Slide 1: Fiscal Year 2006 first-half results presentation
Fiscal Year 2006 first-half results presentation November 9, 2006 Happinet Corporation Forecasts of future performance are provided as a reference for investors. These forecasts are based on projections and estimates and do not represent an assurance or guarantee of future performance. Use this info
Slide 2: Fiscal 2006 first-half consolidated results
Fiscal 2006 first-half consolidated results
Slide 3: Consolidated results by business segment
Consolidated results by business segment (¥ billions, %) Period Fiscal 2005 Fiscal 2006 YoY Fiscal Segment first half first half change 2005 Net Sales 25.2 25.5 1.3 58.7 Toy business Operating profit 1.53 0.71 -53.4 3.38 Video-related Net Sales 24.9 21.7 -12.9 52.2 business Operating profit 0.19 0.3
Slide 4: Fiscal 2006 first-half consolidated results
Fiscal 2006 first-half consolidated results (Net sales: ¥ billions) (Recurring profit: ¥ billions) 80 3.0 70 68.1 64.5 2.5 59.2 60 55.7 52.4 2.0 50 1.46 40 1.5 30 1.06 0.87 1.0 20 0.65 0.45 0.5 10 0 0.0 1H FY02 1H FY03 1H FY04 1H FY05 1H FY06 Net sales Recurring profit
Slide 5: Measures in core businesses
Measures in core businesses Forecasts of future performance are provided as a reference for investors. These forecasts are based on projections and estimates and do not represent an assurance or guarantee of future performance. Use this information with an understanding that actual results may diffe
Slide 6: 1. Toy business
1. Toy business
Slide 7: Solidify operational reforms
1. Toy business Solidify operational reforms Pursue rigorous product management by firmly establishing a standardized management system Manage about 14,000 items ● Reduce management costs by implementing operational reforms ● Establish foundation for profits by solidifying operational reforms
Slide 8: Increase market share by making Mori Toys a subsidiary
1. Toy Business Increase the group’s market share by making Mori Toys a subsidiary and accelerating the development of a full product line Toy market Difficult market environment lacking in leading items Toy business consolidated Sales of toys other than Bandai and first-half sales Happinet original
Slide 9: Toy business net sales, operating profit and sales forecast
1. Toy Business Toy business net sales, operating profit and sales forecast Net Operating Sales First half Full year Sales profit forecast (Sales: ¥ billions) (Operating profit: ¥ billions) (Sales: ¥ billions) (Operating profit: ¥ billions) 60 5 60 58.7 59.0 5 53.4 52.0 50 4 50 4 3.38 40 40 3 3 30 2
Slide 10: 2. Video-related business
2. Video-related business
Slide 11: Operational reforms: Wholesale business inventory
2. Video-related business Operational reforms: Wholesale business Product management measures: Reorganize inventory items, optimize the number of inventory items, and reduce inventory Video-related business: Trends in inventory value and the number of items Inventory value (¥ billions) Number of ite
Slide 12: Operational reforms: Customer measures
2. Video-related business Operational reforms: Wholesale business Customer measures: Identify and focus on key customers Companies and their sales share (not including internet sales and rental business) Revise trade terms Markup rates, shipping charges, Enhance efforts deposits, etc. 405 companies
Slide 13: Operational reforms: Exclusive titles business
2. Video-related business Operational reforms: Exclusive titles business ■ Create standards for acquiring titles Enhance the efficiency of identifying and focusing on titles to acquire ■ Strengthen Exclusive Titles Division through organizational reforms Exclusive titles business Acquisition、Film Ma
Slide 14: Enhance and expand infrastructure to produce exclusive titles
2. Video-related business ◇ Enhance and expand the infrastructure to produce exclusive titles in the Exclusive Titles Division Seek to maintain high-quality content and expand non-packaged business Investment in video titles (¥ billions) 1H FY 2005 1H FY 2006 FY 2005 FY 2006 (Est) Video titles inves
Slide 15: Exclusive Title Division: Major titles in the second half
2. Video-related business Exclusive Title Division: Major titles in the second half: Title Rights Genre Guemuru Investment & all domestic rights Foreign film No. 1 hit in S. Korea S. Korean drama directed by Winter Sonata’s Yoon Invitation Video game rights Foreign TV Suk-ho Cast includes Yasuko Mat
Slide 16: Video-related business net sales, operating profit and forecast
