MCJ Corporate Profile
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Corporate introduction and financial overview

MCJ Co., Ltd.
16/03/2017
Investor Conference at Singapore

Copyright(C) 2017 MCJ Co.,Ltd. All rights reserved.

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Disclaimer
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This presentation may contain forward-looking statements which are inherently difficult to predict, hence actual result could differ materially for avariety of reasons, both positive and negative, including but not limited to such factors as change in economic conditions, customer spending andfluctuations in foreign exchange rate and so on.
In making these statements, we rely on assumptions and analyses based on our experience and perception of historical trends, current conditions
and expected future developments as well as other factors we consider appropriate under the circumstances. We believe these judgments arereasonable, but these statements are not guarantees of any events or financial results.
Hence, we caution readers not to place undue reliance on forward-looking statements.
We undertake no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future
events or other factors that affect the subject of these statements, except where we are expressly required to do so by law.

Copyright(C) 2017 MCJ Co.,Ltd. All rights reserved.

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Table of Contents
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I.

Overview of MCJ Group▪
Overview of MCJ Group▪
Our history▪
Financial results▪
What makes us special?

II.

Group Companies▪
Growth Strategy of each existing group company▪
mouse computer▪
Unitcom▪
Tekwind▪
iiyama▪
aprecioIII.

Future Strategy▪
Overview of Long-term Vision▪
Mid-term Management PlanIV.

Financial Indicators▪
Significant KPIs for management▪
Return to shareholders: Dividend

V.

Conclusions

Copyright(C) 2017 MCJ Co.,Ltd. All rights reserved.

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Overview of MCJ Group (1/2
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Establish# of Employees

Aug, 1998

PC related businessJ

Annual Turnover

Over 100billion JPY

1,136*1

Business Domain

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Three consecutive years since FY2014.3

Group Companies
Comprehensive
entertainment business

12 in total（consolidated
subsidiaries）

Market Cap

Bourse58.3billion JPY*2* 1,2) figures above are at the end of Dec 2016

Tokyo
Stock Exchange
2nd section

Mouse Computer
UnitcomTekwindiiyamaaprecio etc..

Trading Unit

100
stocksTicker code: 6670
Copyright(C) 2017 MCJ Co.,Ltd. All rights reserved.

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Overview of MCJ Group (2/2
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MCJ, the TSE-listed public company, designs, manufactures, and markets PCs andperipherals, and other IT gadgets. Currently has operation base in Japan and Europe.
Major consolidated subsidiaries

Corporate Overview»

MCJ Co. Ltd»

Holding company, listed on Tokyo Stock
Exchange, with 12 consolidated-subsidiaries.

»»»

BTO PC maker with multiple sales channels,
including EC website and corporate channel.
Technology-core of the Group.

Initially established as Mouse Computer andquickly evolved into a company with uniquebusiness model encompassing manufacturing,retail and distribution operations.

»

IT-product retail and service chain with morethan 70 stores across Japan.

»

Annual sales over USD 1billion, operating profit
over USD 70 million*1»»

Total Asset: approx. USD 500 million*2

Import and distribute business of IT products tocorporate customers and retailors. Strong
connection with MS, Intel, ASUS and others.

»

Location of headquarters: Tokyo, Nihonbashi»# of employees: around 1,100*3»

High-end monitor, located and operate inEurope.

*1-3) above mentioned figures are estimated fig for FY2017.3 and assumed exchange rate is USD1=JPY100

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Our history
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Overview of our history, from 1998 to now

Established as
Mouse Computer
Japan

First dividend payout

IPO to TSE
MOTHERS section

Listed on TSE 2nd
sectionBecame holding
structure

Conducted aseries of
M&As

Mouse computer has
established through newly
established company split

Announced midterm strategy plan
first time ascompany

Focusing on
achieving mid- tolong-term plan

Sales over 100billion
JPY

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Financial results overview up to 3Q of FY2017.3
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Despite the weak market trend and large scale marketing expenditure, record profit
was achieved as a result of strong demand for our products（in JPY millions）

