Slide 1: Happinet Corporation
HAPPINET CORPORATION Stock Listing :Tokyo Stock Exchange Code Number :7552
Slide 2: Table of Contents
⽬次 of Contents Table First Half of FY2013 Financial Results 2 FY2013 First Half Results Summary 12 and Second Half Measures FY2013 Full Full--Year Projection 28 1
Slide 3: First Half of FY2013 Financial Results
First Half of FY201 FY2013 3 Financial Results Hideo Asatsu Board B d Di Director, t CFO 2
Slide 4: Change of business results
⽬次 Change of business results 1st hal f of 1st hal f of 1st hal f of 1st hal f of 1st hal f of FY2010 FY2011 FY2012 FY2009 FY2010 FY2011 FY2012 FY2013 Net sales million 89,829 85,090 88,507 76,211 87,371 190,891 198,021 176,757 Operating income million 930 1,240 2,316 1,007 1,551 2,855 4,855 2,973 O
Slide 5: Consolidated results for first half of FY2013: Profit & loss statement
⽬次 Consolidated results for first half of FY2013 (1)Profit & loss statement FY2012 FY2013 (¥ millions)) % of total YoY % of total YoY Net sales 76,211 100.0 -13.9 87,371 100.0 14.6 Including Jul. to Sep. of TOYS UNION Co.,LTD. (8,240) Cost of sales* 66,019 86.6 -13.9 76,587 87.7 16.0 Including dispo
Slide 6: Profit & loss statement: Change by business segment
⽬次 Consolidated results for first half of FY2013 (1)Profit & loss statement Change by business segment Net sales (¥ millions,%) 1 th 1st hall f off FY2012 1 th 1st hall f off FY2013 FY2012 % of total YOY % of total YOY % of total YOY Toy business 32,410 42.5 -4.9 31,880 36.5 -1.6 74,660 42.2 -3.4 Vi
Slide 7: Profit & loss statement: Change of sales by channel
⽬次 Consolidated results for first half of FY2013 (1)Profit & loss statement Change of sales by channel (¥ 100millions,%) 1 th 1st hall f off FY2012 1 th 1st hall f off FY2013 FY2012 % of total YOY % of total YOY % of total YOY Specialty stores* 259 34.1 -8.7 266 30.5 2.6 604 34.2 -3.5 General Mercha
Slide 8: Main business summary: Toy and Visual and Music
⽬次 Consolidated results for first half of FY2013 FY2013 (1) (1)Profit Profit & loss statement Main business summary T business Toy b i (¥ 100millions,%) 100 illi %) Visual and Music business (¥ 100millions,%) 7
Slide 9: Sales of video game platform
⽬次 Consolidated results for first half of FY2013 (1)Profit & loss statement S l off video Sales id game platform l tf (¥ 100millions,%) 1st hal f of FY2012 1st hal f of FY2013 FY2012 % of total YOY % of total YOY % of total YOY PlayStation y PS2,PS3 , 18 14 2 14.2 -31 31.4 4 16 74 7.4 -8 8.7 7 53 14
Slide 10: Balance sheet (assets)
⽬次 Consolidated results for first half of FY2013 (2)Balance sheet (¥ millions) 1st half of 1st half of FY2012 FY2012 FY2013 Change (Assets) Cash and deposits 10,512 10,155 10,541 386 Notes and accounts receivable-trade 23,398 27,234 28,569 1,334 Inventories 8,405 6,529 9,049 2,520 Advance payments-t
Slide 11: Balance sheet (liabilities and net assets)
⽬次 Consolidated results for first half of FY2013 (2)Balance sheet (¥ millions) 1st half of 1st half of FY2012 FY2012 FY2013 Change (Liabilities) Notes and accounts payable-trade 21,541 22,672 22,795 123 short-term short term debt - - 6 000 6,000 6,000 6 000 Accounts payable-other 3,127 2,656 2,531 -
Slide 12: Cash-flow statement
⽬次 Consolidated results for first half of FY2013 FY2013 (3)Cash 3)Cash--flow statement (¥ millions)) 1st half of 1st half of FY2012 FY2013 Change Net cash provided by (used in) operating activities -1,306 -3,093 -1,786 Income before income taxes and minority interests 1,022 1,838 815 Depreciation an
Slide 13: First Half of FY2013 Results Summary, Second Half Plan
Fi t Half First H lf off FY201 FY20133 Results R lt Summary S Second Half of FY2013 Plan Kazuhiko Note President and COO 12
Slide 14: First Half of FY2013 Results Summary
⽬次Half of FY2013 Results Summary First (¥ millions) 13
Slide 15: First-Half Results Summary: Toy Business
目次 First FY2013 First--Half Results Summary Toy Business (million yen) Both net sales and segment g income were lower than year year--ago levels, influenced by the change of the month of commencement of the broadcasting of certain popular character programs, although y featuring sales of toys g Jyuu
Slide 16: Second-Half Measures: Toy Business
目次 Second- FY2013 Second-Half Measures Toy Business Expand p sales of popular p p products p towards year y end * Targets for Oct. - Dec. ■ Sales of Bandai’s products in Happinet: Happinet: Target a year year--on on--year increase of 10%* 2,000 2 000 dedicated fixtures manufactured Installed in Kame
Slide 17: Second-Half Measures: Toy Business, original products
