Invester Relations

Performance Highlights

Consolidated Fiscal Year Ended December/31/2014 (Fiscal 2014)

  • Net sales (Thousand yen)
  • Ordinary income (Thousand yen)
  • Net income (Thousand yen)
  • Net income per share (Yen)
  • Shareholders’ equity / Total assets (Million yen)
  • Net assets per share (Yen)

Note:
1. Net sales do not include consumption tax and other taxes.

2. On July/1/2013, the Company conducted a 100-for 1 stock split.

3. On July/1/2014, the Company conducted a 5-for 1 stock split.

  Amounts for net assets per share and net income/loss per share have been calculated

  to reflect this stock split from the start of fiscal 2010 onward.



Fiscal 2014

During fiscal 2014 (January 1 to December 31, 2014), the Japanese economy showed improvement in corporate earnings and capital investment against a backdrop of aggressive economic growth policies by the Japanese government together with quantitative and qualitative monetary easing by the Bank of Japan. Nonetheless, the economy was impacted by a decline in demand following the consumption tax hike in April 2014 and rising prices, primarily for raw materials, due to the yen’s depreciation. Overall, however, Japan’s economy remained on a modest recovery path.

Meanwhile, the global economy remained shrouded in uncertainty, mainly due to cautious attitudes about trends in U.S. monetary policy and the outlook for the Russian economy and emerging markets.

Looking at stock market conditions in Japan, the Nikkei Stock Average closed the year at 17,450.77, up 1,159 from the end of 2013. In the foreign exchange market, the Japanese currency continued to weaken sharply, with the yen trading at more than \120 to the U.S. dollar at one point.

Faced with these conditions, the FISCO Group formulated the New FY2014-2016 Medium-Term Management Plan, a three-year plan starting in fiscal 2014. Under the plan, the Group has defined its medium- to long-term goal as becoming Japan’s largest platform-creator in providing financial information services. To reach this goal, the Group steadily worked to expand its network of publicly listed companies by developing its corporate analysis report business in tandem with strengthening cross-selling of products and services offered by its subsidiaries, such as corporate IR support services and PR services. The Group strove to build a portfolio of peripheral businesses and lay the groundwork for growth in each business by proactively transferring its core strategic assets to each operating company. These mainly included its branding power developed through financial information distribution business and the analytic, editorial, and distribution capabilities needed to provide timely and accurate information.

In the information services business, the Group converted General Solutions, Inc., a producer of annual reports and other corporate publications, into a consolidated subsidiary in June 2014 through a share acquisition.

In August 2014, the Group began distributing the FISCO smartphone app to provide investment information on publicly listed companies in Japan free of charge. This app provides corporate information and analysis functions that reflect analysts’ corporate analysis expertise and stock picking techniques. It provides a one-stop source of information where users can easily gather and view corporate data spread out widely over the Internet.

By providing this smartphone app free of charge, FISCO will use it as a means to gauge and respond to investor demand, as well as a tool to secure new sources of earnings through the effective use of big data.

NCXX Solutions Inc., the developer and operator of the FISCO smartphone app, has simultaneously initiated a cloud service business to provide this app as a white label (OEM) solution. NCXX Solutions Inc. intends to provide higher value-added services by selecting and adopting optimal solutions from among a variety of development methods, in line with customer needs and market trends, to fulfill customer needs at a sophisticated level.

As a future business expansion initiative, NCXX Solutions Inc. will build a business model that offers prospects for generating stable revenue from monthly usage fees by providing this app as an OEM solution to companies outside the FISCO Group.

Furthermore, in December 2014, the Group merged General Solutions, Inc. and D & JOIN INC. via an absorption-type merger with General Solutions, Inc. as the surviving company and D & JOIN INC. as the dissolving company. The purpose of this merger is to enhance management efficiency and to provide full-line production of integrated reports, along with annual reports, CSR reports, business reports, shareholder newsletters and other publications.

In conjunction with the merger, the surviving company was renamed as FISCO IR Ltd. in an effort to strengthen its framework for contributing significantly to the corporate IR activities of publicly listed companies and other enterprises as the corporate IR industry’s largest player. Looking ahead, FISCO IR Ltd. will fulfill an even more prominent role as a leading provider of corporate IR support services.

