Sanrio Company, Ltd.

To Our Shareholders
Recently, the economic reforms introduced by Japanese
Prime Minister Shinzo Abe known as “Abenomics” have
continued to find traction. This has helped many Japanese
corporations achieve better results. Following the protracted
yen appreciation, the gradual depreciation of the Japanese
currency has also benefitted Japan’s export industry, leading
to vastly improved performance at many companies. At the
same time, corporations that have enjoyed success also
face the emergence both domestically and internationally of
companies with similar business models and intensifying
competition.
Sanrio was founded as a business that promotes people
getting along and helping each other. We started as a social
communication gift and card business based on our firm
belief in the importance of communicating through the
exchange of small gifts. Today we have a presence in more
than 120 countries worldwide.
1
In pioneering this industry, today we have developed a
unique brand and character licensing business. Through
this we license various characters, including the much-loved
Hello Kitty, My Melody Pompompurin and many other Sanrio
characters, for use on products, in sales and marketing,
and service industries.
We are witnessing an astonishing increase in the requests
for licensing from sources outside the traditional areas of
focus such as products including apparel, shoes and bags
as well as food and accessories. This new demand includes
the spheres of educational institutions, the financial industry
and government services such as licensing characters as
goodwill ambassadors to promote tourism in Japan, for
postage stamps and telegrams. We also are experiencing a
vast increase in requests from around the world in the
segment that we call “space character licensing.” This refers
to licensing and advertising related to physical spaces and
encompasses everything from sports teams, hotels and
cafes to sweets, advertisements and theme parks. In fact,
the growth potential for this segment is expanding at a rate
that may exceed traditional product licensing. The Hello Kitty
stamps recently issued in Singapore have proved to be
incredibly popular.
Asia is a prime example of the growing profile of Sanrio’s
global network of social communication gift shops (retailers)
with 23 shops in Hong Kong, 20 shops in Thailand, 122
shops in China, 39 shops in Taiwan, seven shops in
Singapore, seven shops in Malaysia, nine shops in
Indonesia and 23 shops in the Middle East. In Japan, we
have begun rolling out new shop designs that go beyond
product sales to provide a space where families and friends
can gather and relax. New shops such as character cafes
as well as participation-based events have met with great
acclaim for creating locations and atmospheres where
customers can truly enjoy themselves.
The entire Sanrio team is committed to achieving
continued growth in the social communication business and
remains dedicated to our role in helping create a cute,
friendly and compassionate society. On behalf of all Sanrio
employees, I would like to thank our shareholders and
investors for their steadfast support and guidance.
Shintaro Tsuji
President and CEO
Please refer to the Sanrio IR website Sanrio IR
Search
for details of financial results and
latest information
http://www.sanrio.co.jp/corporate/ir/
DATA
Highlights of Consolidated Financial Results
Sales ¥77.0
Operating profit
billion
(3.7% year-on-year increase)
¥21.0
(4.1% year-on-year increase)
Sales increased due to the strong
Record-high profits were reported for
performance in the licensing business in
the promising markets of North and
South America and Asian countries.
the third consecutive term.
Sales (billion yen)
Operating profit (billion yen)
766
738
Operating profit margin (%)
749
742
Net profit ¥12.8
billion
25.2
27.2
189
143
201
125
(2.1% year-on-year increase)
billion
Net profits rose despite the increase in
the ta x burden due to the high
percentage of sales from countries with
higher tax rates, namely North America
and Japan.
Net profit (billion yen)
770
27.3
796
27.6
19.6
12.6
92
43
2010/3
149
93
2011/3
2012/3
210
128
2013/3
2014/3
220
144
2015/3
(Estimate)
■ Progress of the Medium-Term Business Plan “New Project2015”
Operating profit reached a record high in the fiscal year ended
March 31, 2014 and achieved a target level of ¥21.0 billion under
the “New Project 2015.” In the fiscal year ending March 31, 2015,
the final year of “New Project 2015,” we will add a management
performance indicator of ROE (return on equity) of at least 20% as a
way of solidifying our base for our next Medium-Term Business Plan.
■ Return to stockholders
Based on the dividend payout ratio of at least
30%, and in light of our strong performance,
a year-end dividend of ¥50 per share, including
a ¥20 commemorative dividend for the 40th
anniversary of Hello Kitty, for a total annual
dividend of ¥80 will be paid. For the next fiscal
year, we plan to offer a commemorative dividend
of ¥20 per share as ordinary dividend, and an
annual dividend of ¥80 per share (¥40 in
dividends payable at the end of the 2nd quarter
and fiscal year-end), while aiming to achieve
better results and return more to the
shareholders.
