fy2019 financial results€¦ · rounding “xica magellan”, no1 mmm tool in japan initiatives in...
TRANSCRIPT
1 Copyright© Cross Marketing Group Inc. All rights Reserved.
FY2019
Financial Results
[February 17th 2020]
2 Copyright© Cross Marketing Group Inc. All rights Reserved.
Contents
FY2020 Financial Results ・・・3
FY2019 Financial Results by Business Segment ・・・8
Revision of FY2019 and Focus Points in FY2020 ・・・13
Forecast for FY2020 ・・・21
Shareholder Returns and Dividend Amount ・・・23
Reference Materials ・・・25
01.
02.
03.
04.
05.
06.
3 Copyright© Cross Marketing Group Inc. All rights Reserved.
FY2019
Financial Results 01
4 Copyright© Cross Marketing Group Inc. All rights Reserved.
Revenue of Domestic Businesses YoY results in 111% Steady Expansion of Each Business Contributes to
Growth of Whole Group
FY2018 FY2019
Revenue YoY
111%
IT Solution Domestic Research Others(Digital Marketing)
Digital Marketing 113.1%
IT Solution 129.2%
Domestic Research 106.1%
<Changes by segment >
01 The FY2019 Ending Executive Summary① FY2020
Financial Results
5 Copyright© Cross Marketing Group Inc. All rights Reserved.
01
Reach Goal of Forecast for FY2019 on Operating and Ordinary Profit
Up more than 30% YoY
Part of Sales for the Big Project of Overseas Research Counted
580 million(JPY) counted in 4Q
Revenue Increases for 16 Straight Years since Its Foundation
Revenue 18.5 billion(JPY), Up 6.2% YoY
The FY2019 Ending Executive Summary② FY2020
Financial Results
6 Copyright© Cross Marketing Group Inc. All rights Reserved.
FY18 result
FY19 result Forecast
(announced at August 14th 2018)
Amount %(YoY) Amount %(to forecast)
Revenue 17,492 18,580 106.2% 20,000 92.9%
Operating Profit
955 1,267 132.9% 1,250 101.5%
Ordinary Profit
840 1,150 136.7% 1,109 103.7%
Net Income 507 △477 - △490 -
(Unit:JPY million)
Revenue Increases for 16 Straight Years since Its Foundation
Much Higher Profits than Last Year
due to Steady Growth of Domestic Businesses
01 FY2019 Full Year Consolidated Financial Results FY2020
Financial Results
7 Copyright© Cross Marketing Group Inc. All rights Reserved.
FY2019(result)
FY2018(result)
Operating Profit
955 (Profit margin 5.5%)
Operating Profit +312
Operating
Profit
1,267 (Profit margin 6.8%)
(Domestic・Overseas)
Gain of gross profit
by gain of sales
FY2019 Change on Operating Profit(YoY)
+491
【Research】 Gain of gross profit by
gain of sales and the new
consolidated company
+205
【IT solution】
Gain of gross
Profit by
gain of sales
+41
【Others】
Gain of labor cost by gain
of personnel and the new
consolidated company
+264
【Expense】
Gain of other expenses
+187
【Expense】
01 FY2020
Financial Results
(Unit: JPY million)
8 Copyright© Cross Marketing Group Inc. All rights Reserved.
02 FY2019
Financial Results
by Business Segment
9 Copyright© Cross Marketing Group Inc. All rights Reserved.
8,336 9,212 9,074 9,551 10,132
4,565 4,159
4,982 4,742
4,421
2,374 2,256
1,880 1,943
2,249
0
500
1,000
1,500
2,000
2,500
0
2,500
5,000
7,500
10,000
12,500
15,000
FY15 FY16 FY17 FY18 FY19
Research【 Domestic・Overseas 】 Business Trend
(Unit) JPY million
Revenue(left)
Profit by segment(right)
Revenue and Profit Increase due to Steady Trend of Domestic Research in 4Q and Sales of the Big Project of Overseas Research
Business Status by Segment【 Research】 Financial Results
by Business Segment 02
MDL Up 33% in Revenue
Big Project Counted in 4Q
Main Company CM Firm in 4Q
Revenue (Domestic) Revenue (Overseas) Profit by segment
106.1% 93.2% 115.7%
Change(YoY)