FY2016.3
3Q
Fig

FY2017.3
3Q% to sales

Fig

Y on Y
Change% to sales

Fig

%

sales

74,740100.0%

78,034100.0%

3,293

4.4%

CGS

59,297

79.3%

59,585

76.4%

288

0.5%

Gross Marin

15,44320.7%

18,448

23.6%

3,004

19.5%

SG&A

11,480

15.4%

12,574

16.1%

1,093

9.5%

Operating Profit

3,962

5.3%

5,874

7.5%

1,911

48.2%

Profit before tax

3,482

4.7%

5,732

7.3%

2,249

64.6%

Net Income

2,287

3.1%

4,108

5.3%

1,820

79.6%

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Expecting the highest record sale and profit
Progressing smoothly towards accomplishing the upward revised plan
which was announced at the end of October 2016
（in JPY millions)

FY2013.3

FY2014.3

FY2015.3

FY2016.3

FY2017.3(forecast)sales

85,866

104,003102,889

103,288

105,288

Operating Profit

1,808

4,061

5,068

5,167

7,021

Net Income

1,054

1,812

2,627

3,087

4,914

(In JPY millions)(In JPY millions)

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What makes us Special?
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Primarily focusing on niche and core market of professionals and semi-professionals.
» Not directly competing with existing PC makers» Appropriate way to do business in matured market and in terms of prospective future
marketBelow characteristics enable us to differentiate ourselves and put us in a position tocapitalise on specific but lucrative niche market.
 “Balance”

 “Innovative Products”• Balance: price, product spec,
after sales support and etc.
• Price: competitive• Product Spec: high-end• Product quality: Japan-made• Support: same as domestic“national makers”• 24/7 call centre, and in-house
repair centre• …

• Personalized product to eachunique user.
• Strong in high-spec Gaming
and Creator-PCs.
• Strength both in productdevelopment and time-tomarket launch : many of our
products are “first time inJapan”-kind.
• …

 “Operational Excellence”• BTO model: focusing on
customers with IT literacy,
know their needs.
• Provide tailor-made PCs toeach electric retailers• Low cost operation• Excellent marketing• Quick launch of new products• …

Multiple factors bound together creates our uniqueness; competitive advantage

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The trend of PC sales volume in Japan and by the Group
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We continued to outperform market trend, as mass marketing contributed
significantly, in addition to demand increase from niche markett
Historical trend in the number of PCs sold, domestic market※ Chart above indicates increase in the number of PCs sold in certain quarter period compared to same period in previous fiscal year
Copyright(C) 2017 MCJ Co.,Ltd. All rights reserved.

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Our products (1/2
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»

Build to Order (BTO) PC enable us to caterto the unique needs of each user, withcompetitive price.

»»»

Well recognized Gaming PC brand in Japan.
Strong focus on VR-ready PCs.
Our G-turn store in Akihabara is “The place”
for attracting and launching new onlinegames and devices in Japan.
Strong ties with major game-developers.

BTO PCs

Gaming PCs»

Stick PCs

Windowssmartphones andTablets

Monitors»»

First to launch this type of product in Japan.
Stick PC has received “most sophisticatedproduct award” by Nikkei in 2015.

»

First to launch SIM-free Windows 8.1 OSbased smartphone in Japan.

»

Selling high-end monitors, touch panel
monitors, digital signage and etc in Europe.

Copyright(C) 2017 MCJ Co.,Ltd. All rights reserved.

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Our products (2/2
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Recently introduced products includes followings;
Our own products (in-house developed) Below products were featured in Microsoft’s
keynote speech at Computex Taipei 2016.
»»

3D face recognition camera and fingerprint
recognition device, to go with Window’s Hellofunction.
New way to log-in to your PCs, with moreease and secured way.

3D camera

Products of alliance partners
 Focusing on hardware devices such as Virtual
Reality (VR) HMD and IOT devices.
»

Making full use of our high spec PCs andtech-savvy customer base.

»

Official distributor of HTC’s Vive in Japan,
and close relationship with Oculus andothers.

Fingerprint recognition device
HTC’ s VIVE

Oculus touch, “experience station”

Copyright(C) 2017 MCJ Co.,Ltd. All rights reserved.

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Our value-chain
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Domestic value chain which is suitable for BTO PC manufacturing model leads to competitive
advantage in many respects

Our value chain
 Domestic
 Comprehensive

Overview» Comprehensive and domestic value chain = “Quality×Speed”»“iiyama trust” as reassurance of out product quality.

