Slide 1: Fiscal Year 2011 Results Briefing
HAPPINET CORPORATION Stock Listing :Tokyo Stock Exchange Code Number :7552 Fiscal Year 2011 Results Briefing May 21, 2012
Slide 2: Table of Contents
Table of Contents FY2011 Results Summary 2 FY2011 Financial Results 8 Review of the Fifth Medium-Term Management Plan 18 (April 1, 2009 – March 31, 2012) Sixth Medium-Term Management Plan 20 (April 1, 2012 – March 31, 2015) FY2012 Full-Year Projection 26 1
Slide 3: FY2011 Results Summary
FY2011 Results Summary Kazuhiko Note President and COO 2
Slide 4: FY2011 Results Summary
FY2011 Results Summary (¥ millions; rounded down, %) FY2010 FY2011 YOY Net sales 190,891 198,021 3.7% Operating income 2,855 4,855 70.0% Ordinary income 3,013 5,032 67.0% Net income 1,376 2,458 78.6% 3
Slide 5: FY2011 Results Summary: Toy Business
目次 FY2011 Results Summary Toy Business Net sales (million yen) Operating income by segment (million yen) 77,313 The market drivers were character products 69,104 3,009 for both boys and girls, including toys 65,654 featuring Kamen Rider Fourze. Kaizoku 2,321 Sentai Gokaiger and Tamagotchi. Both net
Slide 6: FY2011 Results Summary: Visual and Music Business
FY2011 Results Summary Visual and Music Business Net sales (million yen) Operating income by segment (million yen) 67,838 The segment achieved brisk income as 57,759 a result of promoting Business Structural 55,719 Reform, although the Group is struggling 448 due to the stagnating package market ami
Slide 7: FY2011 Results Summary: Video-Game Business
FY2011 Results Summary Video-Game Business Net sales (million yen) Operating income by segment (million yen) 46,447 44,372 42,704 Despite the emergence of new game consoles and some hit products, performance was weak as the Company 1,156 faces a difficult market environment due to 1,035 the spread o
Slide 8: FY2011 Results Summary: Amusement Business
FY2011 Results Summary Amusement Business Net sales (million yen) Operating income by segment (million yen) 22,282 Both net sales and operating income by segment were solid due to hit character 17,579 1,801 products for boys, namely capsule toys 16,381 from vending machines, including those featurin
Slide 9: FY2011 Financial Results
FY2011 Financial Results Hideo Asatsu Board Director, CFO 8
Slide 10: Change of business results
Change of business results Fiscal period FY2007 FY2008 FY2009 FY2010 FY2011 Net sales \million 168,958 166,778 194,246 190,891 198,021 Operating income \million 1,451 2,137 2,327 2,855 4,855 Ordinary income \million 1,569 2,322 2,513 3,013 5,032 Net income \million -1,490 1,135 1,179 1,376 2,458 Com
Slide 11: Consolidated results for FY2011: Profit & loss statement
Consolidated results for FY2011 （１）Profit & loss statement (¥ millions; rounded down,%) FY2010 FY2011 % of total YoY % of total YoY Net sales 190,891 100.0 -1.7 198,021 100.0 3.7 Cost of sales* 168,564 88.3 -1.9 173,013 87.4 2.6 Gross profit 22,326 11.7 -0.6 25,007 12.6 12.0 SG&A expenses 19,471 10.
Slide 12: Change by business segment
Consolidated results for FY2011 （１）Profit & loss statement ①Change by business segment ■ Net sales (¥ millions; rounded down,%) Period FY2009 FY2010 FY2011 Segment % of total YoY % of total YoY % of total YoY Toy business 65,654 33.8 6.2 69,104 36.2 5.3 77,313 39.0 11.9 Visual and Music business 67,
Slide 13: Change of sales by channel
Consolidated results for FY2011 （１）Profit & loss statement ②Change of sales by channel (¥ billions; rounded down,%) Period FY2009 FY2010 FY2011 Segment % of total YoY % of total YoY % of total YoY Specialty stores* 63.9 32.9 15.6 65.3 34.2 2.3 62.5 31.6 -4.2 General Merchandise store 35.6 18.4 32.1
Slide 14: Main business summary
Consolidated results for FY2011 （１）Profit & loss statement ③Main business summary ■Toy business (¥ billions; rounded down,%) Period FY2009 FY2010 FY2011 Manufacturer % of total YoY % of total YoY % of total YoY Bandai Co.,Ltd 35.0 53.3 ー 37.4 54.2 7.0 42.3 54.8 13.1 Tomy Co.,Ltd 8.5 13.1 ー 7.0 10.2
Slide 15: Sales of video game platform
Consolidated results for FY2011 （１）Profit & loss statement ■ Sales of video game platform (¥ billions; rounded down,%) Period FY2009 FY2010 FY2011 Platform % of total YoY % of total YoY % of total YoY PlayStation3（PS3） 6.0 13.6 57.4 5.5 12.0 -7.8 6.7 15.9 22.3 PlayStation2（PS2） 0.9 2.2 -67.1 0.4 1.0
Slide 16: Consolidated results for FY2011: Balance sheet (assets)
