TOEI ANIMATION CO.,LTD For FY Ended March 31, 2015 (April 1, 2014 to March 31, 2015)

Transcription

1 TOEI ANIMATION CO.,LTD For FY Ended March 31, 2015 (April 1, 2014 to March 31, 2015) May 15, 2015 TOEI ANIMATION Masami Kurumada, Saint Seiya Soul of Gold Production Committee, Bird Studio, Shueisha, 2015 Dragon Ball Z Production Committee 1

2 FY Results - Consolidated 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 due to the improved cost rate. Net Sales ( Million yen ) Income 35,000 7,000 30,000 6,000 25,000 5,000 20,000 4,000 15,000 3,000 10,000 2,000 5,000 1, / / / /03 Mar-15 % v.s. prior year 0 Net Sales 26,622 33,011 33,644 31,027 30, % Cost of Sales 18,611 23,786 24,114 22,270 20, % SG & A 3,827 4,262 4,759 5,155 5, % Operating Income 4,184 4,962 4,770 3,602 3, % Ordinary Income 4,570 5,309 5,259 3,940 3, % Net Income 2,722 3,154 3,290 2,333 2, % TOEI ANIMATION 2

3 FY Results Segment Breakdown Consolidated ( Million yen ) FILM Licensing Sales of Goods Others TOTAL FY FY % v.s. prior year Net Sales 13,919 14, % Segment Income 520 1, % Net Sales 10,494 10, % Segment Income 4,299 4, % Net Sales 5,451 4, % Segment Income % Net Sales 1,415 1, % Segment Income % Net Sales 31,027 30, % Operating Income 3,602 3, % *Numbers for each segment includes intra-company sales. TOEI ANIMATION 3

4 FY Results Segment Analysis 1(Film) ( Million Yen ) 14.3 Results 15.3 Results Net Sales 31,027 30,313 Operating Income 3,602 3,996 Film 13,919 14,155 Movies 2,741 1,159 TVs 3,104 4,046 DVDs 1,978 1,847 Overseas 3,208 4,240 Others 2,886 2,861 Licensing 10,494 10,250 Japan 8,900 8,029 Overseas 1,594 2,220 Sales of Goods 5,451 4,628 Others 1,415 1,437 Film( 1.7% year on year) In Movies, revenues fell sharply with the absence of production revenues from Captain Harlock and Buddha2 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 six to eight). In DVDs, revenue fell because revenue from video packages remained weak with the absence of Blu-ray or DVD releases like the ONE PIECE FILM Z and DRAGON BALL series titles from the preceding fiscal year. In the Overseas segment, revenue jumped considerably, reflecting a significant increase in the online distribution licensing deals of multiple titles in China, and the strong sales of online distribution licensing in North America and broadcasting rights in Asia of DRAGON BALL series and ONE PIECE. In the Others segment, revenue remained flat because in addition to the social game featuring SAINT SEIYA, browser games of SAINT SEIYA and Robot Girls Z were newly launched. TOEI ANIMATION 4

5 ( Million Yen ) FY Results Segment Analysis 2 (Licensing/Sales of Goods/Others) 14.3 Results 15.3 Results Net Sales 31,027 30,313 Operating Income 3,602 3,996 Film 13,919 14,155 Movies 2,741 1,159 TVs 3,104 4,046 DVDs 1,978 1,847 Overseas 3,208 4,240 Others 2,886 2,861 Licensing 10,494 10,250 Japan 8,900 8,029 Overseas 1,594 2,220 Sales of Goods 5,451 4,628 Others 1,415 1,437 Licensing ( Sales of Goods ( 2.3% year on year) In domestic licensing, revenues fell, 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 DRAGON BALL series. 15.1% year on year) Revenue dropped sharply because of the decline in the sales of products for events and sales promotion products of ONE PIECE, although the sales of ONE PIECE and Pretty Cure in stores were strong. Others ( 1.6% year on year) Revenue increased slightly, partly reflecting the development of ONE PIECE events, Happiness- Charge Pretty Cure! character shows, and the favorable operation of the ONE PIECE Exhibition (Taiwan). TOEI ANIMATION 5

