Toei Animation Co., Ltd. · TSE:4816
Toei Animation — FY2023.3 Earnings Presentation
25 slides from Toei Animation's earnings presentation, March 2023
Slide 1: Financial Results Briefing Material
Financial Results Briefing Material For Fiscal Year Ended March 31, 2023 (April 1, 2022, to March 31, 2023) Toei Animation Co., Ltd.
Slide 2: Contents
Contents 01. Financial Results for FY2023.3 02. Outlook for FY2024.3 03. Future Business Prospects
Slide 3: 01. Financial Results for FY2023.3
01. Financial Results for FY2023.3
Slide 4: Financial Results Summary
Financial Results Summary ◼ Net sales and prof its posted record highs f or f ull year, growing by large margins ◼ All segments performed stronger compared with a year earlier thanks to the huge success of the three movie titles ◼ The ratio of overseas sales was 55%; economic situation including fur
Slide 5: Year-on-Year Changes
Ye a r - o n - Ye a r C h a n g e s ◼ Sales substantially increased in Film Overseas and Movies thanks to the huge success of the three movie titles in Japan and overseas. ◼ The big hits of Movies had ripple effects on Licensing Overseas and Japan as well as Sales of Goods. (Million Yen) 5
Slide 6: FY2023.3 Results Segment Breakdown—Consolidated
FY2023.3 Results Segment Breakdown—Consolidated ◼ Significant increases in net sales and segment income reflecting the huge success of the three movie titles and its synergy effects. ◼ Sales of Goods as well as Others segments, which posted loss during the COVID-19 pandemic, also turned profitable.
Slide 7: FY2023.3 Results Segment Analysis (1) (Film)
FY2023.3 Results Segment Analysis (1) (Film) FY22.3 FY23.3 Film ( 79.4％ year on year) (Million Yen) Results Results • In the Movies segment, revenues increased significantly on the back of production revenue from Net Sales 57,020 87,457 the record-breaking hit movies 「THE FIRST SLAM DUNK」 and 「ONE P
Slide 8: Trends in Film Overseas
Tr e n d s i n F i l m O ve r s e a s ◼ In sales of North American online distribution rights, IP values r o s e t h a n k s t o t h e s u c c e s s o f ONE PIECE and DRAGON BALL movies. S a l e s were strong as the success of the movies resulted in new contracts and increases in the number of views
Slide 9: Film Business: Topics
F i l m B u s i n e s s : To p i c s 「Dragon Ball Super: SUPER HERO」 「ONE PIECE FILM RED」 「THE FIRST SLAM DUNK」 ・ Worldwide box-office revenue exceeded ¥13.8 billion ・ Worldwide box-office revenue exceeded ・ Worldwide box-office revenue exceeded ¥30.0 billion (still ・ Became No. 1 in weekend box-off
Slide 10: FY2023.3 Results Segment Analysis (2) (Licensing, Sales of Goods, Others)
FY2023.3 Results Segment Analysis (2) (Licensing, Sales of Goods, Others) Licensing ( 27.5% year on year） FY22.3 FY23.3 (Million Yen) • In domestic licensing, revenues increased significantly Results Results due to the strong sales of game development rights and merchandising rights of ONE PIECE and
Slide 11: Trends in Domestic Licensing
Tr e n d s i n D o m e s t i c L i c e n s i n g ◼ Both game development rights and merchandising rights were robust for ONE PIECE, as the favorable impact of the movie ONE PIECE FILM RED continued. ◼ The DRAGON BALL series performed strong led by game development rights starting from the release of
Slide 12: Trends in Overseas Licensing
Tr e n d s i n O ve r s e a s L i c e n s i n g ◼ By region, the app game development rights of the DRAGON BALL series were strong in North America. Strong performance of the DIGIMON card game contributed among merchandise rights. ◼ In terms of business breakdown, both game development rights and m
Slide 13: Licensing, Sales of Goods, Others Businesses: Topics
