Furyu Corp. · TSE:6238
Furyu — FY2023 Earnings Presentation
58 slides from Furyu's earnings presentation, June 2023
Slide 1: Material for Briefing Financial Results, Term ended March 2023
Securities code: 6238 Material for Briefing Financial Results Term ended March 2023 © FURYU Corporation. 1
Slide 2: INDEX
INDEX 03 Corporate Profile 06 Overview of Results for FY3/2023 13 FURYU Medium-term Vision 2027 20 Measures and Earnings Forecast for FY3/2024 29 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 a size equivalent to that of GTB. Girls’ Sekaikan Trend Business Business (SKB) (GTB) Game and Anime Business Photo Sticker Business 7.7% Net sales: Total sales composition: Net sal
Slide 6: Overview of Results for FY3/2023
Overview of Results for FY3/2023 © FURYU Corporation. 6
Slide 7: P/L for FY3/2023
P/L for FY3/2023 Net sales rose, profit declined YoY. Sales increased due to solid sales of arcade prizes. Profit increased due to price hike of photo sticker paper, but the foreign exchange impact reduced profits. YoY Change FY3/2022 FY3/2023 FY3/2023 Achievement actual actual forecast ratio Absolu
Slide 8: Overview of Results for Each Segment
Overview of Results for Each Segment YoY Change FY3/2022 FY3/2023 actual actual Absolute Ratio (¥mn) Net sales 34,058 36,400 2,342 106.9% Photo Sticker 7,576 8,689 1,112 114.7% Content and Media 8,324 8,569 244 102.9% Character MD 15,175 16,347 1,172 107.7% Games and Anime 2,980 2,794 -186 93.8% Ope
Slide 9: Results of Each Segment－Photo Sticker Business
Results of Each Segment－Photo Sticker Business Both net sales and profit rose YoY. Moderate recovery in the number of plays. Both sales and profits increased due to the significant effect of price hike of sticker paper. 3Q cumulative 4Q Full fiscal year (Apr. to Dec.) (Jan. to Mar.) FY3/2022 FY3/202
Slide 10: Results of Each Segment－Content and Media Business
Results of Each Segment－Content and Media Business Both net sales and profit rose YoY. The number of PiCTLINK paying members recovered moderately. Profitability improved due to the growth of new high-margin retouching software business and withdrawal from the food and beverage business. 3Q cumulativ
Slide 11: Results of Each Segment－Character MD Business
Results of Each Segment－Character MD Business Net sales rose, profit declined YoY. Orders are strong due to the acquisition of popular character copyrights. Losses due to increased procurement costs (-1.7 billion yen) due to the yen depreciation, and the impact of provisions for expensive hobby good
Slide 12: Results of Each Segment－Game and Anime Business
Results of Each Segment－Game and Anime Business Net sales decreased, profit increased YoY. A decrease in revenues due to a decline in the gaming app market. The movie ‘LAID-BACK CAMP’ contributed throughout the year, resulting in a significant increase in profit. 3Q cumulative 4Q Full fiscal year (A
Slide 13: FURYU Medium-term Vision 2027
FURYU Medium-term Vision 2027 © FURYU Corporation. 13
Slide 14: Medium-term vision－Target management indices and quantitative targets
Medium-term vision−Target management indices and quantitative targets Growth： Sekaikan Business （SKB） Target ROE ：above 15% Management Earnings： Girls’ Trend Business（GTB） management strategy Potential for future： indices Operating profit margin: FURYU New Business（FNB） above 10% 70,000 7,000 Growth
Slide 15: Medium-term vision－Basic policy
Medium-term vision−Basic policy Basic policy A comprehensive entertainment company that brings smiles to people around the world Sekaikan Business Girls’ Trend Business FURYU New Business （SKB） （GTB） （FNB） Growth Earning Potential for future ・Acquisition of leading copyrights ・Improving the value of
Slide 16: Approach to improving ROE
Approach to improving ROE Aim for ROE above 15% in FY3/2028, with awareness to keep the level above the cost of shareholders' equity. FY3/2022 FY3/2023 2028/03 (actual) Policy for increasing ROE (actual) (Target) 12.3％ 7.0％ 15.1％ Keep above 15% Profitability Maintain GTB's high profitability ①Net pr
Slide 17: 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 80.0% 8.0% 70.0% 70.9% 7.0% 53.4% 6.7% 60.0% 5.0% 5.9% 6.0% 46.8% 56.4% 5.3% 50.0% 5.1% 5.0% 4.8% 49.2% 40.0% 5.0% 4.0%
Slide 18: Disclosure segments have been changed from FY3/2024
Disclosure segments have been changed from FY3/2024 Summary: Change from four to three segments Objective: To make clear the strategy in line with the medium-term vision Before (to FY3/2023) After (from FY3/2024) Segment Main Business Segment Main Business ・Amusement arcades Sekaikan Business Photo
Slide 19: Disclosure segments changed: recalculated FY3/2023 sales
