first contact material - 株式会社ゼンリンsolutions for societal issues and to assist...

First Contact Material

July, 2019

Securities Code: 9474

ZENRIN CO., LTD. All Rights Reserved.© 1

1. Corporate profile

2. Corporate history

3. ZENRIN map information

4. Business

5. Shareholders Return and Transition of Stock Price

6. Stock Data

7. Consolidated Financial Highlights

Table of Contents


1. Corporate profile

Corporate Name ZENRIN CO., LTD.

Head Office (Head office) Kitakyushu-shi, Fukuoka (Tokyo head office) Chiyoda-ku, Tokyo

Representative

Founded & Established Founded: April 1948 Established: April 1961

Capital 6,557.64 million yen

Number of Employees 1,951 (non-consolidated) 3,019 (consolidated) (as of March 31, 2019）

Stock Listings First Section of the Tokyo Stock Exchange, Fukuoka Stock Exchange

Industry Information and communications

Zenshi Takayama,

President &

C.E.O.

Junya Amita,

Vice President

ZENRIN CO., LTD. All Rights Reserved.©

We create geospatial informationusing a “knowledge cycle.”* We apply this data not only to come up with solutions for societal issues and to assist businesses, but to construct databases and provide services that underpin the technologies supporting people’s livelihoods. This is how we help people to lead richer and more fulfilling lives.

* “Knowledge cycle”This refers to the continuous generation of knowledge arising from

the technologies and expertise in the planning, collecting, managing,

and providing ZENRIN’s map information.

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1. Corporate profile :ZENRIN WAY

Contributing to people’s lives by creating ZENRIN Geospatial Information.

Corporate Philosophy

VisionWorld’s No.1 Company

in organizing information

for mapping.

Corporate sloganMissionCreating libraries

from the real world.

ValueMapping information is

a valuable form of social infrastructure.

Management Strategy

Corporate Culture

ExcitementIf we can’t get excited,

we can’t get our customers excited.

Code ofConduct

Leading Change Companies must

continue to changein order to grow.


Sales and survey network:71 locations

1. Corporate profile :Domestic network and group companies

(Head office)Kitakyushu-shi, FukuokaHeadquarters, development,

and production functions

(Tokyo Head Office)Chiyoda-ku, Tokyo

Headquarters and sales functions

ZENRIN BIZNEXUS CO., LTD.

・DM delivery services

・DM and flyer production and printing

・In-ship advertising, and other advertising services

GEO Technical Laboratory CO., LTD.・Research, manufacturing, and sales of

three-dimensional digital maps and three-dimensional data

ZENRIN PRINTEX CO., LTD.・Printing of residential maps and other

application maps

・Commercial printing

ZENRIN InterMap CO., LTD.・Selling maps in Okinawa

・Input of fundamental data about mapinformation etc.

DAIKEI DATA PROCESSING CO., LTD.・Input of fundamental data about map

information etc.

ZENRIN Group: 11 companies

ZENRIN GEO INTELLIGENCE CO., LTD.

・GIS Marketing business

・Cloud service business

・Marketing solution business

・Market research business

DAITO Marketing Solutions Inc.・Marketing Solution Services

・Commercial printing

Will Smart Co., LTD.・Planning and production of IoT (Internet-linked

hardware) and software, and business solutions for cloud-based systems using these technologies.

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Lease System Planning co., inc・Sales and maintenance of software for leasing companies

ZENRIN DataCom CO., LTD.・Provision of paid and free map information and value-

added information to general consumers

・Provision of map-based value added information services to corporate customers

・Internet location information services, mobile map services


1. Corporate profile :Overseas network and group companies

SHANGHAI DAIKEI DATA PROCESSING CO., LTD.

(Shanghai, China)・Input of fundamental data about map

information etc.

