Fiscal Year 2002 Six Month Business Performance and Second Half Outlook
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Fiscal Year 2002 Six Month Business Performance and Second Half Outlook November 11, 2002 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 that the final results may vary. ■Direct any inquiries to the Public Relations Team – e-mail:[email protected] 1. First Half FY2002 Environment, Strategy and Results <Domestic<Domestic Economy>Economy> Conditions remain severe due to: ・High unemployment rates ・Stagnant personal consumption ・Decrease in capital investment First Half FY2002 Results (Million yen) Period Ending 9/2001 9/2002 Year-over-Year Sales 57,051 55,783 97.8% Consolidated Recurring Profit 651 657 100.9% net income(half year) 264 421 159.5% Sales 45,234 17,257 38.2% Non-consolidated Recurring Profit 498 120 24.1% net income(half year) 273 205 75.1% -1- 1. First Half FY2002 Environment, Strategy and Results First Half FY2002 sales by product (consolidated) (100 million yen, %) Period Ending September 2002 (interim) Product Component Ratio Year-over-Year Toys 225 40.3 137.9 Childcare products 15 2.6 98.3 Video games 151 27.0 60.3 Amusement 28 5.0 100.4 Videos 126 22.6 123.4 Others 14 2.4 113.5 Total 558 100.0 97.9 -2- 1. First Half FY2002 Industry, Strategy and Results ToyToy BusinessBusiness <Industry><Industry> ・・ ToysToys forfor boysboys :: SalesSales ofof actionaction toystoys havehave slowed,slowed, whilewhile salessales ofof Bandai Bandai charactercharacter productsproducts werewere favorable.favorable. ・・ ToysToys forfor girlsgirls :: SalesSales ofof charactercharacter productsproducts werewere soft,soft, butbut hobbyhobby productsproducts becamebecame popular.popular. <Strategy><Strategy> ・・ ToTo strivestrive forfor enhancedenhanced partnershipspartnerships withwith majormajor enterprisesenterprises andand areaarea dealersdealers through through fullfull line-upline-up ofof productproduct offering.offering. ・・ ToTo promotepromote integrationintegration ofof informationinformation flowflow fromfrom manufacturer/dealermanufacturer/dealer toto establishestablish aa basisbasis forfor thethe SupplySupply ChainChain Management.Management. <First<First Half Half FY2002 FY2002 Results> Results> SalesSales ofof 22.522.5 billionbillion yen;yen; Year-over-yearYear-over-year comparisoncomparison 137.9%137.9% ・・ FavorableFavorable conditionsconditions forfor Bandai’sBandai’s charactercharacter productsproducts forfor boysboys andand hobbyhobby productsproducts forfor girls.girls. ・・ ExpandedExpanded handlinghandling ofof productsproducts byby manufacturersmanufacturers suchsuch asas TOMY.TOMY. ・・ SalesSales ofof capsulecapsule toystoys areare strongstrong asas aa resultresult ofof thethe alliance alliance withwith leadingleading convenienceconvenience store.store. -3- 1. First Half FY2002 Industry, Strategy and Results VideoVideo GameGame BusinessBusiness <Industry><Industry> ・・ IsolatedIsolated hitshits withwith SonySony ComputerComputer Entertainment’sEntertainment’s PlayStationPlayStation 22 software,software, whilewhile PlayStationPlayStation 22 consolesconsoles werewere alreadyalready widespread.widespread. ・・ SalesSales ofof Microsoft’sMicrosoft’s XboxXbox werewere softsoft duedue toto thethe lacklack ofof availableavailable software,software, despitedespite thethe priceprice reduction.reduction. <Strategy><Strategy> ・・ StrengtheningStrengthening communications/relationshipscommunications/relationships withwith dealers.dealers. <First<First Half Half FY2002 FY2002 Results> Results> SalesSales ofof 15.115.1 billionbillion yen;yen; Year-over-yearYear-over-year comparisoncomparison 60.3%60.3% ・・ PlayStationPlayStation 22 waswas notnot accompaniedaccompanied byby leadingleading titles,titles, andand asas aa result,result, salessales throughthrough company’scompany’s salessales channelschannels fellfell shortshort ofof initialinitial estimates.estimates. ・・ SalesSales ofof XboxXbox werewere softsoft duedue toto thethe lacklack ofof accompanyingaccompanying software.software. -4- 1. First Half FY2002 Industry, Strategy and Results VideoVideo BusinessBusiness <Industry><Industry> ・・ FurtherFurther marketmarket penetrationpenetration ofof DVDDVD players.players. ・・ SalesSales werewere goodgood forfor popularpopular titlestitles suchsuch asas HarryHarry PotterPotter andand thethe Sorcerer'sSorcerer's StoneStone andand SpiritedSpirited AwayAway.. <Strategy><Strategy> ・・ ToTo increaseincrease salessales perper titletitle byby reducingreducing thethe numbernumber ofof originaloriginal titles.titles. <First<First Half Half FY2002 FY2002 Results> Results> SalesSales ofof 12.612.6 billionbillion yen;yen; Year-over-yearYear-over-year comparisoncomparison 