Disclosure segments have been changed from FY3/2024 Reference: Recalculated FY3/2023 sales by applying the new segments FY3/2023 Net sales ¥36,400mn Photo Sticker SKB：世界観ビジネス Sekaikan Business ・Amusement arcades ・Directly managed shops ・Arcade prizes ・Overseas product sales 8,689 ・Expensive hobby go
Slide 20: Measures and Earnings Forecast for FY3/2024
Measures and Earnings Forecast for FY3/2024 © FURYU Corporation. 20
Slide 21: Segment measures－Sekaikan Business
Segment measures−Sekaikan Business Stable acquisition of popular IPs keeps sales at a high level. Aiming to increase sales by expanding the range of figures in addition to stuffed toys while developing overseas distribution. Line-up by unit sales price Sales by region • Reinforce figures with a high
Slide 22: Segment measures－Girls' Trend Business
Segment measures−Girls’ Trend Business To maximize LTV, strengthen the approach to core user groups such as junior high and high school students to revitalize the photo sticker market. Photo sticker business Directly managed shop • Enhanced linkage between the photo sticker machine and the • Continu
Slide 23: Segment measures－Girls' Trend Business PiCTLINK
Segment measures−Girls’ Trend Business The 'PiCTLINK photos' photo storage service will be rolled out in stages, starting with premium members. Aiming to increase the number of paying members and increase the unit price per charge to maximize LTV. PiCTLINK No. of members at the end of the fiscal yea
Slide 24: Segment measures－FURYU New Business
Segment measures−FURYU New Business • Console game Plans to release several titles, including original titles • Anime Develop the popular animation series, LAID-BACK CAMP, into an IP that generates various revenues • Game apps Focus on the development of new titles Console game software Anime Game a
Slide 25: Segment measures－FURYU New Business
Segment measures−FURYU New Business • Colored contact lenses Focus on developing own brands and e-commerce • Olu. Strengthening the development of original products • Advertising planning Win new large-scale projects by building on our strengths Colored contact lenses Olu. Advertising planning • Cre
Slide 26: Full-year Earnings Forecasts
Full-year Earnings Forecasts Both net sales and profit rose FY3/2023 FY3/2024 Compared to (¥mn) actual forecast FY3/2023 Net Sales 36,400 39,000 107.1% Operating profit 2,134 2,500 117.1% Ordinary profit 2,179 2,500 114.7% Profit attributable to owners of parent 1,443 1,735 120.2% Segment Net sales
Slide 27: Forecast of the Number of Plays and Paid PiCTLINK Members
Forecast of the Number of Plays and the Number of Paid PiCTLINK Members (Reference) Before COVID-19 (FY3/2020) Number of plays and members calculated based on 1.63 million paying members recent results Played 45 million times No. of paid members at the No. of paid members at No. of paid members at e
Slide 28: 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 FY3/2028. FY3/2022 FY3/2023 FY3/2024 Actual Actual Forecast Total number of issued shares 28,296,000 28,296,000 28,
Slide 29: Reference Material
Reference Material © FURYU Corporation. 29
Slide 30: Sekaikan Business
Sekaikan Business ―To satisfy fans around the world with IP― © FURYU Corporation. 30
Slide 31: 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 Mid-range hobby goods to fans around the world Expensive hobby Expand produc
Slide 32: Sekaikan Business
Sekaikan Business We sell stuffed toys and figures as arcade prizes and EC products. Our strength is the design skill to create three-dimensional products from flat characters. Characteristic of this business Harnessing the Production after Third largest appeal of character receiving orders market s
Slide 33: Girls' Trend Business
Girls’ Trend Business — To make all girls happy — © FURYU Corporation. 33
Slide 34: 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 machines 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 Total numb
Slide 35: Girls' Trend Business (Photo Sticker Business 2)
Girls’ Trend Business (Photo Sticker Business 2) We have the largest share of the photo sticker market in Japan. Our strengths are marketing and technology capabilities. Strength 1 Marketing capabilities Photo sticker machine market share Group interview 94.0% Qualitative (product evaluation, trend
Slide 36: 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 booth*1 About 172 yen/sticker 300 yen/mont
Slide 37: Girls' Trend Business (PiCTLINK)
Girls’ Trend Business (PiCTLINK) 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 Post on SNS Download image data Share with friends
Slide 38: 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) 40,000 100.0% 36,400 34,058 35,000 27,431 30,000 28,189 27,134 25,383 22,828 24,167 24,890 24,777 25,000 14,332 12,170 12,966 14,324
