Playmates Toys Limited · HKEX:869
Playmates Toys — H1 2017 Earnings Presentation
19 slides from Playmates Toys's earnings presentation, Aug 25, 2017
Slide 1: Playmates Toys Limited 2017 Interim Results Briefing
Playmates Toys Limited 2017 Interim Results Briefing 25 August 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 2017 Interim Results Reflected Financial Highlights 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 manufacturer of 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 | THE —_—
Slide 7: Operating Environment
Operating Environment During the first half of 2017: NPD reported US retail sales of toys grew by about 3%*, Driven partly by major franchises including several competitive action adventure brands * Source: The NPD Group, Inc. / Retail Tracking Service, January-June 2017 7
Slide 8: Our 2017 Interim Results Reflected
Our 2017 Interim Results Reflected TMNT, Ben 10 and Voltron all contributed to 1H 2017 revenue Lower gross profit ratio driven by higher proportion of sales outside U.S. Lower promotional expenses compared to 1H 2016 8
Slide 9: Financial Highlights
Financial Highlights Income Statement HK$ Million 1H2016 1H2017 +/-% Revenue 594.7 322.3 -45.8% Gross Profit 369.4 180.6 -51.1% Marketing (129.1) (75.2) -41.7% Selling & Distribution (42.5) (12.6) -70.4% Administration (59.1) (58.1) -1.7% Operating Profit 138.7 34.7 -75% Profit before taxation 135.1
Slide 10: Margin Analysis
Margin Analysis 100% Cost of Sales 90% 37.9% Marketing 44.0% 80% Selling & 70% Distribution 60% Administration 21.7% 50% 23.3% 7.1% ‐2.8% Others 40% 3.9% 9.9% 30% 18.0% Income Tax 0.6% 6.7% 20% 2.2% 16.0% Net Profit 10% 11.4% 0% 1H2016 1H2017 Revenue: HK$594.7M HK$322.3M 10
Slide 11: Revenue Breakdown by Regions
Revenue Breakdown by Regions 1H 2016 1H 2017 2.2% 2.9% 5.3% 0.9% 3.9% 0.9% 13.0% 19.9% 6.0% 72.5% 66.2% 6.1% U.S.A. Other Americas Europe Australasia Asia Others 11
Slide 12: Financial Highlights
Financial Highlights Balance Sheet HK$ Million 30/06/16 30/06/17 Inventories 37.9 43.7 Trade Receivables 202.8 137.2 Cash & Bank Balances 1,049.8 1,040.0 Net Current Assets 1,120.5 1,027.5 Net Assets 1,172.3 1,086.6 Net Asset per Share (HK$) 0.97 0.90 Gearing Ratio 0.0 0.0 Current Ratio 5.0 5.2 12
Slide 13: Looking Forward
Looking Forward 13
Slide 14: Looking Forward
Looking Forward Strong competitive pressure to persist in rest of 2017 TMNT business will continue to contract year- over-year in transition to the next generation - Rise of the Teenage Mutant Ninja Turtles, launching in Fall 2018 Continued expansion in distribution of new brands – Voltron, Ben 10 a
Slide 15: Current TV series in Season 5
Current TV series in Season 5 TMNT continues to be a major boys action brand ALL NEW animated series, Rise of the Teenage Mutant Ninja Turtles, launching in Fall 2018 15
Slide 16: Voltron: Legendary Defender Season 3 on Netflix
Netflix released Season 3 of DreamWorks Animation series Voltron: Legendary Defender in August 2017 Sustained positive audience reviews since 2016 debut Playmates continues to develop new products 16
Slide 17: Ben 10 re-launch
Cartoon Network re-launched Ben 10 in International markets in Oct 2016; across North America in Apr 2017 Playmates all-new Ben 10 toy line commenced shipment in 1H 2017 Continued development of new products 17
Slide 18: Mysticons new TV series
Brand new TV series by Nelvana Studio, Nickelodeon and Topps Company Targeting girls audience, Mysticons tells epic tale of four girls who transform into legendary warriors Scheduled to debut on Nickelodeon in Fall 2017 Playmates to launch toy line in early 2018 18
Slide 19: Thank You!
Playmates Toys Limited Thank You!