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November 13, 2014
Securities Code: 9474
ZENRIN Co., Ltd.
Briefing on Results for First 2 Quarters ofFiscal 2015 (Year Ending March 31, 2015)
President and CEO Zenshi Takayama
Executive Vice President Junya AmitaExecutive Officer, andHead of Corporate Management Division Masami Matsuo
Briefing on Results for First 2Qs of FY2015
ZENRIN Co., Ltd. All Rights Reserved.©
Briefing on Results for First 2Qs of FY2015Table of Contents
1. Overview of Results for First 2 Quarters of Fiscal 2015
2. Earnings Forecast for Fiscal 2015
3. Income Distribution
4. Business Summary
Appendix
Note: This document contains forward-looking statements based on assumptions, forecasts and plans in light of information available to ZENRIN Co., Ltd. as ofthe preparation date of this document. Actual performance may vary significantly from the forecast figures due to various risks and uncertainties owing toglobal economic trends, market demand, status of competition, exchange fluctuations and other factors.The information that appears in this document rounds down fractions to the nearest specified unit and rounds off decimals in the percentage of change tothe first decimal place.In addition, cases where the percentage of change exceeds 1000% and cases where one or both of the items of comparison are negative are shown as “–.”
2/33
ZENRIN Co., Ltd. All Rights Reserved.©
Briefing on Results for First 2Qs of FY2015
1. Overview of Results for First 2 Quarters of Fiscal 2015
1) Overview of Results2) Changes in Net Sales and Income3) Causes for Change in Operating Income4) Segment Information5) Changes in Cash FlowsAppendix (1) Overview of Results for First 2 Quarters of Fiscal 2015・Amount of Capital Investment, Depreciation and R&D Costs・Changes in Composition of Net Sales by Quarter
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ZENRIN Co., Ltd. All Rights Reserved.©
Briefing on Results for First 2Qs of FY2015
1-1) Overview of Results
Amounts in million yen
Key Points of Results for First 2 Quarters of Fiscal 2015Compared to First 2 Quarters of Fiscal 2014 <decrease in sales and decrease in income (increase in terms of net income)>■Decrease in sales due in part to decrease in number of fee-paying subscribers to services for smartphones and restructuring of
subsidiaries■Recording of -735 million yen in deferred income taxes due in part to impact of deferred tax assets associated with loss carried
forward of subsidiaries following restructuring, among other factors, led to improvement in net income to 194 million yen
Compared to Earnings Forecast <upward revision in light of change in sales composition and deferment of certain expenses to second fiscal half>■Robust sales related to GIS utilizing residential map databases and data for Japanese in-car navigation systems■Upward revision of earnings forecast for second quarter in light of deferment of certain expenses associated with map
database maintenance and new development projects
FY2014Actual
FY2015Earnings Forecast(May 8)
FY2015Revised Forecast(Oct. 24)
FY2015Actual
Compared to First 2Qs of
FY2014
% of Change
Compared to Earnings Forecast(May 8)
% of Change
Compared to Revised Forecast(Oct. 24)
% of Change
Net Sales 24,010 22,500 22,550 22,556 -1,453 -6.1 56 0.3 6 0.0
Operating Expenses 23,970 23,500 22,850 22,865 -1,104 -4.6 -634 -2.7 15 0.1
Operating IncomeOperating Margin
390.2%
-1,000-4.4%
-300-1.3%
-308-1.4%
-348-1.6pt
――
6913.0pt
――
-8-0.1pt
――
Ordinary IncomeOrdinary Margin
2250.9%
-800 -3.6%
-20-0.1%
-18-0.1%
-244-1.0pt
――
7813.5pt
――
10.0pt
――
Net Income -250 -300 190 194 445 ― 494 ― 4 2.3
*No substantial change from the revised earnings forecast figures announced on October 24.4/33
ZENRIN Co., Ltd. All Rights Reserved.©
Briefing on Results for First 2Qs of FY2015
1-2) Changes in Net Sales and Income
Net SalesDown 1,453 (-6.1%) Down 348 ( ― ) Down 244 ( ― ) Improved 445 ( ― )
Operating Income Ordinary Income Net IncomeCompared to First 2Qs of
FY2014
Up 56 (+0.3%) Improved 691 ( ― ) Improved 781 ( ― )Compared to
Earnings Forecast
(announced on May 8)
Improved 494 ( ― )
*No substantial change from the revised earnings forecast figures announced on October 24.
