Take And Give. Needs Co., Ltd. · TSE:4331
Take And Give. Needs — FY2005 Earnings Presentation
45 slides from Take And Give. Needs's earnings presentation, May 17, 2006
Slide 1: Take and Give. Needs Corporate Presentation
TAKE AND GIVE.NEEDS Corporate Presentation MAY 17, 2006 Financial results: Fiscal year ended March 31, 2006 TSE 1st section:4331 http://www.tgn.co.jp/ir/index_e.html 4331
Slide 2: Contents
CONTENTS 1. FISCAL YEAR ENDED MARCH 31, 2006 3. MEDIUM-TERM GROWTH STRATEGY ● Growth strategy (1) Overall strategy 18 Summary of financial statements: (1)(2)(3) 1-3 (2) Targets 19 T&G: Trends in number of venues and sales 4 (3) Market background 20 (4) Outline 21 T&G: Trends in sales and gross profi
Slide 3: Fiscal Year Ended March 31, 2006
1 FISCAL YEAR ENDED MARCH 31, 2006
Slide 4: Summary of financial statements (1)
Summary of financial statements: (1) Financial highlights (million yen) Fiscal years Quarterly results of FY to 3/2006 FY to 3/2005 FY to 3/2006 Change 1Q 2Q 3Q 4Q Net sales 21,830 33,962 +55.6% 7,788 7,519 10,517 8,137 Gross profit 12,088 18,617 +54.0% 4,267 4,118 5,750 4,481 Net sales ratio (%) 55
Slide 5: Summary of financial statements (2)
Summary of financial statements: (2) Sales by segment (million yen) FY to 3/2005 FY to 3/2006 Change Total net sales 21,830 100.0% 33,962 100.0% +55.6% Directly managed venues 17,967 82.3% 30,433 89.6% +69.4% Restaurant alliances 2,666 12.2% 2,532 7.5% -5.0% Other 1,195 5.5% 996 2.9% -16.6% House we
Slide 6: Summary of financial statements (3)
Summary of financial statements: (3) Assets etc. (million yen) End of March,2005 End of March,2006 Change End of June,2005 End of September,2005 End of December,2005 Total assets 17,185 19,212 2,026 15,932 18,164 17,665 Shareholders' equity 8,959 11,865 2,905 9,855 10,356 11,794 Shareholders' equity
Slide 7: Trends in number of venues and sales
T&G: Trends in number of venues and sales From 2001, focusing on development of directly managed venues 10,000 100 Weddings at Directly managed venues 8,000 Weddings at affiliate 80 restaurants Affiliate restaurants 62 6,000 Directly managed halls 60 4,000 40 2,000 13 20 0 0 FY to FY to3/2002 3/2002
Slide 8: Trends in sales and gross profit margin
T&G: Trends in sales and gross profit margin Gross profit margin increased along with the rise in the number of halls. Due to the effects of the sales campaign in 3Q& 4Q of FY to 3/2005, FY to 3/2006 gross profit margin was lower. Looking forward, improving profitability is a key issue. (million yen
Slide 9: 2 year trend in gross profit margin
T&G: 2 year trend in Gross profit margin Gross profit margin at directly managed was lower due to the sales campaign in 3Q& 4Q of FY to 3/2005. Recovery was largely on track until the 3rd quarter. Looking forward, improving profitability is a key issue. T&G gross profit Directly managed gross profit
Slide 10: Ordinary income ratio and SG&A ratio
T&G: Ordinary income ratio and SG&A ratio As new directly managed venues were opened, pre-opening preparation expenses trended upwards and the rate of management expenses for structural enhancements peaked in FY 3/2004. The sales to rent ratio increased with the implementation of the SPC scheme in J
Slide 11: Trends in CAPEX and cash flow
T&G: Trends in CAPEX and Cash flow 2001 IPO raised the funds required for 2004 house wedding venue expansion period Until 2004, only shareholders’ equity and debt were used for CAPEX Venue development changed with the SPC implementation in 2005. CAPEX has dropped significantly and Free cash flow is
Slide 12: Trends in ROE, ROA, shareholders' equity ratio
T&G: Trends in ROE,ROA , Shareholders’ equity ratio ROE growth following the rise in profitability Major improvements ROA and Shareholders’ equity following the introduction of the SPC. ROE ROA Shareholders' equity ratio Interest bearing debt ratio 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% FY t
Slide 13: House weddings: Trends in number of venues by region
House weddings: Trends in the number of venues by region Since 2004, with the growth in the house wedding market, T&G’s market share has been trending upwards due to our efforts to expand our regional venues 80 20% Within Tokyo Major cities Other regions Share of house wedding market* 60 15% 40 10%
Slide 14: House weddings: Sales of new and existing venues per hall
House weddings: Trends in sales of new and existing venues per wedding hall Along with the growth in scale, the sales to existing venues ratio increased From improvements in regional venues, sales per wedding hall are on the rise (million yen) 35,000 700 30,000 600 25,000 500 20,000 400 15,000 300 1
Slide 15: House weddings: Unit price and utilization ratio
