Securities Code: 9474
Results for First 3 Quarters of
Fiscal 2017 (Year Ending March 31, 2017)
January 30, 2017
ZENRIN Co., Ltd.
0
Table of Contents
Results for First 3 Quarters of Fiscal 2017
1. Overview of Results for First 3 Quarters of Fiscal 2017
2. Earnings Forecast for Fiscal 2017
3. Appendix
Note: This document contains forward-looking statements based on assumptions, forecasts and plans in light of information available to
ZENRIN Co., Ltd. as of the preparation date of this document. Actual performance may vary significantly from the forecast figures due
to various risks and uncertainties owing to global 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 to the 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 “–.”
© ZENRIN CO., LTD. All Rights Reserved.
1
Results for First 3 Quarters of Fiscal 2017
1. Overview of Results for First 3 Quarters of Fiscal 2017
1) Overview of Results
2) Changes in Net Sales, Income and Profit
3) Causes for Change in Operating Income
4) Segment Information
5) Net Sales by Business under Medium- to Long-Term
Business Plan ZGP2020
© ZENRIN CO., LTD. All Rights Reserved.
2
1-1) Overview of Results
Results for First 3 Quarters of Fiscal 2017
Key Points of Results for First 3 Quarters of Fiscal 2017
■Robust sales related to Japanese in-car navigation system and GIS-utilizing residential map
databases, despite the decrease in sales from projects commissioned by the local governments.
■Net sales increased for two years in a row while operating income and ordinary income decreased
for the first time in two years, and profit attributable to owners of parent deteriorated for the first
time in three years, due to increases in SG&A expenses and amortization of the Zenrin Integrated
Geospatial System.
(Amounts in million yen)
First 3Qs of
FY2016 Actual
First 3Qs of
FY2017 Actual
Compared to First
3Qs of FY2016
% of Change
Net Sales
36,975
37,647
671
1.8
Operating Expenses
36,671
37,587
915
2.5
-80.3
Operating Income
Operating Margin
304
59
-244
0.8％
0.2％
-0.6Pt
Ordinary Income
665
291
-373
-56.2
Profit Attributable to
Owners of Parent
269
-170
-439
―
© ZENRIN CO., LTD. All Rights Reserved.
3
1-2) Changes in Net Sales, Income and Profit
Results for First 3 Quarters of Fiscal 2017
(Amounts in million yen)
Operating Income
Ordinary Income
Profit Attributable to
Owners of Parent
Up 671 (1.8%)
Down 244 (-80.3%)
Down 373 (-56.2%)
Downturn of 439 (―)
3,451
30,000
12/12 13/12 14/12 15/12 16/12
Increase in sales for
2 consecutive periods
-1,500
12/12 13/12 14/12 15/12 16/12
12/12 13/12 14/12 15/12 16/12
Decrease in income for
first time in 2 periods
© ZENRIN CO., LTD. All Rights Reserved.
-170
269
855
-212
-500
291
32,000
59
500
30
34,000
304
1,500
665
1,435
2,500
175
3,500
613
37,647
36,975
35,362
36,000
37,001
38,000
38,650
40,000
3,661
4,500
42,000
331
Compared to
First 3Qs of
FY2016
Net Sales
12/12 13/12 14/12 15/12 16/12
Profit in previous period
→ Loss
4
1-3) Causes for Change in Operating Income
Results for First 3 Quarters of Fiscal 2017
(Amounts in billion yen)
3.0
Compared to First 3Qs of FY2016: -0.2bn yen (-80.3%)
Net Sales
Compared to First 3Qs of FY2016: 0.6 bn yen (1.8%)
2.0
Increase in sales of in-car navigation
system due to new adoptions, etc.
+1.0
・Robust sales of GIS packages
・Contribution by newly consolidated
GIS marketing subsidiary
+0.9
1.0
-0.2
-0.2
+0.4
+0.0
0.0
0.3
0.0
-0.4
Increases in SG&A expenses and
amortization of the Zenrin Integrated
Geospatial System
Decrease in projects commissioned by
the local governments
-1.0
15/12
Actual
Publishing
GIS
ICT
ITS
Global
© ZENRIN CO., LTD. All Rights Reserved.
