Our Business

In FY09/2016 results

FY09/2016 Results

Consolidated FY
(Million yen)
Sales OP RP NP EPS
(Yen)
DPS
(Yen)
BPS
(Yen)
FY09/2015 17,323 1,859 1,939 1,002 430.7 85.0 4,591
FY09/2016 16,499 1,371 1,328 771 325.0 85.0 4,728
FY09/2017 CoE 17,433 1,502 1,537 975 407.4 85.0 -
FY09/2016 YoY (4.8%) (26.3%) (31.5%) (23.0%) - - -
FY09/2017 CoE YoY 5.7% 9.6% 15.7% 26.4% - - -
Consolidated Half-Year
(Million yen)
Sales OP RP NP EPS
(Yen)
DPS
(Yen)
BPS
(Yen)
Q1 to Q2 FY09/2016 8,580 712 708 430 - - -
Q3 to Q4 FY09/2016 7,919 658 620 340 - - -
Q1 to Q2 FY09/2017 CoE 8,676 697 711 454 - - -
Q3 to Q4 FY09/2017 CoE 8,756 804 825 521 - - -
Q1 to Q2 FY09/2017 CoE YoY 1.1% (2.0%) 0.5% 5.5% - - -
Q3 to Q4 FY09/2017 CoE YoY 10.6% 22.1% 32.9% 52.9% - - -

Source: Company data,
FY: Fiscal year, YoY: Year-over-year, CoE: Company estimates

For the fiscal year ended September 2016, sales came in at ¥16,499m (down 4.8% YoY), operating profit ¥1,371m (down 26.3%) and operating profit margin 8.3% (down 2.4 percentage points). Sales for customer support marketing – the mainstay of our business – accounted for 49.3% of total sales, finishing at ¥8,137m (down 15.2%).

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Business Model

Business Model

CMC’s customer base is comprised solely of corporate customers. Our main business is writing and editing technical manuals for one of Japan’s largest automakers. We write manuals for numerous vehicle models sold both domestically and overseas. Specifically, the kind of technical manuals we write are user instruction manuals, and repair manuals for car dealers and repair workshops. Specialist technical knowledge and an ability to use a variety of different forms of expression are required when writing and editing technical manuals. CMC takes the time to train staff that can perform their duties to the highest standard, and such staff are now a key asset of our company. We also utilize the specialist skills of our highly trained staff to provide in-house training and sales promotion support to our customers. A significant advantage of our business model is that we can conduct business with only minimal investment in equipment and facilities.

Our business is comprised of marketing operations and system development operations. In terms of our FY09/2016 results, marketing operations accounted for 89% of total revenue. The core of our marketing operations, writing and editing technical manuals (“customer support marketing”), accounted for 49% of total marketing operations revenue.

Revenue Breakdown(FY09/2016 results)

Revenue Breakdown(FY09/2016 results)

“Internal marketing” refers to in-house training activities, and “external marketing” refers to sales promotion support activities. “Total printing” refers to printing and binding services for technical manuals. Combined with “other” activities, the revenue from all these activities made up the total revenue from marketing operations.
System development operations, which mainly focus on developing software tailored to our clients needs, do not significantly overlap with our marketing operations in terms of the customer bases for the respective operations.
This data clearly shows that CMC’s main source of revenue is writing and editing technical manuals for new vehicles planned for launch by our main customer, a major Japanese automaker. As mentioned above, we also handle the global needs of this customer, writing and editing technical manuals for a diverse range of vehicle models sold in markets all over the world. Different technical manuals with varying content are required depending on each vehicle model’s specifications and the local requirements of the region where the vehicle will be sold. Naturally, because of the international scope of our business, we are also required to produce manuals in various languages.

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