ZENRIN Group: 5 companies

ZENRIN TaipeiBranch Office(Taipei, Taiwan)

Overseas locations: 2 locations

・Sales of map data and related data

・Sales and relationship activities targetingEuropean customers

ZENRIN EUROPE GmbH(München, Germany)

・Map data input, editing, research, andinformation gathering

・Sales and relationship activities targeting North American customers

ZENRIN USA, INC.(Burlingame, CA, USA)

Abalta Technologies, Inc.(San Diego, CA, USA)

・Licensing and contracted development,etc. of on-vehicle software solution and

location information software

ZENRIN IndiaBranch Office(Gurgaon, India)

Abalta Technologies, EOOD.(Sofia, Bulgaria)

・Development of on-vehicle softwaresolution and location information

software


Published Nenkan Beppu, the first publication of the Company since its foundation

Achieved the publication of residential maps covering 47 prefectures

Jointly established the Automatic Residential Map Production System with Hitachi, Ltd.<Development of a map database＞

Developed the world’s first dedicated software for GPS car navigation systems

Established ZENRIN DataCom CO., LTD. to handle Internet Distribution of digital maps

Launched ZNET TOWN Internet residential data delivery services

Started the provision of services through all kinds of devices

Started R&D on high precision spatial information

Listed on the FukuokaStock Exchange

Listed on the Tokyo Stock Exchange

・Digitization of map・Provision of map data forcar navigation system

・Commencement of Map data distribution service over the Internet・Development on 3D digital map

・Technological progress resulting from the widespread adoption of IoT

・Increasingly diverse customer needs

・Development of maps for ADAS and drones・Expansion of map design business

Participated in Dynamic Map Platform Co., Ltd.

Started Map Design business

Updated residential map data of municipalities all over Japan

Published printed residential maps of seven villages in the Tokyo Islands

・Expansion of the Internet

・Diversification of terminal devicesSpread of PCs

Established GEO Technical Laboratory Co., Ltd. to conduct R&D on 3D imaging technologies

Publication of Residential maps

Dominance of

paper media

Foundation

1949 1980 1984 1990 2000 2005 200820071994 2006 2017201620011948

Started R&D on map for drone

2. Corporate history

70th year anniversary

ZGP25

6

2018 2019


3. ZENRIN map information :

Providing map data best suited to the

services we provide

住宅地図データベース

ナビ地図データベース

Viewmap

データベース

Fieldsurvey

Measureddata

Drawn map

surveys

ZENRIN services

Puts together data collected

from all over Japan

Alliance services

Third-party services

GeospatialInformation

DB

Organizes all data in terms of databases of geospatial elements

Database (DB) creation and upkeep expenses are incurred as fixed costs every year in the form of: survey costs + data entry costs + maintenance costs + depreciation costs (software, server equipment, etc.)Based on these databases we are able to produce a wide range of products and services, and in the process not only recover expenses but secure and expand profits.

Collection platform DB platform Service platformCirculation platform

Collected

data groups

Service DB

Product DB

Optimizing geospatial data and distribution data

to meet diverse needs

ZIP（ZENRIN Information Platform）Information platform from information collection through provision

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from information collectionthrough provision


Pedestrian Multilingual

Map data

Utility companies (electricity, gas, water, etc.)

Finance, insurance

Construction, real estate

Logistics, mail services

Automobiles, home appliances distribution

Medical care, education

Retail shops, restaurants

Other services

etc.

to BusinessResidential maps

Road map (network)

3D mapsCity map

High precision road map

etc.

Usage situation

Emergency call AD/ADAS Tourist information

Marketing

Facility and property management

Customer management

Asset valuation

Transportation, home delivery, mail, other delivery

Sunlight, landscape, and disaster simulation

etc.

Car navigation

Pedestrianinformation

Store opening plan

Complaints handling

Certification

Games

Disaster prevention/mitigation

Inbound tourist information

Smartphone services

Stationery

Sales visits and management

to Consumer

Map portals

Contents providers

Carriers (communication service

providers)

Car manufacturers

Car navigation system developers

Book stores, convenience stores

Video game developers

Stationery stores

etc.

