Take And Give. Needs Co., Ltd. · TSE:4331
Take And Give. Needs — Q3 FY2007 Earnings Presentation
53 slides from Take And Give. Needs's earnings presentation, Feb 20, 2007
Slide 1: Appendix
APPENDIX TAKE and GIVE.NEEDS Co.,Ltd. TSE first section, stock code 4331
Slide 2: Contents
CONTENTS Building-type SPC model A-28 1. Market environment Land purchase and development type SPC model A-29 Venues by category and region A-30 Market size A-1 Trends of marriages and divorces Highly profitable business model with 3 year ROI A-31 A-2 A fragmented market A-3 T&G products sold throug
Slide 3: Appendix -1
Appendix -1
Slide 4: Market size
Market size The wider Wedding party market = ¥2 trillion wedding market 2005 Number of weddings: Children’s goods Honeymoon travel New housing Cars Furniture Insurance 714,265 Jewelry Source: Ministry of Health, Labor and Welfare, 2005 Population Survey Report Gifts Summary (Final count) Loans Cost
Slide 5: Trends in marriages and divorces
Trends in marriages and divorces Number of marriages in Japan: trends and forecast Trends in number of divorces 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 Trends in average age at first marriage Groom Bride A ge Age 1989 28.4 25.9 1994
Slide 6: A fragmented market
A fragmented WHY THE BRIDAL MARKET 2 market A fragmented market An undeveloped market with no large players, composed largely of non-specialist providers Dedicated wedding venues 24% 29% *Source: METI 2005 Survey of Specialized Service Industries A-3
Slide 7: Customer needs and the supply gap
Customer needs and the supply gap Other Hotel / Special venue Other House wedding 4.0 6.2 11.8 Private Restaurant 15.7 11.7 Gap 9.7 Hotel / Special venue Private House wedding Restaurant 78.1% 62.8% Preferred wedding venues Actual wedding venues used *Source: T&G Homepage questionnaire *Source: Zexy
Slide 8: Trends in the wedding market
Trends in the average unit price of weddings Hotel / Special venue House Wedding Potential for house wedding market growth 74.5 76.5 74.1 73.6 69.6 65.0 62.8 Increasing demand for HOUSE WEDDINGS 14.2 15.7 7.6 4.7 2000 2001 2002 2003 2004 2005 2006 * Source: Figures derived from the RECRUIT CO., LTD
Slide 9: Trends in the average unit price of weddings
Trends in the average unit price of weddings Trends in the average price of weddings in the Tokyo metropolitan area (¥ thousand) 3,200 3,122 3,100 3,000 2,938 2,911 2,900 2,892 2,800 2,807 2,798 2,700 2,564 2,632 2,600 2,542 2,500 *Source: Zexy Marriage trends research 2006 Recruit Co., LTD A-6
Slide 10: Wedding related financial support
Wedding related financial support Rate of weddings with financial support from parents 75.3% (Gifts, wedding, wedding reception, wedding parties, honey moon) 75.3% 24.7% Yes No Average amount of financial support National average: ¥1,814 thousand (Gifts, wedding, wedding reception, wedding parties,
Slide 11: Trends in the domestic and overseas resort wedding market
Trends in the domestic and overseas resort wedding market From the Tokyo metropolitan area 8.2% of weddings occurred overseas and 5.2% occurred at domestic wedding resorts 29.2% of wedding couples considered an overseas wedding and 16.9% considered a domestic resort wedding Overseas weddings from th
Slide 12: Trends in the honeymoon market
Trends in the honeymoon market 78.8% of wedding couples had a honeymoon costing an average of ¥521,000 Package tours are the leading type of travel but more than 10% use non-package tours. Average cost of a honeymoon: ¥521,000 Percentage of wedding couples Trends in honeymoons who have a honeymoon (
Slide 13: Bridal esthetic (pre-wedding beauty care)
Bridal esthetic (pre-wedding beauty care) 82.2% of brides used bridal esthetic services costing an average of ¥72,000 26.1% of those spent more than ¥100,000 30.1% used beauty services related to the wedding venue. 60.3 used non venue- related beauty services Average cost of bridal esthetic services
Slide 14: Appendix -2: House wedding business
Appendix -2 House wedding business
Slide 15: Trends in house wedding venue development
Trends in house wedding venue development First priority was to develop know-how from affiliate restaurant operations Development of directly managed venues began in 2001 1998-2000 2001-2002 2003- Tie-up with house- Directly managed venues Nationwide development focusing style restaurants in in Toky
Slide 16: Creating weddings straight out of a glamorous foreign movie
T&G’s house wedding Creating weddings that could be straight out of a glamorous foreign movie Chapel Waiting Rooms 2nd Floor 1st Floor Pool Lounge Kitchen Garden Party Room A-12
Slide 17: T&G's House Wedding: special facilities
T&G’s House Wedding Special facilities to handle everything from the ceremony through to the reception A-13
Slide 18: T&G's House Wedding: finest cuisine and elegant space
T&G’s House Wedding The finest cuisine and the most elegant space A-14
Slide 19: T&G's House Wedding: pools and gardens
T&G’s House Wedding Weddings can be staged by pools and gardens A-15
Slide 20: Elements of T&G's distinctive house weddings
Elements of T&G’s distinctive house weddings 1. Concept 2. Brand 3. Original products 4. Cuisine 5. An abundance of items 6. Quality of planning and service A-16
