Slide 1: Fiscal Year 2010 First Half Results Presentation
Stock Listing :Tokyo Stock Exchange HAPPINET CORPORATION Code Number :7552 Fiscal Year 2010 First Half Results Presentation November 15, 2010 0
Slide 2: Table of contents
Table of contents First Half of FY2010 Results Summary Change of business results････････････････････････････････ 3 Consolidated results for first half of FY2010 Profit & loss statement･･････････････････････････････････ 4 Balance sheet ･･････････････････････････････････････････ 9 Cash-flow statement
Slide 3: First Half of FY2010 Results Summary
First Half of FY2010 Results Summary Hideo Asatsu Board Director, CFO Senior Managing Director Corporate Management Headquarters 2
Slide 4: Change of business results
Change of business results Fiscal period Interim 1st half of 1st half of 1st half of FY2007 FY2008 FY2009 FY2007* FY2008 FY2009 FY2010 Net Sales ￥million 69,281 76,052 89,829 85,090 168,958 166,778 194,246 Operating profit ￥million 1,157 1,226 930 1,240 1,451 2,137 2,327 Recurring profit ￥million 1,
Slide 5: Profit & loss statement
Consolidated results for first half of FY2010 (1) Profit & loss statement (¥ millions, ¥; rounded down, %, people) 1st half of FY2009 1st half of FY2010 % of total YoY % of total YoY Net sales 89,829 100.0 18.1 85,090 100.0 -5.3 Cost of sales* 79,146 88.1 20.0 74,685 87.8 -5.6 Gross profit 10,683 11
Slide 6: Change by business segment
Consolidated results for first half of FY2010 (1) Profit & loss statement ① Change by business segment ■ Net sales (¥ millions; rounded down, %) Period 1st half of FY2009 1st half of FY2010 FY2009 Segment % of total YoY % of total YoY % of total YoY Toy business* 28,384 31.6 7.5 30,376 35.7 7.0 65,6
Slide 7: Sales by channel
Consolidated results for first half of FY2010 (1) Profit & loss statement ②Sales by channel (¥ millions; rounded down, %) Period 1st half of FY2009 1st half of FY2010 FY2009 Channel % of total YoY % of total YoY % of total YoY Specialty stores* 294 32.8 25.8 295 34.7 0.2 643 33.1 16.4 General mercha
Slide 8: Main business summary
Consolidated results for first half of FY2010 (1) Profit & loss statement ③Main business summary ■ Toy business (¥100millions; rounded down, %) Period 1st half of FY2009 1st half of FY2010 FY2009 Manufacturer % of total YoY % of total YoY % of total YoY Bandai Co., Ltd. 138 48.9 8.6 139 45.9 0.4 327
Slide 9: Sales by video game platform
Consolidated results for first half of FY2010 (1) Profit & loss statement ■Sales by video game platform (¥100millions; rounded down, %) Period 1st half of FY2009 1st half of FY2010 FY2009 Platform % of total YoY % of total YoY % of total YoY PlayStation 3 (PS3) 19 10.0 38.2 23 12.5 20.4 60 13.6 57.4
Slide 10: Balance sheet (assets)
Consolidated results for first half of FY2010 (2) Balance sheet (¥ millions; rounded down, %) 1st half of 1st half of FY2009 FY2009 FY2010 Change (Assets) Current assets 40,585 40,140 41,210 1,069 Cash and deposits 4,206 6,312 6,601 289 Accounts and notes receivable 25,307 22,937 23,360 423 Inventor
Slide 11: Balance sheet (liabilities and net assets)
Consolidated results for first half of FY2010 (2) Balance sheet (¥ millions; rounded down, %) 1st half of 1st half of FY2009 FY2009 FY2010 Change （Liabilities） Current liabilities 28,476 27,436 27,243 -193 Accounts and notes payable 20,738 19,832 20,741 908 Short-term Debt 2,650 2,460 2,390 -70 Defe
Slide 12: Cash-flow statement
Consolidated results for first half of FY2010 (3) Cash-flow statement (¥ millions; rounded down, %) 1st half of 1st half of FY2009 FY2010 Change Cash flows from operating activities Net profit before income taxes 1,016 1,271 255 Depreciation and amortization 417 384 -32 Change in provision for Busin
Slide 13: Reference: Full Year Projections for FY2010
【Reference】 Full Year Projections for FY2010 (¥ millions; rounded down, %) FY2009 FY2010 projection % of total YoY % of total YoY Net sales 194,246 100.0 16.5 200,000 100.0 3.0 Cost of sales 171,779 88.4 17.0 176,000 88.0 2.5 Gross profit 22,467 11.6 12.4 24,000 12.0 6.8 SG&A expenses 20,140 10.4 12
Slide 14: Reference: Full Year Projections by segment
【Reference】 Full Year Projections for FY2010 ■Sales projection by business segment (¥ millions; rounded down, %) Period 1st half of FY2010 FY2009 FY2010 projection Segment % of total YoY % of total YoY % of total YoY Toy business* 30,376 35.7 7.0 65,654 33.8 6.2 65,000 32.5 -1.0 Other business 3,912
Slide 15: Kazuhiko Note, President and COO
First Half of FY2010 Summary for each business Kazuhiko Note President and COO 14
Slide 16: Toy business (1)
First Half of FY2010 Toy business (1) Summary for each business * The figures include those in the other business. Net sales and segment profit The first half in review * Operating profit for FY2008 and FY2009 Segment Net sales Net sales Segment profit profit (million yen) (million yen) 35,000 2,000
Slide 17: Toy business (2): Benefits of Business Structural Reform
First Half of FY2010 Toy business (2) Summary for each business * The figures include those in the other business. Benefits of Business Structural Reform Segment profit and clearance amounts Inventory amounts and inventory turnover rate Clearance am ounts Inve ntory am ounts Segment profit Inventory
Slide 18: Toy business (3): POS operation support system
