playmates toys limited 2017 full year results briefing 5 march...
TRANSCRIPT
![Page 1: Playmates Toys Limited 2017 Full Year Results Briefing 5 March …ir.playmatestoys.com/eng/presentations/pre180305.pdf · 2018-03-06 · Phasing out current iteration of TMNT business](https://reader033.vdocument.in/reader033/viewer/2022042200/5e9f38fa6ba1b242a657638b/html5/thumbnails/1.jpg)
Playmates Toys Limited
2017 Full Year Results Briefing
5 March 2018
![Page 2: Playmates Toys Limited 2017 Full Year Results Briefing 5 March …ir.playmatestoys.com/eng/presentations/pre180305.pdf · 2018-03-06 · Phasing out current iteration of TMNT business](https://reader033.vdocument.in/reader033/viewer/2022042200/5e9f38fa6ba1b242a657638b/html5/thumbnails/2.jpg)
Forward-Looking Statements
2
This presentation and subsequent discussion may contain forward-looking statements with respect to the financial condition, results of operation and business of Playmates Toys Limited. Such forward-looking statements represent expectations or beliefs concerning future events and involve known and unknown risks and uncertainties which could cause actual results, performance or events to differ materially from those expressed or implied in such statements.
![Page 3: Playmates Toys Limited 2017 Full Year Results Briefing 5 March …ir.playmatestoys.com/eng/presentations/pre180305.pdf · 2018-03-06 · Phasing out current iteration of TMNT business](https://reader033.vdocument.in/reader033/viewer/2022042200/5e9f38fa6ba1b242a657638b/html5/thumbnails/3.jpg)
About Playmates Toys
Our Mission
Our Latest Performance
Operating Environment
Our 2017 Results Reflected
Financial Performance
Looking Forward
ContentContent
3
![Page 4: Playmates Toys Limited 2017 Full Year Results Briefing 5 March …ir.playmatestoys.com/eng/presentations/pre180305.pdf · 2018-03-06 · Phasing out current iteration of TMNT business](https://reader033.vdocument.in/reader033/viewer/2022042200/5e9f38fa6ba1b242a657638b/html5/thumbnails/4.jpg)
Founded: 1966
First Group listing: 1984
HKSE#0869 – Playmates Toys Limited
A leading manufacturer of promotional toys
Create, design, market & distribute branded products worldwide
More information – www.playmatestoys.com
About Playmates ToysAbout Playmates Toys
4
![Page 5: Playmates Toys Limited 2017 Full Year Results Briefing 5 March …ir.playmatestoys.com/eng/presentations/pre180305.pdf · 2018-03-06 · Phasing out current iteration of TMNT business](https://reader033.vdocument.in/reader033/viewer/2022042200/5e9f38fa6ba1b242a657638b/html5/thumbnails/5.jpg)
We strive to create superior shareholder
value by selectively investing in proprietary
and licensed brands and delivering quality,
safe, and innovative toys to the consumers
while managing costs prudently to maximize
operational leverage.
Our MissionOur Mission
5
![Page 6: Playmates Toys Limited 2017 Full Year Results Briefing 5 March …ir.playmatestoys.com/eng/presentations/pre180305.pdf · 2018-03-06 · Phasing out current iteration of TMNT business](https://reader033.vdocument.in/reader033/viewer/2022042200/5e9f38fa6ba1b242a657638b/html5/thumbnails/6.jpg)
Our Latest PerformanceOur Latest Performance
6
![Page 7: Playmates Toys Limited 2017 Full Year Results Briefing 5 March …ir.playmatestoys.com/eng/presentations/pre180305.pdf · 2018-03-06 · Phasing out current iteration of TMNT business](https://reader033.vdocument.in/reader033/viewer/2022042200/5e9f38fa6ba1b242a657638b/html5/thumbnails/7.jpg)
Operating EnvironmentOperating Environment
7
During 2017:
NPD reported US retail toy sales slightly increased by 1%*, but Action Figure category recorded a year-over-year decline
Major competitive action adventure brands backed by major movie releases
Several key international markets impacted by strength of US dollar
* Source: The NPD Group/Retail Tracking Services; Dollars, January-December 2017
![Page 8: Playmates Toys Limited 2017 Full Year Results Briefing 5 March …ir.playmatestoys.com/eng/presentations/pre180305.pdf · 2018-03-06 · Phasing out current iteration of TMNT business](https://reader033.vdocument.in/reader033/viewer/2022042200/5e9f38fa6ba1b242a657638b/html5/thumbnails/8.jpg)
Phasing out current iteration of TMNT business in planned transition to launch new iteration in Fall 2018
Ben 10 and Voltron contributed to 2017 revenue
Lower gross profit ratio primarily driven by higher proportion of sales outside U.S. and moderate planned clearance of non-carryforward products
Lower recurring operating expenses: lower marketing, selling & distribution and overhead expenses
Our 2017 Results ReflectedOur 2017 Results Reflected
8
![Page 9: Playmates Toys Limited 2017 Full Year Results Briefing 5 March …ir.playmatestoys.com/eng/presentations/pre180305.pdf · 2018-03-06 · Phasing out current iteration of TMNT business](https://reader033.vdocument.in/reader033/viewer/2022042200/5e9f38fa6ba1b242a657638b/html5/thumbnails/9.jpg)