25,4
52
22,7
44
25,8
49
24,0
10
22,5
00
22,5
56
0
5,000
10,000
15,000
20,000
25,000
30,000
10/9 11/9 12/9 13/9 14/9 14/9
1,75
0
305
2,56
5
39
-1,0
00
-308
-1,200
-700
-200
300
800
1,300
1,800
2,300
2,800
3,300
10/9 11/9 12/9 13/9 14/9 14/9
1,81
8
608
2,73
5
225
-800
-18
10/9 11/9 12/9 13/9 14/9 14/9
745
239
1,16
1
-250
-300 19
4
10/9 11/9 12/9 13/9 14/9 14/9
Decrease in sales for 2 consecutive periods
Income in previous period→ Loss
Loss in previous period→ Income
May
8 E
arni
ngs
Fore
cast
Act
ual
Due in part to impact of deferred tax assets following restructuring
Amounts in million yen
5/33
ZENRIN Co., Ltd. All Rights Reserved.©
Briefing on Results for First 2Qs of FY2015
1-3) Causes for Change in Operating Income
-2
-1
0
1
2
3
+0.3
+0.1
-1.1
-0.0
+0.0
-0.7
Net SalesCompared to First 2Qs of FY2014: -1.4 bn yen (-6.1%)Net SalesCompared to First 2Qs of FY2014: -1.4 bn yen (-6.1%)
+0.0 -0.3
Compared to First 2Qs of FY2014: -0.3 bn yen (-)
Decrease in number of fee-paying subscribers to services for smartphones Restructuring of subsidiaries
Withdrawal from sales promotion business and commissioned CAD processing operations
Decrease in operating expenses accompanied by decrease in sales of Other Business
-0.3
-0.8
13/9Actual13/9
ActualAdvertising Business
Advertising Business
Publishing BusinessPublishing Business
GIS Business
GIS Business
ICT Business
ICT Business
Other Business
Other Business
ITS Business
ITS Business
GlobalBusiness
GlobalBusiness
Operating ExpensesOperating Expenses
14/9Actual14/9
Actual
Amounts in billion yen
6/33
(Compared to First 2 Quarters of Fiscal 2014)
ZENRIN Co., Ltd. All Rights Reserved.©
Briefing on Results for First 2Qs of FY2015
Sales Composition
1-4) Segment Information
1. Map Database SegmentMain Items: Printed residential maps,
residential map databases, data for Japanese and overseas in-car navigation systems, services for smartphones, map data provision, etc. for various media/devices
2. General Printing SegmentMain Items: Commercial printing
3. OtherMain Items: Purchased products, Digital signage
87.4%
8.0%
4.6%
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ZENRIN Co., Ltd. All Rights Reserved.©
Briefing on Results for First 2Qs of FY2015
1-4) Map Database Segment
■ Robust sales related to GIS utilizing residential map databases and data for Japanese in-car navigation systems
■ Decrease in number of fee-paying subscribers to services for smartphones related to ICT
Down 753 (-3.7%)
Net SalesDownturn of 351 ( ― )
Operating IncomeCompared to First 2Qs of
FY2014
20,45819,705
16,000
18,000
20,000
22,000
24,000
13/9 Actual 14/9 Actual
-91 -442
-500
0
500
1,000
1,500
13/9 Actual 14/9 Actual
Amounts in million yen
8/33
ZENRIN Co., Ltd. All Rights Reserved.©
Briefing on Results for First 2Qs of FY2015
1-4) General Printing Segment, and Other
Net Sales Operating IncomeCompared to First 2Qs of
FY2014
Down 617 (-37.1%) Up 23 (83.1%)
Gen
eral
Prin
ting
Seg
men
tO
ther
1,888 1,806
0
