Slide 1: Fiscal Year 2017 Results / Mid-term Management Plan Briefing
Stock Listing :Tokyo Stock Exchange Code Number :7552 HAPPINET CORPORATION Fiscal Year 2017 Results／Mid-term Management Plan Briefing May 16, 2018
Slide 2: Table of Contents
Table of Contents ■Full Fiscal Year 2017 Results Summary ２ ■Full Fiscal Year 2017 Financial Results ８ ■8th Mid-term Management Plan 18 ■Reference 37 1
Slide 3: Full Fiscal Year 2017 Results Summary
Full Fiscal Year 2017 Results Summary Seiichi Enomoto Representative Director President and Chief Operating Officer 2
Slide 4: Full Fiscal Year 2017 Results Summary
Full Fiscal Year 2017 Results Summary (millions of Yen) Full Fiscal Full Fiscal YOY Year 2016 Year 2017 Net sales 174,059 197,607 13.5% Operating profit 3,698 4,806 30.0% Ordinary 3,479 4,701 35.1% profit Profit attributable to owners of parent 2,040 4,031 97.6% 3
Slide 5: FY2017 Results Summary: Toy Business
FY2017 Results Summary Toy Business Net sales ratio ■FY2017 Results Summary 36.1％ Bandai products, including “KAMEN RIDER Net sales Segment income BUILD” and “HUGTTO! PRECURE,” (millions of yen) performed well. However, in the year-end shopping season, which is the largest 93,270 shopping season, to
Slide 6: FY2017 Results Summary: Visual and Music Business
FY2017 Results Summary Visual and Music Business Net sales ratio 21.5％ ■FY2017 Results Summary Both net sales and segment income increased Net sales Segment income year on year with the inheritance of part of the (millions of yen) rights and duties related to SEIKODO Co., Ltd.’s music & visual packa
Slide 7: FY2017 Results Summary: Video-Game Business
FY2017 Results Summary Video-Game Business Net sales ratio 31.9％ ■FY2017 Results Summary Both sales and segment income significantly Net sales Segment income exceeded the previous fiscal year’s results (millions of yen) thanks to the big hits of the hardware of “Nintendo Switch,” which was launched
Slide 8: FY2017 Results Summary: Amusement Business
FY2017 Results業績概況 2018年３月期 Summary Amusement Business Net sales ratio ■FY2017 Results Summary 10.5％ Although card game products experienced a slump, capsule toys acquired excellent locations Net sales Segment income such as expressway service areas, stations, and (millions of yen) large-scale shopp
Slide 9: Full Fiscal Year 2017 Financial Results
Full Fiscal Year 2017 Financial Results Toru Shibata Director Executive Officer Head of the Corporate Management Division 8
Slide 10: Changes in business results
Changes in business results FY2013 FY2014 FY2015 FY2016 FY2017 notes Net sales \million 206,867 217,232 187,274 174,059 197,607 Operating profit \million 3,888 5,056 3,450 3,698 4,806 Ordinary profit \million 3,917 5,124 3,497 3,479 4,701 Profit attributable to \million 2,466 4,049 2,359 2,040 4,031
Slide 11: Consolidated results (1) Profit & loss statement
Consolidated results (1)Profit & loss statement （millions of Yen,%） Full Fiscal Year 2016 Full Fiscal Year 2017 (from Apr.1,2016 to Mar.31,2017) (from Apr.1,2017 to Mar.31,2018) % of total YoY % of total YoY Net sales 174,059 100.0 -7.1 197,607 100.0 13.5 Cost of sales * 152,087 87.4 -8.0 174,726 88
Slide 12: Changes by business segment
Consolidated results (1)Profit & loss statement ① Changes by business segment ■ Net sales （millions of Yen,%） Full Fiscal Year 2015 Full Fiscal Year 2016 Full Fiscal Year 2017 Period (from Apr.1,2015 to Mar.31,2016) (from Apr.1,2016 to Mar.31,2017) (from Apr.1,2017 to Mar.31,2018) Segment % of total
Slide 13: Main business summary
Consolidated results (1)Profit & loss statement ② Main business summary ■ Toy business （100millions of Yen,%） Full Fiscal Year 2015 Full Fiscal Year 2016 Full Fiscal Year 2017 period (from Apr.1,2015 to Mar.31,2016) (from Apr.1,2016 to Mar.31,2017) (from Apr.1,2017 to Mar.31,2018) Ｍanufacturer % of
Slide 14: Consolidated results (1) Profit & loss statement
Consolidated results (1)Profit & loss statement ■ Sales of video game platform （100millions of Yen,%） Full Fiscal Year 2015 Full Fiscal Year 2016 Full Fiscal Year 2017 period (from Apr.1,2015 to Mar.31,2016) (from Apr.1,2016 to Mar.31,2017) (from Apr.1,2017 to Mar.31,2018) Ｍanufacturer % of total Yo
Slide 15: Breakdown of Nintendo sales
