Bellpark Co., Ltd. · TSE:9441
Bellpark — H1 2010 Earnings Presentation
39 slides from Bellpark's earnings presentation, Aug 2, 2010
Slide 1: Results of Operations for the First Half of 2010
Results of Operations for the First Half of 2010 (Six months ended June 30, 2010) August 2, 2010 Bell-Park Co., Ltd. (Stock code: 9441) http://www.bellpark.co.jp/ http://www.bellpark.co.jp Copyright Bell-Park Co., Ltd
Slide 2: Contents
Contents I. Profile of Bell-Park II. First Half of 2010 Financial Highlights III. Outlook for the Operating Environment IV. Medium-term Management Policies V. 2010 Earnings Plan 2 http://www.bellpark.co.jp Copyright Bell-Park Co., Ltd
Slide 3: I. Profile of Bell-Park
Ⅰ. Profile of Bell-Park 3 http://www.bellpark.co.jp Copyright Bell-Park Co., Ltd
Slide 4: Profile of Bell-Park
Profile of Bell-Park Name: Bell-Park Co., Ltd. Business: Mobile phone sales (exclusively for SOFTBANK MOBILE) Founded: February 2, 1993 Headquarters: KDX-Hirakawa-cho Building, 1-4-12 Hirakawa-cho, Chiyoda-ku, Tokyo Stock listing: JASDAQ (Stock code: 9441) since May 25, 2000 10th IPO anniversary Mar
Slide 5: A Record of Consistent Growth
1. A Record of Consistent Growth (million yen) Bell-Park has grown significantly over the 10-year period since its 2000 IPO. (million yen) 60,000 4,000 46,890 56,000 Net sales Ordinary income 3,550 売上高 経常利益 3,500 50,000 Operating forecast for 2010 3,000 40,000 Net sales up 6.5x from 2000 2,800 2,500
Slide 6: Used M&A Strategy to Grow! 14 Transactions
2. Used M&A Strategy to Grow! 14 Transactions SoftBank shop Total: 175 +1 Total: 176 Franchise 1 M&A No. 14 M&A No. 13 50 M&A No. 12 50 M&A No. 11 M&A No. 10 2 1 2 1 M&A No. 9 11 directly directly managed managed 22 M&A No. 8 22 shop was opened shop was opened M&A No. 7 3 (Aeon (Aeon Mall Mall 3 3 M
Slide 7: Number of shops
3. Number of shops Sales and earnings have grown along with the number of shops. (Number of shops) Focusing mainly on operating carrier shops to reflect changing market needs. 200 Low-cost Low-cost shops shops inside inside large large 4 Exceeded170 Exceeded170 180 shops shops opened opened during d
Slide 8: Number of Mobile Phones Sold
4. Number of Mobile Phones Sold 600,000 Planned: 560,000 （Units） In 2009, total sales exceeded 400,000 handsets with the effect of M&A. 500,000 Total: In 2010, M&A contributed to full-year earnings 455,020 We project total sales of 560,000 handsets (53.6% progress rate) 400,000 Total: Sales to Sales
Slide 9: II. First Half of 2010 Financial Highlights
Ⅱ.First Half of 2010 Financial Highlights 9 http://www.bellpark.co.jp Copyright Bell-Park Co., Ltd
Slide 10: As a sales agent for SOFTBANK MOBILE, which has been growing rapidly
As a sales agent for SOFTBANK MOBILE, which has been growing rapidly SOFTBANK SOFTBANK MOBILE MOBILE that that we we handle handle has has greatly greatly increased increased its its market market share share since since entering entering the the mobile mobile communications communications market ma
Slide 11: 1H 2010 Financial Environment Highlights
1H 2010 Financial Environment Highlights - Mobile Communications Industry There was a net increase of 3.09 million in the cumulative number of subscribers at the four communications carriers, 16.3% more than the net increase of 2.66 million subscribers in first half of 2009. - SOFTBANK MOBILE In lig
Slide 12: 1H 2010 Financial Environment Highlights
1H 2010 Financial Environment Highlights 2010 Jan Feb Mar Apr May Jun iPhone price reduction promotion Softbank Mobile’s Promotion for upgrading from 2G mobile major phones to 3G handsets Release promotions of iPhone4 White Plan Student with Family Discount 2010 Further enhancement of profitability
Slide 13: 1H 2010 Financial Highlights
1H 2010 Financial Highlights Major business activities and initiatives Conducted training programs needed to maintain an outstanding workforce Æ SOFTBANK MOBILE hold the second giving awards for outstanding performance by individuals at SoftBank shops. Bell-Park employees received a large number o
Slide 14: 1H 2010 Financial Highlights - Statements of Income
