Sanrio Company, Ltd.

Transcription

The Sanrio Investors’ Letter:
To Our Shareholders
Business Report
for the Second Quarter of
the 53rd Fiscal Year
To Our Shareholders
James C. Collins wrote a highly
acclaimed book titled “Built to Last: The
Successful Habits of Visionary
Companies.”
The book states that a “visionary
company” is one that continues to carry
on its operations for 50 years or longer
while achieving excellence within its
industry. Such a company incorporates a
structure that allows it to continue to
flourish regardless of the lifecycles of its
products and generational shifts in
management. Of the tens of thousands of
companies in the U.S., fewer than 20 are
said to have achieved this status. Only 20
companies have managed to become
“visionary companies” in the global
economy and have continued to grow
and flourish during the seven decades
since the end of World War II. As such,
the outstanding nature of these
companies is clear to see. Collins’ book
says the “visionary companies” were all
established with a clear picture of the
future of the company.
Recently, we have seen on the news
that Japanese-made television sets are
no longer selling well.
I can still remember the impact on the
nation when televisions first appeared in
Japan in the 1950s. TV allowed you to
witness events taking place around the
world as you sat at home and to enjoy
sports and dramas unfolding before your
very eyes.
Television sets were originally imported
from the U.S., and Sharp was the first
company in Japan to produce them.
Matsushita Electric (now Panasonic),
Toshiba, and Hitachi followed suit massproducing television sets. Japan went on
to surpass the U.S. in TV production,
demonstrating its strength as an
industrialized nation.
In later years, Sony developed the
Walkman, a device that allowed people to
listen to music while moving around, and
Japan’s electronics makers became
acknowledged as the most technologically
advanced in the world.
Despite this glorious past, television
manufacturing has now largely been taken
over by emerging economies such as
South Korea and China, and Apple in the
1
U.S. created the iPhone, which allows
one to listen to music and watch videos
while moving around freely.
The sad thing is, since it is not possible
for a single company to completely
dominate the electronics industr y,
companies are fated to compete with
each other eternally.
Fifty-three years ago, as Japan was
rapidly shifting from being a nation highly
dependent on fishing and agriculture to
becoming an industrial powerhouse,
Sanrio realized the importance of the role
of communication in this new world, and
established itself as a “social
communication” business. Sanrio’s
business is one step removed from the
competitive elements found within material
s o c i e t y. I n s t e a d , i t i s b a s e d o n a
philosophy of people getting along and
helping one another, as well as on
communication between people such as
parents and children, brothers and sisters
as well as friends.
Holding onto the belief that
communication among people is key to
creating a peaceful society, and based on
the motto “Small Gift Big Smile,” our
company has worked hard for the past 53
years to promote communication between
individuals including parents and children,
siblings and friends with the aim of
encouraging to live together while getting
along and helping one another through
exchanging gifts and cards.
In developing this “social
communication” business, we created
characters to express our unique
perspective. These characters have been
imbued with the characteristics of “getting
along” and “helping one another” so that
these messages can be conveyed to the
entire world. We hope that by creating
collaborations between the characters
and different kinds of products, a culture
which links Asia to the rest of the world
can be created. At present, our characters
are used in 109 countries on products
including clothing, household items, food,