Consolidated results (1)Profit & loss statement ■ Breakdown of Nintendo sales （100millions of Yen,%） Full Fiscal Year 2015 Full Fiscal Year 2016 Full Fiscal Year 2017 period (from Apr.1,2015 to Mar.31,2016) (from Apr.1,2016 to Mar.31,2017) (from Apr.1,2017 to Mar.31,2018) Item % of total YoY % of to
Slide 16: Consolidated results (2) Balance Sheet
Consolidated results (2)Balance Sheet （millions of Yen,%） Full Fiscal Full Fiscal Year 2016 Year 2017 Changes (As Mar.31,2017) (As Mar.31,2018) (Assets) Cash and deposits 11,605 11,458 -147 Notes and accounts receivable - trade 28,258 36,979 8,720 Inventories 6,300 8,028 1,728 Advance payments-trade
Slide 17: Consolidated results (2) Balance Sheet
Consolidated results (2)Balance Sheet （millions of Yen,%） Full Fiscal Full Fiscal Year 2016 Year 2017 Changes (As Mar.31,2017) (As Mar.31,2018) (Liabilities) Notes and accounts payable-trade 21,550 27,785 6,234 Accounts payable-other 2,184 3,447 1,262 Income taxes payable 624 1,476 851 Provision for
Slide 18: Consolidated results (3) Statements of cash flows
Consolidated results (3)Statements of cash flows （millions of Yen,%） Full Fiscal Full Fiscal Year 2016 Year 2017 Changes profit before income taxes 3,047 5,823 2,776 Depreciation 440 350 -90 Impairment loss 18 - -18 Amortization of goodwill - 11 11 Share of loss of entities accounted for using equit
Slide 19: 8th Mid-term Management Plan
8th Mid-term Management Plan Seiichi Enomoto Representative Director President and Chief Operating Officer 18
Slide 20: Past Performances
Past Performances Amusement Video-game Visual and Music Toy Ordinary Profit 100 millions of yen 2,172 60 1,980 2,068 2,000 1,942 51.2 1,976 1,908 50.3 1,872 1,767 1,740 47.0 50 768 932 656 773 714 691 39.1 1,500 768 737 40 746 30.3 34.9 34.7 424 30.8 30 1,000 25.1 433 577 557 429 383 348 678 448 20
Slide 21: Summary of 7th Mid-term Management Plan: Group-wide Main Policy
Summary of 7th Mid-term Management Plan <Group-wide Main Policy> Further expand the growth of the distribution business and select and concentrate on the manufacturing business Main policy 1 (distribution business） By making use of the strength of the business unit, aim for sustainable growth and th
Slide 22: Summary of 7th: Main policy 1 (distribution business)
Summary of 7th Mid-term Management Plan Main policy 1 (distribution business) By making use of the strength of the business unit, aim for sustainable growth and the expansion of business domains In the toy business, we focused on In the visual and music business, we expanding our dealings with hobby
Slide 23: Summary of 7th: Main policy 2 (manufacturing business)
Summary of 7th Mid-term Management Plan Main policy 2 (manufacturing business) Improve profits by focusing on competitive markets to step up to a new growth stage In the visual and music business, we focused on Through the capital and business alliance with animations and Japanese movies and created
Slide 24: Summary of 7th: Main policy 3 (administration and management system)
Summary of 7th Mid-term Management Plan Main policy 3 (administration and management system) Implement system innovations to respond to changes in the management and business environments Achieved more efficient delivery Implemented shareholder return policies. operation due to the relocation of ■ P
Slide 25: Evaluation of the 7th mid-term management plan
Summary of 7th Mid-term Management Plan Evaluation of the 7th mid- Aiming for the 8th Mid-term term management plan management plan The earning rate was improved due to the strengthening of existing business domains. Further strengthen the efforts made in the 7th mid- Results ・Distribution business
Slide 26: Shinka2020
8th Mid-term Management Plan “Shinka2020” Improve corporate value through “Shinka” (advancement, deepening, and true value of business style) Under the belief of “Contribute to the realization of people’s happiness,” Happinet Group aims to provide prosperous lifestyles while actively communicating (
Slide 27: Shinka2020
8th Mid-term Management Plan “Shinka2020” Improve corporate value through “Shinka” (advancement, deepening, and true value of business style) Main policy 1 Achieve “Shinka” in the distribution business, aiming for further growth Main policy 2 Create business networks to strengthen the manufacturing