10 Copyright© Cross Marketing Group Inc. All rights Reserved.
IT solution Business Trend (Unit) JPY million
Revenue(left)
Profit by segment(right)
Up 29% in Revenue YoY by Closing Deals Continuously Revenue Increases for 8 Consecutive Years since It Started
02
SPT, New Consolidated Contributes to Revenue ※Amortization of Goodwill
Starts from 2019
HR Integrated into Fittio
The Number of Deals from both Existing and
New Favorable
1,704 1,906 2,147
2,542
3,284
192 175
254
292 274
0
50
100
150
200
250
300
350
0
500
1,000
1,500
2,000
2,500
3,000
3,500
FY15 FY16 FY17 FY18 FY19
Revenue(Domestic)
Pro f i t b y se g me n t
129.2% 93.8%
Change ( YoY)
Financial Results
by Business Segment Business Status by Segment【 IT solution】
11 Copyright© Cross Marketing Group Inc. All rights Reserved.
253
689
553 656
742
△ 56
74
30
59
106
△ 100
△ 50
0
50
100
150
△ 500
△ 250
0
250
500
750
FY15 FY16 FY17 FY18 FY19
Others Business Trend (Unit) JPY million
Revenue(left)
Profit by segment(right)
Up 13% in Revenue by Acquiring New Clients Favorably Profit by Segment Increase due to Gain of Revenue
02
Width of Deals Expand by Acquiring New
Clients
Added Value Increase by Tie-up and Developing
New Services
Aggressively Acquiring New Clients, Mainly Advertising Agency
211
UT revenue ※out of consolidated from FY17
113.1% 180.3%
Change ( YoY)
Revenue (Domestic) Profit by Segment
Financial Results
by Business Segment Business Status by Segment【 Others】
12 Copyright© Cross Marketing Group Inc. All rights Reserved.
55% 75%
Change of Rate on Revenue by Segment (2014→2019) 02
【Rate by segment (pie chart)】 ※refer to external revenue
Rate of Total Revenue except for Domestic Research Reaches to 45% from 25% due to Growth of Overseas Research since 2014,
IT solution and New businesses
IT solution
Overseas Research
Domestic Research
Others
Total except for Domestic Research
【2014】 【2019】
25%
45%
6.1
2.1
10.1 8.4
Financial Results
by Business Segment
Unit: JPY billion
13 Copyright© Cross Marketing Group Inc. All rights Reserved.
03 Revision of FY2019
and
Focus Points in FY2020
14 Copyright© Cross Marketing Group Inc. All rights Reserved.
Open Overseas Offices in Thailand and the Philippines
Strengthen Digital Marketing and Link Big Date
Strengthen Value Chain in IT solution
(HR・BPO・BPR)
Provide Solutions like Consultant and Data
Science
Revision of FY2019
and
Focus Points in FY2020 03 Focus Areas from 2015 to
Expand Business Area and Invest in Growth Businesses like Digital and Medical during Existing Business Growing
15 Copyright© Cross Marketing Group Inc. All rights Reserved.
0
1,000
2,000
3,000
4,000
5,000
2015 2016 2017 2018 2019 2020
(予想)
03
HR【 IT solution 】
Area Expansion, New Offices 【 Overseas Research】
Health care, New area 【 Domestic Research 】
Digital Marketing 【 Others 】
Average of Increase in Revenue from 2015 to 2019 is 85%
by New Businesses and Area Expansion since 2015
Contribution of Initiatives to Revenue since 2015
323
5,014
※The numbers in the chart is based on simple summation of subsidiaries revenue which lunched or had M&A after 2015
Revenue JPY million
3,748
Average of increase 85%
(2015~2019)
Revision of FY2019
and
Focus Points in FY2020
(forecast)
16 Copyright© Cross Marketing Group Inc. All rights Reserved.
FY2020
Keyword
17 Copyright© Cross Marketing Group Inc. All rights Reserved.
Digital transformation(DX)
18 Copyright© Cross Marketing Group Inc. All rights Reserved.
to Strengthen Profitability and Competitiveness of Existing Business and to Utilize Technology for Business Development