postage stamps, and educational
materials as well as in areas including
finance, insurance, hotels, government,
medicine, sports, entertainment, theater,
and the Japanese Red Cross Society.
Recently, a Sanrio theme park opened
in Malaysia, and an astounding number
people turned out for the Hello Kitty show.
We expect to further expand into Turkey,
China, South Korea, and other countries
in Asia as well as Europe and South
America.
Furthermore, in the U.S., data shows
that sales of greeting cards have
increased during the past two to three
years. This trend reflects a diminished
ability among the younger generation to
choose the right words and to convey
themselves in writing. The youth have thus
come to see greeting cards as a
completely different and valuable way of
communicating as opposed to using
email and short texts, and we believe that
this market will continue to grow in the
future. We would like to continue to
actively export Sanrio’s greeting cards
through its unique planning skills, to the
U.S. and the world.
We believe that our “social
communication” business combined with
the power of our characters will—as
people increasingly feel the importance of
communication—spread throughout the
world.
I would like to thank you, our
shareholders, for your understanding and
continued support of our business.
December 2012
Shintaro Tsuji
President and CEO
Please refer to the Sanrio IR website for details of Sanrio IR
Search
financial results and the latest in related information. http://www.sanrio.co.jp/english/corporate/ir/index.html
Highlights of Consolidated Financial Results
¥34.0
Sales
billion
¥8.4increase)
Operating profit (2.3% year-on-year
billion
(0.6% year-on-year decrease)
Despite the impact of the strong yen, decline in European
licensing income, and the shift in business format from product
sales to licensing in Europe and the USA, increase in the licensing
business of North America kept the drop in sales to a minimum.
Sales (billion yen)
Six months ended Sep. 30, 2012
Strong performance in the North American licensing business, as
well as the effects of cost reduction in domestic product sales
and increased profits at subsidiaries in the “other business”
category contributed to a rise in operating profits.
Operating profit (billion yen)
Full year
Full year
Operating profit margin (%)
76.6
74.9
72.9
(forecast)
14.9
35.9
19.6
34.0
34.3
Full year
19.1
18.9
(forecast)
25.2
(forecast)
24.2
24.9
26.2
17.5
2011/3
2012/3
2013/3
6.2
8.3
8.4
2011/3
2012/3
2013/3
Progress of the Medium-Term Business Plan “New Project 2015”
Through New Project 2015, we aim to be a genuine “global character company” and have set a numerical target for the fiscal year ending
March 31, 2015 of consolidated operating profit of 21.0 billion yen. The numerical target for the current fiscal year is consolidated operating
profit of 19.1 billion yen, and we continue to work toward achievement of the plan.
Segment information
Sales (billion yen)
34.3
2.4
0.4
2.8
6.2
22.3
Six months ended
Sep. 30, 2011
2011/4/1 2011/9/30
Contents
34.0
Japan
Europe
2.5
0.6
(21.4% year-on-year increase)
4.1
4.6
22.1
North America
Six months ended
Sep. 30, 2012
2012/4/1 2012/9/30
South America
8.3
0.4
0
0.7
2.1
5.2
Adjustment
(0.3)
Six months ended
Sep. 30, 2011
2011/4/1 2011/9/30
To Our Shareholders………………………… 1
Highlights of Consolidated Financial Results…… 2
8.4
Asia
0.5
0.1
1.4
1.5
5.2
Six months ended
Sep. 30, 2012
2012/4/1 2012/9/30
Adjustment (0.4)
Segment Information………………………… 3
Consolidated Financial Statements………… 6
(Note) Subsidiaries in overseas regions post an
amount corresponding to royalty income
as cost of sales, and the Japanese parent
company which owns the copyrights
posts this as sales. However, because
this is eliminated through inter-company
transaction, it is not included in sales in
Japan. It is included in operating profit.
Exchange rate
EUR
USD
CNY
KRW
TWD
HKD
2Q of
FY2011
114.87
81.74
12.49
