for fy ended september 30, 2014 april 1, 2014 to...
TRANSCRIPT
TOEI ANIMATION 1
October 31, 2014 TOEI ANIMATION CO.,LTD For FY Ended September 30, 2014 (April 1, 2014 to September 30, 2014)
© Daisuke Ashihara, Shueisha, TV Asahi, 2014 HappinessCharge Pretty Cure the Movie Production Committee, Toei Animation
HappinessCharge Pretty Cure! the Movie: The Ballerina of the Land of Dolls
To be released on October 11, 2014
WORLD TRIGGER Sunday at 6:30am on TV Asahi Network
TOEI ANIMATION 2
FY2015.3 Second Quarter Results -Consolidated
FY2011.3 2Q
FY2012.3 2Q
FY2013.3 2Q
FY2014.3 2Q
FY2015.3 2Q
% v.s. prior year
Net Sales 11,139 16,276 14,467 15,920 14,373 △9.7%
Cost of Sales 7,787 11,592 10,451 11,551 9,704 △16.0%
SG&A 1,899 1,989 2,321 2,546 2,757 8.3%
Operating Income 1,452 2,693 1,694 1,822 1,911 4.9%
Ordinary Income 1,636 2,884 1,911 2,059 2,106 2.3%
Net Income 994 1,749 1,216 1,286 1,360 5.7%
0
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2,000
3,000
4,000
0
5,000
10,000
15,000
20,000( Million yen )
Net Sales Income
The Overseas segment continued to be strong but did not compensate for the decline in the Domestic segment, resulting in a decrease in overall sales.
On the other hand, operating income, ordinary income, and net income all increased, reflecting an improvement in the cost rate.
TOEI ANIMATION 3
FY2015.3 2Q Results Segment Breakdown Consolidated
FY2014.3 2Q
FY2015.3 2Q
% v.s. prior year
FILM Net Sales 7,160 6,633 △7.4% Segment Income 395 735 86.1%
Licensing Net Sales 5,154 4,843 △6.0% Segment Income 2,053 2,012 △2.0%
Sales of Goods Net Sales 2,859 2,157 △24.5% Segment Income 48 31 △36.0%
Others Net Sales 882 828 △6.1% Segment Income 112 91 △18.0%
TOTAL Net Sales 15,920 14,373 △9.7% Operating Income 1,822 1,911 4.9%
*Numbers for each segment includes intra-company sales.
( Million yen )
TOEI ANIMATION 4
FY2015.3 2Q Results Segment Analysis ①(Film)
FY14.3 2Q
FY15.3 2Q
Net Sales 15,920 14,373
Operating Income 1,822 1,911
Film 7,160 6,633 Movies 1,343 119 TVs 1,629 2,167 DVDs 1,041 561 Overseas 1,572 2,208 Others 1,574 1,577
Licensing 5,154 4,843 Japan 4,415 3,641 Overseas 739 1,202
Sales of Goods 2,859 2,157
Others 882 828
( Million Yen )
Film( down 7.4% year on year ) • In Movies, revenues fell sharply with the absence of production revenues from Captain Harlock and Toriko, the Movie and a hit equivalent to DRAGON BALL Z - Battle of Gods in the same period of the preceding fiscal year.
• In TV Anime, revenues rose sharply due to an increase in the number of new titles aired or distributed (from five to eight).
• In DVDs, revenues declined significantly given the absence of Blu-ray or DVD that is equivalent to the ONE PIECE FILM Z and DRAGON BALL series in the same period of the preceding fiscal year.
• In the Overseas segment, revenues jumped markedly, reflecting large online distribution licensing deals of multiple titles in China and strong sales of online distribution rights and video rights in North America .
• In the Others segment, revenues remained almost flat despite the weak performance of the social game featuring SAINT SEIYA, reflecting the release of new browser games featuring SAINT SEIYA and Robot Girls Z. * The figures for each segment include intra-company sales.
TOEI ANIMATION 5
FY2015.3 2Q Results Segment Analysis ② (Licensing/Sales of Goods/Others)
FY14.3 2Q
FY15.3 2Q
Net Sales 15,920 14,373
Operating Income 1,822 1,911
Film 7,160 6,633 Movies 1,343 119 TVs 1,629 2,167 DVDs 1,041 561 Overseas 1,572 2,208 Others 1,574 1,577
Licensing 5,154 4,843 Japan 4,415 3,641 Overseas 739 1,202
Sales of Goods 2,859 2,157
Others 882 828
( Million Yen )
* The figures for each segment include intra-company sales.