Slide 21: Distinctive house wedding: Concept
Elements of T&G’s distinct house wedding Concept Concept based on producing ‘a wedding that could have come straight out of a glamorous movie’ Make maximum use of and provide all of the facilities required for a wedding , including the grounds T&G Other Chapel (ceremony room), banquet (reception hal
Slide 22: Distinctive house wedding: Brand
Elements of T&G’s distinct house wedding Brand Pro-active approach with the media to establish the T&G brand Charismatic planners such as Akemi Ariga Media Media attention • Communicating through TV radio commercials mass A variety of attention from the media such as TV Drama advertising and other i
Slide 23: Distinctive house wedding: Original products
At Elements of T&G’s distinct house wedding our weddings are produced with original products and planning Original contents Unique image-related products One-of-a-kind original products Dream child Print out End Roll Flowers, snow machine, audio invitation, etc. Collaborative contents Video messages
Slide 24: Distinctive house wedding: Cuisine
Elements of T&G’s distinct house wedding Cuisine At each of our venues there is a chef trained in French cuisine Unlike traditional wedding ceremony food, we supply an original menu of French cuisine Chef and kitchen staff are full-time employees assigned to a specific venue • As of September 2006,
Slide 25: Distinctive house wedding: An abundance of items
Elements of T&G’s distinct house wedding An abundance of items Affiliated with various vendors nation-wide With no individual responsible for product development, we rely upon all of our staff Various vendors T&G makes use of more vendors than competitors do • We carefully select each product and ma
Slide 26: Distinctive house wedding: Quality of planning and service
Elements of T&G’s distinct house wedding Quality of planning and service One wedding planner for each couple, resulting in a custom-made wedding Frequent consultations with our vendors. Striving for comprehensive quality improvement Custom made Completely custom made We immediately assign one weddin
Slide 27: Business flow
Business flow Inquiries Business flow from inquiry to contract Venue visits 3- 6 months Customer previous Customer Contract signing Information T&G’S Wedding magazine Ceremony Internet Word of mouth T&G Hall Consultations 3 months (4-5) previous Inquire Place advertisements Visit venue Contract Wedd
Slide 28: T&G House wedding business operations
T&G House wedding business operations Affiliated restaurants and directly managed venues On being founded, T&G formed alliances with suitable house-style restaurants in the Tokyo metropolis in order to begin offering house weddings. Building on the restaurant-alliance weddings, T&G’s first house wed
Slide 29: Capacity utilization rate
Capacity utilization rate • In Japan, nearly all wedding receptions are held on Saturdays, Sundays and holidays. • We maintain our luxury concept by handling a maximum of 2 couples per hall per day Capacity Weddings utilization = rate (%) Total operation days (Saturdays, Sundays, holidays) x2 Settin
Slide 30: Venue development model
Venue development model Each step in the process has been systemized for maximum efficiency On-site office 10-12 months 8 months OPEN!! previous previous Venue / Management Determine new site Advertise Build on-site office Begin bookings Design/Construction Staff Recruiting Training/Staffing A-26
Slide 31: Diverse development models
Quick development: Diverse development models Diverse development models + SPC scheme requiring no CAPEX Term land lease model Term building lease model Capital investment required T&G Land purchase model Building type SPC model Capital investment not required Land purchase and development type SPC
Slide 32: Building-type SPC model
Building-type SPC model Scheme with Tokyo Lease (Announced May 19, 2004) Land owner Fixed-term lease contract T&G Fixed-term sub-leasable land contract with condition precedent Fixed-term building lease contract Construction SPC contract Tokyo Leasing Investment (5%) Construction Tokyo Leasing (pare
Slide 33: Land purchase and development type SPC model
Reference Land purchase and development type SPC model T&G or third party Contribution to fund Intermediary body Capital Capital At time of completion: Senior loans Land Beneficiary rights for Post- purchase and completion Mezzanine loans Bridging loans construction sale contract building fund Amort
Slide 34: Classification of venues (as of Dec 31, 2006)
Reference: Classification of venues (As of December 31, 2006) On the balance sheet Off the balance sheet Total Term land lease Term building lease Development type SPC Own land and building Real estate lease SPC Land and Building Fund Inner Tokyo 1 2 1 4 Outer Tokyo 2 2 Ibaraki 2 2 Tochigi 2 2 Kanto
Slide 35: Highly profitable business model with 3 year ROI
Business model: Highly profitable business model with 3 year ROI Business model allows for an after-tax 3-year return • 1 Hall type business model (millions of yen) Investment (1) Standard venue = 3 year return (Construction cost and security deposits 312 Construction cost 270 Security deposit 42 Ne
Slide 36: T&G products sold through directly managed venues