FY2013 Second- Second-Half Measures Toy Business Offer original / exclusive distribution products grand prize g p 2013” “Tekichu Nyanko” Ikimono version “Ultimate Ultimate Hunter” Hunter “Micro Chargers” “New Ame de Wataame” 16
Slide 18: First-Half Results Summary: Visual and Music Business
目次 First FY2013 First--Half Results Summary Visual and Music Business ((million y yen)) Amid the stagnation g of the package p g market caused by growth in online content distribution, etc., segment income increased significantly year on year with the strong performance of g y profitable highly p or
Slide 19: Second-Half Measures: Population by age and video rental market
⽬次 Second- FY2013 Second-Half Measures Visual and Music Business Comparison p of Population p by y age g and video rental market （million people） people） Approach this area Japanese population Rental shop user For expanding video rental market, it’s urgent need to approach seniors. 18
Slide 20: Joint campaign with five Japanese film companies
目次 Second- FY2013 Second-Half Measures Visual and Music Business Implement p a joint j campaign p g with five Japanese p film companies p (rental ( products) p ) ●Purpose Purpose●● Reconstruct the rental market by changing the user structure through the full stimulation of the seniors group, g p, a
Slide 21: Funded/Exclusive distribution products
⽬次 Second- FY2013 Second-Half Measures Visual and Music Business Funded/Exclusive distribution products Expectant products in Second Half of Y2013 Hit products in First Half of Y2013 20
Slide 22: First-Half Results Summary: Video-Game Business
目次 First FY2013 First--Half Results Summary Video--Game Business Video (million yen) TOYS UNION Co., Ltd. Net sales: 8,240 million yen (July 1 – September 30) Despite the emergence of some hit products, the overall package market was weak mainly due to the growth of social games games. Although sale
Slide 23: Second-Half Measures: Video-Game hardware
目次 Second- FY2013 Second-Half Measures Video--Game Business Video Expand sales of new hardware and strengthen distribution outlets in line with the product lineup. PlayStation®4 S ® PlayStation®Vita Released on October 10, 2013. Evolved to be more casual To be released on February 22, 2014 and easie
Slide 24: Strengthen sales by increasing market share
目次 Second- FY2013 Second-Half Measures Video--Game Business Video Strengthen sales by increasing the market share share. July 2013: Fully consolidated Toys Union Co., Ltd. as a subsidiary (wholesale of video games) Becoming a size Toys Union Mori Games (existing subsidiary) [Third largest distribu
Slide 25: Second-Half Measures: Original products
目次 Second- FY2013 Second-Half Measures Video--Game Business Video Offer original products Released on November 14, 2013 Released on November 28, 2013 To be released in 2014 Picture book touching cultures A total of 300,000 units around the world. The “Pengin no Mondai +” series in were sold in serie
Slide 26: First-Half Results Summary: Amusement Business
目次 First FY2013 First--Half Results Summary Amusement Business (million yen) Both net sales and segment income increased significantly year on year as the performance of toy vending machine products remained firm, in addition to strong demand for Aikatsu! and Dragon Ball Heros in products for kids c
Slide 27: Kids card game machine sales proposals
目次 Second- FY2013 Second-Half Measures A Amusement tBBusiness i Propose p sales site with kids card game g machine p plus something g extra Aikatsu! Kamen Rider Yokai Watch Liked Linked Happinet’s monopoly Kids card game machine Kids card game machine Kids card game machine + + + Capsule + Card + J
Slide 28: POS system for capsule toy vending machines
目次 Second- FY2013 Second-Half Measures Amusement Business Introduction of a POS system to capsule toy vending machines An eject sensor and communications equipment q p are embedded. Real-time sales data are Real- used in merchandising. POS system has been installed at 50 retail outlets. We p plan to
Slide 29: FY2013 Full-Year Projection
FY2013 Full Full--Year Projection Kazuhiko Note President and COO 28
Slide 30: FY2013 Full-Year Projection
⽬次 FY2013 Full-Year projection Full- (¥ millions) 29
Slide 31: Projection by business segment
⽬次 FY2013 Full-Year Projection Full- Sales projection by business segment (¥ millions) Income projection by business segment (¥ millions) 30
Slide 32: Sixth Medium-Term Management Plan CAP14
目次Medium Sixth Medium--Term Management Plan CAP14 (Change ( g And Partnership) p) Grow as a comprehensive entertainment trading company and venture into new business domains Sustainable growth of existing businesses P Promotet the th strategy t t off gaining i i the th No.1 N 1 market k t share h in
Slide 33: Happinet
Happinet