Take And Give. Needs Co., Ltd. · TSE:4331
Take And Give. Needs — FY2006 Earnings Presentation
43 slides from Take And Give. Needs's earnings presentation, May 31, 2006
Slide 1: Appendix
APPENDIX TAKE and GIVE.NEEDS Co.,Ltd. TSE first section, stock code 4331
Slide 2: Contents
CONTENTS 1. Market environment 2. T&G House wedding business Market size A-1 Trends in house wedding venue development A-11 Trends of marriages and divorces A-2 T&G venues development criteria A-12~16 A fragmented market A-3 Elements of T&G’s distinctive house weddings A-17~23 Customer needs and the
Slide 3: Appendix -1
Appendix -1
Slide 4: Market size
Market size The wider Wedding party market = ¥2 trillion wedding market 2005 Number of weddings: Children’s goods Honeymoon travel New housing Cars Furniture Insurance 713,000 Jewelry Source: 2005 Ministry of Health and Welfare, Population Dynamics Gifts Loans Cost of wedding: ¥2 trillion The weddin
Slide 5: Trends in marriages and divorces
Trends in marriages and divorces Number of marriages in Japan: trends and forecast Trends in number of divorces Second baby boom generation reaches marrying age (lengthened due to delaying marriage Trends in average age at first marriage Groom Bride Health, Labour and Welfare Ministry: Population Dy
Slide 6: A fragmented market
WHY THE BRIDAL A fragmented MARKET 2 market A fragmented market An undeveloped market with no large players, composed largely of non-specialist providers 2424 %% DATA: METI 2002 Survey of Specialized Service Industries NOTE: In 2002, there were 2,853 managed wedding venues Wedding venues are segrega
Slide 7: Customer needs and the supply gap
Customer needs and the supply gap Other Hotel / Special venue Other House wedding 4.0 7.1 6.2 Private 14.2 Restaurant 11.7 Private Restaurant Gap 15.3 Hotel / Special venue House wedding 78.1% 65.0% Preferred wedding venues Actual wedding venues used T&G Homepage questionnaire Zexy Marriage trends r
Slide 8: Trends in the wedding market
Trends in the wedding market •Trends in the Tokyo metropolitan region Hotel/venue House w edding Potential for house 77.5 74.3 wedding market growth 73.1 68.0 63.8 63.3 Increasing demand for HOUSE WEDDINGS 14.7 6.5 10.0 2000 2001 2002 2003 2004 2005 Source: RECRUIT CO.,LTD "Zexy Marriage Trend Surve
Slide 9: Trends in the average unit price of weddings
Trends in the average unit price of weddings Trends in the average price of weddings in the Tokyo metropolitan area (¥ thousand) 3,000 2,950 2,911 2,938 2,900 2,892 2,850 2,800 2,807 2,798 2,750 2,700 2,650 2,564 2,632 2,600 2,550 2,542 2,500 Zexy Marriage trends research 2005 Recruit Co., LTD A-6
Slide 10: Wedding related financial support
Wedding related financial support Rate of weddings with financial support from parents 71.9% (Wedding, reception and associated parties) 71.9% 27.3% 0.80% Yes No No answer Average amount of financial support National average: ¥1,364 thousand (Gifts, wedding, wedding reception, wedding parties, honey
Slide 11: Trends in the domestic and overseas resort wedding market
Trends in the domestic and overseas resort wedding market From the Tokyo metropolitan area 4.6% of weddings occurred overseas and 7.4% occurred at domestic wedding resorts 33.3% of wedding couples considered an overseas wedding and 17.9% considered a domestic resort wedding Overseas weddings from th
Slide 12: Trends in the honeymoon market
Trends in the honeymoon market 81.4% of wedding couples had a honeymoon costing an average of ¥482,000 Package tours are the leading type of travel but use of non-package tours are trending upwards Average cost of a honeymoon: ¥482,000 Percentage of wedding couples Trends in honeymoons who have a ho
Slide 13: Bridal esthetic (pre-wedding beauty care)
Bridal esthetic (pre-wedding beauty care) 75.8% of brides used bridal esthetic services costing an average of ¥68,000 14.3% of those spent more than ¥100,000 28.8% used beauty services related to the wedding venue. 54.8 used non venue- related beauty services Average cost of bridal esthetic services
Slide 14: Appendix -2 House wedding business
Appendix -2 House wedding business
Slide 15: Trends in house wedding venue development
