Annual Report 2016（English）

TOMY’s annual report has received a number of awards, including in two leading U.S. annual report competitions, the LACP Vision Awards and the International ARC Awards, demonstrating that the report is well received overseas for its content and expression. We will continue to position dialogue with our stakeholders as the basis of a host of CONTENTS corporate activities and work to communicate information to our shareholders and investors in an easy-to-understand format. 2015 ARC WE KEEP EVOLVING GRAND WINNER 01 Introduction ARC Philosophy and Mission TOY SECTOR 02 International ARC Awards GOLD 03 Business Model Grand Award in the Summary Annual Review Category/ 1st (Gold) in the Toy Manufacture and Sales/Grand Winner 04 Competitiveness in the Specialized & Summary Annual Reports category 05 FY2015 Performance 06 Business Highlights WHY WE EVOLVE 08 Strategy and Vision LACP「2014/15 Vision Awards」 LACP 5th among the Top 50 Worldwide; WORLDWIDE 09 Message from the President & CEO 1st [Platinum] in the Consumer/Consumables Industry TOP 5 11 Looking Back on the Fiscal Year Ended March 31, 2016 2014 16 Strategy for Future Growth 20 With Stakeholders ARC TOY SECTOR GOLD HOW WE EVOLVE 22 Special Feature: Realizing Evolution International ARC Awards 24 ENDLESS: Developing New Ways to Play in Step 1st (Gold) in the Summary with the Changing Times Annual Review Category 26 AGELESS: Incorporating New Age Groups 28 BORDERLESS: New Marketing 30 POA: New Selling Spaces and Product Deployment 32 From Products to Brands LACPLACP「2013/142013/14 Vision Awards Awwards」 FOUNDATION FOR EVOLUTION LACP 6th among the Top 50 Worldwide; WORLDWIDE 34 CSR: Supporting Evolution 1st (Platinum) in the Consumer/Consumables Industry TOP 6 35 Message from the Chairman of the Board 2013 36 Management and Initiatives 38 Priority Issue 1: Dedication to Quality Manufacturing LACP WORLDWIDE 40 Priority Issue 2: Sound Management Execution TOP 19 42 Priority Issue 3: Coexistence with Society and the Global Environment 44 Corporate Governance 48 Products and History 52 Board of Directors and Audit & Supervisory Board Members LACPLACP「2012/132012/13V Visionision AwardsAwards」 Six-Year Financial Summary 19th among the Top 50 Worldwide; 56 1st (Platinum) in the Consumer/Consumables Industry 58 Corporate Information/Stock Information WE KEEP EVOLVING Since its founding in 1924, the TOMY Company has continued to provide “new value from play” as a leading company in the toy industry. At present, the whole concept of toys and playing is undergoing major changes due to the spread of smartphones, tablets and the advent of SNS. TOMY, which has a long history of cultivating products and brands, is compelled to evolve along with the changing times. Amid these conditions, in 2014, the year we commemorated the 90th year since our founding, we unveiled a New Medium-Term Management Plan and launched three revolutions: “revolution of mind,” “product revolution” and “structural revolution of business.” In the fiscal year ended March 2016, the second year of this plan, we have begun seeing results, having achieved net sales growth for eight consecutive quarters.*1 Since April 2016, we have been accelerating our evolution toward further growth under the four keywords ENDLESS, AGELESS, BORDERLESS and POA*2, which are critical for the toy market going forward. This year’s annual report is a compilation of subjects illustrating the TOMY Company’s evolution. The “Message from the President & CEO” offers a market outlook and corresponding strategies that expound on the direction of our evolution. The “Special Feature” presents specific initiatives for realizing this evolution based on the aforementioned four keywords. And, the “Corporate Social Responsibility” explains the Group’s CSR approach and initiatives, which are the foundation supporting our evolution. Through this report, we hope to facilitate an understanding of how this evolution will lead to the growth of the TOMY Group. *1 Sales excluding the impact from the transfer of shares in TOYS UNION Co., Ltd., and TATSUNOKO PRODUCTION Co., Ltd. *2 POA: Point of Availability 01 PHILOSOPHY AND MISSION Our core philosophy to “bring smiles to the faces of children the world over through our outstanding products,” and the corporate mission serve as a judgment criterion for each of us, pointing out the correct path across the years and in various situations. We will hold fast to this navigational tool as we respond to the challenges of the times and the changing environment with a shared sense of values. FOUNDING PHILOSOPHY CORPORATE MISSION Let’s excite the world’s Our mission is to fulfill markets with our the dreams of our outstanding products. stakeholders, including Our sincerity and diligence The dreams of children will contribute to society The dreams of our employees and lead to our own The dreams of our shareholders success and happiness. The dreams of our business partners The dreams of society We will