Supplementary Explanation Materials - … 31, 2017 · Company Name: Golf Digest Online Inc....
Transcript of Supplementary Explanation Materials - … 31, 2017 · Company Name: Golf Digest Online Inc....
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Supplementary Explanation Materials Golf Digest Online Inc. (TSE Stock Code :3319) URL:www.golfdigest.co.jp
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The Company’s plans, projections, strategies, etc., stated in these materials are subject to
potential risks and uncertainties excluding elements that have already been confirmed, and
there is no guarantee on their contents.
Potential risks and uncertainties could include, but are not limited to, economic conditions
mainly consisting of personal consumption trends, general trends in the golf market and the
Internet market that are the Group’s main business domain, the status of market
competition, and drastic technological innovations.
Because no consolidated financial statements were prepared in FY2013, non-consolidated
performance is stated in these materials as the business results for FY2013.
Please refrain from unauthorized reproduction of these materials and data.
Notes concerning these materials
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Outline
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Company Name: Golf Digest Online Inc. (GDO) URL: www.golfdigest.co.jp
History: Incorporated on May 1st, 2000 Listed on Mothers, TSE on April 1st, 2004 Listed on 2nd Section, TSE on May 1st, 2015 Listed on 1st Section, TSE on September 07th, 2015 (TSE Stock Code :3319)
President & CEO: Nobuya Ishizaka
Located: 2-10-2 Higashi-gotanda, Shinagawa-ku, Tokyo, Japan
Amount of capital: 1,458 million yen
Number of Employees (Consolidated):
534 (including part-time employees)
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Corporate Profile
(as of June 30, 2017)
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GDO Group Business scheme
Online × Offline
Specialized in golf category / Hybrid of online & offline 『GDO Tricycle Business Model』
Tee Time booking
Retail
Golf Media
training centers
Other channels
Shops
Database
Events
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Golfers in Japan: approx. 5.5 million
Online channel monthly visitors※
5,380,000(116% of 2015)
Physical channel monthly users
470,000(107% of 2015)
GolfTEC by GDO members: 6,000/month
Golfers booked on GDO 460,000/month
Tournament/Events Participants: 1,000/month
※PC + smart phone unique visitors/month
( in 2016)
Enjoy 「GOLF」
Golf Garage Store visitors: 30,000/month
Full support of ecosystem for golfers
DL applications approx.1,670,000
(as of June 30, 2017)
Facebook “like” approx.109,000 (as of June 30, 2017)
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GDO Club Members
GDO Club Members: 60% of golfers in Japan
3.17 million as of June 30, 2017
(millions of persons)
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User Profile
GDO users’ main profile :
■Age Group ■Gender
■Annual Income
(As of June 30, 2017)
Possesses influence over business and high purchasing power as an individual.
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Male : 86% Average age 46、 Over 75% members in 30s thru 50s
Over ¥10.0 million : 24%、 Over ¥8.0 million : 40%
■Average golf score
-Intermediate (average in 90s) : 34% -Core members are aiming for constant : score at 80s
■Occupation
-Company executives/Managers, self-employed : 35%
-Many influencers in business
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Environment surrounding GDO
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Golf course booking:
※Source:「transition of golf courses/users through taxation of golf facility tax (in Oct., 2016)」(by Nihon Golf Keieisha Kyokai)
No. 1 USA 15,047
No. 2 Canada 2,295
No. 3 Japan 2,290
Number of golf courses in the world
※Source: 「Golf around the world 2017」(by Royal and Ancient Golf Club of Saint Andrews/R&A)
Number of golf courses
Number of golf courses: total number in Japan vs available at GDO
Available at GDO to book 90% of golf courses in Japan
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Golf course booking
Visitors booked through GDO (millions of
persons)
Total golf course visitors
(millions of persons)
Number of visitors : Total visitors in Japan vs Visitor through GDO
※Source:「transition of golf courses/users through taxation of golf facility tax (in Oct.,2016)」(by Nihon Golf Keieisha Kyokai)
Share of golf course visitors booked through GDO in total golf course visitors in Japan
in 2003 0.6% → in 2015 5.5%
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※source: golf fee “Specific service business category survey(golf)” by METI (sales and No. of golf course visitors) frequency “Leisure White Paper” (by Japan Productivity Center)
The lower golf fee , the more familiar to golf
Correlation of golf fee and play frequency
golf fee (yen)
frequency
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Golf retail:
※Source:「Leisure White Paper 2016」(by Japan Productivity Center) ※GDO Sales in 2003 is the amount of half year (Jan.-Jun.)
