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
Similar documents
HEIWA CORPORATION ANNUAL REPORT 2002
Consolidated Balance Sheets ――14 Consolidated Statements of Income ――16 Consolidated Statements of Shareholders’ Equity ――17 Consolidated Statements of Cash Flows ――18 Notes to Consolidated Financi...
More information