Slide 1: Fiscal Year 2016 Results Briefing
Stock Listing :Tokyo Stock Exchange HAPPINET CORPORATION Code Number :7552 Fiscal Year 2016 Results Briefing May 19, 2017
Slide 2: Table of Contents
目次 of Contents Table ■FY2016 Results Summary ２ ■FY2016 Financial Results ８ ■FY2017 Group-Wide Main Policy 18 ■FY2017 Full-Year Projection 30 ■Reference 33 1
Slide 3: FY2016 Results Summary
FY2016 Results Summary Seiichi Enomoto Representative Director President and Chief Operating Officer 2
Slide 4: FY2016 Results Summary
目次 Results Summary FY2016 (millions of Yen) FY2015 FY2016 YOY Net sales 187,274 174,059 -7.1% Operating income 3,450 3,698 7.2% Ordinary income 3,497 3,479 -0.5% Profit attributable to owners of parent 2,359 2,040 -13.5% 3
Slide 5: Toy Business
目次 Results Summary FY2016 Toy Business Net sales ratio 42.4% FY2016 Results Summary Bandai character goods, including those associated Net sales Segment income with “KAMEN RIDER EX-AID,” performed well, but (millions of yen) they were not strong enough to significantly lead the 93,270 market. The
Slide 6: Visual and Music Business
目次 Results Summary FY2016 Visual and Music Business Net sales ratio 20.0% FY2016 Results Summary Although there were some hits such as “Shin Net sales Segment income Godzilla,” net sales of the Group also remained weak (millions of yen) in an environment where the package market remains sluggish a
Slide 7: Video-Game Business
目次 Results Summary FY2016 Video-Game Business Net sales ratio 25.7% FY2016 Results Summary Hardware and related products of “Nintendo Switch” Net sales Segment income and “PlayStation 4” performed well, but net sales (millions of yen) lagged due to the effects of the distribution of software 63,60
Slide 8: Amusement Business
目次 Results Summary FY2016 Amusement Business Net sales ratio 11.9% FY2016 Results Summary Despite active merchandising at event venues at Net sales Segment income facilities attracting a large number of customers, (millions of yen) 24,140 both net sales and segment income decreased 23,481 compared
Slide 9: FY2016 Financial Results
FY2016 Financial Results Toru Shibata Director Executive Officer Head of the Corporate Management Division 8
Slide 10: Five-year financial summary
目次 FY2012 FY2013 FY2014 FY2015 FY2016 Net sales \million 176,757 206,867 217,232 187,274 174,059 Operating income \million 2,973 3,888 5,056 3,450 3,698 Ordinary income \million 3,081 3,917 5,124 3,497 3,479 Net income \million 2,011 2,466 4,049 2,359 2,040 Comprehensive \million 2,075 2,654 4,349 2
Slide 11: Consolidated results for FY2016: Profit & loss statement
目次 Consolidated results for FY2016 (1)Profit & loss statement （millions of Yen,%） FY2015 FY2016 % of total YoY % of total YoY Net sales 187,274 100.0 -13.8 174,059 100.0 -7.1 Cost of sales * 165,276 88.3 -13.5 152,087 87.4 -8.0 Gross profit 21,997 11.7 -15.9 21,971 12.6 -0.1 SG&A expenses 18,547 9.9
Slide 12: Change by business segment
目次 Consolidated results for FY2016 (1)Profit & loss statement ① Change by business segment ■ Net sales （millions of Yen,%） Period FY2014 FY2015 FY2016 Segment % of total YoY % of total YoY % of total YoY Toy business 93,270 42.9 21.4 76,874 41.0 -17.6 73,725 42.4 -4.1 Visual and Music business 43,37
Slide 13: Main business summary
目次 Consolidated results for FY2016 (1)Profit & loss statement ② Main business summary ■ Toy business （100millions of Yen,%） period FY2014 FY2015 FY2016 Ｍanufacturer % of total YoY % of total YoY % of total YoY BANDAI CO.,Ltd 554 59.4 35.8 419 54.6 -24.2 376 51.0 -10.4 TOMY COMPANY,LTD 41 4.5 -1.6 49
Slide 14: Sales of video game platform; Amusement Business
