Slide 1: Fiscal Year 2016 First Half Results Briefing
Stock Listing :Tokyo Stock Exchange HAPPINET CORPORATION Code Number :7552 Fiscal Year 2016 First Half Results Briefing November 17, 2016
Slide 2: Table of Contents
目次 of Contents Table FY2016 First Half Results Summary 2 FY2016 First Half Financial Results 8 Future Measures for Distribution Business 19 Future Measures for Content Business 27 FY2016 Full-Year Projection 32 1
Slide 3: FY2016 First Half Results Summary
FY2016 First Half Results Summary Seiichi Enomoto Representative Director President and Chief Operating Officer 2
Slide 4: First Half Results Summary
目次 First Half Results Summary FY2016 (¥ million) First Half of First Half of YOY FY2015 FY2016 Net sales 83,993 72,448 －13.7% Operating income 1,837 844 －54.0% Ordinary income 1,857 741 －60.1% 1,185 329 Profit attributable to owners of parent －72.2% 3
Slide 5: First Half Results Summary: Toy Business
目次 First Half Results Summary FY2016 Toy Business ■ FY2016 First Half Results Summary Certain Bandai character goods, including goods associated with “KAMEN RIDER GHOST” and “MAHO TSUKAI PRECURE!”, performed well, but results fell short of the year-ago level. The Toy Business overall lagged both in
Slide 6: First Half Results Summary: Visual and Music Business
目次 First Half Results Summary FY2016 Visual and Music Business ■ FY2016 First Half Results Summary In an environment where the package market remains sluggish as a whole due to effects of the distribution of software via the Internet, net sales of the Group in this business segment also remained wea
Slide 7: First Half Results Summary: Video-Game Business
目次 First Half Results Summary FY2016 Video-Game Business ■ FY2016 First Half Results Summary In the face of the stagnation of the package market as a whole due primarily to the popularity of software distribution and smartphone games, net sales of the Group in this segment fell short of the year-ago
Slide 8: First Half Results Summary: Amusement Business
目次 First Half Results Summary FY2016 Amusement Business ■ FY2016 First Half Results Summary Capsule toy products for automatic vending machines and products for kids’ card game machines showed weak results mainly due to few leading products. Both sales and income declined from a year ago. ■ First Ha
Slide 9: FY2016 First Half Financial Results
FY2016 First Half Financial Results Toru Shibata Director Executive Officer Head of the Corporate Management Division 8
Slide 10: Consolidated financial highlights
1st half of 1st half of 1st half of 1st half of 1st half of FY2012 FY2013 FY2014 FY2015 FY2012 FY2013 FY2014 FY2015 FY2016 Net sales ￥million 76,211 87,371 93,437 83,993 72,448 176,757 206,867 217,232 187,274 Operating income ￥million 1,007 1,551 2,362 1,837 844 2,973 3,888 5,056 3,450 Ordinary inco
Slide 11: Consolidated results (1) Profit & loss statement
Consolidated results for first half of FY2016 (1)Profit & loss statement (millions of yen, %) 1st half of FY2015 1st half of FY2016 % of total YoY % of total YoY Net sales 83,993 100.0 -10.1 72,448 100.0 -13.7 Cost of sales 73,386 87.4 -9.9 62,911 86.8 -14.3 Gross profit 10,606 12.6 -11.7 9,537 13.2
Slide 12: Profit & loss statement: Change by business segment
Consolidated results for first half of FY2016 (1)Profit & loss statement ①Change by business segment ■ Net sales (millions of yen,%) Period 1st half of FY2015 1st half of FY2016 FY2015 Segment % of total YOY % of total YOY % of total YOY Toy business 34,742 41.4 -12.0 31,585 43.6 -9.1 76,874 41.0 -1
Slide 13: Profit & loss statement: Main business summary
Consolidated results for first half of FY2016 (1)Profit & loss statement ②Main business summary ■Toy business (100millions of yen,%) Period 1st half of FY2015 1st half of FY2016 FY2015 Manufacturer % of total YOY % of total YOY % of total YOY Bandai Co.,Ltd 190 54.9 -14.7 154 48.9 -18.9 419 54.6 -24
Slide 14: Sales of video game platform
