Take And Give. Needs Co., Ltd. · TSE:4331
Take And Give. Needs — FY2007 Earnings Presentation
49 slides from Take And Give. Needs's earnings presentation, May 24, 2007
Slide 1: Corporate Presentation: Financial results FY ended March 31, 2007
Corporate Presentation Financial results: Fiscal year ended March 31, 2007 May 24, 2007 TAKE AND GIVE. NEEDS Co., Ltd. TSE 1ST SECTION: 4331 www.tgn.co.jp
Slide 2: Results for FY ended March 31, 2007
Results for FY ended March 31, 2007 SUMMARY OF CONSOLIDATED FINANCIAL REPORT TAKE AND GIVE. NEEDS Co., Ltd. TSE 1ST SECTION: 4331 www.tgn.co.jp
Slide 3: Summary of Consolidated Financial Report
Results for FY ended MARCH 31, 2007 Financial results: Fiscal year ended March 31, 2007 SUMMARY OF CONSOLIDATED FINANCIAL REPORT
Slide 4: Consolidated results for FY ended March 31, 2007
Consolidated results for FY ended March 31, 2007 Financial Highlights (PL) (million yen) Financial Highlights (CF) (million yen) FY ended FY ended March 31, 2007 March 31, 2007 Cash flows from operating activites-(1) 4,965 Income Statement Net sales 46,417 Cash flows from investing activites-(2) -11
Slide 5: Summary of Non-Consolidated Financial Report
Results for FY ended MARCH 31, 2007 SUMMARY OF NON-CONSOLIDATED FINANCIAL REPORT
Slide 6: Summary of financial statements: (1) PL
Summary of financial statements: (1) PL Income statement highlights (million yen) FY ended FY ended Quarterly results of FY to 3/2007 March 31, March 31, Change 1Q 2Q 3Q 4Q 2006 2007 Net sales 33,962 45,833 +35.0% 10,242 9,410 13,354 12,825 Gross profit 18,617 24,573 +32.0% 5,687 5,285 7,059 6,541 G
Slide 7: Summary of financial statements: (2) Results by segment
Summary of financial statements: (2) Results by segment Sales by segment (million yen) FY ended FY ended Change% March 31, 2006 March 31, 2007 Net sales 33,962 100.0% 45,833 100.0% +35.0% Directly managed venues 30,433 89.6% 41,752 91.1% +37.2% Restaurant alliances 2,532 7.5% 2,741 6.0% +8.3% Other
Slide 8: Summary of financial statements: (3) BS/CAPEX/CF
Summary of financial statements: (3) BS/CAPEX/CF Assets, etc. (million yen) As of As of Quarterly results of FY to 3/2007 Change March 31, 2006 March 31, 2007 1Q 2Q 3Q Total assets 19,212 32,340 +13,128 19,993 26,609 30,916 Shareholders' equity 11,865 15,676 +3,810 12,408 12,979 14,468 Shareholders'
Slide 9: Trends in sales and gross profit ratio
Trends in sales and gross profit ratio The gross profit ratio decreased as a result of sales initiatives aimed at achieving planned sales targets. Sales initiatives are being reviewed and increasing in-house production of products is being considered in addressing the key issue of improving profitab
Slide 10: Two-year trend in gross profit ratio
Two-year trend in gross profit ratio The gross profit ratio in the FY to 3/2007 decreased due to sales initiatives aimed at securing orders FY ended FY ended March 31, 2006 March 31, 2007 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q T&G Total 54.8% 54.8% 54.7% 55.1% 55.5% 56.2% 52.9% 51.0% Directly managed gross profit
Slide 11: House weddings: Unit price and utilization ratio
House weddings: Unit price and utilization ratio The utilization ratio improved in the FY to 3/2007. However, the average unit price decreased due to: the impact of sales initiatives to secure orders; the number of small-party weddings arranged, and; regional characteristics (weddings in some region
Slide 12: House weddings: Existing venues
House weddings: Existing venues The number of weddings handled increased. However the unit price decreased as a result of sales initiatives. Net sales and gross profit ratio were affected. Efforts are underway to reduce costs. However, ordinary income decreased year on year. FY ended FY ended March
Slide 13: House weddings: Quarterly comparison of existing venues
