Furyu Corp. · TSE:6238
Furyu — FY2020 Earnings Presentation
54 slides from Furyu's earnings presentation, March 2020
Slide 1: Material for briefing financial results, Term ended March 2020
Securities code: 6238 Material for briefing financial results Term ended March 2020 © FURYU Corporation. 1
Slide 2: Index
INDEX 03 Corporate Profile 06 Introduction of Girls’ Trend Business 11 Introduction of Sekaikan Business 15 Overview of Results for FY 3/2020 23 Measures and Earnings Forecast for FY 3/2021 31 Envisioned Growth 36 Value Creation © FURYU Corporation. 2
Slide 3: Corporate Profile
Corporate Profile © FURYU Corporation. 3
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
Slide 5: Business Portfolio
Business Portfolio Girls’ Sekaikan Trend Business Business Game and anime Photo sticker business business 7.8% Net sales: Ratio to total sales: Net sales: Ratio to total sales: 2,132 million yen 7.8％ 9,913 million yen 36.1％ ・Planning, development, and sale of video game software for 23.2% FY 3/2020
Slide 6: Introduction of Girls' Trend Business
Introduction of Girls’ Trend Business ―To make all girls happy― © FURYU Corporation. 6
Slide 7: Photo sticker business 1
Introduction of Girls’ Trend Business (photo sticker business 1) We operate the photo sticker business targeted at young women Photo sticker booths took root as a Japanese culture of women in their 10s and 20s Ratio of female high school students in Japan who have the experience of using a photo sti
Slide 8: Photo sticker business 2: largest market share
Introduction of Girls’ Trend Business (photo sticker business 2) We have the largest share in the photo sticker market Our strengths are marketing and technological capabilities Strength 1 Marketing capability Market share in the number of photo sticker booths Qualitative Group interview 98.0 (Model
Slide 9: Structure of the photo sticker business
Structure of the photo sticker business We earn revenues from supplies and monthly membership charges Monthly membership Supplies business business Sale Provision of Service for obtaining and List price: 2.4 million browsing images yen (tax excluded) per About 135 yen (tax services 300 yen (tax excl
Slide 10: Content and media business: Pictlink
Introduction of Girls’ Trend Business (Content and media business) We operate “Pictlink,” a service for obtaining and browsing the images of photo stickers The number of paid members is nearly equal to the population of female high school students in Japan (*1) Transfer of data to a Downloading of i
Slide 11: Introduction of Sekaikan Business
Introduction of Sekaikan Business ―To satisfy fans around the world with IP― © FURYU Corporation. 11
Slide 12: Introduction of Sekaikan Business
Introduction of Sekaikan Business We plan products utilizing the intellectual property (IP) of popular characters We develop and manufacture a broad range of products, and provide fans around the world with them To offer high-quality Console game content to fans around Books software the world Expen
Slide 13: Character MD business
Introduction of Sekaikan Business (character MD business) We sell stuffed toys and figurines as prizes and EC products Our strengths are the capability of acquiring IP and the capacity to design 2D characters as products Characteristics of this business Production after The third largest Use of IP r
Slide 14: Game and anime business
Introduction of Sekaikan Business (game and anime business) We aim to create hit titles by utilizing other companies’ IP and our original IP Steady business with the titles based on our To invest in handpicked titles and serialize Video games original and other companies’ IP Anime hit titles and est
Slide 15: Overview of Results for FY 3/2020
Overview of Results for FY 3/2020 © FURYU Corporation. 15
Slide 16: Highlights of results for FY 3/2020
Highlights of results for FY 3/2020 We concentrated on the investment in new businesses and the improvement in profit from the game and anime business, and increased sales and profit. The programmatic ad made a good start, and orders for expensive hobby goods increased. The deficit of the game and a
Slide 17: P/L for FY 3/2020
P/L for FY 3/2020 The results for FY 3/2020 were affected by COVID-19, but its effect was limited, and sales and profit grew year on year Through the restructuring of the corporate group, extraordinary income and loss were posted, and income taxes decreased Full-year Full-year Full-year Full-year Y/
Slide 18: Overview of y/y change in each segment
Overview of y/y change in each segment The sales and profit of photo stickers business increased, thanks to the favorable sales of photo sticker booths The sales of the content and media business grew, but profit declined, due to the planned investment in new business development The sales of the ch
Slide 19: Results of each segment - Photo sticker business
Results of each segment－Photo sticker business The total number of plays was healthy until 3Q In 4Q, our performance was affected by the temporary closure of amusement arcades, but the number of plays per year remained healthy 3Q, cumulative 4Q Annual (Apr. to Dec.) (Jan. to Mar.) FY FY Increase/ FY
Slide 20: Results of each segment - Content and media business
Results of each segment－Content and media business The revenue from Pictlink charges increased, as the average spending per customer rose due to the increase of premium members Planned investment in new business development: Net profit/loss: -427 million yen The ad business, including the programmat
