Furyu Corp. · TSE:6238
Furyu — FY3/2022 Earnings Presentation
52 slides from Furyu's earnings presentation, March 2022
Slide 1: Material for Briefing Financial Results, Term ended March 2022
Securities code: 6238 Material for Briefing Financial Results Term ended March 2022 © FURYU Corporation. 1
Slide 2: INDEX
INDEX 03 Corporate Profile 06 Girls’ Trend Business 12 Sekaikan Business 16 Overview of Results for FY3/2022 23 Measures and Earnings Forecast for FY3/2023 32 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 Business 8.8% Photo Sticker Business Net sales: ¥2,980 mn Ratio to total sales: 8.8% 22.2% Net sales: ¥7,576 mn Ratio to total sales: 22.2% • Planning, development, and sale of • Planning, development, and sale of
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 have taken root as part of Japanese culture for women in their 10s and 20s. Percentage of female high school students in Japan who have used a photo sticker booth: Total
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 our marketing and technological capabilities. Strength 1 Marketing capabilities Photo sticker booth market share Group interview Qualitative 94.0% (model evaluation, trend survey
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 Service for obtaining and List price of ¥2.7 mn (tax browsing images excluded) per booth1 About 135 yen/sticker (tax 300 yen/
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 Transfer data to a smartphone Download image data Post on SNS Sh
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. Variation in Recurring Revenue (¥mn) 35,000 34,058 100.0% 27,431 30,000 27,134 24,890 25,383 24,777 25,000 24,167 14,324 22,828 14,332 20,000 11,604 12,170 12,966 13,974
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 Mid-range to fans around the world software hobby goods Expensi
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 our capability to acquire IP and the capacity to design 2D characters as products. Characteristic of this business Production after Third largest market share Use of IP re
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 Steadily expand the business using our own Establish a track record by investing in handpicked original and other companies’ IP. Anime titles and serializing hit
Slide 16: Overview of Results for FY3/2022
Overview of Results for FY3/2022 © FURYU Corporation. 16
Slide 17: P/L for FY3/2022
P/L for FY3/2022 Both net sales and profit rose year on year, driven by firm character MD business. YoY Change FY3/2022 FY3/2021 FY3/2022 Achievement actual actual forecast ratio Absolute Ratio (announced August) (¥mn) Net sales 24,777 34,058 9,280 137.5% 36,000 94.6% Operating profit 2,736 3,709 97
Slide 18: Overview of Results for Each Segment
Overview of Results for Each Segment Net sales and profit grew for three segments—character MD, photo sticker, and games and anime. YoY Change FY3/2021 FY3/2022 actual actual Absolute Ratio (¥mn) Net sales 24,777 34,058 9,280 137.5% Photo stickers 5,952 7,576 1,624 127.3% Content and media 8,602 8,3
Slide 19: Results of Each Segment - Photo Sticker Business
Results of Each Segment－Photo Sticker Business 4Q Growth in number of plays was flat, but expenses rose as new appealing booths were introduced in order to raise the price of supplies. Loss for the full fiscal year contracted. 3Q cumulative 4Q Full fiscal year (Apr. to Dec.) (Jan. to Mar.) FY3/2021
Slide 20: Results of Each Segment - Content and Media Business
Results of Each Segment－Content and Media Business After bottoming out, the number of paid Pictlink members is gradually increasing. The percentage of paid premium members has risen to 10.8% (9.5% at the end of the previous fiscal year). 3Q cumulative 4Q Full fiscal year (Apr. to Dec.) (Jan. to Mar.
