Bellpark Co., Ltd. · TSE:9441
Bellpark — FY2010 Earnings Presentation
41 slides from Bellpark's earnings presentation, Feb 15, 2011
Slide 1: Results of Operations (Year ended December 31, 2010)
Results of Operations (Year ended December 31, 2010) February 15, 2011 Bell-Park Co., Ltd. (Stock code: 9441) http://www.bellpark.co.jp/ http://www.bellpark.co.jp Copyright Bell-Park Co., Ltd
Slide 2: Contents
Contents I. Profile of Bell-Park II. Year ended 2010 December 31 Financial Highlights III. Outlook for the Operating Environment IV. Medium-term Management Policies V. 2011Earnings Plan VI. Shareholder Return 2 http://www.bellpark.co.jp Copyright Bell-Park Co., Ltd
Slide 3: I. Profile of Bell-Park
I. Profile of Bell-Park 3 http://www.bellpark.co.jp Copyright Bell-Park Co., Ltd
Slide 4: Profile of Bell-Park
Profile of Bell-Park Name： Bell-Park Co., Ltd. Business： Mobile phone sales (exclusively for SOFTBANK MOBILE) Founded： February 2, 1993 19th Fiscal year Headquarters： KDX-Hirakawa-cho Building, 1-4-12 Hirakawa-cho, Chiyoda-ku, Tokyo Capital： *¥ 1,129 million Stock listing： JASDAQ (Stock code：9441) s
Slide 5: A Record of Consistent Growth
1. A Record of Consistent Growth (million yen) Bell-Park has grown significantly over the 11-year period since its 2000 IPO. (million yen) 70,000 4,000 Net sales Ordinary income 60,168 3,500 60,000 2,893 Year ended December 31, 2010 3,000 50,000 Net sales up 7.0 x from 2000 2,500 40,000 Ordinary inc
Slide 6: Used M&A Strategy to Grow! 14 Transactions
2. Used M&A Strategy to Grow! 14 Transactions SoftBank Shop Total: 179 Total: 175 +4 Franchise 4 M&A No. 14 M&A No. 13 50 M&A No. 12 50 M&A No. 11 M&A No. 10 1 2 1 M&A No. 9 2 4 directly managed shops 22 M&A No. 8 22 were opened M&A No. 7 3 3 3 ・Aichi：Aeon Mall 3 2 M&A No. 6 2 2 2 3 Aratamabashi 2 3
Slide 7: Number of Shops
3. Number of Shops Sales and earnings have grown along with the number of shops. (Number of shops) Focusing mainly on opening carrier shops to reflect changing market needs. 200 Low-cost shops inside large 4 Exceeded 170 180 shops opened during fast- shops 0 0 growth period solely to serve new subsc
Slide 8: Number of Mobile Phones Sold
4. Number of Mobile Phones Sold (Units) 700,000 Initial plan for the total number of sales in the term ending December 2010 was 560,000 units Total (excluding USIM), which was raised to 600,000 units (including USIM) in the announcement of 630,117 financial statements of the second quarter of 2010.
Slide 9: II. Year ended December 31, 2010 Financial Highlights
II. Year ended December 31, 2010 Financial Highlights 9 http://www.bellpark.co.jp Copyright Bell-Park Co., Ltd
Slide 10: Keep growing with SOFTBANK MOBILE!
