Furyu Corp. · TSE:6238

Furyu — Q2 FY3/2024 Earnings Presentation

52 slides from Furyu's earnings presentation, November 2023

  1. Slide 1: Material for Briefing Financial Results 2Q Term ended March 2024

    Securities code: 6238 Material for Briefing Financial Results 2Q Term ended March 2024 © FURYU Corporation. 1

  2. Slide 2: Index

    INDEX 03 Corporate Profile 06 Overview of Results for FY3/2024 2Q 12 Progress Against Full-Year Forecasts 16 Business Progress and Measures 25 FURYU Medium-term Vision 2027 31 Reference Material Confidential © FURYU Corporation. 2

  3. Slide 3: Corporate Profile

    Corporate Profile © FURYU Corporation. 3

  4. Slide 4: Corporate Philosophy

    Corporate Philosophy Create quality entertainment that brings happiness and fulfillment to people. Each of us acts with visions, and aims to grow ourselves and our company by combining “what I will do” and “what I can do” as individuals and “what we must do” as a company. We will keep pursuing our b

  5. Slide 5: Disclosure segments have been changed from FY3/2024

    Disclosure segments have been changed from FY3/2024 Summary: Change from 4 segments to 3 segments Purpose: To clarify strategies in line with the mid-term vision The following figures apply the segment change to actual sales in FY3/2023 FY3/2023 Net sales ¥36,400mn Character MD Sekaikan Business ・Ar

  6. Slide 6: Overview of Results for FY3/2024 2Q

    Overview of Results for FY3/2024 2Q © FURYU Corporation. 6

  7. Slide 7: 2Q FY3/2024 Highlights

    2Q FY3/2024 Highlights Consolidated Record-high sales in 2Q Net sales : 11.1 billion (YoY 112.8%) Corporate Operating profit : 1.1 billion (YoY 123.0%) Sales remained high level, but the foreign exchange impact Sekaikan pushed down profit Business Net sales : 6.1 billion (YoY 143.1%) Operating profi

  8. Slide 8: Consolidated Overview for FY3/2024 2Q

    Consolidated Overview for FY3/2024 2Q Record-high sales due to strong sales of Sekaikan Business (¥mn) 2Q (July - September 2023) Cumulative total 2Q FY3/2023 2Q FY3/2024 YoY YoY 2Q FY3/2023 2Q FY3/2024 YoY YoY Segment Overview actual actual Change % actual actual Change % Net sales 9,845 11,108 1,2

  9. Slide 9: 2Q FY3/2024 Sekaikan Business Overview

    2Q FY3/2024 Sekaikan Business Overview Strong arcade prizes market and market share increase led to solid sales and profit (¥mn) 2Q (July - September 2023) Cumulative total <Arcade prizes> ・Acquisition and 2Q FY3/2023 2Q FY3/2024 YoY YoY 2Q FY3/2023 2Q FY3/2024 YoY YoY Sekaikan Business commercializ

  10. Slide 10: 2Q FY3/2024 Girls' Trend Business Overview

    2Q FY3/2024 Girls’ Trend Business Overview Profit increased thanks to the benefit of photo sticker price hikes despite a flattish number of games played YoY <Photo sticker : (¥mn) 2Q (July - September 2023) Cumulative total amusement arcades> Girls’ Trend Business 2Q FY3/2023 2Q FY3/2024 YoY YoY 2Q

  11. Slide 11: 2Q FY3/2024 FURYU New Business Overview

    2Q FY3/2024 FURYU New Business Overview While driven by this term's release of "CRYMACHINA”, sales declined due to the significant drop in sales of the movie "LAID-BACK CAMP" released in the previous fiscal year. (¥mn) 2Q (July - September 2023) Cumulative total <Console game software> ・Sales of "CR

  12. Slide 12: Progress Against Full-Year Forecasts

    Progress Against Full-Year Forecasts © FURYU Corporation. 12

  13. Slide 13: Full-year financial forecast Guidance and assumptions

    Full-year financial forecast Guidance and assumptions An upward revision to sales and profit due to strong sales of arcade prizes Compared to FY3/2024 FY3/2024 FY3/2023 Compared to FY3/2024 previous revised actual FY3/2023 previous forecast forecast forecast (¥mn) Net Sales 36,400 39,000 42,000 115%