3. ZENRIN map information : Customers and application purposes

Central governmental agencies and ministries

Municipal governments

to Government

Drone


① Product① Product

② Public Solution② Public Solution

③ Map Design③ Map Design

④ Automotive④ Automotive

⑤ IoT⑤ IoT

⑥ Marketing Solution⑥ Marketing SolutionBusiness to support marketing and sales promotion activities leveraging group resources

Business to provide solutions to industry-specific infrastructure companies, mobility service providers, and IoT business operators

Automobile-related business targeting car manufacturers and car navigation system developers

Business to provide map-based products

based on new concepts

Business to provide products and services to national and local government entities

Business to provide products and services to

private-sector companies

Product14.4 （23%）

PublicSolution6.7 （11%）

Map Design1.2 （2%）

Automotive18.6 （29%）

IoT 14.5

（23%）

MarketingSolution

8.0 （12%）

63.763.7

Sales by BusinessFiscal 2019 （Year Ended March 31, 2019）

（Amounts in billion yen)

4. Business


4. Business Volume ×Unit price

Monthly (annual) usage fee ×

Number of IDs

Data usage fee × Number of

terminal devices

We help businesses by providing them with products and services that meet their customers’ needs and applied uses.

Books/electronic versions Online versions On-demand services

We offer online GIS Packages that bundle functions

that are necessary for specific businesses and industries

Residential map data that is useful to all kinds of businesses

Services that are available for use on a wide range of devices

We have a large range of map databases―including residential maps―and other content that we combine into products and services to meet the individual needs and business applications of client companies.

Monthly usage fee for each ID

in a prefecture: From 10,000 yen

(tax not included)

Implementable at low costs and in short timeframes.Featuring rich content information, we are a one-stop shop for the data you need for your business.Automatic updates periodically. No need to spend the time or money to buy new maps or atlases.

ZENRIN GIS Package Real Estate

ZENRIN GIS Package Construction

ZENRIN GIS Package Real Estate Appraiser

ZENRIN GIS Package Tax Accountant

Main products lineup

① Product

・ZNET TOWN ・Output services・ZENRINResidential map

・DigiTown ElectronicResidential Map

・ZENRIN Residentialmap for smartphone

・Printing servicesat convenience stores


●Detailed building-to-building, door-to- door building

names, resident names, and addresses are

shown on large scale maps.

●Bus stops, traffic lights, intersection names, one-

way streets, and other road and traffic

information are also included

●Data are updated each year for city areas such as the Tokyo metropolitan area and prefectural

capitals and every 2 to 6 years for other areas

●About 2,200 titles of residential maps (B4 size) are

published Price ranges from 8,000 yen to 36,000

yen

We have residential map datafor all municipalities in Japan.

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Reference information:What is a ZENRIN Residential map?

This map is for illustration purpose only. This may differ in part from the specifications of actual products.

Block sign

Lot number <house number>

Separate serial number of the buildings, apartments,

etc.

Bus stop

District boundary

Subway entrance

Underground walkway

One-way street

Area name

Traffic light bearing the name of the intersection

Block boundary, etc.

Block number<Lot number districts>


Use of residential map data by the fire department and the police department(e.g., emergency command system)



Number of IDs


terminal devices② Public Solution

We support central governmental agencies and ministries and local municipal governments

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Provision of services for LGWAN*Support for Local disaster prevention/mitigationunder the disaster support agreement*

Propose special-purpose/customized maps such as disaster prevention maps

Provide up-to-date hazard information and maps including shelters and AED

locations

Provide a package system for more effective use of residential maps to

support individual operations of local government bodies, such as information

sharing among departments and the provision of administrative services to

local residents, under the high-security LGWAN environment.

*Local Government Wide Area Network



Number of IDs


terminal devices

* Concluded with 574 municipalities as of the end of March, 2019

Main terms of the disaster support agreement

Provide “maps stored for emergency and wide-area maps” available for disaster assistance use in the case of a disaster

Permit the copying of “maps stored for emergency” and the use thereof for a specified period

Provide residential maps that can be used via the Internet free of charge

Wide area at a glance with maps of around 1/18,000 scale!

Covers all necessaryinformation

・Earthquake・Fire・Tsunami・Flood・Landslide・Eruption

etc.

② Public Solution


4. Business

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In an age of diversifying needs, pursuing the potential from goods to activities

Map design Stationaries “mati mati” series

(for consumers)

③ Map Design

●Independent research

kits for primary school

students using maps

Production of publications such as sightseeingguidebooks and guide maps that can also be used for personal hobby and outing purposes

●Guidebooks

for tourists

Original map design goods （for corporations）

Map stationery with a theme design for each area layered over an actual map of the area

●Tourist spot、Anniversary eventMaterials delivered at events, briefings, etc.

