Slide 1: Fiscal Year 2017 First Half Results Briefing
Stock Listing :Tokyo Stock Exchange Code Number :7552 HAPPINET CORPORATION Fiscal Year 2017 First Half Results Briefing November 15, 2017
Slide 2: Table of Contents
目次 of Contents Table ■FY2017 First Half Results Summary ２ ■FY2017 First Half Financial Results ８ ■Noteworthy Products for FY2017 First Half 18 ■FY2017 Full-Year Projection 28 ■Reference 31 1
Slide 3: FY2017 First Half Results Summary
FY2017 First Half Results Summary Seiichi Enomoto Representative Director President and Chief Operating Officer 2
Slide 4: FY2017 First Half Results Summary
FY 2017 First Half Results Summary (millions of Yen) First Half First Half YOY FY2016 FY2017 Net sales 72,448 84,827 17.1% Operating profit 844 1,761 108.6% Ordinary 741 1,640 121.1% profit Profit attributable to owners of parent 329 1,044 217.0% 3
Slide 5: Toy Business results
目次 First Half Results Summary FY2017 Toy Business Net sales ratio ■ FY2017 First Half Results Summary 36.8% Bandai goods, including those associated with “KAMEN RIDER BUILD”, which began to be Net sales Segment income broadcast in September, “ULTRAMAN GEED”, and (millions of yen) hobby products for
Slide 6: Visual and Music Business results
目次 First Half Results Summary FY2017 Visual and Music Business Net sales ratio ■ FY2017 First Half Results Summary 22.3% Both net sales and segment income increased Net sales Segment income year on year with the strong performance of (millions of yen) packages such as those of the film “Your Name” 2
Slide 7: Video-Game Business results
目次 First Half Results Summary FY2017 Video-Game Business Net sales ratio ■ FY2017 First Half Results Summary 29.3% Both net sales and segment income increased Net sales Segment income significantly year on year thanks to hit products, (millions of yen) including “Nintendo Switch” from Nintendo, its
Slide 8: Amusement Business results
目次 First Half Results Summary FY2017 Amusement Business Net sales ratio ■ FY2017 First Half Results Summary 11.6% Capsule toys performed well thanks to the acquisition of excellent locations, including a Net sales Segment income limited time offer at train stations and expressway (millions of yen) s
Slide 9: FY2017 First Half Financial Results
FY2017 First Half Financial Results Toru Shibata Director Executive Officer Head of the Corporate Management Division 8
Slide 10: Summary of consolidated results by period
目次 1st Half of 1st Half of 1st Half of 1st Half of 1st Half of FY2013 FY2014 FY2015 FY2016 FY2013 FY2014 FY2015 FY2016 FY2017 Net sales \million 87,371 93,437 83,993 72,448 84,827 206,867 217,232 187,274 174,059 Operating profit \million 1,551 2,362 1,837 844 1,761 3,888 5,056 3,450 3,698 Ordinary p
Slide 11: Consolidated results (1) Profit & loss statement
目次 Consolidated results (1)Profit & loss statement （millions of Yen,%） First Half of FY2016 First Half of FY2017 % of total YoY % of total YoY Net sales 72,448 100.0 -13.7 84,827 100.0 17.1 Cost of sales * 62,911 86.8 -14.3 74,561 87.9 18.5 Gross profit 9,537 13.2 -10.1 10,266 12.1 7.6 SG&A expenses
Slide 12: Change by business segment
目次 Consolidated results (1)Profit & loss statement ① Change by business segment ■ Net sales （millions of Yen,%） Period FY2016 FY2017 Segment 1st Half % of total YoY Full Year % of total YoY 1st Half % of total YoY Full Year % of total YoY Toy business 31,585 43.6 -9.1 73,725 42.4 -4.1 31,206 36.8 -1
Slide 13: Main business summary
目次 Consolidated results (1)Profit & loss statement ② Main business summary ■ Toy business （100millions of Yen,%） period First Half of FY2016 First Half of FY2017 FY2016 Ｍanufacturer % of total YoY % of total YoY % of total YoY BANDAI CO.,Ltd 154 48.9 -18.9 151 48.5 -2.1 376 51.0 -10.4 TOMY COMPANY,L
Slide 14: Video game platform and amusement sales
目次 Consolidated results (1)Profit & loss statement ■ Sales of video game platform （100millions of Yen,%） period First Half of FY2016 First Half of FY2017 FY2016 Ｍanufacturer % of total YoY % of total YoY % of total YoY Nintendo 101 71.2 -35.2 212 85.5 108.9 338 75.6 -16.5 SIE* 37 26.0 11.8 33 13.4 -
Slide 15: Breakdown of Nintendo and SIE sales
目次 Consolidated results (1)Profit & loss statement ■ Breakdown of Nintendo sales （100millions of Yen,%） period First Half of FY2016 First Half of FY2017 FY2016 Item % of total YoY % of total YoY % of total YoY console 10 10.7 -56.1 89 42.0 716.2 52 15.5 -17.6 Stationary Software 8 7.9 -57.8 37 17.4
Slide 16: Consolidated results (2) Balance Sheet: Assets
目次 Consolidated results (2)Balance Sheet （millions of Yen,%） FY2016 FY2017 1st Half Full year 1st Half Change (Assets) Cash and deposits 12,021 11,605 12,350 745 Notes and accounts receivable - trade 22,767 28,258 28,884 626 Inventories 8,008 6,300 7,885 1,585 Advance payments-trade 1,010 782 844 61
Slide 17: Consolidated results (2) Balance Sheet: Liabilities
目次 Consolidated results (2)Balance Sheet （millions of Yen,%） FY2016 FY2017 1st Half Full year 1st Half Change (Liabilities) Notes and accounts payable-trade 21,039 21,550 23,646 2,095 Accounts payable-other 2,142 2,184 2,512 328 Income taxes payable 183 624 350 -274 Provision for bonuses 213 242 201