  14. Slide 14: Changes from the previous forecast (Operating profit)

    Changes from the previous forecast (Operating profit) Analysis of change in operating profit from the previous forecast (¥mn) FURYU New Business Girls’ Trend Business Company-wide costs Sekaikan Business Foreign exchange rate sensitivity: -70 million yen per year FY3/2024 Operating profit +800M FY3/

  15. Slide 15: Forecast of the Number of Plays and Paid PiCTLINK Members

    Forecast of the Number of Plays and the Number of Paid PiCTLINK Members (Reference) Before COVID-19 (FY3/2020) Number of plays and members calculated based on recent results 1.63 million paying members Played 45 million times Recovery is slowing down and is expected to be flat No. of paid members at

  16. Slide 16: Business Progress and Measures

    Business Progress and Measures © FURYU Corporation. 16

  17. Slide 17: Sekaikan Business

    Sekaikan Business © FURYU Corporation. 17

  18. Slide 18: Business Progress and Measures: Sekaikan Business (Arcade prizes)

    Business Progress and Measures : Sekaikan Business <Progress： Arcade prizes> ・Strong performance continues in the AM facility prize game market, especially in urban areas, since 1Q. ・Continued acquiring popular IPs, commercializing them, and implementing measures to maintain high growth in the 3Q an

  19. Slide 19: Business Progress and Measures: Sekaikan Business (Overseas product sales)

    Business Progress and Measures : Sekaikan Business <Progress : Overseas product sales> ・Recognition that overseas markets will continue to grow over the long term ・Orders have been sluggish due to excessive distribution inventories in overseas markets. Aiming to expand sales by developing new distri

  20. Slide 20: Girls' Trend Business

    Girls’ Trend Business © FURYU Corporation. 20

  21. Slide 21: Business Progress and Measures: Girls' Trend Business (Number of Plays)

    Business Progress and Measures : Girls’ Trend Business <Progress: Photo Sticker Machine - Number of Plays> ・A steady increase in the number of plays of models after the photo sticker price hike (75% of total plays) ・Ratio of machines with price hikes continued to increase due to the release of new p

  22. Slide 22: Business Progress and Measures: Girls' Trend Business (PiCTLINK members)

    Business Progress and Measures : Girls’ Trend Business <Progress： PiCTLINK paid members> ・Number of paying subscribers increased moderately ・Steady increase in the number of Premium subscribers ・Monthly fee (excluding tax) = Standard: 300 yen ・Premium: 500 yen *1 *2 （万人） (10,000) PiCTLINK Number of

  23. Slide 23: FURYU New Business

    FURYU New Business © FURYU Corporation. 23

  24. Slide 24: Business Progress and Measures: FURYU New Business

    Business Progress and Measures : FURYU New Business <Progress： Console game software> <Progress： Game apps> ・July 27: Launch of "CRYMACHINA” ・Production of a new caring game "Stellarium of Strong sales with approx. 40,000 units sold in the Fragile Star”, and sequential release of Japan (as of Octobe

  25. Slide 25: FURYU Medium-term Vision 2027

    FURYU Medium-term Vision 2027 © FURYU Corporation. 25

  26. Slide 26: Medium-term vision - Target management indices and quantitative targets

    Medium-term vision－Target management indices and quantitative targets Growth： Sekaikan Business （SKB） Target ROE ：above 15% Management Earnings： management strategy Girls’ Trend Business（GTB） Potential for future： indices Operating profit margin: FURYU New Business（FNB） above 10% 70,000 7,000 Growth

  27. Slide 27: Medium-term vision - Basic policy

    Medium-term vision－ Basic policy Basic policy A comprehensive entertainment company that brings smiles to people around the world Sekaikan Business Girls’ Trend Business FURYU New Business （SKB） （GTB） （FNB） Growth Earning Potential for future ・Acquisition of leading copyrights ・Improving the value o

  28. Slide 28: Approach to improving ROE

    Approach to improving ROE Aim for ROE above 15% in FY3/2028, with awareness to keep the level above the cost of shareholders' equity. FY3/2022 FY3/2023 2028/03 (actual) Policy for increasing ROE (actual) (Target) 12.3％ 7.0％ 15.1％ Keep above 15% Profitability ①Net profit margin on sales 7.4％ Maintain

