consolidated financial results for ended march 20201 consolidated financial results for the fiscal...
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1
Consolidated Financial Results for the Fiscal Year ended March 2020
(Twelve months ended March 31, 2020)
T‐Gaia Corporation / TSE 3738May 26, 2020
2
We would like to extend our deepest sympathies to all those affected by the outbreak of COVID‐19.
3Disclaimer
This material contains statements about the future performance of T‐Gaia Corporation which are based on management's assumptions and beliefs taking information currently available into consideration. Therefore, please be advised that T‐Gaia’s actual results could differ materially from those described in these forward looking statements as a result of numerous factors.The factors that affect actual business performance include, but are not limited to, the business environment, the general economic conditions, changes in law and other related regulations, and adverse judgments in litigation.
4
1. Regarding Forecast for FY 2021 52. Impacts of COVID‐19 Pandemic 6‐83. Outline of the Consolidated Financial Results 9‐134. Financial Results of FY 2020 and Updates
・Mobile Telecommunications Business Segment 15‐19・Enterprise Solution Business Segment 20‐31・Payment Service Business and Other Business Segment 32‐44
5. Company‐wide Updates 45‐476. Dividend Policy and Financial Information 48‐51
Appendixes 52‐57
Table of Contents
5Regarding Forecast for FY 2021
Due to the uncertainty of impacts from the worldwide COVID‐19
pandemic to our business, it is difficult to calculate a reasonable
earnings forecast at this stage. For this reason, consolidated
financial forecast for the FY 2021 is undetermined.
The impacts will be assessed and the announcement of the
forecast will be made as soon as the details become available.
6
April 7: State of emergency declared
March 25: Tokyo Gov. has asked to stay home during weekends
March 26: Carrier shops reduced opening hours in Tokyo
Increase in number of corporates introducing telework
March 12: WHO announces it as a pandemic
2020 March MayApril
April 16: State of emergency extends nationwide
Delay in supply of terminals
Reduced shop opening hours and raise in number of closed shops
Limited services offered at shops
April 21: Docomo and Softbank limited services offered at shops
April 19: Docomo, au, and Softbank announced to postpone the sales of iPhone SE
Drop in number of people visiting shop
Government and Local Authorities
Telecommunication Industry
Impact on T‐Gaia’s Business
May 4: Japan extended the period for state of emergency
Mobile Telecommunications Business Segment
Enterprise Solution Business Segment
May 14 Japan lifts state of emergency in 39 prefectures
Impacts of COVID‐19 Pandemic (as of May 22)
May 21 Japan lifts state of emergency in 3 prefectures
7
89%59%
40%
73%
50%39%
Same month
last year
(100%)
2020 March
2020 April
2020 May(As of 15th May)
1. People advised to stay‐home
2. Reduced shop opening hours and shop closure
3. Limited service offered at shop
Negative Impacts
2020 March
2020 April
2020 May(As of 15th May)
Same monthlast year(100%)
Mobile Telecommunications Business Segment
Impacts of COVID‐19 Pandemic (as of May 22)
Change in number of people visiting shop per day
Change in unit sales per day
8
Enterprise Solution Business Segment Payment Service Business and Other Business Segment
Strong market trend for smartphone games due to people staying home
<March>
Delay in supply due to shortage of smart‐devices
<March and onward>
Strong sales of telework related products and services
Net Sales of April 2020(Enterprise Solution Business Segment alone)
19% increase tosame month last year
Gross Sales of PIN and Gift Cards
Quo Card has been selected, by Osaka Gov., as supporting aid to healthcare workers.