Market ing
Solut ion
Digital
transformation AI
Big Data
Digital
Marketing
RPA
Consultancy
Medical
03 Focused Initiatives in FY2020 and Growth Image
Increase Added Value for Digital Marketing
by Utilizing External Tools
Construct Internet Research Platform
by Investing in System
Data×AI ×Medical
Investing in HR/BPO/BPR
Revision of FY2019
and
Focus Points in FY2020
19 Copyright© Cross Marketing Group Inc. All rights Reserved.
03 Initiatives and Results of Each Segment
CMG Tie-up with XICA Co., Ltd. CM and D&M Start Service with It
rounding “XICA magellan”, No1 MMM tool in Japan
Initiatives in “Digital Marketing”
Make it visible how much the results is
improved with recognition and favorableness
going up 1% by surveying or acquiring
consumer insight daily or weekly
Provide committing internet advertisements
service decreasing 10% in acquiring cost
Revision of FY2019
and
Focus Points in FY2020
20 Copyright© Cross Marketing Group Inc. All rights Reserved.
Fittio provides job applicants having experiences of working at IT or Web industry with a wide range of opportunity through special web sites separated by form of employment not only an integrated service web site. ◆Staff : temporary/temporary dispatch of possible permanent workers ◆Career : recruitment ◆Free-lance : SES/outsorucing
03
Start to Invest Aggressively in IT personnel through New Brand “Fittio”
Initiatives in “IT solution”
Revision of FY2019
and
Focus Points in FY2020
Initiatives and Results of Each Segment Initiatives and Results of Each Segment
21 Copyright© Cross Marketing Group Inc. All rights Reserved.
Forecast for FY2020 04
22 Copyright© Cross Marketing Group Inc. All rights Reserved.
Aim to Increase Revenue by Expanding Each Business Steadily and Achieve the Highest Profit since its Foundation by Reconstructing
High Added Value and High Profitability System
Forecast for FY2020 04 Forecast for FY2020 executive summary
FY20
Forecast
Compared to FY19 FY19 results
Up or Down Rate Amount
Revenue 19,570 +990 105.3% 18,580
Domestic Research 10,738 +606 106.0% 10,132
Overseas Research 4,276 △146 96.7% 4,421
IT solution 3,554 +270 108.2% 3,284
Others 1,002 +260 135.1% 742
Operating Profit 1,360 +91 107.3% 1,267
Ordinary Profit 1,330 +180 115.7% 1,150
Net Income 820 +1,297 - △477
23 Copyright© Cross Marketing Group Inc. All rights Reserved.
05 Shareholder Return
and Dividend Amount
24 Copyright© Cross Marketing Group Inc. All rights Reserved.
05
Dividend Policy
Dividend forecast for FY2020:6.2 yen per share (Interim:3.10 yen, Year-end:3.10 yen)
0
20
40
60
80
0
2
4
6
8
2013 2014 2015 2016 2017 2018 2019 2020
13.5%
(%) (JPY)
Dividend per share (Left)
Consolidated dividend payout ratio (Right)
JPY 4.5
JPY 3.3
JPY 5.5
33.1%
19.5% 12.8%
JPY 6.0 JPY 5.5
21.2%
JPY 6.2 JPY 5.5
Year-end dividend in FY2019 are 3.0 yen as planned (Full-year: 6.0 yen)
For FY2020, aim to increase dividends by
0.2 yen to maintain stable profit distribution,
considering dividend policy and recent performance trend
15.1%
JPY 6.0
Shareholder Return
and Dividend Amount
"Determine a dividend amount with the aim of
a consolidated dividend payout ratio of approximately 15%"
*The company split the shares into two parts on February 18, 2013, and into three parts on June 1, 2014, and a retroactive amount has been stated for the dividend amount per share. *With regard to past dividend amounts per share, these have been stated retroactively, upon rounding off to one decimal place. *For 2017 and 2019, dividend payout ratios are not described since net losses were recorded.
25 Copyright© Cross Marketing Group Inc. All rights Reserved.
References 06
26 Copyright© Cross Marketing Group Inc. All rights Reserved.
Unit:JPY Million FY2018 FY2019 YoY
Revenue 17,492 18,580 106.2%
Cost of Goods Sold 11,062 11,415 103.2%
Gross Profit 6,430 7,164 111.4%
Gross Profit Margin 36.8% 38.6% +1.8pt
SG&A 5,475 5,897 107.7%
Operating Profit 955 1,267 132.9%
Operating Income Rate 5.5% 6.9% +1.4pt
Ordinary Profit 840 1,150 136.9%
Extraordinary Profit 168 6 3.4%
Extraordinary Loss 5 1,107 -
Profit attributable
to owners of parent 507 △477 -
FY2019 Q4 Consolidated Profit and Loss Statement
(Overview)
Increase in Gross Profit Margin
Labor Cost increased due to New Consolidation
Recorded Impairment Loss of Goodwill
06 Reference Materials
27 Copyright© Cross Marketing Group Inc. All rights Reserved.
Decrease in Goodwill Decrease in Long-term Debt
Unit: JPY Million FY2018.
