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Elecom Group
Results of Operations for the Six
Months Ended September 30,
2010
www.elecom.co.jp
1
Contents
Corporate Profile
Consolidated Financial Results for the Six
Months Ended September 2010
FY3/11 Consolidated Financial Outlook
2
Corporate Profile
3
Elecom is a manufacturer which offers comprehensive proposals for PC,
AV, and slate (smartphone and e-book) related products.
Representative　Established
Fiscal year end
Capital
Head office
No. of employees
Stock market
Junji Hada, President
May 1986
March
707 million yen (as of March 31, 2010)
4-1-1 Fushimi-machi, Chuo-ku, Osaka
【Non-consolidated】396 (as of March 31, 2010)
【Consolidated】558 (as of March 31, 2010)
Listed on JASDAQ (code: 6750)
4
The Position of Elecom
Products which connect man and machine
A better and easy-to-use“Man-machine Interface”
5
A Foldable Bluetooth® Keyboard for Smartphone
Released Android smartphone including Xperia™ and “TK-FBP017BK”, a
Bluetooth® keyboard for a foldable compact smartphone which supports
iPhone 4 and iPad and Windows PC
6
Spread of Business Domains
Smartphone-related
Game console-related
e-book related
IP phone-related
1 seg-related
To a new domain
Slate
PC-related
Full seg-related
New domain
Memory
Furniture
Storage
Wireless
LAN-related
Smartphone
Slate PC
In-car
device-related
Music distribution
terminal-related
Network
Digital camera-related
Conventional
business
Accessory
IO device
Supply
7
BCN Award Segment
“BCN Award 2010”
Won 8 titles including mouse category
that won the award for 10 consecutive years!
*Figures represent POS data (Jan. – Dec. 2009) calculated by BCN Inc.
エレコム
24.8%
その他
27.4%
エレコム
22.7%
その他
40.3%
エレコム
40.2%
Ａ社
19.0%
その他
44.6%
Ａ社
19.1%
Ｂ社
13.6%
Ｂ社
15.9%
Ａ社
18.8%
エレコム
17.6%
Ｂ社
13.6%
その他
20.8%
その他
14.7%
エレコム
40.3%
Ａ社
12.4%
その他
58.2%
エレコム
34.9%
Ｂ社
19.3%
Ｂ社
19.1%
Ｂ社
11.8%
Ａ社
19.8%
エレコム
23.3%
その他
59.5%
Ａ社
9.5%
Ｂ社
7.7%
Ａ社
31.1%
その他
16.7%
エレコム
28.7%
Ｂ社
27.3%
Ａ社
27.3%
“BCN award” is an award which honors a
vendor who ranked first in annual sales
volume (Jan. – Dec.) of PC-related and
digital appliance-related products based
on “BCN ranking” that was gathered and
calculated by BCN using POS data of
retailers in Japan.
8
Corporate Philosophy
The Elecom Group is dedicated to continuous
growth.
We constantly take on the challenge of
capitalizing on new opportunities and
entering new fields. Every employee
overcomes challenges with sincerity, humility
and boundless enthusiasm. Learning from
one another, working hard and always
welcoming new challenges are the sources of
growth for the company and individuals alike.
Sustaining growth of the ELECOM Group
makes it possible to create products that
offer greater enjoyment, comfort and
innovation. We use these products to be a
source of happiness for even more
customers. We also want our employees to
have a sense of direct participation in our
growth so they can expand their knowledge
and lead more fulfilling lives. These are the
goals that define the Elecom Group.
Code of Conduct
Seek the path of righteousness
Always asking yourself if you are taking the
correct actions while refocusing your energy
on the fundamental principles for behavior.
Live the right way as a human being.
Think about results
To reach for even greater accomplishments,
establish your priorities so you can take
actions efficiently.
Think about others
Always be aware of the situations of other
people and be considerate.
Be humble
Be humble and never boast or look down on
others.
