Financial Highlights Q1 Results of FY 2013 (Fiscal year ending March 2014) August 8, : Avex Group Holdings Inc.

Transcription

1 Financial Highlights Q1 Results of FY 2013 (Fiscal year ending March 2014) August 8, : Avex Group Holdings Inc. 1 1

2 Consolidated Results 2 2

3 Q1 FY 2013 Highlights Record high as a quarterly sales. -Consolidated Sales (billions of yen) FY 2011 Q1 FY 2012 Q1 FY 2013 Q1 3 3

4 Q1 FY 2013 Highlights Q1 OP marked an all-time-high. -Operating Income (billions of yen) FY 2011 Q1 FY 2012 Q1 FY 2013 Q1 4 4

5 Revenue Contribution Video and Management/Live Business pushed up overall sales. Others 3% 0.9bn Others 2% 0.8bn Music Management / Live 41% 13.2bn Video 16% 5.1bn Music 40% 12.7bn Management / Live 46% 19.1bn 27% 11.0bn Video 25% 10.1bn FY 2012 Q1 FY 2013 Q1 5 5

6 Segment Results 6 6

7 Music Business Results by Sub-Segment Both physical & digital music went down YoY, due to lesser major releases as well as weak momentum in digital music. Music Package YoY Digital Music Distribution (billions of yen) YoY Sales % % Gross Profit % % GPM 32.3% -3.1pt 45.4% +3.3pt 7 7

8 Video Business Highlights: Number of d-video Subscribers Subscribers of d-video including BeeTV d-video BeeTV (millions of people) showed robust growth Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY 2011 FY 2012 FY Reference: 5.63mn subscribers as of end of July. 8

9 Video Business Highlights: Number of UULA Subscribers UULA subscribers grew steadily as well. (thousands of people) 万人 Mar Apr May 2013 Jun Reference: 596 thousand subscribers as of end of July. 9

10 Video Business Results by Sub-Segment Sales and gross profit of video distribution surged, driven by the subscriber growth. (billions of yen) Video Distribution YoY Video Package YoY Sales % % Gross Profit % % GPM 38.3% -7.1pt 36.7% -9.8pt 10 10

11 Management Live Business Highlights: Number of Concerts Expansion of stadium-class concerts led to a massive increase in attendance. Number of stadium-class concerts already exceed the annual level of last fiscal year. Venue Size FY 2012 Q1 FY 2013 Q1 YoY Stadium class Arena class Hall & Live House class Total Number of audience 0.71mn people 1.05mn people +0.34mn people 11 11

12 Management/Live Business Highlights Sales showed strong growth driven by live acts and merchandising. (billions of yen) Live Concerts YoY Management YoY Sales % % Gross Profit % % GPM 8.1% -3.2pt 32.6% +1.6pt Merchandising YoY Fan Club YoY Sales % % Gross Profit % % GPM 41.1% +3.5pt 35.2% -1.7pt 12 12

13 Earnings Forecast 13 13

14 Revision of Earnings and Dividends Forecast Revise up net profit forecast due to the recording of extraordinary profit*. * Please refer to the press release Announcement of Gain on Sales of Investment Securities announced on July 29 th. Interim 2.1bn 5.1bn (up 3.0bn) Full Year 7.0bn 10.0bn (up 3.0bn) 10 increase in interim dividends forecast due to the upward revision stated above. Interim (up 10) Full Year (up 10) 14 14

15 Reference Data 15 15

16 Q1 Results of FY 2013 (millions of yen) Consolidated Income Statement FY 2012 Q1 FY 2013 Q1 YoY Sales 30,676 39,416 +8,740 COGS 20,386 27,481 +7,095 Gross Profit 10,289 11,935 +1,645 GPM 33.5% 30.3% -3.2pt Personnel Expenses 2,854 3, Advertising Expenses 2,335 2, General Expenses 2,832 3, Total SG&A 8,021 8, Operating Profit 2,268 3, OPM 7.4% 7.6% +0.2pt Recurring Profit 1,867 3,102 +1,234 Net Profit

17 Music Business Income Statement (millions of yen) Music Business FY 2012 Q1 FY 2013 Q1 YoY Sales 12,723 11,056 COGS 8,184 7,418 Gross Profit 4,538 3,638 GPM 35.7% 32.9% Personnel Expenses Advertising Expenses 1,886 1,656 General Expenses Group Management Fee 1,133 1,115 Total SG&A Operating Profit 4, , OPM -1.5% -7.6% -1, pt pt 17 17

18 Music Business: Results by sub-segment Music Package FY 2012 Q1 Sales 7,750 Gross Profit 2,743 GPM 35.4% FY 2013 Q1 6,430 2, % (millions of yen) YoY -1, pt Sales Gross Profit GPM Digital Distribution FY 2012 Q1 FY 2013 Q1 YoY 3,315 2, ,396 1, % 45.4% +3.3pt Music Publishing FY 2012 Q1 FY 2013 Q1 YoY Sales Gross Profit GPM 31.6% 31.3% pt 18

19 Music Business: Results by sub-segment Other Businesses of Music (millions of yen) FY 2012 Q1 FY 2013 Q1 YoY Sales Gross Profit GPM 51.1% 41.8% -9.3pt 19 19

20 Music Business: Indicators Music Business: Indicators M u s i c P a c k a g e M u s i c D o w n l o a d Albums Singles DVD/Blu-ray Discs Featurephone (Ring Tones,Video ringtones) Smartphone (Ring Tones,Video ringtones) Ring-back tones PC Mu-mo Average Price (\) Units (thousands) Average Price (\) Units (thousands) Average Price (\) Units (thousands) Average Price (\) Downloads (thousands) Average Price (\) Downloads (thousands) Average Price (\) Downloads (thousands) Average Price (\) Downloads (thousands) ARPU (\) Subscribers (thousands) FY 2012 Q1 2, ,754 6, , , , , Indicators of music packages represent the titles released in FY2013. Library products are not included. FY 2013 Q1 1, ,013 5, , , , ,

