Stock Code: 7552 Happinet Corporation
Fiscal Year 2008 First Half Results Presentation November 14, 2008
0 Table of Contents
◆ Overview of Each Business ・・・・・・2P - Toy Business ・・・・・・3P~ 6P - Video-Related Business ・・・・・・7P~10P - Video Game Business ・・・・・・11P~14P - Amusement Business ・・・・・・15P~17P
◆ Full Year Projections for FY2008 ・・・・・・18P
◆ Next Generation Mission-Critical System・・・・ 19P
1 OverviewOverview ofof EachEach BusinessBusiness
KazuhikoKazuhiko NoteNote PresidentPresident andand COOCOO
2 ToyToy BusinessBusiness
3 Toy Business (1)
Bar chart: Net sales Line graph: Operating profit [Review of 1st half] Unit: Billion yen Character goods of units of superheroes 28.0 24.9 performed well. Sales fell slightly year on 26.0 23.4 year, partly because of the weak sales of 24.0 1.0 the Company’s original goods. 280 The Company struggled to achieve profits. 22.0 0.8 260 0.91 [Initiatives in 2nd half] 20.0240 0.6 220 ・ Establish appropriate stock levels in the 18.0 0.4 200 market and Company 0.2 16.0180 0.35 ・ Preserve credits thoroughly 160 14.0 ・ Bolster the sale of Bandai’s major 140 12.0120 products ・ 2008年3月期Interim period 2009年3月期1st half Rebuild an original goods development system 中間(※)of FY2007* 第2四半期累計of FY2008 Boosting sales in the year-end and New Year shopping season, paying attention to trends in the market.
In accordance with change in accounting standards in association with the introduction of the legally defined quarterly results disclosure system, we are announcing results in the first half, starting the current fiscal year. *Figures in the interim period of FY2007 are shown for reference. 4 Toy Business (2)
©2004-2008 BANDAI, WiZ
©ABC, Toei Animation Tamagotchi plus Color Yes! Pretty Cure 5 GoGo! Cure Fleuret
©2008 ISHINOMORIPRO ・ ©2008 TV ASAHI, TOEI AG・TOEI TV ASAHI, ADK, TOEI ©T.YANASE/ FROEBELLKAN, TMS, NTV Engine Sentai Go-Onger Masked Rider Kiva Go! Anpanman Engine Gattai series 10-12 DX Zambat Sword Hajimeteno Engine Gattai DX Kyoretsu-Oh Pasokon Daisuki 5 Toy Business (3)
[Promotions] TV, radio ・・・・・・19 Newspapers ・・・・・・7 Magazines ・・・・・・33 Websites ・・・・・・8 Free papers ・・・・・・2 (*As of November 30, planned ads are included.)
You will feel like you are saving money just by walking. The greatest media exposure Taxi Walker is a pedometer that translates the number ever for the Company’s original of steps into a taxi fare. goods Launched nationwide on October 31, 2008.
The product was developed against a backdrop of increasing diet consciousness, belt-tightening in association with the recent economic trend, and environmental consciousness on the individual level.
6 VideoVideo--RelatedRelated BusinessBusiness
7 Video-Related Business (1)
Bar chart: Net sales [Review of 1st half] Line graph: Operating profit 20.0 The structural reforms, which had been 18.6 Unit: Billion yen 19.0 underway since the previous fiscal year, 18.0 produced results. We shifted our focus 200 16.6 17.0 from sales to profit and changed our 190 organizational structure to establish a 16.0180 1.0 division-of-labor system. As a result, 15.0170 0.8 160 0.82 0.6 profit improved significantly. 14.0150 0.4 13.0140 [Initiatives in 2nd half] 0.2 12.0130 ・ Continue the strategy to emphasize 120 0.30 11.0 profit 110 10.0100 ・ Improve results in the next term by 2008年3月期Interim period 2009年3月期1st half acquiring works meeting demand in the of FY2008 market 中間(※)of FY2007* 第2四半期累計
Expecting results of the business structure reform
In accordance with change in accounting standards in association with the introduction of the legally defined quarterly results disclosure system, we are announcing results in the first half, starting the current fiscal year. *Figures in the interim period of FY2007 are shown for reference. 8 Video-Related Business (2)
(10,000 copies) 30 Crows Zero II Investment in production and sale of ‘08 sell-through DVDs have been determined 22 Zero Crows 20 Suzuran High School (Shun Oguri) vs. 30 Housen Gakuen High School (Haruma Miura) ‘03 With a new cast, the film is more violent than Crows Zero 25 ‘07 Chicago Hula Girl d 20 13 ase 10 ‘06 ele 15 Brothers The e r 9 Under-world ‘04 Grimm b 00 10 To in 2 5
0 * Shipping quantity is as of the end of September 2008. Only sell-through DVDs are counted. Cheap editions are excluded. © 2007 Hiroshi Takahashi “Crows Zero II” Production Committee © 2007 Hiroshi Takahashi “Crows Zero” Production Committee ● Hito no Sekkusu o Warauna, the first theatrical movie planned by Happinet, is selling. Release date: July 25, 2008
・ A wonderful cast, one difficult to put Sell-through 50,000 together today, was enabled through active negotiations, including negotiations Rental 25,000 on the script. ・ Partly because of the cast, the DVD is Total 75,000 supported by women in their 20s and 30s who do not buy DVDs very often.0 As of September 30, 2008 / Unit: copy © 2008 “Hito no Sekkusu o Warauna” Production Committee 9 Video-Related Business (3)
(C) 2008 BUICHI TERASAWA/A-GIRL RIGHTS/GUILD PROJECT © 2007 CASTELAO PRODUCTIONS,S.A. (C)2008 Fuji Television/ stylejam
TV Foreign TV TV Foreign TV Animation Film Animation Animation Film Animation Jan. 30 Feb. 27 Feb. 27 Jan. 30 Feb. 27 Feb. 27
Battle Spirits TYTANIA Into the Wild Shounen Toppa Bashin
A long-awaited TV Sean Penn created the In the elementary animation of Tytania, a movie based on a heart- school that Bashin legendary space opera tugging true story. The attends, a card game following Ginga Eiyu film is among his best called “Battle Spirits,” Densetsu, is going to work. popular globally, is start. catching on.