0.0744
2.81
10.50
2Q of
FY2012
103.32
79.49
12.60
0.0696
2.67
10.24
Actual rate
difference
(11.55)
(2.25)
0.11
(0.0048)
(0.14)
(0.26)
Company Information……………………… 7
2
Segment Information
Composition
of sales
13.7 %
Sales (billion yen)
Licensing
6.9
Product sales and others
5.2
Sales (billion yen)
Licensing
4.1
2.4
2.1
4.6
5.1
North
America
12.2 %
6.2
0.9
1.8
Composition
of sales
Europe
1.4
0.7
0.3
1.5
2.8
2.3
0.6
0.6
4.3
1.6
0.7
3.3
0.4
2.1
2010/4/1
2011/4/1
2012/4/1
2010/4/1
2011/4/1
2012/4/1
2010/4/1
2011/4/1
2012/4/1
2010/4/1
2011/4/1
2012/4/1
2010/9/30
2011/9/30
2012/9/30
2010/9/30
2011/9/30
2012/9/30
2010/9/30
2011/9/30
2012/9/30
2010/9/30
2011/9/30
2012/9/30
Key Points from the Second Quarter of Fiscal Year 2012
Although performance was solid in areas including
emerging nations in Eastern Europe and Russia, sales
dropped considerably due to the impact of the debt
crisis in the major European economies of Italy and
Spain.
In addition to the impact of the strong yen, product
sales declined sharply due to the effect of the
economic slowdown combined with the strategic shift
to licensing. As a result, overall sales and profits fell.
Licensing
relationship with major supermarket chain
Walmart was passed the one-year mark. Existing
licensees have increased, and new licensees
performed strongly, resulting in a significant increase
in sales despite the ongoing influence of the strong
yen.
In addition to the effect of cost reductions, licensing
sales for apparel for girls and bags rose sharply, while
other categories such as bedding, toys and shoes
also contributed to a significant rise in profits.
*Accounts for Mexico have been transferred to the South American regional
category starting the current fiscal year.
Key Points for the Full Year Overseas
Europe:· In light of the impact of the economic slump in Europe and the strong yen, the full-year projection has been revised downwards.
· We will move ahead with further development of emerging-nation markets where high growth is expected in the mid to long term,
including Eastern Europe, Russia, the Near and Middle East, India, and Africa.
· Aiming at recovery in the main nations in Europe that have bottomed out, we will implement a diverse range of programs during
the most profitable season of October to December.
3
Composition
of sales
1.8 %
Sales (billion yen)
Licensing
0
0.4
0.4
Sales (billion yen)
Licensing
2.4
0
1.5
0
0.4
Asia
7.4 %
0.6
0.5
Composition
of sales
South
America
2.4
1.2
0.9
2.5
0.5
0.9
0.4
0.3
0.5
0.1
1.1
1.5
0
0
2010/4/1
2011/4/1
2012/4/1
2010/4/1
2011/4/1
2012/4/1
2010/4/1
2011/4/1
2012/4/1
2010/4/1
2011/4/1
2012/4/1
2010/9/30
2011/9/30
2012/9/30
2010/9/30
2011/9/30
2012/9/30
2010/9/30
2011/9/30
2012/9/30
2010/9/30
2011/9/30
2012/9/30
Sales
were up as a result of an increase in brand
awareness due to live Hello Kitty shows in Argentina,
Chile and Colombia, and the transfer of Mexico to the
South American regional category.
The
number of license contracts increased due to the
use of agents starting from the previous fiscal year.
Profits rose amid expansion driven by new licensees
in apparel, toys and other categories alongside the
existing key category of shoes.
Strong performance in all countries, sales and profits up in Asia overall
In China, a license contract concluded in February 2012 with KTL Corporation (part
of Hong Kong-based major wholesaler Li & Fung Group) has led to expansion of
both new and existing licensees and increases in sales and profits.
In South Korea, sales and profits from local subsidiary rose significantly after
licensing contract between local joint venture and Sanrio ended in November 2011.
In Hong Kong, there was expansion in product sales to the Hong Kong region and
Southeast Asian countries, but sales fell considerably for manufacturing exports to
Europe and North America, resulting in a decline in profits. The licensing business
on the other hand saw steady expansion and increased profits.