Licensing ( down 6.0% year on year ) • In domestic licensing, revenues fell sharply, partly reflecting the absence of deals equivalent to the large licensing deals for game machines in the same period of the preceding fiscal year and the weak overall performance of ONE PIECE, which offset the strength of app games.
• In overseas licensing, revenues jumped due in part to licensing deals for multiple app games for China featuring titles such as ONE PIECE and the DRAGON BALL series.
Sales of Goods( down 24.5% year on year ) • Revenues dived due to the sluggish performance of products related to ONE PIECE and in reaction to the strong performance of tie-up products for the movie DRAGONBALL Z - Battle of Gods and sales promotion products in the same period of the previous fiscal year.
Others ( down 6.1% year on year ) • Revenues declined partly reflecting the weak performance of ONE PIECE events and the character shows of HappinessCharge Pretty Cure!
TOEI ANIMATION 6
FY2015.3 Second Quarter Results Review
FY14.3 2Q
FY15.3 2Q +ー % v.s.
prior year
Net Sales 15,920 14,373 △1,546 △9.7%
Costs of Sales 11,551 9,704 △1,847 △16.0%
Gross Profit 4,368 4,668 300 6.9%
SG & A 2,546 2,757 210 8.3%
Operating Income 1,822 1,911 89 4.9%
Non-Operating Income 250 215 △34 △13.8%
Non-Operating Expense 12 20 8 65.2%
Ordinary Income 2,059 2,106 47 2.3%
Extraordinary Gain and Loss - - - -
Net Income before tax 2,059 2,106 47 2.3%
Income Taxes 884 777 △106 △12.1% Income Taxes Adjustment △111 △30 80 -
Minority Interest - - - -
Net Income 1,286 1,360 73 5.7%
Net Sales Businesses with significant declines in revenues ① Movies[△1,223] ⇒ ② Licensing Japan [△773] ⇒ ③Sales of Goods[△701]
Businesses with sharp increases in revenues ①Film Oveaseas[635] ⇒ ②TVs[537] ⇒ ③Licensing Overseas[462]
( Million Yen )
Cost of Sales / Gross Profit The cost rate was improved to 67.5% (from 72.6% in 2Q of the previous fiscal year) 1) In the 2Q of the previous fiscal year, costs related to
Captain Harlock were high.
2) In the quarter under review, sales declined in Movies and Sales of Goods, whose cost rates are high, while the rates of overseas sales, whose cost rate is low, increased to 23.9% (from 14.4% in the previous 2Q).
SG&A SG&A expenses increased by 210 (up 8.3%) from the
2Q of the previous year. 1) Depreciation and amortization increased by 227 (from
99 in the 2Q of the previous fiscal year to 327 in the quarter under review) Advance amortization of facilities in response to the change in the useful life resulting from the rebuilding of Oizumi Studio
2) Rent increased by 81 (from 93 in the previous 2Q to 175 in the quarter under review).
Income Taxes Income taxes decreased by 106 (down 12.1%) from 2Q
of the previous fiscal year. The effective tax rate declined to 35.64% (from 38.01% in the previous 2Q) due in part to the abolishment of the Special Corporate Tax for Reconstruction.
TOEI ANIMATION 7
Progress toward Earnings Estimates for FY2015.3
FY14.3
2Q FY15.3
2Q FY15.3
Estimates FY15.3
Progress
Net Sales 15,920 14,373 26,000 55.3% Operating Income 1,822 1,911 2,400 79.7% Ordinary Income 2,059 2,106 2,700 78.0% Net Income 1,286 1,360 1,700 80.0% Film 7,160 6,633 11,900 55.7% Movies 1,343 119 *** TVs 1,629 2,167 *** DVDs 1,041 561 1,700 33.0% Overseas 1,572 2,208 3,200 69.0% Others 1,574 1,577 *** Licensing 5,154 4,843 7,900 61.3% Japan 4,415 3,641 6,400 56.9% Overseas 739 1,202 1,500 80.1% Sales of Goods 2,859 2,157 5,000 43.2% Others 882 828 1,200 69.1%
0
10,000
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FY14.3 Sales Result
FY15.3 Sales Estimates
Sales Estimates for FY15.3 vs. Sales Results for FY14.3 ( Mil. Yen )
FY14.3 2Q
Result
FY15.3 2Q
Result
* The estimated values are based on estimations made at the beginning of the fiscal year (disclosed on May 12, 2014).