1,000
2,000
3,000
13/9 Actual 14/9 Actual
1,662
1,045
0
1,000
2,000
3,000
13/9 Actual 14/9 Actual
26
-0
-60
-30
0
30
60
13/9 Actual 14/9 Actual
28
52
0
30
60
90
120
13/9 Actual 14/9 Actual
Compared to First 2Qs of
FY2014
Down 82 (-4.3%) Downturn of 27 ( ― )
<Decrease in sales due to restructuring>Withdrawal from sales promotion business and commissioned CAD processing operations
Amounts in million yen
9/33
ZENRIN Co., Ltd. All Rights Reserved.©
Briefing on Results for First 2Qs of FY2015
1-4) Net Sales by Business under Medium-Term Business Plan ZGP2015
Compared to First 2Qs of
FY2014
未
0.30.40.30.3 0.30.3
3.93.6 3.73.5 3.43.2
3.53.74.1
4.4 4.74.8
4.34.5
6.86.7
5.95.8
7.2
5.45.9
4.94.85.1
1.71.2
1.61.01.00.9
4.1
3.53.1
2.9
2.12.1
0
2
4
6
8Fi
rst 2
Qs
of F
Y20
12
Firs
t 2Q
s of
FY
2014
Firs
t 2Q
s of
FY
2013
Firs
t 2Q
s of
FY
2015
(May
8 E
arni
ngs
Fore
cast
)
Firs
t 2Q
s of
FY
2011
Firs
t 2Q
s of
FY
2015
(Act
ual)
AdvertisingAdvertising PublishingPublishing GISGIS ICTICT ITSITS GlobalGlobal OtherOther-0.8
(-13.1%)-0.3
(-9.8%)+0.3(8.6%)
+0.0(13.2%)
+0.1(3.9%)
-0.0 (-9.4%)
-0.7(-25.6%)
Amounts in billion yen
10/33
ZENRIN Co., Ltd. All Rights Reserved.©
Briefing on Results for First 2Qs of FY2015
Operating Cash Flows Financing Cash FlowsFree Cash FlowsInvesting Cash Flows
1-5) Changes in Cash Flows
Inflows up 2,159 Outflows down 1,981 Inflows up 4,141 1,997支出増加
Remodeling and expansion of ZENRIN-owned property
1,78
9
1,39
5
3,77
2
332
2,49
2
- 5,000
- 4,000
- 3,000
- 2,000
- 1,000
0
1,000
2,000
3,000
4,000
5,000
10/9 11/9 12/9 13/9 14/9
-1,7
25
-3,6
35
-2,0
47
-4,0
28
-2,0
47
10/9 11/9 12/9 13/9 14/9
64
-2,2
39
1,72
4
-3,6
96
444
10/9 11/9 12/9 13/9 14/9
-990
-1,2
82
-1,1
06 -462
-2,4
59
10/9 11/9 12/9 13/9 14/9
Free cash flows 444Financing cash flows -2,459Effect of exchange rate -64Net decrease in cash and cash equivalents -2,079Cash and cash equivalents at beginning of period 6,456Increase in cash and cash equivalents from newly consolidated subsidiary 329Cash and cash equivalents at end of period 4,706
Outflows up 1,997
Payment of income taxes and
decrease in trade notes and
accounts receivable
Business and capital alliance with
Indian map company
Amounts in million yen
11/33
ZENRIN Co., Ltd. All Rights Reserved.©
Briefing on Results for First 2Qs of FY2015
2. Earnings Forecast for Fiscal 2015
1) Overview of Earnings Forecast for Fiscal 2015
Appendix (2) Overview of Earnings Forecast for Fiscal 2015・Changes in Net Sales and Income・Causes for Change in Operating Income (Compared to Fiscal 2014)・Segment Information・Net Sales by Business under Medium-Term Business Plan ZGP2015・Amount of Capital Investment, Depreciation and R&D Costs
(No change from the figures announced on May 8)
12/33
ZENRIN Co., Ltd. All Rights Reserved.©
Briefing on Results for First 2Qs of FY2015
2-1) Overview of Earnings Forecast for Fiscal 2015
*The earnings forecast for fiscal 2015 is left unchanged from the figures announced on May 8, 2014.
