Furyu Corp. · TSE:6238
Furyu — Q2 FY3/2023 Earnings Presentation
40 slides from Furyu's earnings presentation, March 2023
Slide 1: Material for Briefing Financial Results Q2 Term ended March 2023
Securities code: 6238 Material for Briefing Financial Results Q2 Term ended March 2023 © FURYU Corporation. 1
Slide 2: INDEX
INDEX 03 Corporate Profile 06 Overview of Results for FY3/2023 Q2 13 Earnings Forecast for FY3/2023 16 Shareholder Returns and Financial Policy 20 Envisioned Growth 24 Initiatives for Sustainability 30 Reference Material © 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 Due to the recent rapid growth of Character Merchandising, the business size of SKB has expanded to almost the same size with GTB. Girls’ Sekaikan Trend Business Business (SKB) (GTB) Game and Anime Business 8.8% Photo Sticker Business Net sales: Net sales: Total sales Total sales
Slide 6: Overview of Results for Q2 FY3/2023
Overview of Results for Q2 FY3/2023 © FURYU Corporation. 6
Slide 7: P/L for 2Q FY3/2023
P/L for 2Q FY3/2023 Although net sales rose, profit declined YoY. Although net sales rose as a result of a recovery in photo stickers and release of the movie Laid-Back Camp, profit declined because of an increase in costs due to the weak yen. 1Q 2Q 2Q cumulative (Apr. to Jun.) （Jul. to Sep.） FY3/20
Slide 8: Results of Each Segment
Results of Each Segment 1Q 2Q 2Q cumulative (Apr. to Jun.) （Jul. to Sep.） FY3/2022FY3/2023 Ratio FY3/2022 FY3/2023 Ratio FY3/2022 FY3/2023 Ratio (¥mn) Net sales 7,999 8,142 101.8% 8,729 9,845 112.8% 16,728 17,987 107.5% Photo stickers 1,500 1,660 110.6% 1,715 2,215 129.1% 3,216 3,876 120.5% Content
Slide 9: Results of Each Segment－Photo Sticker Business
Results of Each Segment－Photo Sticker Business Both net sales and profit rose YoY Recovery in number of photo sticker booth plays and impact of increases in the wholesale price of stickers for various new booths 1Q 2Q 2Q cumulative (Apr. to Jun.) （Jul. to Sep.） FY3/2022 FY3/2023 Ratio FY3/2022 FY3/2
Slide 10: Results of Each Segment－Content and Media Business
Results of Each Segment－Content and Media Business Although net sales rose, profit declined YoY. As the number of photo sticker booth plays recovered, the number of Pictlink paid members rose, and investments continued to be made in Olu. 1Q 2Q 2Q cumulative (Apr. to Jun.) （Jul. to Sep.） FY3/2022FY3/
Slide 11: Results of Each Segment－Character MD Business
Results of Each Segment－Character MD Business Both net sales and profit fell YoY. Orders were firm due to success in continuing to capture copyrights for popular characters. Costs rose because of the weak yen, and profits fell as a result of a decline in economies of scale due to changes in the sale
Slide 12: Results of Each Segment－Game and Anime Business
Results of Each Segment－Game and Anime Business Although net sales rose, profit declined YoY. Box-office revenue from the movie Laid-back Camp topped ¥1.0 bn and made major contributions to revenue and profit. Sales of the console game software Trinity Trigger, which was released in September, are g
Slide 13: Earnings Forecast for FY3/2023
Earnings Forecast for FY3/2023 © FURYU Corporation. 13
Slide 14: Full-year Earnings Forecasts Remain unchanged from previous forecast
Full-year Earnings Forecasts Remain unchanged from previous forecast FY3/2022 FY3/2023 Compared to actual forecast FY3/2022 (¥mn) Net sales 34,058 36,600 107.5% Operating profit 3,709 2,240 60.4% Ordinary profit 3,707 2,240 60.4% Profit 2,544 1,555 61.1% Segment Net sales Operating profit Assumption
Slide 15: 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 16: Shareholder Returns and Financial Policy
Shareholder Returns and Financial Policy © FURYU Corporation. 16
Slide 17: 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 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 iss
Slide 18: Share buyback summary
Share buyback summary Decided to conduct share buyback in order to improve capital efficiency and increase shareholder return. Share buyback summary Share class Common shares Total number of shares 1,120,000 (upper limit) <Percentage of total number of issued shares (excluding treasury shares): 4.09
Slide 19: Shareholder Return Measures and financial indicators
Shareholder Return Measures and financial indiccators 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% 36.9% 4.8% 5.0% 5.0% 30.0% 4.7% 4.0% 30.3%