* The figures for each segment include intra-company sales
( Million Yen )
TOEI ANIMATION 8
FY2015.3 Revised Estimates-Consolidated
Initial
estimates (full year)
Revised estimates (full year)
+- %
Net Sales 26,000 27,000 1,000 3.8% Operating Income 2,400 3,200 800 33.3% Ordinary Income 2,700 3,500 800 29.6% Net Income 1,700 2,300 600 35.3%
(Million Yen)
Upward revision of earnings estimates (consolidated) *Disclosed on October 28, 2014
05,000
10,00015,00020,00025,00030,00035,000
FY11.3 FY12.3 FY13.3 FY14.3 FY15.3 (予想)
Sales Trend
Comparison between first-half (2Q) results and initial estimates
Comparison between initial estimates and revised estimates for the second half
Result (2Q)
Estimates (2Q) +- %
Initial Estimates (2nd half)
Revised Estimates (2nd half) +- %
Net Sales 14,373 13,800 573 4.2% 12,200 12,700 500 4.1% Operating Income 1,911 1,200 711 59.3% 1,200 1,300 100 8.3% Ordinary Income 2,106 1,400 706 50.5% 1,300 1,400 100 7.7% Net Income 1,360 800 560 70.0% 900 950 50 5.6%
*Reference
Estimate
TOEI ANIMATION 9
Trends in Domestic Licensing for Major Titles
Revenues for the three major titles of domestic licensing (ONE PIECE, Pretty Cure, and DRAGON BALL) remained on a gradual downward trend.
Trends in Domestic Licensing Revenues for the Three Major Titles
Net Sales
Net Sales
Trends in Domestic Licensing Revenues for ONE PIECE
DRAGON BALL Pretty Cure ONE PIECE
ONE PIECE (Social games / app games)
ONE PIECE (Household games, toys, and others)
FY13.3 FY14.3 FY15.3
FY13.3 FY15.3 FY14.3
TOEI ANIMATION 10
Trends in Domestic Social Games and App Games
Sales of SAINT SEIYA Galaxy Card Battle remained weak but net sales remained unchanged from 1Q because SAINT SEIYA – Big Bang Cosmo and Robot Girls Z Online, which are new titles, contributed to the revenue.
Trends in Net Sales of Domestic Social Games and App Games Featuring Major Titles
Robot Girls Z Online SAINT SEIYA - Big Bang Cosmo (Yahoo! Mobage) SAINT SEIYA - Galaxy Card Battle (Mobage) SLAM DUNK (Mobage)
Net Sales
FY13.3 FY14.3 FY15.3
TOEI ANIMATION 11
Trends in the Overseas Film Segment
Net sales have been increasing steadily, despite fluctuations attributable in part to the lump-sum posting of revenues from a large licensing deal.
In the quarter under review in particular, business in Asia remained strong partly reflecting the aggressive expansion to the Chinese market.
Trends in Net Sales of Overseas Film Segment
Net Sales
Central and South America Asia Europe North America
FY13.3 FY14.3 FY15.3
TOEI ANIMATION 12
Future Initiatives for the second half of the FY2015. 3 Expansion of businesses targeting hardcore customers
© Nitroplus, EFP Society, Naoko Takeuchi, PNP, Kodansha, Hongo Akiyoshi, Bird Studio, Shueisha, 2015 DragonBallZ Production Committee, Toei Animation
Focusing efforts on household games and app games
Beginning movie distribution in earnest
Titles targeting hardcore customers in their 20s to 30s ・Expelled from Paradise
Titles targeting customers who viewed them when they were broadcast ・Sailormoon Crystal ・Digimon Adventure
Household games Planning to release multiple major titles with successful records ONE PIECE Super Grand Battle! X ONE PIECE: Pirate Warriors 3 DRAGON BALL XENOVERSE
App games for Japan Releasing new titles to follow ONE PIECE Treasure Cruise, which has seen strong sales ONE PIECE DANCE BATTLE DRAGON BALL Z DOKKAN BATTLE
App games for Overseas Full-scale operation of major titles for China ・ ONE PIECE ・SAINT SEIYA ・SLAM DUNK etc We will continue to take measures for expanding this business, including the release of new titles.