9
History of Numerous G-Mark Awards
1989
1990
1993
1994
1996
1998
2003
2007
2001
2000
2004
2008
2009
1997
2002
2006
2005
2010
10
Offices
Elecom
Elecom Group
Group Domestic
Domestic Offices
Offices
Elecom main/branch offices
Logistics center
Osaka head office
Higashinihon logistics center (Tokyo & Aomi)
Tokyo branch
Nishinihon logistics center
Kitanihon branch
(Osaka & Nishi-yodogawa)
Nagoya branch
Customer support center
Osaka branch
Sapporo ESSC
Hiroshima branch
Logitec offices
Fukuoka branch
Tokyo head office
Elecom sales offices
Nagano sales office
Tachikawa sales office
Saitama sales office
Yokohama sales office
Sapporo sales office
Takasaki sales office
Kanazawa sales office
Overseas offices
Kyoto sales office
Korea
Okayama sales office
China
Kumamoto sales office
Germany (ednet)
(As of end of March 2010)
11
Consolidated subsidiary (Japan)
■ Logitec Corp.
Consolidated subsidiaries (overseas)
■ ednet GmbH
branch office
Belgium, Austria
Sales subsidiaries
ednet AG (Switzerland)
ednet Nederland B.V.
(The Netherlands)
Procurement subsidiary
ednet HK Limited (Hong Kong)
■ ELECOM KOREA CO., LTD. (Korea)
■ ELECOM (SHANGHAI) TRADE CO.,LTD. (China)
12
Logitec is a manufacturer of PC, network and AV-related devices.
Elecom Group’s growth will accelerate by “shifting” and “expanding” its
business domain.
Name Logitec Corporation
Established June 1982
Capital 200 million yen
Head office 2-6-3 Hitotsubashi, Chiyoda-ku, Tokyo
No. of employees 94 (as of March 31, 2010)
Office Nagano office (Nagano)
13
ednet GmbH is a manufacturer of PC peripheral products and supplies in Europe.
Advanced into Germany, the Netherlands, Switzerland, Austria and Belgium.
Name　ednet GmbH
Established　May 9, 2000
Head office　Germany
Major offices Brunn am Gebirge,Austria
Bousval,Belgium
Consolidated subsidiaries
ednet AG (Switzerland)
ednet Nederland B.V.
(The Netherlands)
ednet （HK）Limited
14
Exclusive　Distributorship　Agreement
15
LaCie
Head office
S.A.
33/41 boulevard du General Martial
Valin 75015 Paris,France
Established
March 1, 1989
Capital
3,603 thousand euro
Representative
Philippe Spruch, Chairman & CEO
Business
Manufacture and sale of computer
peripheral equipment
Sales
301 million euro (FY6/09)
◆There are more than 30 million users worldwide and became one of the
world’s top 3 brands
◆ Became No.1 as a European vendor
◆Recognized as a brand that is most selected by music and various other creators
◆ Has LaCie’s own hardware and software engineers and all products are
developed and designed at a design center in Paris
16
Background①
of Exclusive Distributorship Agreement
■ Empathy for design value-added
17
Background②
of Exclusive Distributorship Agreement
■ Supplement of strengths and weaknesses (Products)
・World’s leader in the HDD and
NAS fields
(product lineup, price advantage)
・From a strategic standpoint,
want to strengthen HDD and
NAS even more
・Want to strengthen accessory
business in the future to improve
profitability
・Has a large selection of
accessories and skills in
planning and development
Storage products Accessories Other peripherals
97％ 2％ 1％ LaCie’s sales ratio 18
Background③
of Exclusive Distributorship Agreement
■ Supplement of strengths and weaknesses (trading areas)
Europe
+ Middle East
Asia
Oceania
60％
8％
・LaCie is strong mainly in France
・Elecom’s German company
North and
South
America
32％
・LaCie Japan’s sales ratio is 2%
・Elecom has one of the best
marketing skills in the industry
19
Summary of Business Model
Elecom proposes and offers numerous products to users by utilizing Elecom’s
strong IT infrastructure, logistics infrastructure and sales channel.
【
【
Group’s strong assets
(electronics retail
stores, etc.)
Companies
(agencies, etc.)
Direct marketing
(catalog, Internet, etc.)
Customers
Development
Developmentand
andproduction
production
of
storage,
AV
devices,
of storage, AV devices,
network-related,
network-related,etc.
etc.