Slide 20: Envisioned Growth
Envisioned Growth © FURYU Corporation. 20
Slide 21: 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 figurines Game and anime Investment Fashion D2C Data-based ads Investment businesses Color contacts Arcade prizes Growth Overseas product
Slide 22: Our Growth Strategy
Our Growth Strategy GTB: Leverage girls’ profile to maximize LTV SKB: Maximize earnings from character IP by global marketing Girls’ Sekaikan Trend business Business (SKB) (GTB) Off-line On-line Overseas Japan Photo sticker Pictlink booths Arcade Anime prizes China/ Asia GIRLS profile Stores EC Rela
Slide 23: 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 24: Initiatives for Sustainability
Initiatives for Sustainability © FURYU Corporation. 24
Slide 25: Initiatives for Sustainability
Initiatives for Sustainability We will strive for both business sustainability and social sustainability. Customers Business sustainability Social sustainability Local society Employees Evolution of a next-generation society Provide quality entertainment Diversified values Business Shareholders part
Slide 26: 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 Directly high-end Lottery managed figurines shops Promote self
Slide 27: 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 28: Corporate Governance
Corporate Governance We established a nomination and remuneration committee, a majority of whose members are independent outside directors. We will strength the Board of Director’s supervising function by raising the weight of independent outside directors to at least 1/3. General meeting of shareho
Slide 29: Dialogue with Stakeholders
Dialogue with Stakeholders We stress dialogue with stakeholders to realize our sustainable growth. •User interviews (more than 150 times annually) • Help desk • Exchange of opinions at exhibitions • Technical support Customers • Students’ visits to companies Local society Employees • Training and wo
Slide 30: Reference Material
Reference Material © FURYU Corporation. 30
Slide 31: Market Environment (Overall Amusement Market)
Market Environment (Overall Amusement Market) Trend in the amusement market (operation sales) (millions of yen) 6,000 25.0 5,407 5,200 4,957 4,875 4,858 23.0 5,000 4,699 4,563 4,620 4,338 21.0 18.6 4,221 18.1 16.9 19.0 4,000 16.0 15.6 17.0 14.8 14.1 3,000 13.1 15.0 12.1 12.2 13.0 2,000 11.0 2,474 2,
Slide 32: Market Environment (Claw Crane Game Market)
Market Environment (Claw Crane Game Market) Trend in the claw crane game market (millions of yen) 3,000 2,673 2,474 2,500 2,258 1,884 2,000 1,676 1,699 1,575 1,606 1,564 1,608 1,500 1,000 569 624 639 418 421 468 318 370 500 246 240 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Sales from opera
Slide 33: 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 34: 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 35: Earnings By Segment (by quarter)
Earnings By Segment (by quarter) FY3/2022 FY3/2023 (¥mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Net Sales 7,999 8,729 9,073 8,256 8,142 9,845 Photo sticker 1,500 1,715 2,217 2,142 1,660 2,215 Revenue from amusement 1,296 1,466 1,921 1,817 1,371 1,877 arcades Revenue from directly managed 204 249 295 325 289 338 sh
Slide 36: 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 37: 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) 1,200 1,200 80 68 59 61 881 828 846 867 795 809 60 51 766 769 778 800 800 705 655 604 40 400 400 20 0 0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3
Slide 38: Console game software game apps—Main Titles Released
Console game software game apps— Main Titles Released Original or Type other Console Release date Title company’s IP other PlayStation®4 2022/4/14 Battle Spirits CONNECTED BATTLERS company’s IP Nintendo Switch™ PlayStation®4 FY3/2023 Original PlayStation®5 2022/9/15 TRINITY TRIGGER Release Titles Ni
Slide 39: Share Information (as of Sep.30, 2022)
Share Information (as of Sep.30, 2022) Total no. of authorized shares 104,400,000 Total number of issued shares 28,296,000 No. of shareholders 8,628 Shareholding Shareholders No. of shares held ratio (%) FURYU Shoji Corporation 4,340,000 16.15 The Master Trust Bank of Japan (trust account) 3,810,700
Slide 40: TEL 03-5728-1761 Email info-ir@FURYU.jp
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