Slide 21: Results of Each Segment - Character MD Business
Results of Each Segment－Character MD Business We continued to generate firm revenue because of diversified IP portfolio strategy. Profit fell as a result of recording of RY allowance of 160M in 4Q. 3Q cumulative 4Q Full fiscal year (Apr. to Dec.) (Jan. to Mar.) FY3/2021 FY3/2022 Ratio FY3/2021 FY3/2
Slide 22: Results of Each Segment - Game and Anime Business
Results of Each Segment－Game and Anime Business For console game software, sales of titles released this year and overseas licensed sales were firm. The game segment turned to profit. 3Q cumulative 4Q Full fiscal year (Apr. to Dec.) (Jan. to Mar.) FY3/2021 FY3/2022 Ratio FY3/2021 FY3/2022 Ratio FY3/
Slide 23: Measures and Earnings Forecast for FY3/2023
Measures and Earnings Forecast for FY3/2023 © FURYU Corporation. 23
Slide 24: Measures of Each Segment - Photo Sticker Business
Measures of Each Segment－Photo Sticker Business We will strengthen our approach to core users, such as middle school and high school students, and invigorate the photo sticker market. Photo Sticker Business Directly managed stores • We will invigorate the entire market by providing a • Continue to o
Slide 25: Measures of Each Segment - Content and Media Business Pictlink
Measures of Each Segment－Content and Media Business We will reinforce tie-ups with photo sticker and strive to strengthen profitability by increasing spending per customer. Pictlink • Recapture paid members and increase retention rate • Strengthen collaboration with photo sticker business • Raise av
Slide 26: Measures of Each Segment - Character MD Business
Measures of Each Segment－Character MD Business We will maintain strong sales through continuous acquisition of popular IP licenses. We will strengthen not only the lineup of products from expensive products to low- end products but also strengthening overseas product sales by developing overseas dis
Slide 27: Measures of Each Segment - Game and Anime Business
Measures of Each Segment—Game and Anime Business Console game software: Release three titles, including original titles Animation: Laid-back Camp movie to be released on July 1, and the release of other new titles are also scheduled. Game and anime business: Aim to stabilize profits Console game sof
Slide 28: Full-year Earnings Forecasts
Full-year Earnings Forecasts Both net sales and profit are expected to grow despite impact of the sudden yen weakness. FY3/2022 FY3/2023 Compared to actual forecast FY3/2022 (¥mn) Net sales 34,058 37,000 108.6% Operating profit 3,709 3,750 101.1% Ordinary profit 3,707 3,750 101.2% Profit 2,544 2,560
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 number of plays and members based on the most recent results. The number of members is forecast to gradually improve compared to recovery in number of plays. No. of paid members at the No. of paid members at end No. o
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 FY3/2024. We also plan to increase dividends. FY3/2021 FY3/2022 FY3/2023 Actual Actual Forecast Total number of
Slide 31: Shareholder Return Measures and Financial Indicators
Shareholder Return Measures and Financial Indicators We will pay dividends using a payout ratio of 40% or dividend on equity (DOE) of 5% as reference targets. ROE Payout ratio DOE 60.0% 55.9% 8.0% 53.4% 49.2% 7.0% 50.0% 46.8% 5.9% 6.7% 6.0% 40.0% 5.0% 5.3% 5.0% 36.9% 5.0% 4.8% 4.7% 30.0% 4.0% 30.3%
Slide 32: Envisioned Growth
Envisioned Growth © FURYU Corporation. 32
Slide 33: Image of Company-Wide Growth
Image of Company-Wide Growth We will continue to invest in new fields while ensuring a certain level of profit from stable revenue businesses. (profit) Mid-range hobby goods Game and anime Investment Fashion D2C Data-based ads Investment businesses Color contacts Arcade prizes Growth Overseas produc
Slide 34: Our Growth Strategy
Our Growth Strategy GTB: Maximize synergies among businesses by consolidating the girls' profiles of each business. SKB: Strengthen relationship with licensers, expand sales overseas, too, and maximize IP revenue. Girls’ Sekaikan Trend business Business (SKB) (GFB) Off-line On-line Overseas Japan Ph
Slide 35: Creating New Businesses
Creating New Businesses We will launch new businesses that leverage the strengths of GTB and SKB. Girls’ Trend Sekaikan Business Business (GTB) (SKB) Strengths Strengths Ability to Stability Girls’ customer base × Marketing capabilities × Creativity acquire × Design abilities × (production after rec
Slide 36: Value Creation
Value creation © FURYU Corporation. 36
Slide 37: FURYU Visions
FURYU Visions Strong employee motivation is essential for creating new entertainment. We have created a variety of new businesses from the photo sticker business since the founding of the company. Motivate employees Create new businesses Expensive Directly hobby Lottery managed goods shops Promote s