Slide 18: Consolidated results (3) Statements of Cash Flows
目次 Consolidated results (3)Statements of Cash Flows （millions of Yen,%） First Half of First Half of FY2016 FY2017 Change profit before income taxes 661 1,667 1,006 Depreciation 213 165 -48 Share of loss of entities accounted for using equity method 142 186 43 Decrease (increase) in notes and account
Slide 19: Noteworthy Products for FY2017 Second Half
Noteworthy Products for FY2017 Second Half Seiichi Enomoto Representative Director President and Chief Operating Officer 18
Slide 20: Group-Wide Main Policy and Priority Measures
目次 Group-Wide Main Policy FY2017 Implement organizational reform, expand business areas, and promote operational reform toward new growth Priority measures - Form an aggressive alliance to expand business areas - Seek to expand the range of new products to realize growth - Promote business reform
Slide 21: Noteworthy Products: Toy Business
目次 Noteworthy Products for FY2017 Second Half Toy Business Noteworthy products for the second half ■ KAMEN RIDER BUILD ■ Hobby products for girls (for enjoying making things) TV anime started from Sep.2017! The main toy of KAMEN RIDER BUILD © Ishimori Production, TV Asahi, ADK, Toei Video, Toei © TO
Slide 22: Happinet original product X-BASE
目次 Noteworthy Products for FY2017 Second Half Toy Business Happinet’s original products “X-BASE” (pronounced “cross base”), a wireless LED Lighting system It can be mounted easily with commercially available adhesives A compact product that can be mounted anywhere It emits light even in water. Avail
Slide 23: Noteworthy Titles: Visual and Music (package)
Noteworthy Titles for FY2017 Second Half Visual and Music Business Noteworthy titles (package) ■ Strengthening sales of in-house titles ■ Titles to be released in the second half Box office (Planned) To be released on Title income Date of December 22, 2017 (Billion yen) release In-house title: Beaut
Slide 24: Noteworthy Titles: Visual and Music (production)
目次 Noteworthy Titles for FY2017 Second Half Visual and Music Business Noteworthy titles (production) ■ The Miracles of the Namiya General Store ■ Hikari Starring Arata Iura and Eita, this movie was adapted from a novel The original is a blockbuster novel by Keigo Higashino, of the same title by Shio
Slide 25: Noteworthy Products: Video-Game Business
目次 Noteworthy Products for FY2017 Second Half Video-Game Business Noteworthy products for the second half ■ Nintendo Switch ■ Nintendo Classic Mini: Super Mario Odyssey Super Famicom Released on October 27, 2017 More than 450,000 units were sold in the first week after the release!! (Research by Hap
Slide 26: Happinet's managed game titles
目次 Noteworthy Products for FY2017 Second Half Video-Game Business Happinet’s managed titles ■ HYAKKI CASTLE ■ DODGEBALL RISING Planned to launch on December 14, 2017 It is a game of dodgeball, a sport familiar to people all over the world!! An authentic real-time dungeon RPG The setting of the game
Slide 27: Noteworthy Products: Amusement Business
目次 Noteworthy Products for FY2017 Second Half Amusement Business Noteworthy products for the second half Lot Gashapon DATA CARDDASS © Yuki Tabata/ Shueisha, TV Tokyo, Black Clover © Bird Studio / Shueisha, Fuji Television, Toei Animation © BANDAI Production Committee Ⓒ BANDAI The seventh of the high
Slide 28: Notable Measures: Amusement location development
目次 Notable Measures for FY2017 Second Half Amusement Business Location development ■ Expressway service areas (SA) ■ Airport facilities Permanent installation Installation in more locations ➢ Dangozaka SA (Oct.) ➢ Shisui SA (Oct.) ➢ Sendai Airport (Oct.) ➢ Abukuma Kogen SA (Nov.) ➢ Event Space in Te
Slide 29: FY2017 Full-Year Projection
FY2017 Full-Year Projection Seiichi Enomoto Representative Director President and Chief Operating Officer 28
Slide 30: Full-Year Projection
目次 Full-Year Projection FY2017 (millions of Yen) FY2016 FY2017 YOY Net sales 174,059 180,000 3.4% Operating profit 3,698 4,200 13.6% Ordinary profit 3,479 4,000 14.9% Profit attributable to owners of parent 2,040 2,500 22.5% 29
Slide 31: Projections by business segment
目次 Full-Year Projection FY2017 ■Net sales projection by business segment （millions of Yen,%） FY2016 FY2017 % of total YoY % of total YoY Toy business 73,725 42.4 -4.1 75,000 41.7 1.7 Visual and Music business 34,890 20.0 -9.1 37,000 20.6 6.0 Video-game business 44,793 25.7 -10.4 46,000 25.6 2.7 Amus
Slide 32: Reference: Dividends per share and payout ratio
目次 Reference ■Change in the annual dividends per share （￥） Interim dividends Year-end dividends 35.00 30.00 5.00 30.00 28.50 22.50 24.75 15.00 15.00 15.00 15.00 11.25 13.50 13.50 15.00 15.00 15.00 11.25 11.25 2013.3 2014.3 2015.3 2016.3 2017.3 2018.3（Plan） ■Dividend payout ratio (consolidated) （%） F
Slide 33: Notes and inquiries
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