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Copyright(c) Golf Digest Online Inc. All Rights Reserved.
Financial Results Briefing Material for the Fiscal Year Ended December 31, 2016 (18th Term)
Stock code: 3319
Golf Digest Online Inc.
page 2Copyright(c) Golf Digest Online Inc. All Rights Reserved.
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.
Please refrain from unauthorized reproduction of these materials and data.
Notes concerning these materials
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Full‐Year Financial Highlights for FY2016
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Double‐digit YoY growth for the fourth consecutive year in operating profit, ordinary profit, and profit attributable to owners of parent
Double‐digit YoY growth for the fourth consecutive year in operating profit, ordinary profit, and profit attributable to owners of parent
A 107% growth in net sales YoYA 107% growth in net sales YoY
Success in measures to strengthen services for smartphonesSuccess in measures to strengthen services for smartphones
Enhancement of return to shareholdersEnhancement of return to shareholders
Full‐Year Financial Highlights for FY2016
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Full‐Year Consolidated Business Results for FY2016
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(単位:百万円)
Gross profit and all profit items grew significantlyAll business segments contributed to profits by providing high value‐added services
前年比
18,046 19,309 +1,262(107%)
7,372 8,012 +640(109%)
6,939 6,939 +1,267(122.3%)
828 1,073 +244(130%)
430 611 +180(142%)
1,458 1,494 +36(102%)
当期純利益
EBITDA
売上総利益
販管費
営業利益
売 上 高
2015年 2016年
Net sales
Operating profit
SG&A expenses
Gross profit
2015 2016YoY
(¥ Million)
Profit attributable to owners of
parent
18,046
7,372
6,543
828
430
1,458
19,309
8,012
6,939
1,073
611
1,577
+1,262(107%)+640(109%)
+395(106%)
+244(130%)+180(142%)
+119(108%)
19,309
8,012
6,939
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Completion of depreciation of systems investment carried out in 2011Expenditures to strengthen and expand business and the business base
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2015 2016
Operating profit828
Operating profit1,073
Golf Course Business
Retail Business
+640Increase in gross profit
SG&A Expenses
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Reinforcement and expansion of business +461 Strengthening of existing business
Enhancement of services for smartphonesEnhancement of customer service
New businesses and overseas businesses
Enhancement of business base +155 Reinforcement of IT infrastructure Expansion of head office and business
offices
Completion of depreciation
(221)
(¥ Million)
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Group‐wide efforts to strengthen services for smartphones bore fruitGoing forward, service enhancement will continue to be a top priority
Success in Measures to Strengthen Services for Smartphones
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201553%
201658%
Approx. 1.4 million downloads
Up 123% YoY
Total app downloads
Ratio of visitors via smartphone
Customer referrals to golf courses via smartphone
Orders received via smartphone
Up 115% YoY
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To increase opportunities for shareholder returns, we have implemented interim dividends (¥3.0 per share) for the first timeWe plan to implement a year‐end dividend of ¥4.0 per share
Enhanced Return to Shareholders
Interim Dividend Year‐end Dividend Total
2014 ¥0.0 ¥2.5 ¥2.5
2015 ¥0.0 ¥5.5 ¥5.5
2016 ¥3.0 ¥4.0(Planned)
¥7.0(Planned)
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Implementation of shareholder benefitsWe distribute coupons usable in GDO Golf Shops and reserving GDO golf courses twice a year to shareholders, in order for them to learn about and experience first‐handedly the services that GDO provides
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Results by Segment
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Net Sales Gross Profit
(¥ Million)
(¥ Million) (¥ Million)
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Double‐digit growth in gross profit in Retail Business and Golf Course Business
通期 前年比 通期 前年比 通期 前年比 通期 前年同期比
売上高 13,367 107% 5,105 108% 810 100% 19,309 107%売上総利益 3,175 111% 4,227 110% 599 97% 8,012 109%売上総利益率 23.8% + 0.7p 82.8% + 1.1p 73.9% △ 2.2p 41.5% + 0.6p
リテールビジネス ゴルフ場ビジネス メディアビジネス 合 計
Net sales
Gross profit
Gross profit margin
Retail Business
Full‐year YoY
Golf Course Business
Full‐year YoY
Media Business
Full‐year YoY
Total
Full‐year YoY
107%13,3673,175 111%23.8% +0.7p
108%5,1054,227 110%82.8% +1.1p
100%810599 97%
73.9% ‐2.2p