End of 4Q
FY2019.
End of 4Q YoY
Current Assets 7,274 7,780 107.0%
Cash and Deposits 2,606 2,714 104.2%
Notes and
Accounts
Receivable - Trade 3,311 3,617 109.2%
Others 1,357 1,449 106.8%
Non-current
Assets 3,156 2,147 68.0%
Goodwill 1,481 287 19.4%
Others 1,675 1,860 111.1%
Total Assets 10,429 9,927 95.2%
Unit: JPY Million FY2018.
End of 4Q
FY2019.
End of 4Q YoY
Current Liability 4,298 4,773 111.1%
Notes Payable 1,573 1,562 99.3%
Short-term Debt 272 838 307.9%
Others 2,453 2,373 96.8%
Non-current
Liability 2,231 1,734 77.7%
Long-term Debt 1,983 1,488 75.1%
Others 248 245 98.9%
Net Assets 3,900 3,420 87.7%
Equity Ratio 37.4% 34.5% △2.9 pt
FY2019 Q4 Consolidated Balance Sheet (Overview) 06 Reference Materials
28 Copyright© Cross Marketing Group Inc. All rights Reserved.
Unit:JPY Million FY2018 FY2019 YoY
Net Cash Provided by
Operating Activities 1,035 637 61.5%
Net Income before Taxes 1,003 48 4.8%
Depreciation and Amortization/
Amortization of Goodwill 357 309 89.9%
Impairment Loss - 1,086 -
Income Taxes Paid ▲389 ▲604 155.3%
Others 63 ▲202 318.6%
Net Cash Provided by
Investment Activities ▲351 ▲302 86.2%
Net Cash Provided by
Financing Activities ▲99 ▲222 225.5%
Cash Dividends Paid ▲93 ▲118 127.4%
Others ▲6 ▲104 ー
Effect of Exchange Rate Change on
Cash Equivalents ▲27 ▲3 11.4%
Cash and Cash Equivalents 2,605 2,714 104.2%
Repayment of
Long-Term Debt
Stable Operating CF
Continues
FY 2019 Q4 Consolidated Statements of
Cash Flows (Overview) 06 Reference Materials
29 Copyright© Cross Marketing Group Inc. All rights Reserved.
06 Cross Marketing Group
Cross Marketing Group Inc. Company Name
Miki Igarashi President & CEO
June 3, 2013 Established due to the shift to a holding company, Cross Marketing Inc. established on April 1, 2003
Established
JPY 646,700,000 Capital
1,854 (Including 546 temporary staff) Number of Employees
[Consolidated]
Research Business, IT solutions
Business and others Business
Reference Materials
30 Copyright© Cross Marketing Group Inc. All rights Reserved.
Marketing Research
Cross Marketing is the pioneer in online
research with full service marketing research
capabilities.
R&D offers value added information (insights)
through market research planning, design,
implementation and consultation services.
Medilead is full service MR agency focused on
delivering insights derived from key
stakeholders in the healthcare industry.
Envirosell Japan offers analyses of shopper
behavior and business consulting services.
Service standards are evaluated from the
perspective of the consumer through the use
of mystery shoppers
Kadence International is a global insight
agency engaged in marketing research with
offices in the UK, the USA, and Asia.
Headquarter of the holding company is in
Singapore.
Markelytics is a leading market research
agency providing end-to-end research
solutions to clients around the world.
Headquarter is in Bangalore.
Medical World Panel manages and operates
proprietary healthcare panels, and provides
insights from key stakeholders in the
healthcare industry.
IT Solutions
Cross Communication are IT specialists
engaged in the planning, development
and operation of mobile and smartphone
oriented websites and systems.
Cross Propworks offers development and
design of multi-device oriented websites
and systems, as well as a variety of data
processing services.
Fittio offers and supports human
resources specialized in IT/ Web business
industries.
Others
D&M utilizes consumer data to offer cutting
edge marketing services.
Management support and Investment toward
start-up which has unique technology and
know-how in Internet industry.