»

Repair and support function plays a significant role in our brand perception
from customers.
Overview of our value chain

R&D• Mark to market•
development.
• First to launchmany innovative
gadget.
• From PC, tablet,
smartphone toperipheral gadgets.

Purchasing
Strongrelationship withMS, intel andother global
suppliers.

Manufacturing

Sales

After service• Multiple• One of the biggest EC
manufacturingsite for IT gadgets.
factories at east
• around 80 stores.
and west of Japan• Vast network with
with flexible
electronics retailers
capacities.
and resellers,
corporate customers• Call Centre;
open 24 hours
a day, 365 daysa year.
• Repair Centre
near Tokyo

Copyright(C) 2017 MCJ Co.,Ltd. All rights reserved.

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Our sales channels
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Established effective sales channels for both C and B consumers as well as
overseas client
Overview of our sales channel
Sales channels
To C channels

Direct channel

EC website
Direct shops

Indirect channel

Description

Electronics retailers»
Consumers ingeneral

OEM to E-Rs

To B channels

Direct channel

Direct sales
Companies ingeneral and otherentities

Indirect channel

Distributers»

EC website operated by Mouse is one of thebiggest of its kind in Japan.
Unitcom operates more than 70 stores.

»»

Business with all the major E-Rs in Japan.
Providing OEM products to some of theElectronics retailers.

»

Sales by our sales employees to many kindsof entities.

»

Sales via nation-wide IT distributers and EC
site.

»

Sales via distributers.

Iiyama sales channel in Europe
overseaschannels

Indirect channel

Distributers

End users(consumers andcompanies ingeneral, and etc)

Copyright(C) 2017 MCJ Co.,Ltd. All rights reserved.

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Our nationwide business network
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More than 70 stores nationwide, in-house factories in East and West Japan
Chugoku region
Tottori, Shimane,
Okayama, Hiroshima.
Yamaguchi prefecture

Chubu region
Niigata, Toyama,
Ishikawa, Fukui,
Nagano, Yamanashi
prefecture

Hokkaido
region…In-house factory…Repair centre…Call centre

Hokkaido

Tohoku region

Kyushu region

Miyagi, Yamagata, Fukushima
prefecture

Fukuoka, Saga,
Nagasaki,
Kumamoto, Oita,
Miyazaki,Kagoshima
prefecture

Kanto region
Tokyo, Saitama, Tochigi
prefecture

Tokai region
Aichi, Mie, Gifu
prefecture

OkinawaregionOkinawa
prefecture

ShikokuregionTokushima,
Kagawa, Ehime
prefecture

Kinki region
Osaka, Hyogo, Kyoto,
Shiga, Nara, Wakayama
prefecture
Copyright(C) 2017 MCJ Co.,Ltd. All rights reserved.

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Table of Contents
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I.

Overview of MCJ Group▪
Overview of MCJ Group▪
Our history▪
Financial results▪
What makes us special?

II.

Group Companies▪
Growth Strategy of each existing group company▪
mouse computer▪
Unitcom▪
Tekwind▪
iiyama▪
aprecioIII.

Future Strategy▪
Overview of Long-term Vision▪
Mid-term Management PlanIV.

Financial Indicators▪
Significant KPIs for management▪
Return to shareholders: Dividend

V.

Conclusions

Copyright(C) 2017 MCJ Co.,Ltd. All rights reserved.

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Growth strategy of each existing group company
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Growth strategy

Mousecomputer

UnitcomTekwindiiyama» More efficient sales practice» Focus more on
high-margin business» Sale-mix reform»

Allocate more resources on such service as repair and etc toincrease profitability.
Focus more on EC and corporate sales channel.

 New product sourcing»»»

Sourcing for unique products with high margin.
To concentrate more on corporate clients.
Penetrate into server and storage business.

»»»

Continuous launch of new innovative products.
Geographical expansion.
More marketing activities.

»»

More in-depth profitability management of each location.
Different service and menus depending on local taste of eachlocation.

 New product launch Sales and marketing reform Efficient store management
Aprecio Unique service to eachlocationJ

Overview

 Mass marketing ×
innovative product launch Solution businessC

Increase brand awareness in mass market while continue todevelop innovative products.
Strengthen relationship with IT distributors and etc.