21 Music Business: Key Titles Released in FY2013 Q1 Albums Artist E-girls Lesson 1 Title Copies(thousands) 166 May J. Summer Ballad Covers 131 Artist Singles Title Copies(thousands) EXILE EXILE PRIDE ~Konna Sekai wo Aisurutame ~ TOHOSHINKI OCEAN EXILE Flower Song

22 Video Business Income Statement (millions of yen) Video Business FY 2012 Q1 FY 2013 Q1 YoY Sales 5,121 10,151 +5,029 COGS 2,830 6,335 +3,504 Gross Profit GPM 2, % 3, % +1, pt Personnel Expenses Advertising Expenses General Expenses Group Management Fee Total SG&A , Operating Profit 1,423 2, OPM 27.8% 23.1% -4.7pt 22 22

23 Video Business: Results by sub-segment (millions of yen) Video Distribution FY 2012 Q1 FY 2013 Q1 YoY Sales 3,614 8,296 +4,682 Gross Profit 1,639 3,179 +1,539 GPM 45.4% 38.3% -7.1pt Sales Gross Profit GPM Video Package FY 2012 Q1 FY 2013 Q1 YoY 1,739 2, % 36.7% -9.8pt 23 23

24 Video Business: Indicators Video Business: Indicators FY 2012 Q1 FY 2013 Q1 d-video + BeeTV ARPU (\) Subscribers (thousands) 395 3, ,620 d-video 1,578 4,464 BeeTV 1,589 1,156 UULA ARPU (\) Subscribers (thousands) DVD/Blu-ray Discs Average Price (\) Units (thousands) 4, , Indicators of DVD/Blu-ray Discs represent the titles released in FY2013. Library products are not included

25 Management/Live Business Statement Management/Live Business (millions of yen) FY 2012 Q1 FY 2013 Q1 YoY Sales 13,269 19,100 +5,830 COGS 9,578 14,497 +4,919 Gross Profit 3,691 4, GPM 27.8% 24.1% -3.7pt Personnel Expenses Advertising Expenses General Expenses 976 1, Group Management Fee Total SG&A 2,655 2, Operating Profit 1,036 1, OPM 7.8% 9.0% +1.2pt 25 25

26 Management/Live Business: Results by Segment (millions of yen) Live concerts FY 2012 Q1 FY 2013 Q1 YoY Sales 8,141 12,478 +4,336 Gross Profit 919 1, GPM 11.3% 8.1% -3.2pt Sales Gross Profit GPM Management FY 2012 Q1 FY 2013 Q1 YoY 3,494 4, ,083 1, % 32.6% +1.6pt Sales Gross Profit GPM Merchandising FY 2012 Q1 FY 2013 Q1 YoY 3,048 4,586 +1,538 1,145 1, % 41.1% pt 26

27 Management & Live Business: Results by Segment (millions of yen) Fan Club FY 2012 Q1 FY 2013 Q1 YoY Sales Gross Profit GPM 36.9% 35.2% -1.7pt Others FY 2012 Q1 FY 2013 Q1 YoY Sales Gross Profit GPM 30.5% 22.9% -7.6pt Concert Ticket Fan Club Management & Live Business: Indicators FY 2012 Q1 FY 2013 Q1 Average Price (\) 8,782 9,412 Subscribers(thousands) 904 1,

28 Other Business Statement Other Business (millions of yen) FY 2012 Q1 FY 2013 Q1 YoY Sales COGS Gross Profit GPM 56.7% 60.2% +3.5pt Personnel Expenses Advertising Expenses General Expenses Group Management Fee Total SG&A Operating Profit OPM 0.1% -22.4% -22.5pt 28 28

29 Balance Sheet Balance Sheet (millions of yen) Current Assets Cash Equivalents Notes & Accounts Receivable Inventories Deferred Tax Assets Others Fixed Assets Tangible & Intangible Fixed Assets Total Investments & Others Investment Securities Others Total Assets 2013 End of Mar. 54,004 17,974 18,058 5, End of June 48,950 12,372 17,728 13,889 Others 1,402 1, , ,834 Current Liabilities Notes & Accounts Payable Short-term Debt Accured Royalties Allowance for Returned Goods Others 4,487 7,425 26,759 29,105 54,752 57,883 Fixed Liabilities 6,507 6,925 40,862 40,923 Long-term Debt Total Liabilities Total Shareholders Equity Total Liabilities & S/H Equity 2013 End of Mar End of June 13,006 9,752 7,852 6,354 7,619 6,081 5,070 16,959 53,369 50,269 1,885 1,402 4,098 3,927 2,840 2,344 3,666 4,580 12,487 15,339 59,877 57,194 48,878 49, , ,

30 Revision of Forecast (millions of yen) FY 2013 Interim Previous Forecast Revised Forecast YoY Sales 77,909 77,909 - Operating Profit 5,525 5,525 - Recurring Profit 5,472 5,472 - Net Profit 2,194 5,194 +3,000 Previous Forecast FY 2013 Full Year Revised Forecast YoY Sales 161, ,000 - Operating Profit 15,600 15,600 - Recurring Profit 15,625 15,625 - Net Profit 7,000 10,000 +3,

31 Forward-looking Statements Strategies, plans, outlooks contained herein are based on information currently available. Actual performance may differ from our expectations. Factors that could cause such difference include changes in the business environment and events that would possibly happen in the future. Inquiries Avex Group Holdings Inc. Stocks & IR Division