House weddings: Quarterly comparison of existing venues to previous fiscal year Although sales improved in the 4th quarter after initiatives to recapture the declines of the first half of the fiscal year, results for the full year were lower than for the previous year. Change from FY ended March 31,
Slide 14: House weddings: Trends in the number of venues by region
House weddings: Trends in the number of venues by region Nation-wide venue expansion went as planned in the year to March 2007. Leading position as the house wedding market share expands in the wedding ceremony market. FY to 3/2002 FY to 3/2003 FY to 3/2004 FY to 3/2005 FY to 3/2006 FY to 3/2007 Hal
Slide 15: Trends in the number of weddings handled and venues
Trends in the number of weddings handled and the number of venues Implemented nationwide rapid venue development from 2004 Completed as planned in FY to 3/2007 with 58 venues and 84 halls. Future venue development will be carefully selected on a market-by-market basis. FY to 3/2003 FY to 3/2003 FY t
Slide 16: Trends in sales at new and existing venues per hall
House weddings: Trends in sales at new and existing venues per wedding hall Existing hall sales ratio increased due to the expansion of scale. In FY to 3/2007, existing hall sales declined as a result of underperformance in certain regions and sales initiatives implemented to procure orders, and des
Slide 17: Affiliate restaurants: Financial results
Affiliate restaurants: Financial results Steady growth in sales, number of weddings handled and unit price in FY to 3/2007. (million yen) (million yen) Net sales (million yen) Restaurants at term end Number of operated months Monthly average sales (million yen) Weddings Price per wedding (Thousand y
Slide 18: Trends in the SG&A ratio
Trends in the SG&A ratio The rent ratio increased with the implementation of the SPC scheme in January of 2005. Both the pre-opening preparation expense ratio and the management expense ratio decreased. As a result of efforts to reduce other costs, the SG&A ratio decreased 0.1 percentage points. Imp
Slide 19: Trends in ordinary income
Trends in ordinary income The gross income ratio dropped 1.2 percentage points. However, as a result of the 1.0 percentage point drop in the SG&A ratio, the ordinary ratio decreased 0.2 percentage points compared to the previous fiscal year. (million yen) FY to 3/2002 FY to 3/2003 FY to 3/2004 FY to
Slide 20: BS: (1) Assets
BS: (1) Assets Assets (million yen) As of As of Change March 31, 2006 March 31, 2007 Total current assets 3,611 8,867 +5,256 5,638 Increase following rise in debt Cash and cash deposits 2,877 +2,761 Short-term loans 10 2,370 +2,360 Increase resulting from loans to affiliates Trade accounts receivabl
Slide 21: BS (2) Liabilities and net assets
BS (2) Liabilities and net assets Liabilities and net assets (million yen) As of As of Change March 31, 2006 March 31, 2007 Current liabilities 7,347 16,664 +9,317 Total current liabilities 7,010 10,574 +3,564 Trade accounts payable 1,852 2,903 +1,050 For acquisition of land and investments in subsi
Slide 22: Statement of cash flows
Statement of cash flows Cash flows (million yen) FY ended FY ended Change March 31, 2006 March 31, 2007 Cash flows from operating activites 4,277 5,657 +1,379 Income before income taxes 5,059 7,264 +2,205 Depreciation and amortization 724 912 +187 Income taxed paid -2,154 -2,261 -107 Other 648 -258
Slide 23: Trends in CAPEX and cash flows
Trends in CAPEX and cash flows Large decrease in CAPEX as a result of the increase in venues opened under the SPC scheme in FY to 3/2005 and FY to 3/2006. In FY to 3/2007, CAPEX increased from an increase in the number of new T&G venues with our own land and buildings and also due to free cash flow.
