Company name: Listed Stock Exchange: TSE 1Sanrio Company, Ltd.
Transcript of Company name: Listed Stock Exchange: TSE 1Sanrio Company, Ltd.
July 31, 2015
Summary of Financial Results for the First Quarter of Fiscal Year Ending March 31, 2016 (FY2015)
(Three Months Ended June 30, 2015)
[Japanese GAAP]
Company name: Sanrio Company, Ltd. Listed Stock Exchange: TSE 1st Section
Stock code: 8136 URL: http://www.sanrio.co.jp/english/corporate/ir/
Representative: Shintaro Tsuji, President and Chief Executive Officer
Inquiries: Susumu Emori, Managing Director TEL: +81-3-3779-8058
Scheduled date of filing of Quarterly Report: August 14, 2015
Starting date of dividend payment: -
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting: None
Note: The original disclosure in Japanese was released on July 31, 2015 at 16:00 (GMT +9).
(All amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results for the First Quarter of FY2015 (April 1, 2015 – June 30, 2015)
(1) Consolidated results of operations (Percentages represent year-on-year changes)
Sales Operating Profit Ordinary Profit Net Profit Attributable
to Owners of Parent
Millions of yen % Millions of yen % Millions of yen % Millions of yen %
Three months ended Jun. 30, 2015 17,049 (5.2) 3,469 (19.6) 3,623 (15.5) 2,806 0.0
Three months ended Jun. 30, 2014 17,994 4.4 4,316 (7.7) 4,288 3.8 2,805 6.5
Note: Comprehensive income (millions of yen) Three months ended Jun. 30, 2015: 968 (down 57.9%)
Three months ended Jun. 30, 2014: 2,299 (down 51.4%)
Net Profit per Share Fully-Diluted Net Profit per Share
Yen Yen
Three months ended Jun. 30, 2015 32.21 -
Three months ended Jun. 30, 2014 31.92 -
(2) Consolidated financial position
Total Assets Net Assets Equity Ratio
Millions of yen Millions of yen %
As of Jun. 30, 2015 117,856 63,885 54.0
As of Mar. 31, 2015 122,124 66,269 54.0
Reference: Shareholders’ equity (millions of yen) As of Jun. 30, 2015: 63,586 As of Mar. 31, 2015: 65,981
2. Dividends
Dividend per Share
1Q-end 2Q-end 3Q-end Year-end Total
Yen Yen Yen Yen Yen
FY2014 - 40.00 - 40.00 80.00
FY2015 -
FY2015 (forecast) 40.00 - 40.00 80.00
Note: Revisions to the most recently announced dividend forecast: None
3. Consolidated Forecasts for FY2015 (April 1, 2015 – March 31, 2016)
(Percentages represent year-on-year changes)
Sales Operating Profit Ordinary Profit Net Profit Attributable to Owners of Parent
Net Profit per Share
Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen
First half 35,600 0.2 7,400 (12.6) 7,400 (18.0) 5,000 (17.3) 57.81
Full year 75,400 1.1 17,000 (2.7) 17,100 (7.7) 11,500 (10.2) 134.14
Note: Revisions to the most recently announced consolidated forecasts: None
* Notes
(1) Changes in consolidated subsidiaries during the period (changes in scope of consolidation): None
Newly added: - Excluded: -
(2) Application of special accounting methods for presenting quarterly consolidated financial statements: None
(3) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others: Yes
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: None
4) Restatements: None
(4) Number of outstanding shares (common stock)
1) Number of outstanding shares at the end of period (including treasury stock)
As of Jun. 30, 2015: 89,065,301 shares As of Mar. 31, 2015: 89,065,301 shares
2) Number of shares of treasury stock at the end of period
As of Jun. 30, 2015: 1,911,639 shares As of Mar. 31, 2015: 1,911,534 shares
3) Average number of shares outstanding during the period
Three months ended Jun. 30, 2015: 87,153,731 shares Three months ended Jun. 30, 2014: 87,904,011 shares
Note 1: Information regarding the implementation of quarterly review procedures
The current quarterly financial statements in this summary are exempted from quarterly review procedures based on the
Financial Instruments and Exchange Act. At the time of disclosure of this report, the review procedures for these quarterly
financial statements have not been completed.
