Playmates Toys Limited · HKEX:869
Playmates Toys — H1 2016 Earnings Presentation
20 slides from Playmates Toys's earnings presentation, Aug 26, 2016
Slide 1: Playmates Toys Limited 2016 Interim Results Briefing
Playmates Toys Limited 2016 Interim Results Briefing 26 August 2016
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 2016 Interim Results Reflected Financial Highlights Looking Forward Playmates Pipeline 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 6
Slide 7: Operating Environment
Operating Environment During the first half of 2016: NPD reported US retail toy $ sales up by about 7%*, Driven by major franchises including strong competitive boys action brands * Source: The NPD Group/Retail Tracking Services/U.S. Toys/26 weeks ending July 2, 2016 7
Slide 8: Our 2016 Interim Results Reflected
Our 2016 Interim Results Reflected TMNT Movie Sequel boosted sales, but not sufficient to offset negative impact from strong competition Higher proportion of sales outside U.S. due to timing of international shipments of Movie products Higher R&D expenses to develop new brands to be launched in 2017
Slide 9: Financial Highlights
Financial Highlights Income Statement HK$ Million 1H2015 1H2016 +/-% Revenue 687.7 594.7 -13.5 Gross Profit 434.3 369.4 -14.9 Marketing (132.2) (129.1) -2.3 Selling & Distribution (29.4) (42.5) +44.4 Administration (57.6) (59.1) +2.6 Operating Profit 215.1 138.7 -35.5 Profit before taxation 210.5 13
Slide 10: Margin Analysis
Margin Analysis Cost of Sales 100% 90% 36.8% 37.9% Marketing 80% Selling & Distribution 70% Administration 60% 19.2% 21.7% 50% 4.3% Others 8.4% 7.1% 0.6% 40% 9.9% Income Tax 0.7% 7.9% 30% 6.7% Net Profit 20% 22.7% 16.0% 10% 0% 1H2015 1H2016 Revenue: HK$687.7M HK$594.7M 10
Slide 11: Revenue Breakdown by Regions
Revenue Breakdown by Regions 1H 2015 1H 2016 1.8% 2.2% 4.3% 0.7% 5.3% 0.9% 11.4% 13.0% 4.2% 77.7% 6.0% 72.5% U.S.A. Other Americas Europe Australasia Asia Others 11
Slide 12: Financial Highlights
Financial Highlights Balance Sheet HK$ Million 30/06/15 30/06/16 Inventories 67.6 37.9 Trade Receivables 242.7 202.8 Cash & Bank Balances 987.5 1,049.8 Net Current Assets 1,009.5 1,120.5 Net Assets 1,077.9 1,172.3 Net Asset per Share (HK$) 0.89 0.97 Gearing Ratio 0.0 0.0 Current Ratio 4.0 5.0 12
Slide 13: Looking Forward
Looking Forward TEENAGE MUTAAT RingA
Slide 14: Looking Forward
Looking Forward Increased uncertainties in global economic outlook Challenges continue in international markets Entertainment-driven competition continues to intensify Shipments of Movie products skewed seasonality pattern in favor of first half of year 14
Slide 15: Playmates Pipeline
Playmates Pipeline Continued development of TMNT franchise Three New brands to be launched in 2017 Ben 10 Voltron Mysticons Actively pursue selective new opportunities 15
Slide 16: Teenage Mutant Ninja Turtles Nickelodeon series and products
Nickelodeon TV series currently in Season 4; to be followed by Season 5 Continued refreshment of core TMNT action figure categories tied to new TV show themes Actively developing new product segments 16
Slide 17: Ben 10 relaunch and new toy line
Cartoon Network to re-launch Ben 10, the powerful global franchise, in 2016 The original 2006 series spawned: 4 animated TV series 1 animated movie 2 live-action movies Global merchandise success Playmates to launch all-new Ben 10 toy line in 2017 17
Slide 18: Voltron on Netflix and new toy line
DreamWorks Animation re- imagines Voltron, the classic robot franchise, as a Netflix Original Series in June 2016 Playmates to launch all-new Voltron toy line in spring 2017 Official trailer: https://www.youtube.com/watch?v=DdqoQjaOGe 18
Slide 19: Mysticons animated series
Brand new animated action TV series developed by Nelvana Studio, Nickelodeon and Topps Company Targeting girls audience, Mysticons tells the epic tale of 4 girls who transform into legendary warriors Scheduled to debut on Nickelodeon in 2017 19
Slide 20: Thank You!
Playmates Toys Limited Thank You!