Impacts of COVID‐19 Pandemic (as of May 22)
Issued amount of QUO Card in April
increased by 7% same time last year
101% 109% 122%
same month
last year
(100%)
March 2020
April2020
May 2020(as of May 15th)
9
Outline of the Consolidated
Financial Results
10Summary of Consolidated Financial Results
474.15
FY 19/3 FY 20/3
67.90
54.18
13.72
19.19
12.62
Gross Profit
Net Sales
SG&A Expenses
Operating Profit
Net Profit
Ordinary Profit
y/y Change
(to Net Sales)
(to Net Sales)
90.0%
95.7%
97.5%
89.2%
93.2%
91.2%
(14.3%)
(2.9%)
(unit︓billion yen)
(+0.8p)
(0.0p)
Forecast of 20/3 full year
Achievement Ratio
109.8%
100.6%
99.6%
104.8%
103.8%
101.8%
432.00
67.50
54.40
13.10
18.50
12.40
(15.6%)
(3.0%)
Unit Sales(million unit) 3.7074.127 89.8%
Non‐Operating Income
(Income from hoardedcards, etc.)
101.3%5.405.46
526.92
70.94
55.56
15.38
20.59
13.84
(13.5%)
(2.9%)
5.21 104.9%
* From this fiscal year, UQ WIMAX has been included to the unit sales, and the unit sales for the 3Q of FY 19/3 has been revised. (FY 19/3 +7000 units)
*
11
13.10 11.66
2.432.81
452.6 390.9
26.547.7
30.153.0
8.86 7.81
1.681.77
3.283.03
* [ ] = segment ratio
FY 19/3 FY 20/3
Mobile Telecommunications Business SegmentMobile Telecommunications Business Segment
Enterprise Solution Business SegmentEnterprise Solution Business Segment
Payment Service Business and Other Business SegmentPayment Service Business and Other Business Segment
FY 19/3 FY 20/3
Financial Results by Business Segment
Net Sales Net Profit
FY 19/3 FY 20/3
Operating Profit
526.9474.1
15.38
13.8412.62
(billion yen)
[9.1%]
[5.0%]
[85.9%]
[11.2%]
[6.4%]
[82.4%]
[15.9%]
[85.2%]
[12.2%]
[23.7%]
[64.1%]
[14.1%]
[24.0%]
[61.9%]
(billion yen)
(billion yen)
[▲1.1%]▲0.75
All have marked low compared to last yearhowever overall results achieved the initial forecasts.
[20.5%]
[85.0%]
13.72
Expenses has increased for Payment Service Business and Other Business Segment due to promotion of “QUO Card Pay” by QUO CARD Co., Ltd. the subsidiary company had proceeded as planned .
Net sales of Mobile Telecommunications Business Segment, affected by the lower unit sales of mobile phone handset.
▲0.16[▲5.5%]
12
4Q (January to March)
FY 20/34Q
FY 19/34Q
150.1
119.1
4.54 4.33
(billion yen)Net Sales Operating
Profit
3.333.68
Net Profit
Fine results for 1Q and 2QLow in 3Q but recovered slightly in 4Q
Financial Results in Quarterly Comparison
13
Unit SalesUnit Sales
41273707
(Thousand units)
FY 19/3 FY 20/3
Unit Sales on Company‐wide Basis
Unit Sales of Mobile Phones & Tablets
●October 2019・Revised Telecommunications Business Act put in force
Separation of communication fee from handset price. Regulation on reduction of handset sales price.
・Increase in consumption tax・Rakuten Mobile postponed its start of MNO service to April 2020● March 2020 The deployment of 5G network commercial service● Spread of COVID‐19
From October 2019 onwardMarket Trends
・Strong feeling of handsets are overpriced and restrained buying・Wait and see attitude for Rakuten Mobile MNO service, and the launch of 5G services.・ There was a last‐minute demand before the launch of new plans and increase in consumption tax, therefore resulted in small sales scale for the term.・ People stayed home during COVID‐19 period resulted in low sales.
Consumer Trends
* Including WiFi terminals and MVNO handsets
* The unit sales of FY 19/3 has been modified as UQ WIMAX has been included into the calculation. (7000 units are added.)