SAINT SEIYA LEGEND of SANCTUARY ■ 2nd ranked debut in Brazil ■ To be released in France, Italy, and Spain
Dragon Ball Z Battle of Gods ■ To be released in 28 countries ■ 6th ranked debut in North America Making it a foothold in North America
Dragon Ball Z (2015 film) ■ To be released in Golden Week of 2015 ■ The sequel of the previous title, “Battle of Gods” ■ We will aim for better performance than the previous title worldwide. ■ We will start providing goods, games, campaigns, etc. in earnest ahead of the release of the movie
TOEI ANIMATION 13
Future Initiatives for the second half of the FY2015. 3 Domestic
Schedule(Domestic) Topics
Starting to broadcast WORLD TRIGGER [Oct. 5]
Expelled from Paradise to be shown in theaters along with the release of a Blu-ray, which will be available only in theaters [Nov. 15]
Release of Blu-ray and DVD of Expelled from Paradise [Dec. 10]
Release of the movie Pretty Cure All Stars: Spring Carnival♪ [Spring of 2015]
Film Licensing
Sales of Goods Others
ONE PIECE Super Grand Battle! X (3DS) planned to be released [Nov. 13]
ONE PIECE: Pirate Warriors 3 (PS4/PS3/PSVITA) to be released [2015]
Distribution of app game DRAGON BALL DOKKAN BATTLE (iOS/Android) [in the coming winter]
DRAGON BALL XENOVERSE (PS4/PS3/Xbox ONE/ Xbox360) to be released [Feb. 5]
Operation of Dragon Ball Heroes Jaakuryu Mission 7 to be started [Nov. 13]
Tokyo ONE PIECE Tower to be opened [Spring of 2015]
Release of Digimon The Movies Blu-ray 1999-2006 as a Digimon 15th Anniversary Project [Jan. 9]
Release of Digimon Adventure: 15th Anniversary Blu-ray Box [Mar. 3]
New anime as the sequel of Digimon Adventure to be released [Around the spring of 2015]
Release of HappinessCharge Pretty Cure! the Movie : The Ballerina of the Land of Dolls [Oct. 11]
FY15.3 3Q
FY15.3 4Q
Expelled from Paradise An original movie developed jointly by
TOEI ANIMATION and Nitroplus Nov. 15: It will be shown in theaters
along with the release of a Blu-ray, which will be available only in theaters.
December 10: Release of Blu-ray and DVD
Household games to be released consecutively
ONE PIECE Super Grand Battle! X *Cumulative total of the series: 2.5 million units
ONE PIECE Pirate Warriors 3 *Cumulative sales of Pirate Warriors 2: 550,000 units
DRAGON BALL XENOVERSE
App Games
ONE PIECE DANCE BATTLE DRAGON BALL Z
DOKKAN BATTLE
Digimon 15th Anniversary Project
It was decided that a new series of
Digimon Adventure will be produced with an aim to release it around spring of 2015.
Blu-ray BOX of the movie and Digimon Adventure Blu-ray BOX will be released.
© Nitroplus, EFP Society, Eiichiro Oda, Shueisha, Fuji TV, Bird Studio, BANDAI NAMCO Games Inc., Akiyoshi Hongo, Toei Animation
Distribution of app game ONE PIECE DANCE BATTLE to be started (iOS/Android) [within 2014]
Dragon Ball Z (2015 film) to be released [Golden Week of 2015]
TOEI ANIMATION 14
Future Initiatives for the second half of the FY2015. 3 Overseas
Schedule(Overseas) Topics Film Licensing Sales of Goods Other
FY15.3 3Q
FY15.3 4Q
Release of SAINT SEIYA LEGEND of SANCTUARY in France [Dec. 25]
Release of SAINT SEIYA LEGEND of SANCTUARY in Italy [Jan. 22] Release of SAINT SEIYA LEGEND of SANCTUARY in Spain [Feb. 1]
North America: Release of Blu-ray and DVD of DRAGON BALL Z - Battle of Gods [Oct. 7]
America: Starting simultaneous distribution of WORLD TRIGGER [Oct.]
Launch of SLAM DUNK app game for China (iOS/Android) [Within the current fiscal year]
Launch of SAINT SEIYA app game for China (iOS/Android) [Within the current fiscal year]
Europe: Starting simultaneous distribution of WORLD TRIGGER [Oct.] China: Starting simultaneous distribution of WORLD TRIGGER [Oct.]
North America: Broadcast of DRAGON BALL KAI nationwide in the US via Cartoon Network [Nov. 8]
Mexico: Start of broadcast of DORAGON BALL Series TELEVISA terrestrial TV station [Oct . 6]
France: Simulcast of DRAGONBALL Z KAI - The Final Chapters – started [Oct.]
Europe & the US: Release of the game Digimon ALL-STAR RUMBLE (PS3/Xbox360) [Nov.]
Europe, the US, and Asia: Release of the game DRAGONBALL XENOVERSE (PS4/PS3/Xbox ONE/Xbox360) [Early 2015]
SAINT SEIYA LEGEND of SANCTUARY
To be released in Europe (France, Italy, and Spain)
To be released at 150 theaters in France
Starting simultaneous distribution of WORLD TRIGGER
Simultaneous distribution of WORLD TRIGGER, which began in Japan on Oct. 5, will start in the Americas, Europe, and China.
