Playmates Toys Limited · HKEX:869
Playmates Toys — FY2017 Earnings Presentation
17 slides from Playmates Toys's earnings presentation, Mar 5, 2018
Slide 1: Playmates Toys Limited 2017 Full Year Results Briefing
Playmates Toys Limited 2017 Full Year Results Briefing 5 March 2018
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation and subsequent discussion may contain forward-looking statements with respect to the financial condition, results of operation and business of Playmates Toys Limited. Such forward-looking statements represent expectations or beliefs concerning future even
Slide 3: Content
Content About Playmates Toys Our Mission Our Latest Performance Operating Environment Our 2017 Results Reflected Financial Performance Looking Forward 3
Slide 4: About Playmates Toys
About Playmates Toys Founded: 1966 First Group listing: 1984 HKSE#0869 – Playmates Toys Limited A leading manufacturer of promotional toys Create, design, market & distribute branded products worldwide More information – www.playmatestoys.com 4
Slide 5: Our Mission
Our Mission We strive to create superior shareholder value by selectively investing in proprietary and licensed brands and delivering quality, safe, and innovative toys to the consumers while managing costs prudently to maximize operational leverage. 5
Slide 6: Our Latest Performance
| Our Latest Performance | THE —_—
Slide 7: Operating Environment
Operating Environment During 2017: NPD reported US retail toy sales slightly increased by 1%*, but Action Figure category recorded a year-over-year decline Major competitive action adventure brands backed by major movie releases Several key international markets impacted by strength of US dollar * S
Slide 8: Our 2017 Results Reflected
Our 2017 Results Reflected Phasing out current iteration of TMNT business in planned transition to launch new iteration in Fall 2018 Ben 10 and Voltron contributed to 2017 revenue Lower gross profit ratio primarily driven by higher proportion of sales outside U.S. and moderate planned clearance of n
Slide 9: Financial Performance: Income Statement Highlights
Financial Performance Income Statement Highlights HK$ Million 2016 2017 +/-% Revenue 992.9 758.3 -23.6% Gross Profit 595.7 411.3 -30.9% Marketing (220.1) (187.3) -14.9% Selling & Distribution (68.8) (30.6) -55.5% Administration (131.6) (119.2) -9.4% Operating Profit 175.3 74.1 -57.7% Profit before t
Slide 10: Margin Analysis
Margin Analysis 100% Cost of Sales 90% Marketing 40.0% 80% 45.8% Selling & Distribution 70% Administration 60% 22.2% Others 50% 24.7% Income Tax 40% 6.9% 4.0% Net Profit 30% 13.3% ‐0.1% 15.7% 20% 6.6% 4.3 ‐1.9% 10% 11.1% 7.4% 0% 2016 2017 Revenue: HK$992.9M HK$758.3M 10
Slide 11: Revenue Breakdown by Regions
Revenue Breakdown by Regions 2016 2017 2.8% 1.8% 3.1% 0.7% 3.7% 0.7% 14.5% 21.6% 4.4% 74.9% 65.4% 6.5% HK$992.9M HK$758.3M U.S.A. Other Americas Europe Australasia Asia Others 11
Slide 12: Financial Performance: Balance Sheet Highlights
Financial Performance Balance Sheet Highlights HK$ Million 31/12/2016 31/12/2017 Inventories 15.2 22.7 Trade Receivables 174.8 169.4 Cash & Bank Balances 1,006.5 1,021.2 Net Current Assets 1,087.3 1,020.2 Net Assets 1,126.4 1,064.7 Net Asset per Share (HK$) 0.93 0.89 Gearing Ratio 0.0 0.0 Current Ra
Slide 13: Looking Forward
| Looking Forward | a. RISE OF THE ews TEENAGE MUTANT NINJA LEGENDARY DEFEWTER
Slide 14: Looking Forward
Looking Forward Limiting shipments of current TMNT products since late 2017 to prepare for the launch of the next iteration - Rise of the Teenage Mutant Ninja Turtles - in Fall 2018 Continue to develop Ben 10 new products for Fall 2018 and beyond Monitor performance of Voltron and Mysticons to deter
Slide 15: Rise of the Teenage Mutant Ninja Turtles launching Fall 2018
Current iteration of TMNT enjoyed good 5 year run since 2012, with 5 seasons of animated TV show and 2 major movies Consistently ranked among top selling boy’s action toy brands in key markets ALL-NEW animated series, Rise of the Teenage Mutant Ninja Turtles, launching in Fall 2018 15
Slide 16: All-new Ben 10 toy line
Playmates all-new Ben 10 toy line commenced shipment in early 2017 and expanded distribution in Fall 2017 Launching Season 2 products in Spring 2018 Continued development of new products for Fall 2018 and beyond. 16
Slide 17: Thank You!
Playmates Toys Limited Thank You!