Elecom
Elecom
】
】
Marketing Division
Division
Marketing
Factoriesof
ofpartner
partnercompanies
companies
Factories
inJapan
Japan&&overseas
overseas
in
Development
Developmentof
ofproducts
products
Including
PC
supplies,
Including PC supplies,
furniture,
furniture,memories,
memories,
IO
IOdevices
devicesand
andAV
AVproducts
products
Retailers
Overseas
(overseas
subsidiaries, etc.)
Sales channel
Logistics infrastructure
IT infrastructure
20
Growth Strategy Image
Expansion of
market share
in Japan
Advance into
new product field
Four
Four growth
growth
factors
factors
Expansion of
overseas business
M&As
21
To New Business Domain
Various PCrelated products
MicroSD card
Headphones
Smartphone
protection film
FM transmitter
Smartphone case
Smartphone
charger
Bluetooth products
22
Expansion of Sales Area Prioritized Category
Smartphone accessories
Smartphone　⇒　Focus on retailers and companies
The entire smartphone market trend
■ No.of
contracts(Total)
■ No.of
shipments(Total)
ten
thousand
Game market
Recommended products of “Final Fantasy XIV”
23
Expansion of Sales Area Prioritized Category
Bluetooth products
Industry’s smallest canal type for
both ears (microphone installed)
Bluetooth stereo earphones
LBT-HP04 series
Neckband-type suitable for sports
(microphone installed)
Bluetooth headset
LBT-AVNB01A series
24
Expansion of Sales Area Prioritized Category
Network products
25
Expansion of Sales Channel① Creation of Demands
Challenge new products using new sale channel
LA MAISON DE MÉMOIRE
Digital photo frame
AN ECOL
Charged batteries for women
(Good Design Award product)
26
Expansion of Sales Channel② Enhancement of Products for Women
BMCA26 series
BMCAs7 series
27
Expansion of Overseas Operation① Operation in Asia
Now rapidly expanding in South East Asia
Expanding sales of Elecom products in various South East Asian
countries including Thailand, Indonesia, The Philippines, Vietnam,
Malaysia and Singapore.
①Operation of ELECOM’s booth/section
Major retail stores of Thailand and Indonesia
②ELECOM STORE OPEN
Plan to open in Singapore
③New Asian business
Plan to operate mainly in China, Malaysia,
Hong Kong and Taiwan
28
Example of Operation in Asia【1】
PC/IT retailer in Thailand (2010)
29
Example of Operation in Asia【2】
PC/IT retailer in Philippines (2009)
30
Example of Operation in Asia【3】
Apple Reseller in Bangkok (2009)
Lifestyle shop in HKG (2010)
31
Expansion of Overseas Operation② Operation in Europe
Cooperation with ednet
Expand sales in Russia
and Eastern Europe
March 3, 2009
Participated in the overseas exhibition
and raised the recognition of Elecom
brand in the world
32
Expansion of Overseas Operation② Operation in Europe
Cooperation with ednet
Strengthened development
of products for Europe
・Development of overseas packages
・Enhancement of foreign-language
instruction manual
Strengthened overseas marketing
capability (proposal capability)
・Taught Japanese marketing method
・Introduced Elecoism
(Temporarily transferred from
Japan to Europe)
33
Expansion of Overseas Operation③
New Challenge～Inquiries in the U.S.～
August 2010 Started business with ＭｏＭＡ
Favorable sales!!
Now selling Elecom products via the Internet, catalogs and in stores
34
Capital and Business Alliance with IDEA International Co., Ltd.
As part of attracting new customers,
Elecom expanded its business with
a partner company that handles
IDEA’s directly-operated
stores and fashionable goods
Private placement
Convertible bonds
with stock warrants
Expand
Expandsales
salesopportunities
opportunitiesin
inmutual
mutualbusiness
businesssectors
sectorsand
andbuild
build
an
even
closer
relationship
such
as
by
capturing
synergies
through
an even closer relationship such as by capturing synergies throughdesign.
design.
