HEIWA BUSINESS REPORT 2011

Transcription

HEIWA BUSINESS REPORT 2011
Information for Shareholders
Business Year: From April 1 of each year to March 31 of the following year
Record Dates:
Year-end dividends: March 31 of each year
Interim dividends: September 30 of each year
General Meeting of Shareholders: June of each year
Transfer Agent/
Special Account Administrator: Mitsubishi UFJ Trust and Banking Corporation
For Inquiries: Stock Transfer Agency Department of Mitsubishi UFJ Trust and Banking Corporation
Tel: 0120-232-711 (toll free)
Stock-Related Processing Forms:
Request by audio-assisted automated phone (0120-244-479 (toll-free))
Download forms from the Internet (http://www.tr.mufg.jp/daikou/)
Stock Exchange Listing or Registration: Tokyo Stock Exchange, First Section
How to Make Public Notification:
Digital notification (http://www.pronexus.co.jp/koukoku/6412/6412.html)
(However, when there is a problem or otherwise inevitable incidents that cannot be disclosed digitally, a
notice will be placed in the Nihon Keizai Shimbun.)
HEIWA
BUSINESS
REPORT
2011
From April 1, 2010 to March 31, 2011
Notice to Shareholders
(1) To notify a change of address, to request the repurchase of fractional shares, and other procedures, please contact your
account administrator, i.e., the securities firm or other financial institution where you hold the relevant account. Please
note that the transfer agent (Mitsubishi UFJ Trust and Banking Corporation) does not accept such requests.
(2) The account to receive dividends can be designated by submitting the appropriate form through your account
administrator (e.g., securities firm). For details of this procedure, please contact your account administrator.
(3) Accrued dividends can be received at the head office and branches of Mitsubishi UFJ Trust and Banking Corporation.
To Our Shareholders
To Our Shareholders
We will intensify our focus on the development of highly original amusement machines
offering superior entertainment value with the aim of expanding our market share.
Chart 1
Number of Pachinko Parlors and Average
Number of Installed Amusement Machines per Parlor
Average Number of Installed Amusement Machines per Parlor
Number of Pachinko Parlors
(units)
I wish to extend our sincere gratitude to all of our shareholders for
your continued business and support.
In this report, you will find the business results for fiscal 2011,
the 43rd period of the Heiwa Group, from April 1, 2010 to March
31, 2011.
Chart 2
Number of Installed Amusement Machines
Installed Pachinko Machines
Installed Pachislot Machines
(thousand parlors)
(thousand units)
400
20
4,000
300
15
3,000
200
10
2,000
100
5
1,000
0
0
Question 1
0
How was the business environment
during fiscal 2011?
President
Yasuhiko Ishibashi
1 HEIWA BUSINESS REPORT 2011
The amusement machine industry, in which the Heiwa Group
operates, has been impacted by the ever-increasing number of
pachinko players, driven not only by the widespread adoption of
low-priced pachinko rental ball services as a new service model in
pachinko parlors but also by the recovery in popularity of pachislot
machines after the prolonged slump in recent years.
The business climate surrounding the pachinko parlor market
remains tough due to the decline in profitability, which is
attributable to the industry-wide introduction of low-priced
pachinko rental ball services as well as to the prolonged slump in
the operation of pachinko machines. According to data released by
the National Police Agency in April 2011, the number of pachinko
parlors as of December 31, 2010 was 12,479, down 1.4% from the
previous year. Although the number of parlors continues to
decrease, the rate of decline was the lowest in the past five years.
In addition, the number of installed amusement machines increased
for the first time in four years to 4,554 thousand units, up 1.1%
2001
02
03
04
05
06
07
08
09
10
2001
02
03
04
05
06
07
08
09
10
Source: National Police Agency.
Note: Number of installed amusement machines includes arrange-ball machines and mahjong ball game machines.
from the year before. Thus, the decrease in the number of parlors
was more than offset by the increase in the number of installed
amusement machines. As a result, the average number of machines
per parlor rose 2.5% from the year before to 365 units, reflecting
the ongoing shift to larger-scale parlors and the decline in the
number of smaller parlors.