14
Mobile Telecommunications Business Segment
Enterprise Solution Business Segment
Payment Service Business and OtherBusiness Segment
15
Mobile TelecommunicationsBusiness Segment
16Mobile Telecommunications Business Segment
Net sales, operating profit, and net profit achieved full‐year plan although sales and profit marked low year‐on‐year affected by the drop in unit sales from last October.
3458
(thousand unit)
Unit Sales of Mobile Handsets
FY 19/3Full year
FY 20/3Full year
39.09
13.10 11.66
(billion yen)
Net Sales
Operating Profit
Financial Results Comparison
45.26
Net Profit
8.86 7.81
FY 19/3Full year
FY 20/3Full year
3928
* Including WiFi terminals and MVNO handsets
17
32(9)20(20) 25(23)
Docomo au SB YM UQ Rakuten
1,090 (344)
1,111 1,090
188 188
566 551
17 16
1,8451,882
Carrier Shop
Accessories Shop
End of March 2020End of March 2019 End of March 2019 End of March 2020
1,111 (332)
32(9)46(5)
323(39)
379(95)
285(173)
36(2)
342(37)
400(91)
281(173)
Total number of retail outlets has decreased however the number of directly managed carrier shops has increased due to the transfer of the management contracts.
Number of Shops by Each Carrier*( ) = Directly managed Carrier Shop
Total Number of Retail Outlets of Mobile Phone and Others
Change in Number of Retail OutletsMulti‐Carrier Shop
Shop‐in‐shop & GMS
18Investment in shops
January 17th
au Shop
Kamojima
Change of locationJanuary 18th
au Shop
Higashi Kawahara
RenovationMarch 13th
Docomo Shop
Yume Town Oku
Renovation
Creating shops that can contribute to customers and local communities as a local ICT base
19Regarding COVID‐19
Infection prevention measures in shops
The safety of customers and staff is top priority.Operating shops as maintenance bases for “social infrastructure”
= mobile phone network
・Wearing mask and goggles・Setting clear plastic panel
Preventions provided by our supply routes and with the support from each carriers
・Installed alcohol based sanitizer and disinfection mist・Social distancing measure for waiting area・Supplied a non‐contact thermometer
20
Enterprise SolutionBusiness Segment
21
Financial Results Comparison
(billion yen)Net Sales
Operating Profit
Unit Sales of Mobile Phone
199249
(thousand units)
26.530.1
2.812.43
Net Profit
1.771.68
FY 19/3 FY 20/3 FY 19/3 FY 20/3
* Including WiFi terminals and MVNO handsets
Operating profit and net profit increased due to strong sales in solution services and terminals for enterprise customers.
Financial Results of Enterprise Solution Business Segment
22
End of March 2019
End of March2020
548619
181 195
Subscription Services
Number of movino star ID
The communication line management service for corporate clients (thousand IDs) (thousand IDs)
Number of Subscription of Help Desk Services
Numbers are growing steadily
End of March 2019
End of March2020
23
End of March 2019
End of March 2020
The number of lines is steadily increasing
The optic fiber access serviceIncreasing
steadily
Cumulative Number of TG HikariSubscribers (incl. Resale)
Subscription Service
End of April 2015(Launch)
24The Environment Surrounding Network Solutions
The market for wireless LAN devices for enterprise ・Virtual networking technologies
・Advancement in solutions such as integration / reconstruction of IT infrastructure of network & cloud
Entering to a new business domain of edge computing
Growth rate of
approx. 30%year‐on‐year
Business background
Advancements in network construction solutions which capture the changes in
needs of the work environments.
25November 2019
Investment in Relay2, Inc.
Cloud wifi X Edge ComputingOffers solutions to customers
The exclusive sale of Relay2 products in the Japanese market added edge computing solution to the product range of T‐Gaia.
Relay2Edge
app
Edge ComputingData processing done locally, edge, where it’s close to users.