Note 2: Cautionary statement with respect to forward-looking statements and other special items
Forecasts regarding future performance in these materials are based on assumptions judged to be valid and information
currently available to the Company. These materials are not promises by the Company regarding future performance. Actual
results may differ significantly from these forecasts for a number of factors. Please refer to “1. Qualitative Information on
Quarterly Consolidated Financial Performance, (3) Qualitative information regarding forecasts for consolidated business
results” on page 5 of the attachments for forecast assumptions and notes of caution for usage.
Forecasts for the first half and full year net profit per share are calculated by taking into account the increase in the number of
shares of treasury stock as a result of the tender offer as shown in “Subsequent Events” on page 12.
Sanrio Company, Ltd. (8136) Financial Results for the First Quarter of FY2015
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Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance 2
(1) Qualitative information regarding consolidated business results 2
(2) Qualitative information regarding consolidated financial position 5
(3) Qualitative information regarding forecasts for consolidated business results 5
2. Matters Related to Summary Information (Notes) 6
(1) Changes in consolidated subsidiaries during the period 6
(2) Application of special accounting methods for presenting quarterly consolidated financial statements 6
(3) Changes in accounting policies and accounting-based estimates, and restatements 6
3. Quarterly Consolidated Financial Statements 7
(1) Consolidated Balance Sheets 7
(2) Consolidated Income Statements and Consolidated Comprehensive Income Statements 9
Consolidated Income Statements 9
Consolidated Comprehensive Income Statements 10
(3) Notes to Quarterly Consolidated Financial Statements 11
Going Concern Assumption 11
Significant Changes in Shareholders’ Equity 11
Segment and Other Information 11
Subsequent Events 12
Sanrio Company, Ltd. (8136) Financial Results for the First Quarter of FY2015
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1. Qualitative Information on Quarterly Consolidated Financial Performance
(1) Qualitative information regarding consolidated business results
During the first quarter under review (overseas: January 1 to March 31, 2015; within Japan: April 1 to June 30,
2015), the global economy performed as follows. In North America the economy slowed due to sluggish
consumption resulting from a cold snap at the start of the 2015 (as also happened the previous year) and a port strike
on the west coast turning real GDP negative for the first time in a year. In Europe, cheap oil prices from the latter
half of 2014 led to a rise in consumer spending and a mild recovery ensued.
The economic growth slowed in China, but a rally in final consumption expenditure supported its economy.
Meanwhile, some of the emerging countries show signs of recovery but generally the slowdown and stagnation
continued.
The Japanese economy saw higher sales in the retail sector from the effect of foreign tourists but generally remained
sluggish due to such factors as a predicted fall in consumer spending to below the level for the previous first quarter.
Strong performances from Asian countries, especially China, were unable to cover the shortfall in product licensing
income from the poorly performing regions of the United States and Europe. As a result, sales fell 5.2% year-on-year
to 17 billion yen in the first quarter of the current fiscal year, and operating profit was 3.4 billion yen, a year-on-year
fall of 19.6%.
Ordinary profit fell, but the decline was limited to 15.5% year-on-year, to 3.6 billion yen because of the
improvement in foreign exchange gain. The Group gained 300 million yen on sales of investment securities amid a
buoyant stock market. Income taxes payable fell overall due to a decline of net profit before income taxes and other
adjustments in the United States and Europe, where tax rates are high, more than offsetting a rise in Asia, where they
are low. Net profit attributable to owners of parent remained at 2.8 billion yen, the same level as in the previous first
quarter.
Amid these conditions, strong showings in the domestic market derived from sales to foreign tourists and the
popularity of the new characters Gudetama, Kirimi-chan, and Show by Rock!!, which both rose sharply. Further
profit is expected from these areas from the second quarter onward.
