Slide 1: Fiscal Year 2018 First Half Results Briefing
Stock Listing :Tokyo Stock Exchange Code Number :7552 HAPPINET CORPORATION Fiscal Year 2018 First Half Results Briefing November 13, 2018
Slide 2: Table of Contents
Table of Contents ■FY2018 First Half Results Summary ２ ■FY2018 First Half Financial Results ８ ■Noteworthy Products for FY2018 First Half 18 ■FY2018 Full-Year Projection 28 ■Reference 29 1
Slide 3: FY2018 First Half Results Summary
FY2018 First Half Results Summary Seiichi Enomoto Representative Director President and Chief Operating Officer 2
Slide 4: FY2018 First Half Results Summary
FY 2018 First Half Results Summary (millions of Yen) First Half First Half YOY FY2017 FY2018 Net sales 84,827 104,580 23.3% Operating profit 1,761 1,920 9.0% Ordinary 1,640 1,851 12.9% profit Profit attributable to owners of parent 1,044 1,103 5.7% 3
Slide 5: Toy Business
FY 2018 First Half Results Summary Toy Business Net sales ratio ■FY2018 First Half Results Summary 30.4% Because of the steady performance of Bandai products, Net Sales Segment Income including “KAMEN RIDER ZI-O” and “HUGTTO! PRECURE,” and BANDAI SPIRITS products, including (millions of yen) “Ichiba
Slide 6: Visual and Music Business
FY 2018 First Half Results Summary Visual and Music Business Net sales ratio ■FY2018 First Half Results Summary 41.0% Because of the good performance of Namie Amuro’s “namie amuro Final Tour 2018 ～Finally～” and (millions of yen) business improvement for a subsidiary that inherited Net Sales Segment
Slide 7: Video-Game Business
FY 2018 First Half Results Summary Video-Game Business Net sales ratio ■FY2018 First Half Results Summary 19.2% Although the hardware and software of (millions of yen) Nintendo Switch remained firm, both net Net Sales Segment Income sales and segment income were weak 24,856 because there were no big
Slide 8: Amusement Business
2018年３月期 FY 業績概況 2018 First Half Results Summary Amusement Business Net sales ratio ■FY2018 First Half Results Summary 9.4% (millions of yen) Although card game products remained weak, capsule toy products were healthy because of Net Sales Segment Income event sales and exploitation of new locations
Slide 9: FY2018 First Half Financial Results
FY2018 First Half Financial Results Toru Shibata Director Executive Officer Head of the Corporate Management Division 8
Slide 10: Changes in business results
Changes in business results 1st Half of 1st Half of 1st Half of 1st Half of 1st Half of FY2014 FY2015 FY2016 FY2017 FY2014 FY2015 FY2016 FY2017 FY2018 Net sales \million 93,437 83,993 72,448 84,827 104,580 217,232 187,274 174,059 197,607 Operating income \million 2,362 1,837 844 1,761 1,920 5,056 3,
Slide 11: Consolidated results (1) Profit & loss statement
Consolidated results (1)Profit & loss statement （millions of Yen,%） 1st Half of FY2017 1st Half of FY2018 (from Apr.1,2017 to Sep.30,2017) (from Apr.1,2018 to Sep.30,2018) % of total YoY % of total YoY Net sales 84,827 100.0 17.1 104,580 100.0 23.3 Cost of sales * 74,561 87.9 18.5 92,850 88.8 24.5 G
Slide 12: Changes by business segment
Consolidated results (1)Profit & loss statement ① Changes by business segment ■ Net sales （millions of Yen,%） Period FY2017 FY2018 Segment 1st Half % of total YoY Full Year % of total YoY 1st Half % of total YoY Full Year % of total YoY Toy business 31,206 36.8 -1.2 71,403 36.1 -3.2 31,736 30.4 1.7
Slide 13: Main business summary
Consolidated results (1)Profit & loss statement ② Main business summary ■ Toy business （100millions of Yen,%） 1st Half of FY2017 1st Half of FY2018 FY2017 period (from Apr.1,2017 to Sep.30,2017) (from Apr.1,2018 to Sep.30,2018) (from Apr.1,2017 to Mar.31,2018) Ｍanufacturer % of total YoY % of total
Slide 14: Consolidated results (1) Profit & loss statement
Consolidated results (1)Profit & loss statement ■ Sales of video game platform （100millions of Yen,%） 1st Half of FY2017 1st Half of FY2018 FY2017 period (from Apr.1,2017 to Sep.30,2017) (from Apr.1,2018 to Sep.30,2018) (from Apr.1,2017 to Mar.31,2018) Ｍanufacturer % of total YoY % of total YoY % of
Slide 15: Breakdown of Nintendo and SIE sales
Consolidated results (1)Profit & loss statement ■ Breakdown of Nintendo sales （100millions of Yen,%） 1st Half of FY2017 1st Half of FY2018 FY2017 period (from Apr.1,2017 to Sep.30,2017) (from Apr.1,2018 to Sep.30,2018) (from Apr.1,2017 to Mar.31,2018) Item % of total YoY % of total YoY % of total Yo
Slide 16: Consolidated results (2) Balance sheet
