Advanced Media, Inc. · TSE:3773
Advanced Media — FY2006 Earnings Presentation
46 slides from Advanced Media's earnings presentation, 2006
Slide 1: Investors Meeting Presentation for the Year Ended March 31, 2006
Investors Meeting Presentation For the Year Ended March 31,2006 Advanced Media,Inc 1
Slide 2: Agenda
Agenda zSummary of Business Results P. 3 zOutline of Business P. 13 zReference Materials P. 36 2
Slide 3: Summary of Business Results
Summary of Business Results 3
Slide 4: Consolidated Performance Summary
Consolidated Performance Summary zWith regard to consolidated performance, net sales were generally as forecast, due to steady performance by consolidated subsidiary MC2, Ltd. However, the startup of business operations at consolidated subsidiary Voice Domain Service, Inc. required substantially mor
Slide 5: Consolidated Balance Sheets
Consolidated Balance Sheets Copyright Advanced Media, Inc. 5
Slide 6: Forecasts for the Consolidated Results of FY2007
Forecasts for the Consolidated Results of FY2007 zIn the interim figures, Voice Domain Service, Inc. is expected to post very modest net sales, the net sales of Advanced Media will be much larger than in the second half, and the equity method affiliated company Multimodal Technologies, Inc. is expec
Slide 7: Non-consolidated Business Results
Non-consolidated Business Results zComparison between actual results and forecasts of 15th Feb 2006 zComparison between FY2005 and FY2006 Increases of approximately 30% in net sales and 130% in ordinary income. Copyright Advanced Media, Inc. 7
Slide 8: Segment of Non-Consolidated Net Sales
Segment of Non-Consolidated Net Sales zAlthough net sales grew in the solution support business, which performs development on consignment, this business generated a smaller share of total net sales. zSales of the License Business grew in absolute terms and as a share of total net sales, and the shi
Slide 9: Ordinary Income
Ordinary Income zNon-consolidated ordinary income has almost doubled each fiscal year, as has the ordinary income ratio. Copyright Advanced Media, Inc. 9
Slide 10: Non-Consolidated Balance Sheet
Non-Consolidated Bbalance Sheet Copyright Advanced Media, Inc. 10
Slide 11: Forecasts of Non-consolidated Results for FY2007
Forecasts of Non-consolidated Results for FY2007 zAn ordinary loss at midyear is forecast as a result of growth in selling, general and administrative expenses in connection with anticipatory investment to boost sales in the second half, the full-scale startup of marketing partners which will have a
Slide 12: Other Figures
Other Figures zNon-Consolidated Capital Expenditure zNon-Consolidated Depreciation Expenses z Copyright Advanced Media, Inc. 12
Slide 13: Outline of Businesses
Outline of Businesses 13
Slide 14: Areas of Business
Areas of Business zGames/Entertainment/Education Game, Robots, zMedical Educational games X-ray/medical image reports, AmiVoice CALL electronic medical records (large hospitals, clinics, dental clinics), drug dispensing AmiVoice EX Conference zBusiness Solutions Proceedings • AmiVoice Reporter, • As
Slide 15: Second Half Highlights
Second Half Highlights 1. IBE and Advanced Media established an alliance in the field of product development using speech recognition. Realized the effective and accurate dissemination of information through a conference proceedings creation support system that can employ images, speech, and text (O
Slide 16: Second Half Highlights
Second Half Highlights 8. Advanced Media and ASCII Solutions, Inc. entered into an operational alliance in the area of speech recognition for medical applications (December 2005) Commenced sales of ® speech input system for electronic medical records through ASCII Solutions. 9. Issued an upgrade add
Slide 17: Fiscal 2006 Performance in the Medical Area
Performance and Plans by Business Area zFiscal 2006 Performance in the Medical Area Full-scale implementation in dispensing pharmacies (800 pharmacies by March 31, 2006) Speech recognition software for clinic and hospital electronic medical records (800 facilities by March 31, 2006) Installation in
Slide 18: AmiVoice Medical Users
AmiVoice Medical Users Radiology market – Established Enhancing to Clinic, Pathology, ER etc. More than 1,400! ) ) ) Copyright Advanced Media, Inc. 18
Slide 19: Fiscal 2007 Plans for the Medical Area