Slide 21: Results of each segment - Character MD business
Results of each segment－Character MD business The sales of arcade prize, etc. increased, but the cancellation due to COVID-19 amounted to 271 million yen The sales of expensive hobby goods grew considerably due to the increase of products, but we posted loss due to the upfront investment period 3Q,
Slide 22: Results of each segment - Game and anime business
Results of each segment－Game and anime business The profit of console game software increased, due to the growth of overseas license sale, which is high return As for game apps, we withdrew from the business targeted at men (selling Coreedge), but the profitability of apps for women improved As for
Slide 23: Measures and Earnings Forecast for FY 3/2021
Measures and Earnings Forecast for FY 3/2021 © FURYU Corporation. 23
Slide 24: Measures of each segment - Photo sticker business
Measures of each segment－Photo sticker business Amid the trend of the declining birthrate, we strive to maintain the market and grow stably Efforts to keep the number of Product strategy photo sticker booths in market • To vitalize the entire market by providing a variety of • To improve the revenue
Slide 25: Measures of each segment - Content and media business
Measures of each segment－Content and media business We aim to enhance profitability by increasing average spending per customer while keeping the number of members stable Policies Strategies • To increase the number of paid members stably, • To enhance the strategic integration with the photo rather
Slide 26: Measures of each segment - Character MD business
Measures of each segment－Character MD business In the current term, we will sell products outside Japan, mainly in the Chinese market on a full-scale basis As for expensive hobby goods, we will keep enriching the product lineup, and concentrate on the improvement in production efficiency Arcade priz
Slide 27: Measures of each segment - Game and anime business
Measures of each segment－Game and anime business We aim to create hit titles while controlling costs We aim to move into a black from the game and anime business in the term ending March 2021 Strategies Console game software Game apps Anime • To concentrate on the operation of existing • To serializ
Slide 28: Recent impact of COVID-19 and envisioned business recovery
Recent impact of COVID-19 and envisioned business recovery Recently, the sales of photo stickers and orders for prizes decreased, due to the temporary closure of amusement arcades If the operation of facilities returns to normalcy, our performance will recover swiftly Impact of COVID-19 Envisioned r
Slide 29: Regarding the earnings forecast for FY 3/2021
Regarding the earnings forecast for FY 3/2021 It’s assumed that the operation of amusement arcades will return to normalcy in 2Q As for the full-year business results, annual sales and profit are estimated to drop, mainly due to the decrease in sales from the photo sticker business Assumptions for t
Slide 30: Shareholder return and financial policy
Shareholder return and financial policy While securing the safety of the financial base, we aim to enrich the return to shareholders by paying dividends stably and acquiring treasury shares flexibly We aim to achieve an ROE of 15.0% or higher in FY 3/2024 Results for FY 3/2019 Results for FY 3/2020
Slide 31: Envisioned Growth
Envisioned Growth © FURYU Corporation. 31
Slide 32: Our growth strategies
Our growth strategies We implement growth strategies for Girls’ Trend Business and Sekaikan Business Girls’ Sekaikan Trend Business Business Strengths Basic business model Female Build-to- Manufacturing Marketing Acquisiton customer × capability × Creativity of licenses × order × (Chinese (booking)
Slide 33: Programmatic ad business (growth potential)
Programmatic ad business (growth potential) Thanks to the advance of ad technologies, the programmatic ad market expanded We keep competitive advantage with outstanding contact points with women in their 10s and 20s Scale of the programmatic ad market Over 1 trillion yen (*2) Sales of the photo stic
Slide 34: Programmatic ad business (business model)
Programmatic ad business (business model) We envisage an ad business utilizing a data management platform We utilize the customer data on young women and the creativity nurtured through the existing business for our advertising distribution service Media Trading Ad agency desk*1 DSP *3 × SSP *4 Ads
Slide 35: Creation and development of new businesses
Envisioned corporate growth The basic strategy is to create and develop new businesses In the short term (3-5 years), expensive hobby goods and overseas product sale will contribute to growth In the long term (5 years or longer), the programmatic ad business will contribute to growth Company-wide gr
Slide 36: Value Creation
Value Creation © FURYU Corporation. 36
Slide 37: Vision of FURYU
Vision of FURYU Employees’ strong motivation is essential for creating new entertainment Since business start-up, we have created a variety of new businesses from the photo sticker business Creation of new businesses To motivate employees Expensive Directly hobby Lottery managed goods shops Promotio
Slide 38: System for supporting employees