107%19,3098,012 109%41.5% +0.6p
Retail Business
Golf Course Business
Media Business
20,000
15,000
10,000
5,000
0
20,000
15,000
10,000
5,000
02014 2015 2016 2014 2015 2016
796
4,107
11,035
16,030
812
4,715
12,449
18,046
810
5,105
13,367
19,309
614
3,490
2,354
6,502
618
3,850
2,873
7,372
599
4,227
3,175
8,012
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顧客数 手数料単価 キャンセル率
顧客数 購入単価
Analysis of Growth Factors
In the Retail Business, product unit prices increased YoY due to reinforcement of sales of golf clubs and other products
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In the Golf Course Business, although fee unit prices slightly declined YoY due to an increase in weekday players and an increase (deterioration) in cancellation rate from the impact of inclement weather, the number of customers was up YoY
* Full‐year, YoY
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* Full‐year, YoY
Number of customers Purchase price
Number of customers Fee unit price Cancellation rate
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Golf equipment sales for the full‐year grew at a rate surpassing that of the marketNumber of purchasers buying via smartphone increased significantlyWe continued to concentrate efforts on enhancing and improving services for smartphones
2015: ¥12.44 billionYoY: 113%
2014: ¥11.03 billionYoY: 114%
2016: ¥13.36 billionYoY: 107%
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YoY comparison of order amountNet sales
* 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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Retail Business
Jan2015
Apr Jul Oct Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Market
Jan2016
150%
125%
100%
75%
50%
GDO
118%
112%
96%
100%
93%94%
107%
118%125%
112% 115%
85%
109%
77%
111%
91%95%
119%
109%
100%
102%
98%
96%
113%
109%105%
109%114%
101%
96%
87%
99%
91%
89%
86%
76%
101%
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Growth in number of customer referrals surpassed that of the market throughout the year thanks to a product mix that meets the needs of golfers including early reservation discounts and other offeringsIncrease in number of visitors via smartphone
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2015: ¥4.71 billionYoY: 115%
2014: ¥4.10 billionYoY: 120%
2016: ¥5.10 billionYoY: 108%
YoY comparison of customer referrals to golf coursesNet sales
Copyright(c) Golf Digest Online Inc. All Rights Reserved.* GDO: YoY comparison of number of customer referrals to golf courses * Market: Ministry of Economy, Trade and Industry, “Survey of Selected Service Industries,” * Comparison of eight prefectures’ total (Hokkaido, Miyagi, Tokyo,
Aichi, Osaka, Hiroshima, Kagawa, Fukuoka)
Golf Course Business
Jan2015
Apr Jul Oct Jan2016
Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Market
150%
125%
100%
75%
50%
GDO
93%
135%
103%
100%
100%97%
98%
113%
98%
104%
102%
127%
119% 115% 117%115%
108%108%
117%116%112%
96%
130%
100%
98%95% 94%
115%120%
105% 102%
101%
84%
91%
98%
105%
96%
114%
Jan2015
Apr Jul Oct Jan2016
Feb Mar Apr May Jun Jul Aug Sept Oct
96%
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2015 Approx. 50%
2016 Approx. 70%
In addition to golf‐related advertisements, orders for non‐golf advertisements such as for automobiles, beverages and finance were firm, and net sales were flat YoY
Ratio of news page views (PVs) from smartphones surged as a result of strengthening measures for news app downloads
Net sales
2016: ¥0.81 billionYoY: 100%
2015: ¥0.81 billionYoY: 102%
2014: ¥0.79 billionYoY: 86%
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Ratio of news PVs from smartphones
Media Business
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Thorough Reinforcement of Existing Services
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+83
Brand Stores
Brands Offered
Increase in newly acquired brandsBegan offering 83 newly acquired brands333 brands offered as of end of December 2016
GDO Golf Shops: Demonstrating “Overwhelming Product Lineup”
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Category of newly acquired brands
GolfSportsapparel
Apparel
Others
+2
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Golf Course Reservations: Reservation Options Expanded and Enhanced!
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+80
+13Courses with
systems
18
+8Overseas Golf CoursesUnder Partnerships
Courses OfferingHOT PRICE
Increase of overseas golf courses under partnerships
Added 8 courses
Increase of golf courses offering “HOT PRICE”
Added 80 courses
Increase in golf courses to which systems are provided
Yardage and Webpack introduced at 13 additional courses
Amazing prices with advance purchase! Golf coupons sold at bargain prices.