Furthermore, since the accounting period for all overseas consolidated subsidiaries runs from January to December,
the first quarter under review for these subsidiaries covers the period from January to March 2015.
Reportable Segment (100 millions of yen)
Sales Segment profit (operating profit)
First three months of FY2014 FY2015 Increase/
decrease Change % FY2014 FY2015
Increase/
decrease Change %
Japan
Product sales/others 88 83 (4) (5.5)%
26 22 (4) (15.4)% Royalties 20 22 1 8.5%
Total 109 106 (3) (2.9)%
Europe
Product sales/others 0 0 (0) (54.6)%
6 4 (2) (31.1)% Royalties 21 17 (3) (16.2)%
Total 21 17 (3) (17.0)%
North
America
Product sales/others 4 3 (1) (27.0)%
6 2 (4) (59.9)% Royalties 20 13 (7) (36.7)%
Total 24 16 (8) (35.0)%
Latin
America
Product sales/others 0 0 0 207.2%
1 1 (0) (40.4)% Royalties 4 3 (1) (28.5)%
Total 4 3 (1) (27.1)%
Asia
Product sales/others 4 6 2 61.1%
6 8 2 43.2% Royalties 14 19 4 33.6%
Total 18 26 7 39.7%
Adjustment - - - - (4) (4) (0) -
Consolidated
Product sales/others 97 94 (3) (3.8)%
43 34 (8) (19.6)% Royalties 82 76 (5) (6.9)%
Total 179 170 (9) (5.2)%
Sanrio Company, Ltd. (8136) Financial Results for the First Quarter of FY2015
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Note: Regional subsidiaries overseas pay the amount of royalties commensurate as the cost of sales while the Japanese parent
company (the copyright holder) calculates this income as sales. Because consolidated transactions are eliminated, however,
these are not included in Japan’s sales figures as stated above (although included in operating profit).
Further, the above sales figures are “sales to customers,” and the inter-segment sales, which are not limited to the
above-mentioned royalties, are eliminated as internal transaction sales.
i. Japan: Sales fell 2.9% year-on-year to 10.6 billion yen and operating profit fell 15.4% to 2.2 billion yen
The main reason for the fall in sales and profits is that event sales in convenience stores of the “other business”
category were transferred to the second quarter and beyond. Meanwhile, digital content sales were doubled as
Gudetama-related items performed well.
In the domestic licensing business, there were strong sales for goods aimed at tourists visiting from overseas such as
the Cheki instant camera, as well as product licenses for the Post Office’s promotional goods, and cosmetic goods
including facial cleansers and powders. Additionally, new licensees for Gudetama and animated broadcasts of Show
by Rock!!, which started from April, have been acquired and numbers have expanded through cafés and other
promotional licenses.
In the domestic product sales business, strong sales were achieved mainly at city center stores as overseas tourist
numbers rose. The licensed products Cheki and Wet Tissue Die-Cut Cases performed well. Regarding characters,
Gudetama proved popular with a wide range of age groups and character collaboration products with Hello Kitty and
The Very Hungry Caterpillar, sold chiefly at department stores, became popular as gifts. Sales in regional and
suburban areas that have been struggling since the previous fiscal year are also recovering gradually. As a result,
same-store sales (based on directly owned stores and directly operated shops within department stores) performed at
105.1% of the previous year’s level.
Regarding initiatives for the thriving inbound tourist market, we are aiming to expand the number of duty-free stores
from the current figure of 15 and continue to secure the market while increasing the lineup of Japanese-made
products. Regarding store initiatives, the opening of a Little Twin Stars (Kiki and Lala) specialist store named “Kiki
and Lala—Yumeseiun Omoiyariboshi” (“The Star of Compassion in the Galaxy of Dreams”) in Osaka’s Lucua 1100
early April and a store on the ladies’ fashion floor of the Daimaru Umeda. In July, large scale street-side store Sanrio
Gallery Kyoto Store was opened in Kyoto. We will continue initiatives to attract new customers.