Golf Equipment market
(¥ in billions)
No.1 A company (Mass retailer)
76.0
No.2 B company (Mass retailer)
56.0
No.3 C company (Mass retailer)
20.0
No.4 D company (Mass retailer)
16.0
No.5 GDO 13.3
※data: Estimation by “2016 Golf Industry White Paper” (by Yano Research Institute) and company’s securities report of each company
Golf EC market Sales No.1
(except: brick and mortar stores)
GDO Retail sales
(¥ in billions)
Sales ranking domestic golf retail market Sales : Domestic golf equipment market vs GDO retail
Golf equipment market has certain large share of 20% among sporting goods market in Japan.
(¥ in billions)
Share of domestic golf EC market in domestic golf retail market
in 2003 1.8% → in 2015 12.4%
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Main service
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Sales of golf equipment
Number of Products New : 100,000 items, Used : 30,000 items Brands : 320 brands (domestic & overseas)
Main Services Online sales of golf equipment Purchase and sales of used golf equipment (Online/physical :『Golf Garage』 5 store locations in Tokyo)
Other Yahoo! ® Shopping
Yahoo! ® Auctions
Amazon.co.jp®
Rakuten Ichiba
GDO’s Strengths Overwhelming product lineup which no one can beat Differentiated information capability Providing high quality of service
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Sales of Golf Equipment
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Golf Equipment sales to total sales
approx. 70% In 2016
Gross profit of Golf Equipment to total gross profit
approx.35% In 2016
YoY comparison of order amount
* Golf equipment market (golf clubs, balls, accessories): “Year-on-year comparison of market scale estimated based on sales results of major retail stores handling golf equipment nationwide” calculated by GfK Lifestyle Tracking Japan
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Golf Course Booking
Number of partnering golf courses
Over 2,000 golf courses (including overseas)
Main Services
Golf course reservation (via online & phone & app.)
GDO Premium Club
Organizing tournaments/events
Providing online reservation system for golf courses
GDO’s Strengths
Overwhelming amount of information New product commercialization anticipating
potential needs Providing high quality of service
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Golfers
Revenue Models of Golf Course booking
Golf Course Booking Services
Partnering golf courses
Golf fee
Fees per player × number of players
Provide golf course Booking services
System Sales for Golf Courses
Partnering golf courses
Provide systems Provide ASP Services
Payments
Golf course booking
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Golf Course Booking Service
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Golf Course Booking sales to total sales
approx.25% In 2016
Gross profit of Golf Course Booking to total gross profit
approx.55% In 2016
YoY comparison of customer referrals to golf courses
* Golf equipment market (golf clubs, balls, accessories): “Year-on-year comparison of market scale estimated based on sales results of major retail stores handling golf equipment nationwide” calculated by GfK Lifestyle Tracking Japan
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Golf Media
Viewer ratings in golf category No. 1 in Japan
Main Services
Golf media (News, GDO GOLF Style, Club information)
Advertisements/Marketing service
Mobile service (Free/Pay-per-use service)
GDO Cards
Strategic Alliance Partners
PGA tour (USA), European tour,
Asian tour, Golf Digest Magazine (USA)
GDO’s Strengths
Overwhelming amount of information and high quality of contents
Providing high quality of service Supporting a wide variety of devices
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Broadening the Base of Golfers “GolfTEC by GDO”
Introducing systems and know-how through alliance with GolfTEC, No. 1 golf lesson chain in the U.S.
Studios Roppongi, Ebisu, Ginza, Kanda, Ikebukuro, Ginza ANNEX,
Yokohama Sakuragicho, Shinjuku, Osaka Umeda (『GolfTEC by GDO』 studios : 9 locations in Kanto region & Kansai region)
Main Services
• Swing evaluation • Absolute private lessons • GDO’s custom club fitting
Lesson approach visualizing improvement
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GDO’s Strengths
Differentiated lesson method Providing high quality of service Creating a total Experience Store not limited to
golf lessons
※GOLFTEC - Headquarters : Denver, Colorado - History : since 1995 - Location : more than 175 studios in the U.S., Canada and Korea - Over 25% share in Golf lesson market in the U.S.