Keep growing with SOFBANK MOBILE! SOFTBANK MOBILE that we handle has greatly increased its market share since entering the mobile communications market in 2006. Cumulative Subscriptions at Carriers Net Subscriber Growth by Carriers 70,000,000 7,000,000 Total: 6,443,500 60,000,000 Total: 5,588,800 80
Slide 11: Year ended December 2010 Financial Environment Highlights
Year ended 31 December 2010 Financial Environment Highlights - Mobile Communications Industry There was a net increase of 6.44 million in the cumulative number of subscribers at the four communications carriers, 34.5% more than the net increase of 4.79 million subscribers in the previous fiscal year
Slide 12: 1H 2010 Financial Environment Highlights
1H 2010 Financial Environment Highlights 2010 Jan Feb Mar Apr May Jun iPhone price reduction promotion SOFTBANK MOBILE’s Promotion for upgrading from 2G mobile major phones to 3G handsets Release promotions of iPhone4 White Plan Student with Family Discount 2010 Further enhancement of profitability
Slide 13: 2H 2010 Financial Environment Highlights
2H 2010 Financial Environment Highlights 2010 Jul Aug Sep Oct Nov Dec SOFTBANK Marketing campaign of iPhone4 MOBILE’s major promotions iPad for everybody Further enhancement of Smartphones CS improvement by overhauling the operating procedures and system Training of excellent staff Bell-Park’s major
Slide 14: Financial Highlights - Statements of income
Year ended 31December 2010 Financial Highlights- Statements of income (million yen) Year ended Year ended Year ended Y on Y Achievement 31Dec. 2009 31 Dec. 2010 31 Dec. 2010 ratio change Plan Net sales 46,890 60,168 +28.3% 56,000 107.4% Operating 3,576 2,905 -18.8% 2,800 103.8% income Ordinary 3,550
Slide 15: Summary of Year ended Dec. 31 2010 Financial Results
Summary of Year ended Dec.31 2010 Financial Results (compare to previous fiscal year) (million yen, %) Year ended Dec.31 Year ended Dec. 31 Y on Y change 2009 2010 Remarks Amount Comp. Amount Comp. Amount % 1) Due to M&A‟s full contribution and the strong performances of iPhones and Photo Vision (PV
Slide 16: Number of New-subscriber Sales Product Configuration
Number of New-subscriber Sales Product Configuration Newly released product mix changed significantly 100% 6.4% 3.4% 90% 20.7% 80% 7.8% 70% 60% 50% 90.3% 40% 71.5% 30% 20% 10% 0% Mobile Data card Photo 2009 phone Vision 2010 16 http://www.bellpark.co.jp Copyright Bell-Park Co., Ltd
Slide 17: Changes in Composition of New-subscriber Sales Channels
Changes in Composition of New-subscriber Sales Channels 100% 3.8% 10.8% 8.1% ※ 4.5% *16.0% 18.0% 90% 0.3% 7.5% 8.1% 0.4% 3.4% 80% 1.9% 0.8% 0.1% 0.0% 70% 60% 50% 91.4% 84.0% 40% 80.3% 80.4% 80.1% 30% Agent/GMS sales 20% Corporate sales Bell-park brand shops 10% SoftBank Shops 0% 2006 2007 2008 2009
Slide 18: Quarterly Sales and Operating Income of Recent Three Years
Quarterly Sales and Operating Income of Recent Three Years (million yen) * Non-consolidated basis since 2009 2008 2009 2010 1,227 1,078 914 946 Operating Income 727 509 563 488 537 476 300 174 1Q 2Q 3Q 4Q Number of handsets sold 96,079 Sales to new Sales of replacement 89,879 subscribers handsets 91
Slide 19: Financial Highlights - Balance Sheet
Year ended Dec. 31 2010 Financial Highlights – Balance Sheet (million, %) Dec. 31, Dec. 31, Increase/ Comp. Remarks 2009 2010 (decrease) Total Cash and deposits +163, Trade account 16,978 18,318 +1,339 100.0 assets receivable+557, Inventories +615 Trade account payable+915, accrued 46.8 expenses +44
Slide 20: III. Outlook for the Operating Environment
III. Outlook for the Operating Environment 20 http://www.bellpark.co.jp Copyright Bell-Park Co., Ltd
Slide 21: Outlook for the Operating Environment (1/3)
Outlook for the Operating Environment (1/3) The mobile phone market environment As the number of terminal shipments made within Japan remains at about 33.27million, a new category in the form of smartphones, as well as feature phones (conventional-type terminals) and smart pads, has been created and
Slide 22: Outlook for the Operating Environment (2/3)
Outlook for the Operating Environment (2/3) SoftBank Shop sales agent’s efforts SoftBank Shop rapidly expanded to 2,700 shops, but they were heavily affected by competition among shops and the unclear economic environment, and as a result of being aggregated into major sales agents through shop clos
Slide 23: Outlook for the Operating Environment (3/3)
Outlook for the Operating Environment (3/3) Movement of SoftBank shops (2) The importance of shopping channels is increasing along with customer growth SOFTBANK MOBILE‟s total number of lines now exceeds 24 million, and as their customer numbers increase, their carrier shop channel has become a fron
Slide 24: IV. Medium-term Management Policies
IV. Medium-term Management Policies 24 http://www.bellpark.co.jp Copyright Bell-Park Co., Ltd
Slide 25: Management Policies (1/3)