Starting to provide app games for overseas countries (mainly China)
Launch of app games for China featuring ONE
PIECE, Slam Dunk, and SAINT SEIYA Localization of the app game Digimon Crusader for
Europe & the US and Asia App game featuring Robot Girls Z is planned to be
provided in China and other Asian countries.
Game DRAGONBALL XENOVERSE
The game DRAGONBALL XENOVERSE, which will be released in Japan in February 2015, will also be released in Europe, the US, and Asia around the same time.
Launch of ONE PIECE app game for China (iOS/Android) [Within the current fiscal year]
©2014 Masami Kurumada, SAINT SEIYA LEGEND of SANCTUARY Production Committee, Daisuke Ashihara, Shueisha, TV Asahi, Toei Animation ©Bird Studio, Shueisha, BANDAI NAMCO Games Inc., Toei Animation
Asia: Localization of app game Digimon Crusader (iOS/Android) [Within the current fiscal year]
Europe & the US: Localization of app game Digimon Crusader (iOS/Android) [Within the current fiscal year] App game Robot Girls Z for China and other Asian countries (iOS/Android) [2015]
TOEI ANIMATION 15
Initiatives Aimed for Medium and Long-Term Growth
Planning for movies to be released overseas ahead of Japan is being considered.
Multiple large-scale CG movies are being planned. A live action movie of Gaiking for Hollywood is
being planned. Multiple other planning/production projects are in
progress.
Promoting projects for planning/ producing new film titles
An intradepartmental project is under way
A project for planning future growth strategies has been launched.
Five strategy themes have been selected based on “what we want to be” in the future. Members from multiple departments have been selected for each theme and they are working on the themes at present.
Further promotion of borderless strategies in Asia
To expand into the Asian market, which is growing remarkably, we will further promote the Borderless Strategy, or horizontal expansion into Asia with business models that were successful in Japan.
The ONE PIECE MUGIWARA STORE, ONE PIECE Exhibition, and Memorial Log in Taiwan and South Korea were as successful as in Japan.
As of July 1, the Licensing Department was newly established by
integrating the Character Licensing Department and Global Licensing Business Department Establishing a flexible system which permits projects for global expansion to be advanced at the same time.
Promoting change of seating (personnel transfers) to lay the foundation for interdepartmental cooperation.
Enhancing human resources of overseas subsidiaries and transferring authorities to them to establish a system for responding flexibly and promptly to local business situations and needs.
Strengthening the system for overseas businesses
*The photos show a session of the first project teams for presenting their achievements. © Eiichiro Oda, Shueisha, Fuji TV, Toei Animation ©TOEI ANIMATION
TOEI ANIMATION 16
20 20 30 30 30 30 30 30 30
30
30 30 15
0
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50
60
70
About Dividend Plan for year-end Dividend
Special Dividend
Ordinary Dividend
(Yen)
FY 2014.3 Ordinary Dividend ¥30+Special Dividend ¥15 (per share)
FY 2015.3
Based on sustained and stable dividends, we decide the amount of dividend each
year with comprehensive consideration of the financial results and
securing internal funds for aggressive business development in the
medium- to long-term.
Dividend Policy
Ordinary Dividend ¥30 (per share)
Plan Result Plan Result Plan Result Plan Result Plan Fiscal Year FY11.3 FY12.3 FY13.3 FY14.3 FY15.
3 Dividen per share 50 yen 60 yen 60 yen 45 yen 30 yen
TOEI ANIMATION 17
Reference (1) Lineup of Titles Being Broadcast / Distributed
SUN at 9:00am on Fuji TV et al. ONE PIECE
SUN at 8:30am on ABC/TV Asahi Network
HappinessCharge Pretty Cure!
SUN at 9:30am on Fuji TV et al.
Dragon Ball Kai
SUN at 6:30am on TV Asahi network World Trigger
WED at 6:30pm on TV Tokyo network
Disk Wars: Avengers
TUE at 6:30pm on TV Tokyo network THUat 5:30pm on BS Japan
MAJIN BONE
©ABC, BANDAI, Eiichiro Oda, Shueisha, Fuji TV, TV Tokyo, Daisuke Ashihara, TV Asahi, Bird Studio, Naoko Takeuchi, PNP, Toei Animation © 2014 MARVEL
1st and 3rd SAT of each month 7:00pm on Online Dist. thru nico video and others
Sailormoon Crystal
TOEI ANIMATION 18
Reference (2) Movies Scheduled for Release in FY2015.3
©Nitroplus, EFP Society, Toei Animation
Expelled from Paradise To be released on November 15, 2014
Pretty Cure All Stars Spring Carnival♪
To be released on spring 2015
NO IMAGE