●Production of clear files,paper bags, tote bags, etc., with original map designs

ContractingVolume ×Unit price

Advertisement

●Clear file, Notepad,Masking tape, Sticky tag

●All 15 area（as of July,2019）


4. Business

We provide highly advanced, highly accurate map databasesto aid in the creation of an advanced mobility society

No. 1 domestic sharein the provision of navigation data (Source ZENRIN)

Provide data in various formats to meet the needs of manufacturers

Secure share in the new business in

support of connectivity expansion

Navigation

map

database

＋Application

Major carManufacturers

【Overseas and domestic navigation related business】

Major car navigation

system developers

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④ Automotive

Has developed car navigation systems jointly with car navigation system developers and car manufacturers since the early period Accumulated knowhow through trust and actual results that we delivered

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este

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form

at

Volume ×Unit priceContracting

Development of formats


Equity investment in Dynamic Map Platform Co., Ltd.

●June 2016Established Dynamic Map Planning Co., Ltd by ZENRIN, MitsubishiElectric Corporation and PASCOCorporation as incorporators withequity investmentby a group of 15 companies

●June 2017Shifted the contents of the businessform a planning company to an operating company to provide highprecision 3D Map Data for automa-ted driving systems and changed thecompany name to "Dynamic MapPlatform Co., Ltd."

●March 2019Completed creation of all map data for all expressways and motorways throughout the country.

【Automatic Driving and ADAS Business】・ Response to mass production (expressways)

・ Research and development (ordinary roads)

Dynamic map

Cooperation Arias

ZENRIN

independent

Competitive Arias

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4. Business ④ Automotive Volume ×Unit priceContracting

Development of formats

●Development of high-precision 3D map data

●Coordination in the safe driving support system andthe automated driving system using dynamic maps

Automakers

Vehicle-collected information

（probe data , images, etc.）Dynamic map

Cooperation Arias

Company name

Innovation Network Corporation of Japan

Mitsubishi Electric Corporation

Japan Infrastructure Initiative Company Limited

ZENRIN CO., LTD.

PASCO CORPORATION

AISAN TECHNOLOGY CO., LTD

INCREMENT P CORPORATION

TOYOTA MAPMASTER INCORPORATED

ISUZU MOTORS LIMITED

SUZUKI MOTOR CORPORATION

SUBARU CORPORATION

DAIHATSU MOTOR CO., LTD.

TOYOTA MOTOR CORPORATION

NISSAN MOTOR CO., LTD.

HINO MOTORS, LTD.

HONDA MOTOR CO., LTD.

Mazda Motor Corporation

MITSUBISHI MOTORS CORPORATION

Measurement using high precision instrumented vehicles

Point cloud data(laser scanner)

Image and video data(omnidirectional camera) Generation


4. Business

A fusion that blends the location information business with IoT solutions

In-house map servicesZENRIN Itsumo NAVI, etc.

⑤ IoT

Providing map data for other companies’ services

Portal sites, mobile app services, etc.

IoT Solution ServiceFor infrastructure providers in specificindustries, drones, MaaS, etc.

Map DBMap DB

Various analysis and utilization

New Value(Serviceco-creation)

Customer Business DB

Big Data

Customer Use(Business

improvements)

Solution Solution

【IoT Solution Service】

Digital displays and distribution solutions(Tourist information, transportation information, event information, etc.)

Promote R&D on aerial 3D maps for use by drones and establish a business model (closer coordination with the national government as well as the private sector)

Provide map platform for mobility services

Sharing

MaaSTicket

17

Monthly (annual) usage fee ×Number of subscribers

Contracting・Annual license

・Charged by volume

Expand business in collaboration with companies (real estate, logistics, transport, infrastructure, service providers, etc.)