First Half of FY2010 Toy business (3) Summary for each business POS operation support system Evolution of the business platform Retail stores Back office functions Retail support functions Order management Area analysis Store scorecards POS operation support Real time stock management Planning/propo
Slide 19: Visual and Music business (1)
First Half of FY2010 Visual and Music business (1) Summary for each business Net sales and segment profit The first half in review * Operating profit for FY2008 and FY2009 Segment Net sales Net sales Segment profit profit (million yen) (million yen) Sales 40,000 1,000 With the rise of content 823 di
Slide 20: Visual and Music business (2): Results of WINT Corporation
First Half of FY2010 Visual and Music business (2) Summary for each business Results of WINT CORPORATION (Unit: 100 million yen) 1st half of 1st half of Full- Full-year Improvement improvement FY2009 FY2010 target Net sales 179 143 — — Recurring profit -7.3 -0.1 7.2 10 • There is also ¥250 million/y
Slide 21: Visual and Music business (3): Noteworthy products
First Half of FY2010 Visual and Music business (3) Summary for each business Noteworthy products Visual Visual products products Music products IMX Inc. c/o Star Empire under licensed to Happinet (C)2010EUROPACORP - APIPOULAÏ （Ｃ）アジア・コンテンツ・センター、 PROD - TF1 FILMS PRODUCTION 北京華録百納影視、博報堂DYメディア (C)2009
Slide 22: Video-game business (1)
First Half of FY2010 Video-game business (1) Summary for each business Net sales and segment profit The first half in review * Operating profit for FY2008 and FY2009 Segment Net sales profit (million yen) Net sales Segment profit (million yen) 30,000 1,000 23,671 646 20,000 19,395 18,703 There were
Slide 23: Video-game business (2): Noteworthy products in second half
First Half of FY2010 Video-game business (2) Summary for each business Noteworthy products in second half To be released on November 20, 2010 MONSTER HUNTER PORTABLE 3rd Xbox360 Kinect ¥14,800 (recommended retail price including tax) To be released on December 1, 2010 ¥5,800 (recommended retail pric
Slide 24: Amusement business (1)
First Half of FY2010 Amusement business (1) Summary for each business Net sales and segment profit The 1st half in review * Operating profit for FY2008 and FY2009 Segment Net sales profit (million yen) Net sales Segment profit (million yen) 12,000 1,000 Sales The performance of the toy 10,000 9,341
Slide 25: Amusement business (2): Benefits of Business Structural Reforms
First Half of FY2010 Amusement business (2) Summary for each business Benefits of Business Structural Reforms Segment profit and fixed cost productivity Inventory amounts and inventory turnover rate Segm ent profit Inventory am ounts Fixed cost productivity Inventory turnover rate 10 136 150 20 20 1
Slide 26: Amusement business (3): Kamen Raiders Battle Ganbaride
First Half of FY2010 Amusement business (3) Summary for each business Kamen Raiders Battle Ganbaride Dragon Ball Heroes Synergy through common medals Launched in mid-November 2010 KAMEN RIDER OOO HENSHIN BELT: DX OOO OOO DRIVER 25
Slide 27: Full Year Projections for FY2010
Full Year Projections for FY2010 Kazuhiko Note President and COO 26
Slide 28: Full Year Projection for FY2010 by segment
Full Year Projection for FY2010 Sales projection by business segment (¥ millions; rounded down, %) Period FY2009 FY2010 projection Segment % of total YoY % of total YoY Toy business 65,654 33.8 6.2 65,000 32.5 -1.0 Other business 7,904 4.1 7.8 7,000 3.5 -11.4 Visual and Music business 67,838 34.9 85
Slide 29: Consolidated Projection for FY2010
Full Year Projection for FY2010 Consolidated Projection for FY2010 (¥ millions; rounded down, %) FY2009 FY2010 projection YoY Net sales 194,246 200,000 3.0 Operating profit 2,327 2,600 11.7 Recurring profit 2,513 2,800 11.4 Net profit 1,179 1,400 18.7 28
Slide 30: Xbox360 Kinect
Xbox360 Kinect Seiichi Enomoto Board Director Managing Executive Officer Director of Video Game Division 29
Slide 31: Launch of Xbox360 Kinect
Xbox360 Kinect Launch of Xbox360 Kinect Launch Launch Will Willlaunch launchon onNovember November20, 20,2010 2010 date date Xbox Xbox360 360Kinect KinectSensor: Sensor: ¥¥14,800 14,800 Products Products Xbox Xbox360 3604GB 4GB++Kinect: ¥¥29,800 Kinect: 29,800 to tobe be Xbox Xbox360 360250GB 250GB+
Slide 32: Consolidation of Sales Divisions of Visual and Music Business
Consolidation of Sales Divisions of Visual and Music Business Haruo Kawashima Board Director Senior Managing Director Visual and Music Business and President of WINT CORPORATION 31
Slide 33: Consolidation of sales divisions in April 2011
Consolidation of Sales Divisions of Visual and Music Business Consolidation Consolidationof ofsales salesdivisions divisionsin inApril April2011 2011 New Newbusiness business Happinet Pictures & Music Corporation name Happinet Pictures & Music Corporation name Will Willconsolidate consolidatedistr
Slide 34: Increased sales in the DVD/CD market
Consolidation of Sales Divisions of Visual and Music Business The figures include only those of products Increased sales in the DVD/CD market for sale (do not include rental products). FY2009 FY 2010 (projection) Happinet Company A Pictures& Music 20.0% Corporation Direct deals with 18.1％ Direct dea
Slide 35: Happinet
Happinet