To develop Asian market, expands
business with Elecom Group and agencies
35
Elecom’s Social Action Program
Environmental efforts
“ELECOM FOREST～Development of
Elecom Forest”
Co-exists with regional society
Supports American Football Team
“Elecom Kobe FINIES”
Elecom signed the “ELECOM FOREST Mie Forest
Development Declaration” with Mie Afforestation
Promotion Society and Mie Prefecture declaring that we
will jointly work on revitalizing natural forests.
As a first step, we started the natural forest revitalization
business targeting about 18 hectares of deforested area in
Sone-ku, Owase-shi, Mie with the help of local forest
cooperatives OWASE, ECOLO Association and residents
of Owase-shi.
From April 2009, as part of a community-based social
contribution, Elecom became the official sponsor of
the Japan American football league west division
“Elecom Kobe Finies.”
The team continues its activities based on the idea of
“the spread of American football and regional
contribution.” The team interacts with people and
children in the community such as by playing matches
seeking to appear in “Rice Bowl”, holding events to
thank fans and holding sports festivals.
36
Building of Trusting Relationship with Stakeholders
■ Carried out compliance and accountability and built a relationship of trust
with stakeholders
■ Built an internal control system to promote a strong management base
･
･
Strong relations of
trust
Strong relations of trust
･
･
Strongrelations
relationsof
oftrust
trust
Strong
Strong relations of trust
Strong relations of
trust
Manufacturingcontractor
contractor purchaser
purchaser
Manufacturing
Investors
Investors stakeholders
stakeholders
Financial
FinancialServices
ServicesAgency
Agency stock
stockexchange
exchange
37
･
･
Consolidated Financial Results
for the Six Months Ended September 2010
38
Consolidated Financial Highlights for the Six Months
Ended September 2010
„
Succeeded in further strengthening sales strategy according to the characteristics
of sales channel such as by introducing broad range of new products, promoting
the efficiency of marketing activities and reviewing organization system. As a
result, both net sales and ordinary income increased YoY.
Net sales　¥23,371 million(YoY change:＋7.2％)
Ordinary income ¥ 1,858 million(YoY change: ＋92.5 ％)
【Consolidated net sales】
6 months period
Full year
48,438
40,000
20,000
0
23,371
2Q
10,842
2Q
11,360
1Q
10,964
1Q
12,010
FY3/10
6 months period
53,000
(Plan)
60,000
21,807
【Consolidated ordinary income】
2H
(plan)
28,406
1H
(plan
24,594
FY3/11 (FY plan)
Full year
4,000(Plan)
3,591
4,000
2H
(plan)
2,374
3,000
1,858
2,000
965
1,000
0
2Q
497
1Q
467
FY3/10
2Q
747
1H
(plan)
1Q
1,111 1,626
FY3/11 (FY plan)
39
Summary of Consolidated Financial Results for the
Six Months Ended September 2010
【YoY】
(Million yen, %)
Six months ended Sept.
2010
１Ｑ
Net sales
２Ｑ
Six
months
ended
Sept.
Change
FY plan
％
Amount
12,010
11,360
23,371
21,807
1,563
7.2
53,000
Gross profit
4,396
3,819
8,215
7,442
772
10.4
17,659
SG&A expenses
3,202
2,994
6,197
6,319
-1.9
13,259
Operating income
1,193
824
2,017
1,123
894
79.6
4,400
Ordinary income
1,111
747
1,858
965
893
92.5
4,000
Ordinary income
margin (%)
9.3
6.6
8.0
4.4
-
-
7.5
Net income
478
357
836
-847
1,683
-
1,980
-122
(Note) Amounts are rounded down to the nearest million yen
40
Results by Product Category for the Six Months
Ended September 2010 (YoY)
【YoY】
(Million yen, %)
Six months ended Sept. 2010
１Ｑ
２Ｑ
Six months
ended Sept.