In the theme parks business, at Harmony Land in Oita prefecture, visitor numbers rose by 12,000, or 16.7%,
year-on-year to 87,000. The roof facility in the parade area neutralized the impact of unseasonal weather during the
period under review (10 days more rain fell than during the same period of the previous year), especially for
kindergarten and preschool groups. Costs increased due to stronger publicity accompanying an expansion of
business areas and depreciation with other expenses accompanying the roof and parade renewal, leading to a slightly
raised operating loss. Looking to the summer season, we aim to improve profitability over the full year by
comprehensively publicizing the roof facility and endeavoring to attract new customer groups from the Miyazaki
and Kitakyushu areas due to the extension of the East Kyushu Expressway.
At Sanrio Puroland in Tokyo’s Tama City, visitor numbers rose by 48,000, or 31.3%, year-on-year to a total of
202,000 due to the popularity of My Melody’s 40th anniversary parade and other events, which started in January
2015, and events such as dress-up, zombie, and TV celebrity fan meets. This rise, combined with limiting the selling,
general, and administrative costs to the previous year’s level, led to a great improvement in the operating loss
figures. Among theme parks business overall, visitor numbers rose by 60,000, or 26.5%, year-on-year to 289,000
and sales rose 21.7% year-on-year to 1.4 billion yen while the operating loss improved by 100 million yen to a total
of 100 million yen.
ii. Europe: Sales fell 17.0% year-on-year to 1.7 billion yen and operating profit fell 31.1% to 0.4 billion yen
The fall in sales in the key Western European nations exceeded the rise in Eastern Europe, the Middle East, and
other regions. In terms of product category, sales rose for foods but fell for the mainstay apparel, toys, and
household supplies. As part of the marketing drive, Hello Kitty took on the role of Japanese ambassador for the 2015
Milan Expo, made guest appearances at concerts of famous musicians, and featured in wrapping to the subway and
other public facilities. By increasing Hello Kitty’s exposure in such ways, the Group aims to increase the penetration
of character brands with the aim of bottoming out during this fiscal year in line with the initial budget.
Sanrio Company, Ltd. (8136) Financial Results for the First Quarter of FY2015
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iii. North America: Sales fell 35.0% year-on-year to 1.6 billion yen and operating profit fell 59.9% to 0.2 billion yen
In the United States, product license sales fell amid sluggish retail sales due to a second successive year of record
cold waves and increasingly fierce competition. Additionally, selling, general, and administrative expenses rose for
new forms of marketing including cafés and live shows, which caused profits to fall sharply. By category, sales fell
for the leading types of apparel, toys, and accessories. For future initiatives, we will raise brand recognition for
Gudetama, My Melody, and Little Twin Stars and promote multi-character strategies.
iv. Latin America: Sales fell 27.1% year-on-year to 0.3 billion yen and operating profit fell 40.4% to 0.1 billion yen
Sales and profits fell in Latin America due to an economic downturn across the whole region. By category, apparel,
shoes, and bags performed poorly. As future initiatives, the Group aims to acquire new category licenses such as
baby goods and to expand product license categories while holding events among general consumers to increase
character recognition and grow sales by acquiring corporate promotional licenses.
v. Asia: Sales rose 39.7% year-on-year to 2.6 billion yen and operating profit rose 43.2% to 0.8 billion yen
In Asia, sales and profits rose in Hong Kong, China, and Taiwan while sales rose alongside falling profits in South
Korea.
In Hong Kong, product sales fell due to the partial transfer of Chinese-manufactured export sales to the Shanghai
subsidiary while sales of product license also fell as tourism from the Chinese mainland diminished and
consumption slowed. Nonetheless, novelty goods were adopted at fast food chains and corporate promotion sales at
cafés and events performed well. Regarding other regions, sales fell in Thailand, which had special orders for
financial institutions last year, while in Singapore and Malaysia sales promotions for post offices did well, leading to
a rise in sales.