Overall, sales results of amusement machines were mixed. Sales
of pachinko machines decreased drastically from the year before
due to the impact of the Great East Japan Earthquake as well as the
self-restraint regarding product replacement shown by industrial
organizations in consideration of the APEC conference held in
Japan. On the other hand, sales of pachislot machines increased
from the previous year, driven by meaningful and sustainable
replacement demand reflecting the rise in popularity of pachislot
machines, although some of the same negative factors were
present as seen in pachinko machines.
Question 2
How were your operating results
during the fiscal year under review?
The market environment in the amusement machine business,
a core business of the Heiwa Group, remains difficult, with
intensifying competition among amusement machine makers in the
pachinko and pachislot machine market.
In this tough environment, we continued to focus intensively on
“Strengthening R&D,” “Effective Reuse Designs” and “Boosting
Efficiency in Development, Procurement and Production” to expand
our market share and improve profitability.
Looking at the operating results for the fiscal year under review,
we sold 168 thousand pachinko machines and 111 thousand
pachislot machines in the amusement machine business, recording
HEIWA BUSINESS REPORT 2011
2
To Our Shareholders
Overview of Business
Pachinko Machine Business
85,880 million yen in net sales, 15,276 million yen in operating
income, 24,687 million yen in ordinary income, and 20,451 million
yen in net income. These results marked the second successive
year of increases in both sales and profits.
Operations at the Sendai Office and the Koriyama Satellite Office
were suspended due to the damage from the Great East Japan
Earthquake. However, both offices have already reopened, and the
effects on business performance during the fiscal year under
review were minimal.
Question 3
Do you have a message for your
shareholders?
Regarding the outlook for the next fiscal year (fiscal 2012, the 44th
period, ending March 31, 2012), we expect 78,200 million yen in
net sales, 14,800 million yen in operating income, 23,900 million
yen in ordinary income, and 18,100 million yen in net income, on
the assumption that the market environment will remain difficult
due to the deteriorating environment in the pachinko parlor market
and the uncertain impact of the Great East Japan Earthquake.
However, although the market environment is expected to remain
harsh, the Heiwa Group will continue to focus intensively on
“Strengthening R&D,” “Effective Reuse Designs” and “Boosting
Efficiency in Development, Procurement and Production” to expand
its market share and improve profitability.
3 HEIWA BUSINESS REPORT 2011
In particular, we will focus on “Strengthening R&D” to develop
not only highly original amusement machines equipped with new
and novel features but also those with superior entertainment value
and a wide variety of payout and gaming features, to further boost
their competitiveness.
In addition, we will continuously provide such products, with the
aim of improving the reliability of the Heiwa Group’s products,
enhancing our brand value and expanding our market share.
The profit sharing with shareholders during fiscal 2012 will be
based on the Heiwa Group’s basic policy on profit sharing that aims
to boost corporate value and thereby provide stable and ongoing
dividends to shareholders through active investments in enhanced
R&D, capital spending and information technology from mediumand long-term perspectives. Based on the policy, we plan to
distribute an annual dividend of 50 yen per share for fiscal 2012,
including an interim dividend of 25 yen.
We look forward to the continued support of our shareholders.
Pachislot Machine Business
During the fiscal year under review, the pachinko machine
business posted 52,106 million yen in net sales and 168
thousand units in sales volume. New models released during
the year included Ganso! Ohedo Sakura Fubuki 2, Lupin The
3rd—Hunting for the Tokugawa Hoard, and Pachinko Machine
Named Antonio Inoki—Michi.
During the fiscal year under review, the pachislot machine
business posted 32,610 million yen in net sales and 111
thousand units in sales volume. New models released during
the year included Nangoku Sodachi Special, Lupin The
3rd—Treasure of the Lupins, and Pachislot Machine Energized
by Antonio Inoki.
Pachinko Machine Named Antonio Inoki—Michi
Pachislot Machine Energized by Antonio Inoki
Here, in the third generation of this
pachinko machine series, the
Antonio Inoki character flexes his
muscles in various settings, with a
large-scale moving gadget
“Threefold Tokon Shutter” as well as
a variety of screen presentations.