FY2014Actual
FY2015Earnings Forecast Compared to
FY2014% of
ChangeNet Sales 53,589 52,300 -1,289 -2.4
Operating Expenses 50,409 49,500 -909 -1.8
Operating IncomeOperating Margin
3,1805.9%
2,8005.4%
-380-0.5pt
-12.0-
Ordinary IncomeOrdinary Margin
3,6636.8%
3,1005.9%
-563-0.9pt
-15.4-
Net Income 1,272 2,100 827 65.1
Amounts in million yen
Earnings Forecast for Fiscal 2015Given the many uncertainties over the business environment, the earnings forecast for fiscal 2015 is left unchanged from that announced on May 8, 2014 at this point in timeWhile striving to improve productivity, will steadily carry out maintenance of the 4D Geospatial Information DB and other prior developments that are indispensable for future business expansion
Compared to FY2014 <decrease in sales and decrease in income (increase in terms of net income)>Decrease in sales is expected due to withdrawal from businesses by consolidated subsidiariesMap database maintenance expenses and prior investments in new products will continue, but will strive to improve productivity and reduce costsNet income is expected to increase due in part to gain on sales of non-current assets accompanying restructuring
13/33
ZENRIN Co., Ltd. All Rights Reserved.©
Briefing on Results for First 2Qs of FY2015
3. Income Distribution
1) Dividends
14/33
ZENRIN Co., Ltd. All Rights Reserved.©
Briefing on Results for First 2Qs of FY2015
Cash Dividend per Share
15.0014.00 14.00 14.00 15.00
1.00
15.0014.00 14.00 15.00 15.00
1.00
0
15
30
11/3 12/3 13/3 14/3 15/3
yen29.00
(Forecast)3.0% orhigher3.0%3.0%3.0%3.0%
1%
2%
3%
4%
11/3 12/3 13/3 14/3 15/3
Dividend on Equity (DOE)on Consolidated Basis
Maintain dividend on equity (DOE) on a consolidated basis
of 3% or higher
Interim dividend: 15 yen (as initially forecast)Annual dividend: 30 yen (forecast)
(Forecast)30.00
28.00
3-1) Dividends
Basic Policy: Return income to shareholders in accordance with the level of income on a consolidated basis while taking into account the maintaining of an adequate amount of internal reserves
30.00
Increase in dividend
30.00
(Forecast)
Interim dividend
Year-end dividend
15/33
ZENRIN Co., Ltd. All Rights Reserved.©
Briefing on Results for First 2Qs of FY2015
1) Business Summary- Net Sales Forecast for Fiscal 2015
(The figures announced on May 8, 2014)
- Status of First 2 Quarters of Fiscal 20152) Present State and Upcoming Initiatives
4. Business Summary
16/33
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Briefing on Results for First 2Qs of FY2015
FY2015 Net Sales ForecastCompared to FY2014: +1.1 bn yen (+10.8%)
Expansion of net sales and
operating income
Strengthening of development of applications as top priority business
◆ Development of applications⇒Promotion of stock-type models through GIS package
products (real estate, building construction, etc.)⇒Sales expansion through tracking system solutions
◇ Earnings forecast for fiscal 2015・ Effects of release of stock-type models, increase in selling
of existing residential map data, etc., resulting in +1.1 billion yen compared to fiscal 2014 to 11.3 billion yen
4-1) Business Summary –GIS Business–
◇ Status of first 2 quarters of fiscal 2015・ Robust performance of GIS packages (stock-type models)・ Expansion of residential map printing service to
approximately 45,000 convenience stores across Japan
3.5 3.7 4.1 4.4 4.8
5.4 5.3 5.4 5.76.5
0
2
4
6
8
10
12
14
16
11/3 12/3 13/3 14/3 15/3
1H 2H
9.1 9.610.2
11.3
9.0
(Forecast)1H is Actual
Amounts in billion yen
17/33
ZENRIN Co., Ltd. All Rights Reserved.©
Briefing on Results for First 2Qs of FY2015
Improvement of operating margin
◇ Earnings forecast for fiscal 2015・ +0.2 billion yen compared to fiscal 2014
for both Publishing Business and Advertising Business◆ Marketing development
⇒Maintaining of sales of residential map related products⇒Expansion of advertising products through
establishment of marketing base◆ Product planning in collaboration with local governments
Redevelopment of marketing strategy
4-1) Business Summary –Publishing Business and Advertising Business–
◇ Status of first 2 quarters of fiscal 2015・ Decrease in printed residential maps in Publishing Business・ Advertising Business in collaboration with local governments