Consolidated results (2)Balance sheet （millions of Yen,%） FY2017 FY2018 1st Half Full year 1st Half Change (As Sep.30,2017) (As Mar.31,2018) (As Sep.30,2018) (Assets) Cash and deposits 12,350 11,458 15,436 3,977 Notes and accounts receivable - trade 28,884 36,979 30,004 -6,974 Inventories 7,885 8,02
Slide 17: Consolidated results (2) Balance sheet
Consolidated results (2)Balance sheet （millions of Yen,%） FY2017 FY2018 1st Half Full year 1st Half Change (As Sep.30,2017) (As Mar.31,2018) (As Sep.30,2018) (Liabilities) Notes and accounts payable-trade 23,646 27,785 26,960 -824 Accounts payable-other 2,512 3,447 3,130 -316 Income taxes payable 35
Slide 18: Consolidated results (3) Statements of Cash Flows
Consolidated results (3)Statements of Cash Flows （millions of Yen,%） 1st half of 1st half of FY2017 FY2018 Change profit before income taxes 1,667 1,846 179 Depreciation 165 243 78 Amortization of goodwill - 66 66 Share of loss of entities accounted for using equity method 186 145 -40 Decrease (incr
Slide 19: Noteworthy Products for FY2018 Second Half
Noteworthy Products for FY2018 Second Half Seiichi Enomoto Representative Director President and Chief Operating Officer 18
Slide 20: Noteworthy Products: Toy Business
Noteworthy Products for FY2018 Second Half Toy Business Noteworthy products Flash Belt Aero Nova DX Ziku Driver List price Open price 5,400 yen (excl. tax) Launched in December 2018 Pokemon Card Game Sun & Moon Tamagotchi Meets products expansion pack Tag Volt Duel Masters TCG Open price Bipolar Hen
Slide 21: Noteworthy Products: Toy Business Original Products
Noteworthy Products for FY2018 Second Half Toy Business Original products Topics © Happinet Hugmin Friends Unicorn Milk Unicorn Peach Open price Two branches of Hamleys, a long- established toy store originating from the U.K., opened in Japan at the end of 2018! Hugmin Series Mothering DX Set They a
Slide 22: Noteworthy Products: Visual and Music Business
Noteworthy Products for FY2018 Second Half Visual and Music Business Noteworthy titles (production) “Nichi Nichi Kore Kojitsu” “Ikiterudakede, ai.” (co-managed movie) (co-managed movie) The movie version of the essay by Noriko Morishita, A live-action movie directed directed by Tatsushi Omori, showc
Slide 23: Noteworthy Titles (package)
Noteworthy Products for FY2018 Second Half Visual and Music Business Noteworthy titles (package) ■Products by other companies Box office ■In-house titles income (Planned) Title (Visual) (Billion Date of release yen) To be released on December 21, 2018 “Detective Conan: 8.8 October 3 In-house product
Slide 24: Noteworthy Products: Video-Game Business
Noteworthy Products for FY2018 Second Half Video-Game Business Noteworthy products for the second half ■Nintendo Switch * The sales volume described below is the domestic sales volume, excluding download versions, which we investigated. Pokemon “Let's go Pikachu” and “Let's go Eevee” To be released
Slide 25: Noteworthy Products: Video-Game Business
Noteworthy Products for FY2018 Second Half Video-Game Business Noteworthy products for the second half PlayStation Classic To be released on December 3, 2018 Suggested retail price: 9,980 yen (excl. tax) PlayStation Classic, a compact reproduction of the original PlayStation that launched in 1994, o
Slide 26: Noteworthy Products: Amusement Business
Noteworthy Products for FY2018 Second Half Amusement Business Noteworthy products for the second half Capsule toys Lot Gashapon GASHAPON Original Ride Watch In spring 2019, Continue to launch one or two we plan to series per month launch new characters. Sells original items at Dragon Ball corner DAT
Slide 27: Amusement Business Location development
Noteworthy Products for FY2018 Second Half Amusement Business Location development ■Facilities for foreign tourists *Photos: GASHAPON Yokocho ■Railway facilities at Okachimachi Expand lines to install and promote Expand installation locations permanent installations mainly in inner-city areas ➢GASHA
Slide 28: FY2018 Full-Year Projection
FY2018 Full-Year Projection Seiichi Enomoto Representative Director President and Chief Operating Officer 27
Slide 29: 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 30: Reference: Dividend policies
（Reference） 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 FY2018(Projection) Con
Slide 31: Reference: 8th Mid-term Management Plan
（Reference） 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 4,80
Slide 32: Notes
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