Dividend per share (yen)
End of 2Q
Year-end
Consolidated payout ratio (%) 80
Commemorative
dividend
¥20
45
40
25
25
24.6
30
31.7
80
55.1
15
20
30
2012/3
2013/3
2014/3
C o n t e n t s
40
49.0
40
2015/3
(Estimate)
To Our Shareholders…… 1
Highlights of Consolidated
Financial Results………… 2
Company Information…… 3
2
Company Information (as of March 31, 2014)
DATA
Company Profile
Stock Information
Sanrio Company, Ltd.
Sanrio Co., Ltd.
● Status
Established:
August 10, 1960
Total Number of Outstanding Shares
Capital:
10 billion yen
Number of Shareholders
Employees:
746 (Male: 361, Female: 385)
Main Office:
1-6-1, Osaki, Shinagawa-Ku, Tokyo
Head Office*:
1-11-1, Osaki, Shinagawa-Ku, Tokyo
Tel: +81-3-3779-8111
Company Name:
Distribution Center: 2-1-4, Oyamagaoka, Machida-Shi, Tokyo
Tel: +81-42-798-4380
Shin-Osaka Central Tower, 5-5-15,
Nishinakajima, Yodogawa-Ku, Osaka-Shi
Tel: +81-6-6308-8911
Kansai Branch:
Hakata Prime East,2-10-35,
Hakataekihigashi,Hakata-Ku, Hakata-Shi
Tel: +81-92-472-7531
Kyushu Branch:
* 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
3
(As of June 26, 2014)
Directors:
Executive Auditors:
President and Chief
Executive Officer
Managing Director
Managing Director
Managing Director
Managing Director
Managing Director
Director
Director
Director
Director
Director
Outside Director
Outside Director
Outside Director
Outside Director
Managing
Executive Auditor
Outside Executive Auditor
Iwao Chiba
Shoji Omori
Outside Executive Auditor
Michio Ishikawa
Outside Executive Auditor
Yasuo Takenouchi
Shintaro Tsuji
Susumu Emori
Kazuyoshi Fukushima
Rehito Hatoyama
Takahide Nakaya
Saburo Miyauchi
Yuko Sakiyama
Yoshio Furuhashi
Kosho Nomura
Yoichiro Shimomura
Jiro Kishimura
Norio Kitamura
Mitsuaki Shimaguchi
Yoshiharu Hayakawa
Haruki Satomi
310 million shares
● Major
89.065 million shares
44,527
Shareholders
Number of
shares held
Shareholder Name
(thousands)
SEGA SAMMY HOLDINGS INC.
KORNAN Co., LTD
Kiyokawa Inc.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation
Japan Trustee Services Bank, Ltd. Trust Account
The Master Trust Bank of Japan, Ltd. Trust Account
Mizuho Bank, Ltd.
Shintaro Tsuji
Estate of Kunihiko Tsuji
Nippon Life Insurance Company
● Transition
Satoru Shimizu
Hidekazu Chimura
Miyuki Okumura
Hideo Yamaguchi
Tomokazu Nakao
Kazuaki Tanimura
Yuko Tsuji
Ratio of
Voting
(%)
9,456
10.7
6,877
7.8
6,691
7.6
3,862
4.4
3,834
4.4
3,191
3.6
2,464
2.8
1,852
2.1
1,812
2.1
1,692
1.9
1,406
1.6
in Share Distribution by Shareholder Category
End of FY2012
As of Mar. 31, 2013
Executive Officers:
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
of shares
Total Number of Shares Authorized to be Issued
Number of shares
(thousands)
Japanese individuals and others
Japanese financial institutions
Financial instruments business operators
Foreign institutions and individuals
General corporations
Total
15,353
25,451
1,139
13,755
33,367
89,065
End of FY2013
As of Mar. 31, 2014
Number of Number of shares Number of
shareholders (thousands) shareholders
30,071
18,416
43,614
51
26,518
62
35
1,651
54
332
14,944
384
251
27,536
413
30,740
89,065
44,527
Share Composition Ratio by Shareholder Category (%)
1.3
2013/3
2014/3
17.2
20.7
28.6
15.4
29.8
16.8
1.8
37.5
30.9