progressing as planned・ Signing of agreement on collaboration in disaster support
with more than 70 local governments
3.9 3.6 3.7 3.5 3.2
5.2 5.1 5.0 4.9 5.3
0
4
8
12
16
11/3 12/3 13/3 14/3 15/3
1H 2H
FY2015 Net Sales ForecastCompared to FY2014: +0.0 bn yen (+0.6%)
9.2 8.7 8.7 8.58.4
0.3 0.4 0.3 0.3 0.3 0.7 0.8 0.7 0.6 0.8
0
4
8
12
16
11/3 12/3 13/3 14/3 15/3
1H 2H
FY2015 Net Sales ForecastCompared to FY2014: +0.2 bn yen (+24.1%)
1.1 1.3 1.11.0 0.9
Pub
lishi
ng B
usin
ess
Adv
ertis
ing
Bus
ines
sAmounts in billion yen
(Forecast)1H is Actual
(Forecast)1H is Actual
18/33
ZENRIN Co., Ltd. All Rights Reserved.©
Briefing on Results for First 2Qs of FY2015
FY2015 Net Sales ForecastCompared to FY2014: -1.0 bn yen (-7.5%)
Expansion of market share
Differentiation of services through brand strategy◇ Earnings forecast for fiscal 2015・ Ongoing trend of decrease in fee-paying subscribers to
its-mo NAVI service for smartphones, resulting in -1.0 billion yen compared to fiscal 2014 to 13.1 billion yen
◆ Enrichment of services through new contents◆ Expansion of use through strengthening of
promotional campaigns
4-1) Business Summary –ICT Business–
◇ Status of first 2 quarters of fiscal 2015・ Decrease in fee-paying subscribers to services for smartphones・ Addition of new contents “3D maps” to “docomo map navi”・ Robust performance of services for portal sites and Google Maps
API (for business) carrier services development entrustment
4.3 4.56.8 6.7 5.8
4.86.0
7.3 7.47.2
0
2
4
6
8
10
12
14
16
11/3 12/3 13/3 14/3 15/3
1H 2H
9.210.6
14.113.1
14.1
Amounts in billion yen
(Forecast)1H is Actual
19/33
ZENRIN Co., Ltd. All Rights Reserved.©
Briefing on Results for First 2Qs of FY2015
FY2015 Net Sales ForecastCompared to FY2014: -0.6 bn yen (-5.4%)
◆ Existing market⇒Compatibility with entry models and
smartphone navigation apps◆ Next-generation systems
⇒Development of Advanced Driver Assistance Systems (ADAS)
◇ Earnings forecast for fiscal 2015・ Given the trends of new vehicle sales in Japan,
-0.6 billion yen compared to fiscal 2014 to 10.7 billion yen
Maintaining and stabilization of
operating income amount
Maintaining of market share and establishment of next-generation models
4-1) Business Summary –ITS Business–
◇ Status of first 2 quarters of fiscal 2015・ New vehicle sales volume in Japan
continuing to fall below previous year’s level・ Launch of entry models employing ZENRIN map data・ As ADAS research activities, establishment of
development center in North America and start of test data provision based on specifications of manufacturers
7.25.4 5.9
4.9 5.1
5.36.8 6.0
6.3 5.5
0
2
4
6
8
10
12
14
16
11/3 12/3 13/3 14/3 15/3
1H 2H
12.5 12.0 11.310.7
12.3
Amounts in billion yen
(Forecast)1H is Actual
20/33
ZENRIN Co., Ltd. All Rights Reserved.©
Briefing on Results for First 2Qs of FY2015
FY2015 Net Sales ForecastCompared to FY2014: +0.4 bn yen (+18.0%)
Creation of market in India
Launch in India and ASEAN countries
◇ Earnings forecast for fiscal 2015・ Expansion of business in India, resulting in
+0.4 billion yen compared to fiscal 2014 to 2.7 billion yen
◆ Full-scale launch of ITS and GIS in Indian market◆ Building of business base in ASEAN countries
4-1) Business Summary –Global Business–
◇ Status of first 2 quarters of fiscal 2015・ Holding of seminar on map information utilization for
Japanese companies expanding into Indian market・ Strengthening of in-car navigation system and GIS related
marketing support in collaboration with India branch
1.7 1.2 1.6 1.0 0.9
1.71.5 1.3
1.2 1.8
0
2
4
6
8
10
12
14
16
11/3 12/3 13/3 14/3 15/3
1H 2H
2.33.4
2.8 2.73.0
Amounts in billion yen
(Forecast)1H is Actual
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Briefing on Results for First 2Qs of FY2015
Reexamination of Group synergies
[Business Summary]Implementation of restructuring of consolidated subsidiaries for the purpose of reallocation of resources in fiscal 2014
◇ Earnings forecast for fiscal 2015Withdrawal from sales promotion business and commissioned CAD processing operations, resulting in -1.4 billion yen compared to fiscal 2014 to 4.6 billion yen
FY2015 Net Sales ForecastCompared to FY2014: -1.4 bn yen (-23.4%)
4-1) Business Summary –Other Business– (Commercial printing, digital signage, etc.)