  29. Slide 29: Shareholder Return Measures and Financial Indicators

    Shareholder Return Measures and Financial Indicators We will pay dividends using a payout ratio of 40% or dividend on equity (DOE) of 5% as reference targets. ROE Payout ratio DOE 80.0% 8.0% 70.0% 70.9% 7.0% 53.4% 6.7% 60.0% 5.0% 5.9% 6.0% 46.8% 56.4% 5.3% 5.1% 50.0% 5.0% 4.8% 49.2% 40.0% 5.0% 4.0%

  30. Slide 30: Shareholder Return and Financial Policy

    Shareholder Return and Financial Policy We aim to increase shareholder return by paying stable dividends and flexibly acquiring treasury shares and to achieve ROE of 15.0% or higher in FY3/2028. FY3/2022 FY3/2023 FY3/2024 Actual Actual Forecast Total number of issued shares 28,296,000 28,296,000 28,

  31. Slide 31: Reference Material

    Reference Material © FURYU Corporation. 31

  32. Slide 32: Initiatives for Sustainability

    Initiatives for Sustainability © FURYU Corporation. 32

  33. Slide 33: Sustainability Policy and the Structure to Promote It

    Sustainability Policy the Structure to Promote It Customers FURYU's corporate philosophy is "Create quality entertainment that brings happiness and fulfilment to people！” We at FURYU will Local society Employees strive to build a relationship of trust with all stakeholders through our business activ

  34. Slide 34: Key Issues and Identification Process

    Key Issues and Identification Process To contribute to a sustainable society through our business activities, we identified key issues to be addressed in FY2019 from among all social issues based on the impact of each of our businesses on the world. We have revised the plan to optimize its contents

  35. Slide 35: Materiality (Important Issues)

    Materiality (Important Issues) Organized into four themes and addressed through our business Provide customers with safety and peace of mind while <Create quality entertainment> Support challenges of future improving quality • Provide customers with safety and peace of generations mind while improvi

  36. Slide 36: Initiatives Related to Materiality

    Initiatives Related to Materiality <Create quality entertainment> Safe, secure, and environmentally • Provide customers with safety and peace of mind while friendly manufacturing improving quality • Give consideration to the environment through business <Implement Dynamic Vision> • Promote the creat

  37. Slide 37: Initiatives Related to Materiality

    Initiatives Related to Materiality <Create quality entertainment> • Provide customers with safety and peace of mind while Dynamic Vision improving quality • Give consideration to the environment through business - FURYU’s unique value shared by all employees - By overlapping what individuals "What y

  38. Slide 38: Initiatives Related to Materiality

    Initiatives Related to Materiality <Create quality entertainment> • Provide customers with safety and peace of mind while Acceptance of workplace tours, on-site classes (vocational lectures) improving quality • Give consideration to the environment through business <Implement Dynamic Vision> • Promo

  39. Slide 39: Initiatives Related to Materiality

    Initiatives Related to Materiality <Create quality entertainment> • Provide customers with safety and peace of mind while Training on Governance improving quality • Give consideration to the environment through business <Implement Dynamic Vision> • Promote the creation of a satisfying work environme

  40. Slide 40: Corporate Governance

    Corporate Governance We established a nomination and remuneration committee, a majority of whose members are independent outside directors. We will strength the Board of Director’s supervising function by raising the weight of independent outside directors to at least 1/3. General meeting of shareho

  41. Slide 41: Dialogue with Stakeholders

    Dialogue with Stakeholders We stress dialogue with stakeholders to realize our sustainable growth. • User interviews (more than 200 times annually) • Help desk • Exchange of opinions at exhibitions • Technical support Customers • Acceptance of students for company visit Local society Employees •Trai

  42. Slide 42: Market Environment (Overall Amusement Market)

    Market Environment (Overall Amusement Market) Trend in the amusement market (operation sales) (100 millions of yen) Photo stickers Claw crane games Other No. of shops (thousand) Source: Japan Amusement Industry Association “Amusement Industry Survey 2021” © FURYU Corporation. 42