Advantages・reduces costs・reduced security risks・real‐time data processing
Cloudapp
Offers Connection and terminals/handsets, construction of wifi environment
app
Internet
Network
26In March 2020
Made Infiniti Communication Co., Ltd. a subsidiary
Infiniti Communication Co., Ltd.Providing high‐quality network design and construction for many fields such as financial industry and communication industry
Subsidized on March 26, 2020
The demand for network engineering technologies is high.
27
・Smart devices・Laptop PC with SIM・TG Rental
(Terminal rental service)
・Kitting service・Enhancing security
Building ofWi‐fi environment
Communication LineManagement Service for
Corporate Clients
Help desk service
・Disposal of used handsets (Purchase)
・Terminal replacement
SubsidiarySubsidiary
SubsidiarySubsidiary
Mobile SecurityIncluding iOS
PartnerPartner
T‐GaiaT‐Gaia
T‐GaiaT‐Gaia
T‐GaiaT‐Gaia
T‐GaiaT‐Gaia
*LCM・・・Life Cycle Management
The wide range of services and products from the stages of sourcing to replacement are all available from us.
System
Engineering
Strategies of Enterprise Solution Business SegmentLCM Business Focusing on Mobile Phones and etc.
Sourcing and Proposal
Supporting Adaption
Building an Environment
Maintenance
Update
Operation
SubsidiarySubsidiary
28Strategies of Enterprise Solution Business Segment
ICT/IoT Enterprise Solutions
Developing new services together with its
subsidiaries, investees and outside partners.
29
New BusinessDomain
Supports on network
technologiesOptic fiber access service
Common customer base
Networkengineers Edge
Computing
Sales andLCM of Mobile Device
This allows to give supports on all areas of smart infrastructure of customers.
Strategies of Enterprise Solution Business Segment
New Business Domain (Edge Computing)
30
Giving supports on the introduction of telework and its environment by devices and network.
Smart devices by LCM of mobile devices
×Network
Building an environment for work‐from‐home using edge computing technologies
Regarding COVID‐19
31
The number of contracts increase as the demand for telework grows
The remote computer access software
One of the sales distributor
It allows easy access to PC on remoteIt allows remote access to PC in office via network from home or outside by using tablets and smartphones.
The secure accessAll sessions are encrypted with SSL.No data are stored on local devices, it only cast on the screen of the PC in office.
Regarding COVID‐19
32
Payment Service Business andOther Business Segment
33
47.7
▲0.16
53.0
3.29 3.03
Net Sales
Operating Profit
Net Profit
▲0.75
Financial Results of Payment Service Business and Other Business Segment
Financial Results Comparison Payment Service Business and Other Business Segment
<T‐Gaia Only>
Net Sales
Operating
Profit
Net Profit
(Billion Yen)(Billion Yen)
FY 19/3 FY 20/3FY 19/3 FY 20/3
The promotion of QUO Card Pay has been proceeding as planned. Although the increased cost has resulted in a drop in profit, the
overall results are inline with the initial plan.
43.6
0.72
1.24
49.6
1.931.64
34
FY 20/3FY 19/3
Gross Sales of PIN & Gift Card
The increase due to the start of gift card business with the major sales channel from 2Q of FY 2019
Financial Results of Payment Service Business and Other Business Segment
35
The wholesale business to Seven‐Eleven convenience
stores started from May 2019.
As more people stay home or work from home, these products had a growth in demand.
Wholesale Sale of Apple Accessories
36ICT Child Education Business
The management of ICT classes and the instructor dispatch service for kindergartens and nurseries.
37
Dispatching ITC instructors to various events to expand its business outside the education sector.
On Feb 9thAt Netz Toyota Kumamoto
On Feb 8th and 9thAt Netz Toyota Sapporo
ICT Child Education Business
38
The demand and usage are high for QUO Card (card type).