Income Statement HighlightsHK$ Million 2016 2017 +/-%
Revenue 992.9 758.3 -23.6%
Gross Profit 595.7 411.3 -30.9%
Marketing (220.1) (187.3) -14.9%
Selling & Distribution (68.8) (30.6) -55.5%
Administration (131.6) (119.2) -9.4%
Operating Profit 175.3 74.1 -57.7%
Profit before taxation 176.1 88.5 -49.7%
Income Tax (65.9) (32.8) -50.2%
Net Profit 110.2 55.8 -49.4%
Earnings per Share (HK¢) 9.09 4.63
Dividend per Share (HK¢) 10.00 6.00
Financial PerformanceFinancial Performance
9
![Page 10: Playmates Toys Limited 2017 Full Year Results Briefing 5 March …ir.playmatestoys.com/eng/presentations/pre180305.pdf · 2018-03-06 · Phasing out current iteration of TMNT business](https://reader033.vdocument.in/reader033/viewer/2022042200/5e9f38fa6ba1b242a657638b/html5/thumbnails/10.jpg)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2016 2017
11.1% 7.4%
6.6%4.3
‐0.1%
‐1.9%
13.3%15.7%
6.9%4.0%
22.2%24.7%
40.0%45.8%
Cost of Sales
Marketing
Selling & Distribution
Administration
Others
Income Tax
Net Profit
Revenue: HK$992.9M HK$758.3M10
Margin Analysis
![Page 11: Playmates Toys Limited 2017 Full Year Results Briefing 5 March …ir.playmatestoys.com/eng/presentations/pre180305.pdf · 2018-03-06 · Phasing out current iteration of TMNT business](https://reader033.vdocument.in/reader033/viewer/2022042200/5e9f38fa6ba1b242a657638b/html5/thumbnails/11.jpg)
74.9%
14.5%
4.4%
3.7%1.8%
0.7%
U.S.A. Other Americas Europe Australasia Asia Others
HK$992.9M
2016 2017
11
Revenue Breakdown by Regions
65.4%
6.5%
21.6%
3.1%2.8%
0.7%
HK$758.3M
![Page 12: Playmates Toys Limited 2017 Full Year Results Briefing 5 March …ir.playmatestoys.com/eng/presentations/pre180305.pdf · 2018-03-06 · Phasing out current iteration of TMNT business](https://reader033.vdocument.in/reader033/viewer/2022042200/5e9f38fa6ba1b242a657638b/html5/thumbnails/12.jpg)
12
Balance Sheet Highlights
Inventories 15.2 22.7Trade Receivables 174.8 169.4Cash & Bank Balances 1,006.5 1,021.2Net Current Assets 1,087.3 1,020.2Net Assets 1,126.4 1,064.7
Net Asset per Share (HK$) 0.93 0.89Gearing Ratio 0.0 0.0Current Ratio 6.6 5.3
HK$ Million 31/12/2016 31/12/2017
Financial PerformanceFinancial Performance
![Page 13: Playmates Toys Limited 2017 Full Year Results Briefing 5 March …ir.playmatestoys.com/eng/presentations/pre180305.pdf · 2018-03-06 · Phasing out current iteration of TMNT business](https://reader033.vdocument.in/reader033/viewer/2022042200/5e9f38fa6ba1b242a657638b/html5/thumbnails/13.jpg)
13
Looking ForwardLooking Forward
![Page 14: Playmates Toys Limited 2017 Full Year Results Briefing 5 March …ir.playmatestoys.com/eng/presentations/pre180305.pdf · 2018-03-06 · Phasing out current iteration of TMNT business](https://reader033.vdocument.in/reader033/viewer/2022042200/5e9f38fa6ba1b242a657638b/html5/thumbnails/14.jpg)
Limiting shipments of current TMNT products since late 2017 to prepare for the launch of the next iteration - Rise of the Teenage Mutant Ninja Turtles - in Fall 2018
Continue to develop Ben 10 new products for Fall 2018 and beyond
Monitor performance of Voltron and Mysticonsto determine level of further investment
Actively pursuing selective new opportunities
Looking ForwardLooking Forward
14
![Page 15: Playmates Toys Limited 2017 Full Year Results Briefing 5 March …ir.playmatestoys.com/eng/presentations/pre180305.pdf · 2018-03-06 · Phasing out current iteration of TMNT business](https://reader033.vdocument.in/reader033/viewer/2022042200/5e9f38fa6ba1b242a657638b/html5/thumbnails/15.jpg)
Current iteration of TMNT enjoyed good 5 year run since 2012, with 5 seasons of animated TV show and 2 major movies
Consistently ranked among top selling boy’s action toy brands in key markets
ALL-NEW animated series, Rise of the Teenage Mutant Ninja Turtles, launching in Fall 2018
15
![Page 16: Playmates Toys Limited 2017 Full Year Results Briefing 5 March …ir.playmatestoys.com/eng/presentations/pre180305.pdf · 2018-03-06 · Phasing out current iteration of TMNT business](https://reader033.vdocument.in/reader033/viewer/2022042200/5e9f38fa6ba1b242a657638b/html5/thumbnails/16.jpg)
Playmates all-new Ben 10 toy line commenced shipment in early 2017 and expanded distribution in Fall 2017
Launching Season 2 products in Spring 2018
Continued development of new products for Fall 2018 and beyond.
16
![Page 17: Playmates Toys Limited 2017 Full Year Results Briefing 5 March …ir.playmatestoys.com/eng/presentations/pre180305.pdf · 2018-03-06 · Phasing out current iteration of TMNT business](https://reader033.vdocument.in/reader033/viewer/2022042200/5e9f38fa6ba1b242a657638b/html5/thumbnails/17.jpg)
Thank You!
Playmates Toys Limited