Financial Results Materials · Dividend amounts for the periods ending June and September of FY2017...

Copyright © 2017 COMTURE CORPORATION. All rights reserved.Copyright © 2017 COMTURE CORPORATION. All rights reserved.

Financial Results Materialsfor Institutional Investors

COMTURE CORPORATION

1

Transforming needs into solutions

Koichi MukaiChairman & CEOFounder-Owner

May, 2018

Copyright © 2017 COMTURE CORPORATION. All rights reserved.

2

１Outline of Financial Results

FY ending March 2018: 3rd Quarter


3

1-1

FY2017 Mar.3Q Total Results

FY2018 Mar.3Q Total Results Year-on-

year rateAmount Rate Amount Rate

N e t S a l e s9,901

million yen-

12,116million yen

- +22.4％

O p e r a t i n gI n c o m e

914million yen

9.2％1,383

million yen11.4％ +51.3％

O r d i n a r yI n c o m e

937million yen

9.5％1,406


N e t i n c o m eattr ibutable toowners of parent

633million yen

6.7％1,039


N e t i n c o m ep e r s h a r e

43.51 yen - 71.34 yen - +63.9％

Achieved 8 consecutive years of sales growth and7 consecutive years of earnings growth,

hitting a record high for the interim period

COMTURE conducted a 3-for-1 stock split effective on October 1, 2017. The net income per share has been calculated under the assumption that the stock split was performed at the beginning of the previous fiscal year (FY 2017 Mar.).

Financial Highlights（announced on Jan.29th）


FY2017 Contributing Factors

4

YOYNet Sales +22.4%, a huge leap in sales

YOYOperatingIncome +51.3％ earnings

Business expansion in cloud computing, big data and AI

Increased demand for core systems(ERP) by large enterprises

Consolidation of new subsidiaries contributed to steady growth in sales

Adoption of a high added value strategy contributed to higher sales per employee and increased earnings

Increased earnings driven by business expansion

Increased labor cost per employee

Investment on expanding and strengthening business

1-2

+

+

+

+

－

－

+

New technology initiatives such as RPA and IoT

+


600

700

800

900

1,000

1,100

1,200

1,300

1,400

1,500

1,600

1,700

1,800

FY2018 Mar.3Q Total

▲68

5

（Unit：million yen）

1-3

OperatingIncome

914million yen

+206

Earnings growthdue to high addedvalue initiatives

Impact from business expansion

Increased labor cost

Investment on expanding and

strengthening business

▲291

• Higher sales per employee

• Increased productivity

+ 468million yen

YOY

FY2017 Mar.3Q Total

▲137

OperatingIncome1,383

million yen

• Increased training and recruiting expenses

• Increased R&D expenses

Reasons for Fluctuations in Operating Income

+712


6


million-yen


million-yen

Year-on-year rate

Net sales 9,901 12,116 ＋22.4%

Groupware Solutions Business 2,116 2,405 +13.6%

ERP Solutions Business 575 793 +37.9%

Web Solutions Business 4,312 4,654 +8.0%

Network Services Business 2,898 4,264 +47.1%

Gross profit 2,133 2,739 +28.4%

Groupware Solutions Business 498 468 ▲6.1%

ERP Solutions Business 147 160 8.5%

Web Solutions Business 912 1,197 +31.3%

Network Services Business 575 914 +58.8%

0

2,000

4,000

6,000

8,000

10,000

12,000

FY2017 Mar.

3Q Total Results

FY2018 Mar.

3Q Total Results

0

300

600

900

1,200

1,500

1,800

2,100

2,400

2,700

3,000

FY2017 Mar.

3Q Total Results

FY2018 Mar.