Approx. 50 million cards were issued this year
From April 1, 2020all of their stores will accept QUO Card
New Member Stores
Recent News
Amount of Issued QUO Card
FY 19/3 FY 20/3
Highest record
EC site RenewedFrom March 30, 2020Anyone can buy custom made QUO Card via itsEC site and credit cards are accepted as a payment method
*There are some exceptions
39Features of
The digital giftwhich everyone is happy to receive!
Use it a giftApps not required
No personal information required
Can be used with cash
Various designs are available,
with customized message
Just open with the browser to
use it
Does not require any registration to
use it
Could be used till very last yen* There are some
exceptions.
QUO Card brand is acknowledged by
92.3% of Japanese customers.
QUO Pay is digital version of QUO Card
Features of majority of the QR code payment
services on market
Requires dedicated
app
Needs to register personal
information
Cannot be used with cash
For own use
40
For updates and news on QUO Card Pay campaigns,please check its official website:https://www.quocard.com/pay/campaign/
Running various campaignsThe Campaign withAcecook Co., Ltd.
Maximum prize draw of QUO Pay worth 5000 yen
TV commercials have been broadcasted in
Kansai area
Recent Campaigns
41
C u r r e n t M em b e r s (As of April 30, 2020)
(守⼝本店のみ)(⼀部店舗)
(⼀部店舗を除く) (⼀部店舗を除く)
(都城 妻ヶ丘本店のみ)
(⼀部店舗を除く)(⼀部店舗)
(プラスゲオ富久⼭店のみ)
(⼀部店舗を除く)(⼀部店舗を除く)
(⼀部店舗)(⼀部店舗を除く)
(⼀部店舗を除く)
*飲⾷店 ⼀部店舗を除く
(⼀部店舗)(⼀部店舗)
(⼀部店舗を除く)
(銀座博品館TOYPARK)(⼀部店舗を除く)(⼀部店舗を除く)
(⼀部店舗)(⼀部店舗)(⼀部店舗)
(⼀部店舗)
(⼀部店舗を除く) (⼀部店舗を除く) (⼀部店舗を除く)(⼀部店舗)
Member Stores: where it can be used
Convenience Stores
Book Stores
Cafes / Restaurants
Drugstores
Lifestyle Stores
* I t s member s to re d i f f e r f rom t ha t o f QUO Card .
*●= QUO Card Pay only
42
Set up photovoltaic system for some
Docomo shops and etc.Number of cases:
Appox. 200
Renewable Energy Electric Power Business
On May 1st 2020Model‐T Inc. has changed its name to…
TGPower Inc.
43e‐Sports Business
The world’s first mobile e‐sport tournamentplatform
As more people stayed home during COVID‐19 period, the demand for online game tournaments grew worldwide.As a results, the number of tournaments rose rapidly in
Feb to April.
Planning to hold online game tournaments with car dealers, retail chains and etc.
44
The keywords are “stay‐home” and “ESG”
ESG driven
The demands for PIN and Gift Card are high
Online e‐sports tournaments
The demand for photovoltaic power is high as it is a form of renewable energy
sourced locally, consumed locally
The “Stay‐home”demand
Regarding COVID‐19
45Certified Health & Productivity Management Outstanding Organization (White 500)
Certified 2 years in a row
TG‐Support LoungeMental health careex. Training for leaders, etc.
Promote health and productivity management of employee, “physically” and “mentally”
Ex. massage therapy room, health care advice support,TG health care telephone helpline, etc.
Promote work style reformsex. Adjustable work shift hours, Teleworking and etc.
Company Philosophy TG Mission – Our MissionWe value our employees, as well as their families, and strive to establish a
pleasant work environment for everyone.
Major Activities
46
Volunteer Activities of Employees
(活動⾵景)
465instructors (as of March 2020)
●Organizations supported by T‐Gaia
And other activities are conducted
Japanese Para‐Sports Association (JPSA)
Shougaisha JiritsuSuishin KikouAssociation
The Eye Mate Inc.