During the high-jackpot possibility
mode called “Tokon Chance” and the
Reach phase, fierce matches unfold
between Inoki and his archrivals,
such as Riki Choshu and Tatsumi
Fujinami, making the game more
exciting and filled with adrenaline.
Outlook
for Fiscal
2012
©2010 INOKI GENOME FEDERATION
Developed under the theme, “Inoki
can be overtaken by nobody else but
Inoki,” the model features “Tokon
Chance” as ART time, which is very
familiar to users of the firstgeneration model Pachislot Machine
Named Antonio Inoki. Various
bonuses, such as “Premium Bonus”
and “Michi Premium,” make this
pachislot machine even more
exciting and fun to play. Other
notable features include the
screen presentation, incorporating
scenes of Antonio Inoki visiting many
cities across Japan and
live-action images.
The Group expects 78,200 million yen in net sales, 14,800
million yen in operating income, 23,900 million yen in ordinary
income, and 18,100 million yen in net income for fiscal 2012.
Due to the accounting process involved with a reverse
acquisition, the Group plans to book as non-operating income
8,600 million yen for the amortization of negative goodwill.
©2010 INOKI GENOME FEDERATION
(million yen)
Net sales
Operating income
Ordinary income
Net income
Fiscal year ending Fiscal year ended
March 2012
March 2011
(forecast)
(actual figures)
85,880
78,200
14,800
15,276
23,900
24,687
18,100
20,451
HEIWA BUSINESS REPORT 2011
4
Special Report:
Development Team Members’
Roundtable Discussion
Aim at further
evolution!
Create more fun!
Sengoku Otome 2,
representt i ng
developers’
uncompromising
pursuit of excellence
Project leader: Yoshihiro
Fujiwara
Board design: Naoya
We also want to grab a great deal of attention by creating
the first model featuring the new “Da-Win” service.
—The
off S
Sengoku
Otome 2
Th ddevelopers
l
k O
(warring states girls 2), which debuted in
pachinko parlors in June 2011, are here
today for a roundtable discussion.
Fujiwara: This model is the successor to
Sengoku Otome, which was a big hit in
2008. The popular predecessor was made
into comic books and TV anime. So the
launch of the latest model had been long
anticipated.
Oi: For the past three years, the popularity of
Sengoku Otome has grown significantly,
with a large number of fans of the pachinko
machine as well as of the featured story and
characters.
Morishita: Recognizing this, we wanted to
develop a new model that could both satisfy
existing fans and attract first-time players.
This ambition was shared by all of the
development team members from the very
beginning of the development process.
Nomura: In that respect, we were under
some pressure, weren’t we?
—The model is also attracting a lot of
attention for its adoption of “Da-Win” for
the first time in the industry.
Fujiwara: “Da-Win” allows players to receive
a variety of services by connecting their
mobile phones and the pachinko machines
through the use of the QR code and a
password.
Oi: From the early stage of the product
development process, we wanted to
incorporate “Da-Win” into the new model.
Nomura: Since the characters of Sengoku
Otome have many loyal fans, the successor
model was perfect for introducing “Da-Win.”
Players can participate in ranking events and
customize the machine’s screen presentation
through “Da-Win.”
Sawada
Video planning: Takayuki
Morishita
announcement, a feature to increase players’
expectations for possible jackpots.
Morishita: Sengoku Otome has many
characters, and all of them are “A-list.” It
was difficult to decide the casting of these
characters in the most attractive way.
Fujiwara: The development process required
a lot of effort, but I never thought of it as a
hardship.
Nomura: Coordinating all related parties to
make the development team members’
Fujiwara: It will be adopted in many new
models in the future. I hope Sengoku Otome
2 will provide a good precedent for such
followers.
—What was the biggest challenge
you faced?
Oi: It was quite a challenge for us to make
the new model demonstrate eloquently that
it has evolved dramatically from
“Da-Win”’s services that mesmerize pachinko fans
the previous version in every
single element, from moving
gadgets to screen presentation.
Sawada: Speaking of moving
gadgets, we wanted to make
nobori flags, which only moved in
the older version, sparkle.
