Fiscal Year 2009 First Half Results Presentation(642KB)
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Stock Code: 7552 Happinet Corporation Presentation on First Half Results for Fiscal Year 2009 November 16, 2009 0 Table of Contents Overview of First Half Results for FY2009 ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 2 Overview of Each Business in First Half of FY2009 ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 3 Toy business ・・・・・・・・・・・・・・・・・・・・・・・・・・ 4 Visual and Music Business ・・・・・・・・・・・・・・ 6 Video game business ・・・・・・・・・・・・・・・・・・・ 10 Amusement business・・・・・・・・・・・・・・・・・・・ 14 Full Year Projections for FY2009 ・・・・・・・・・・・・ 17 1 OverviewOverview ofof FirstFirst HalfHalf ResultsResults forfor FY2009FY2009 HideoHideo AsatsuAsatsu BoardBoard DirectorDirector CFOCFO andand SeniorSenior ManagingManaging DirectorDirector 2 OverviewOverview ofof EachEach BusinessBusiness forfor FirstFirst HalfHalf ofof FY2009FY2009 KazuhikoKazuhiko NoteNote PresidentPresident andand COOCOO 3 Overview of Each Business in First Half of FY2009 Toy Business (1) Toy business Net sales and operating profit Review of the 2nd quarter Net sales Operating profit 30,000 2,000 ) n e 24,953 24,546 Sales of Bandai character y 23,409 n o i toys were strong. l 1,500 l i m 20,000 ( s e l Inventories were reduced a s 1,000 t 916 e and profit improved N 10,000 substantially as a result of 681 500 yen) Operating profit(million thorough measures to raise efficiency, including 356 inventory management. 0 0 Interim period 1st half 1st half of FY2007 of FY2008 of FY2009 4 Toy Business(2) Half ofFY2009 Overview ofEachBusinessinFirst in 2nd half: A Disposal costs *Reference: Inventory quantity;Disposalcosts Consolidation ofProcurement Divisions Inventory quantity ( 1 0 0 million yen) 10 20 30 40 50 60 0 Inventory value;Disposalcosts, Inventoryquantity Reduce costs for managing inventor Interm period period Interm pprox. ¥1.0 billio of FY2007 of 48 2.7 Promptly identify and maintain thepr and maintain Promptly identify n Appr of FY2008 50 1st half half 1st ox. ¥ 5.6 1.2 billion inventory Value of y while maintaining service quality of FY2009 of 33 1st half half 1st 3.4 costs Disposal 5 oper company-wide inventory quantity 0 2 4 6 8 10 Disposal costs( 1 0 0 million yen) Inventory quantity As ofendMarch2009 (and the quantity of items handled) As ofendSeptember2009 Approx. 15,000Items Approx. 10,000Items manufacturer upon request fromthe directly shipped are inventory Items not in stock as Visual andMusicBusiness (1) Half ofFY2009 Overview ofEachBusinessinFirst Net sales (million yen) Visual andMusicbusiness 10,000 20,000 30,000 40,000 0 Net SalesandOperatingProfit Interim period period Interim 18,606 of FY07 of 301 Net sales 16,637 of FY08 of 1st half 823 Operating profit 33,483 1st 1st half of FY09 ‐ 63 -500 0 500 1,000 1,500 6 Operating profit (million yen) a difficult struggle. on business reforms andwasfacing Wint, however, hadjustembarked by Happinet. either investedinor exclusively sold with ahighprofit marginthatare and other video-productionproducts by theCrowsZeroII bolstered was theslumpi Despite Profits subsidiary inMarch2009 leading WintCorporationasa Income byacquiringtheindustry- Happinet substantiallyincreased Sales Review ofthe2ndQuarter ng market,profit Overview of Each Business in First Half of FY2009 Visual and Music Business (2) Inventory value Wint Happinet Total As of end of Approx. ¥5.2 Approx. ¥1.5 Approx. ¥6.7 September 2009 billion (reference) billion billion Approx. ¥4.0 billion As of end of Approx. ¥1.5 Approx. ¥1.2 Approx. ¥2.7 reduction September 2009 billion billion billion Target for improving Wint’s logistics expenditures Target: Between 3.0 Happinet Visual Wholesale Wint and 3.5% Logistics expenditures 2.2% 4.5% Shipping costs (million yen) Return costs (million yen) Logistics costs Logistics Expenses Current Net sales Percentage of net Amount Value of overall Percentage of net Amount returns sales s sales e t 42,000 3.8% 1,600 4,000 7.0% 280 a m i Reduction Effects of Approx. ¥380 million Reduction Effects of Approx. ¥140 million t s Logistics costs Logistics Expenses E Post- Net sales Percentage of net Amount Value of overall Percentage of net Amount improvement sales returns sales 42,000 2.9% 1,220 4,000 3.5% 140 Wint to be profitable by the end of the next term 7 Overview of Each Business in First Half of FY2009 Visual and Music Business (3) Visual and Music market Video software sales by product type (million yen) Production costs by product type (million yen) 400,000 600,000 350,000 500,000 300,000 400,000 250,000 200,000 300,000 150,000 200,000 100,000 100,000 50,000 0 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Video cassette Laserdisc CD, etc. DVD/Vdeo Blu-ray Other Disc Cassette Audi/Video * Source: Information from the Japan Video * Source: Information from the Recording Software Association Industry Association of Japan Net sales in FY2008 Net sales in FY2008 ranked 3rd (ended Sep. 30, 2009) in the industry, at ¥36.5 billion ranked 2nd in the industry, Net Sales ¥78.4 billion at ¥41.9 billion Happinet will aim for the top market share this term 8 Overview of Each Business in First Half of FY2009 Visual and Music Business (4) Featured titles © Bird Studio /Shueisha,Toei Animation (C)2009 HIROSHI TAKAHASHI (C) “April Bride”Project © 1985 USA for Africa, 1985 MTV Networks /CROWS2 FILM PARTNERS My Sister's Keeper TENSHI NO KOI © MMIX New Line Productions Inc. All Rights Reserved. 