Playmates Toys Limited · HKEX:869
Playmates Toys — FY2016 Earnings Presentation
20 slides from Playmates Toys's earnings presentation, Mar 24, 2017
Slide 1: Playmates Toys Limited 2016 Full Year Results Briefing
Playmates Toys Limited 2016 Full Year Results Briefing 24 March 2017
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation and subsequent discussion may contain forward-looking statements with respect to the financial condition, results of operation and business of Playmates Toys Limited. Such forward-looking statements represent expectations or beliefs concerning future even
Slide 3: Content
Content About Playmates Toys Our Mission Our Latest Performance Operating Environment Our 2016 Results Reflected Financial Performance Looking Forward Playmates Pipeline 3
Slide 4: About Playmates Toys
About Playmates Toys Founded: 1966 First Group listing: 1984 HKSE#0869 – Playmates Toys Limited A leading company in promotional toys Create, design, market & distribute branded products worldwide More information – www.playmatestoys.com 4
Slide 5: Our Mission
Our Mission We strive to create superior shareholder value by selectively investing in proprietary and licensed brands and delivering quality, safe, and innovative toys to the consumers while managing costs prudently to maximize operational leverage. 5
Slide 6: Our Latest Performance
Our Latest Performance 6
Slide 7: Operating Environment
Operating Environment During 2016: Economic and political uncertainties continued to impact businesses in key international markets Major action adventure movies prompted strong competition among boy’s action toys NPD reported US retail toy $ sales up by about 4.7%* but the action figure category re
Slide 8: Our 2016 Results Reflected
Our 2016 Results Reflected TMNT Movie Sequel boosted sales, but not sufficient to offset negative impact from strong competition Higher proportion of sales from outside U.S. Higher R&D expenses for new products and develop new brands to be launched in 2017 Lower recurring operating expenses: lower m
Slide 9: Financial Performance: Income Statement Highlights
Financial Performance Income Statement Highlights HK$ Million 2015 2016 +/-% Revenue 1,551.5 992.9 -36.0 Gross Profit 956.0 595.7 -37.7 Marketing (324.4) (220.1) -32.2 Selling & Distribution (91.1) (68.8) -24.5 Administration (144.5) (131.6) -8.9 Operating Profit 396.1 175.3 -55.7 Profit before taxa
Slide 10: Margin Analysis
Margin Analysis Cost of Sales 100% 90% 38.1% Marketing 40.0% 80% Selling & distribution 70% Administration 60% 20.9% 22.1% 50% Others 5.9% 0.0% 40% 6.9% 9.3% Income Tax 30% 0.4% 7.3% 13.2% Net Profit 20% 6.6% 17.8% 10% 11.1% 0% 2015 2016 Revenue: HK1,551.5M HK$992.9M 10
Slide 11: Revenue Breakdown by Regions
Revenue Breakdown by Regions 2015 2016 1.2 1.8% 2.9% 0.7% 3.7% 0.7% 14.3% 14.5% 5.0% 4.4% 74.9% 75.9% HK1,551.5M HK$992.9M U.S.A. Other Americas Europe Australasia Asia Others 11
Slide 12: Financial Performance: Balance Sheet Highlights
Financial Performance Balance Sheet Highlights HK$ Million 31/12/2015 31/12/2016 Inventories 28.2 15.2 Trade Receivables 311.0 174.8 Cash & Bank Balances 877.5 1,006.5 Net Current Assets 1,087.2 1,087.3 Net Assets 1,133.6 1,126.4 Net Asset per Share (HK$) 0.94 0.93 Gearing Ratio 0.0 0.0 Current Rati
Slide 13: Looking Forward
Looking Forward TEENAGE MUTAAT RingA 13
Slide 14: Looking Forward
Looking Forward Challenges continue in international markets Entertainment-driven competition continues to intensify Though improbable, protectionist measures such as tariffs or border tax could negatively impact procurement and cost structure of entire toy industry 14
Slide 15: Playmates Pipeline
Playmates Pipeline Three New brands to be launched in 2017 Ben 10 Voltron Mysticons Re-imagine TMNT franchise in 2018 Actively pursuing selective new opportunities More to come….. 15
Slide 16: Teenage Mutant Ninja Turtles
Current TV series in Season 5 Launching in Fall 2018, re- imagined, all-new animated series, Rise of the Teenage Mutant Ninja Turtles Continued refreshment of core TMNT categories Developing all-new products to launch with new animated series in 2018 16
Slide 17: Voltron: Legendary Defender
Season One of DreamWorks’ Voltron: Legendary Defender premiered on Netflix in June 2016 to positive reviews Season Two premiered in January 2017 to even Greater viewer excitement Playmates launched all-new Voltron toy line in spring 2017; actively developing product extensions 17
Slide 18: Ben 10
Cartoon Network re-launched Ben 10 in 2016, global rollout in 2017 The original 2006 series spawned: 4 animated TV series 1 animated movie 2 live-action movies Global merchandise success Playmates launching all-new Ben 10 toy line in 2017 18
Slide 19: Mysticons
Brand new animated action TV series developed by Nelvana Studio, Nickelodeon and Topps Company Targeting girls audience, Mysticons tells the epic tale of 4 girls who transform into legendary warriors Scheduled to debut on Nickelodeon in late 2017 19
Slide 20: Thank You!
Playmates Toys Limited Thank You!