Furyu Corp. · TSE:6238
Furyu — FY2021 Earnings Presentation
50 slides from Furyu's earnings presentation, May 13, 2021
Slide 1: Material for Briefing Financial Results, Term ended March 2021
Securities 証券コード: 6238 code: 6238 Material for Briefing Financial Results Term ended March 2021 © FURYU Corporation. 1
Slide 2: INDEX
INDEX 03 Corporate Profile 06 Girl’s Trend Business 12 Sekaikan Business 16 Overview of Results for FY 3/2021 23 Measures and Earnings Forecast for FY 3/2022 31 Envisioned Growth 36 Value Creation © FURYU Corporation. 2
Slide 3: Corporate Profile
Corporate Profile © FURYU Corporation. 3
Slide 4: Corporate Philosophy
Corporate Philosophy Create quality entertainment that brings happiness and fulfillment to people. Each of us acts with visions, and aims to grow ourselves and our company by combining “what I will do” and “what I can do” as individuals and “what we must do” as a company. We will keep pursuing our b
Slide 5: Business Portfolio
Business Portfolio Girls’ Sekaikan Trend Business Business (SKB) (GTB) Game and Anime 7.6% Photo Sticker Business Business Net sales: Ratio to total sales: Net sales: Ratio to total sales: 1,889 million yen 7.6% 24.0% 5,952 million yen 24.0％ • Planning, development, and sale of video game software f
Slide 6: Girls' Trend Business
Girls’ Trend Business ―To make all girls happy― © FURYU Corporation. 6
Slide 7: Girls' Trend Business (Photo Sticker Business 1)
Girls’ Trend Business (Photo Sticker Business 1) We operate a Photo Sticker Business targeted at young women. Photo sticker booths took root as part of Japanese culture for women in their 10s and 20s. Ratio of female high school Total number of plays per year students in Japan who have used a Result
Slide 8: Girls' Trend Business (Photo Sticker Business 2)
Girls’ Trend Business (Photo Sticker Business 2) We have the largest share of the photo sticker market. Our strengths are marketing and technological capabilities. Strength 1 Marketing capability Group interview Qualitative (Model evaluation, trend surveys, etc.) Photo sticker booth market share abo
Slide 9: Structure of the Photo Sticker Business
Structure of the Photo Sticker Business We earn revenue from supplies and monthly membership charges. Supplies business Monthly membership business Sales Provision of Service for obtaining and List price 2.40 million yen service browsing images About 135 yen (tax 300 yen/month (tax excluded)2 (tax e
Slide 10: Girls' Trend Business (Content and Media Business)
Girls’ Trend Business (Content and Media Business) We operate “Pictlink,” a service for obtaining and browsing photo sticker images. The number of paid members is nearly equal to the population of female high school students in Japan.1 Download image data Post images in SNS Transfer data to a to sha
Slide 11: Revenue Stability of Our Business
Revenue Stability of Our Business We have developed a stable revenue model based on sales of photo stickers and Pictlink charges. Our recurring revenue ratio is approximately 50%. Variation in Recurring Revenue (million yen) 30,000 27,431 100.0% 27,134 24,890 25,383 24,777 24,167 25,000 20,000 14,32
Slide 12: Sekaikan Business
Sekaikan Business ―To satisfy fans around the world with IP― © FURYU Corporation. 12
Slide 13: Sekaikan Business
Sekaikan Business We plan products utilizing the intellectual property (IP) of popular characters. We develop and manufacture a broad range of products and provide fans around the world with them. Offer high-quality content Console game software Books to fans around the world Expensive Expand produc
Slide 14: Sekaikan Business (Character MD Business)
Sekaikan Business (Character MD Business) We sell stuffed toys and figurines as arcade prizes and EC products. Our strengths are the capability of acquiring IP and the capacity to design 2D characters as products. Characteristics of this business Production after The third largest Use of IP receivin
Slide 15: Sekaikan Business (Game and Anime Business)
Sekaikan Business (Game and Anime Business) We aim to create hit titles by utilizing other companies’ IP and our original IP. Video games Steady business with the titles based on our To invest in handpicked titles and serialize hit original an other companies’ IP Anime titles and establish a track r
Slide 16: Overview of Results for FY 3/2021
Overview of Results for FY 3/2021 © FURYU Corporation. 16
Slide 17: P/L for FY 3/2021
P/L for FY 3/2021 Although GTB struggled because of the COVID-19 pandemic, this was compensated for by SKD due to popular IP. It was possible to generate a certain level of profit despite the decline in sales and profit due to the business portfolio. YoY Change FY 2/2021 FY 3/2020 FY 3/2021 forecast
Slide 18: Overview of the Results of Each Segment
Overview of the Results of Each Segment For photo stickers, both sales and profit declined due to the massive impact of the closure of amusement arcades in April and May. For content and media, we maintained 1.50 million members as the business model is stable. For character MD, sales of arcade priz
Slide 19: Results of Each Segment－Photo Sticker Business
Results of Each Segment－Photo Sticker Business During 4Q (Jan. Mar.) it was possible to secure a certain number of plays even though a state of emergency had been declared. While total no. of plays was only 66.3% of that of the previous year, the number of plays in March was 109% of that of March 20
Slide 20: Results of Each Segment－Content and Media Business
Results of Each Segment－Content and Media Business The number of paid Pictlink members at the end of the year was stable at 1.50 million, 92.3% of the number for the previous year. Sales of colored contacts recovered to about 90% of that for 4Q of the previous year. For new business development, a l
Slide 21: Results of Each Segment－Character MD Business
Results of Each Segment－Character MD Business Sales of arcade prize and similar products were firm, mainly for “Demon Slayer: Kimetsu no Yaiba,” popular IP. Sales of expensive hobby goods quickly rose, growing about fourfold year on year to 6.41 million yen in 4Q (Jan.‒Mar.) 3Q, cumulative 4Q Full f
Slide 22: Results of Each Segment－Game and Anime Business
Results of Each Segment－Game and Anime Business As for console game software, the development of titles to be launched next year progressed smoothly. Earnings from existing game app titles improved. As for anime, sales for the Laid-Back Camping series and Sleepy Princess in the Demon Castle doubled.