Other
Operating
Expenses
16/12
Actual
5
1-4) Segment Information
Results for First 3 Quarters of Fiscal 2017
Sales
Composition
83.1%
6.9%
1. Map Database Segment
Main Items: Printed residential maps,
residential map databases,
map data for Japanese and overseas
in-car navigation systems,
services for smartphones,
map data provision, etc. for various media/devices
2. General Printing Segment
Main Items: Commercial printing
3. Other
10.0%
Main Items: Purchased products,
digital signage,
direct mail delivery services,
in-ship advertising
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6
1-4) Map Database Segment
Results for First 3 Quarters of Fiscal 2017
(Amounts in million yen)
Compared to
First 3Qs of
FY2016
Net Sales
Operating Income
Up 895 (2.9%)
Downturn of 220 (－)
（単位：百万円）
400
30,385
31,281
200
160
30,000
0
-60
-200
20,000
15/12
16/12
-400
15/12
16/12
■ Reported robust sales of Japanese in-car navigation systems and sales related to GIS utilizing residential map databases.
■ Increases in amortization of the Zenrin Integrated Geospatial System, etc. were reported, in addition to an increase in
selling, general and administrative expenses including personnel expenses.
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7
1-4) General Printing Segment, and Other
General Printing Segment
Results for First 3 Quarters of Fiscal 2017
(Amounts in million yen)
Net Sales
5,000
Compared to
First 3Qs of
FY2016
Operating Income（単位：百万円）
20
4,000
3,000
0
2,726
2,604
-20
-9
2,000
-40
1,000
0
15/12
16/12
15/12
Down 102 (-2.6%)
16/12
Up 15 (18.4%)
150
5,000
4,000
-44
-60
Compared to
First 3Qs of
FY2016
Other
Downturn of 34 (－)
Down 122 (-4.5%)
3,863
3,761
100
3,000
2,000
84
100
50
1,000
0
15/12
16/12
0
© ZENRIN CO., LTD. All Rights Reserved.
15/12
16/12
8
1-5) Net Sales by Business under ZGP2020
Results for First 3 Quarters of Fiscal 2017
(Amounts in billion yen)
12.0
（単位：億円）
10.2 10.2
8.8
9.0
8.3
8.9
8.6
7.9 8.0
7.4
6.6
6.0
5.9
5.7
5.3 5.4
8.5
7.8 7.6
7.5
6.9
5.5
4.9
4.7
5.3
4.2 4.1
3.0
2.2
1.9 1.8 2.0 1.8
Compared to
First 3Qs of
FY2016
0.0
Publishing
GIS
ICT
ITS
Global
Other
-0.4
（△
0.0%）
+0.4
+0.0
+1.0
-0.2
-0.2
(13.2%)
(-9.9%)
(-3.7%)
△0
(-9.1%)
(5.8%)
(1.1%)
* Net sales for the first 3 quarters of fiscal 2013 (period ended December 2012) and first 3 quarters of fiscal 2014 (period ended December 2013), which
are the outlined open bars on the bar graph, are net sales compiled based on the business composition under ZGP2015.
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9
Results for First 3 Quarters of Fiscal 2017
2. Earnings Forecast for Fiscal 2017
1) Overview of Earnings Forecast for Fiscal 2017
(No change from the figures announced on May 9)
2) Net Sales by Business under Medium- to Long-Term
Business Plan ZGP2020
3) Changes in Composition of Net Sales by Quarter
4) Dividends
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10
2-1) Overview of Earnings Forecast for Fiscal 2017
Results for First 3 Quarters of Fiscal 2017
Earnings Forecast for Fiscal 2017
Given that the actual results through 3Q have been roughly in line with the forecast, the earnings forecast for
fiscal 2016 is left unchanged from that announced on May 9, 2016 for now.
