TOMY Company, Ltd. Company Information

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

Transcript of TOMY Company, Ltd. Company Information

Page 1: TOMY Company, Ltd. Company Information

TOMY Company, Ltd.Company InformationCompany Information

TSE Securities Code: 7867

Page 2: TOMY Company, Ltd. Company Information

Overview of TOMY

Company Overview Group Companies

• TOMY Company, Ltd. (TOMY) was founded in As of Mar 31, 2018

Japan T-ARTSTOMY TECTOMY Marketing

• TOMY Company, Ltd. (TOMY) was founded in 1924. We have been in business for 90 years.

• Founding Philosophy:

As of Mar 31, 2018

TOMY Marketing Company, Ltd , etc Number of

consolidated subsidiaries:

34

North America Europe and

TOMY HoldingsTOMY International, etc

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 34Europe and

Oceaniaetc

Asia TOMY Hong KongTOMY Thailand , etc

to society and lead to our own success and happiness.

• Business Domains:

Distribution of Ownership amongShareholders

• Business Domains:

Toy business : Planning, developing and manufacturing products such as toys, and baby products.baby products.

Toy-Periphery business:Manufacturing and selling of capsule toys, candy toys and railway models.

44.81%

17.58%As of Mar 31, 2018

• 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

Ownership Ratio 44.81%

23.87%

11.72%

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• Number of Employees 2,199 (consolidated, Mar 2018)

23.87%Individual InvestorsFinancial InstitutionsOther CorporationsForeign Corporations and Investors

Page 3: TOMY Company, Ltd. Company Information

Overview of TOMY

TOPIC2 TOPIC3TOPIC1 TOPIC4 (JPY in billion)

TOPIC51,856 1,818 1,924 1,805 1,787

1,594

1,872 1,787

1,548 1,4991,630 1,676

1,773

168 162

2231,900

190

TOPIC5

832

60

104 103 10177

131

6079

93 89

145 146168

100115 116

162

111

500

1,200120

4760 50

25 26

6038 33 2444

(4)-200

500

-20

50

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Net Sales (lef t) Operating Income (right) EBITDA(right)

TOPIC1 • 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.

TOPIC1increase in net sales despite the recording of a large extraordinary loss.

TOPIC2 • 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 • Acquisition of U.S. toy manufacturer RC2 boosted net sales.

TOPIC4 • Conducted solicitation for voluntary retirement and started business structural reforms in response to struggling toy sales in Japan and worsening of overseas business performances.

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response to struggling toy sales in Japan and worsening of overseas business performances.

TOPIC5 • Decision to sell unprofitable video game wholesaler subsidiary (impact on net sales of -¥30.7 billion YoY) and to partially withdraw business in China led to the bottoming out of business performance.

Page 4: TOMY Company, Ltd. Company Information

Core Toy Brands in Japan

Tomica Licca DollPlarail

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 is Japan‘s first palm-sized diecast toy miniature car based on Japanese vehicles

Tomica• Plarail is a toy train and plastic truck

system based on the actual trains

• Long-selling product over 50 years since its launch

Licca Doll• Licca is a fashion doll series,

celebrating its 50th anniversary in 2017 (Total sales volume is over 60 million)

• Using SNS to promote the brand

Plarail

Japanese vehicles

• More than 930 kinds of vehicles launched, sold over 600 million pieces.

since its launch

• More than 1,370 kinds of trains launched, sold 160 million pieces.

• Using SNS to promote the brand

Duel Masters Amusement Machines• Arcade games for children

Railroad models (N gauge)• Trading card games highly popular

for more than ten years• No.1 share in Japan

• Wide range of products from rail cars to dioramas

• Arcade games for children

• Main games are Prichan, Pokémon Ga-Olé

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Overseas Core Toy Brands

Global toys born in Japan

We will further expand sales of toys of Japanese origin, TOMY International toys and baby merchandise

• More than 500 million products sold

• Global agriculture vehicle toys

• Wide range of products line from preschool to high-end replicas

Global toys born in Japan

• Launched over 130 countries around the world

• Wide range of products including baby bottles, toddler cups and

• Age-appropriate baby and infant educational toys

• Developed with the advice of the

4 TOMY International

• The third generation Beyblade launched in 2015

• 350 million units sold over 80 countries

baby bottles, toddler cups and plates, baby carriages, etc.

• Developed with the advice of the infant specialist

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Toy-Periphery Products and StrategyLeveraging popular brand content to maximize revenue opportunities

Miscellaneous daily Books

Tomica Shop

Miscellaneous daily goods

Books

Amusement MachinesMachines

Capsule ToysApparel

Page 5DVD Candy-Toy5

Page 7: TOMY Company, Ltd. Company Information

Execute Three Plans Including the Medium-Term Business Strategy

Medium-Term Management Plan (FY2018–2020)

Take on the Challenge toward New Growth

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Page 8: TOMY Company, Ltd. Company Information

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 • 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 TomiyamaRepresentative Director & Chairman

• In June 2015, appointed Representative Director & Chairman of TOMY

• Over 30 years experience in toy industry • Led the merger of TOMY and Takara

agility and speed.

• 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 3 outside

directors4insideUniversity of Hull in England

• Grandson of TOMY’s founder, Eichiro Tomiyama, and son of former President, Masanari Tomiyama

Board Members7 directors

3 outsidedirectors

43%

4insidedirectors

57%

• Appointed as Representative Director & President of TOMY Company, Ltd. in January 2018

• 1983 Graduated from the University of Tokyo and joined Mitsubishi Corporation

• 2008 Executive Officer of Marunouchi Capital Co., Ltd.

Kazuhiro KojimaRepresentative Director,President & COO

• 2008 Executive Officer of Marunouchi Capital Co., Ltd.• 2009 Outside Director of TOMY Company, Ltd.• 2012 Board Director and Senior Executive Officer• 2017 Representative Director, COO & CFO• Over 15 years of experience related to venture capital and

the buyout business

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the buyout business• Achievements in creating more efficient production and

logistics and in improving businesses in Europe

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Page 9: TOMY Company, Ltd. Company Information

CSR ActivitiesThe 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. areas.

Accessible toys Safety and quality criteriaIn our global development of products, we ensure our products are safe and high quality not only by complying with the laws and ordinances, and

In 1980, TOMY began to develop “accessible toys” which are products that differently-abled people can use without difficulties. TOMY is an

Raised dot

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

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

Raised dot 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

Eco-toys

understanding of the importance of safety and quality control.

Testing being conducted on in-house equipment

In addition to manufacturing environmentally friendly toys, TOMY intends Regional contributionto 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 2012. Consequently, the Plarail “Eco

TOMY concluded an agreement on collaboration and cooperation with Katsushika City, a city steeped in toy history, in July 2017. 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

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.

City aimed at social contribution and regional revitalization.

A Halloween Parade

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These “green rails” are composed of 50% or more safe recycled materials.

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A Halloween Parade organized in cooperation with Katsushika City, a local shopping arcade, the police, and the fire department

Page 10: TOMY Company, Ltd. Company Information

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. financial estimates or any figures. Therefore, actual results could differ from this report. This is translation on original text in Japanese.

9© 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. ©1995-2017 Nintendo/Creatures lnc. /GAME FREAK inc. Developed by T-ARTS and MARV ©Hiro Morita, BBBProject, TV TOKYO © TOMY © 2016 Pokémon