create new value from play. 02 TOMY COMPANY, LTD. ANNUAL REPORT 2016 BUSINESS MODEL Evolution is achieved through business activities (business model), from planning and development, to manufacturing, sales, promotion and after-sales service. By fine-tuning our numerous ideas, originality and development capabilities, and our safety and mass-production technologies, we create high-value-added products while cultivating and strengthening brands. Value created in this way is delivered to all our stakeholders. CUSTOMERS MAN UFA CT UR IN E G M P Y CONTROL L T ITY O E L I UA Y C T Q High-spec, E ・ E O N advanced S E S functionality M ・Safety, ・Repeatability P O durability ・Mass-production L ・ High-spec, technologies E advanced V ・Production functionality E capabilities D ・ Giving shape ・Cost-reduction to ideas Sales technologies expansion ・Coordination ・Numerous plans with partners ・Ability to amass ideas Price × Media mix ・Ability to edit ideas ・ units sold Japan, overseas G ・・Maximizing IP N N Sales channels O I C ・ o I ・Patenting n es tr l T N a ibu it s ・POA expansion ・Coordination te to d un O N prices an M A with O L partners R P P D ・Coordination N with developers User feedback A ・ S E L S A B S R U E S D I L N O E H S E S R P CE A AR AF RVI H T TER-SALES SE S NE RS 03 COMPETITIVENESS Our evolution will be accelerated by the experience and expertise accumulated by the Group up to now through the cultivation of products and brands and the development process. We will create opportunities for new value and earnings by converting core products into brands. Going forward, we aim to create toys for a new era and thrive on tangible and intangible assets. Industry leader in the number of registered trademarks More than 60 leading brands Product rollouts in 15 of the 16 toy categories Long-selling products shipped TOMICA DUEL MASTERS More than 600 million products Approximately 5 billion cards with more than 880 types in total PLARAIL TRANSFORMERS More than 155 million products More than 130 countries and regions where with more than 1,300 types in total TRANSFORMERS have been launched More than 500 million products sold 0 4 TOMY COMPANY, LTD. ANNUAL REPORT 2016 FY2015 PERFORMANCE Substantial increase in domestic New products using proprietary and shipments of core products other company IPs performed favorably TOMICA: Highest ever on 20% increase YoY *1 STEPPY: Exceeded store sales target in December PLARAIL: Highest ever on 10% increase YoY *1 by about 30% LICCA dolls: Highest earnings in 23 years on MOCOMOJI ORINA: Ranked No. 1 in girls’ toys for 1 year-end sales an increase of approximately 50% * STAR WARS: Exceeded domestic sales target by about 20% Customer satisfaction ratio*2 BIG BET (highest priority products) at all-time high of new deployment BEYBLADE BURST sales launched in July Domestic shipments increased 30% YoY *1 No. 1 in story comics Total of 3,500 events held 98.4% Free machine operations TOMY sales in December hit record high No. 1 customer for single month Top vendor for 11 months straight *1 Shipments of TOMY in Japan for FY2015 *2 In-company investigation (data collection period: April 2015–March 2016) 05 BUSINESS HIGHLIGHTS Consolidated Earnings Net Sales: In addition to the favorable performance of core products and battle toys for boys in the Japanese market, the release of licensed products in overseas markets led to the eighth consecutive quarter of sales growth.* *Sales excluding the impact from the transfer of shares in TOYS UNION Co., Ltd., and TATSUNOKO PRODUCTION Co., Ltd. Income: Advertising and R&D expenses increased in line with sales expansion, as operating income growth was buoyed by higher gross profit in line with increased sales. Profit attributable to owners of parent reported a loss due to the recognition of impairment losses on goodwill at an overseas subsidiary and some intangible assets resulting in an extraordinary loss. Toy Market In the fiscal year ended March 31, 2016 (FY2015), the Japanese toy market had a value of ¥800.3 billion. This figure was essentially the same level of sales as in the fiscal year ended March 31, 2015, which saw the highest sales in the past 10 years. Compared with the previous fiscal year, when sales were driven by major hit characters, in the fiscal year under review core products for boys and girls grew substantially. By category, interactive toys (up 31.8% YoY), boys’ toys (up 16.7%) and trading card games (up 10.5%) achieved particularly noteworthy growth. (Source: The Japan Toy Association) RESULTS FOR THE YEAR ENDED MARCH 2016 NET SALES: ¥163.0 billion OPERATING INCOME: ¥2.6billion EBITDA: ¥11.6 billion NET SALES ( ) OPERATING INCOME ( ) EBITDA OVERSEAS SALES RATIO (–) OPERATING MARGIN (–) 41.6 (Billions of yen) % (%) (Billions of yen) (%) (Billions of yen) 200 40 12 8 20 150 3 0 9 6 15 11.6 Billion 163.0 100 Billion 2 0 6 4 10 2.6 Billion 50 10 3 2 5 1.7 0 0 0 % 0 0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 06 TOMY COMPANY, LTD.

Load more