Bellpark Co., Ltd. · TSE:9441
Bellpark — FY2009 Earnings Presentation
37 slides from Bellpark's earnings presentation, Feb 12, 2010
Slide 1: Results of Operations (Year ended December 31, 2009)
Results of Operations (Year ended December 31, 2009) February 12, 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. 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 Market cap: ¥9,162 milli
Slide 5: 1. 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) 50,000 4,000 46,890 45,000 Net sales Ordinary income Net sales and ordinary income 3,550 3,500 reach all-time highs 40,000 3,000 35,000 Net sales up 5.5x from 20
Slide 6: 2. Used M&A Strategy to Grow! 14 Transactions
2. Used M&A Strategy to Grow! 14 Transactions SoftBank shop +65 Total: 175 Franchise M&A No. 14 32 M&A No. 13 50 M&A No. 12 M&A No. 11 Purchase M&A No. 10 33 during the 2 1 Total: 110 M&A No. 9 fiscal year 22 M&A No. 8 66 stores 17 3 M&A No. 7 3 2 2 2 3 M&A No. 6 1 23 Purchased 1 2 Purchased 33 33 s
Slide 7: 3. Number of Stores
3. Number of Stores Sales and earnings have grown along with the number of stores. (Number of stores) Focusing mainly on operating carrier shops to reflect changing market needs. 200 44 Exceeded170 Exceeded170 180 stores stores 0 Growth Growth in in carrier carrier Exceeded100 Exceeded100 shops, sho
Slide 8: 4. Number of Mobile Phones Sold
4. Number of Mobile Phones Sold 250,000 500,000 (units) Cumulative sales exceed 460,000 handsets. Total:462,282 (units) Total: 321,081 450,000 Sales to Sales of Cumulative 233,993 new replacement sales Total: 297,619 200,000 subscribers handsets 400,000 Total: 335,285 228,289 Total: 329,899 197,033
Slide 9: II. Financial Highlights
II. 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: 2009 Operating Environment Highlights
2009 Operating Environment Highlights - Mobile Communications Industry There was a net increase of 4.79 million in the cumulative number of subscribers at the four communications carriers, 9.6% less than the net increase of 5.30 million subscribers in 2008. - SOFTBANK MOBILE There was a net increase
Slide 12: 2009 Highlights
2009 Highlights Major business activities and initiatives 1. Established a sounder financial position To increase financial soundness in response to the global economic downturn and be prepared for upcoming M&A opportunities, Bell-Park established a ¥2.8 billion bank loans and a ¥2.0 billion credit
Slide 13: 2009 Highlights
2009 Highlights Major business activities and initiatives 7. Conducted training programs needed to maintain an outstanding workforce Æ SOFTBANK MOBILE started giving awards for outstanding performance by individuals at SoftBank shops Bell-Park employees received a large number of these awards. Bel
Slide 14: 2009 Financial Highlights - Statements of Income
2009 Financial Highlights - Statements of Income (million yen) YoY 2009 Plan Achievement 2008 2009 change (announced on ratio Oct. 5) Net sales 32,437 46,890 44.6% 44,436 105.5% Operating income 1,409 3,576 153.7% 3,034 117.9% Ordinary 1,395 3,550 154.5% 3,002 118.3% income Net income 1,122 2,046 82
Slide 15: Summary of 2009 Financial Results
Summary of 2009 Financial Results (million yen, %) * Non- 2008 2009 YoY change consolidated Remarks basis Amount Comp. Amount Comp. Amount % Mainly benefited from an increase in handset sales. Sales to new subscribers: +56,324 to 228,289 units; Sales of replacement handsets: +76,059 to 233,993 units
Slide 16: Quarterly Sales and Operating Income
Quarterly Sales and Operating Income (million yen) Posted Posted record record 2007年 2008年 2009年 high high quarterly quarterly 1,227 *Non-consolidated basis since 2009 profit profit 946 Operating income 914 720 542 509 488 476 384 300 174 38 1Q 2Q 3Q 4Q Sales to new Sales of replacement 67,987 69,26
Slide 17: Handset Sales per Directly Managed Shop (2006-2009)
Handset Sales per Directly Managed Shop (2006-2009) (units) 400 Sales to new 新規販売 subscribers Sales of replacement 350 機種変更 handsets The The number number ofof replacement replacement handset handset sales sales per per directly directly 300 managed managed shop shop probably probably stopped stoppe