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Major group company: mouse computer (1/2
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BTO PC manufacturer, and market leader in niche PC market
 Major PC brand» Corporate model 【Mouse Pro】
» Gaming PC 【G-Tune】» Creator PC 【DAIV】 etc..
 Other products» Windows Hello related products- Face recognition camera- Finger print reader» Windows-based Smartphone “MADOSMA”» Stick PC etc..

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Major group company: mouse computer (2/2
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» Mass marketing × innovative product development

Financial result up to 2Q of FY2017.3
FY2016.3
2Q（in JPY millions）

FY2017.3
2Q

Y on Y
Change13,446

14,713

9.4％

Operating Profit

700

1,374

96.2％

Net Income

446

1,057

137.1％

sales

 Sales continue to grow as our brandawareness increases.
 Strong demand for our high-end products
contributed significant increase in GMR.
 OP increased as a result, despite significant
increase in marketing and other variable
expenses.

 Our “G-tune” brand continue to havestrong position in the gaming PC market
in Japan.
» Demand for VR gradually picks up
in Japan.
» Sponsorship to many VR-related
events.
 2,400 units of “MADOSMA”, theSmartphone, has been adopted by
Hokkoku Bank.
 New product launch; see page above.

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Major group company: unitcom (1/2
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Retail-store operator with more than 70 stores all
across Japan Shop brand» Goodwill» PC ko-bo» Mineo shop
 Repair support» One-coin quick check-up service» Repair and setting service for PC and Smartphone» Second-hand goods

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Major group company: unitcom (2/2
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» Business model restructure × sales channel development

Financial result up to 2Q of FY2017.3
FY2016.3
2Q（in JPY millions）

FY2017.3
2Q

Y on Y
Change13,66812,721

ᇞ 6.9％

Operating Profit

99

251

152.9％Net Income

23

236

922.4％

sales

 Sales plunges as 13 non-performing storeshas ceased operation during previous FY.
 Profitability has increased as we continue tofocus more on high-margin products andservice.

*1) Mobile Virtual Network Operator

 Business model restructure to focus
more on high-margin business andsales channels» BTO PCs.
» Repair service with monthly fees.
» Focus more on EC and corporate
customers.
 Leverage its nationwide store network
for new business.
» Selling start-up-products, such as
IOT devices.
» Provide space to try out VR
products.
» Acts as satellite shop for MVNO*1.
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Major group company: tekwind (1/2
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Main clients
PC parts/ Industrial PC parts

System/ Network equipment

Trading company for comprehensive IT
related devices・parts
 Products- PC parts/Industrial PC parts- System/Network devices- Software- Peripherals・etc.
- Original brand
Provide services as a Multi-distributor whichconnects foreign companies with domestic
market Authorized distributor for…
- Microsoft- Intel- ASUS etc. More than 50 clients.

Peripherals, etc.

SoftwareOriginal Brand
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Major group company: tekwind (2/2
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» IT products distributor, formally Synnex Japan» Official distribution partner of Microsoft, Intel and around
50 companies.

Financial result up to 2Q of FY2017.3
FY2016.3
2Q（in JPY millions）

FY2017.3
2Q

Y on Y
Change15,46214,808

ᇞ 4.2％

Operating Profit

145

342

135.8％Net Income

106

575

440.5％sales

 New products sourcing.
» Unique and only products in Japan,such as gaming chairs.

 Sales decreased as over all demand for PC
related products continue to decrease.
 Profitability has improved, as intentional sift
to higher-margin products and sales channel
reform began to work.

 High-margin products.
» Such products as HDD for security
cameras and small servers.

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Major group company: iiyama (1/2
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Development and sales of high quality monitors for
Europe market
 Market coverage- England- Germany- Holland- France- Poland etc..
 Products- PC monitor- Consumer touch panel- Industrial touch panel- Large display etc.

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Major group company: iiyama (2/2
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» Manufacturer of high-quality monitors» Located and operate in Europe

Financial result up to 2Q of FY2017.3
FY2016.3
2Q（in JPY millions）

FY2017.3
2Q

Y on Y
Change

sales

8,949

10,93022.1％

Operating Profit

1,222

1,765

44.4％

Net Income

788

1,042

32.1％

 Strong demand for such products as touchmonitors and digital-signage continue todrive sales growth.

 Focus on high-quality monitors.
» Continued push to touch monitorsand digital signage.
» Demand for our desktop monitors
picked up strongly this fiscal year.
 High-level sales and shipment.
» Brand awareness continue toincrease along with newly-started
marketing activity.