🄬Japan PhilharmonicOrchestra
197sessions in a year (Total for FY2020)
●e‐Net Caravan The action to promote the safe and secure use of the internet and smartphones to students as well as guardians and teachers.
CSR
By offering seminars to children, the company is taking its social responsibility to rise the awareness to the safe and secure use of internet.
The number of certified instructors
The number of seminars done
● conducting blood donations during office hours
● cleaning activities in the area surrounding our Head Office
47Regarding COVID‐19
The adjustments started from February, by putting the safety of employees at the top priority.
Major Actions
For Employees
・Employees who had to commute to office were paid with bonus
<For employees who fall sick>・Employees who felt unwell are allowed to take unlimited period of paid sick leave
・ Trying to grasp information on employees’ poor health, guided by advices from healthcare specialist allowing employees to take sick leave without feeling hesitation, thus reducing the risk of infections to spread in office <Flexible work style>
・Telework (Target: 80% of teleworking for office workers) over 70% worked from home・Reduced work hour for commuting office workers to avoid the rush hour trains
48
35.00 37.5043.00
52.00 55.00
75.00
86.74112.68
138.11
172.62182.34
248.40226.59
75.00
Net Profit per share Dividend per share & Payout Ratio
40.3%33.3% 31.1%30.1%30.2% 30.2%
33.1%
Basic Dividend Policy Targeting & maintaining dividend payout ratio of more than 30%
Dividend per share Payout ratio
(yen) (yen)
FY 20/3FY 18/3FY16/3 FY17/3FY15/3FY14/3 FY 19/3FY 20/3FY 18/3FY16/3 FY17/3FY15/3FY14/3 FY 19/3
Return to Shareholders in FY ending March 2020
● Annual dividend: 75 yen/share (Interim: 37.5 yen/share, Yearend: 37.5 yen/share)
Dividend Policy● Return to Shareholders: Dividend Policy
49
● Trend of Financial Index
Capital Adequacy Ratio Liquidity Ratio on hand (Short‐term solvency)
32.4%41.9% 39.0%
22.8% 26.1%30.4%
FY 15/3 FY 16/3 FY 17/3 FY 18/3 FY 20/3FY 19/3
※Liquidity ratio on hand = Cash on hand / Monthly quotient (accounts receivable)Availability to cover the cost with cash on hand before collecting sales
4.6% 13.0% 16.4% 70.7%
110.3%
180.6%
FY 15/3 FY 16/3 FY 17/3 FY 18/3 FY 20/3FY 19/3
Liquidity ratio on hand is on the raise since the acquisition of QUO CARD Co., Ltd. Capital adequacy ratio remains solid.
100%
Financial Information of T‐Gaia: Part 1
50
12.7
14.315.6
14.2 14.415.3
13.7
Operating ProfitOperating Profit
26.4%29.4% 29.3% 29.7% 30.9%
33.3%
24.8%
(billion yen)
FY 15/3FY 14/3 FY 16/3 FY 17/3 FY 18/3 FY 20/3FY 19/3
It has been selected to “JPX Nikkei Index 400” for consecutive years by maintaining high level of ROE
Financial Information of T‐Gaia: Part 2
● Past Trend of ROE & Operating ProfitROE (Return on Equity)ROE (Return on Equity)
51
Year End(unit︓billion yen)
FY 15/3 FY 16/3 FY 17/3 FY 18/3 FY 19/3 FY 20/3
Net Profit 7.74 9.49 9.69 10.16 13.84 12.62
Net Worth 29.10 35.81 29.36 36.44 46.73 55.07
Equity Ratio of Net Profit (ROE)
29.4% 29.3% 29.7% 30.9% 33.3% 24.8%
Return on Investment (ROIC)
13.5% 17.3% 17.6% 20.3% 22.0% 17.9 %
Operating Profit on sales
2.2% 2.5% 2.6% 2.6% 2.9% 2.9%
Dividend on Equity ratio (DOE)
9.8% 9.1% 9.9% 9.3% 10.0% 8.2%
● The Past Trends of the Key Financial Index
Financial Information of T‐Gaia: Part 3
52
52
Appendixes
53
TG Vision – Our Vision ‐
TG Mission – Our Mission ‐
TG Action – Our Code of Conduct ‐
● We will propose new ways of communication to provide our customers with excitement, delight, and safety
● We value our employees, as well as their families, and strive to establish a pleasant work environment for everyone ● We will develop strong relationships with our business partners, regional communities and shareholders toward our future mutual growth● As a leading company in the industry, we will go ahead of changes to develop new businesses