House weddings: Unit price and Utilization ratio Utilization ratio dropped temporarily with the roll out of regional development Following improvements in utilization—supported largely from improvements in regional venues—unit price has leveled and utilization ratio has improved Regional Utilization
Slide 16: House weddings: Existing venues
House weddings: Existing venues Net sales increase by ¥337 million from improvements in operations mostly in the regional venues despite unit prices remaining relatively flat Gross profit ratio was lower due to the effects of the sales campaign Ordinary income decreased ¥254 million largely from the
Slide 17: Affiliate restaurants: Financial results
Affiliate restaurants: Financial results Since establishment in 1998 T&G’s used affiliate restaurants mainly in inner-Tokyo Since 2001, T&G has focused primarily on developing directly managed venues and each affiliation is now being reconsidered (¥ Million) (¥ Million) 3,000 25 Net sales Monthly av
Slide 18: Forecasts for fiscal year ending March 31, 2007
2 FORECASTS FOR FISCAL YEAR ENDING MARCH 31, 2007
Slide 19: Income forecast for FY ending March 31, 2007
Income forecast for FY ending March 31, 2007 Net sales: 45,367 million yen （ FY ended March 2006 33,962 million ＋33.6%） Ordinary income: 7,156 million yen （ FY ended March 2006 5,153 million ＋38.9% ） Net income: 4,186 million yen （ FY ended March 2006 2,905 million ＋44.1% ） New venues ・ Next fiscal
Slide 20: Planned venues: 16 venues and 23 halls scheduled to open
Planned venues: 16 venues and 23 halls are scheduled to open On-site booking offices at 10 locations have already been opened (As of April 2006) OPEN Venue Name Venue Type April 2006 Aqua Garden Terrace (Osaka) 1 Hall May 2006 Bayside Geihinkan (Matsuyama) 2 Hall June 2006 Aqua Terrace Geihinkan (Sh
Slide 21: Status of orders (End of March, 2006)
Status of orders (End of March,2006) 47% 55% 51% Bookings as of March 31, 2006/no. of weddings planned for FY 2007. 2005 2004 ■ Orders procured are lower than last fiscal year ⇒ Influence of that many venues will open in 3Q&4Q ■ Efforts are underway to boost venues with a ‘Status of orders’ of less
Slide 22: T&G Future Strategy from 2006
3 T&G FUTURE STRATEGY from 2006- Medium-term growth strategy
Slide 23: Medium-term growth strategy: Overall strategy
Medium-term growth strategy: (1) Overall strategy Building on our wedding business to become a lifestyle company WEDDING (1) WEDDING (2) WEDDING (3) LIFE House weddings Weddings in resort area Wedding –related Lifestyle-related Management business business business 18
Slide 24: Medium-term growth strategy: Targets
Medium-term growth strategy: (2) Targets By setting up new businesses around lifestyle changes that occur during the wedding preparation period as a 1st target, T&G is aiming to be a comprehensive lifestyle company Wedding preparation Everyday Pre-marriage period Post-marriage Everyday living life &
Slide 25: Medium-term growth strategy: Market background
Medium-term growth strategy: (3) Market background Wedding preparation period is characterized by short-term purchasing on a very large scale The database of customers were are building in this market is key for the expansion of associated businesses 3-6 months Wedding ceremony New Pre-wedding Weddi
Slide 26: Medium-term growth strategy: Outline of strategy
Medium-term growth strategy: (4) Outline of strategy In addition to venue development we have established our portal site business ⇒ from this we have accumulated a large and growing database of our customers Venue development business House weddings PORTAL SITE Overseas, Domestic resorts weddings B
Slide 27: Venue development business
Venue development business Just one part of T&G’s development of the wedding business
Slide 28: Venue development strategy
5% Venue development strategy Targeting 5% of the ¥2 trillion market—¥100 billion in sales HW House wedding business ■ Complete venue development in FY 2007 and focus on improving revenues ・At the end of FY to 3/2007, 85 halls ⇒As of next term each venue will be evaluated on an individual basis. Reg
Slide 29: Portal Site Business
Portal Site Business Develop pre- and post-wedding services in addition to those during the wedding preparation period Building businesses from effective use of our data base
Slide 30: Portal site business: Positioning the portal site
Portal site business (1) Positioning the portal site Sougou Seikatsu Co., Ltd. The wedding database is a tool for expanding future businesses Aiming to create an enlarged database by assembling information of all T&G’s customers Wedding customers using T&G Customers not using T&G facilities faciliti
Slide 31: Portal site business: Outline of strategy