In Taiwan, Gudetama proved very popular, and the adopting of My Melody and Little Twin Stars for large-scale
convenience store campaigns increased performances. By category, household supplies, health and beauty goods,
and toys expanded.
In China, the number of product categories rose and license sales performed well as master licensee KTL (Hong
Kong’s Li & Fung group) increased its sub-licensee numbers threefold. In particular, licensees for pure gold
accessories continued to grow, and expansion occurred over a wide range of categories including apparel, household
supplies, foods, and shoes. Moreover, the Group has been steadily cultivating new license fields including cafés and
karaoke shops.
In South Korea, sales rose despite a worsening consumption environment including a continuing year-on-year slump
in store sales among volume retailers. By category, shoe sales suffered due to reasons including the transfer to
volume retailers’ private brand policy but sales rose for consumer electronics, toys, and foods. The Group is aiming
to expand sales channels through strengthening sales capabilities.
Sanrio Company, Ltd. (8136) Financial Results for the First Quarter of FY2015
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Reference:
Sales and operating profit by overseas subsidiary (local currency before consolidation eliminations on an unconsolidated basis)
(Unit: thousand) Sales
Operating profit Royalties Product sales Total
Germany (EUR) 11,523 159 11,682 2,756
Year-on-year change (%) (16.4) (48.7) (17.1) (38.6)
Britain (GBP) 1,890 36 1,926 508
Year-on-year change (%) 87.9 29.8 86.3 205.6
North America (USD) 10,981 2,691 13,671 2,349
Year-on-year change (%) (45.3) (36.3) (43.7) (65.3)
Brazil (BRL) 8,577 27 8,604 2,432
Year-on-year change (%) (23.1) (59.7) (23.3) (40.5)
Chile (Peso) - 41,288 41,288 36,150
Year-on-year change (%) - 137.2 137.2 141.7
Hong Kong (HKD) 27,678 40,026 67,705 15,884
Year-on-year change (%) (7.2) (38.7) (28.8) 9.9
Taiwan (NTD) 110,682 12,441 123,122 40,504
Year-on-year change (%) 12.6 78.3 16.9 17.8
South Korea (KRW) 2,574,481 678,762 3,253,243 1,075,896
Year-on-year change (%) (17.6) 236.2 (2.2) (18.4)
Shanghai (CNY) 38,098 22,932 61,030 18,636
Year-on-year change (%) 45.9 2585.4 126.3 74.9
(2) Qualitative information regarding consolidated financial position
At the end of the first quarter of the current fiscal year, total assets stood at 117.8 billion yen, a decrease of 4.2
billion yen from the end of the previous fiscal year. The main increasing factor was investments securities of 3
billion yen. The main decreases were 3.1 billion yen in cash and deposit, 1.8 billion yen in trade notes and accounts
receivable, and 1 billion yen in other under investments and other assets.
Liabilities decreased 1.8 billion yen to 53.9 billion yen. The main decreasing factor was accrued income taxes of 1.6
billion yen. The net assets section posted a decrease of 2.3 billion yen to 63.8 billion yen. There were increases of
2.8 billion yen in retained earnings from net profit attributable to owners of parent, and 0.6 billion yen in net
unrealized gain on other securities. On the other hand, there were decreases of 3.4 billion yen in retained earnings
due to dividend payments, and 2.5 billion yen in foreign currency translation adjustments. The equity ratio was
54.0%, the same as at the end of the previous fiscal year.
(3) Qualitative information regarding forecasts for consolidated business results
As stated above, in the first-quarter results we anticipate sales from signs of recovery in Europe, profits from new
characters in North America, and ongoing growth in Asia. In Japan, performance is expected to improve as we
foresee profits from animated broadcasts of Show By Rock!! and the number of foreign tourists is rising sustainably.
Nevertheless, we cannot guarantee that these factors will be reflected in the figures, and in the Japanese economy
overall, the movement of consumer spending remains uncertain due to such factors as rising prices for imported
products caused by the weak yen. Accordingly, we have decided to leave unchanged the first-half and full-year
forecasts released on May 15, 2015.