2. Video-related business Video-related business net sales, operating profit and sales forecast Net Operating Sales First half Full year Sales profit forecast (Sales: ¥ billions) (Operating profit: ¥ billions) (Sales: ¥ billions) (Operating profit: ¥ billions) 60 5 60 5 52.2 50 4 50 4 45.4 44.0 40 4
Slide 17: 3. Video game business
3. Video game business
Slide 18: Xbox and Xbox 360
3. Video game business ◆Xbox ◆Xbox360 360 ● ●Expand Expandlineup lineupof ofsoftware softwaretitles titles ・Main ・Main titles scheduled for releasewithin titles scheduled for release withinthe theyear year ・Dead ・Deador orAlive AliveXtreme Xtreme22(TECMO) (TECMO) November November2222release release
Slide 19: Xbox 360 release of Blue Dragon
3. Video game business ◆Xbox ◆Xbox360 360 Release Releaseof ofBlue BlueDragon Dragon on onDecember December77 Superb SuperbRPG RPGdeveloped developedbybyan anoutstanding outstandingcreative creativeteam team Producer: Producer:Hironobu HironobuSakaguchi Sakaguchi(Final (FinalFantasy Fantasyseries) s
Slide 20: PlayStation 3 release
3. Video game business ◆ ◆PlayStation PlayStation33(PS3) (PS3)Release: Release:November November11 11 ● ●Price Pricereduction reductionannounced announcedat atthe theTokyo TokyoGame GameShow Show PlayStation PlayStation33with withaa20GB 20GBhard harddrive. drive.Price: Price:¥49,980 ¥49,980(includin
Slide 21: Expansion of Nintendo game sales through Mori Toys
3. Video game business ◆ ◆ Expansion Expansionof ofNintendo Nintendogame gamesales salesthrough throughMori MoriToys Toys Consolidated sales of Nintendo titles (¥ billions) 10 8 7.6 6 4 2 1.3 0 1H FY05 1H FY06 Release Releaseof NintendoＷｉｉ ofNintendo Ｗｉｉ Release Releasedate: date:December December22
Slide 22: Video game business net sales, operating profit and forecast
3. Video game business Video game business net sales, operating profit and sales forecast Net Operating Sales First half Full year Sales profit forecast (Sales: ¥ billions) (Operating profit: ¥ billions) (Sales: ¥ billions) (Operating profit: ¥ billions) 50 5 60 50 48.0 40 4 50 40 30 3 40 32.4 30 28
Slide 23: 4. Amusement business
4. Amusement business
Slide 24: Amusement business net sales and operating profit trends and forecast
4. Amusement business Amusement business net sales and operating profit trends and sales forecast First half Full year (Sales: ¥ billions) (Operating profit: ¥ billions) (Sales: ¥ billions) (Operating profit: ¥ billions) 8 0.40 8 0.40 7 0.35 7 0.35 0.6 6 0.30 6 0.30 0.8 5 0.25 5 0.25 3.0 1.5 4 0.20
Slide 25: Installing kids' card game machines at toy vending locations
4. Amusement business ◇ Actively installing kids’ card game machines (amusement arcade games) at toy vending locations and developing a new market for mini play areas for kids. ● Seek to receive sales data instantly and Example of combining toy vending machines and reduce inventory risk by developin
Slide 26: Amusement business net sales and operating profit trends and forecast
4. Amusement business Amusement business net sales and operating profit trends and sales forecast Net Operating Sales First half Full year Sales profit forecast (Sales: ¥ billions) (Operating profit: ¥ billions) (Sales: ¥ billions) (Operating profit: ¥ billions) 10 1.0 10 1.0 8 0.8 8 0.8 7.0 6.3 5.9
Slide 27: Fiscal 2006 forecasts
Fiscal 2006 forecasts Forecasts of future performance are provided as a reference for investors. These forecasts are based on projections and estimates and do not represent an assurance or guarantee of future performance. Use this information with an understanding that actual results may differ from
Slide 28: Fiscal 2006 forecasts
Fiscal 2006 forecasts (¥ billions, %) Fiscal 2006 YoY forecasts change Consolidated Net sales 165 6.0 Operating profit 3.4 -0.6 Recurring profit 3.8 0.4 Net profit 2.4 5.7 consolidated Net sales 140 -9.2 Operating profit 2.9 -17.7 Non- Recurring profit 3.3 -14.6 Net profit 2.0 -8.6
Slide 29: Full year consolidated results and forecasts
Full year consolidated results and forecasts (Net sales: ¥ billions) (Recurring profit: ¥ billions) 180 5 165.0 160 155.7 140.4 3.78 3.8 4 140 122.5 122.7 120 3.03 3 100 80 2 60 1.38 1.32 40 1 20 0 0 FY02 FY03 FY04 FY05 FY06 (Est) Net Recurring Net sales Recurring profit sales profit forecast foreca
Slide 30: Fiscal 2006 consolidated sales forecasts by business segment
Fiscal 2006 Consolidated sales forecasts by business segment (¥ billions, %) Period Fiscal 2006 forecasts % of YoY Segment total change Toy business 59 35.8 4.7 Video-related business 44 26.7 -15.8 Video game business 48 29.1 47.8 Amusement business 7 4.2 18.6 Other businesses 7 4.2 10.5 Total 165 1