 Continue to maintain high-level of grossmargin as demand for our high-end products
remain strong.
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Major group company: aprecio
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» Operator of multi-function cafés» Many of customers are Gaming PC users

Financial result up to 2Q of FY2017.3
FY2016.3
2Q（in JPY millions）

FY2017.3
2Q

Y on Y
Change

sales

1,514

1,794

18.4％

Operating Profit

236

220

ᇞ 6.9％Net Income

158

91

ᇞ 42.4％

 Sales increase as the number of storesincrease as a result of merger withsubsidiary internet café operator.
 2Q result was affected hugely by one-time
event, hence, despite strong OP
performance of 1Q, OP decreased.

 Merger with subsidiary.
» The number of stores has
increased 10, compared to thesame period, previous year.
» Franchisee has opened one newstore.
 Marketing function.
» Experience marketing of our groupproducts.
» Product marketing survey for othercompanies.

Copyright(C) 2017 MCJ Co.,Ltd. All rights reserved.

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Table of Contents
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I.

Overview of MCJ Group▪
Overview of MCJ Group▪
Our history▪
Financial results▪
What makes us special?

II.

Group Companies▪
Growth Strategy of each existing group company▪
mouse computer▪
Unitcom▪
Tekwind▪
iiyama▪
aprecioIII.

Future Strategy▪
Overview of Long-term Vision▪
Mid-term Management PlanIV.

Financial Indicators▪
Significant KPIs for management▪
Return to shareholders: Dividend

V.

Conclusions

Copyright(C) 2017 MCJ Co.,Ltd. All rights reserved.

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Our future expansion strategy as Group; Overview of Long-term Vision
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“hardware ×contents and services” = multiple devices × multiple services» Capture innovative trend and hence, growth, both from hardware and related services

Japan businessContinued focus on hardware

MCJ

Penetrate into contents and related services“aim to provide a wide range of IT devices notsynergies“provide contents and other services to device

limited to PCs, such as wearable, VR, AR and etc.
to capture the market growth of hardware sector.”

users to capture the market growth of thesegments and diversify our future profit base.”

As the “hardware” is growing businessNew business for us# Hardware, as a means to access,deliver, share and etc. to data, will
always exist, while changing its style.

# Hence, no rush to this area, start withfamiliar game area with cautious
amount w/ appropriate partners.

 Collaborate more with start-ups

Global business

Expansionimage With M&As and business allianceiiyama to penetrate
into other region
Iiyama to continue its EU
expansion

Other Group companies
and alliance companies
to commence Asia andPacific expansion

M&As to play significant role for this purpose

Copyright(C) 2017 MCJ Co.,Ltd. All rights reserved.

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Role of the Mid-Term Management Plan in the Mid- to Long-term Vision
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 The mid- term plan is for establishing the foundations for realizing the intended direction andgrowth Balancing between “profitable growth” and advance investment
Up until 2017

Objectives

Year 2017-2019

 Phase of strengthening
and developing the core
PC-related business Phase of establishing thefoundations to achieve thefuture vision Profit maximization in the PC-related Continue to strengthen the PC business Diversify the types of devices bybusinesses

positioning PCs as a part of IT gadgets in
 Diversification of profits and businesses
through effective M&A

the broad sense.
 Develop the foundations for advancing"beyond" the devices.
For theobjective

Issues Prioritization of management including
M&A policy

Issues/
Policies

Beyond 2019

Achievement of
the intended
direction andgrowth in
the mid- to longterm vision

 Further strengthening the PC business.
 Working together with start-ups that create
cutting edge devices.

 Developing the growth foundations for the
next generation

 Accelerate business alliances not limited
only to M&A Set and execute a clear M&A policy
 Train and strengthen management talent

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Our start-up investment policy and target
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Be the business platform for start-ups, using our extensive value chain
to support their business growth.
» Aim: Broaden out product lineup and joint R&Ds, utilize as new product sourcing

CJ

Overview of our value chain
R&D• Mark to market•
development.
• First to launchmany innovative
gadget.
• From PC, tablet,
smartphone toperipheral gadgets.

Purchasing
Strongrelationship withMS, intel andother global
suppliers.