Sanrio Company, Ltd. (8136) Financial Results for the First Quarter of FY2015
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Reference: Overseas Sales and Profits for the Past Three-month Periods by Area (Millions of yen)
Sales to customers Operating profit
Three months
ended
Areas
Jun. 2013 Jun. 2014
Jun. 2015
Jun. 2013 Jun. 2014
Jun. 2015
Change
(%)
Change
(%)
Change
(%)
Change
(%)
North
America U.S.A. 2,490 2,499 0.4 1,625 (35.0) 907 699 (22.9) 280 (59.9)
Latin
America Brazil/Chile 521 494 (5.3) 360 (27.1) 154 181 17.6 108 (40.4)
Asia
Hong Kong 896 776 (13.4) 1,020 31.4 160 192 19.4 257 33.7
Taiwan 281 343 22.0 439 27.9 71 117 64.5 153 30.9
South Korea 274 322 17.6 351 9.0 120 127 6.5 117 (8.4)
China 284 440 54.6 818 85.9 117 180 53.9 357 97.9
Subtotal 1,737 1,882 8.4 2,630 39.7 469 618 31.6 885 43.2
Europe Germany 1,979 1,992 0.6 1,586 (20.3) 613 634 3.4 375 (40.9)
Britain 166 169 1.5 206 22.0 50 38 (24.1) 88 132.2
Subtotal 2,146 2,161 0.7 1,793 (17.0) 664 673 1.3 463 (31.1)
Total 6,896 7,038 2.1 6,409 (8.9) 2,195 2,172 (1.0) 1,738 (20.0)
2. Matters Related to Summary Information (Notes)
(1) Changes in consolidated subsidiaries during the period
Not applicable.
(2) Application of special accounting methods for presenting quarterly consolidated financial statements
Not applicable.
(3) Changes in accounting policies and accounting-based estimates, and restatements
Changes in Accounting Policies
Effective from the first quarter of the current fiscal year, the Company has adopted the “Accounting Standard for
Business Combinations” (Accounting Standards Board of Japan (ASBJ) Statement No. 21, September 13, 2013),
“Accounting Standard for Consolidated Financial Statements” (ASBJ Statement No. 22, September 13, 2013),
“Accounting Standard for Business Divestitures” (ASBJ Statement No. 7, September 13, 2013) and other standards.
In association with these changes, the presentation of net income has been revised and the minority interests item
has been renamed non-controlling interests. For consistency with these changes, the consolidated financial
statements for the first quarter of the previous fiscal year and the previous fiscal year have been revised.
Sanrio Company, Ltd. (8136) Financial Results for the First Quarter of FY2015
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3. Quarterly Consolidated Financial Statements
(1) Consolidated Balance Sheets
(Millions of yen)
FY2014
(As of Mar. 31, 2015)
First quarter of FY2015
(As of Jun. 30, 2015)
Assets
Current assets
Cash and deposit 54,816 51,697
Trade notes and accounts receivable 11,567 9,738
Merchandise and finished goods 3,734 3,381
Work in process 24 25
Raw materials and supplies 158 172
Other accounts receivable 1,947 1,523
Other 2,196 2,109
Allowance for doubtful accounts (133) (119)
Total current assets 74,311 68,528
Fixed assets
Tangible fixed assets
Buildings and structures, net 7,137 6,936
Land 10,009 9,984
Other, net 1,745 1,682
Total tangible fixed assets 18,891 18,602
Intangible fixed assets 5,254 5,439
Investments and other assets
Investments securities 11,153 14,230
Deferred tax assets 3,018 2,560
Other 11,560 10,512
Allowance for doubtful accounts (2,162) (2,103)
Total investments and other assets 23,569 25,199
Total fixed assets 47,714 49,241
Deferred assets 97 85
Total assets 122,124 117,856
Liabilities
Current liabilities
Trade notes and accounts payable 4,821 4,089
Short-term borrowings 8,380 8,762
Accrued income taxes 2,715 1,068
Allowance for bonuses 483 741
Reserve for adjustment of returned goods 41 37
Other 12,931 13,156
Total current liabilities 29,373 27,854
Long-term liabilities
Corporate bonds 5,694 5,114
Long-term borrowings 8,567 9,229