9 © 2009 “MY RAINY DAYS” Film Partner Video GameBusiness(1) Half ofFY2009 Overview ofEachBusinessinFirst Net sales (million yen) Video gamebusiness 10,000 20,000 30,000 0 Net salesandoperatingprofit Interim period period Interim 20,239 488 of FY07 Net sales 23,671 of FY08 of 1st half 646 Operating profit 19,395 1st half of FY09 of 420 0 100 200 300 400 500 600 700 800 900 1,000 10 Operating profit (million yen) led toadifficult situation. the absenceof hitproducts was performing well;and when themarket asawhole of theprevious fiscalyear lower thanthesameperiod Results weresubstantially Review ofthe2ndquarter Overview of Each Business in First Half of FY2009 Video Game Business (2) Sales by platform type *PlayStation3・・・Launched on November 11, 2006 250 Wii ・・・Launched on December 2, 2006 236 14 202 17 193 200 6 29 50 19 6 PlayStation 3 144 ) 150 30 29 PlayStation 2 n o 26 i l l PlayStation Portable i 33 21 m 29 Wii 0 0 45 1 100 21 Nintendo DS ( 49 Other 63 50 76 82 67 43 13 0 Interim period Interim period 1st half 1st half of FY2006 of FY2007 of FY2008 of FY2009 Sales and income have been standardized by handling products for all platforms 11 Overview of Each Business in First Half of FY2009 Video Game Business (3) Domestic video game market 8,000 6,846 7,000 ) n 6,034 5,858 e 6,000 y n o i l l i 4,706 5,000 4,400 m 0 4,000 0 1 ( 3,000 2,000 1,000 0 2004 2005 2006 2007 2008 Nintendo DS, PSP Xbox360 launched Nintendo DS Lite、 PSP-2000 Nintendo Dsi launched PlayStation3, Wii Xbox 360 Elite PSP-3000 launched launched launched Popular software: Popular software: •Animal Crossing: Popular software: Popular software: Popular software: •Dragon Quest VIII Wild World New Super Mario •Monster Hunter Journey of the Cursed Wii Sports •Nou wo Kitaeru King Bros. •Hajimete no Wii Pack Freedom Unite •Dragon Quest V: Hand Otona no DS Training •Motto Nou wo Kitaeru •Monster Hunter • Pokémon Platinum of the Heavenly Bride •Big Brain Academy Otona no DS Training Freedom •Wii Fit •Pokémon Emerald etc.. •Dynasty Warriors •Pokémon Diamond •Mario Party DS •Mario Kart Wii •World Soccer Winning •Kingdom Hearts II •Final Fantasy XII •New Super Mario •Super Smash Bros. Eleven 8 ・World Soccer Bros. Brawl Winning Eleven 9 12 Source: “The Annual Video Game Industry Report” issued by Media Create Co., Ltd. Overview of Each Business in First Half of FY2009 Video Game Business (4) Exclusive distribution products No. of Titles Featured titles 25 ToHeart2 PORTABLE ) 20 ToHeart2: s e Popular game for the l t i PlayStation 2 featuring T f 15 beautiful young women o . was launched, with o N shipments exceeded ( 10 150,000 copies. Game uses revamped PSP® software that incorporates 5 many new elements and beautiful graphics. 0 2004,2009 AQUAPLUS (C) FY05 FY06 FY07 FY08 FY09 *Target figures for fiscal 2009 *Target figures for fiscal 2009 Higurashi no Manufa 1 3 4 6 8 cturers company companies companies companies companies Nakukoro ni Kizuna Titles 2 6 15 20 22 Vol. 3: Rasen This super-popular third installment in the Nintendo DS series created an impact by 34 titles scheduled for release in FY 2010! combining a variety of media, including comics, Ryukishi07 07th Expansion/ TV animation, novels, and /Frontier Works Alchemist (C) live-action film. 13 Amusement Business(1) Half ofFY2009 Overview ofEachBusinessinFirst Amusement business Amusement Net sales (million yen) 10,000 2,000 4,000 6,000 8,000 Net salesandoperatingprofit 0 Interm period Interm period of FY2007 3,058 21 Net Sales of FY2008 1st half half 1st 9,341 ‐ 28 Operating Profit of FY2009 of 1st half half 1st 8,565 462 -200 0 200 400 600 800 14 Operating profit (million yen) robust performance. businesses, leading tomore from thestructural reformof In addition,benefits emerged contributed toprofit. Ganbaride soldwelland Bandai’s KamenRiderBattle Kids cardgameunitssuchas Review ofthe2ndquarter Overview of Each Business in First Half of FY2009 Amusement Business (2) Structural reforms in the first half to enhance profit (1) Optimal locations ● Shift to partner companies (2) Switch to more popular machines ● Higher sales per store As of End of March 2009 As of End of September 2009 Approx. ¥100,000 Approx.