◇ Status of first 2 quarters of fiscal 2015・ Despite decrease in sales due to restructuring,
impact on earnings is minimal・ Engaging in direct mail delivery services and
in-ship advertising, starting from October 1, 2014Conversion of SEPTENI DIRECT MARKETING CO., LTD. into consolidated subsidiary as ZENRIN BIZNEXUS CO., LTD., effective from third quarter of fiscal 2015, with acquisition of all SEPTENI DIRECT MARKETING shares
4.1 3.5 3.1 2.9 2.1
4.0 3.7
3.2 3.1 2.4
0
2
4
6
8
10
12
14
16
11/3 12/3 13/3 14/3 15/3
1H 2H
6.4 6.0
8.1
4.6
7.2
Amounts in billion yen
(Forecast)1H is Actual
22/33
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Briefing on Results for First 2Qs of FY2015
I. Earnings expansion through development of applications of existing and new map DB
4-2) Present State and Upcoming Initiatives
Upcoming Initiatives
III. Productivity improvement and structural reform for lowering the fixed cost ratio
II. Building of 4D Geospatial Information DB for optimization of the “Cycle of Knowledge”
[Present State]Build earnings base through GIS package and other new products and servicesTask is speed of development of applications using new map DB
[Present State]Building of 4D Geospatial Information DB, although slightly delayed, is steadily underway
[Present State]Continue productivity improvement and structural reformTask is sales growth for lowering the fixed cost ratio
23/33
Earnings expansion through 4D Geospatial Information DB・Early launch of new services・Restructuring of business model
Cost reduction through productivity reform
・Improvement of existing DB maintenance process・Automation of processes from information gathering to maintenance
Creation of business opportunities and strengthening of earnings base
・Strengthen alliances for the purpose of project planning and productivity improvement
ZENRIN Co., Ltd. All Rights Reserved.©
Briefing on Results for First 2Qs of FY2015
・Overview of Results for First 2 Quarters of Fiscal 2015Amount of Capital Investment, Depreciation and R&D CostsChanges in Composition of Net Sales by Quarter
・Overview of Earnings Forecast for Fiscal 2015(Excerpt from Briefing on Results for Fiscal 2014 presentation materials)
Changes in Net Sales and IncomeCauses for Change in Operating Income (Compared to Fiscal 2014)Segment InformationNet Sales by Business under Medium-Term Business Plan ZGP2015Amount of Capital Investment, Depreciation and R&D Costs
Appendix
24/33
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Briefing on Results for First 2Qs of FY2015
88 93 1121,023
5261,346
1,819 1,719
2,197
2,127501465 476
253816
4
8
0
1,000
2,000
3,000
4,000
5,000
10/9 11/9 12/9 13/9 14/9
Intangible lease assetsTangible lease assetsIntangible assetsProperty, plant and equipment
1,940
288206
160225
284
0
100
200
300
400
500
10/9 11/9 12/9 13/9 14/9
226 209 211 311 5051,104 1,176 1,278 1,462
1,609302 305 323389
38411 8 5
32
0
1,000
2,000
3,000
4,000
5,000
10/9 11/9 12/9 13/9 14/9
Depreciation of intangible lease assetsDepreciation of tangible lease assetsDepreciation of intangible assetsDepreciation of property, plant and equipment
1,644
2,378
1,700
2,309
1,819
3,482
2,167
(Amounts in million yen)
Remodeling and expansion with aging of
ZENRIN-owned property
Overview of Results for First 2 Quarters of Fiscal 2015(Amount of Capital Investment, Depreciation and R&D Costs)
R&D CostsR&D CostsAmount of Capital InvestmentAmount of Capital Investment
DepreciationDepreciation
2,500
Introduction of printing machines
3,470 Product development, etc.