Trends in house wedding venue development First priority was to develop know-how from affiliate restaurant operations Development of directly managed venues began in 2001 1998-2000 2001-2002 2003- Tie-up with house- Directly managed venues Nationwide development focusing style restaurants in in Toky
Slide 16: T&G venues development criteria
T&G venues development criteria Targeted venue development areas Towns where population exceeds 300,000 and the number of weddings exceed 2,000 annually +300 thousand people +2,000 wedding couples Number of cities we are currently targeting in areas such as Tokyo, Osaka: 76 cities With every 2,000 w
Slide 17: T&G's house wedding
T&G’s house wedding Creating weddings that could be straight out of a glamorous foreign movie Chapel Waiting Rooms 2nd Floor 1st Floor Pool Lounge Kitchen Garden Party Room A-13
Slide 18: T&G's House Wedding facilities
T&G’s House Wedding Special facilities to handle everything from the ceremony through to the reception A-14
Slide 19: T&G's House Wedding cuisine and space
T&G’s House Wedding The finest cuisine and the most elegant space A-15
Slide 20: T&G's House Wedding pools and gardens
T&G’s House Wedding Weddings can be staged by pools and gardens A-16
Slide 21: Elements of T&G's distinctive house weddings
Elements of T&G’s distinctive house weddings 1. Concept 2. Brand 3. Original products 4. Cuisine 5. An abundance of items 6. Quality of planning and service A-17
Slide 22: Concept
Elements of T&G’s distinct house wedding Concept Concept based on producing ‘a wedding that could have come straight out of a glamorous movie’ Make maximum use of and provide all of the facilities required for a wedding , including the grounds T&G Other Chapel (ceremony room), banquet (reception hal
Slide 23: Brand
Elements of T&G’s distinct house wedding Brand Pro-active approach with the media to establish the T&G brand Charismatic planners such as Akemi Ariga Media Media attention • Communicating through TV radio commercials mass A variety of attention from the media such as TV Drama advertising and oth
Slide 24: Original products
Elements of T&G’s distinct house wedding Original products At our weddings are produced with original products and planning Original contents Unique image-related products One-of-a-kind original products Dream child Print out End Roll Flowers, snow machine, audio invitation, etc. Collaborative conte
Slide 25: Cuisine
Elements of T&G’s distinct house wedding Cuisine At each of our venues there is a chef trained in French cuisine Unlike traditional wedding ceremony food, we supply an original menu of French cuisine Chef and kitchen staff are full-time employees assigned to a specific venue • As of March 2006, over
Slide 26: An abundance of items
Elements of T&G’s distinct house wedding An abundance of items Affiliated with various vendors nation-wide With no individual responsible for product development, we rely upon all of our staff Various vendors T&G makes use of more vendors than competitors do • We carefully select each product and ma
Slide 27: Quality of planning and service
Elements of T&G’s distinct house wedding Quality of planning and service One wedding planner for each couple, resulting in a custom-made wedding Frequent consultations with our vendors. Striving for comprehensive quality improvement Custom made Completely custom made We immediately assign one weddin
Slide 28: Business flow
Business flow Inquiries Business flow from inquiry to contract Venue visits 3- 6 months Customer previous Customer Contract signing Information T&G’S Wedding magazine Ceremony Internet Word of mouth T&G Hall Consultations 3 months (4-5) previous Inquire Place advertisements Visit venue Contract Wedd
Slide 29: T&G House wedding business operations
T&G House wedding business operations Affiliated restaurants and directly managed venues On being founded, T&G formed alliances with suitable house-style restaurants in the Tokyo metropolis in order to begin offering house weddings. Building on the restaurant-alliance weddings, T&G’s first house wed
Slide 30: Capacity utilization rate
Capacity utilization rate • In Japan, nearly all wedding receptions are held on Saturdays, Sundays and holidays. • We maintain our luxury concept by handling a maximum of 2 couples per hall per day Capacity Weddings utilization = rate (%) Total operation days (Saturdays, Sundays, holidays) x2 Settin