Slide 28: Strategy by business: planning, distribution and services
8th Mid-term Management Plan Planning and Intermediate Sales and services development distribution Strengthen our efforts with Increase original Create new service Toy the Bandai Group and products other manufacturers styles Visual and Music Strengthen the manufacturing business, Enter the live and
Slide 29: 8th Mid-term Management Plan: Toy Business
8th Mid-term Management Plan Toy Business Deepen strategic partnerships with partner companies to expand the distribution share Strengthen sales capabilities/Strengthen cooperation with manufacturers/Strengthen planning of optimal Promote development of selling spaces and sales promotion plans new p
Slide 30: 8th Mid-term Management Plan: Visual and Music Business
8th Mid-term Management Plan Visual and Music Business Aim for the advanced visual and music business through distribution business model innovation, the strengthening of the manufacturing business, and challenges for the expansion of business domains Domestic visual and music (packages) Intermediat
Slide 31: 8th Mid-term Management Plan: Video-Game Business
8th Mid-term Management Plan Video-Game Business To achieve the transition of the revenue model, strengthen cooperation with partners outside the company and deepen the business model © Nintendo / Creatures / GAME FREAK / TV Tokyo / ShoPro / JR Kikaku © Pokémon © 2017 Nintendo © 2017 Nintendo Minecr
Slide 32: 8th Mid-term Management Plan: Amusement Business
8th Mid-term Management Plan Amusement Business Strengthen and enhance the business foundation through the creation of new demand and an advanced operating style Introduce products according to the characteristics of each location Streamline the circulation operation for replenishment Have products
Slide 33: Main policy: Actively try new businesses
8th Mid-term Management Plan Main policy 3 Actively try new businesses Research businesses Entertainment market in surrounding markets Surrounding markets of the current business Event Make use of synergy Hobby effects in the four main planning businesses Toy Amusement Visual Video- and Live Game Sm
Slide 34: Happinet will aim for further growth together with stakeholders
8th Mid-term Management Plan Happinet will aim for further growth together with stakeholders End-users Manufacturers Retail stores ・An environment that allows active challenges for new things ・Revitalize the entertainment ・Assessment and handling market of human resources ・Strengthen networking Empl
Slide 35: Dividend policies
8th Mid-term Management Plan Dividend policies Interim dividends 40.00 40.00 Year-end dividends 35.00 Commemorative/Special dividends 10.00 30.00 5.00 28.50 20.00 24.75 22.50 15.00 15.00 15.00 15.00 11.25 13.50 20.00 13.50 15.00 15.00 15.00 11.25 11.25 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017（Plan)
Slide 36: 8th Mid-term Management Plan: Toward highest-ever ordinary income
8th Mid-term Management Plan 100 millions of yen Toward the highest-ever ordinary income of 5.6 Net sales Ordinary profit billion yen 60 56.0 2,000 51.2 47.0 48.0 50 1,500 39.1 40 30.8 Future 34.9 34.7 2,300 2,300 vision 2,172 30 1,000 2,068 1,976 1,767 1,872 1,740 20 500 10 0 0 FY2012 FY2013 FY2014
Slide 37: Net sales and operating profit targets
8th Mid-term Management Plan We will pursue our efforts with the aim of achieving the highest-ever gains in FY2020. (millions of Yen) Full Fiscal Full Fiscal Full Fiscal Year 2017 Year 2018 Year 2020 Net sales 197,607 230,000 230,000 Operating 4,806 5,000 5,800 profit Ordinary 4,701 4,800 5,600 prof
Slide 38: Projections for Full Fiscal Year 2018
Projections for Full Fiscal Year 2018 ■Net sales projection by business segment （millions of Yen,%） Full Fiscal Year 2017 Full Fiscal Year 2018 (from Apr.1,2017 to Mar.31,2018) (from Apr.1,2018 to Mar.31,2019) % of total YoY % of total YoY Toy business 71,403 36.1 -3.2 72,000 31.3 0.8 Visual and Mus
Slide 39: Notes and inquiries
Notes This material is for informational purposes only, and is not intended to solicit any action. This document (including the performance plan) was prepared by Happinet based on the information currently available, however it contains risks and uncertainties. Happinet accepts no liability for the