L i c e n s i n g , S a l e s o f G o o d s , O t h e r s B u s i n e s s e s : To p i c s Domestic Licensing Overseas Licensing Sales of Goods ONE PIECE BOUNTY RUSH DRAGON BALL Z CASETiFY THE FIRST SLAM DUNK official merchandise ONE PIECE CARD GAME BOOSTER DIGIMON CARD GAME Mugiwara Store (Shibuya
Slide 14: FY2023.3 Results Review
FY2023.3 Results Review ◼ Both sales and profits increased significantly and operating margin also improved thanks to the impact of the three movie titles. ◼ Non-operating income rose, as the Company received temporary dividends from a company it invests in. ◼ Realized high efficiency while maintain
Slide 15: Balance Sheet Digest
Balance Sheet Digest ◼ The three major movie titles have been shifted to cost of sales and work in process declined. ◼ 「KNIGHTS OF THE ZODIAC」 was completed and finished products increased. (Million Yen) FY2022. FY2023. Account title Change Account title FY2022.3 FY2023.3 Change 3 3 Notes and accoun
Slide 16: 02. Outlook for FY2024.3
02. Outlook for FY2024.3
Slide 17: Earnings Estimates for FY2024.3—Consolidated
Earnings Estimates for FY2024.3—Consolidated (Reference) (Million Yen) FY2023.3 Results FY2024.3 Estimates % Change FY2023.3 Initial Estimates Net Sales 87,457 72,000 -17.7% 70,000 SG&A 12,296 13,500 +9.8% 11,700 Operating Income 28,669 17,500 -39.0% 18,300 Ordinary Income 29,791 17,800 -40.3% 18,90
Slide 18: Earnings Estimates for FY2024.3: Segment Breakdown
Earnings Estimates for FY2024.3: Segment Breakdown Film ( 16.0％ year on year) • Revenues from Movies are expected to decline greatly due to a reactionary decline to the large-scale titles released in FY23.3 FY24.3 the previous fiscal year. (Million Yen) • Revenues from TVs are likely to decline due
Slide 19: Hollywood-Type Business Model
H o l l y w o o d - Ty p e B u s i n e s s M o d e l ◼ Build a global distribution network using the Hollywood -type business model to make a full-scale foray into the global animation market. ◼ Record as assets by assuming secondary use and revenues over a long period of time. ◼ Carry out amortizat
Slide 20: 03. Future Business Prospects
03. Future Business Prospects
Slide 21: Business Environment Perceived by the Company
Business Environment Perceived by the Company Current status Future Taking on the challenge of developing the Responding to global growth global market (Trillion yen) Sales of Animation Market 3.0 in Japan and Overseas Overseas export business 2.0 Global animation market Overseas sales of leading 30
Slide 22: Toei's Title Portfolio
Title Portfolio Overseas FY2023 to FY2026 market About 15 titles - Large-scale projects targeting Hollywood About 10 titles - Large-scale projects targeting Hollywood - TV / movie projects - Large-scale revival projects - YouTube projects - High-end CG projects Original To e i ’ s titles original ti
Slide 23: Initiatives Aimed for Medium- and Long-Term Growth (Development of Titles)
I n i t i a t i v e s A i m e d f o r M e d i u m - a n d L o n g - Te r m G r o w t h (Development of Titles) Creating new IP ｢ KAIJU DECODE ｣ ｢IKIMONO-SAN｣ ｢Spicy Candy｣ ｢ Future’s Folktales ｢The Monkey Prince 「GIRLS BAND CRY｣ Distribution of a short CG Selected to compete in the short First proje
Slide 24: Dividends: 155 yen per share
Dividends ◼ Implementation of financial policy focused on balancing a robust financial foundation, investments in new businesses, and returns to investors. ◼ For FY2023.3, the Company expects to pay a dividend of 155 yen for a payout ratio of about 30%. For FY2024.3, it plans to decide the dividend
Slide 25: Precautions regarding outlook
[Precautions regarding outlook] The contents described in this material are based on judgments and assumptions made with reference to information available as of the time of writing. The Company does not warrant that estimated figures, strategies or measures will necessarily be achieved. ©BIRD STUDI