目次 Consolidated results for FY2016 (1)Profit & loss statement ■ Sales of video game platform （100millions of Yen,%） period FY2014 FY2015 FY2016 Ｍanufacturer % of total YoY % of total YoY % of total YoY Nintendo 461 81.7 -9.7 405 81.1 -12.1 338 75.6 -16.5 SIE* 74 13.3 -22.2 79 15.9 6.5 99 22.1 24.8 O
Slide 15: Breakdown of Nintendo and SIE sales
目次 Consolidated results for FY2016 (1)Profit & loss statement ■ Breakdown of Nintendo sales （100millions of Yen,%） period FY2014 FY2015 FY2016 Item % of total YoY % of total YoY % of total YoY console 39 8.6 -38.8 63 15.7 60.8 52 15.5 -17.6 Stationary Software 41 8.9 19.1 44 11.1 9.1 27 8.2 -38.0 Ac
Slide 16: Consolidated results for FY2016: Balance sheet (Assets)
目次 Consolidated results for FY2016 (2)Balance sheet （millions of Yen,%） FY2015 FY2016 Change (Assets) Cash and deposits 11,412 11,605 192 Notes and accounts receivable - trade 22,899 28,258 5,359 Inventories 6,043 6,300 256 Advance patments-trade 1,204 782 -422 Deferred tax assets 841 736 -105 Other
Slide 17: Consolidated results for FY2016: Balance sheet (Liabilities)
目次 Consolidated results for FY2016 (2)Balance sheet （millions of Yen,%） FY2015 FY2016 Change (Liabilities) Notes and accounts payable-trade 18,282 21,550 3,268 Accounts payable-other 2,461 2,184 -277 Income taxes payable 380 624 244 Provision for bonuses 304 242 -61 Other 387 586 198 Total current l
Slide 18: Consolidated results for FY2016: Cash-flow statement
目次 Consolidated results for FY2016 (3)Cash-flow statement （millions of Yen,%） FY2015 FY2016 Change profit before income taxes 3,538 3,047 -490 Depreciation 381 440 59 Impairment loss - 18 18 Share of loss of entities accounted for using equity method 22 283 261 Decrease (increase) in notes and accou
Slide 19: FY2017 Group-Wide Main Policy
FY2017 Group-Wide Main Policy Seiichi Enomoto Representative Director President and Chief Operating Officer 18
Slide 20: FY2017 Group-Wide Main Policy: Priority measures
目次 Group-Wide Main Policy FY2017 Implement organizational reform, expand business areas, and promote operational reform toward new growth Priority measures - Form an aggressive alliance to expand business areas - Seek to expand the range of new products to realize growth - Promote business reform
Slide 21: Future New Efforts: Strengthening of alliances
Future New Efforts Strengthening of alliances Collaborate with companies with excellent IPs and seek growth and development in Happinet’s four business areas. => Establish the Business Planning Department, a section specializing in alliances, in the 50th term. IP holders Visual and Toy IP Investme
Slide 22: Efforts in Capital Policies
Efforts in Capital Policies Changes in share price in FY2016 and - Payment of major capital policies memorial dividends - Enhancement of shareholder benefits Acquisition of treasury shares Acquisition of treasury Acquired 1 million shares of common stock shares (4.41% of the total number of issued
Slide 23: Policies for FY2017: Toy Business
目次 Policies for FY2017 Toy Business Seek to expand market share Review work content and personnel structure to create stable profits - Aim for expansion of share in hobby product market - Reduce disposal losses by more accurate purchasing activities based on demand forecast Changes in disposal losse
Slide 24: Policies for FY2017: Toy Business products
目次 Policies for FY2017 Toy Business Noteworthy products for the 50th fiscal term Happinet’s original products © Disney © Disney/Pixar © 2017 TV Asahi, Toei AG, Toei Disney & Disney / Pixar characters Hover Shark Uchu Sentai Kyuranger 8,980 yen (tax excluded) © Happinet Broadcast from Feb 12 on the T