Performance and Plans by Business Area zFiscal 2007 Plans for the Medical Area Further expansion of sales of four core products - Radiology department license - Dispensing pharmacy license - Clinic license - Hospital license Introduction of new products - Electronic medical record for dentists - Dic
Slide 20: Fiscal 2006 Performance in Games/Entertainment/Education
Performance and Plans by Business Area zFiscal 2006 Performance in Games/Entertainment/Education License sales and consignment development for set-top boxes took an upturn. Games/entertainment area -Development of online games, and license sales of robots and game software Education area -License sa
Slide 21: Fiscal 2007 Plans for Games/Entertainment/Education
Performance and Plans by Business Area zFiscal 2007 Plans for Games/Entertainment/Education License sales and consignment development for set-top boxes Games/entertainment area -License sales and consignment development, etc. of next-generation game software and commercial games -License sales and c
Slide 22: Fiscal 2006 Performance in Computer Telephony Integration (CTI)
Performance by Business Area zFiscal 2006 Performance in Computer Telephony Integration (CTI) • Providing software for finance, and securities related businesses. • Providing consultation and systems integration related to the use of CTI. • Joint operations with MC2. (to enhance product strength) Cu
Slide 23: Fiscal 2006 Performance in CTI: Customers and Products
Performance and Plans by Business Area zFiscal 2006 Performance in Computer Telephony Integration (CTI) Customer Product Purpose of Installation Financial A AmiVoice CallScriber Futures transaction compliance MC2 AmiVoice CallScriber Analysis of call scripting in outbound operations (1) Checking for
Slide 24: Fiscal 2006 Performance in Conference Proceedings
Performance and Plans by Business Area zFiscal 2006 Performance in Conference Proceedings As of April 2006 Population, number of Date of legislators Official implementation implement- Objective of implementation ation Number of Population legislators Numazu City Assembly, Shizuoka Prefecture June 20
Slide 25: Fiscal 2007 Plans for Conference Proceedings Business
Performance and Plans by Business Area zFiscal 2007 Plans for Conference Proceedings Business Conference proceedings creation support system Conference proceedings creation support system for private enterprises National Institutions Started test operation at some institutions and will be Conference
Slide 26: AmiVoice Reporter
Performance and Plans by Business Area zBusiness solution performance in fiscal 2006 and plans for fiscal 2007, by product AmiVoice Reporter Record operating report data and interactions with customers in speech and text formats. Support for the creation of operating reports by salesmen working outs
Slide 27: AmiReception
Performance and Plans by Business Area (4) In 2005, Okinawa engaged in an effort to foster business activity through the introduction of electronic commercial transactions. Realizes traceability through speech input into a PDA of such information as the maturity and agrochemical usage of hothouse se
Slide 28: AmiVoice Dialer and AmiVoice Ex BizMail
Performance and Plans by Business Area AmiVoice Dialer Dials internal and external lines, eliminating the need to search for phone numbers. In fiscal 2006, we moved forward with business negotiations regarding handling of AmiVoice Dialer by communication equipment device marketing partners. In fisca
Slide 29: Fiscal 2006 Performance in Mobile Service
Performance and Plans by Business Area zFiscal 2006 Performance in Mobile Service Full-scale launch of service business Voice Domain Service, Inc. (VDS) commenced speech recognition services for mobile telephones (November 2005) VDS established an operational alliance with SearchTeria Co., Ltd. to o
Slide 30: Security Business: Voice Verification
Performance and Plans by Business Area zSecurity business: Voice verification Position speech verification as a biometric Although not as secure as iris patterns, fingerprints, equal pulse, or retina patterns, the use of a keyword allows maintenance of a high level of security. The cost performance
Slide 31: Security Business: Voice Verification System
Performance and Plans by Business Area zSecurity business: Voice verification AmiVoice® Mobile Verification voice verification system for mobile telephones, an ASP service AMI ASP Service Ordinary telephone line Mobile telephones IVR Server Stationary telephones Voice Verification Server Speech Reco