T&G products sold through directly managed venues T&G products sold through directly managed venues Bridal products Customer price list (assumes 80 people) Item Price Remark CEREMONY 200,000 Celebrant Accessories FLOWER PHOTO VIDEO 300,000 Decoration, bouquet 200,000 Album, videos, etc. PRINT 150,00
Slide 37: Appendix -3: Medium-term growth strategy
Appendix -3 Medium-term growth strategy
Slide 38: Overall strategy
Medium-term growth strategy: (1) Overall strategy Building on our wedding business to become a lifestyle company WEDDING (1) WEDDING (2) WEDDING (3) LIFE House weddings Weddings in resort area Wedding –related Lifestyle-related Management business business business A-33
Slide 39: Targets
Medium-term growth strategy: (2) Targets By setting up new businesses around lifestyle changes that occur during the wedding preparation period as a 1st target, T&G is aiming to be a comprehensive lifestyle company Wedding preparation Everyday Pre-marriage period Post-marriage Everyday living life &
Slide 40: Market background
Medium-term growth strategy: (3) Market background Wedding preparation period is characterized by short-term purchasing on a very large scale The database of customers were are building in this market is key for the expansion of associated businesses 3-6 months Wedding ceremony New Pre-wedding Weddi
Slide 41: Medium-term growth strategy
Medium-term growth strategy In addition to venue development we have established our portal site business from this we have accumulated a large and growing database of our customers Venue development business House weddings PORTAL SITE Overseas, Domestic resorts weddings Business GOOD LUCK Corporati
Slide 42: Growth drivers by fiscal year
2006 2009 Until FY ending March 31, 2008, growth will come from the house wedding business From FY ending March 31, 2009 onward, new businesses will be the driver of growth House wedding business New business preparation period FY ending 3/07 FY ending 3/08 FY ending 3/09 A-37
Slide 43: New Businesses
New Businesses
Slide 44: Portal site business: Basic Strategy
Portal site business: Basic Strategy Sougou Seikatsu Co., Ltd. A tool for recruiting customers The expanding database plays a major role in strengthening the group and expanding the customer database Management process Step 1 Step 2 Step 3 Position the site clearly Increase the number of users Combi
Slide 45: Bridal financing business: Basic Strategy
Loans Bridal financing business: Basic Strategy Life Angel Co., Ltd. Long-term goals: acquire a 10% share of the overall wedding market Mission Create the wedding loan market = increase prevalence of installment payments for weddings Lower the cost of weddings targeting those forgoing the ceremony a
Slide 46: Travel business: Basic Strategy
Travel business: Basic Strategy Anniversary Travel Co. Ltd. Travel A tie-up with T&G planners is the key Mission To realize a highly profitable structure using a unique site and a non-store sales network Differentiate ourselves from the ordinary through sales of value-added original products Present
Slide 47: Beauty business: Basic Strategy
Beauty Beauty business: Basic Strategy T&G Beauty Co., Ltd. Aiming for repeat business from the synergies of the Bridal and Beauty businesses Mission Build the skills for capturing repeat business for future Group development Establish a venue development model based on our venue development results
Slide 48: Wedding information services business: Basic strategy
Arranging Wedding information services business: Basic strategy Partner Agent Inc. Marriages Large potential for market expansion by focusing on services that are easily accepted The size of the latent demand and the market’s growth potential Latent The majority of those who delayed marriages still
Slide 49: Appendix -4: Company outline
Appendix -4 Company outline
Slide 50: Business results
Business results (Highlights) Change since FY to 03/2007 Change since FY to 03/2002 FY to 03/2003 FY to 03/2004 FY to 03/2005 FY to 03/2006 FY 2005 FY 2006 (forecast) Net sales (¥million) 2,961 5,275 11,444 21,830 33,962 +55.6% 45,367 +33.6% Ordinary income (¥million) 229 467 1,447 3,501 5,153 +47.2
Slide 51: Stock information
Stock information As of December 31, 2006 Number of shares issued 722,700 Number of shareholders 13,134 Composition of shareholders Major shareholders Yoshitaka Nojiri 152,350 (21.08%) 7.55% WELD Trading Co., Ltd. 48,000 (6.64%) 19.95% 37.89% Japan Trustee Services Bank, Ltd. 41,690 (5.76%) (Trust a
Slide 52: T&G's Profile
Company Take and Give. Needs Co., Ltd T&G’s Profile Name Head Office 106-0031 (Stock code: 4331) 4-12-24 Nishi-Azabu, Minato-ku Tokyo, Japan TEL.+81-3-5469-3070 Board of President & CEO Yoshitaka Nojiri Directors and Director Tetsuya Minobe Auditors Director Daisuke Kiriyama Director Hideki Hayashi
Slide 53: T&G wedding venues
T&G wedding venues Hokkaido Area Hokuriku/Chubu Area GARDEN HILLS GEIHINKAN (Sapporo) ARKANGEL GEIHINKAN (Nagoya) HILLSIDE CLUB GEIHINKAN (Sapporo) 07/3 scheduled ARKCLUB GEIHINKAN (Niigata) Tohoku Area ARVERIR GEIHINKAN (Nagoya) ARVERIR GEIHINKAN (Toyama) ARKANGEL GEIHINKAN (Sendai) ARK CLUB GEIHIN
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