Compared to Fiscal 2016 <increase in sales and decrease in income>
■ Securing of earnings from GIS Business
■ Reduction of fixed cost ratio through productivity reform
■ Stable operation of Zenrin Integrated Geospatial System and product development
(Amounts in million yen)
FY2016
Actual
FY2017
Forecast
Compared to
FY2016
% of Change
Net Sales
54,970
57,000
2,029
3.7
Operating Expenses
51,931
53,600
1,668
3.2
Operating Income
Operating Margin
3,038
3,400
361
11.9
5.5％
6.0%
0.5pt
Ordinary Income
3,427
3,700
272
7.9
Profit Attributable to
Owners of Parent
1,610
2,200
589
36.6
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11
2-2) Net Sales by Business under ZGP2020
Results for First 3 Quarters of Fiscal 2017
(Amounts in billion yen)
20.0
（単位：億円）
Dark colored portion of bar graph: First 3Qs of FY
15.0
13.5
12.0
5.0
9.8
9.4
5.9 5.7
9.0
9.4
9.0
Forecast
10.0
5.3 5.4
9.6
14.1 14.1
12.0
11.8
11.4
11.0
10.2
12.0
11.3 11.6
11.2
12.0
10.2 10.2
8.3
6.6 6.9
8.8
7.4
8.9
7.9 8.0
8.6
7.8 7.6 7.5
7.5
8.5
4.9
6.4
3.0
2.3 2.7
2.9 3.1
4.7
7.3
6.0 6.2
5.5 5.3
4.2 4.1
2.2 1.9
1.8 2.0 1.8
Compared to
FY2016
0.0
13/3 14/3 15/3 16/3 17/3
13/3 14/3 15/3 16/3 17/3
13/3 14/3 15/3 16/3 17/3
13/3 14/3 15/3 16/3 17/3
13/3 14/3 15/3 16/3 17/3
13/3 14/3 15/3 16/3 17/3
Publishing
GIS
ICT
ITS
Global
Other
-0.3
+1.4
+0.3
+0.4
+0.2
(-3.7%)
(12.4%)
(3.2%)
(3.6%)
(7.8%)
-0.1
(-1.8%)
*Net sales for fiscal 2013 (year ended March 31, 2013) and fiscal 2014 (year ended March 31, 2014) are net sales compiled based on the business composition under ZGP2015.
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12
2-3) Changes in Composition of Net Sales by Quarter
Results for First 3 Quarters of Fiscal 2017
1Q
17/3
19.6%
16/3
20.4%
15/3
19.8%
14/3
21.1%
13/3
21.9%
0%
2Q
23.9%
24.6%
23.3%
3Q
33.9%
22.6%
22.3%
32.7%
24.5%
32.4%
23.7%
31.0%
24.2%
25.1%
25%
4Q
29.7%
23.3%
50%
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75%
100%
13
2-4) Dividends
Results for First 3 Quarters of Fiscal 2017
Basic
Policy
Return income to shareholders derived from income growth based on the medium- to long-term
business plan, while taking into account maintaining an adequate amount of internal reserves
Target dividend on equity (DOE) on a consolidated basis of 3% or higher
40.00
yen
FY2017 Dividend (Compared to FY2016)
Interim
Year-end
(Planned)
Annual
(Planned)
30.00
17.00 yen (+1.50 yen)
~ Maintain DOE of 3% or higher ~
Year-end dividend
30.00
30.00
Interim dividend
31.00
32.50
17.00
17.00
15.00
15.00
16.00
15.00
15.00
15.00
15.50
17.00
13/3
14/3
15/3
16/3
17/3
(Planned)
（予定）
20.00
17.00 yen
34.00
(Planned)
(± 0 yen)
34.00 yen (+1.50 yen)
10.00
0.00
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14
Results for First 3 Quarters of Fiscal 2017
3. Appendix
1) Overview of Results for First 3 Quarters of Fiscal 2017
Amount of Capital Investment, Depreciation and R&D Costs
2) Overview of Earnings Forecast for Fiscal 2017
(Excerpt from Briefing on Results for Fiscal 2016 presentation materials)
Changes in Net Sales, Income and Profit
Amount of Capital Investment, Depreciation and R&D Costs
3) Medium- to Long-Term Business Plan ZGP2020 (From the announcement on 8 May, 2015)
Numerical Targets
Net sales by Business
4) Business Topics
© ZENRIN CO., LTD. All Rights Reserved.
