Slide 1: Fiscal Year 2006 Results Presentation
Fiscal Year 2006 Results Presentation May 11, 2007 Happinet Corporation Estimates of future performance are provided as a reference for investors. They are based on projections and estimates and should not be construed as an assurance or guarantee of future performance. When using this information,
Slide 2: Fiscal Year 2006: Overview of Consolidated Operating Results
Fiscal Year 2006: Overview of Consolidated Operating Results Toy Video-related Video game business Amusement business Other Eliminations and business business (VG) (AM) business corporate Net sales 0 500 1000 1500 AM Other FY06/3 Toy Video VG ¥155.7 billion FY07/3 ¥160.6 billion Operating profit
Slide 3: Strategies in Each Business Segment for the Current Fiscal Year
Strategies in Each Business Segment for the Current Fiscal Year Estimates of future performance are provided as a reference for investors. They are based on projections and estimates and should not be construed as an assurance or guarantee of future performance. When using this information, please k
Slide 4: Toy Business: Strategies for the Current Fiscal Year
Toy Business: Strategies for the Current Fiscal Year Toy Business: Strategies for the Current Fiscal Year 3
Slide 5: Toy Business: Strategies for the Current Fiscal Year
Toy Business: Strategies for the Current Fiscal Year Increase market share, leveraging our strong distribution and information functions, and viewing oligopolization as an opportunity amid market contraction Toy market Happinet Toy Business Sales (retail basis) (wholesale basis) (Unit: 100 milli
Slide 6: Toy Business: Increase Market Share Through New Sales Channels
Toy Business: Strategies for the Current Fiscal Year Increase market share, leveraging our strong distribution and information functions, and viewing oligopolization as an opportunity amid market contraction 1. Increase market share through strategic and aggressive efforts together with new sales ch
Slide 7: Video-Related Business: Strategies for the Current Fiscal Year
Video-Related Business: Strategies for the Current Fiscal Year Video-Related Business: Strategies for the Current Fiscal Year 6
Slide 8: Wholesale Business
Video-Related Business: Strategies for the Current Fiscal Year Wholesale Business 1. Strategic initiatives for the e-commerce channel as a new sale channel Channel breakdown in the DVD market, estimated by Happinet (FY05/3 - FY07/3) 86% 78% 14% 22% FY05/3 FY07/3 e-commerce Real stores, etc. “Drop
Slide 9: Wholesale Business Results from Marketing Reforms
Video-Related Business: Strategies for the Current Fiscal Year Wholesale Business Results from Marketing Reforms Customer measures – Identify and focus on key customers Merchandize management strategies – Excluding Internet Sales and the Rental Business Changes in the number of items Sales share
Slide 10: Exclusive Titles Business
Video-Related Business: Strategies for the Current Fiscal Year Exclusive Titles Business Film Investment (Unit: 100 million yen) FY06/3 FY07/3 FY08/3E Film investment 29 21 26 1. Strengthen strategic networks and invest in high-quality content (Cinequanon/Art Port, etc.) Lucky Number 7 Pattigi!
Slide 11: Exclusive Titles Business: Construct a profit and loss management system
Video-Related Business: Strategies for the Current Fiscal Year Exclusive Titles Business 2. Bolster the management system in the Exclusive Titles Business, clarify responsibilities and foster producers Management accounting by segment Rights Rental Planning Distribution Sell DVD Sales Sales Product
Slide 12: Video Game Business: Strategies for the Current Fiscal Year
Video Game Business: Strategies for the Current Fiscal Year Video Game Business: Strategies for the Current Fiscal Year 11
Slide 13: Strengthen the collaboration with Nintendo through MORI GAMES
Video Game Business: Strategies for the Current Fiscal Year Strengthen the collaboration with Nintendo through MORI GAMES Sales in the Video Game Business ¥45.0 billion ¥48.0 billion DS, Wii PS3, PS2, PSP ¥32.4 billion Others MORI TOYS becomes our subsidiary FY06/3 FY07/3 FY08/3E Video Game Busi
Slide 14: Xbox360, PS3, Nintendo DS
Video Game Business: Strategies for the Current Fiscal Year • Xbox360 - Increase market share by releasing major titles • Trusty Bell – Chopin’s Dream (NAMCO BANDAI Games) Release date: June 14 • Lost Odyssey (Microsoft) Release date: 2007 • Halo3 (Microsoft) Release date: 2007 • Gundam Operation Tr
Slide 15: Amusement Business: Strategies for the Current Fiscal Year
Amusement Business: Strategies for the Current Fiscal Year Amusement Business: Strategies for the Current Fiscal Year 14
Slide 16: Amusement Business: Growing Sales Channels for Capsule Toy Vending Machines
Amusement Business: Strategies for the Current Fiscal Year Aggressive development of growing sales channels for the capsule toy vending machine, such as in-station outlets and large shopping centers 1. Major effort to introduce the capsule toy vending machine into in-station outlets, a first for Jap
Slide 17: Amusement Business: Operation of the fee business
Amusement Business: Strategies for the Current Fiscal Year Operation of the fee business: Focus on efficiency and responding to large projects through integrated management Corporate Division Wholesale Wholesale Agent 1 Store Installs vending machines and delivers products Manufacturer Happinet Agen
Slide 18: Forecasts for Fiscal Year 2007
Forecasts for Fiscal Year 2007 Forecast consolidated results for fiscal 2007 (Unit: 100 million yen, %) FY07/3 FY08/3E YoY growth Net sales 1,606 1,650 2.7 Operating profit 21 23 6.8 Recurring profit 25 27 5.7 Net profit 16 17 5.2 Sales forecasts for fiscal 2007 by segment (Unit: 100 million yen, %)
Slide 19: Review of the Medium- to Long-Term Management Plan
Review of the Medium- to Long-Term Management Plan Estimates of future performance are provided as a reference for investors. They are based on projections and estimates and should not be construed as an assurance or guarantee of future performance. When using this information, please keep in mind t
Slide 20: Review Happinet Dream 08, the 4th Medium- to Long-Term Management Plan
Review Happinet Dream 08, the 4th Medium- to Long-Term Management Plan 1. Create new mainstays that will the core next-generation businesses. Allocate the necessary resources to create new business mainstays so that we grow and develop in an evolving network society. 2. Construct a platform that res
Slide 21: Dream 08: Create new mainstays for next-generation business
Review Happinet Dream 08, the 4th Medium- to Long-Term Management Plan 1. Create new mainstays that will be at the core of next-generation business. Allocate the necessary resources to create new business mainstays so that we grow and develop in an evolving network society. business Video game Toy b
Slide 22: Dream 08: Construct a platform that responds to all business needs
Review Happinet Dream 08, the 4th Medium- to Long-Term Management Plan 2. Construct a platform that responds to all business needs. In marketing, emphasize a proactive approach to flexibly respond to all customer needs and their growth, leveraging our next-generation information systems and acting o
Slide 23: Dream 08: Establish a content business that has initiative
Review Happinet Dream 08, the 4th Medium- to Long-Term Management Plan 3. Establish a content business that has initiative. Establish a new business model that encompasses distribution, by creating the functions to invent, produce, and supply quality content (including content created overseas). Pro
Slide 24: Results forecast: Net sales and Recurring profit
Review Happinet Dream 08, the 4th Medium- to Long-Term Management Plan Results forecast (Unit: 100 million yen) FY05/3 FY06/3 FY07/3 FY08/3 FY09/3 (Actual) (Actual) (Actual) Net sales 1,404 1,557 1,606 1,650 2,000 Recurring profit 30 37 25 27 50 2500 60 2000 40 1500 Net sales Recurring profit 1000 2