(C) Yoshiki Tanaka, Tytania 26 Partners (C) MMVII by RIVER ROAD ENTERTAINMENT, LLC and PARAMOUNT VANTAGE, (C) Sunrise, Nagoya Broadcasting Network A Division of PARAMOUNT PICTURES CORPORATION. All Rights Reserved. 10 VideoVideo GameGame BusinessBusiness
11 Video Game Business (1)
Bar chart: Net sales Line graph: Operating profit [Review of 1st half] Unit: Billion yen We catered to all platforms, covering the 24024.0 23.6 1.0 entire market. 20.2 Othe rs 20020.0 0.8 Xbox360 and PSP performed well. 16016.0 0.64 0.6 [Initiatives in 2nd half] Wii ・ 12012.0 Maximize sales of Xbox360 during year- DS 0.4 end and New Year peak season 8.080 0.48 PS 0.2 ・ Strengthen alliances with CVS 4.040 PSP companies in preparation for the release of Dragon Quest IX 0.00 2008年3月期 2009年3月期 ・ Bolster exclusive distribution for Interim period 1st half 中間(※) 四半期累計 midsize manufacturers of FY2007* of FY2008
Improving results, taking advantage of stable business conditions
In accordance with change in accounting standards in association with the introduction of the legally defined quarterly results disclosure system, we are announcing results in the first half, starting the current fiscal year. *Figures in the interim period of FY2007 are shown for reference. 12 Video Game Business (2)
(C)CAPCOM CO.,LTD. 2007,2008 ALL RIGHTS RESERVED. (C) Kosuke Fujishima (C)2008 NBGI
Tales of Vesperia became a Monster Hunter Portable major hit. About 150,000 units 2nd G scored a major hit, were sold in the market. driving sales of the main body. (Source: Famitsu Xbox December 2008 issue)
13 Video Game Business (3)
Wii, Nintendo DS • NDS Dragon Quest IX: Protectors of the Sky (Square Enix, to be released in March 2009) NovemberNovember 1, 1, 2008 2008 • Wii Music New DSi launched (Nintendo, released on October 16, 2008) New DSi launched • Wii Animal Crossing: City Folk (Nintendo, to be released on November 20, 2008) 14 AmusementAmusement BusinessBusiness
15 Amusement Business (1)
Bar chart: Net sales Line graph: Operating profit [Review of 1st half] Unit: Billion yen The Company consolidated its four 12.0 subsidiaries and started a new 120 9.3 10.0 system on October 1, 2008. 100 8.0 Initial costs were incurred in the 80 6.0 0.04 unification. 60 4.0 3.0 40 0.02 2.020 -0.02 0.0 [Initiatives in 2nd half] 0.02 ・ 0.00 -0.02 Develop a profit-generating system for the next term, making the most -2.0 -20 of synergy generated from the 2008年3月期Interim period 2009年3月期1st half of FY2008 unification. of中間(※) FY2007* 第2四半期累計
Developing a new business style, taking advantage of our large market share
In accordance with change in accounting standards in association with the introduction of the legally defined quarterly results disclosure system, we are announcing results in the first half, starting the current fiscal year. *Figures in the interim period of FY2007 are shown for reference. 16 Amusement Business (2)
Only nationwide Happinet Vending Service Corporation Ability to respond to network in the locations with great amusement industry reliability
Overwhelming number of business connections and strong balance sheet
Studying and developing a nationwide operation system, considering integrated synergy
17 Forecasts for Fiscal Year 2008
Forecast consolidated results for fiscal 2008 (Unit: Billion yen, %, fractions rounded down to nearest unit) FY08/3 FY09/3 E YoY growth Net sales 168.9 180.0 6.5 Operating profit 1.4 1.9 30.9 Recurring profit 1.5 2.0 27.4 Net profit -1.4 1.2 -
Sales forecasts for fiscal 2008 by segment (Unit: Billion yen, %, fractions rounded down to nearest unit)
FY FY09/3 E Segment FY08/3 Breakdown YoY growth
Toy business 57.7 65.0 36.1 12.5 Video-related business 38.5 35.0 19.4 -9.2
Video game business 54.5 55.0 30.1 0.9
Amusement business 12.9 20.0 11.1 54.4
Other business 5.1 5.0 2.8 -2.5 Total 168.9 180.0 100.0 6.5
18 Next Generation Mission-Critical System Developing a next generation mission-critical system and introducing distribution systems for the future Next generation Existing system system AdditionalAdditional functionfunction Speedy Speedy LowLow cost cost AdditionalAdditional CAP Three years functionfunction Three years system ¥¥33 billionbillion New open CAP system AdditionalAdditional AdditionalAdditional functionfunction functionfunction NewNew NewNew Applications are added as needed capabilitiescapabilities NewNew capabilitiescapabilities capabilitiescapabilities
Quickly responding to the diversifying needs of customers Introduction schedule Phased introduction of distribution system started in July EastEast JapanJapan WestWest JapanJapan EastEast JapanJapan SapporoSapporo FukuokaFukuoka No.No. 22 LCLC LCLC
Planning to introduce a unified, nationwide distribution system to all distribution bases by the end of March 19 Cautionary Statement
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 final results may vary.
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