Appendix(1)
25/33
ZENRIN Co., Ltd. All Rights Reserved.©
Briefing on Results for First 2Qs of FY2015
Overview of Results for First 2 Quarters of Fiscal 2015(Changes in Composition of Net Sales by Quarter)
21.9%
20.0%
21.9%
21.1%
19.8%
26.2%
23.5%
25.1%
23.7%
23.3%
24.4%
25.2%
23.3%
24.2%
27.5%
31.3%
29.7%
31.0%
56.9%
0% 25% 50% 75% 100%
11/3
12/3
13/3
14/3
15/3
1Q 2Q 3Q 4Q
Appendix(1)
26/33
ZENRIN Co., Ltd. All Rights Reserved.©
Briefing on Results for First 2Qs of FY2015
52,8
80
52,3
22
54,9
91
53,5
89
52,3
00
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
11/3 12/3 13/3 14/3 15/3
Decrease in sales for 2 consecutive periods
Decrease in income for 2 consecutive periods
Net Sales Operating Income Ordinary Income Net Income
Increase in income for first time in 4 periods
Fore
cast
Act
ual
Decrease in income for 2 consecutive periods
Overview of Earnings Forecast for Fiscal 2015(Changes in Net Sales and Income)
4,37
3
4,40
8
5,58
5
3,18
0
2,80
0 0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
11/3 12/3 13/3 14/3 15/34,
572
4,77
7
5,07
6
3,66
3
3,10
0
11/3 12/3 13/3 14/3 15/3
2,04
1
1,95
2
1,83
5
1,27
2 2,10
0
11/3 12/3 13/3 14/3 15/3
Appendix(2)
27/33
(Amounts in million yen)
ZENRIN Co., Ltd. All Rights Reserved.©
Briefing on Results for First 2Qs of FY2015
0
1
2
3
4
5
6
7
8
9
10
Overview of Earnings Forecast for Fiscal 2015(Causes for Change in Operating Income (Compared to Fiscal 2014))
+0.0
+1.1
-1.0-0.6
+0.9
+0.4+0.2
-1.4
Net SalesCompared to FY2014: -1.2 bn yen (-2.4%)Net SalesCompared to FY2014: -1.2 bn yen (-2.4%)
3.1 2.8
Compared to FY2014: -0.3 bn yen (-12.0%)
15/3Forecast
15/3Forecast
GIS Business
GIS Business
Publishing Business
Publishing Business
Advertising Business
Advertising Business
ITS Business
ITS Business
GlobalBusiness
GlobalBusiness
Other Business
Other Business
ICT Business
ICT Business
Operating ExpensesOperating Expenses
14/3Actual14/3
Actual
Decrease in number of fee-paying subscribers to services for smartphones
Restructuring of subsidiariesWithdrawal from sales promotion business and commissioned CAD processing operations
Decrease in operating expenses accompanied by decrease in sales of Other Business
Appendix(2)
28/33
(Amounts in billion yen)
ZENRIN Co., Ltd. All Rights Reserved.©
Briefing on Results for First 2Qs of FY2015
1. Map Database SegmentMain Items: Printed residential maps,
residential map databases, data for Japanese and overseas in-car navigation systems, services for smartphones, map data provision, etc. for various media/devices
2. General Printing SegmentMain Items: Commercial printing
3. OtherMain Items: Purchased products, digital signage
(direct mail delivery services, etc., starting from October 1, 2014)
Sales Composition
88.8%
7.0%
4.2%
Overview of Earnings Forecast for Fiscal 2015(Segment Information)
Appendix(2)
29/33
ZENRIN Co., Ltd. All Rights Reserved.©
Briefing on Results for First 2Qs of FY2015
Net Sales Operating IncomeCompared to
FY2014 Down 237 (-8.6%)Down 237 (-8.6%)Up 180 (+0.4%)Up 180 (+0.4%)
46,476 46,457
0
10,000
20,000
30,000
40,000
50,000
60,000
14/3 Actual 15/3 Forecast
2,756 2,518
0
1,000
2,000
3,000
4,000
5,000