Manufacturing

Sales

After service• Multiple• One of the biggest EC
manufacturingsite for IT gadgets.
factories at east
• around 80 stores.
and west of Japan• Vast network with
with flexible
electronics retailers
capacities.
and resellers,
corporate customers• Call Centre;
open 24 hours
a day, 365 daysa year.
• Repair Centre
near Tokyo

Investment policy»

To focus on the investment along with business growth support to start-ups, by providing tailor-madesupport for each start-ups, using out comprehensive value chain and global network.

»

Our primary investment focus will be on hardware start-ups and related service providers.

»Also aim to become local partner in Japan to foreign start-ups providing such function as
sales and after-sales support function.
Copyright(C) 2017 MCJ Co.,Ltd. All rights reserved.

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Our M&A policy and target
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Our M&A strategy as a way to achieve our mid- to long-term goal is as follows;» Aim: to strengthen and complement our existing hardware business.
» M&As will be conducted within the range of FCF and cash on hand.
Major policy concerning
M&A and businessalliances

PolicyExisting
businesses (1)» Aim to strengthen existing value chain
functions such as current development,purchase, sale, maintenance, etc.

Strengtheningof value chain» Aim to supplement functions that the groupeither doesn't have or is vulnerable in.

Existing
businesses (2)Strengthening ofproduct andcustomer axesNewbusinesses

Objectives, etc. of M&A» Based on needs for expanding value chain
functions possessed by each of the groupcompanies.
» Aim to re-strengthen the operationalfoundations for expanding business in future.

» Aim to strengthen existing business based on
handled products and clients.
» Aim to develop new product groups andcustomer segments including industries (notjust limited to devices; e.g. software, etc.)» Set individual themes that correspond to theimmediate sales needs and sales strategies ofeach group company.

» Investment outside of existing business fields
not dependent on IT devices» Aim for synergies with the device businessthrough advancing into businesses thatutilize devices.

» Do not limit fields, for example, software,
security, content, etc., but also do not bet
excessively on specific fields.

» Aim to expand types of devices we carry andstrengthen commercial distribution in line withthis.

» Aim to seek business fields that can be apillar of the future business.
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Mid- term Management Plan：Policy for M&A and start-up investment(current assumption)
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M&As account for significant part as a way to achieve our long-term vision;» M&As will be considered within the range of FCF and cash on hand
» M&As are considered with clear strategic business synergies
2016.3Present term

2017.3Mid- term Plan
2nd Year【Present-term theme】

M&A

Start-up
investment

Create new policies



Reinforce the M&A
team

Focus on strengthening
the current business

Gain investment trackrecordMid- term Plan
3rd Year2019.3

Measures forachieving long-term
theme

Identifying Markets ×
Broaden the types of productGain global business value chainBroaden the hardware
products we carry

Invest mainly in
manufacturing
start-upsbeyond【Long-term theme】【Mid- term theme】

Creating new team andgaining investment
track record

2018.3

Get into
contents・services

Expand the investment target tocontents・services
start-ups

Theme for next Midterm Management
Plan

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Recent strategic moves in consistent with our expansion plan
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Strategic investment to take equity stake in start-ups, both in hardware and contents sector.
» Publicly announced investments so far were as follows;
Hardware start-up

Contents start-up

Investment to “Nain”

Investment to “Oukaichimon”»

Nain is a start-up company that develops andmanufactures “hearable” products.

»

Oukaichimon is a developer of VR-gaming
contents and is a seed stage start-up company.

»

Wireless earphone ×voice recognition»»

Enable users to use their smartphones without
touching, for E-mails, instant messages, twitter,news and text-based apps.

Currently in the process of developing VR
game for PSVR, and aim to launch its first title
within 2017.

»

VR games for PC-based HMDs are to follow.

×

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《Mid-term Management Plan》 Entering the VR related business
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Entering the growing market of VR with both hardware and contents
Hardware Offer high-spec PCs which work
as infrastructures for VRHMD*1

 Promote and market VRHMD

 Start-up
investment

Manufacture and market
various VR-ready PCs

Handling the various
VR devices

Invest to“Oukaichimon”

Market VR-Ready “OcuFes＊2 Supervision PC” bygaming PC brand “G-tune” (mouse computer)• Started carrying the HTC Vive
̵ Installed demonstration device for some of thephysical stores（Unitcom）

Market VR-Ready laptop by Creator-PC brand“DAIV” (mouse computer)̵̵̵Contents

Market laptop for VR development (Viverecommended) by “iiyama PC” brand“SOLUTION∞(Solution infinity)” (Unitcom)

̵Capture the growth of
PSVR̵By promote
dissemination of VR
contents (which there
are not enough of rightnow), it’s expected toalso have positive
influence on hardware
sales.