Consolidated results for first half of FY2016 (1)Profit & loss statement ■ Sales of video game platform (100millions of yen,%) Period 1st half of FY2015 1st half of FY2016 FY2015 Platform % of total YOY % of total YOY % of total YOY Nintendo 156 77.7 2.9 101 71.2 -35.2 392 78.5 -14.9 SIE* 33 16.4 16
Slide 15: Breakdown of SIE sales
Consolidated results for first half of FY2016 (1)Profit & loss statement ■ Breakdown of *SIE sales (100millions of yen,%) Period 1st half of FY2015 1st half of FY2016 FY2015 Item % of total YOY % of total YOY % of total YOY console 4 13.4 5.7 5 15.5 29.7 10 13.8 -2.7 Stationary Software 9 29.3 67.2
Slide 16: Consolidated results (2) Balance sheet: assets
Consolidated results for first half of FY2016 (2)Balance sheet (millions of yen) 1st half of 1st half of FY2015 FY2015 FY2016 Change (Assets) Cash and deposits 14,992 11,412 12,021 608 Notes and accounts receivable-trade 25,573 22,899 22,767 -131 Inventories 9,643 6,043 8,008 1,964 Advance payments
Slide 17: Consolidated results (2) Balance sheet: liabilities
Consolidated results for first half of FY2016 (2)Balance sheet (millions of yen) 1st half of 1st half of FY2015 FY2015 FY2016 Change (Liabilities) Notes and accounts payable-trade 24,387 18,282 21,039 2,756 Accounts payable-other 2,356 2,461 2,142 -319 Income taxes payable 212 380 183 -197 Provision
Slide 18: Consolidated results (3) Cash-flow statement
Consolidated results for first half of FY2016 (3)Cash-flow statement (millions of yen) 1st half of 1st half of FY2015 FY2016 Change Net cash provided by (used in) operating activities -167 2,470 2,638 Income before income taxes and others 1,853 661 -1,191 Depreciation and amortization 164 213 49 equ
Slide 19: Return to Shareholders
目次 to Shareholders Return In order to increase shareholder return through the implementation of a flexible capital policy and an improvement in capital efficiency in response to changes in the business environment, the Company purchased treasury stock. Description of the purchase of treasury stock
Slide 20: Future Measures for Distribution Business
Future Measures for Distribution Business Yoshiyuki Takahashi Director Executive Officer 19
Slide 21: Toy Business: Second-half measures
目次 Future Measures for Distribution Business Toy Business Second-half measures ◆ Enhance demand forecasting and the buying function to maintain proper stock and reduce disposal losses ◆ Expand sales of major products using original furniture at stores and secure points of sales at prime locations No
Slide 22: Toy Business: Noteworthy products for second half
目次 Future Measures for Distribution Business Toy Business Noteworthy products for the second half “YOKAI WATCH ” “ULTRAMAN ORB” Broadcast from 18:30 on every Friday on the TV Tokyo Broadcast from 9 in the morning every Saturday on the TV network. Tokyo network. DX YOKAI WATCH Dream DX Orb Ring DX En
Slide 23: Visual and Music Business: Second-half measures
目次 Future Measures for Distribution Business Visual and Music Business Second-half measures Expand sales through sales and the promotion sales at home centers and GMSs - A winter sale for major companies from November to January - Special points of sales through VMI in 350 stores nationwide Prom
Slide 24: Video-Game Business: Second-half measures
目次 Future Measures for Distribution Business Video-Game Business Second-half measures Promote orders for major titles in the year-end and New Year shopping season Propose sales with special benefits to major companies to maximize sales - Plan and propose sales with special benefits only for comp
Slide 25: Video-Game Business: Maximize sales of Nintendo Switch
目次 Measures for Distribution Business Future Video-Game Business Second-half measures Maximize sales of Nintendo Switch Noteworthy products for the second half Home-use stationary game console that can be taken out Nintendo Switch is a home-use stationary game console but can be used at places awa
Slide 26: Amusement Business: Second-half measures
