TOMY Company, Ltd. TSE Securities Code: 7867

Transcription

1 TOMY Company, Ltd. Company Information TSE Securities Code: 7867

2 Overview of TOMY Company Overview TOMY Company, Ltd. (TOMY) was founded in We have been in business for 90 years. Founding Philosophy: Let s excite the world s markets with our outstanding products. Our sincerity and diligence will contribute to society and lead to our own success and happiness. Business Domains: Toy business : Planning, developing and manufacturing products such as toys, and baby products. Toy-Periphery business: Manufacturing and selling of capsule toys, candy toys and railway models. We are listed on the first section of the Tokyo Stock Exchange and have a market cap of 108 billion as of May 11, 2018 Number of Employees 2,199 (consolidated, Mar 2018) Page 1 Japan North America Europe and Oceania Asia Group Companies T-ARTS TOMY TEC TOMY Marketing Company, Ltd, etc TOMY Holdings TOMY International, etc TOMY Hong Kong TOMY Thailand, etc As of Mar 31, 2018 Number of consolidated subsidiaries: 34 Distribution of Ownership among Shareholders 11.72% 17.58% Ownership Ratio 44.81% 23.87% Individual Investors Financial Institutions Other Corporations Foreign Corporations and Investors As of Mar 31,

3 Overview of TOMY 1,900 1, TOPIC1 TOPIC2 832 TOPIC1 TOPIC2 TOPIC3 TOPIC4 (JPY in billion) 1,856 1,818 1,924 1,805 1, ,594 1,872 1,787 TOPIC5 1,548 1,499 1,630 1,676 1, (4) Net Sales (lef t) Operating Income (right) EBITDA(right) TAKARA was merged into TOMY, and this absorption-type merger resulted in a substantial increase in net sales despite the recording of a large extraordinary loss. Operating income was boosted, not only by a reduction in products with low profitability, but also by hit performances of the Metal Fight Beyblade products for boys and the products related to the Transformers movie, as well as group-wide business restructuring TOPIC3 TOPIC4 TOPIC5 Acquisition of U.S. toy manufacturer RC2 boosted net sales. Conducted solicitation for voluntary retirement and started business structural reforms in response to struggling toy sales in Japan and worsening of overseas business performances. Decision to sell unprofitable video game wholesaler subsidiary (impact on net sales of billion YoY) and to partially withdraw business in China led to the bottoming out of business performance. 2 2

4 Core Toy Brands in Japan In addition to our line-up of many long-standing toy products with stable sales, we continue to create new hit products. Launched in 1970 Tomica Tomica is Japan s first palm-sized diecast toy miniature car based on Japanese vehicles More than 930 kinds of vehicles launched, sold over 600 million pieces. Plarail Plarail is a toy train and plastic truck system based on the actual trains Long-selling product over 50 years since its launch More than 1,370 kinds of trains launched, sold 160 million pieces. Licca Doll Licca is a fashion doll series, celebrating its 50 th anniversary in 2017 (Total sales volume is over 60 million) Using SNS to promote the brand Duel Masters Amusement Machines Railroad models (N gauge) Trading card games highly popular for more than ten years Arcade games for children Main games are Prichan, Pokémon Ga-Olé No.1 share in Japan Wide range of products from rail cars to dioramas 3 3

5 Overseas Core Toy Brands We will further expand sales of toys of Japanese origin, TOMY International toys and baby merchandise Global toys born in Japan More than 500 million products sold Launched over 130 countries around the world Global agriculture vehicle toys Wide range of products line from preschool to high-end replicas The third generation Beyblade launched in million units sold over 80 countries Wide range of products including baby bottles, toddler cups and plates, baby carriages, etc. Age-appropriate baby and infant educational toys Developed with the advice of the infant specialist 4 TOMY International 4

6 Toy-Periphery Products and Strategy Leveraging popular brand content to maximize revenue opportunities Miscellaneous daily goods Books Tomica Shop Amusement Machines Apparel Capsule Toys DVD Page 5 Candy-Toy 5