Fujiwara: We wanted to avoid
copying other models. For
example, we have introduced the
“successive stock announcement”
as a completely new type of such
Machine customization and other speed-run features
Various types of awards based on the points earned
Ability to interact with other fans through the community
More and more models featuring “Da-Win” will
be launched in the future. Don’t miss them!
HEIWA BUSINESS REPORT 2011
6
Special Report:
Consolidated Financial Statements
Development Team Members’
Roundtable Discussion
Consolidated Balance Sheets
We have a fabulous team. Nobody
hesitates to express their ideas or opinions
about creating a great machine.
wishes come true must have been the
biggest challenge for Fujiwara-san,
I suspect [laughs].
—Didn’t you have any run-ins within
the team?
Nomura: Actually, we did not, which is
very exceptional for a development
team [laughs].
Fujiwara: I think it is probably because we all
had a very similar vision of the new model,
or what kind of a pachinko machine we
Structure management: Shigeaki
wanted to create, from the early stage of
the process.
Oi: Yes, we shared the same ambition,
focusing on how far the new model would
be able to evolve from its predecessor,
while inheriting the good qualities,
such as character designs and basic
gaming features.
Nomura: We did trial plays so many times.
More than once or twice, we spent a whole
day from morning to evening playing a trial
A Sengoku Otome fan event in Akihabara, Tokyo. The venue was
filled with many fans enjoying photo shooting with official
“cosplayers,” playing with the new model before its launch, and
buying limited-edition merchandise.
Oi
Gauge staff: Hiroki
Nomura
product and bouncing candid ideas and
opinions off each other.
Sawada: The atmosphere of the team
allowed us to express anything we had in
mind and hash out the details.
Fujiwara: I am grateful to my team for their
dedication. They all participated in the
development assignment with a great sense
of responsibility.
—Before we go, please take this
opportunity to send a message to Sengoku
Otome fans.
Morishita: The new model has a long-lasting
appeal with a combination of the gallantry
and ferociousness of Sengoku (warring
states) and the glamour of Otome (girls).
Fujiwara: We are more than confident about
its quality screen presentation and exciting
and fun gaming features. Please visit a
pachinko parlor to see it for yourself.
Assets
Current assets
Noncurrent assets
Property, plant and equipment
Intangible assets
Investments and other assets
Assets
Liabilities
Current liabilities
Noncurrent liabilities
Liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Accumulated other comprehensive income
Subscription rights to shares
Net assets
Liabilities and net assets
FY2011
(as of March 31, 2010)
(as of March 31, 2011)
92,301
64,449
31,622
108
32,717
156,750
88,439
60,343
30,079
85
30,178
148,783
27,621
32,802
60,424
34,918
17,146
52,065
Assets and equity ratio
(million yen)
(%)
200,000
80
Assets
Equity ratio
156,750
150,000
140,470
100,000
62.8
148,783
70
64.9
60
61.4
50,000
50
0
0
FY2009
FY2010
FY2011
96,326
96,717
FY2010
FY2011
Net assets
(million yen)
95,773
16,755
53,063
26,899
(945)
487
65
96,326
156,750
120,000
96,338
16,755
53,063
42,410
(15,890)
275
102
96,717
148,783
Consolidated Statement of Changes in Net Assets
100,000
88,251
80,000
60,000
40,000
20,000
0
FY2009
FY2011 (from April 1, 2010 to March 31, 2011)
(million yen)
Shareholders’ equity
Accumulated other Subscription
rights to
Total shareholders’ comprehensive
Capital stock Capital surplus Retained earnings Treasury stock
income
shares
equity
Balance as of March 31, 2010
16,755
53,063