Slide 32: Fiscal 2006 Special Items
Fiscal 2006 Special Items zFactors in revisions to performance figures Goals for license sales were not achieved because delays in securing human resources in turn delayed the startup of our partner sales system. We were unable to reduce selling, general and administrative expenses due to personnel
Slide 33: Operating Organization
Operating organization zOur existing operating organization Our partner marketing system is weak, except in the medical area. We are weak in proposal-based marketing of solutions. zThe future of our operating organization Find and foster capable partners in the business and conference proceedings ar
Slide 34: Important Measures for Fiscal 2007
Important Measures for Fiscal 2007 zExisting businesses Shift to a high profit structure. Incorporate products developed in the course of our solution support into our license business, from outright sale to ASP, and into our service business. Solution Support Business Secure needed human resources,
Slide 35: Sales Forecasts for Fiscal 2007
Sales Forecasts for Fiscal 2007 zNon-consolidated net sales We forecast and have established the goal of increasing net sales by approximately 30% in each business area: Medical, Entertainment & Education, Business, Conference Proceedings, and Call Centers. zNon-consolidated income Because the incre
Slide 36: Reference Materials: Overview of Advanced Media's Operations
Reference Materials: Overview of Advanced Media’s Operations 36
Slide 37: Corporate Profile
Corporate Profile z Company name: Advanced Media, Inc. z Established: December 1997 z Paid-in capital: ¥3,368,870,000 (May 1st 2006) z Address: 48F Sunshine 60 Building, 3-1-1 Higashi Ikebukuro,Toshima-ku, Tokyo 170-6048 z Tel: 03-5958-1031 z Business ally: Multimodal Technologies, Inc. (of the U. S
Slide 38: Business Objectives
Business Objectives Propose and provide speech recognition solutions that create new value Specialize in making speech visible any time, any where, to anyone Offer a framework AmiVoice Speech for convenience and Recognition Engine value Operate a variety of services that are of practical use in bu
Slide 39: Business Model
Business Model Customer (User) End user End user Enterprise user Private consumers (Primarily private consumers) (Companies and clients)s Provide products Service and services Business on Contract Service &Sales Non-end user Content providers, carriers, (Firms that serve end users) and other partner
Slide 40: Business Deployment Design
Business Deployment Design General Fields Focused Fields Copyright Advanced Media, Inc. 40
Slide 41: Points of Differentiation
Points of Differentiation Other ASR companies’ Marketing Mobile Solutions and Services General - Enrollment (Training) required Fields - General-use Language Model Expanding into the Mass Market - Specific Acoustic Model Useful Advanced Media’s Low accuracy, Convenient Marketing Valuable “Learning”
Slide 42: Structure of the AmiVoice Engine
Structure of the AmiVoice Engine Analog sound AmiVoice Engine Output Feature data Acoustical Recognition Speech analysis decoder Text (FE) (DC) Sound Language model model (AM) (LM or RG) Application Dictionary (DT) Copyright Advanced Media, Inc. 42
Slide 43: AmiVoice DSR
AmiVoice DSR Higher quality speech data through DSR The Distributed Speech Recognition (DSR) solution is a speech recognition system that is distributed between the device and the server. Before importing the speech, it is converted into feature data at the client device and then sent in packet form
Slide 44: Speech Recognition Technology Roadmap
Speech Recognition Technology Roadmap Regarding generations: 3G: Capable of working with unspecified 1G: Single-word recognition (1960~) speaker, speed changes, different intonations and accents 4G: Recognition at a distance of 2-3 meters 2G: LVCSR (1991~) 5G: Spontaneous speech, intelligent inferen
Slide 45: Long-Term Goals
Long-Term Goals Change in focus of business activities: volume Æ quality Æ volume Æ quality… – Phase I (1998~) Sales of SR engine (volume) – Phase II (2004~) High-value-added business (volume to quality) – Phase III (2006~) Service business (quality) – Phase IV Platform integration/globalization (qu
Slide 46: Thank you for your interest in Advanced Media, Inc.
Thank you for your interest in Advanced Media, Inc. Copyright Advanced Media, Inc. 46