2009
Supplies
3,945
3,820
7,766
7,554
(33.2)
(34.6)
Storage and
memory
1,634
1,658
3,293
2,979
(14.1)
(13.7)
IO devices
1,728
1,522
3,250
3,472
(13.9)
(15.9)
Digital home
3,125
2,911
6,036
4,966
(25.8)
(22.8)
Others
1,576
1,447
3,023
2,834
(13.0)
(13.0)
12,010 11,360
23,371
21,807
(100.0)
(100.0)
Total sales
Change
Amount
FY plan
％
211
2.8
16,609
(31.3)
314
10.5
7,162
(13.5)
-221
-6.4
7,231
(13.7)
1,070
21.6
15,385
(29.0)
189
6.7
6,610
(12.5)
1,563
7.2
53,000
(100.0)
(Note) Amounts are rounded down to the nearest million yen
(Note) Supply products were included in the PC supplies and furniture category in previous fiscal years but are now reported as the supply category for two reasons. First, due to a
sharp decline in sales of PC furniture, these sales have only a negligible effect on total sales. Second, sales of non-PC products such as products for digital cameras and cell phones
are accounting for an increasing share of supply sales, too.
(Note) Digital home products are audio-visual and network products that were included in the others category in previous fiscal years. These products are reported separately as the
digital home category starting in the first quarter of the current fiscal year.
41
Sales Analysis for the Six Months Ended September
2010 (YoY)
①Supply sales increased (smartphone-
⑤
related products were favorable)　Up ¥211 million YoY
Up
Up¥1,563
¥1,563
million
million yen
yen YoY
YoY
②Storage and memory sales increased
④
②
①
(LaCie brand’s storage products, etc. were
favorable)　Up ¥314 million YoY
③
③IO device sales decreased(affected by
Sales of
¥23,371
million yen
in 2Q
severe competition in the mouse sector)　Down ¥221 million YoY
④Digital home sales increased
Sales of
¥21,807
million
yen YoY
(introduction of new AV-related products and
network products were favorable)
Up ¥1,070 million YoY
⑤Other sales increased (strong due to
recovery in corporate demand)　Up ¥189 million YoY
(Note) Supply products were included in the PC supplies and furniture category in previous fiscal years but are now reported as the supply category for two reasons. First, due to a
sharp decline in sales of PC furniture, these sales have only a negligible effect on total sales. Second, sales of non-PC products such as products for digital cameras and cell phones
are accounting for an increasing share of supply sales, too.
(Note) Digital home products are audio-visual and network products that were included in the others category in previous fiscal years. These products are reported separately as the
digital home category starting in the first quarter of the current fiscal year.
42
Ordinary Income Analysis for the Six Months Ended
September 2010 (YoY)
Up
Up¥893
¥893
million
million YoY
YoY
①Increase in gross profit
Ordinary
income
of ¥1,858
million
in 2Q
Ordinary
income
of ¥965
million
YoY
(due mainly to increase in sales) Up ¥772 million YoY
②Decrease in SG&A expenses
(due to decrease in system-related
expenses, etc.) Down ¥122 million YoY
43
Effect of Profits and Losses of Subsidiaries for the Six
Months Ended September 2010
Down
Down
¥463
¥463million
million
①Effect of Logitec up ¥119 million
Steady increase vs. budget
②Effect of overseas subsidiaries
Nonconsolidated
Ordinary
income
¥2,322 million
down ¥187 million
Consolidated
ordinary
income
¥1,858
million
Increase in ednet’s sales-related
expenses
③Others down ¥395 million Decrease in dividends received by
Elecom (due to elimination of dividends
received from subsidiaries)
44
Results by Region for the Six Months Ended
September 2010 (Reference)
【 Europe 】
Net sales: 959
Ordinary income: -181
【 Japan 】
Net sales: 25,083
Ordinary income: 2,414
E urope
3.6%
Others
1.0%
Sales ratio by
region (FFY9/10)
【 Others 】
Net sales: 259
Ordinary income: -7
(Note) Unit: million yen
(Note) Total figures do not match with consolidated figures because the figures are before
elimination of internal transactions.