  43. Slide 43: Market Environment (Claw Crane Game Market)

    Market Environment (Claw Crane Game Market) Trend in the claw crane game market (100 millions of yen) Sales from operation of amusement facilities Claw crane game prize Source: Japan Amusement Industry Association “Amusement Industry Survey 2021” © FURYU Corporation. 43

  44. Slide 44: Trend in Major Financial Indicators

    Trend in Major Financial Indicators FY3/2017 FY3/2018 FY3/2019 FY3/2020 FY3/2021 FY3/2022 FY3/2023 (¥mn) (consolidated) (consolidated) (consolidated) (non-consolidated) (non-consolidated) (consolidated) (consolidated) Net sales 24,890 25,383 27,134 27,431 24,777 34,058 36,400 Operating profit 3,920

  45. Slide 45: Earnings By Segment (by fiscal year)

    Earnings By Segment (by fiscal year) [Old Segment] [New Segment] FY3/2022 FY3/2023 FY3/2022 FY3/2023 (¥mn) (Consolidated) (Consolidated) (¥mn) (Consolidated) (Consolidated) Net sales 34,058 36,400 Net sales 34,058 36,400 Photo Sticker 7,576 8,689 Sekaikan Business 15,175 16,347 Content and Media 8,3

  46. Slide 46: Earnings By Segment (by quarter)

    Earnings By Segment (by quarter) FY3/2023 FY3/2024 (¥mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Net Sales 8,142 9,845 9,351 9,061 9,974 11,108 Sekaikan Business 3,705 4,286 4,389 3,966 5,572 6,132 Arcade prizes, etc. 2,441 3,115 3,382 2,624 4,270 4,986 Overseas product sales 673 370 446 406 260 268 Expensive hobby

  47. Slide 47: [Reference] Performance by Previous Segment (Quarterly)

    [Reference] Performance by Previous Segment (Quarterly) FY3/2023 FY3/2024 (¥mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Net Sales 8,142 9,845 9,351 9,061 9,974 11,108 Photo Sticker 1,660 2,215 2,393 2,419 1,874 2,189 Revenue from amusement arcades 1,371 1,877 2,056 2,032 1,559 1,826 Revenue from directly managed 28

  48. Slide 48: Trend in KPI (FY)

    Trend in KPI (FY) ■ Total number of plays [10,000] ■ No. of plays amusement arcades [10,000] ■ No. of plays at directly managed shops [10,000] 5,000 4,549 5,000 ） 400 4,539 4,241 4,212 335 4,000 298 4,000 285 3,375 300 3,197 3,090 250 3,018 2,947 2,804 213 3,000 3,000 200 2,000 2,000 100 1,000 1,000

  49. Slide 49: Trend in KPIs (Quarterly)

    Trend in KPIs (Quarterly) ■ Total number of plays [10,000] ■ No. of plays amusement arcades ■ No. of plays at directly managed [10,000] shops [10,000] 950 1,000 100 809 813 81 895 799 75 900 881 800 761 80 72 874 705 701 71 66 61 850 833 600 60 800 400 40 766 767 750 200 20 700 0 0 1Q 2Q 3Q 4Q 1Q 2Q

  50. Slide 50: Console game software, game apps - Main Titles Released

    Console game software game apps - Main Titles Released Original or Type other Console Release date Title company’s IP other PlayStation®4 2022/4/14 Battle Spirits CONNECTED BATTLERS company’s IP Nintendo Switch™ PlayStation®4 FY3/2023 Original PlayStation®5 2022/9/15 TRINITY TRIGGER Rlease Titles Ni

  51. Slide 51: Share Information (as of Sep. 30, 2023)

    Share Information (as of Sep. 30, 2023) Total no. of authorized shares 104,400,000 Total number of issued shares 28,296,000 No. of shareholders 7,268 Shareholding Shareholders No. of shares held ratio (%) FURYU Shoji Corporation 4,340,000 16.41 Custody Bank of Japan, Ltd. (Trust account) 2,819,900 1

  52. Slide 52: For inquiries about this material

    For inquiries about this material IR officer Finance/accounting Division Management Dept Email：info-ir@furyu.jp The disclosed outlook for business performance, including that in this material, was produced based on information available as of the time of announcement. Actual business performance may

FURYU — Q2 FY3/2024 Earnings Presentation on 6ix