Started selling VR-Ready PC and HTC Vive as one
set (Unitcom)
̵̵First investment projectfor contents business×̵

Started selling HTV Vive headset as asales agency in Japan (aiuto)• Started carrying the Oculus Touch
̵ Provided space to try out the product in
5 directly-managed stores（mouse computer）*1 Abbreviation for Head Mount Display. VR device to wear on the head.
*2 VR developers organization “NPO OcuFes” (Representative Director︓Kenji Takahashi, Location: Tokyo)

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Table of Contents
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I.

Overview of MCJ Group▪
Overview of MCJ Group▪
Our history▪
Financial results▪
What makes us special?

II.

Group Companies▪
Growth Strategy of each existing group company▪
mouse computer▪
Unitcom▪
Tekwind▪
iiyama▪
aprecioIII.

Future Strategy▪
Overview of Long-term Vision▪
Mid-term Management PlanIV.

Financial Indicators▪
Significant KPIs for management▪
Return to shareholders: Dividend

V.

Conclusions

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Significant KPIs for management
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Management considers below KPIs as significant indictors.
» M&As are positioned as major method to achieve our long-term goal, however, weintend to keep below level as group as a whole, as minimum level.
KPIs in target
Actual for
FY2016.3

OP ratio<operating profit /sales>

ROIC<NOPAT*1/ invested

Target fig

around5%» Balancing sound sales growth and profitability as soundentity to sustain future growth.
» Actual fig for 2017.3 up to 3Q is 7.6%

11.6%

Above 10%

» Manage different types of business using ROIC as mutual
KPI.
» While keeping eyes on sound capital return.

13.0%

Above 10%» Same as above ROIC, and aim to maximize theshareholders’ interest and value.

Above 20%» To increase TSR*3» Management is committed to create and increase value forour shareholders.

5.0%

capital in business*2>

ROE
<Net
income/shareholders
equity*2>

Dividend payout
ratio

Target figure and our intention
Background and intention

20.5%<dividend/Net Income>*1) NOPAT＝OP×（1 - tax rate）*2) average *3) Total Shareholder Return

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Return to shareholders: Dividend
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Upwardly revised the dividend payout ratio for FY2017.3 from 20.0％ to 25.0％

Actual Results
FY 2014.3

Initialforecast

Revisedforecast

FY 2015.3

FY 2016.3

FY 2017.3

FY 2017.3

Divident per share

5.46 JPY

10.00 JPY

13.00 JPY

14.50 JPY

25.27 JPY

Dividend Payout ratio

15.0%

18.6%

20.5%

20.0%

25.0%

 Upwardly revised the Dividend Payout Ratio from the initial forecast of 20.0% to 25.0%.
 Upwardly revised the Net Income from the initial forecast of 3.5 billion yen to 4.9 billionyen.
 As the result, revised the estimated year-end dividend per share to 25.27 JPY.

※ The dividend for the FY 2017.3 is listed on the assumption that it’ll be approved at the annual meeting of shareholders
which is scheduled to be held in June 2017
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Table of Contents
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I.

Overview of MCJ Group▪
Overview of MCJ Group▪
Our history▪
Financial results▪
What makes us special?

II.

Group Companies▪
Growth Strategy of each existing group company▪
mouse computer▪
Unitcom▪
Tekwind▪
iiyama▪
aprecioIII.

Future Strategy▪
Overview of Long-term Vision▪
Mid-term Management PlanIV.

Financial Indicators▪
Significant KPIs for management▪
Return to shareholders: Dividend

V.

Conclusions

Copyright(C) 2017 MCJ Co.,Ltd. All rights reserved.

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Conclusions
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 Growth by identifying the niche market even though the PC
industry as a whole is stagnant.
 Earn stable profit both in domestic market and overseas
 Focus on growing market of VR as Group.
 Growth strategy by both “Hardware × Contents・Service”
 Strong performance, great financial indicators, andactive returns to shareholders

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