J a pa n
95.4%
Japan
Europe
Others
45
2Q Balance Sheet
■Decrease in accounts
receivable
(down ¥765 million)
■Decrease in inventories
(down ¥1,381 million)
Assets
¥18,639 million
Liabilities
¥10,121 million
■Decrease in accounts
payable
(down ¥1,364 million)
【Current liabilities】 9,345
(Major breakdown)
【FY6/10】
(Million yen)
【Current assets】 15,947
Accounts payable　4,813
Short-term debt　500
(Major breakdown)
Cash and deposits　4,301
Accounts receivable 5,776
Inventories 4,462
(Million yen)
【Fixed assets】 776
(Million yen)
Liabilities　11,216
【Fixed assets】 2,691
Current liabilities　10,450
Assets　19,849
Current assets　17,671
Fixed assets2,178
【FY6/10】
(Million yen)
Assets
¥8,517 million
Fixed liabilities　766
Assets　8,632
Shareholders’
equity ratio　45.3%
Shareholders’
equity ratio　43.1%
46
Cash Flow for the Six Months Ended September 2010
【Summary of cash flow】
(Million yen)
Six months ended Sept. 2010
Cash flows from
operating activities
Cash flows from
investing activities
Cash flows from
financing activities
Cash and cash equivalents
at end of the term
2Q
-1,248
1,313
65
-90
-734
-825
-229
-595
-758
-184
-943
104
-1,048
3,950
4,301
4,301
5,304
-1,002
1Q
2Q
Tangible fixed assets
51
128
179
Intangible fixed assets
91
134
143
262
226
406
91
91
198
243
R&D expenses
-51
Factor
117
Private placement, bond underwriting
by IDEA International
Decrease in ednet’s debt (change in
loans between the parent company and
subsidiary)
(Million yen)
Six months ended Sept. 2010
Depreciation (total)
Change
1Q
【Capital investments, etc.】
Total capital investment
Six months
ended Sept.
2009
Six months
ended Sept.
2009
Change
19
160
102
124
262
143
182
196
-13
442
366
75
(Note) Amounts are
rounded down to the
nearest million yen
47
FY3/11
Consolidated Financial Outlook
48
Highlights of FY3/11 Consolidated Financial Outlook
„
Forecast increases in both net sales and ordinary income YoY
Net sales
2009/03
¥49,312
million
2011/03
Up ¥4,561
million
2010/03 (up 9.4%)
Down
¥874 million ¥48,438
(down 1.8%)
Ordinary income
2011/03
¥4,000
¥53,000
million
(plan)
Up ¥1,013
million
(up 39.3%)
million
2010/03
Up ¥408
million million
(up 11.4%)
(plan)
¥ 3,591
million
2009/03
4Q
11,771
4Q
13,495
2Ｈ
24,981
3Q
13,210
2Ｈ
29,628
（※）
2Ｈ
26,631
¥2,577
4Q
million
1,299
4Q
179
3Q
13,136
3Q
2Ｈ
2,141
（※）
2Ｈ
2,625
2Ｈ
1,054
875
3Q
1,326
2Q
11,600
2Q
10,842
１Ｈ
24,330
1Q
12,730
413
１Ｈ
23,371
１Ｈ
21,807
１Ｈ
1,522
1Q
1Q
10,964
1Q
12,010
2Q
747
2Q
2Q
11,360
１Ｈ
1,858
2Q
497
1,109
１Ｈ
965
1Q
1,111
1Q
467
(*) Amount deducting 1H actual from FY plan
49
FY3/11 Consolidated Financial Outlook
(Million yen, %)
FY3/11
Plan
Net sales
FY3/10
Share
Actual
YoY
Share
Change
Pct.
Change
53,000
100.0
48,438
100.0
4,561
9.4
Gross profit
17,659
33.3
16,857
34.8
801
4.8
SG&A expenses
13,259
25.0
12,856
26.5
403
3.1
Operating income
4,400
8.3
4,002
8.3
397
9.9
Ordinary income
4,000
7.5
3,591
7.4
408
11.4
Net income
1,980
3.7
735
1.5
1,244
169.3
(Note) Amounts are rounded down to the nearest million yen
50
FY3/11 Sales Plan by Product Category
(Million yen, %)
FY3/11
Plan
FY3/10
Share
Actual
YoY
Share
Change
Pct.