Slide 31: Venue development model
Venue development model Each step in the process has been systemized for maximum efficiency On-site office 10-12 months 8 months OPEN!! previous previous Venue / Management Determine new site Advertise Build on-site office Begin bookings Design/Construction Staff Recruiting Training/Staffing A-27
Slide 32: Diverse development models
Quick development: Diverse development models Diverse development models + SPC scheme requiring no CAPEX Term land lease model Term building lease model Capital investment required T&G Land purchase model Building type SPC model Capital investment not required Land purchase and development type SPC
Slide 33: Building-type SPC model
Building-type SPC model Scheme with Tokyo Lease (Announced May 19, 2004) Land owner Fixed-term lease contract T&G Fixed-term sub-leasable land contract with condition precedent Fixed-term building lease contract Construction SPC contract Tokyo Leasing Investment (5%) Construction Tokyo Leasing (pare
Slide 34: Land purchase and development SPC model
Land purchase and development SPC model T&G or third party Contribution to fund Intermediary body Capital At time of land purchase: Advance Capital contract for sale of trust beneficiary rights. Land At time of completion: Post- Senior loans Bridging loan purchase Beneficiary rights sale Mezzanine l
Slide 35: Venues by category and region
On-balance sheet Off-balance sheet Tokyo- 1 2 1 4 Downtown Tokyo- 2 2 Other Ibaraki 2 2 Kanto Tochigi 2 2 Gunma 2 2 Saitama 1 2 3 Kanagawa 3 3 Chiba 1 2 3 Miyagi 3 3 Tohoku Fukushima 1 1 Nagano 2 2 Koushinetsu Niigata 2 2 and Hokuriku Toyama 2 2 Ishikawa 2 2 Shizuoka 2 2 Tokai Aichi 1 1 2 Gifu 2 2 O
Slide 36: T&G products sold through directly managed venues
T&G products sold through directly managed venues Bridal products Customer price list (assumes 80 people) Item Price Remark SPACE 400,000 Use of venue CAKE 200,000 Celebrant Accessories FLOWER 200,000 Decoration, bouquet PHOTO VIDEO 200,000 Album, videos, etc. PRINTING 150,000 Invitations, place car
Slide 37: Highly profitable business model with 3 year ROI
Business model: Highly profitable business model with 3 year ROI Business model allows for an after-tax 3-year return • 1 Hall type business model (millions of yen) Investment (1) Standard venue = 3 year return (Construction cost and security deposits 312 Construction cost 270 Security deposit 42 Ne
Slide 38: Appendix -3 Company outline
Appendix -3 Company outline
Slide 39: Business results
Business results (Highlights) Change since FY to 03/2007 Change since FY to 03/2002 FY to 03/2003 FY to 03/2004 FY to 03/2005 FY to 03/2006 FY 2005 FY 2006 (forecast) Net sales (¥million) 2,961 5,275 11,444 21,830 33,962 +55.6% 45,367 +33.6% Ordinary income (¥million) 229 467 1,447 3,501 5,153 +47.2
Slide 40: Stock information
Stock information As of March 31, 2006 Number of shares issued 722,700 Number of shareholders 10,028 Composition of shareholders Major shareholders Yoshitaka Nojiri 152,350(21.08%) 7.46% Japan Trustee Services Bank, Ltd. 49,424 (6.83%) 34.76% (Trust account) 20.39% WELD Trading Co., Ltd. 48,000 (6.6
Slide 41: CEO Profile
CEO Profile Yoshitaka Nojiri, President & CEO ¾ 1972 Born, Tokyo Japan ¾ 1994 Graduated from Meiji University in ¾ Strong entrepreneurial spirit from a young age politics and economics ¾ Played rugby in leading Meiji University team ¾ 1994 Joined Sumitomo Fire ¾ Two-time winner of President’s Award
Slide 42: T&G's Profile
Company Take and Give. Needs Co., Ltd T&G’s Profile Name Head Office 106-0031 4-12-24 Nishi-Azabu, Minato-ku Tokyo, Japan TEL.+81-3-5469-3070 Board of President & CEO Yoshitaka Nojiri Directors and Director Tetsuya Minobe Auditors Director Daisuke Kiriyama Next meeting scheduled Director Hideki Haya
Slide 43: T&G wedding venues
T&G wedding venues Hokkaido Area Hokuriku/Chubu Area GARDEN HILLS GEIHINKAN(Sapporo) 06/8 scheduled ARKANGEL GEIHINKAN (Nagoya) ARKCLUB GEIHINKAN (Niigata) Kanto Area ARVERIR GEIHINKAN (Nagoya) ARKANGEL DAIKANYAMA ARVERIR GEIHINKAN (Toyama) AZABU GEIHINKAN ARK CLUB GEIHINKAN (Kanazawa) ARFERIQUE SHI