123.4%123.4% ・・ PositivePositive salessales resultedresulted fromfrom popularpopular titlestitles suchsuch asas HarryHarry PotterPotter andand thethe Sorcerer'sSorcerer's StoneStone andand SpiritedSpirited AwayAway.. ・・ AnimeAnime TVTV series,series, FullFull MetalMetal Panic,Panic, becamebecame aa hit.hit. -5- 1. First Half FY2002 Environment, Strategy and Results ToyToy Vendors/AmusementsVendors/Amusements BusinessBusiness <Industry><Industry> ・・ AlthoughAlthough salessales werewere favorablefavorable toto somesome popularpopular videovideo gamegame titlestitles andand photophoto stickersticker machinesmachines forfor amusementamusement facilities,facilities, overalloverall industryindustry conditionsconditions werewere challenging.challenging. <Strategy><Strategy> ・・ ToTo establishestablish aa nationwidenationwide operationsoperations networknetwork throughthrough organizationorganization ofof thethe HappinetHappinet GroupGroup andand vendorvendor operators.operators. <First<First Half Half FY2002 FY2002 Results> Results> SalesSales ofof 2.82.8 billionbillion yen;yen; Year-over-yearYear-over-year comparisoncomparison 100.4%100.4% ・・ OfOf thethe leadingleading products,products, salessales ofof toystoys forfor vendingvending machinemachine werewere soft.soft. ・・ FavorableFavorable salessales ofof thethe “Masked“Masked RiderRider Ryuki”Ryuki” resulted resulted fromfrom thethe introductionintroduction ofof Bandai’sBandai’s charactercharacter cardcard gamesgames suchsuch asas “Jumbo“Jumbo CardCard Dasu”Dasu” for for toytoy vendingvending machinesmachines ・・ SalesSales werewere favorablefavorable forfor thethe “Soreike!“Soreike! Anpanman”Anpanman” capsule capsule toytoy series.series. -6- 1. First Half FY2002 Profit and Loss Profit and Loss: Business Group and Major Subsidiaries (Million yen) Multimedia Business Digital Entertainment Business Amusement Business Group Group Group Year-over-Year Year-over-Year Year-over-Year Sales 11,140 61.6% 3,305 107.3% 2,812 100.7% Recurring Profit 169 256.2% △ 262 92.3% 100 187.9% (million yen) Happinet JP Happinet Pictures Happinet Logistics Service Happinet Robin Corporation Corporation Corporation Corporation Year-over-Year Year-over-Year Year-over-Year Year-over-Year Sales 27,902 1128.3% 12,402 108.9% 2,605 163.1% 1,315 108.4% Recurring Profit 437 - 222 61.0% △ 17 -29.3% 30 45.7% Note 1: Figures for the Digital Entertainment Business represents a year-over-year comparison with the Wonder Swan Business Group. Note 2: On October 1, 2001, Happinet’s toy business group was merged into a wholly-owned subsidiary of Happinet JP Corporation. On March 1, 2002, Toyokuni Corporation, a wholly-owned subsidiary which joined the Happinet Group as of October 1, 2001, was merged into Happinet JP Corporation. On March 1, 2002, operations of Matsui Sakae Toys Co., Ltd. were transferred to Happinet JP Corporation. -7- 2. Business Development and FY Forecasts Toy Business Distribution of products by manufacturers other than the Bandai Group expanded through Happinet JP Corporation’s complete product offering strategy. First Half FY2002 Toy Sales Results (100 million yen) 250 225 200 (100 million yen) 148 9/2001 150 (non-consolidated) 9/2002 0 Bandai Group 126 168 100 22 57 2001/9 Other manufacturers Other manufacturers Total 148 225 50 単体 Bandai Group 0 9/2001 9/2002 non-consolidated Toy Sales Results and Plan Throughout FY (100 million yen) 600 532 (100 million yen) 500 409 FY 2003 400 Fiscal 2002 (forecast) Year-over-Year 300 Bandai Group 323 390 120.7% 200 Other manufacturers 86 141 164.0% Other manufacturers 100 Total 409 532 130.1% Bandai Group 0 3/2002 3/2003 forecast -8- 2. Business Development and Strategic Priorities Toy Business Happinet JP Original Products Distribution of products based on powerful characters from manufacturers such as Bandai, TOMY and TAKARA only through Happinet JP Differentiation from competitors © 1983 - 2002 TOMY © 1999 - 2001 SHO-PRO・MBS・JRK ・ZOIDS Battle Series (TOMY) ・Platinum Dream Jenny (TAKARA) ・Masked Rider Ryuki Soft Figure (Bandai) 30 products are ready for sale, including the above, and many more are in the planning stages. © 1983 - 2002 TOMY ©1999 - 2001 SHO-PRO・MBS・JRK ■ Introduce the products to approximately 500 specialty stores as a way to differentiate them from general merchandise stores. ■ Direct consumers to stores through publicity in such outlets as hobby magazines and newspapers. ■ Provide support in sales promotion and introduction of dealers through the Happinet JP website. Original products for leading enterprises are being planned. -9- 2. Business Development and Strategic Priorities Toy Business Initiatives with Seven-Eleven Japan Co., Ltd. Barrier to toys Large number of manufacturers / Quickly evolving