6 ( Million Yen ) FY14.3 Results FY Results Review FY15.3 Results +ー % v.s. prior year Net Sales 31,027 30, % Costs of Sales 22,270 20,741 1, % Gross Profit 8,757 9, % SG & A 5,155 5, % Operating Income 3,602 3, % Non-Operating Income % Non-Operating Expense ,497.6% Ordinary Income 3, % Extraordinary Gain and Loss Net Income before tax 3,940 3, % Income Taxes 1,623 1, % Income Taxes Adjustment % Minority Interest Net Income 2, % Net Sales Businesses with significant declines in revenues 1 Movies[ 1,581] 2Licensing Japan [ 870] 3 Sales of Goods[ 822] Businesses with sharp increases in revenues 1Film Oveaseas [1,031] 2TVs[942] 3 Licensing Overseas [626] Cost of Sales / Gross Profit The cost rate was improved to 68.4% (from 71.8% in the previous FY) 1) In the the previous FY, costs related to Captain Harlock were high 2) 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 22% (from 15% in the previous FY). SG&A SG&A expenses increased by 420 (up 8.2%) from the previous FY. 1) Depreciation and amortization increased by 281 (from 237 in the previous FY to 518 in the current) Advance amortization of facilities in response to the change in the useful life resulting from the rebuilding of Oizumi Studio. 2) Rent increased by 213 (from 175 in the previous FY to 388 in the current FY). Non-operating expenses Increased by 281 from the previous fiscal year (Previous FY: 18) 1 Equity in losses of affiliates [103] 2 Exchange loss [96] 3 Cost for moving an office [61] TOEI ANIMATION 6

7 Net Sales Net Sales 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 DRAGON BALL Pretty Cure ONE PIECE FY09.3 FY10.3 FY11.3 FY12.3 FY13.3 FY14.3 FY15.3 Trends in Domestic Licensing Revenues for ONE PIECE ONE PIECE (Social games / app games / Household games) ONE PIECE (toys, apparels and other merchandises) FY09.3 FY10.3 FY11.3 FY12.3 FY13.3 FY14.3 FY15.3 TOEI ANIMATION 7

8 Net Sales Trends in Domestic Social Games and App Games Sales of SAINT SEIYA Galaxy Card Battle remained weak Net sales from the entire business were in a downward trend, although Saint Seiya - Big Bang Cosmo and Robot Girls Z ONLINE contributed to 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) FY13.3 FY14.3 FY15.3 TOEI ANIMATION 8

9 Net Sales Net Sales Trends in the Overseas Segment Net sales have been increasing steadily, despite fluctuations attributable in part to the lump-sum posting of revenues from a large licensing deal. Business in Asia remained strong, partly reflecting aggressive expansion into China. On the other hand, there is a concern about changes in international affairs and the regulation of content in the expanding market in China. Trends in Net Sales of Overseas Segment Breakdown of Net Sales in Asia Latin America Asia Europe Others in Asia China (licensing) China (film) North America FY 13.3 FY 14.3 FY 15.3 FY 13.3 FY 14.3 FY 15.3 TOEI ANIMATION 9

10 Earnings Estimates for FY Consolidated FY Results FY Estimates % increase/ Decrease Net Sales 30,313 27, % SG & A 5,576 5, % Operating Income 3,996 3, % Ordinary Income 3,978 3, % Net Income 2,437 1, % (Breakdown of major SG & A expenses Item Unit: Million yen) Results in FY Forecast for FY Increase /Decrease Development Depreciation and amortization TOEI ANIMATION 10

11 Earnings Estimates for FY2016.3: Segment Breakdown ( Million Yen ) FY15.3 Results FY16.3 Estimates Net Sales 30,313 27,500 Operating Incom 3,996 3,000 Film 14,155 12,500 Movies 1,159 1,000 TVs 4,046 2,400 DVDs 1,847 1,100 Overseas 4,240 5,900 Others 2,861 2,100 Licensing 10,250 8,700 Japan 8,029 7,000 Overseas 2,220 1,700 Sales of Goods 4,628 4,900 Others 1,437 1,400 Film( 11.7% year on year) The number of Movies released/produced will decline. The number of TV anime shows produced will decline substantially due to a decrease in the lineup of products. In DVDs, the orders received will decline in video production for game machines. In Overseas segment, the sales of online distribution licensing deals for multiple titles will increase in China. Licensing( 15.1% year on year) Expect a decrease in large deals for library titles for game machines and weak sales of ONE PIECE and Pretty Cure. Net sales will decline in reaction to the concentration of MG for games in China in the preceding fiscal year. Sales of Goods( 5.9% year on year) Revenues are expected to increase, partly reflecting the increase in the number of ONE PIECE MUGIWARA Store and Pretty Cure Store establishments. Others( 2.6% year on year) ONE PIECE Thousand Sunny CRUISE will start at Laguna Ten Bosch in July. TOEI ANIMATION 11