Slide 23: Measures and Earnings Forecast for FY 3/2022
Measures and Earnings Forecast for FY 3/2022 © FURYU Corporation. 23
Slide 24: Measures of Each Segment－Photo Sticker Business
Measures of Each Segment－Photo Sticker Business Even after the pandemic, photo stickers have taken root as part of the culture, and we aim to generate a V-shaped recover in FY 3/2023. Product strategy Efforts to keep the number of photo sticker booths in market • Vitalize the entire market by provid
Slide 25: Measures of Each Segment－Content and Media Business
Measures of Each Segment－Content and Media Business We will strengthen collaboration with photo stickers and strive to improve profitability by increasing per customer spending. Policies Strategies • Recapture paid members and increase retention rate. • Strengthen collaboration with photo sticker •
Slide 26: Measures of Each Segment－Character MD Business
Measures of Each Segment－Character MD Business We will increase sales by creating new popular IP. We will also strengthen sales overseas by developing product line up that extends from low-end to high-end items and develop overseas channels. Arcade prize, etc. Expensive hobby goods Policies Polices
Slide 27: Measures of Each Segment－Game and Anime Business
Measures of Each Segment－Game and Anime Business For console games, we will release anticipated original title sequels. We will also work to turn the game business profitable in FY 3/2022. Strategies Console game software Game apps Anime • Release new Renai game titles for • Serialize the hit title
Slide 28: Full-year Earnings Forecasts
Full-year Earnings Forecasts We plan to dramatically increase character MD sales through popular IP and the rapid growth of expensive hobby goods. We also expected the photo sticker business to recover and sales and profit increase. Assumptions for full-year earnings forecasts for FY 3/2022* Photo s
Slide 29: Forecast of the Number of Plays and Paid Pictlink Members
Forecast of the Number of Plays and the Number of Paid Pictlink Members Calculated assuming recent number of plays and members. Number of member is expected to recover at a slower pace than the no. of pays. No. of paid members No. of paid members No. of paid members at the end of March 2020 at the e
Slide 30: Shareholder Return and Financial Policy
Shareholder Return and Financial Policy We aim to increase shareholder return by paying stable dividends and flexibly acquiring treasury shares and to achieve an ROE of 15.0% or higher in FY 3/2024. We will raise the dividend/share 1 yen in FY 3/2021 and plan to further raise it next fiscal year. Re
Slide 31: Envisioned Growth
Envisioned Growth © FURYU Corporation. 31
Slide 32: Our Growth Strategies
Our Growth Strategies GTB: Concentrate each business’s girls profile and maximize synergies between businesses. SKB: Strengthen relationship with publishers, expand sales overseas, and maximize IP earnings. Girls’ Trend Sekaikan Business Business (GTB) (SKB) Off-line On-line Overseas Japan Photo sti
Slide 33: New Businesses (Programmatic Ads and Expensive Hobby Goods)
New Businesses (Programmatic Ads and Expensive Hobby Goods) We implement growth strategies for Girls’ Trend Business and Sekaikan Business Girls Trend Sekaikan Business Business (GTB) (SKB) Strengths Basic business model Female Build-to- Manufacturing customer × Marketing capability × Creativity Acq
Slide 34: Programmatic Ad Business (Growth Potential)
Programmatic Ad Business (Growth Potential) Thanks to the advance of ad technologies, the programmatic ad market is expanding. We maintain a competitive advantage with outstanding contact points with women in their 10s and 20s. Programmatic ad market size Over 1 trillion*2 Sales of photo sticker-rel
Slide 35: Envisioned Corporate Growth
Envisioned Corporate Growth The basic strategy is to create and develop new businesses. In the short term (3-5 years), expensive hobby goods and overseas product sale will contribute to growth. In the long term (5 years or longer), the programmatic ad business will contribute to growth. Company-wide
Slide 36: Value Creation
Value Creation © FURYU Corporation. 36
Slide 37: Vision of FURYU
Vision of FURYU Employees’ strong motivation is essential for creating new entertainment Since business start-up, we have created a variety of new businesses from the photo sticker business Create new businesses Motivate employees Expensive Directly hobby Lottery managed goods shops Promotion of sel