1H 2010 Financial Highlights - Statements of Income (million yen) YoY 1H 2010 Plan Achievement 1H 2009 1H 2010 ratio change (announced Feb. 10) Net sales 20,270 28,638 +41.3% 30,000 95.5% Operating income 1,402 1,615 +15.2% 1,500 107.7% Ordinary 1,392 1,615 +16.0% 1,500 107.7% income Net income 743
Slide 15: Summary of 1H 2010 Financial Results
Summary of 1H 2010 Financial Results (compare to 1H 2009) (million yen, %) 1H 2009 1H 2010 YoY change Remarks Amount Comp. Amount Comp. Amount % 1) Due to an increase in shop numbers, and the strong performances of iPhones and PhotoVision (PV), the number of units sold increased. New purchases: Net
Slide 16: Quarterly Sales and Operating Income of Recent Three Years
Quarterly Sales and Operating Income of Recent Three Years (million yen) *Non-consolidated basis since 2009 1,227 2008年 2009年 2010年 1,078 914 946 Operating income 488 537 476 509 300 174 1Q 2Q 3Q 4Q Sales to new Sales of replacement 96,079 新規 subscribers 機種変更 handsets Number of handsets sold 70,316
Slide 17: Changes in Composition of New-subscriber Sales Channels
Changes in Composition of New-subscriber Sales Channels 100% 3.8% 10.8% 8.1% 4.5% * 16.0% 18.5% 90% 0.3% 7.5% 8.1% 0.4% 3.4% 2.1% 80% 0.8% 0.1% 0.0% 70% 60% 50% 91.4% 84.0% 40% 80.3% 80.4% 79.4% 30% 代理店・量販店営業 Agent/GMS sales 20% 法人営業 Corporate sales 自社ブランドショップ Bell-park brand shops 10% SoftBank Shop
Slide 18: 1H 2010 Financial Highlights - Balance Sheet
1H 2010 Financial Highlights –Balance Sheet (million yen, %) Dec. 31, Jun. 30, Increase/ Comp. Remarks 2009 2010 (decrease) Cash and deposits +522, Trade account Total 16,978 16,104 (874) 100.0 receivable -1,080, Inventories -350, Stock of assets subsidiaries and affiliates -67, Lease deposits +98 T
Slide 19: III. Outlook for the Operating Environment
III. Outlook for the Operating Environment 19 http://www.bellpark.co.jp Copyright Bell-Park Co., Ltd
Slide 20: Outlook for the Operating Environment (1/2)
Outlook for the Operating Environment (1/2) The mobile phone market environment As the number of terminal shipments made within Japan remains at about 30 million, a new category in the form of smartphones, as well as feature phones (conventional-type terminals), has been created, and terminals prod
Slide 21: Outlook for the Operating Environment (2/2)
Outlook for the Operating Environment (2/2) Sales agents’ efforts Natural Selection of SoftBank Shop SoftBank Shop rapidly expanded to 2,700 shops, but they were heavily affected by competition among shops and the unclear economic environment, and as a result of being aggregated into major sales ag
Slide 22: IV. Medium-term Management Policies
IV. Medium-term Management Policies 22 http://www.bellpark.co.jp Copyright Bell-Park Co., Ltd
Slide 23: Fundamental Management Policies
Fundamental Management Policies Corporate Philosophy We strongly believe in our ability, potential and the possibilities of the future. Code of Behavior 1. We aim to be a company where people can constantly grow and refine their skills. We will place importance on fostering a culture of open-minded
Slide 24: The Strengths of Bell-Park
The Strengths of Bell-Park Lanchester’s Laws ¾ A sales agent for only SOFTBANK MOBILE Lanchester’s Lanchester’s Laws Laws are are aa set set of of mathematical mathematical formulas formulas used used toto determine determine - SOFTBANK MOBILE is a rapidly growing carrier the the relative strength o
Slide 25: SoftBank Shops
SoftBank Shops (Shops: Increase in number of shops) 3,000 140 (Shops: Number of SB shops) wth Period of closing uncompetitive shops i d g ro o f ra p SB shops 2,572 120 d 2,500 Increase in P er i o number of shops 100 2,000 80 60 1,500 40 1,000 20 0 500 -20 0 -40 Jun Sep Dec Mar Jun Sep Dec Mar Jun
Slide 26: SoftBank Shop's Market Share
SoftBank Shop’s Market Share In principle, SOFTBANK MOBILE will not approve of new shop openings, and the scope for shop （shops） openings is slim. Shops will continue to be selected and integrated in future. 3,000 2,574 SoftBank Shop shops 2,500 557 shops Others Share: 21.6% 2,000 1,500 2,396 shops