15
3-1) Overview of Results for First 3 Quarters of Fiscal 2017
(Amount of Capital Investment, Depreciation and R&D Costs)
Results for First 3 Quarters of Fiscal 2017
Intangible leased assets
Tangible leased assets
8,000
Amount of Capital Investment
Intangible assets
8
351
6,000
4,003
2,000
629
600
4,896
859
3,573
678
12/12
6,000
677
13/12
Depreciation of intangible leased
assets
Depreciation of tangible leased
assets
Depreciation of intangible assets
Depreciation of property, plant and
equipment
4,000
2,768
7
500
2,000
1,934
0
3,967
4,109
840
30
936
2,962
2,846
137
296
15/12
16/12
27
3,360
2,695
1,956
0
（単位：百万円）
Property, plant and equipment
5,889
4,000
R & D Cost
800
(Amounts in million yen)
3,340
5
588
2,219
14/12
400
200
335
404
405
291
288
15/12
16/12
0
12/12
13/12
14/12
Depreciation
4,106
3,756
3,774
3
581
3
582
2,432
2,678
3,175
10
554
324
526
739
510
366
12/12
13/12
14/12
15/12
16/12
© ZENRIN CO., LTD. All Rights Reserved.
16
3-2) Overview of Earnings Forecast for Fiscal 2017
(Changes in Net Sales, Income and Profit)
Results for First 3 Quarters of Fiscal 2017
(Amounts in million yen)
0
14/3
15/3
17/3
Increase in sales for two
consecutive periods/Record high
2,200
1,610
1,464
1,835
3,700
3,427
5,076
1,272
16/3
Profit Attributable to
Owners of Parent
1,000
0
13/3
2,751
2,000
3,663
20,000
3,400
3,000
3,038
30,000
2,389
4,000
Forecast
40,000
Result
5,000
3,180
6,000
50,000
10,000
Ordinary Income
7,000
5,585
54,970
52,286
53,589
60,000
54,991
70,000
Operating Income
57,000
Net Sales
13/3 14/3 15/3 16/3 17/3
13/3 14/3 15/3 16/3 17/3
Increase in income for two consecutive periods
© ZENRIN CO., LTD. All Rights Reserved.
13/3 14/3 15/3 16/3 17/3
Increase in profit for
three consecutive
periods
17
3-2) Overview of Earnings Forecast for Fiscal 2017
(Amount of Capital Investment, Depreciation and R&D Costs)
Results for First 3 Quarters of Fiscal 2017
Intangible leased assets
12,000
Tangible leased assets
Intangible assets
Property, plant and equipment
10,000
8,314
8,000
17
468
6,000
Amount of Capital Investment
6,631
1,078
Remodeling and
expansion with
aging of ZENRINowned building
Introduction of
printing machines
6,519
5,575
6,312
925
27
1,254
5,093
1,011
R & D Cost
1,000
800
600
400
4,000
4,502
2,000
0
6,000
1,050
2,000
0
14/3
Depreciation of intangible
leased assets
Depreciation of tangible leased
assets
Depreciation of intangible
assets
Depreciation of property, plant
and equipment
3,746
4,000
4,314
4,622
733
222
436
15/3
16/3
17/3 Forecast
200
511
606
694
647
400
2,735
13/3
8,000
4,860
(Amounts in million yen)
9
680
2,600
4,544
6
784
3,002
0
13/3
14/3
15/3
16/3
17/3 Forecast
Depreciation
5,822
5,005
5,181
8
757
4
774
5
781
3,279
3,703
4,523
456
750
946
691
532
13/3
14/3
15/3
16/3
17/3 Forecast
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18
3-3) ZGP2020 Numerical Targets
(From the announcement on 8 May 2015)
FY2015
Actual
Consolidated
Net Sales
Consolidated
Operating Income
(Margin)
ＲＯＥ
(Return on equity)
ＤＯＥ
(Dividend on equity
on a consolidated basis)
Results for First 3 Quarters of Fiscal 2017
FY2016
Forecast
FY2018
Target
FY2020
Target
52.2 bn yen 55.5 bn yen
60.0 bn yen
70.0 bn yen
2.3 bn yen
2.5 bn yen
5.0 bn yen
10.0 bn yen
(4.6%)
(4.5%)
(8.3%)
(14.2%)
3.9%
4%
3.0%
3% or higher
© ZENRIN CO., LTD. All Rights Reserved.