3Q Total Results

◼ Groupware Solution Business

◼ ERP Solution Business

◼ Web Solution Business

◼ Network Services Business

Net sales

Gross profit

(Unit：million yen)


1-4 Business Segment Performance


7

２Earnings Forecast

Fiscal year

No changes in earnings forecast have been made. (announced on May 1st, 2017)


Earnings Forecast for fiscal yearending March 2018

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FY2017 Mar. Results FY2018 Mar. Forecast Year-on-year rateAmount Rate Amount Rate

N e t S a l e s13,897

million yen -

15,300million yen

- +10％

O p e r a t i n gI n c o m e

1,522million yen

11.0％1,700

million yen11.1％ +12％

Ordinary Income1,542

million yen11.1％

1,700million yen

11.1％ +10％

Profit attributablet o o w n e r so f p a r e n t

1,061million yen

7.6％1,180

million yen 7.7％ +11％

N e t i n c o m ep e r s h a r e

72.90 yen - 81.01 yen - +11％

2-1

Aim for 8 consecutive years of sales growth and 7 consecutive years of earnings growth

reaching new record highs

COMTURE conducted a 3-for-1 stock split effective on October 1, 2017. The current net income per share has been calculated under the assumption that the stock split was performed at the beginning of the previous fiscal year(FY 2017 Mar.)


1,300

1,800

2,300

1 2 3 4 5 6

Fluctuation on Operating Income forecasted for the full year

9

OperatingIncome1,522

million yen

（Unit：million yen）

+664

+575▲531

2-2

• Strengthen recruitment activities

• Employee training

• R&D

OperatingIncome

1,700million yen

▲504

FY2017 Mar. FY2018 Mar.

▲26

Goodwillamortization

+ 178Million yen

＋1２%YOY

（Previous term）（Current term）

Earnings growthdue to high addedvalue initiatives

• Higher sales per employee

• Increase in productivity

Impact from business expansion

Increase in labor cost

Investment for expanding and

strengthening business


Business Segment Forecast

10

FY2017 Mar.Results

million-yen

2018 Mar.Forecast

million-yen

Year-on-year rate

Net sales 13,897 15,300 +10%

Groupware Solutions Business 3,206 3,275 +2%

ERP Solutions Business 787 809 +3％

Web Solutions Business 5,830 6,111 +5％

Network Services Business 4,074 5,105 +25％

Gross profit 3,192 3,720 +17％

Groupware Solutions Business 777 803 +3％

ERP Solutions Business 201 207 +3％

Web Solutions Business 1,362 1,613 +18％

Network Services Business 852 1,097 +29％

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

FY2017 Mar.

Results

FY2018 Mar.

Forecast

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

FY2017 Mar.

Results

FY2018 Mar.

Forecast

2-3◼ Groupware Solution Business

◼ ERP Solution Business

◼ Web Solution Business

◼ Network Services Business

Net sales

Gross profit




11.2

18.520.6

21.7

27.7 29.7

27.7

4.8 5.5

8.1 7.7 7.39.3

0.0

5.0

10.0

15.0

20.0

25.0

30.0

FY2012 Mar. FY2013 Mar. FY2014 Mar. FY2015 Mar. FY2016 Mar. FY2017 Mar. FY2018

Mar.(Forecast)

COMTURE ROE

The average ROE of companies listed on TSE first section

8.1

High Levels of ROE(net income / shareholders' equity)

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ROE will remain extremely high

compared to the average of companies listed on TSE first section（Unit：％）

2-4

(*Source: Mizuho Securities)

Adoption of a high added value strategy will contribute to higher sales per employee and a higher profit margin

We aim to retain a standard level of over 20%


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Shareholder returns3


Revision of Forecast Dividend

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3-1

As a result of comprehensive consideration of future business trends and financial conditions, we have revised the year-end dividend forecast for the fiscal year ending March 31, 2018 to 10.40

yen, an increase of 3 yen from the previous forecast.