Slide 39: Introduction to FURYU New Business
Introduction to FURYU New Business - Creation of the third pillar of FURYU - © FURYU Corporation. 39
Slide 40: Introduction to FURYU New Business
Introduction to FURYU New Business We aim to create hit titles by utilizing other companies’ IP and our original IP. Establish a track record by investing in Video games Steadily expand the business using our own original and other companies’ IP. Anime handpicked titles and serializing hit titles Co
Slide 41: Introduction to FURYU New Business: Explore new businesses further
Introduction to FURYU New Business Continue investment of about 500 million yen per year and search for further new businesses to see if they become third pillar candidates over the next few years Aim to reduce losses in FY3/2025 Game apps Colored contact lenses Advertising planning Olu. Renai game
Slide 42: Initiatives for Sustainability
Initiatives for Sustainability © FURYU Corporation. 42
Slide 43: 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 44: 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. Create new businesses Motivate employees Expensive Directly Retouching hobby Lottery managed software g
Slide 45: 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
Slide 46: 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 47: Dialogue with Stakeholders
Dialogue with Stakeholders We stress dialogue with stakeholders to realize our sustainable growth. • User interviews (more than 200 times annually) • Help desk • Exchange of opinions at exhibitions • Technical support Customers • Students’ visits to Furyu Local society Employees • Participation in l
Slide 48: Market Environment (Overall Amusement Market)
Market Environment (Overall Amusement Market) Trend in the amusement market (operation sales) (100 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 4,186 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 9.9
Slide 49: Market Environment (Claw Crane Game Market)
Market Environment (Claw Crane Game Market) Trend in the claw crane game market (100 millions of yen) 3,000 2,673 2,474 2,500 2,258 2,229 2,000 1,884 1,676 1,699 1,575 1,606 1,564 1,608 1,500 1,000 569 624 639 418 421 468 500 318 370 327 246 240 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20
Slide 50: Trend in Major Financial Indicators
Trend in Major Financial Indicators FY3/2017 FY3/2018 FY3/2019 FY3/2020 FY3/2021 FY3/2022 FY3/2023 (¥mn) (consolidated) (consolidated) (consolidated) (non-consolidated) (non-consolidated) (consolidated) (consolidated) Net sales 24,890 25,383 27,134 27,431 24,777 34,058 36,400 Operating profit 3,920
Slide 51: Earnings By Segment (by fiscal year)
Earnings By Segment (by fiscal year) FY3/2017 FY3/2018 FY3/2019 FY3/2020 FY3/2021 FY3/2022 FY3/2023 (¥mn) (consolidated) (consolidated) (consolidated)*2 (non-consolidated) (non-consolidated) (Consolidated) (Consolidated) Net sales 24,890 25,383 27,134 27,431 24,777 34,058 36,400 Photo Sticker 9,090
Slide 52: 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 9,351 9,061 Photo Sticker 1,500 1,715 2,217 2,142 1,660 2,215 2,393 2,419 Revenue from amusement arcades 1,296 1,466 1,921 1,817 1,371 1,877 2,056 2,032 Revenue from directl
Slide 53: 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 4,539 4,241 4,212 335 4,000 298 4,000 285 3,375 300 3,197 3,090 250 3,018 2,947 2,804 213 3,000 3,000 200 2,000 2,000 100 1,000 1,000 0
Slide 54: Trend in KPIs (Quarterly)
Trend in KPIs (Quarterly) ■ Total number of plays [10,000] ■ No. of plays amusement arcades ■ No. of plays at directly managed [10,000] shops [10,000] 1,000 1,000 80 881 894 80 72 72 71 900 867 900 68 828 846 833 809 813 61 795 59 766 769 778 762 800 800 60 51 705 700 655 700 604 40 600 600 20 500 5
Slide 55: Console game software game apps - Main Titles Released
Console game software game apps - Main Titles Released © FURYU Corporation. 55
Slide 56: Share Information (as of Mar. 31, 2023)
Share Information (as of Mar. 31, 2023) Total no. of authorized shares 104,400,000 Total number of issued shares 28,296,000 No. of shareholders 9,419 Shareholding Shareholders No. of shares held ratio (%) FURYU Shoji Corporation 4,340,000 16.41 The Master Trust Bank of Japan (trust account) 2,252,80
Slide 57: Dear shareholders and investors
Dear shareholders and investors Please fill in the survey We are collecting opinions and requests on sustainability from various stakeholders. Therefore, we would like to ask our shareholders and investors to fill in the questionnaire. Survey page https://furyu.svy.ooo/ng/answers/sustainability/?sh=
Slide 58: 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