Change
Supplies
16,609
31.3
16,692
34.5
-83
-0.5
Storage and
memory
7,162
13.5
6,503
13.4
658
10.1
IO devices
7,231
13.7
7,211
14.9
19
0.3
Digital home
15,385
29.0
11,711
24.2
3,674
31.4
Others
6,610
12.5
6,318
13.0
292
4.6
Total sales
53,000
100.0
48,438
100.0
4,561
9.4
Total cost of sales
35,340
66.7
31,580
65.2
3,760
11.9
Gross profit
17,659
33.3
16,857
34.8
801
4.8
(Note) Amounts are rounded down to the nearest million yen
(Note) Supply products were included in the PC supplies and furniture category in previous fiscal years but are now reported as the supply category for two reasons.
First, due to a sharp decline in sales of PC furniture, these sales have only a negligible effect on total sales. Second, sales of non-PC products such as products for
digital cameras and cell phones are accounting for an increasing share of supply sales, too.
(Note) Digital home products are audio-visual and network products that were included in the others category in previous fiscal years. These products are reported
51
separately as the digital home category starting in the first quarter of the current fiscal year.
Recent Disclosure Information
■　Notice Concerning Signing of Basic Agreement Related to Capital and Business
Alliance (Aug. 25, 2010)
Elecom and IDEA International Co., Ltd. (“IDEA”) resolved to sign a basic agreement related to capital and business
alliance stating the cooperation of both companies using mutual management resources.
Elecom has a business relationship with IDEA. Elecom is expanding its business with partner companies that
handle IDEA’s directly-operated stores and fashionable goods as part of attracting new customers. IDEA has been
expanding its business with Elecom group companies and agencies to develop Asian market.
Regarding the capital and business alliance, Elecom and IDEA reached a basic agreement in principle considering
that it is possible to contribute to the companies’ performance such as by building an even closer relationship
between both companies and expand sales opportunities in mutual business fields.
①Summary of private placement by IDEA
(1) Shares issued
146,500 shares of common stock
②Summary of IDEA’s convertible bonds with stock acquisition
rights
(2) Issue price
¥683 per share
(1) Type and no. of bonds Convertible bonds with stock acquisition rights 40 rights
(3) Total issue price
¥100,059,500
(4) Amount credited in stated capital
(2) Name of bond
¥50,029,750
(5) Amount credited in stated capital reserve
¥50,029,750
IDEA International Co., Ltd.
Convertible Bonds with Stock Acquisition Rights
(3) Issue date
September 30, 2010
(4) Issue price
¥10,000,000
(6) Allotee
Elecom Co., Ltd.
(5) Total issue price ¥400,000,000
(7) Payment date
September 30, 2010
(6) Exercise price
[Current] ¥683 per share
(Conversion price)
[Minimum] ¥479 per share
[Maximum] ¥888 per share
(7) Total exercise price (conversion price)
(8) No. of potential shares
¥400,000,000
[Current exercise price (conversion price)] 585,651 shares
[Minimum exercise price (conversion price)] 835,073 shares
[Maximum exercise price (conversion price)] 450,450 shares
(9) Depreciation period
September 30, 2010
(10) Amount of depreciation ¥103 for each ¥100 of face value
(11) Interest rate No interest will be paid
52
Recent Disclosure Information
■　Notice of Establishment of Subsidiary by Elecom Consolidated Subsidiary
(Sept. 27, 2010)
Elecom consolidated subsidiary Logitec Corporation resolved as follows to establish a wholly owned
subsidiary as part of reviewing Elecom Group’s domestic business operation system.
Summary of new subsidiary
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
Name
Logitec INA Solutions Corporation
Head office
8268-1000 Misuzu, Ina-shi, Nagano Prefecture
Name & title of representative Junji Hada, President and CEO
Major businesses
Development, manufacturing and sale of PC and storage products, maintenance and
repairing of PC-related products, data recovery service
Established
October 1, 2010
Capital
¥100 million
Capital reserve
¥100 million
Major shareholder and shareholding ratio Logitec Corp. 100%
Fiscal year end
March 31
(Reference) Summary of Elecom subsidiary Logitec Corp.
①Name
Logitec Corporation
②Head office
2-6-3 Hitotsubashi, Chiyoda-ku, Tokyo
③Name & title of representative
Junji Hada, President and CEO
④Major businesses
Research and development and manufacture and sale of personal computers,
peripheral devices, information and telecommunications-related products, etc.