Slide 24: Trends in ROE/ROA/Shareholders' equity/Interest-bearing debt ratio
Trends in ROE/ROA/Shareholders’ equity/Interest-bearing debt ratio In FY to 3/2007, interest-bearing debt increased partly as a result of investments in T&G venues where land and buildings are owned. ROE Shareholders' equity ratio Interest-bearing debt ratio FY to 3/2002 FY to 3/2003 FY to 3/2004 FY
Slide 25: Outline of T&G Group companies as of March 31, 2007
Outline of T&G Group companies as of March 31, 2007 Net sales Ordinary loss (million yen) (million yen) Portal site SOUGOU SEIKATSU Co., Ltd. 173 26 Est.: July 2005 100% subsidiary Loans LIFE ANGEL co., Ltd. 62 26 Est.: July 2005 100% subsidiary Travel Anniversary Travel Co., Ltd. 54 47 Est.: Februa
Slide 26: Portal site business
Group companies (1) SOUGOU SEIKATSU Portal site business Activities in FY to 3/2007 : SNS Q&A 1. Developed infrastructure of portal site (Contents planning and systems planning) 2. Developing into a CGM* style site (Q&A, recommended background music, cuisine, entertainment, MONO MAGAZINE, etc) BLOG
Slide 27: Financing business
Group companies (2) LIFE ANGEL Financing business Activities in FY to 3/2007: 1. Built infrastructure and established know-how Improve the operation systems base 2. Created operating structures to expand our business partners 3. Prepared advertising initiatives to recruit regular customers 4. Prepar
Slide 28: Travel business
Group companies (3) Anniversary Travel Travel business Activities in FY to 3/2007: 1. Business from T&G’s customers Sales generated from connections with wedding planners 2. Business developments to recruit regular customers Improved website contents Prepared web based advertising 3. Development of
Slide 29: Marriage arrangement services business
Group companies (4) Partner Agent Marriage arrangement services business Reception Activities in FY to 3/2007: 1. Established: September 2006 2. Venue openings Shinjuku, Yokohama, Omiya (April 2007) 3. Began introductory services Industry’s first personal consultant service 4. Implemented measures t
Slide 30: Beauty business
Group companies (5) T&G Beauty Beauty business Activities in FY to 3/2007: 1.New venues Daikanyama, Fukuoka, Osaka, Omotesando, Kobe, Akasaka 2. Business model Build venues to expand customer base Experiment to establish pricing 3. Improve brand awareness and repeat ratio Advertising (magazines and
Slide 31: Outlook for FY ending March 31, 2008 and Medium-term Growth Strategy
Outlook for FY ending March 31, 2008 and Medium-term Growth Strategy TAKE AND GIVE. NEEDS Co., Ltd. TSE 1ST SECTION:4331 www.tgn.co.jp
Slide 32: Performed in line with previous three-year earnings plan
Performed in line with previous three-year earnings plan Achieved the goals of our three-year earnings plan as announced in May 2004, with net income increasing 6.2 times as forecasted Net sales (million yen) Ordinary income (million yen) : Net sales (planned) : Ordinary income (planned) 50,000 7,00
Slide 33: The cornerstone of T&G's three-year medium-term management plan
The cornerstone of T&G’s three-year medium-term management plan Develop related markets based on a solid earnings base in the bridal market. Grow into a comprehensive lifestyle business centered on consumer activity of women in their 20s and 30s, our main target. Associated opportunities from the we
Slide 34: Strategy aimed at growing into a comprehensive lifestyle company: 1
Strategy aimed at growing into a comprehensive lifestyle company: 1 Generating income through main businesses while developing customers from our internet media businesses for the real businesses Internet media businesses (attracting customers and marketing) Dating Jewelry Marriage Financing Travel
Slide 35: Strategy aimed at growing into a comprehensive lifestyle company: 2
Strategy aimed at growing into a comprehensive lifestyle company: 2 Build a structure surrounding current and potential customers leveraging synergies from Group companies Database from other Database from the T&G businesses internet media businesses House weddings and No. of unique users: 250,000 o
Slide 36: Three-year plan (FY to 3/2008 - FY to 3/2010)
Three-year plan (FY to 3/2008—FY to 3/2010) Consolidate our future base in FY to 3/2008 to realize long-term growth. Net sales (million) Ordinary income (million yen) 80,000 Net sales Consolidated net sales Consolidated ordinary income Ordinary income 10,000 70,000 8,000 60,000 6,000 50,000 40,000 4
Slide 37: Issues arising after completion of previous three-year plan