Studios of “GOLFTEC by GDO”
GDO’s custom club fitting Service
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Mid-term Plans
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FY2015: The Final Year of the Mid-term Business Plan (2013-2015)
Net sales
Established in May 2000
Listed on TSE
Mothers in Apr. 2004
Operating profit
Changed the fiscal year end
Complete redesign of IT and management
platforms
Establishing the GDO“Tri-business Model”
Invest in the future
Focus on core and regain higher growth
Mid-term business plan (2013-2015)
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Transferred to First Section of
TSE on Sept. 2015
Jul. to Dec.
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¥13.5 billion to ¥14.0 billion
¥14.0 billion
More than 120% of 2013
¥18.0 billion (129% compared to 2013)
* Results for 2013 are non-consolidated 24
Achievement of Targets of the Mid-term Business Plan (2013-2015)
Focus on core and regain growth
- Rebuild core as golf specialty player - Strengthen management resources and
capabilities - Strengthen balance sheet and bottom line
Net sales
Operating profit
¥0.05 billion to ¥0.2 billion
¥0.29 billion
Record sales and profits Grew core audience Listed on first section of TSE
More than ¥0.8 billion
¥0.82 billion
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Mid-term business plan
Leveraging customer assets in combination with alliances
Targeting Asia and the US
Acceleration of growth
Further strengthen our core services
New startup phase “GDO NEXT from Scratch”
Existing business
New businesses
Overseas businesses
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Acceleration of growth
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¥0.23 billion raised during listing on First Section of TSE
Strengthen existing businesses
Sustainable growth
New businesses
Overseas businesses
Aggressive activities aimed at improving corporate value over the mid to long term
Fully leveraging sound balance sheet
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Mid-term business plan
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Mid-term Business Plan (2016-2018)
What is “GDO NEXT from Scratch”
GDO NEXT = Start of second startup phase for GDO
from Scratch = Start from zero base, as well as similar to a scratch handicap golfer, but in GDO’s case, leveraging an entire organization of golf business professionals
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Net sales: Double digit annual average growth rate
Operating profit: Over ¥2.0 billion in 2018
Dividend payout ratio: 20% per annum
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¥0.82 billion Operating profit
¥0.9 billion to ¥1.05 billion
Over ¥2.0 billion
Net sales
¥18.0 billion
¥19.6 billion to ¥20.3 billion
Mid-term Business Plan (2016-2018) financials
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Double digit annual average growth rate
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Performance Outlook for FY2016
(¥ Million)
Theme for the fiscal year ending December 31, 2017: “Adventure”
Thoroughly pursue growth in existing business
Take one step beyond traditional frameworks for further growth of the mid-term business plan = “Adventure”
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YoY
+2,990
(115%)
+126
(112%)
+110
(110%)
+188
(131%)
Dividends per share ¥7.00 ¥9.00 +¥2.00
Profit attributable
to owners of parent611 800
Ordinary profit 1,089 1,200
Operating profit 1,073 1,200
Net Sales 19,309 22,300
FY2016
Actual
FY2017
Outlook
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Shareholder Returns
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Dividend Policy
■Basic Policy of Distribution of Profits To proactively return profits to shareholders while giving consideration to the balance between business performance and internal reserves.
■Dividends ・ Dividends for FY2016
¥7.0 per share
・ Dividends outlook for FY2017
¥9.0 per share (Interim dividend of ¥4.0 and year-end dividend of ¥5.0)
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Financial Information
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Financial Highlights : Consolidated Net Sales
*Results for 2013 are non-consolidated
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(¥ Million)
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Financial Highlights : Consolidated Gross Profit
(¥ Million)
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*Results for 2013 are non-consolidated
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Financial Highlights : SG&A Expenses
(¥ Million)
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*Results for 2013 are non-consolidated
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Financial Highlights : Consolidated Operating Profit
(¥ Million)
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*Results for 2013 are non-consolidated
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Financial Highlights : Profit attributable to owners of parent
(¥ Million)
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*Results for 2013 are non-consolidated
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Financial Highlights : Net Income per Share
*The Company carried out a stock split, at a ratio of 100 shares per share on July 1, 2013. Net income (loss) per share is calculated upon the assumption that the stock split had been carried out at the beginning of FY2011. *Results for 2013 are non-consolidated
(¥)
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