen (+ 1.5)
FYE 3/22 full-year forecast
13
Upward revision of
initial forecast
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14
Shareholder returns
Strengthen
shareholder returns
Dividend 45 yen ⇒ 50 yen(2nd consecutive year of dividend increase)
Share repurchase 3.0 bil. yen(3rd consecutive year of share repurchase)
Further dividend increase in H2
50 yen ⇒ 55 yen
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Ⅲ. Topics
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16
Designated as DX-Certified Business Operator
Achieved DX Certification from METI (DX-Certified Business Operator)
Point group data acquisition service
Creating new values
Contribute to DX of communities/
enterprises
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17
Inclusion in JPX-Nikkei 400
Selected as constituent for JPX-Nikkei 400 index in FY2021
Comprised of companies that meet global investment standards such as the efficient use of capital and
investor-focused management perspectives
Enhanced corporate value
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Ⅳ.Management Strategy for the New Group after the Merger of Three Companies
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FY2021
Apr▼
Jul▼
Oct▼
New Company Preparation Office established
Solu
tions B
usin
ess
H D
MRT
MTC
STEP2STEP1
Launch of “ONE TEAM”
Progress on establishment of the New Group and merger of three companies
Glo
bal B
usin
ess
Fro
ntie
r Busin
ess
Present▼
July 2021
FY2022
TTK LTV
STKSOL
▼ July(plan)Solu
tions B
usin
ess
Carrie
r Busin
ess
(East/ W
est)
New
Busin
ess
New Group Entity
Merger of three companies/establishment of New Group
< Strengthen group coordination >
19
SI B
usin
ess re
structu
ring
under co
nsid
era
tion
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Achieving growth at the New Group
New Growth Strategy
fS
EarthWorld Japan
Regions and communities
fMf
P Redefine Purpose and Mission
NEXT MIRAIT Group Vision 2030 (tentative)
fV
Societal Issues
Being formulated by all management and
employees
To be announcedin May 2022
20
Important societal issues to be addressed(Materiality)
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Important societal issues to be addressed (Materiality)
Creating and preserving an environmentally-friendly societyE
Creating and preserving a safe, secure and prosperous societyS
Creating and preserving a society that respects and promotes the diversity of people and cultures
Creating and preserving a fair and transparent corporate groupG●Enhance corporate governance
●Thorough compliance
●Thorough risk management
●Improve safety and quality
●Create social values through partnerships and collaboration
●Promote development of human resources, workstyle reform and health management
●Promote respect for human rights and D&I
●Realize a carbon-free society through business activities
●Contribute to the creation of environmentally-friendly and resilient communities
S
21
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People-centric management
Management based on data insights
Strong foundation for ESG management
Acceleration of business growth
Top-class profitability
Change 1
E S G
Change 5
Change 4
Change2 Change 3
Business transformation and the “Five Changes”
22
5 Changes
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Creating a “good company” for employees
Transformation of business/acceleration of growth
People-centric Management
“Healthy”management
“Safe”management
Changing societies and the futureOrganization with talented human capital
“Mirai (Future)” University (in-house education)
Company full of excitement
Flexible allocation of human capital
Data-based education
Development of professionals/
managers
Multi-skilled staff
MIRAIT Group’s workstyle reform - “Smart Work”
23
Change 1
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Change 2Acceleration of business growth
Base domains
Frontier domains
Resource allocation to “Future Domains”to date
・NTT ・ICT
Enterprise/environmental
and social foundation domain
Communication foundation domain
Future domains
mix of existing and new businesses
・Multi-carrier ・Environmental and social innovation
Accelerate “community creation” and “enterprise DX/GX” businesses
Launch green power business
Software company as a strategic sub.
Expand global businesses
Topic 1
Topic 2
Shift to
Full-V
alu
e M
odel
Concentration of resources
24
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Change 2
Topic (1)
● Building and selling of power generation facilities
● PPA business
(sale of electricity)
● Self-consumption
Scheduled to launch business in H2 FY2021
Launch of green power business
Creating new value through renewable energy business
Contribute to greening the society
Launch of business to build and sell green power generation facilities and sale of green power
25
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● Centralize software-related management resources to further specialize and advance capabilities
● Improve flexibility and agility
● Enhance value for customers using cutting-edge technology
Software business as a strategic subsidiary
Time Tech
Trust System
CREiST
Actis
MRT
MTC
MTC
MRT
Mirait SI Business Division × Mirait Information System
New Strategic SI Co.
MRT MTC
New
Gro
up E
ntity
Reorganization scheduled for
July 2022
Contribute to customers’ business transformation through DX
26
Change 2
Topic (2)
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Change 5Initiatives to strengthen ESG-based management (Step 1)
Establishment of ESG management system
Environmental initiatives (adoption of TCFD recommendations)
Chairman:CEOMembers :CEOs of group companies/
executive officers
Board of Directors
Management Meeting
Secretariat:ESG Promotion Department
Established committee to promote ESG management (Sep. 2021)
Adopted TCFD recommendations (Oct. 2021); to actively disclose information
Evaluation of climate risks and opportunities and disclosure of future financial impact
ESG Management Promotion Committee
Also participated in the TCFD Consortium 27
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Building and Maintaining a Br idge to the Future
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Statements and quotes relevant to the forecasted values in this
handout are the future prospects based on the plans and prospects of
the Company at this point in time.
The actual business results could be significantly different from those
stated in this handout due to changes in conditions.
As such, please be advised that we will not be able to guarantee the
accuracy of the forecasted values, in this handout and the session,
over the period of time to come in the future.
MIRAIT Holdings Corporation
Precautionary Statement