⑤Capital
¥200 million
⑥Major shareholder and shareholding ratio Elecom 100%
53
Recent Disclosure Information
■　Notice Concerning Dividend Payment from Retained Earnings
(Nov. 12, 2010)
Elecom resolved to pay dividends from retained earnings of record date of September 30, 2010 as follows.
Amount
Record date
Dividend per share
Total amount of
dividend
Effective date
Source of dividend
Recent dividend forecast
(Announced on May 14, 2010)
Previous results
(Sept. 2009 dividend)
September 30, 2010
¥10.00
Same as on the left
¥7.00
September 30, 2009
¥7.00
￥ 199 million
－
￥170 million
December 10, 2010
Retained earnings
－
－
December 11, 2009
Retained earnings
As a result of taking last year’s management environment, higher-than-expected 2Q net income
(consolidated) and other factors into consideration, Elecom will pay ¥10 per share for the 2Q ended
September 2010, ¥3 higher than the initial forecast.
Year-end dividend forecast will be decided after evaluating our future performance and currently there will
be no change. As a result of this, forecast of annual dividend per share will be ¥18.
(Reference) Annual dividend forecast
Dividend per share
Record date
Dividend forecasts
Current results
Previous results (FY3/10)
End of 2Q
Year-end
\10.00
\7.00
Annual
\8.00
\18.00
\8.00
\15.00
(Note) Dividend forecasts are based on information available at the time this report was prepared. Actual results may differ from
the above forecasts due to various factors.
54
Recent Disclosure Information
■　Notice Concerning Restructuring of Consolidated Subsidiary Mainly in
Europe and Capital Increase by Consolidated Subsidiary (Nov. 12, 2010)
Elecom resolved the restructuring of its consolidated subsidiaries mainly in Europe and also
resolved to underwrite capital increase which will be conducted by one of the subsidiaries.
1. Restructuring of consolidated subsidiaries
Elecom will strengthen ednet Group’s financial base
while restructuring ednet group companies to raise
management efficiency and transparency, and conduct
quick decision-making. In addition, Elecom will work on
building a close relationship with ednet Group and foster
a sense of unity aiming to improve the entire Elecom
Group’s corporate value.
Summary of companies to be restructured (ednet group companie
Name
ednet GmbH
ednet AG
ednet Nederland
B.V.
ednet(HK)Limited Head office
Representative
Martin Bongard
(Managing Director)
Markus Rothweiler
Wetzikon,
Switzerland
(Managing Director)
Jan Theuwis
Breda, The
Netherlands
(Managing Director)
Yasuhiro Sonobe
Hong Kong, China
(Managing Director)
Sulzbach,
Germany
2. Capital increase by consolidated subsidiary
Summary of capital increase
①Capital increase 8,000,000 euro
(about ¥912 million)
②Allotee
Elecom 100%
③Payment date
November 29, 2010
Summary of consolidated subsidiary
①Name
ednet GmbH
②Location
Oberliederbacher Weg 36, Sulzbach/Ts. Germany
③Name of representative
Martin Bongard
④Major business
Planning and sale of PC and digital device-related products
⑤Established
May 9, 2000
⑥Capital
1,000,000 euro (about ¥114 million)
⑦Elecom investment ratio 100% (100% after capital increase)
⑧Fiscal year end
December 31
55
Caution
This presentation was prepared to obtain the understanding of Elecom. This
is not a solicitation to make an investment in the Company.
This presentation has been carefully prepared but the Company makes no
guarantees that these statements are accurate. The Company is not
responsible for any damage or loss caused in connection with use of
information in this presentation.
Forecasts and other forward-looking statements in this presentation is
based on judgments made in accordance with information available at the
time this material was prepared. Forecasts therefore embody risks and
uncertainties. For this reason, please note that actual results may differ from
the forecasts due to change in operating environment and other factors.
Contact
Financial Planning Office, Elecom Co., Ltd.
Investor Relations
TEL:+81-6-6229-2707
E‐mail：[email protected]
56