Consolidated results for FY2011 (2)Balance sheet (¥ millions; rounded down,%) FY2010 FY2011 Change (Assets) Cash and deposits 8,220 12,359 4,138 Notes and accounts receivable-trade 23,206 26,755 3,548 Merchandise 6,436 6,168 -267 Advance payments-trade 1,016 634 -381 Deferred tax assets 939 926 -13
Slide 17: Consolidated results for FY2011: Balance sheet (liabilities)
Consolidated results for FY2011 (2)Balance sheet (¥ millions; rounded down,%) FY2010 FY2011 Change (Liabilities) Notes and accounts payable-trade 20,204 23,042 2,838 Accounts payable-other 3,225 3,351 125 Income taxes payable 1,038 1,605 567 Provision for bonuses 314 472 158 Other 1,054 1,145 90 Cur
Slide 18: Consolidated results for FY2011: Cash-flow statement
Consolidated results for FY2011 （3）Cash-flow statement (¥ millions; rounded down,%) FY2010 FY2011 Change Net cash provided by (used in) operating activities 5,083 4,609 -473 Income before income taxes and minority interests 2,820 4,311 1,491 Depreciation and amortization 781 688 -92 Impairment loss
Slide 19: Review of the Fifth Medium-Term Management Plan
Review of the Fifth Medium-Term Management Plan Kazuhiko Note President and COO 18
Slide 20: Review of the Fifth Medium-Term Management Plan
Review of the Fifth Medium-Term Management Plan Strengthen the foundations as a comprehensive entertainment trading company ■ Highest priority issue ■ Promote profit structural reform While the ordinary income margin target was 1.5%, achieved 2.5%, far exceeding the target. (Billion yen) Net sales
Slide 21: Sixth Medium-Term Management Plan
Sixth Medium-Term Management Plan (April 1,2012 - March 31,2015) Kazuhiko Note President and COO 20
Slide 22: Sixth Medium-Term Management Plan: CAP14
Sixth Medium-Term Management Plan CAP14 Change And Partnership Grow as a comprehensive entertainment trading company and venture into new business domains Sustainable growth of existing businesses Venture into new business domains Strengthen and establish distributing functions 21
Slide 23: Sustainable growth of existing businesses
Sixth Medium-Term Management Plan * Market share data are from the Company’ Company’s own research Sustainable growth of existing businesses Further growth in existing businesses as an intermediate distributor Toy Business Visual and Music Video-Game Business Amusement Business Business 14% 12% Curr
Slide 24: Venture into new business domains
Sixth Medium-Term Management Plan Venture into new business domains Grow further by aiming to enter new business domains ––Specific Specificmeasures measures–– Expanding Expanding““Happinet Happinet originals ” originals” Proactively Proactivelyenter enternew newbusiness businessfields, fields,inclu
Slide 25: Strengthen and establish distributing functions
Sixth Medium-Term Management Plan Strengthen and establish distributing functions Upgrade system functions and create functions for sustainable long- term growth, such as by expanding existing businesses and entering new businesses Start developing a advanced support system that links manufacturers
Slide 26: Sixth Medium-Term Plan targets
Sixth Medium-Term Management Plan (Billion yen) (Billion yen) ¥250.0 billion 250.0 ¥7.0 billion 7.0 ¥198.0 billion ¥200.0 billion 200.0 ¥5.0 billion ¥4.5 billion 5.0 150.0 100.0 3.0 FY2011 FY2012 - FY2014 Result Plan Plan Ordinary income margin 2.5% 2.3% 2.8% FY2014 targets: Net sales at ¥250.0 bill
Slide 27: FY2012 Full-Year Projection
FY2012 Full-Year Projection Kazuhiko Note President and COO 26
Slide 28: Major business operation investments in FY2012
FY2012 Full-Year Projection Major business operation investments in FY2012 (including costs) Amusement business • Cost of purchasing and installing toy vending machines ¥1.4 billion and card game machines (FY2011: ¥0.8 billion) • Cost of upgrading card game machines Development of new main system ¥0
Slide 29: FY2012 Full-Year Projection
FY2012 Full-Year Projection (¥ millions; rounded down,%) FY2012 FY2011 YOY projection Net sales 198,021 200,000 1.0% Operating income 4,855 4,300 -11.4% Ordinary income 5,032 4,500 -10.6% Net income 2,458 2,500 1.7% 28
Slide 30: Sales and income projection by business segment
FY2012 Full-Year Projection ■Sales projection by business segment (¥ millions; rounded down,%) Period FY2011 FY2012 Segment % of total YoY % of total YoY Toy business 77,313 39.0% 11.9% 78,000 39.0% 0.9% Visual and Music business 55,719 28.1% -3.5% 55,000 27.5% -1.3% Video-Game business 42,704 21.6%