06 Group Companies Reference Materials
31 Copyright© Cross Marketing Group Inc. All rights Reserved.
Revenue
(Unit:JPY Million)
Research Business (Domestic)
Research Business (Overseas)
IT Solution Business
Other Business
Operating Profit
Ordinary Profit
Net Income
Net Assets
Total Assets
Dividend Per Share (JPY)
EPS (JPY)
BPS (JPY)
ROE (%)
ROA (%)
FY2015 4Q
14,859
1,233
1,185
559
3,945
9,970
8,336
4,565
1,704
253
6.0
30.81
193.17
17.2
13.3
FY2016 4Q
15,969
1,342
1,267
837
4,474
9,932
9,212
4,159
1,907
690
5.5
42.85
221.49
20.7
12.7
FY2017 4Q
16,758
727
597
△703
3,598
9,564
9,074
4,982
2,147
553
5.5
△36.00
177.75
-
6.1
17,492
955
840
507
3,900
10,429
9,551
4,742
2,542
656
5.5
25.92
193.79
14.0
8.4
FY2018 4Q
06 Consolidated Results and Major Indicators
(FY 2015-FY 2019)
18,580
1,267
1,150
△477
3,420
9,927
10,132
4,421
3,284
742
6.0
△24.12
166.19
-
11.3
FY2019 4Q
Reference Materials
32 Copyright© Cross Marketing Group Inc. All rights Reserved.
(JPY Million)
【Operating Profit (Line:Right)】
(JPY Million)
IT Solution
Research Business (Overseas)
Research Business (Domestic)
Other Business 【Revenue(Line:Left)】
FY2019 FY2015 FY2016 FY2017 FY2018
Revenue by Segment and
Consolidated Operating Profit
-400
-200
0
200
400
600
800
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Consolidated Kadance Inc. and R&D
Listed 1st Section of
TSE
06 Reference Materials
33 Copyright© Cross Marketing Group Inc. All rights Reserved.
History of Cross Marketing Group
Cross Marketing was established in Shibuya, Tokyo Apr
Main office transferred to Chuo-ku, Tokyo Jan
Cross Marketing enter into capital and business alliance with
EC Navi (Currently Voyage Group) and its subsidiary May
Received part of Index Inc.'s mobile solutions business
Cross Communication Inc. begins sales operations
Aug
Cross Marketing China Inc. established as a Chinese
subsidiary
May
Cross Marketing Group Inc. established and transferred
to holding company system
Jun
Acquired shares in Markelytics Solutions Private Limited
and MedePanel Online Inc.
Aug
Relocated the headquarters in Shinjuku-ku
(Tokyo Opera City Tower)
May
Acquired shares in KADENCE International Business
Research Pte. Ltd
Nov
Acquired Research & Development, Inc. as a
consolidated subsidiary
Feb
Cross Communication established a subsidiary,
Cross Propworks in Hakodate, Hokkaido
Apr
Medilead, Inc. established, D&M, Inc. established Jul
Listed on the Mothers Section of the Tokyo Stock Exchange Oct
2003
2004
2006
2008
2011
2012
2013
Cross Marketing (Thailand) Co., Ltd established
(Kadence International [Thailand] Co., Ltd.)
Cross Marketing Thailand acquires share of Jupiter MR
Solution (Thailand)
Aug
Cross Communication acquired whole share of JIN
SOFTWARE Inc. (Currently, Cross J Tech)
Sep
Received Marketing business transferred by Japan
Publicity
Nov
Acquired whole share of Mixi Research Inc. and started
the business as “Shopper’s Eye, Inc.”
Apr
Listed to the first section of Tokyo Stock Exchange Mar
2014 2015
2016
2018
Cross Ventures Inc. established Apr
Cross Communication acquired whole share of
Supotant Co., Ltd.
Oct
06
2014
2019 Supotant and Cross J Tech merged and change its trade
name to Fittio Inc.
Nov
Reference Materials
34 Copyright© Cross Marketing Group Inc. All rights Reserved.
Cross Marketing Group Inc.
https://www.cm-group.co.jp
Cautionary Statement regarding the Material
For inquiries regarding one information contained in this presentation:
Cross Marketing Group Corporate Planning Unit
E-mail:[email protected]
Cross Marketing Group does not guarantee the accuracy of the information contained
in this presentation, which reflects judgments made by Cross Marketing Group
management based on currently available information.
Given that the business environment may vary significantly in the future due to a
number of factors, please be aware that the performance and results in this
presentation may differ from Cross Marketing Group ’s actual performance and results.