8% 12% or higher
3% or higher
3% or higher
19
3-3) Net Sales by Business under ZGP2020
(From the announcement on 8 May 2015)
Results for First 3 Quarters of Fiscal 2017
(Amounts in billion yen)
20.0
17.5
15.5
15.0
13.5
12.1
11.0
10.0
9.1 9.3
14.0
12.4
12.4
11.4
13.5
12.0
11.3
10.9
8.0
7.47.7
FY2020 Target
FY2018 Target
FY2016 Forecast
5.0
FY2015 Actual
8.9
4.5
6.1
2.9 3.5
2.2
Compared to
FY2015
0
Publishing
GIS
ICT
ITS
Global
Other
+2.0
+4.0
+5.0
+2.5
+2.2
+1.8
(22.8%)
(35.7%)
(40.3%)
(23.0%)
(99.6%)
(29.1%)
* Net sales for fiscal 2015 are net sales compiled based on the business composition under ZGP2015.
© ZENRIN CO., LTD. All Rights Reserved.
20
3-4) Business Topics
Results for First 3 Quarters of Fiscal 2017
■Commenced joint development of media services for
in-car navigation system utilizing location attribute
data and driver’s driving data. (October 25, 2016)
ZENRIN DataCom CO., LTD., the Company’s consolidated
subsidiary, and Hakuhodo DY Media Partners Inc. commenced
joint development of media services for in-car navigation system
utilizing location attribute data and the driver’s driving data.
Location attribute data held by the ZENRIN DataCom
⇒ Able to identify driver’s driving location.
<Joint development>
Coordinating location attribute data with driver’s driving data will make
it possible to offer useful information to the driver.
Superior latitude and flexibility in outdoor information delivery will also
be possible, including the use of sensor information such as GPS, WiFi and iBeacon developed by the Marketing Technology Development
Division of Hakuhodo DY Holdings, Inc., and the ability to change the
delivered information based on past action history, etc.
The development of this media services has been made possible by
the utilization of the delivery platform.
<Currently being tested>
Utilizing “its-mo NAVI Drive” provided by ZENRIN DataCom
Not only does it provide navigation to the destination but also delivers
advertising for recommended points of interest/close-by shops based
on the driver’s location information and preferences and guides the
driver to such locations and shops.
・Driver ⇒ Able to receive useful information through the app.
・Advertiser ⇒ Able to guide potential customers to its stores in a way
that was not possible using the conventional Web or
banner advertising in apps.
■Now possible to use residential maps in “Road
Patrol Support Service” (November 14, 2016)
It will become possible to use the Company’s residential maps in
“Road Patrol Support Service*1” offered by FUJITSU TRAFFIC &
ROAD DATA SERVICE, LTD.
Scheduled to commence marketing under the name, “Road
Patrol Support Service: ZENRIN Residential Map Compatible
Function Option (Tentative)” from April 1, 2017.
Contributing to improving the operational efficiency of road
administrators by incorporating the Internet residential map delivery
services*2 which can even show the shape of the houses and
doorplate information.
(Street map level)
*In urban areas, city maps which show the
shape of buildings may be accessed.
(Residential map level)
*Names on doorplates have been blurred.
*1 This service, which is intended to improve the operational efficiency of road
administrators in road maintenance work, incorporates the Company’s “its-mo
NAVI API,” a road map/city map level Internet delivery service, allowing the
user to confirm various information on the map on the computer screen.