Revision of Forecast Dividend（dividend hike）

Dividend per share

1Q dividendper Share

Interim dividend

per Share

3Q dividendper Share

Year-end dividendper Share

Annual dividendper Share

Previous forecast issuedJuly 31,2017

yen

7.33yen

7.33yen

7.40yen

7.40yen

29.47

Revised forecastJan 29,2018 7.33 7.33 7.40 10.40 32.47

Dividend paid for year ended March 31,2017

6.00 6.00 6.00 7.67 25.67

COMTURE conducted a 3-for-1 stock split effective on October 1, 2017. Dividend amounts before 2Q FY2018 are retroactively adjusted to reflect the stock split.


Dividend

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6.0 7.33

3.75.3

8.0 9.3

6.0

7.33

6.0

7.4

1.7 2.2 2.4 2.9 3.1 3.3 4.1

5.0

8.7

8.0

12.7

7.7

10.4

11.9 12.4 13.2 15.9

16.4

22.6 25.5

28.7

36.1 39.6 38.935.2

40.1

-3

2

7

12

17

22

27

32

37

42

0

5

10

15

20

25

30

4Q dividend per share




Payout ratio (%)

（Unit：yen）（Unit：％）

8.7

14.0

0.7yenCommemorative

dividend for beinglisted on TSEfirst section

0.7yenCommemorative dividend

for COMTURE’s 30th anniversary

25.7

3-2

COMTURE conducted a 3-for-1 stock split effective on October 1, 2017. Dividend amounts before 2Q FY2018 are retroactively adjusted to reflect the stock split.

13th consecutive periods of increased dividend (forecast)

29.47

2017/032016/032015/032014/032013/032012/032011/032010/032009/032008/032007/032006/03

1.7yenDividendIncrease

22.0

2018/03(Forecast)

We will maintain a dividend payout ratio of over 35%

16.0


Quarterly Dividend Payment

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3-3

Due to stable quarterly performance driven by sound management, COMTURE will implement quarterly dividend payments.

Dividend record date Dividend payment date

1Q dividend per share Jun. 30th, 2017Aug. 31st, 2017(dividend paid)

2Q dividend per share Sep. 30th, 2017Nov. 30th, 2017 (dividend paid)

3Q dividend per share Dec. 31st, 2017Feb. 28th, 2018(dividend paid)

4Q dividend per share Mar. 31st, 2018The next business day following

approval at the general shareholders' meeting (planned)

Dividend payment schedule

We use a quarterly dividend payment


Returns to Shareholders Scheme

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3-4

As part of COMTURE’s returns to shareholders scheme, we have a shareholder special benefit plan

*Dividend of 9,740 yen + prepaid QUO cards worth 2,000 yen = 11,740 yen annually

*Total payout ratio including special benefits are expected to be 48.3% for fiscal year ending March 2018 (for 300 shares)

COMTURE conducted a 3-for-1 stock split effective on October 1, 2017. Special benefits for the period ending September 30, 2017, will be distributed on a pre-split basis of 100 shares (shareholders owning more than 100 shares will receive prepaid QUO cards worth 1,000 yen). Dividend amounts for the periods ending June and September of FY2017 will be adjusted to reflect the stock split.

As part of COMTURE’s returns to shareholders scheme, we have a shareholder special benefit plan


Precautions about This Presentation

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⚫ This presentation was prepared to provide information about Comture and is not a solicitation to invest in Comture.

⚫ Comture exercised care regarding the accuracy of information in this presentation but does not guarantee that this information is complete.

⚫ Comture assumes no responsibility whatsoever concerning any losses or damages resulting from the use of information in this presentation.

⚫ Forecasts and other forward-looking statements in this presentation are based on the judgments of Comture using information that was available when this presentation was prepared and incorporate risks and uncertainties. As a result, actual performance may differ significantly from the forward-looking statements in this presentation due to changes in market conditions or many other reasons.

Inquiries

Investors Relations, Corporate Planning Department

COMTURE CORPORATION

Tel: +81-(0)3-5745-9702 E-mail: [email protected]

Financial Results Materials · Dividend amounts for the periods ending June and September of FY2017...

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