目次 Future Measures for Distribution Business Amusement Business Second-half measures Promote sales at event venues - Promote sales of capsule toys at event sites in station buildings. Find new locations. Second-half measures - Examples of new locations Arrival Floor on F1 of Terminal 1 of Kansai I
Slide 27: Amusement Business: Kids' card game machines
目次 Future Measures for Distribution Business Amusement Business Second-half measures Facilitate the launch of four new kids’ card game machines. Noteworthy products for the second half Data Carddass Disney Data Carddass Super Dragonball Heroes APPLI MONSTERS Magic Castle Dream Festival! The total
Slide 28: Future Measures for Content Business
Future Measures for Content Business Shigeki Suzuki Director Managing Executive Officer Head of Content Business Division 27
Slide 29: Visual and Music Business: Second-half measures
目次 Measures for Content Business Future Visual and Music Business Second-half measures Strengthen Happinet’s managed titles as in the first half. Expand the rights business and maximize profits, making the most of content ownership. Noteworthy products for the second half “KISEKI” To be released
Slide 30: Visual and Music Business: Noteworthy products
目次 Future Measures for Content Business Visual and Music Business Noteworthy products for the second half “Flip Flappers” “Shinjuku Swan II” Nationwide release on January 21, 2017 Director: Shion Sono Cast members: Go Ayano Tadanobu Asano Yusuke Iseya Original work: Shijuku Swan by Ken Wakui Broadca
Slide 31: Video-Game Business: Promote new game Age 12
目次 Future Measures for Content Business Video-Game Business Second-half measures Continue to promote the new game “Age 12” to maximize sales - The second season of the animation program started in October. Advertise the game in TV commercials as a sponsor of the program. - Place tie-in articles on
Slide 32: Toy Business: Second-half measures
目次 Future Measures for Content Business Toy Business Second-half measures Focus on girls’ standard toys and standard radio control toys in the Christmas and New Year shopping season, the biggest shopping season of the year, to maximize sales Noteworthy products for the second half “Gemmies” “Wing
Slide 33: FY2016 Full-Year Projection
FY2016 Full-Year Projection Seiichi Enomoto Representative Director President and Chief Operating Officer 32
Slide 34: FY2016 Full-Year Projection
目次 FY2016 Full-Year Projection (¥ million) FY2016 FY2015 YOY projection Net sales 187,274 190,000 1.5% Operating income 3,450 4,000 15.9% Ordinary income 3,497 4,000 14.4% 2,359 2,600 Profit attributable to owners of parent 10.2% 33
Slide 35: Projection by business segment
目次 FY2016 Full-Year Projection ■Sales projection by business segment (¥ million) FY2015 FY2016 FY2016 % of total YoY % of % of total total YoY Toy business 76,874 41.0 -17.6 78,000 78,000 41.1 41.1 1.5 1.5 Visual and Music business 38,367 20.5 -11.5 38,000 38,000 20.0 20.0 -1.0 -1.0 Video-game busin
Slide 36: (Reference) Trends in Results
目次 (Reference) Trends in Results ■Trends in Happinet Group’s consolidated results (100 million yen) 2,172 60 2,068 1,942 1,980 429 2,000 1,908 1,900 51.2 1,872 50.3 1,767 414 50 1,689 1,667 404 426 419 1,606 372 1,557 390 40.0 4Q 1,500 1,404 397 353 39.1 40 37.8 360 341 3Q 781 809 34.9 1,176 1,227 3
Slide 37: (Reference) Return to Shareholders
目次 (Reference) Return to Shareholders Change in the annual dividends per share (¥) Interim dividends Year-end dividends Memorial dividends 30.00 30.00 28.50 27.50 24.75 5.00 22.50 15.00 15.00 15.00 13.50 15.00 11.25 11.25 7.50 13.50 15.00 15.00 11.25 11.25 11.25 7.50 2011.3 2012.3 2013.3 2014.3 2015
Slide 38: (Reference) Information Related to Share Price
目次 (Reference) Information Related to Share Price 2500 120000 Unit: 1000 shares 100000 2000 80000 1500 HN売買高（株） HN sales amount 60000 (shares) （※TOPIX現値） (*Topix current value) 1000 HN終値 HN final value 40000 500 20000 0 0 2011.04 2012.04 2013.04 2014.04 2015.04 2016.04 FY2011 FY2012 FY2013 FY2014 FY