In Taiwan, sales related to airline companies increased, resulting in a rise in profits.
North America: We will seek for profit expansion by increasing new categories for existing key licensees and introducing products for new
licensees.
Asia: Despite concerns about the economic situation in China, Asia is expected to expand overall.
4
Segment Information
Composition
of sales
Japan
64.9 %
Sales (billion yen)
Licensing
23.7
22.3
22.1
Business Description
Licensing Business
5.2
5.2
The business of conveying the thoughts that
companies and organizations, products and services, wish to
convey by using Sanrio characters loved far and wide.
Product Sales Business This business creates a variety of products that
19.7
17.8
17.8
allow customers to feel closer to the characters as well as develops
stores as places to meet the characters.
3.4
Theme Park Business
3.9
4.4
4.3
2010/4/1
2011/4/1
2012/4/1
2010/4/1
2011/4/1
2012/4/1
2010/9/30
2011/9/30
2012/9/30
2010/9/30
2011/9/30
2012/9/30
Licensing Business
Sales were strong for regional limited editions of products and
for My Melody, LittleTwinStars and Patty & Jimmy characters,
but unsatisfactory performance for apparel and characters
aimed at younger children led to a decline in sales and profit.
Key Points for the Full Year
Efforts will be focused on licensing business of Hello
Kitty, My Melody, LittleTwinStars and others.
Product Sales Business
Sales were robust at new stores at Tokyo Skytree and Aqua City Odaiba, but overall sales
fell owing to the closure of unprofitable stores and sales floors carried out in 2011.
Profits were up as a result of measures including reassignment of staff and reduction of costs.
Renovations at the existing store in Sunshine City and the opening of
a new store in the Hep Five fashion building in Osaka are scheduled.
A new store for adult customers will be opened in the
Hankyu Umeda Main Store to expand the customer base.
5
Operates Sanrio Puroland in Tama City in
Tokyo and Harmony Land in Oita Prefecture as venues for developing
and nurturing characters. In addition to attractions, product sales,
and restaurants, this business provides live entertainment.
Theme Park Business
Sanrio Puroland
Number of visitors: 401,000 (0.5% year-on-year increase)
The number of domestic individual visitors declined,
but overseas group visitors on the other hand increased, resulting in a rise in the number of visitors.
Harmony Land
Number of visitors: 203,000 (1.7% year-on-year decrease)
Although the number of tourist groups from China,
Taiwan and South Korea increased, and efforts to attract customers through corporate tie-ups performed
favorably, the number of visitors declined due to the
unfavorable weather during the summer.
Attracting tourists from abroad through synergistic effects with overseas theme parks.
Renew existing attractions and events and introduce
new shows.
Consolidated Financial Statements
Overview of Consolidated Balance Sheets (millions of yen, rounded down to the nearest million)
End of FY2011
End of 2Q of FY2012
As of Mar. 31, 2012
As of Sep. 30, 2012
Overview of Consolidated Income Statements (millions of yen, rounded down to the nearest million)
2011.4.1
2012.4.1 2012.9.30
2011.9.30
Sales
Current
assets
28,626
Total
liabilities
44,009
51,669
Current
assets
Fixed
assets
44,598
Net assets
37,078
Deferred
assets
141
Total Total liabilities and
assets
net assets
88,748 88,748
Total
liabilities
Long-term
liabilities
49,193
24,043
23,043
Shareholders’
equity
45,066
Accumulated other
comprehensive income Fixed
△8,070
assets
Stock acquisition 42,271
rights
29
Deferred
Minority
assets
interests
135
52
Total
assets
Cost of sales
11,756
Provision of reserve for
adjustment of returned
goods 5
Selling, general and
administrative expenses
14,238
25,150
45,903
Long-term
liabilities
Sales
34,304
Current
liabilities
Current
liabilities
Net
assets
39,117
Total liabilities
and net assets
88,310 88,310
Gross profit
Shareholders’