Management Policies (1/3) Build a high profitable shop network (1) M&A policy during a smartphone boom Number of M & A cases of sales agents handling SOFTBANK MOBILE is estimated to be small this year. ・ SOFTBANK MOBILE, a forerunner of smartphone, will intensify its aggressive strategy. Commission
Slide 26: SoftBank Shops
SoftBank Shops (Shops: Increase in number of shops) (Number of SB shops) 3,000 140 Period of closing uncompetitive shops SB shops 2,665 Increase in 2,521 2,563 +25 2,588 120 number of 2,500 shops 100 2,000 1,925 80 60 1,500 40 1,000 20 0 500 -20 0 -40 Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar
Slide 27: SoftBank Shop's Market Share
SoftBank Shop‟s Market Share In principle, SOFTBANK MOBILE will not approve of new shop openings, and the scope for shop openings is slim. Shops will continue to be selected and integrated in future. (shops) 3,000 2,588 SoftBank shops 2,500 599 shops Others Share: 23.1% 2,000 2,409 shops 1,500 Share
Slide 28: Network Strategy: Locate shops Mainly in the Kanto, Tokai and Kansai areas
Network Strategy: Locate shops Mainly in the Kanto, Tokai and Kansai areas Bell-Park has 179 ‘SoftBank shops’, which handle only the handsets of SOFTBANK MOBILE, in 21 prefectures. About 90% of these shops are in the Tokyo, Nagoya and Osaka areas. (as of the end of December 2010) Shop operation is c
Slide 29: Management Policies: Relocate and remodel shops
Management Policies (1/3) Build a highly profitable shop network (2) Relocate and remodel shops We think that relocation and remodel of shops are essential to increase number of customers leading to increase of total sales. We recognize that the severe economic environment that continuous deflation
Slide 30: Build a highly profitable shop network
Build a highly profitable shop network 2010 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Apple Aeon Fuso The Mall Aeon Mall Premium Aratamabashi SC Sendai Reseller (Aichi) (Aichi) Nagamachi Kichijoji 16 tsubo 26 tsubo (Miyagi) New 26 tsubo shop shop openings Shinjuku (Relocation) (Tokyo) 84 tsubo
Slide 31: Management Policies (2/3)
Management Policies (2/3) Improve the quality of sales and CS (customer satisfaction) We Set “Best Mobile Concierge” as our target for our customers. (1) Sales activities backed by value added consulting services Bell-Park shops will act quickly when new products and services are launched so that sh
Slide 32: Management Policies (3/3)
Management Policies (3/3) Invest in human resources (1) An excellent opportunity to recruit talented people Bell-Park recruited 119 new college graduates 2010 in April, an all-time high. This year, we plan to recruit about 56 new graduates. We will hire outstanding people whether they are new gradua
Slide 33: V. 2011 Earnings Plan
V. 2011 Earnings Plan 33 http://www.bellpark.co.jp Copyright Bell-Park Co., Ltd
Slide 34: 2011 Earnings Plan
2011 Earnings Plan (million yen) First-half earnings plan status of Full-year earnings plan achievement Results of Results of Plan Change Plan Change 2010 2010 Net sales 33,000 28,638 15.2% 72,000 60,168 19.7% Operating income 1,350 1,615 -16.4% 3,300 2,905 13.6% Ordinary income 1,350 1,615 -16.4% 3
Slide 35: Points of the 2011 Earnings Plan
Points of the 2011 Earnings Plan iPhone and iPad, main staple Expected introduction of smartphone and smartpad, which are new mobile phones for the selling season Expected start of new service (data communication by ULTRA SPEED and Outlook on others) No. of Improvement of electric wave units Expansi
Slide 36: 2011 Net Sales and Ordinary Income Forecast
2011 Net Sales and Ordinary Income Forecast (million yen) (million yen) 80,000 4,000 72,000 Net sales Ordinary income 70,000 3,250 3,500 60,168 60,000 3,000 2,893 50,000 2,500 40,000 2,000 30,000 1,500 20,000 1,000 10,000 500 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (Forecast)
Slide 37: VI. Shareholder Returns
VI. Shareholder Returns 37 http://www.bellpark.co.jp Copyright Bell-Park Co., Ltd
Slide 38: Shareholder Returns
Shareholder Returns Dividends Dividend of ¥3,600 per share is expected in the term ending ※ in December 2010, added with commemorative dividend of ¥1.000. Dividend yield is 2.67%. Dividend of ¥2,600 per share is expected in the term ending in December 2011. ※Dividend yield is 1.93%. Special benefit
Slide 39: Changes in share price and turnover
Changes in share price and turnover (10 years) 39 http://www.bellpark.co.jp Copyright Bell-Park Co., Ltd
Slide 40: We strongly believe in our ability potential and the possibilities of the future.
We strongly believe in our ability potential and the possibilities of the future. 40 http://www.bellpark.co.jp Copyright Bell-Park Co., Ltd
Slide 41: Forward-Looking Statements
Forward-Looking Statements All plans, strategies and financial forecasts that are not based on historical facts are forward- looking statements. Such statements are based on the judgment of management in accordance with information available when these materials were prepared. Actual results may dif