12 Initiatives for FY (1) Multifaceted development of DRAGON BALL series New Film Titles - Movie Dragonball Z Resurrection F is a blockbuster film currently being released with high expectations overseas. - New TV series - Dragon Ball Super Scheduled to begin airing in July 2015 Aim to increase revenue by developing multiple businesses centered on movies and TV anime shows Secondary Use - App Game DRAGON BALL Z DOKKAN BATTLE More than 15 million downloads for ios and Android - Tie-up campaign - Promotion of licensing (2) Business in China Expect growth of revenue from online distribution in Asia centered on China, where the market is growing rapidly Online Distribution Business - Online distribution of multiple titles is running well. - There are concerns about the regulation of content in China. App Games - New orders will decline from the preceding fiscal year. - ONE PIECE and SAINT SEIYA enjoy strong sales in China. - New titles will continue to be introduced. (3) Reboot of Library Titles Promote reboot of library titles by using new media that goes beyond the existing TV broadcasting Sailormoon Crystal - Distributed worldwide via Nicovideo, etc. - Aired via terrestrial broadcast starting in April 1 SAINT SEIYA -soul of gold- - Distributed online in 222 countries and regions via the Bandai Channel, etc. - Promotion of licensing Digimon series -New movie Digimon Adventure tri. to be released in theaters - Sales of Blu-ray box sets of old titles TOEI ANIMATION Eiichiro Oda, Shueisha, Fuji TV, IT planning, Bird Studio, Shueisha, 2015 Dragon Ball Z Production Committee, Toei Animation 12

13 Future Initiatives <Domestic> Schedule(Domestic) FY15.3 4Q Release of Digimon The Movies Blu-ray as a Digimon 15 th Anniversary Project [Jan. 9] Operation of Dragon Ball Heroes Jaakuryu Mission 8 [Jan.15] DRAGON BALL XENOVERSE (PS4/PS3/Xbox ONE/Xbox360) [Feb.5] Tokyo ONE PIECE Tower Grand Opening [Mar.3] Film Release of the movie Pretty Cure All Stars: Spring Carnival [Mar.14] Opening of Pretty Cure Pretty Store in Fukuoka [Mar.19] ONE PIECE: Pirate Warriors 3 (PS4/PS3/PSVITA)[Mar.26] Licensing Sales of Goods Others Distribution of app game DRAGON BALL DOKKAN BATTLE (Android/iOS) [Jan/Feb] Release of Digimon Adventure: 15th Anniversary Blu-ray Box [Mar. 3] Start terrestrial TV broadcasting Sailromoon Crystal [Apr.1] SAINT SEIYA soul of gold- started online distribution [Apr.11] Topics Development of Dragon Ball series Movie Dragon Ball Z Resurrection F 1st-week box office revenues No. 1 (as of May 8) in 2015 TV Dragon Ball Super Scheduled to begin airing on the Fuji Television Network in July 2015 The first all new and original story in 18 years App Game DRAGON BALL Z DOKKAN BATTLE More than 15 million downloads for ios and Android Development of Digimon series Blu-ray box set of the movie and the Digimon Adventure Blu-ray box set will be released. New movie Digimon Adventure tri. will be released in theaters on November 21, 2015 Goods, games, etc. to be provided FY16.3 1Q FY16.3 2Q onward Opening of ONE PIECE Mugiwara Store in Osaka [Apr.17] Release of the movie Dragon Ball Z Resurrection F [Apr.18] Opening of ONE PIECE Mugiwara Store in Nagoya [Apr.28] Opening of ONE PIECE Mugiwara Store in Fukuoka [May 22] Dragon Ball Z: Extreme Butoden (3DS) to be released [Jun.11] ONE PIECE: Real Escape Game 2nd to start (10 venues nationwide) [Jun.19-] New TV Series - Dragon Ball Super to start broadcasting [July] Digimon Adventure tri. to be released [Nov. 21] Online distribution of new animation Sailormoon Crystal Simultaneous worldwide distribution via Nicovideo, etc. After BD & DVD are released, aired via terrestrial broadcast on April 1. SAINT SEIYA-soul of gold- Distributed online in 222 countries and regions via the Bandai Channel, etc. Products centered on figures are planned to be provided in countries around the world. TOEI ANIMATION Bird Studio, Shueisha, Fuji TV, Akiyoshi Hongo, PNP, Naoko Takeuchi, Kodansha, Masami Kurumada, Saint Seiya Soul of Gold Production 13 Committee, Toei Animation