equity
47,538
Accumulated other
comprehensive
income
△8,560
Stock acquisition
rights 75
Minority
interests 63
Non-operating profit
538
Non-operating expenses
908
22,547
Operating profit
8,304
Ordinary profit
7,934
Net profit
5,562
Extraordinary gains
34
Extraordinary losses
338
Income taxes
2,060
Minority interests in income of
consolidated subsidiaries 7
Key Points from the Consolidated Balance Sheets
Significant Changes in Asset Items
(Increased items) 2.7 billion yen in cash and deposits
(Decreased items) 1.7 billion yen in trade notes and accounts receivable, 0.6 billion yen in
deferred tax assets, 1.2 billion yen in others under investments and other
assets as well as investment securities, guarantees and other items.
Significant Changes in Liabilities Items
(Items increased) 1.6 billion yen in long-term borrowings
(Items decreased)
2.5 billion yen in short-term borrowings, 0.8 billion yen in corporate bonds
(including the current portion), 0.3 billion yen in accrued income taxes
Significant changes in net asset items
An increase of 2.0 billion yen mainly due to an increase of 5.5 billion yen from net profit,
an increase in retained earnings of 3.3 billion yen from a decrease of 2.2 billion yen in
dividends paid, a net increase of 0.8 billion yen in treasury stock (purchase and sale), and
a decrease of 0.4 billion yen in net unrealized gain (loss) on other securities.
34,095
Cost of sales
11,181
Reversal from reserve for
adjustment of returned
goods 14
Gross profit
22,914
Selling, general and
administrative expenses
14,432
Non-operating profit
851
407
Extraordinary
gains 10
Extraordinary
losses 1,154
Ordinary
Income taxes
Operating profit
2,193
profit 8,939
Net profit
Minority interests in
8,496
5,591
income of consolidated
subsidiaries 10
Key Points from Consolidated
Income Statements
0.4 billion yen resulting
mainly from interest
expense.
Extraordinary losses
Extraordinary losses of
1.1 billion yen were
posted mainly as a
result of an impairment
loss of 0.6 billion yen
and valuation loss on
investment securities of
0.2 billion yen.
6
Company Information (as of September 30, 2012)
Company Profile
Company Name : Sanrio Company, Ltd.
Sanrio Co., Ltd.
E s t a b l i s h e d : August 10, 1960
C a p i t a l : 10 billion yen
Stock Information
Status of shares
Total Number of Shares Authorized to be Issued 310,000 thousand shares
89,065 thousand shares
Total number of outstanding shares
33,796
Number of Shareholders
E m p l o y e e s : 776 (Male: 397, Female: 379)
Main Office Address : 1-6-1, Osaki, Shinagawa-Ku, Tokyo
Major Shareholders
H e a d O f f i c e * : 1-11-1, Osaki, Shinagawa-Ku, Tokyo
Tel: +81-3-3779-8111
Distribution Center : 2-1-4, Oyamagaoka, Machida-Shi, Tokyo
Tel: +81-42-798-4380
Kansai Branch : Shin-Osaka Central Tower, 5-5-15,
Nishinakajima, Yodogawa-Ku, Osaka-Shi
Tel: +81-6-6308-8911
Kyushu Branch
JT Hakata Bldg., 2-10-35, Hakataekihigashi, Hakata-Ku, Hakata-Shi
Tel: +81-92-472-7531
* Head office functions were transferred to the above address on May 28, 2012. There is no
change to the registered main office address.
Board of Directors:
Executive Auditors:
President and Chief Shintaro Tsuji
Executive Officer
Senior Executive Vice President Kunihiko Tsuji
and Chief Operating Officer
Managing Director Susumu Emori
Managing
Iwao Chiba
Executive Auditor
Executive Auditor Shoji Omori
Managing Director Makoto Sato
Director
Kazuyoshi Fukushima
Director
Takahide Nakaya
Director
Saburo Miyauchi
Director
Yuko Sakiyama
Director
Akito Sasaki
Director
Yoshio Furuhashi
Director
Masahiro Yamaguchi
Director
Rehito Hatoyama
Director
Yasuhito Hanado
Shareholder Name
SEGA SAMMY HOLDINGS INC.
KORNAN Co., LTD
Kiyokawa Inc.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation
The Master Trust Bank of Japan, Ltd. Trust Account
Japan Trustee Services Bank, Ltd. Trust Account
Nippon Life Insurance Company
Mizuho Corporate Bank, Ltd.
Shintaro Tsuji
Kunihiko Tsuji
Executive Officers:
Executive Officer Kosho Nomura
Executive Officer Satoru Shimizu
Executive Officer Yoichiro Shimomura
Executive Officer Hidekazu Chimura
Executive Officer Miyuki Okumura
Executive Officer Roberto Lanzi
End of FY2011
As of Mar. 31, 2012
Number of shares
12,326
14.0
9,647
10.9
6,791
7.7
3,862
4.4
3,834
4.4
3,394
3.9
3,171
3.6
2,083
2.4
1,852
2.1
1,811
2.1
1,692
1.9
(%)
(thousands)
Japanese individuals and others
Japanese financial institutions
Financial instruments business operators
Foreign institutions and individuals
General corporations
Total
16,693
24,826
1,675
12,038
33,833
89,065
2Q of FY2012
As of Sep. 30, 2012
Number of Number of shares Number of
shareholders (thousands) shareholders
32,914
16,731
33,081
51
27,388
54
47
1,239
36
332
10,197
349
261
33,510
276
33,605
89,065
33,796
Share Composition Ratio by Shareholder Category (%)
1.9
2012/3
18.7
2012/9
18.8
Executive Officer Hideo Yamaguchi
13.5
27.9
30.8
11.4
1.4
7
Ratio of
Voting
Transition in Share Distribution by Shareholder Category
Executive Auditor Michio Ishikawa
Executive Auditor Yasuo Takenouchi
Number of
shares held
(thousands)
38.0
37.6
Introduction of Characters
This page gives an introduction of our characters and the ideas behind their design. Each of them is redesigned seasonally, so keep coming back to check!
Hello Kitty
Cinnamoroll
Kitty is a cheerful, happy
and kind girl who was
born in London. She is
best friends with her twin
sister Mimmy. She loves
her Mama’s apple pies!
His curly tail that looks like
a cinnamon bun and his
long ears that allow him to
fly is what makes him
charming. The new show
“Cinnamon World Travels”
opens at Sanrio Puroland
on December 14.
My Melody
Pompompurin
Kerokerokeroppi
Kuromi
SHINKANSEN
The Runabouts
Keroppi is an adventurous boy
frog with a lively personality
who lives in Donut Pond, and
he is popular among his friends.
He is a fantastic swimmer and
singer! He is a triplet and has a
brother called Koroppi and a
sister called Pikki.
The Shinkansen trains
are always energetic.
There are 14 of them
altogether. They are all
great friends and love to
race and chase. Let’s see
which city they are off to
today!
My Melody is a bright
and honest little girl. Her
treasure is a bright red
hood her Grandma made
for her! She loves making
cookies with her Mama.
His brown beret is his
trademark. The word he
likes the most is “going
out” and the word he
dislikes is “staying inside.”
He likes to collect shoes
and them hide them one
by one.
She is the self-proclaimed
rival of My Melody. She has a
free and rowdy spirit, but is
actually quite girly on the
inside with a soft spot for cute
guys. Her hobby is keeping a
diary and her favorite food is
pickled onions.
This hard-working group
of vehicles is colorful and
fun-loving. Dan and his
friends, the dump trucks,
are always full of energy
and noise. They love their
job and are always busy
running around town.
1-6-1, Osaki, Shinagawa-Ku, Tokyo 141-8603
LittleTwinStars
Jewelpet
TuxedoSam
Go Expanda
Born on the Planet
Thoughtfulness in the
Galaxy of Dreams as twin
stars, Kiki, the younger
brother, is full of curiosity,
while his older sister Lala
is timid and cries easily.
The Jewelpets live in Jewel
Land as the pets of a magical
wizard. They each have a
different kind of sparkling
jewel for their eyes, and they
can use their jewel-eyes to
cast magic spells.
Born in Antarctica, he is
a little bit clumsy and
loves to eat. He has great
fashion sense and owns
365 bowties. He is very
good at speaking English
and has studied in
England.
Go chan is the panda prince
from the planet Expanda. He
is an all-around athlete with
a 2nd degree black belt in
karate. His birthday is May 5.
Go chan was born as the
mascot character for TV
Asahi.

Sanrio Company, Ltd.

Transcription

Similar documents

Sanrio Company, Ltd.

JERCO Mtg_Okuta Co Presentation

Re+g Standard Products

APA HOTEL〈KOBE

Kato Sangyo Co.,Ltd Company Profile 2012.11

Quick and Simple Recipe

Tax-Free Shopping

6-7