Portal site business (2) Outline of strategy Sougou Seikatsu Co., Ltd. Leverage T&G marketing and know-how to attract more customers Business will expand through our regular customers attracted by the comprehensive contents provided Recruit Maintain customers and Business customers expand customer b
Slide 32: Portal site business: Page views and site visits
Portal site business (3) Current: Number of page view and site visits Sougou Seikatsu Co., Ltd. Established September 2005 1,281,451 Page views: Page views (PV) of T&G sales page increased in March Site visitors: 107,000 Wedding preparation room PV (Number of site visitors) (Number of ＰＶ’s) Wedding
Slide 33: Portal site business: Elements of differentiation
Portal site business (4) Elements of differentiation Sougou Seikatsu Co., Ltd. How T&G achieved an increase in page views and site visits in such http://www.kekkon-j.com/ a short time 1 From the knowledge of handling over 8,000 weddings annually, our contents are devised to reflect the voice of our
Slide 34: Portal site business: Contents
Portal site business (5) Contents Sougou Seikatsu Co., Ltd. “Oshiete! Kekkon” Introduces the types of products people will want to use at their weddings Teaching about weddings Number of Q&A as of May 519 The world’s most marvelous weddings Shows a variety of actual weddings in various setting such
Slide 35: Portal site business: Contents (Monomagazine, Blogs)
Portal site business (5) Contents Sougou Seikatsu Co., Ltd. Kekkon Monomagazine Introduces the types of products people will want to use at their weddings Number of products as of May 367 Wedding Blogs A variety of Blogs including wedding preparation Blogs and wedding planner Blogs Number of Blogs a
Slide 36: Portal site business: Future endeavors
Portal site business (6) Future endeavors Sougou Seikatsu Co., Ltd. Setting the stage for customer expansion over the next two years Focusing on enhancing the contents and strengthening the system *September 2005 to March 2006 Net sales: ¥64 million Operating income: ¥10 million FY 03/2007 FY 03/200
Slide 37: Associated Opportunities
Associated Opportunities Businesses that will become core revenue sources as T&G moves to the next stage
Slide 38: Bridal financing business: Basic strategy
Associated opportunities (1) Bridal financing business: Basic strategy Life Angel Co., Ltd Loan Long-term target is 10% share of overall bridal market Building non-store operations and high profits ■ Business system High profits and risk avoidance (1) Establishment of a high-profit system through no
Slide 39: Bridal financing business: Current status
Associated opportunities (1) Bridal financing business：Current status T&G 3.9% ・Outstanding loans at end of March 2006: ¥137 million Number of weddings with outstanding loans：106 (business started on Oct. 15, 2005) ・In the FY ended in March 2006, in order to boost order among our target customers ce
Slide 40: Travel business: Basic strategy
Associated opportunities (2) Travel business: Basic strategy Anniversary Travel Co. Ltd. Travel Offer commemorative travel focusing mainly on honeymoon travel. Aim to acquire general customers such as corporations, etc. in the future ■ Business system Effective use of Internet websites. Aiming for a
Slide 41: Travel business: Current situation
Associated opportunities (2) Travel business: Current situation Start full-fledged operations from May 2006 ■Sales structure・・・Non-store sales. Sales system using “My Page”, where Aiming to acquire 700 T&G wedding couple customers in FY ending private conversations with customers are possible over t
Slide 42: Beauty business: Basic strategy
T&G Beauty Co. Ltd. Associated opportunities (3) Beauty business: Basic strategy Beauty Amid high demand for bridal beauty clinics, taking on the challenge of entering the beauty business. Starting from spas (such as lava spas) Demand and market growth potential ■ High (1) In the Tokyo metropolitan
Slide 43: Beauty business: Current situation
Associated opportunities (3) Beauty business :Current situation Opening of 6 facilities scheduled in FY ending March 2007 First facility to open in Daikanyama on May 11 ■Outline of magma RELAXATION SPA Relaxed modern reception design. Various rooms available that can take Shower room in each room. l
Slide 44: New businesses will be the driver of growth
2006 2009 Until FY ending March 2008, growth will come from the house wedding business From FY ending March 2009 onward, new businesses will be the driver of growth House wedding business New business preparation period Mar. 2007 Mar. 2008 Mar. 2009 36
Slide 45: Take and Give. Needs disclaimer
T A K E A N D G I V E. N E E D S This material is intended to provide information about the business performance and strategy of Take and Give. Needs Co., Ltd. (T&G). It is not intended to be and should not be construed as an inducement to purchase or sell stock in T&G. Statements in this presentati