Slide 25: Policies for FY2017: Visual and Music Business
目次 for FY2017 Policies Visual and Music Business Enhance the functions to become the Ensure the creation of profits in Happinet’s manufacturer’s exclusive distributor managed and capitalized titles - Build a business model to make sales of packages and rights from theater hits Box office income Sale
Slide 26: Noteworthy titles: Visual and Music Business
目次 for FY2017 Policies Visual and Music Business Noteworthy titles for the 50th fiscal term Happinet’s managed titles Production Animated the two popular KADOKAWA novels Broadcast from April 10, 2017 © 2017 “The Miracles of the Namiya General Store” Production Committee on AT-X and other channels ©
Slide 27: Policies for FY2017: Video-Game Business
目次 for FY2017 Policies Video-Game Business Improve profitability by expanding Maximize sales of Nintendo Switch Happinet’s exclusive distribution products and Game-related products - Propose and implement the optimal support measures for each sales channel Exclusive distribution software - Seek to o
Slide 28: Noteworthy titles: Video-Game Business
目次 for FY2017 Policies Video-Game Business Noteworthy titles for the 50th fiscal term Happinet’s managed titles [Category for young Japanese girls] “Splatoon 2” Software exclusive to Nintendo Switch Under development to release a new title To be released on July 21 2017 for the year-end shopping sea
Slide 29: Policies for FY2017: Amusement Business
目次 Policies for FY2017 Amusement Business Strengthen the development of excellent Seek to improve profitability through the locations to maximize sales expansion of the original and exclusive sales products and the review of the - Aim for sales expansion in locations at existing locations transporta
Slide 30: Noteworthy titles: Amusement Business
目次 Policies for FY2017 Amusement Business Noteworthy titles for the 50th fiscal term © Bird Studio / Shueisha, Fuji Television, Toei Animation © BANDAI © Disney © BANDAI Machine combining the aspects of Overwhelming No. 1 title cards and capsules of Disney’s in the digital card game market world cla
Slide 31: FY2017 Full-Year Projection
FY2017 Full-Year Projection Seiichi Enomoto Representative Director President and Chief Operating Officer 30
Slide 32: FY2017 Full-Year Projection
目次 Full-Year Projection FY2017 (millions of Yen) FY2016 FY2017 YOY Net sales 174,059 180,000 3.4% Operating income 3,698 4,200 13.6% Ordinary income 3,479 4,000 14.9% Profit attributable to owners of parent 2,040 2,500 22.5% 31
Slide 33: Net sales and income projection by business segment
目次 Full-Year Projection FY2017 ■Net sales projection by business segment （millions of Yen,%） FY2016 FY2017 % of total YoY % of total YoY Toy business 73,725 42.4 -4.1 75,000 41.7 1.7 Visual and Music business 34,890 20.0 -9.1 37,000 20.6 6.0 Video-game business 44,793 25.7 -10.4 46,000 25.6 2.7 Amus
Slide 34: Reference: ROE, payout ratio and dividends per share
目次 Reference ■Index （%） FY2012 FY2013 FY2014 FY2015 FY2016 ROE 8.9 10.1 14.8 7.8 6.5 Dividend payout ratio 25.1 22.6 15.9 28.8 37.9 ■Change in the annual dividends per share （￥） Interim dividends Year-end dividends Memorial dividends 35.00 28.50 30.00 5.00 30.00 24.75 22.50 15.00 15.00 15.00 15.00 1
Slide 35: Notes and inquiries
Notes This material is for informational purposes only, and is not intended to solicit any action. This document (including the performance plan) was prepared by Happinet based on the information currently available, however it contains risks and uncertainties. Happinet accepts no liability for the