4. Business

Comprehensive support of marketing strategies taking advantages of the strengths of the group companies

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⑥ Marketing Solution

ZENRIN Group Business outlines of each company

ZENRIN GEO INTELLIGENCE CO., LTD. - GIS marketing, cloud services, marketing research

ZENRIN BIZNEXUS CO., LTD.- Direct mail sending service, direct mail flyers production and printing,

advertising services

ZENRIN PRINTEX CO., LTD.- Printing publications

- Commercial printing（sales promotion, business use, books, etc.）

DAITO MARKETING SOLUTIONS CO., LTD.- Planning and implementation of sales promotion and advertising

- Planning, collecting data, editing, photographing for advertising prints

● ZENRIN Group companies and their functions used in the marketing solution business

OperationCreativePlanning

Media distribution and operationEditorial design Media productionAnalysis

●Provide value to customers based on synergies from the combination of geospatial information and ZENRIN Group’s know-how

ContractingVolume ×Unit price

Marketing area analysis using GIS,shop opening plan proposal, sales promotion planning, etc.

Design and printing of flyers and tools Sending DMs, posting folded flyers, etc.

Strategy formulation

Promotion planning


5. Shareholders Return and Transition of Stock Price

Basic Policy aReturn income to shareholders derived from income growth based on the medium- to long-term business plan, while taking into account maintaining an adequate amount of internal reservesTarget dividend on equity (DOE) on a consolidated basis of 3% or higher

Volume(in thousands)

Stock Price(yen)

Dividends per Share

■□Stock Price(monthly) Volume(monthly)

Stock Price and Volume

Stock sprit (1:1.5)

~ Maintain DOE of 3% or higher ~


6. Stock Data

Breakdown by Investor Type

ShareholdersNumber of

Shares Held(in thousands)

Percentage of Shareholding

(%)

SANWA Ltd. 5,271 10.01

TOYOTA MOTOR CORPORATION 4,272 8.11

Japan Trustee Services Bank, Ltd. (trust account) 2,600 4.94

THE NISHI-NIPPON CITY BANK, LTD. 2,295 4.36

ZENRIN Employee Shareholding Association 2,272 4.31

OSAKO HOLDINGS Inc. 1,895 3.60

The Master Trust Bank of Japan ,Ltd. (trust account) 1,807 3.43

Kimiko Osako 1,351 2.56

J.P. MORGAN BANK LUX EMBOU S.A. RG 385576 1,296 2.46

Japan Trustee Services Bank, Ltd. (trust account 9) 920 1.74

（as of March 31, 2019）

In addition to the above, ZENRIN holds 4,669 thousand treasury shares.

Percentage of Shareholding is calculated excluding ZENRIN’s treasury shares

Number of Shares Authorized

Number of Shares Issued

Number of Shareholders

201,000,000

57,301,365

14,197

Major Shareholders


2010/3 2011/3 2012/3 2013/3 2014/3 2015/3 2016/3 2017/3 2018/3 2019/3

Net Sales 51,747 52,880 52,322 54,991 53,589 52,286 54,970 57,819 61,332 63,747

Operating Income 3,153 4,373 4,408 5,585 3,180 2,389 3,038 4,234 5,441 5,824

Operating Margin (%) 6.1 8.3 8.4 10.2 5.9 4.6 5.5 7.3 8.9 9.1

Ordinary Income 3,317 4,572 4,777 5,076 3,663 2,751 3,427 4,527 5,863 6,200

Profit Attributable to

Owners of Parent1,426 2,041 1,952 1,835 1,272 1,464 1,610 2,462 3,336 3,206

ROE

(Return on equity)4.4 6.1 5.7 5.2 3.5 3.9 4.0 6.0 8.2 8.1

(Amounts in million yen)




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(%)

■Operating Income ●Operating Margin

(%)

(million yen)(million yen)

(million yen) (million yen)

45,000

50,000

55,000

60,000

65,000

10/3 11/3 12/3 13/3 14/3 15/3 16/3 17/3 18/3 19/30.0

4.0

8.0

12.0

16.0

0

2,000

4,000

6,000

8,000

10/3 11/3 12/3 13/3 14/3 15/3 16/3 17/3 18/3 19/3

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10/3 11/3 12/3 13/3 14/3 15/3 16/3 17/3 18/3 19/3

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10/3 11/3 12/3 13/3 14/3 15/3 16/3 17/3 18/3 19/3

0.0

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12.0

10/3 11/3 12/3 13/3 14/3 15/3 16/3 17/3 18/3 19/3

ZENRIN CO.,LTD. https://www.zenrin.co.jp

Corporate Management Division, Management Control & IR Department

IR contact email: [email protected]

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