Slide 1: Fiscal Year 2007 First-Half Results Presentation
Happinet Corporation Stock Code: 7552 Fiscal Year 2007 First-Half Results Presentation November 9, 2007 0
Slide 2: Table of Contents
Table of Contents - Overview of Interim Operating Results ・ ・ ・ P2 - Overview of Toy Business, Video-Related P3~P7 Business and Video Game Business ・ ・ ・ ・ ・ - Fourth Business Mainstay ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ P8~P10 - Forecasts for Fiscal Year 2007 ・ ・ ・ ・ ・ ・ ・ P11 - Reference: Happinet Logistics Cente
Slide 3: Overview of Interim Operating Results
Overview of Interim Operating Results Toy business Video-related business Video game business (VG) Amusement business (AM) Other business Net sales (consolidated) 0 500 AM Other business <Unit: 100 million yen> FY2006/9 Toy business Video-related ¥68.1 billion VG business 255 217 144 33 29 FY2007/
Slide 4: Toy Business
Toy Business Toy Business results <Unit: 100 million yen> 280 255 249 260 [Major initiatives in the second half] 240 • Deal with all major convenience 220 10 store companies as a vendor. 9.1 200 • Further expand business with 7.1 180 mass consumer electronics 5 retailers. 160 140 • Expand transact
Slide 5: Video-Related Business - Wholesale Business
Video-Related Business - Wholesale Business DVD cell market environment [Market conditions] <Unit: 100 million yen> 1,100 1,021 969 • Sales of DVD cells in the first half of 900 2007 fell below the year-ago level. 700 • While sales activities in actual stores 500 become difficult, the sales ratio
Slide 6: Video-Related Business - Exclusive Titles Business
Video-Related Business - Exclusive Titles Business Sales in the exclusive titles segment Restructuring of earnings profile of the Video-Related Business The President & Chief Operating Officer will be <Unit: 100 million yen> responsible for the Video-Related Business 60 (Pictures Unit) from Octobe
Slide 7: Video Game Business
Video Game Business Sales by platform in the Video Game Business <Unit: 100 million yen> DS, Wii PS3, PS2, PSP Others 250 ¥20.2 billion 200 [Situation in the first half] ¥14.4 billion 150 92 • Nintendo’s products were solid, driven by NitendoDS 100 76 65 and the full-year contribution 50 54 13 of
Slide 8: Video Game Business - Outlook for the Second Half
Video Game Business [Outlook for the second half] The market is expected to remain strong in the second half. - Xbox360 <Hardware> - Price to be revised on November 1 - Xbox360 (¥39,795 → ¥34,800) - Xbox360 Core System (¥29,800 → ¥27,800) <Featured software> - Lost Odyssey (Microsoft, to be released
Slide 9: Fourth Business Mainstay
Fourth Business Mainstay The Amusement Business will become the fourth business mainstay, joining the three core Toy, Video-Related and Video Game businesses in further development to strengthen the business foundations. Amusement business Toy business business Video-related Video game business Sale
Slide 10: Fourth Business Mainstay
Fourth Business Mainstay Two operation companies dealing with capsule toys, etc. will become our subsidiaries SUNLINK Co., Ltd THE APPLE CRPORATION Net sales: ¥11,269 million Net sales: ¥4,940 million Operating profit: ¥5 million Operating profit: ¥91 million (As of February 2007) (As of March 2007)
Slide 11: Fourth Business Mainstay
Fourth Business Mainstay Simple tally (on a full-year basis in 2006) Happinet Amusement Business SUNLINK APPLE Net sales <Unit: 100 million yen> Operating profit <Unit: 100 million yen> ¥22.4 billion ¥0.21 billion 210 2.1 49 160 1.6 ¥0.12 billion 0.9 110 ¥6.3 billion 112 1.1 0.05 60 0.6 1.2 1.2 63 6
Slide 12: Forecasts for Fiscal Year 2007
Forecasts for Fiscal Year 2007 * The impact of making SUNLINK CO.,LTD. and THE APPLE CORPORATION our subsidiaries will be informed as soon as it becomes clear. Consequently, the full-year forecast remains unchanged. Forecast consolidated results for fiscal 2007 (Unit: 100 million yen, %) FY2007/3 FY
Slide 13: Happinet Logistics Center West Established
Happinet Logistics Center West Established Happinet Logistics Multiple Center logistics bases West dispersing in theEstablished Western Japan will be integrated into the fifth floor of ProLogis Parc Amagasaki Happinet Logistics Center-West (to operate in January 2008) Address Prologis Parc Amagasaki
Slide 14: Cautionary Statement
Cautionary Statement Estimates of future performance are provided as a reference for investors. They are based on projections and estimates and should not be construed as an assurance or guarantee of future performance. When using this information, please keep in mind that final results may vary. 13