7 Execute Three Plans Including the Medium-Term Business Strategy Medium-Term Management Plan (FY ) Take on the Challenge toward New Growth Page 6 6

8 Experienced Management, Strong Board Together with our three directors and three Audit & Supervisory Board Members from outside the company, TOMY is committed to reinforced corporate governance Kazuhiro Kojima Appointed as Representative Director & President of TOMY Company, and this marked the start of our new corporate management in January 2018 We introduced a two-person company representative system to promote greater management agility and speed. Kantaro Tomiyama In June 2015, appointed Representative Representative Director & Chairman of TOMY Director & Chairman Over 30 years experience in toy industry Led the merger of TOMY and Takara Performed difficult restructuring initiatives decisively after taking the President role in 1986 Received B.A. in Sociology from the University of Hull in England Grandson of TOMY s founder, Eichiro Tomiyama, and son of former President, Masanari Tomiyama 4inside directors 57% Board Members 7 directors 3 outside directors 43% Kazuhiro Kojima Representative Director, President & COO Appointed as Representative Director & President of TOMY Company, Ltd. in January Graduated from the University of Tokyo and joined Mitsubishi Corporation 2008 Executive Officer of Marunouchi Capital Co., Ltd Outside Director of TOMY Company, Ltd Board Director and Senior Executive Officer 2017 Representative Director, COO & CFO Over 15 years of experience related to venture capital and the buyout business Achievements in creating more efficient production and logistics and in improving businesses in Europe 7 7

9 CSR Activities The TOMY Group takes an original approach to CSR activities that is quite different from other companies. TOMY has a long-term commitment to making advances in these areas. Accessible toys In 1980, TOMY began to develop accessible toys which are products that differently-abled people can use without difficulties. TOMY is an advocate of this initiative and expands the activity not only across the Japanese toy industry but also to other industry and regions. Logo for Accessible Design Toys Eco-toys Raised dot In addition to manufacturing environmentally friendly toys, TOMY intends to help inspire a sense of responsibility for the environment to children, who hold the keys to the future. As an industry leader in this field, TOMY launched its Eco-Toy program in 2011 and started reducing toys made with safe, recycled plastic in July Consequently, the Plarail Eco Straight-Line Rail and Eco Curved Rail products were the first toys to be certified to carry the Eco Mark by the Japan Environment Association. Safety and quality criteria In our global development of products, we ensure our products are safe and high quality not only by complying with the laws and ordinances, and regulatory standards of each country and region, but also by establishing original TOMY Group safety and quality criteria. By ensuring our products adhere to these stricter standards, we aim to prevent accidents from ever occurring. The TOMY Group hold annual meetings attended by all employees for discussions, led by the units in charge of product safety and quality, which are geared toward promoting awareness and understanding of the importance of safety and quality control. Testing being conducted on in-house equipment Regional contribution TOMY concluded an agreement on collaboration and cooperation with Katsushika City, a city steeped in toy history, in July As a company with its headquarters in Katsushika City, TOMY is participating and cooperating in events and other initiatives organized by Katsushika City aimed at social contribution and regional revitalization. These green rails are composed of 50% or more safe recycled materials. 8 A Halloween Parade organized in cooperation with Katsushika City, a local shopping arcade, the police, and the fire department 8

10 This report contains forward-looking statements, targets, plans and strategies for the future. However, these are based on current information and will not guarantee nor warrant any financial estimates or any figures. Therefore, actual results could differ from this report. This is translation on original text in Japanese. TOMY JR 東日本商品化許諾済 JR 西日本商品化許諾済 TM & Wizards of the Coast/Shogakukan/Mitsui-kids 2017 Pokémon Nintendo/Creatures lnc. /GAME FREAK inc. Developed by T-ARTS and MARV Hiro Morita, BBBProject, TV TOKYO TOMY 2016 Pokémon 9