14/3 Actual 15/3 Forecast
■ Increase in sales resulting from shift to stock-type models and development of applications in GIS Business
■ Decrease in fee-paying subscribers to services for smartphones expected in ICT Business
■ Expenses for maintenance of 4D Geospatial Information DB and new map DB, development of new products and other operating expenses will precede
Overview of Earnings Forecast for Fiscal 2015(Map Database Segment)
Appendix(2)
30/33
(Amounts in million yen)
ZENRIN Co., Ltd. All Rights Reserved.©
Briefing on Results for First 2Qs of FY2015
Net Sales Operating IncomeCompared to
FY2014 Down 61 (-45.4%)Down 61 (-45.4%)Down 231 (-5.9%)Down 231 (-5.9%)
Gen
eral
Prin
ting
Seg
men
tO
ther
Compared to FY2014 Down 3 (-2.6%)Down 3 (-2.6%)Down 1,237 (-36.4%)Down 1,237 (-36.4%)
3,908 3,676
0
1,000
2,000
3,000
4,000
5,000
6,000
14/3 Actual 15/3 Forecast
3,403
2,166
0
1,000
2,000
3,000
4,000
5,000
6,000
14/3 Actual 15/3 Forecast
136
74
0
100
200
300
14/3 Actual 15/3 Forecast
134 130
0
100
200
300
14/3 Actual 15/3 Forecast
Overview of Earnings Forecast for Fiscal 2015(General Printing Segment, and Other)
Appendix(2)
31/33
(Amounts in million yen)
ZENRIN Co., Ltd. All Rights Reserved.©
Briefing on Results for First 2Qs of FY2015
1.31.00.91.1
3.5
8.78.78.4 8.5
11.0
9.19.6 10.2
11.312.5
10.6
14.1 14.113.1
14.5
12.312.011.3
10.7
12.5
2.83.02.32.7
3.5
7.26.4 6.0
4.6
7.5
0
5
10
15
20
AdvertisingAdvertising PublishingPublishing GISGIS ICTICT ITSITS GlobalGlobal OtherOther-1.0
(-7.5%)+0.0(0.6%)
+1.1(10.8%)
+0.2(24.1%)
-0.6(-5.4%)
+0.4 (18.0%)
-1.4(-23.4%)C
ompa
red
to
FY20
14FY
2012
FY20
13
FY20
14
ZGP2
015
Fina
l Fis
cal Y
ear F
Y201
6 (T
arge
t)
Overview of Earnings Forecast for Fiscal 2015(Net Sales by Business under Medium-Term Business Plan ZGP2015)
FY20
15 (M
ay 8
Ear
ning
s Fo
reca
st)
Appendix(2)
32/33
(Amounts in billion yen)
ZENRIN Co., Ltd. All Rights Reserved.©
Briefing on Results for First 2Qs of FY2015
Overview of Earnings Forecast for Fiscal 2015(Amount of Capital Investment, Depreciation and R&D Costs)
201 238 1,050 2,735
1,188 3,172 3,756
4,502
5,093
5,327 774 745
1,078
468
850
4
17
0
2,000
4,000
6,000
8,000
10,000
12,000
11/3 12/3 13/3 14/3 15/3 Forecast
Intangible lease assetsTangible lease assetsIntangible assetsProperty, plant and equipment
4,151
584
376 511
606 574
0
200
400
600
800
1,000
11/3 12/3 13/3 14/3 15/3 Forecast
464 425 456 750 1,113
2,285 2,393 2,600 3,002
3,573 589 615 680 784
809
20 16 9 6
4
0
2,000
4,000
6,000
8,000
11/3 12/3 13/3 14/3 15/3 Forecast
Depreciation of intangible lease assetsDepreciation of tangible lease assetsDepreciation of intangible assetsDepreciation of property, plant and equipment
3,361
4,740
3,451
6,631
3,746
8,314
4,544
Remodeling and expansion with aging of
ZENRIN-owned property
R&D CostsR&D CostsAmount of Capital InvestmentAmount of Capital Investment
DepreciationDepreciation
5,500
Introduction of printing machines
7,367Product development, etc.
Appendix(2)
33/33
(Amounts in million yen)
ZENRIN Co., Ltd. http://www.zenrin.co.jpCorporate Management Division, Management Control & IR Department
IR contact email: [email protected]
34/36