In the device business, as part of an additional growth strategy initiative, the Group conducted a corporate split in January 2014 in which NCXX Solutions Inc., a subsidiary of NCXX Inc., succeeded to certain rights and obligations held by SJI Inc. with respect to the system development business conducted by SJI Inc.’s Chubu, Kansai, and Kyushu Business Departments.

Eyeing future expansion in the device business, NCXX Inc. issued new shares and convertible bonds with subscription rights through a third-party placement in order to meet funding demand for machine-to-machine (M2M)-related product development and the bulk purchasing of certain products in the device business. As a result, NCXX Inc. has obtained highly versatile funds that can be used flexibly in response to changes in the business environment.

In the advertising agency business, the Group is emphasizing a corporate IR and PR strategy, with efforts focused on making integrated proposals spanning IR and PR. In December, the Group acquired the shares of Chanty Co., Ltd., which produces sales promotion merchandise for the campaign initiatives of client companies such as major beer companies and major advertising agencies. With this move, the Group is now able to make full-line proposals encompassing all aspects from advertising planning to the production of sales promotion merchandise and corporate IR. By conducting cross-selling targeting the customers using each type of service, the Group intends to increase the number of customers and provide even more sophisticated corporate IR and PR services.

As a result of these efforts, consolidated net sales for fiscal 2014 were \8,430 million, up 26.2% year on year. Cost of sales was \6,299 million, up 31.3% year on year, and selling, general and administrative expenses were \1,807 million, up 18.1% year on year.

Consequently, operating income was \323 million, down 8.6% year on year. Ordinary income rose sharply by 55.7% year on year to \903 million.

Operating income and ordinary income were both below the forecasts announced on February 28, 2014, mainly due to the impact of the postponement of certain product deliveries by NCXX Inc. to the next fiscal year. Nonetheless, the Group achieved a net income result that was largely in line with its forecast.

Operating income declined due to the impact of surging purchasing costs for certain products of NCXX Inc. due to exchange rate fluctuations. However, the Group booked a foreign exchange gain of \634 million upon exiting a foreign exchange margin trading position entered into as a means of hedging the risk of the yen’s depreciation. This helped to push ordinary income up dramatically. In fiscal 2015 and beyond, the Group plans to enter into foreign exchange forward contracts and other arrangements as a means of hedging the risk of foreign exchange fluctuations.

The Group posted extraordinary income of \200 million, which was partly offset by extraordinary losses of \22 million. As a result, net income increased sharply by 30.8% year on year to \730 million.

Fiscal Year Net sales Operating
income
Ordinary
income
Net income

Net income
per
share
Return
on equity
(ROE)
Return
on assets
(ROA)
Operating
margin
(Million yen) (Million yen) (Million yen) (Million yen) (Yen) (%) (%) (%)
FY2014
Fiscal year ended December/31/2014
Full year 8,430 323 903 730 20.55 25.8 10.8 3.8
3Q 6,492 373 436 255 7.25 - - -
2Q 4,510 283 253 132 3.77 - - -
1Q 1,751 11 △15 △32 △0.92 - - -
FY2013
Fiscal year ended December/31/2013
Full year 6,681 354 580 558 16.06 26.0 11.2 5.3
3Q 4,446 202 301 230 6.65 - - -
2Q 2,968 133 247 193 5.57 - - -
1Q 1,600 69 115 48 1.41 - - -
FY2012
Fiscal year ended December/31/2012
Full year 4,041 178 213 425 12.28 26.2 7.0 4.4
3Q 2,042 94 124 122 3.54 - - -
2Q 1,209 37 56 58 1.69 - - -
1Q 575 △7 △4 △3 △0.09 - - -
FY2011
Fiscal year ended December/31/2011
Full year 1125 5 10 139 3.94 10.1 0.6 0.5
3Q 573 22 13 77 2.18 - - -
2Q 376 14 10 62 1.76 - - -
1Q 190 6 9 65 1.80 - - -
FY2010
Fiscal year ended December/31/2010
Full year 881 △45 △29 14 0.45 1.58 △2.56 △5.13
3Q 692 △60 △50 △6 △0.22 - - -
2Q 506 △54 △47 △3 △0.13 - - -
1Q 271 △25 △21 △24 △1.45 - - -

*On July/1/2014, the Company conducted a 5-for-1 stock split. Amounts for net income/loss per share for each fiscal year and each quarter have been calculated to reflect this stock split from the start of fiscal 2010 onward.


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