26,899
(945)
95,773
487
65
Total net
assets
96,326
Changes of items during the period
Dividends from surplus
(4,940)
(4,940)
(4,940)
Net income
20,451
20,451
20,451
Purchase of treasury stock
(14,945)
(14,945)
Net changes of items other than shareholders’ equity
Changes of items during the period
Balance as of March 31, 2011
7 HEIWA BUSINESS REPORT 2011
(million yen)
FY2010
—
—
15,511
(14,945)
565
16,755
53,063
42,410
(15,890)
96,338
(14,945)
(211)
37
(211)
37
(174)
391
275
102
96,717
HEIWA BUSINESS REPORT 2011
8
Consolidated Financial Statements
Consolidated Statements of Income
Corporate Data & Stock Information
(million yen)
FY2010
FY2011
April 1, 2009
( tofromMarch
31, 2010 )
April 1, 2010
( tofromMarch
31, 2011 )
Net sales
Cost of sales
63,328
85,880
38,330
46,728
85,880
63,328
60,000
Gross profit
Selling, general and
administrative expenses
Operating income
Non-operating income
24,997
39,151
21,256
23,875
3,740
15,276
10,658
9,684
882
273
13,517
24,687
15
82
574
447
20,000
12,958
24,323
15,000
1,011
3,871
49,689
Ordinary income
Extraordinary income
Extraordinary loss
Income taxes
FY2010
FY2011
Capital: 16,755 million yen
Operating income (loss)
(million yen)
—
20,451
Minority interests in income
—
—
5,000
11,947
20,451
0
−5,000
FY2010
FY2011
April 1, 2010
( tofromMarch
31, 2011 )
Net cash provided by operating activities
21,769
Net cash provided by (used in) investing activities
(16,280)
Net cash used in financing activities
(5,449)
Effect of exchange rate change on cash and cash equivalents
20
23,405
396
(20,366)
(0)
Net increase in cash and cash equivalents
59
3,435
Cash and cash equivalents at beginning of year
38,911
38,971
Cash and cash equivalents at end of year
38,971
42,406
9 HEIWA BUSINESS REPORT 2011
3,740
−3,885
FY2009
FY2010
FY2011
(million yen)
April 1, 2009
( tofromMarch
31, 2010 )
Head Office: 2-22-9, Higashiueno, Taito-ku, Tokyo 110-0015,
Japan
Number of Shares Issued
Establishment: 1960
0
Income before minority interests
Consolidated Statements of Cash Flows
Number of Shares Authorized
Foundation: 1949
10,000
Net income
Trade Name: Heiwa Corporation
228,903,400 shares
99,809,060 shares
Number of Shareholders
15,004
URL: http://www.heiwanet.co.jp/
15,276
Income before income taxes
Stock Information
30,000
FY2009
Non-operating expenses
Corporate Data
(million yen)
90,000
Net sales
(as of March 31, 2011)
Net income
(million yen)
25,000
20,451
20,000
Directors and Corporate Auditors (as of June 29, 2011):
Representative Director/President: Yasuhiko Ishibashi
Representative Director/Executive Vice President:
Katsuya Minei
Senior Managing Director: Toshinobu Moromizato
Managing Director: Toru Machida
Directors: Toshio Yoshino
Yasuaki Ikemoto
Senior Corporate Auditor: Koji Kawano
Corporate Auditors: Takeshi Sato
Akinori Endo
Kimiyuki Yamada
Description of Business:
Development, manufacturing, sale of pachinko machines
Development, manufacturing, sale of pachislot machines
Stock Distribution by Type of Shareholders
Financial instruments firms:
679,860 shares
0.68%
Treasury stock:
14,501,252 shares
Overseas corporations and
others:
9,045,314 shares
9.06%
14.53%
Ordinary corporations:
37,324,100 shares 37.40%
Financial institutions:
10,492,200 shares
10.51%
Individuals:
27,766,334 shares
Share Price Chart
27.82%
(monthly)
Share price
(yen)
1,600
1,400
1,200
1,000
15,000
Offices: Head Office, Hokkaido, Sendai, Takasaki, Tokyo, Nagoya,
Osaka, Hiroshima, Fukuoka and 20 Sales Offices
11,947
10,000
Trading volume
(million shares)
6
800
4
Factory: Isesaki
5,000
1,711
2
0
FY2009
FY2010
FY2011
Main Banks: Mizuho Bank, Bank of Tokyo-Mitsubishi UFJ
0
10/4
5
6
7
8
9
10
11
12 11/1
2
3
HEIWA BUSINESS REPORT 2011
10