● We will provide the highest‐quality service exceeding any of someone’s expectations
● We will value communication and establish workplace with a culture of openness
● We will value our diversity and strive to achieve the best teamwork
● We will move ourselves higher as professionals
● We always act on high ethical standards and strengthen our compliance structure
【T‐Gaia Corporate Philosophy】
● We will keep challenging something new aggressively with our passion and a sense of speed
54
The Midterm GoalsThe Midterm GoalsFrom November 2015, T‐Gaia has set a medium‐term goals to realize a sustainable growth and to respond to the expectations of all stakeholders including shareholders and employees by achieving the following objectives based on the corporate philosophy toward the FY 2020 (FY ending March 2021).
● Firmly maintain the position as the leading company in the core business of mobile phone distribution ● Grow solution business for corporate clients, settlement service and overseas business as a strong core business● Create and explore new business opportunities in the mobile and internet industries● Maintain the dividend payout ratio over 30%
In order to realize the objectives noted above, T‐Gaia is taking concrete measures every day, setting the following points as the company‐wide strategy.
● Cultivate, recruit, utilize and retain human resources to realize maximization and optimization of achievement of respective employees● Conduct strategic and continuous cost managements to transform the cost structure into one that can response to the change of the market environment● Maximize the corporate‐wide achievements by optimizing the organization as well as the corporate system
Based on the above medium‐term goals and company‐wide strategies, T‐Gaia will develop the business strategies for each business lines and make every effort to realize them through the concrete action plans in each business departments.
55Business Environment and The Strategies
The wide spread of smartphones allows people to connect to the world regardless of time. It has brought huge changes to the way people communicate, gather information and purchase.New types of businesses and services that were unimaginable in the past are now available. The market became more competitive and so as the chance of forming a new partnership.
Evaluations on the Business Environment
T‐Gaia will accelerate the speed to become “a Comprehensive Provider of ICT‐Related Domains”.The company will accelerate its investments in its digital services while making full use of its analog strengths, such as shops and sales bases across the nation, the diverse range of business models and well‐established trades.It will strive to develop new businesses and services while maintaining the existing partnership within the group.
Strategies of T‐Gaia
56
PaymentBusinessB to B to C
Mobile PhoneDistributionBusiness for Consumers
B to C
SolutionBusinessB to B
Wide variety of business models
Wide range of business
relationship
Nationwide sales channels
(for mobile distribution business)
High flexibility and neutrality (low in in‐house
products)
Financial condition kept in good valance
Corporate Group
Vision of Becoming “A Comprehensive Provider of ICT‐Related Domains”
Digitalization
Cooperation
Cooperation
The Strengths of the Corporate Group
57
FY 19/3
943 1,006 1,030 1,147
913 983
850959
1Q 2Q 3Q 4Q 1Q 2Q
FY 20/3
3Q 4Q
Unit Sales of FY 2020 (Quarterly)
Quarterly Unit Sales
(Thousand Unit)
* Including WiFi terminals and MVNO handsets
* The unit sales of FY 19/3 has been modified as UQ WIMAX has been included into the calculation. (7000 units are added.)
October 2019Revised Telecommunications Business Act are in put in force