*2 “ZNET TOWN API” a residential map Internet delivery service
ICT
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GIS
21
3-4) Business Topics
Results for First 3 Quarters of Fiscal 2017
■Commenced providing multi-language digital signage
specifically for accommodation facilities
■Commenced providing map services to location
information games (December 8, 2016)
(December 7, 2016)
In response to the influx of overseas hotel guests, we are
providing an environment where the hotel guests can access
information on surrounding facilities and tourist spots on their
own in foreign languages.
Enhancing customer satisfaction of hotel guests as well as
helping to reduce the hotel staff’s customer care work.
Trial run at: Sunshine City Prince Hotel and Naeba Prince Hotel
<Content / function>
(i) ”Multi-language map”
Compatible with English, Chinese (Simplified, Traditional), and
Korean, and description appears in both Japanese and the foreign
language.
(ii) ”Vicinity Map” and “TAXI Card”
Users may browse information on popular tourist spots in Tokyo.
By scanning the two-dimensional barcode, the facility information
will be forwarded to a smartphone, and the destination can be
communicated by showing it to the taxi driver.
(iii) “Train transfer information”
Tourist spots often recommended by hotels are already indicated.
Train transfer information will be shown from the nearest train
station by merely touching the button.
By scanning the two-dimensional barcode, the facility information
will be forwarded to a smartphone.
ZENRIN DataCom CO., LTD., the Company’s consolidated
subsidiary commenced providing map services to location
information games.
It is now possible to offer originally-designed maps that, unlike
conventional illustrated maps, reflect the real world and match
the world view of the game.
・A cloud environment has also been developed to ensure the
availability of the service.
・Service will be available even during heavy access.
・May be used widely in entertainment services including games.
Screen may be changed according to weather conditions, such as a sunny day
(left) and a rainy day (right)
Game area may be set
Loaded with the geofence
function against the risks of
location information games,
allowing the user to set specific
areas exclusively as outside of
the area of the game.
(”Vicinity Map” and “TAXI Card”)
ICT
© ZENRIN CO., LTD. All Rights Reserved.
VR/AR services compatible
Compatible with VR/AR games
such as those using head-mount
displays.
Compatible with Unity
Compatible with Unity which is
supported by numerous
developers including games for
smartphones.
ICT
22
3-4) Business Topics
Results for First 3 Quarters of Fiscal 2017
■Business tie-up between KDDI, Prodrone and ZENRIN in the drone business utilizing
mobile telecommunication networks (December 19, 2016)
The Company has entered into a business tie-up in the drone business with the KDDI Corporation, the major
telecommunications company, and Prodone Co., Ltd., the drone manufacturer, and announced the concept for the “Smart
Drone Platform,” the operation and management platform for drones.
This business tie-up was concluded for the purpose of developing a platform to ensure the safe and secure, autonomous
flight of drones, which are expected to be utilized in various industries, and the Company will promote this project through the
research and development of “Aerial 3D Map Data.”
With today’s technology, drones can generally only fly in limited areas, as their flights require wireless and Wi-Fi. With the
“Smart Drone Platform,” flights over a wide area will become possible through the utilization of KDDI’s mobile phone base
station network. And by using the Company’s “Aerial 3D Map Data” and Prodrone’s high-performance drones, we will aim to
build a system which will enable the safe and secure autonomous flight of the drone to its destination, while the drone itself
confirms flight zones and its own precise location.
Going forward, by utilizing the “Smart Drone Platform,” we will provide solutions such as facility inspections, agricultural
support and disaster relief, as well as consumer services such as filming services, and promote the “Smart Drone Concept”
in which drones connected by the network will play a leading role in various fields.
Mobile telecommunications
network +
telecommunications module
Mobile network (4G/5G)
Telecommunication
module for drones
Aircraft
Underwater
filming
Map
Wall surface
inspection
With arms
Aerial 3D Map Data
ICT
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ZENRIN CO.,LTD. http://www.zenrin.co.jp
Corporate Management Division, Management Control & IR Department
IR contact email: [email protected]
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