Slide 38: System for Supporting Employees
System for Supporting Employees We motivate employees by helping them produce good business results and achieve self-realization. We develop a comfortable working environment and secure diversity such as empowering women. Comfortable working Promotion of self-realization environment, diversity DYNAM
Slide 39: Corporate Governance
Corporate Governance More than 1/3 of executives are outside executives, including a female director, which has strengthened their supervising function. Composition of executives • A female outside director • Nomination and remuneration • committees established 社内 役員 4社外 5 in-house 10 outside execut
Slide 40: Dialogue with Stakeholders
Dialogue with Stakeholders We value dialogue with stakeholders and link it to sustainable growth. For individual investors Customers To issue correspondence for shareholders once a year Business partners Shareholder • Set basic policies for quality • Formulate guidelines for CSR procurement For inst
Slide 41: Reference Material
Reference Material © FURYU Corporation. 41
Slide 42: Market Environment (Entire Amusement Market)
Market Environment（Entire Amusement Market） The number of shops decreased, but the market expanded due to brisk sales of claw cranes Claw cranes account for about 50% of total sales Trend in the amusement market (operation sales) [unit: 100 million yen] 6,000 25.0 5,407 5,200 4,957 4,875 4,858 23.0
Slide 43: Market Environment (Claw Crane Market)
Market Environment（Claw Crane Market） Due to the amendment to the Act Regulating Adults Entertainment Business, the use by families increased Recently, prize vending game machines for large-sized prizes have increased Trend in the claw crane market [unit: 100 million yen] 3,000 2,673 2,474 2,500 2,2
Slide 44: Trend in Major Financial Indicators
Trend in Major Financial Indicators FY3/2020 FY3/2021 FY3/2016 FY3/2017 FY3/2018 FY3/2019 （Non- （Non- (Consolidated) (Consolidated) (Consolidated) (Consolidated) [unit: million yen] consolidated） consolidated） Net sales 24,167 24,890 25,383 27,134 27,431 24,777 Operating profit 3,651 3,920 2,453 3,5
Slide 45: Earnings Trend by Segment (FY)
Earnings Trend by Segment (FY) FY3/2020 FY3/2021 FY3/2016 FY3/2017 FY3/2018 FY3/2019 （Non- （Non- (Consolidated) (Consolidated) (Consolidated) (Consolidated) *2 [unit: million yen] consolidated） consolidated） Net sales 24,167 24,890 25,383 27,134 27,431 24,777 Print stickers 8,850 9,090 9,075 9,602 9
Slide 46: Earnings Trend by Segment (Quarter)
Earnings Trend by Segment (Quarter) FY2/2020(Non-consolidated) FY2/2021(Non-consolidated) [unit: million yen] 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Net sales 6,002 6,667 7,908 6,853 4,390 6,267 7,151 6,968 Photo stickers 2,343 2,474 2,699 2,395 525 1,889 2,006 1,531 Revenue form amusement arcades 2,042 2,114 2,38
Slide 47: Trend in KPI (FY)
Trend in KPI (FY) ■ Total number of plays [10,000] ■ No. of plays at amusement arcades ■ No. of plays at directly managed shops [10,000] [10,000] 5,000 4,539 4,549 5,000 400 4,250 4,181 4,241 4,212 335 4,100 3,969 4,000 298 4,000 300 3,018 2,804 212 213 3,000 3,000 200 150 2,000 2,000 100 1,000 1,00
Slide 48: Trend in KPI (Quarter)
Trend in KPI (Quarter) ■ Total number of plays [10,000] ■ No. of plays at amusement arcades ■ No. of plays at directly managed shops [10,000] [10,000] 1,600 1,600 100 92 82 85 1,271 76 1,178 80 1,200 1,124 1,075 1,079 1,200 67 1,048 63 64 993 993 920 887 867 857 822 60 800 800 800 40 344 326 400 400
Slide 49: Share Information (as of Mar. 31, 2021)
Share Information (as of Mar. 31, 2021) Total No. of authorized shares 104,400,000 Total No. of issued shares 28,296,000 No. of shareholders 10,660 Shareholder No. of shares held Share holding ratio(%) FURYU Shoji Corporation 3,000,000 10.96 Yoshiro Tasaka 2,130,000 7.79 Japan Trustee Services Bank,
Slide 50: For inquiries about this material
For inquiries about this material IR officer Finance/accounting division Management Dept TEL 03-5728-1761 Email info-ir@furyu.jp In its disclosures, our company’s outlook for business performance included in this material was produced with reference to information available as of the time of announc