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Feb. Established “Ginza ANNEX studios,” the second studio in GinzaAug. Established Yokohama Sakuragicho studios, the first in Kanagawa
Oriented towards interactive services such as club fitting that go along with product sales Creating a total experience store not limited to golf lessons
Acceleration of the Establishment of Lesson Service Studios
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Awarded Top Prize in the Sports Division of the “LINE MEDIA AWARD 2016”
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Awarded for highest user satisfaction in the sports category among 116 media that distribute original news digests through official LINE accountsEnhanced quality and volume of contents as a portal for attracting customers to all services
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KIDS GOLF Becomes a Subsidiary
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KIDS GOLF Inc., operator of a golf school for children, was made a subsidiary of GDOPlanning to develop various services that will add younger players to the target demographic for GDO services, and enable three generations of a family to enjoy golf together
Applications/inquiries One‐round trial lesson
Driving range trial lesson
Philosophy of KIDS GOLF Lesson Programs Lesson Environment Fees Instructor Profiles Student Achievements
Information for Schools
Play Golf as a Family
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Collaboration with Hoshino Resorts “KAI”
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Planning to hold the “Onsen Golf Debut @ Hoshino Resorts KAI Ito X GDO,” a golf starter tour for students at Ito Hotsprings in conjunction with the “RYOKAN CAMP” tour for young people organized by Hoshino Resorts “KAI”Development of new golf tour products, initiatives aimed at cultivating new demographic of golfers
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Launch of Cooperation with JTB
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Launch of cooperation with JTB Corp. (JTB) on services for overseas golfersCreation of operations framework and establishment of dedicated website for golf tours aimed at overseas golfers together with JTB
http://www.jtb‐golf.com/
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Capital and operation tie‐up with U.S. company GolfTECDispatched 1 director to strengthen partnershipA partnership that lays the foundation for overseas development, alongside strengthening lesson services in Japan
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Investment in GolfTEC, U.S.
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Initiatives in Asia (Thailand)
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Operation tie‐up with Win Win Capital Company Limited, based in the Kingdom of ThailandPlanning to develop golf course software business in Thailand as one of our business developments overseasProactive implementation of initiatives in Asia, including Taiwan
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Connecting the World with Golf
GDO’s “Golf Garden Project” launched in AprilWhen you play golf using the “GDO Score Management” app, a donation of ¥10 per birdie will be made to support agriculture in developing countries
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No. of gardens created/Approx. 53(as of Jan. 2017)
Setup of Golf Gardens
¥10 donated per birdie
¥150,000 = 1 gardenThe better you are at golf, the
more gardens created in developing countries
You only have to record your score on the “GDO Score Management” app!
“GDO Score Management”http://lesson.golfdigest.co.jp/score/opening/“Golf Garden Project”http://company.golfdigest.co.jp/ir/policies/csr/
Total contribution/Approx. ¥8 million
Total no. of birdies/Approx. 800 thousand
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Aim to increase the market share of the Internet and GDO by thoroughly pursuing growth in existing businesses
Promote the development of new businesses and overseas businesses with a view to realizing the mid‐term business plan, and aim for a new stage of growth beyond traditional frameworks
Performance Outlook for FY2017Theme for the fiscal year ending December 31, 2017:
“Adventure” as in FY2016
31
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前年比
+2,990(115%)
+126(112%)
+110(110%)
+188(131%)
2016年度実績
営業利益 1,073 1,200
売上高 19,309 22,300
当期純利益 611 800
経常利益 1,089 1,200
1株当たり配当金 7円00銭
2017年度見通し
9円00銭 +2円
(¥ Million)
FY2016Actual
FY2017Outlook YoY
Net sales
Operating profitOrdinary profit
Profit attributable to owners of parent
19,309
1,073
1,089
611
¥7.00Dividends per share ¥9.00
22,3001,2001,200800
+ ¥2
+ 2,990
+ 126
+ 110
+ 188
(115%)
(112%)
(110%)
(131%)
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Largest demographic of golfers is in the seniorsThe only major sport that can be enjoyed across three generations = GolfSpending by seniors on grandchildren is said to amount to ¥3.8 trillionIncreasing use of the Internet and smartphones by golfers
GDO’s Growth Potential in the Golf Market
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Internet (smartphones)Consumption across three generations
Keywords for GDO’s strategy to expand market share
Distribution of golfing population by age Ratio of households owning information and communication terminals
PC
Smartphone
Tablet
75 and up
65 ‐ 74
55 ‐ 64
45 ‐ 54
35 ‐ 44
25 ‐ 34
15 ‐ 24