Slide 27: Network Strategy: Locate shops mainly in the Kanto, Tokai and Kansai areas
Network Strategy: Locate shops mainly in the Kanto, Tokai and Kansai areas Bell-Park has 178 SoftBank shops, which handle only the handsets and services of SOFTBANK MOBILE, in 21 prefectures. About 90% of these shops are in the Tokyo, Nagoya and Osaka areas. (as of the end of July 2010) shop operati
Slide 28: Management Policies (1/4)
Management Policies (1/4) ¾Build a highly profitable shop network (1) M&A policy during the current recession When considering a prospective deal, we will a. Take only actions that are not detrimental to financial soundness b. Refuse to pursue growth simply for the sake of growth c. Not continue ope
Slide 29: Management Policies (1/4)
Management Policies (1/4) ¾Build a highly profitable shop network (2) Relocate and remodel shops Bell-Park places priority on making shops larger over the use of M&A deals with doubtful economic benefits. The number of vacant restaurants and other retail locations has increased because of the econom
Slide 30: Build a highly profitable shop network
Build a highly profitable shop network 2010 Jan Feb Mar Apr May Jun Jul Aug Aeon Fuso Apple Aeon Mall SC Premium Aratamabashi （Aichi） Reseller (Aichi) 26 tsubo New Kichijoji store 16 tsubo shop openings Shinjuku (Tokyo) 84 tsubo Kashiwa Seijo Hankyu Sakura Kabe (Chiba) Gakuen Hattori (Chiba) (Tokyo)
Slide 31: Management Policies (2/4)
Management Policies (2/4) ¾Improve the quality of sales (1) Sales activities backed by consulting services Bell-Park shops will act quickly when new products and services are launched so that shops rapidly carry through with the initiatives demanded by SOFTBANK MOBILE. By conducting sales activities
Slide 32: Management Policies (3/4)
Management Policies (3/4) ¾Invest in human resources (1) A recession is an excellent opportunity to recruit talented people Bell-Park recruited 119 new college graduates 2010 in April, an all-time high. This year, we plan to recruit about 65 new graduates. We will hire outstanding people whether the
Slide 33: Management Policies (4/4)
Management Policies (4/4) ¾Preserve a sound financial position Bell-Park maintained a debt-free balance sheet for many years. But in response to the US- originated global financial crisis, we decided to take out loans and establish a credit facility late in 2008. ⇒We procured funds of ¥2.8 billion.
Slide 34: V. 2010 Earnings Plan
V. 2010 Earnings Plan 34 http://www.bellpark.co.jp Copyright Bell-Park Co., Ltd
Slide 35: Points of the 2H 2010 Earnings Plan
Points of the 2H 2010 Earnings Plan Initial For total handset sales volume, including the contribution of new shops Estimates from M&A deals, we have established the ambitious goal of raising sales from 460,000 units in 2009 to 560,000 units in 2010! ⇒Revise total sales projections upwards Initial 5
Slide 36: 2010 Earnings Plan
2010 Earnings Plan (million yen) First-half Earnings Plan Full-year Earnings Plan Status of achievement Progress Rate Results of Achievement (As of the first Results Plan Plan Change 2010 Rate half of the of 2009 year) Net sales 30,000 28,638 95.5% 56,000 51.1％ 46,890 19.4% Operating income 1,500 1,
Slide 37: 2010 Net Sales and Ordinary Income Forecast
2010 Net Sales and Ordinary Income Forecast (million yen) (million yen) 60,000 4,000 46,890 56,000 3,550 売上高 Net sales 経常利益 Ordinary income 3,500 50,000 3,000 40,000 2,800 2,500 30,000 2,000 1,500 20,000 1,000 10,000 500 0 0 2000年 2000 2001年 2001 2002年 2002 2003年 2003 2004年 2004 2005年 2005 2006年 200
Slide 38: We strongly believe in our ability, potential and the possibilities of the future.
We strongly believe in our ability, potential and the possibilities of the future. 38 http://www.bellpark.co.jp Copyright Bell-Park Co., Ltd
Slide 39: Forward-Looking Statements
Forward-Looking Statements All plans, strategies and financial forecasts that are not based on historical facts are forward-looking statements. Such statements are based on the judgment of management in accordance with information available when these materials were prepared. Actual results may diff