Issues arising after completion of previous three-year plan We have until now been pursuing rapid, balanced growth, but some parts of our management systems and growth base are not fully developed for our current scale (sales, profit, employees). We now have a pressing need to consolidate our organi
Slide 38: Policy of consolidating organizational base to achieve long-term growth
Policy of consolidating organizational base to achieve long-term growth Build a system where the drive of each and every employee ties directly to business performance, through establishing a corporate philosophy that focuses on enduring long-term growth, and disseminating it throughout the T&G Grou
Slide 39: Focus measures and investment costs for consolidating operating base
Focus measures and investment costs for consolidating operating base The details of initiatives to strengthen our organizational base in FY to 3/2008 and investment costs are as follows: Outline of initiatives Investment costs Increasing staff and strengthening organization system to strengthen Sale
Slide 40: Review of operating income in three-year plan
Review of operating income in three-year plan From FY to 3/2008 onwards, consolidate organizational base through strengthening systems and achieve long-term growth. Strengthen systems to ensure that back-office divisions function in support of the entire Group. Trends in operating income Costs relat
Slide 41: Medium-term growth strategy: Internet media business (1)
Medium-term growth strategy: Internet media business (1)Sougou Seikatsu Co., Ltd. Medium-term targets Total page views of 3 billion and user numbers of 4.5 million by FY to 3/2010 - Use ability to attract customers to drive creation and expansion of real business within the Group - Quickly bring adv
Slide 42: Medium-term growth strategy: Internet media business (2)
Medium-term growth strategy: Internet media business (2)Sougou Seikatsu Co., Ltd. Branching out into other areas Top-level domain site Matchmaking Wedding prep. Pregancy/Childbirth/ChildraisingEducation New categories Beauty Travel Housing Dating Beauty Travel Housing User participation-type systems
Slide 43: Reference: Average time spent per day in Wedding preparation room
Reference: Average time spent per day in “Wedding preparation room”Sougou Seikatsu Co., Ltd. Average time spent per day by 1 unique user much longer than for other sites. Reference: Average time spent per day by 1 unique user Comparison with other Internet media (minutes) 12 Wedding prep. room 12 Co
Slide 44: Medium-term growth strategy: Bridal financing business
Medium-term growth strategy: Bridal financing business Life Angel Co., Ltd. Medium-term targets Increase customers using services and increase number of loans 10-fold by FY to 3/2010 (1) Recruit customers marrying at facilities not operated by T&G (hotels, ceremony halls) (2) Develop business in fie
Slide 45: Medium-term growth strategy: Travel business
Medium-term growth strategy: Travel business Anniversary Travel Co., Ltd. Medium-term targets Establish travel sales through Internet, aiming to have sold more than 7,000 trips 3 years from now (1) Differentiate ourselves from other companies by expanding our range of attractive, original products (
Slide 46: Medium-term growth strategy: Wedding information services business
Medium-term growth strategy: Wedding information services business Partner Agent Inc. Medium-term targets Revamp the deep-rooted negative industry image and become a driver for the industry (1) Clearly indicate service contents and fees, and create a cleaner image for the industry (2) Actively open
Slide 47: Medium-term growth strategy: Beauty business
Medium-term growth strategy: Beauty business T&G Beauty Co., Ltd. Medium-term targets Actively develop beauty-related business (1) Improve profitability of lava spa business (2) Develop beauty-related business to increase customers, particularly women. Future developments (1) Initiatives to increase
Slide 48: Medium-term growth strategy: Resort wedding business
Medium-term growth strategy: Resort wedding business GOOD LUCK Corporation Medium-term targets Aiming to have held 7,000 resort weddings in 3 years, leveraging the expertise we have acquired in the house wedding business (1) Pursue business expansion through active opening of venues (2) Provide new
Slide 49: Enriching hearts and lives
“Enriching hearts and lives” This material is intended to provide information about the business performance and strategy of Take and Give. Needs Co., Ltd. (T&G). It is not intended to be and should not be construed as an inducement to purchase or sell stock in T&G. Statements in this presentation a