Reserve for retirement benefits for directors 414 -
Provision for loss on guarantees 14 8
Net defined benefit liability 9,435 9,054
Other 2,355 2,709
Total long-term liabilities 26,481 26,115
Total liabilities 55,855 53,970
Sanrio Company, Ltd. (8136) Financial Results for the First Quarter of FY2015
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(Millions of yen)
FY2014
(As of Mar. 31, 2015)
First quarter of FY2015
(As of Jun. 30, 2015)
Net assets
Shareholders’ equity
Capital 10,000 10,000
Capital surplus 3,423 3,423
Retained earnings 53,087 52,542
Treasury stock (4,800) (4,800)
Total shareholder’s equity 61,710 61,165
Accumulated other comprehensive income
Net unrealized gain (loss) on other securities 1,145 1,804
Deferred hedge gain (loss) 13 7
Foreign currency translation adjustments 5,643 3,047
Remeasurements of defined benefit plans (2,531) (2,438)
Total accumulated other comprehensive income 4,270 2,420
Stock acquisition rights 165 165
Non-controlling interests 121 133
Total net assets 66,269 63,885
Total liabilities and net assets 122,124 117,856
Sanrio Company, Ltd. (8136) Financial Results for the First Quarter of FY2015
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(2) Consolidated Income Statements and Consolidated Comprehensive Income Statements
Consolidated Income Statements
(For the Three-month Period)
(Millions of yen)
First three months of FY2014
(Apr. 1, 2014 – Jun. 30, 2014)
First three months of FY2015
(Apr. 1, 2015 – Jun. 30, 2015)
Sales 17,994 17,049
Cost of sales 5,968 5,519
Gross profit 12,025 11,530
Reversal from reserve for adjustment of returned goods 9 4
Net gross profit on sales 12,034 11,534
Selling, general and administrative expenses 7,717 8,064
Operating profit 4,316 3,469
Non-operating profit
Interest income 98 106
Dividend income 27 45
Other income 43 120
Total non-operating profit 169 273
Non-operating expenses
Interest expense 78 70
Foreign exchange loss 55 -
Listing expenses 28 31
Other 35 17
Total non-operating expenses 198 119
Ordinary profit 4,288 3,623
Extraordinary gains
Gain on sales of fixed assets 0 0
Gain on sales of investment securities 10 362
Total extraordinary gains 10 363
Extraordinary losses
Loss on disposal of fixed assets 0 6
Total extraordinary losses 0 6
Net profit before income taxes and other adjustments 4,297 3,980
Income taxes – current 1,205 960
Income taxes – deferred 277 202
Total income taxes 1,483 1,162
Net profit 2,814 2,817
Net profit attributable to non-controlling interests 8 10
Net profit attributable to owners of parent 2,805 2,806
Sanrio Company, Ltd. (8136) Financial Results for the First Quarter of FY2015
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Consolidated Comprehensive Income Statements
(For the Three-month Period)
(Millions of yen)
First three months of FY2014
(Apr. 1, 2014 – Jun. 30, 2014)
First three months of FY2015
(Apr. 1, 2015 – Jun. 30, 2015)
Net profit 2,814 2,817
Other comprehensive income
Net unrealized gain (loss) on other securities 334 658
Deferred hedge gain (loss) (17) (6)
Foreign currency translation adjustments (911) (2,594)
Remeasurements of defined benefit plans, net of tax 79 92
Total other comprehensive income (514) (1,848)
Comprehensive income 2,299 968
Comprehensive income attributable to
Comprehensive income attributable to owners of
parent 2,292 956
Comprehensive income attributable to
non-controlling interests 7 11
Sanrio Company, Ltd. (8136) Financial Results for the First Quarter of FY2015
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(3) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
First three months of FY2015 (Apr. 1, 2015 – Jun. 30, 2015)
Not applicable.