Slide 38: Initiatives for Sustainability
Initiatives for Sustainability We will work toward a balance of business sustainability and social sustainability. Customers Business sustainability Social sustainability Local society Employees Evoluation of a next-generation society Provide quality entertainment Diverse values Business Shareholder
Slide 39: System for Supporting Employees - Diversity and Inclusion
System for Supporting Employees—Diversity and Inclusion By respecting the individuality of each employee, we aim to maintain a workplace where a diverse workforce can maximize their abilities in a variety of work styles. Comfortable working Self-realization promotion environment, diversity Dynamic V
Slide 40: Corporate Governance
Corporate Governance We established a nomination and remuneration committee, a majority of whose members are independent outside directors. As for the Board of Directors, we will strength the supervising function by raising the weight of inependent outside directors to at least 1/3. General meeting
Slide 41: Dialogue with Stakeholders
Dialogue with Stakeholders We stress dialogue with stakeholders to realize our continued growth. •User interviews (150 of more annually) • Help desk • Exchange of opinions at exhibitions • Technical support Customers • Students’ visits to companies Local society Employees • Participation in local ev
Slide 42: Reference Material
Reference Material © FURYU Corporation. 42
Slide 43: Market Environment (Overall Amusement Market)
Market Environment (Overall Amusement Market) The number of shops has decreased, but the market has expanded due to brisk sales of claw crane games. Claw crane games account for about 50% of net sales. Trend in the amusement market (operation sales) (millions of yen) 6,000 25.0 5,407 5,200 4,957 4,8
Slide 44: Market Environment (Claw Crane Game Market)
Market Environment (Claw Crane Game Market) Due to amendments to the Act Regulating Adults Entertainment Business, the number of families visiting amusement centers has increased. Recently, large-sized prizes have grown in popularity. Trend in the claw crane game market (millions of yen) 3,000 2,673
Slide 45: Trend in Major Financial Indicators
Trend in Major Financial Indicators FY3/2016 FY3/2017 FY3/2018 FY3/2019 FY3/2020 FY3/2021 FY3/2022 (¥mn) (consolidated) (consolidated) (consolidated) (consolidated) (non-consolidated) (non-consolidated) (consolidated) Net sales 24,167 24,890 25,383 27,134 27,431 24,777 34,058 Operating profit 3,651
Slide 46: Earnings By Segment (by fiscal year)
Earnings By Segment (by fiscal year) FY3/2016 FY3/2017 FY3/2018 FY3/2019 FY3/2020 FY3/2021 FY3/2022 (¥mn) (consolidated) (consolidated) (consolidated) (consolidated) (non-consolidated) (non-consolidated) (Consolidated) Net sales 24,167 24,890 25,383 27,134 27,431 24,777 34,058 Photo stickers 8,850 9
Slide 47: Earnings By Segment (by quarter)
Earnings By Segment (by quarter) FY3/2021 (non-consolidated) FY3/2021 (consolidated) (million yen) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Net sales 4,390 6,267 7,151 6,968 7,999 8,729 9,073 8,256 Photo sticker 525 1,889 2,006 1,531 1,500 1,715 2,217 2,142 Revenue from amusement arcades 456 1,649 1,747 1,284 1,296
Slide 48: Trend in KPI (FY)
Trend in KPI (FY) ■ Total number of plays [10,000] ■ No. of plays amusement arcades (10,000) ■ No. of plays at directly managed shops (10,000) 5,000 4,549 5,000 400 4,181 4,539 4,241 4,212 335 3,969 4,000 298 4,000 3,197 300 3,018 250 2,804 2,947 3,000 3,000 212 213 200 2,000 2,000 100 1,000 1,000 0
Slide 49: Trend in KPIs (Quarterly)
Trend in KPIs (Quarterly) ■ No. of plays amusement arcades ■ No. of plays at directly managed ■ Total number of plays [10,000] shops (10,000) (10,000) 1,600 1,600 100 80 72 67 68 1,200 1,200 63 64 59 920 867 887 828 846 867 857 822 60 51 800 769 778 795 800 655 800 604 40 344 326 18 400 400 20 0 0 0
Slide 50: Console game software, game apps - Main Titles Released
Console game software game apps— Main Titles Released Original or other Type Console Release date Title company's IP PlayStation®4 Nintendo Original 2021/6/24 The Caligula Effect 2 Switch™ PlayStation®4 Original PlayStation®5 2021/10/14 Monark Nintendo Switch™ Renai Sengoku Romanesque— Original iOS/
Slide 51: Share Information (as of Mar. 31, 2022)
Share Information (as of Mar. 31, 2022) Total no. of authorized shares 104,400,000 Total number of issued shares 28,296,000 No. of shareholders 10,425 Shareholding Shareholders No. of shares held ratio (%) FURYU Shoji Corporation 4,040,000 14.77 The Master Trust Bank of Japan (trust account) 2,092,4
Slide 52: 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 The disclosed outlook for business performance, including that in this material, was produced based on information available as of the time of announcement. Actual busines