System for supporting employees We motivate employees, by helping them produce good business results and achieve self-realization We develop a comfortable working environment, and secure diversity such as empowering women Comfortable working Promotion of self-realization environment, diversity DYNAM
Slide 39: Corporate governance
Corporate governance The ratio of outside executives, including a female director, is over 1/3 The supervising function strengthened Composition of executives • A female outside director • Nomination and remuneration committees established 6 in-house 10 4 outside executives executives executives inc
Slide 40: Dialogue with stakeholders
Dialogue with stakeholders We put importance on the dialogue with stakeholders, to actualize sustainable growth For individual investors Customers • To issue correspondence for shareholders once a year Business partners Shareholders • To set basic policies for quality • To formulate guidelines for C
Slide 41: Reference material
Reference material © FURYU Corporation. 41
Slide 42: Market environment (entire amusement market)
Market environment (entire amusement market) The number of shops decreased, but the market expanded thanks to the amendment to the Act Regulating Adults Entertainment Business, etc. and the favorable performance of claw cranes Claw cranes account for about 50% of total sales Variation in the amuseme
Slide 43: Market environment (claw crane market)
Market environment (claw crane market) Due to the amendment to the Act Regulating Adults Entertainment Business, etc., the use by families increased Recently, prize vending game machines for large-sized prizes and sundry goods have increased Variation in the claw crane market [unit: 100 million yen]
Slide 44: Regarding the shift to non-consolidated accounting
Regarding the shift to non-consolidated accounting Shift to non-consolidated accounting in the 3rd quarter of the current term FY 3/2019 ・We’ve Inc. and Coreedge Inc. exist as consolidated subsidiaries ・Shareholding ratio: 100% for We’ve; 75.5% for Coreedge ・Coreedge became a subsidiary through the
Slide 45: Breakdown of extraordinary profit/loss
(For reference) Breakdown of extraordinary profit/loss, etc. FY 3/2019 (consolidated) FY 3/2020 (non-consolidated) [unit: million yen] ・Impairment loss of anime production [unit: million yen] costs: 549 million yen ・Impairment loss of console game Reduction of income taxes development costs through
Slide 46: Variation in major management indicators
Variation in major management indicators FY 3/2016 FY 3/2017 FY 3/2018 FY 3/2019 FY 3/2020 [unit: million yen] (consolidated) (consolidated) (consolidated) (consolidated) (non-consolidated) Net sales 24,167 24,890 25,383 27,134 27,431 Operating profit 3,651 3,920 2,453 3,543 3,637 Ordinary profit 3,
Slide 47: Annual variation in performance of each segment
Annual variation in performance of each segment FY 3/2016 FY 3/2017 FY 3/2018 FY 3/2019 FY 3/2020 [unit: million yen] (consolidated) (consolidated) (consolidated) (consolidated) (non-consolidated) Net sales 24,167 24,890 25,383 27,134 27,431 Photo stickers 8,850 9,090 9,075 9,602 9,913 Content and m
Slide 48: Quarterly variation in performance of each segment
Quarterly variation in performance of each segment FY 3/2019 (consolidated) FY 3/2020 (non-consolidated) [unit: million yen] 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Net sales 6,124 6,581 7,532 6,896 6,002 6,667 7,908 6,853 Photo stickers 2,017 2,403 2,599 2,582 2,343 2,474 2,699 2,395 Revenue from amusement arcades
Slide 49: Balance sheets
Balance sheets Current liabilities 5,024 Cash and deposits Non-current 6 liabilities 12,706 Total assets 24,024 Net assets Other current assets 18,994 7,156 Non-current assets 4,161 Assets Liabilities and net assets unit: million yen © FURYU Corporation. 49
Slide 50: Annual variation in KPI
Annual variation in KPI ■ Total number of plays [10,000] ■ No. of plays at amusement arcades ■ No. of plays at directly managed shops [10,000] [10,000] 5,000 4,539 4,549 5,000 400 4,175 4,250 4,181 4,241 4,212 335 4,059 4,100 3,969 4,000 4,000 298 300 3,000 3,000 212 200 150 2,000 2,000 116 100 1,00
Slide 51: Quarterly variation in KPI
Quarterly variation in KPI ■ Total number of plays [10,000] ■ No. of plays at amusement arcades ■ No. of plays at directly managed shops [10,000] [10,000] 1,600 1,600 100 90 92 82 85 1,277 1,271 80 1,215 1,187 1,178 80 76 1,200 1,124 1,200 1,135 69 1,070 1,0751,079 1,048 977 1,000 993 993 59 919 60
Slide 52: Released console game software
Released console game software Original or Category Console Release date Title external IP Original IP PlayStation®4 May 17, 2018 “Caligula overdose” Original IP Nintendo Switch™ Oct. 4, 2018 “WORK×WORK” Original IP PlayStation®4 Oct. 18, 2018 “CRYSTAR” FY 3/2019 (a total of 7 External IP Nintendo S
Slide 53: Regarding shares (as of Mar. 31, 2020)
Regarding shares (as of Mar. 31, 2020) Total No. of authorized shares 104,400,000 Total No. of issued shares 28,296,000 No. of shareholders 12,153 Shareholder No. of shares held Shareholding ratio [%] Yoshiro Tasaka 3,680,000 13.45 FURYU Shoji Corporation 1,450,000 5.30 The Master Trust Bank of Japa
Slide 54: For inquiries about this material
For inquiries about this material Staff in charge of IR Finance/accounting division Management Dept. FURYU Corporation TEL 03-5728-1761 Email info-ir@furyu.jp In its disclosures, our company’s outlook for business performance included in this material was produced with reference to information avail