Segment and Other Information
I. First three months of FY2014 (Apr. 1, 2014 – Jun. 30, 2014)
Information related to sales and profit or loss for each reportable segment (Millions of yen)
Reportable segment Adjustment
(Note 1)
Amounts shown
on consolidated income statements
(Note 2) Japan Europe
North
America
Latin
America Asia Total
Sales
Customers 10,956 2,161 2,499 494 1,882 17,994 - 17,994
(Royalty income) ( 2,075) ( 2,113) ( 2,059) ( 491) ( 1,464) ( 8,205) ( -) ( 8,205)
Inter-segment 2,575 4 10 0 500 3,091 (3,091) -
(Royalty income) ( 2,444) ( 4) ( 10) ( 0) ( 12) ( 2,471) ( (2,471)) ( -)
Total 13,532 2,166 2,509 494 2,383 21,086 (3,091) 17,994
Segment profit 2,602 673 699 181 618 4,775 (458) 4,316
Notes: 1. The 458 million yen adjustment to segment profit is the sum of eliminations for inter-segment transactions and
unallocated operating expenses that are mostly general and administrative expenses that cannot be assigned to any
particular segment.
2. Segment profit is adjusted to be consistent with operating profit shown on the consolidated income statements.
II. First three months of FY2015 (Apr. 1, 2015 – Jun. 30, 2015)
Information related to sales and profit or loss for each reportable segment (Millions of yen)
Reportable segment Adjustment
(Note 1)
Amounts shown on consolidated
income statements (Note 2)
Japan Europe North
America
Latin
America Asia Total
Sales
Customers 10,640 1,793 1,625 360 2,630 17,049 - 17,049
(Royalty income) ( 2,252) ( 1,771) ( 1,304) ( 351) ( 1,956) ( 7,636) ( -) ( 7,636)
Inter-segment 2,244 14 8 6 500 2,774 (2,774) -
(Royalty income) ( 2,173) ( 12) ( 8) ( 6) ( 19) ( 2,221) ( (2,221)) ( -)
Total 12,884 1,807 1,634 366 3,131 19,824 (2,774) 17,049
Segment profit 2,201 463 280 108 885 3,940 (470) 3,469
Notes: 1. The 470 million yen adjustment to segment profit is the sum of eliminations for inter-segment transactions and
unallocated operating expenses that are mostly general and administrative expenses that cannot be assigned to any
particular segment.
2. Segment profit is adjusted to be consistent with operating profit shown on the consolidated income statements.
Sanrio Company, Ltd. (8136) Financial Results for the First Quarter of FY2015
12
Subsequent Events
The Company had conducted tender offer to repurchase stock beginning from June 12, 2015 following the resolution
of its Board of Directors on June 11, 2015 for tender offer to repurchase stock with a specific conditions pursuant to
Article 156, Paragraph 1 of the Companies Act (Act No. 86 of 2005, as amended), which is applicable in lieu of
Article 165, Paragraph 3, and the Company’s Articles of Incorporation. This tender offer has been completed as of
July 10, 2015.
1. Results of the tender offer
(1) Type of listed stock to be purchased
Common stock
(2) Purchase period
June 12, 2015 to July 10, 2015
(3) Purchase price
3,030 yen per share of common stock
(4) Commencement date of the settlement
August 4, 2015
(5) Number of stocks purchased
Type of stock Planned number of
shares to be purchased Planned number of
shares to be exceeded Number of shares
offered Shares repurchased
Common stock 2,500,000 shares - share 2,306,400 shares 2,306,400 shares
2. Summary of the stock repurchase
1. Details
(1) Type of shares to be repurchased
Common stock
(2) Total number of shares to be repurchased
2,306,400 shares
(3) Total value of shares to be repurchased
6,988,392,000 yen
(4) Date of purchase
August 4, 2015
This financial report is solely a translation of “Kessan Tanshin” (in Japanese, including attachments), which has been prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers who prefer an English translation.