14 Schedule(Overseas) FY15.3 4Q FY16.3 1Q FY16.3 2Q onward Future Initiatives <Overseas> Film Licensing Sales of Goods Others Distribution of ONE PIECE app game for China (ios/android) [Jan. 2015] Release of SAINT SEIYA LEGEND of SANCTUARY in Italy [Jan.8] Release of the game DRAGONBALL XENOVERSE (PS4/PS3/Xbox ONE/Xbox360)[Feb.13(Europe Asia),Feb.17(N&S America)] Distribution of app game ONE PIECE: Treasure Cruise for Europe and N. America [Feb] Release of SAINT SEIYA LEGEND of SANCTUARY in France [Feb.25] Release of SAINT SEIYA LEGEND of SANCTUARY in Spain [Mar.6] Distribution of app game - Digimon Crusader for Europe, N.America and Asia (ios/android) [2015] Event: ONE PIECE: Memorial Log in Korea (3rd) [Apr.4 Aug.30] World Premiere of Dragon Ball Z Resurrection F in LA [Apr.11] Launch of online distribution: SAINT SEIYA soul of gold[apr.11] Event: ONE PIECE 3D exhibition in Hong Kong [Apr.27-] Release of Dragon Ball Z Resurrection F in Hong Kong, Taiwan, Thailand, Malaysia [May] Release of Dragon Ball Z Resurrection F in Latin American countries [July] Release of Dragon Ball Z Resurrection F in France [June] Release of app game - DRAGON BALL DOKKAN BATTLE for China [Summer 2015] Release of app game Robot Girls Z for China and other Asian territories (ios/android) [2015] Topics Movie Dragon Ball Z Resurrection F Scheduled to be released in 74 countries and regions worldwide (the previous movie was released in 28 countries). Digital Distribution Business Overseas (mainly in China) Online Distribution Business - Distribution of multiple titles will run well this fiscal year. - In China, the tightening of controls on titles that influence minors was announced (our titles were not targeted for control). App Games - New contracts for app games will decline from the preceding fiscal year. - Because ONE PIECE and SAINT SEIYA enjoy strong sales in China, additional revenue is expected. - DRAGON BALL Z DOKKAN BATTLE is planned to be provided in China and Digimon Crusader in China, North America, and Europe. - Robot Girls Z is planned to be provided in China and Asia. SAINT SEIYA-soul of gold- Distributed online in 222 countries and regions with subtitles in 13 languages. More than 5 million views worldwide after the online distribution began in April 11th (as of May 7). Overwhelming number of views overseas, such as in China and South America. TOEI ANIMATION Bird Studio, Shueisha, 2015 Dragon Ball Z Production Committee 14

15 Initiatives Aimed for Medium and Long-Term Growth Promoting projects for planning/ producing new film titles An original CG project following up on Expelled from Paradise is being considered. Original movie project file(n): project PQ is being planned. A large-scale CG movie is being planned. A live action movie of Gaiking for Hollywood is being planned. A number of other planning/production projects are also in progress. Strategic investment in planning/ production to accelerate growth Reconstruction of Oizumi Studio is scheduled to be completed in the summer of 2017 Production of pilot movies to create the seeds of hit titles that will support future growth Measures to support the cultivation of young creators and improve the production processes Development of new video technology (development of rendering technology, various development projects for CG TV series) Preparation of a system led by personnel working on site that supports the creation of business Reshuffle personnel to vitalize vertical and horizontal cooperation and help cultivate business producers Positive mid-career recruiting to diversify human resources Consider introducing incentive scheme The cross-department project that was set up in the preceding fiscal year will be continued in order to examine a growth strategy for the future. *Presentation of results by the 2nd project team TOEI ANIMATION Toei Animation 15

16 Plan for year-end Dividend FY About Dividend 45 per share (Ordinary Dividend 30 + Special Dividend 15) FY Ordinary Dividend Planned: 30 per share 70 (Yen) 60 Dividend Policy 50 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 Special Dividend Ordinary Dividend Plan Result Plan Result Plan Result Plan Result Plan Fiscal Year FY12.3 FY13.3 FY14.3 FY15.3 FY16.3 Divided per share 60 yen 60 yen 45 yen 45 yen 30 yen TOEI ANIMATION 16

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 Go! Princess Pretty Cure SUN at 6:30am on TV Asahi network World Trigger SUN at 9:30am on Fuji TV et al. Dragon Ball Kai 1 st and 3 rd SAT of each month 7:00pm Online Dist. thru nico video and others Sailormoon Crystal Every other SAT at 0:00am Online Dist. Thru Bandai Channel and others SAINT SEIYA soul of gold ABC, Eiichiro Oda, Shueisha,Fuji TV, Bird Studio, Daisuke Ashihara, TV Asahi, PNP, Naoko Takeuchi, Kodansha, Masami Kurumada, Saint Seiya TOEI ANIMATION 17 Soul of Gold Production Committee, Toei Animation

18 Reference (2) Works Scheduled for Release in FY Go! Prencess Pretty Cure the Movie (tentative) To be released in Fall 2015 Digimon Adventure tri. To be put on theaters on November 21, 2016 TOEI ANIMATION ABC, Akiyoshi Hongo, Toei Animation 18