Slide 18: 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% 90% 20.0% 0.3% 7.5% 8.1% 0.4% 3.4% 80% 0.8% 0.1% 4.8% 1.0% 70% 60% 50% 91.4% 84.0% 40% 80.3% 80.4% 74.2% 30% 代理店・量販店営業 Agent/GMS sales 20% 法人営業 Corporate sales Bell-park brand shops 自社ブランドショップ 10% SoftBank shop
Slide 19: 2009 Financial Highlights – Balance Sheet
2009 Financial Highlights – Balance Sheet (million yen, %) Dec. 31, Dec. 31, Increase/ Comp. Remarks 2008 2009 (decrease) Total Cash and deposits +940, notes and accounts 12,109 16,978 +4,869 100.0 assets receivable-trade +2,362, inventories +1,088 Notes and accounts payable-trade +2,414, income tax
Slide 20: III. Outlook for the Operating Environment
III. Outlook for the Operating Environment 20 http://www.bellpark.co.jp Copyright Bell-Park Co., Ltd
Slide 21: Outlook for the Operating Environment (1/2)
Outlook for the Operating Environment (1/2) Current trends in the mobile phone market For sales to new subscribers, smart phones like the iPhone™3GS series and PC data cards, mainly for data communications, are expected to become even more popular. For sales of replacement handsets, the replacement
Slide 22: Outlook for the Operating Environment (2/2)
Outlook for the Operating Environment (2/2) Activities at sales agents Less competitive shops are shutting down The large number of SoftBank shops opened since 2007 resulted in rapid growth in this store network from about 1,800 to 2,700 locations. Following this growth, competition among shops and
Slide 23: IV. Medium-term Management Policies
IV. Medium-term Management Policies 23 http://www.bellpark.co.jp Copyright Bell-Park Co., Ltd
Slide 24: 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 25: The Strengths of Bell-Park
The Strengths of Bell-Park Lanchester’s Laws Lanchester’s Lanchester’s Laws Laws are are aa set set of of ¾ A sales agent for only SOFTBANK MOBILE mathematical mathematical formulas formulas used used toto determine determine the the relative strength of opposing military relative strength of opposi
Slide 26: 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 120 d 2,500 Increase in number of P er i o shops 100 SOFTBANK SOFTBANK MOBILE MOBILE opened opened many many 2,000 shops by early 2008 and ap
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 175 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 2009) Concentrating sho
Slide 28: Management Policies (1/4)
Management Policies (1/4) ¾Build a highly profitable store 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 op
Slide 29: 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 30: 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 plans to recruit 122 new college graduates in 2010, an all-time high. (as of February 2010) In addition, we will hire outstanding people whether they are new graduate
Slide 31: 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. ÆWe procured ¥2.8 billion with short
Slide 32: V. 2010 Earnings Plan
V. 2010 Earnings Plan 32 http://www.bellpark.co.jp Copyright Bell-Park Co., Ltd
Slide 33: 2010 Earnings Plan
2010 Earnings Plan (million yen) First-half Earnings Plan Full-year Earnings Plan Results of Results of 2009 2009 Plan Change Plan Change (non- (non- consolidated) consolidated) Net sales 30,000 20,270 48.0% 56,000 46,890 19.4% Operating income 1,500 1,402 6.9% 2,800 3,576 -21.7% Ordinary 1,500 1,39
Slide 34: Highlights of the 2010 Earnings Plan
Highlights of the 2010 Earnings Plan For total handset sales volume, including the contribution of new shops 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! Aggressively recruit outstanding new graduates and experienced
Slide 35: 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 Net sales 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 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 (Forecast) * Non-consolidated
Slide 36: 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. 36 http://www.bellpark.co.jp Copyright Bell-Park Co., Ltd
Slide 37: 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