Playmates Toys Limited 2019 Interim Results...

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Playmates Toys Limited 2019 Interim Results Briefing 12 August 2019

Transcript of Playmates Toys Limited 2019 Interim Results...

Page 1: Playmates Toys Limited 2019 Interim Results …ir.playmatestoys.com/eng/presentations/pre190812.pdfTrade Receivables 40.3 31.9 Cash & Bank Balances 1,011.9 1,065.1 Net Current Assets

Playmates Toys Limited2019 Interim Results Briefing

12 August 2019

Page 2: Playmates Toys Limited 2019 Interim Results …ir.playmatestoys.com/eng/presentations/pre190812.pdfTrade Receivables 40.3 31.9 Cash & Bank Balances 1,011.9 1,065.1 Net Current Assets

Forward-Looking Statements

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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 2019 Interim Results …ir.playmatestoys.com/eng/presentations/pre190812.pdfTrade Receivables 40.3 31.9 Cash & Bank Balances 1,011.9 1,065.1 Net Current Assets

About Playmates Toys

Our Mission

Our Latest PerformanceOur 2019 Interim Results ReflectedFinancial Performance

Looking Forward

ContentContent

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Page 4: Playmates Toys Limited 2019 Interim Results …ir.playmatestoys.com/eng/presentations/pre190812.pdfTrade Receivables 40.3 31.9 Cash & Bank Balances 1,011.9 1,065.1 Net Current Assets

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

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Page 5: Playmates Toys Limited 2019 Interim Results …ir.playmatestoys.com/eng/presentations/pre190812.pdfTrade Receivables 40.3 31.9 Cash & Bank Balances 1,011.9 1,065.1 Net Current Assets

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

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Page 6: Playmates Toys Limited 2019 Interim Results …ir.playmatestoys.com/eng/presentations/pre190812.pdfTrade Receivables 40.3 31.9 Cash & Bank Balances 1,011.9 1,065.1 Net Current Assets

Our Latest PerformanceOur Latest Performance

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Page 7: Playmates Toys Limited 2019 Interim Results …ir.playmatestoys.com/eng/presentations/pre190812.pdfTrade Receivables 40.3 31.9 Cash & Bank Balances 1,011.9 1,065.1 Net Current Assets

Rollout of Rise of Teenage Mutant Ninja Turtles TV show and products around the world

Gross profit ratio increase due to:(i) fewer clearance of non-carry forward products(ii) lower tooling expenses

Higher marketing, selling & distribution costs in line with increase in sales, and stable overhead expenses

Our 2019 Interim Results ReflectedOur 2019 Interim Results Reflected

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Page 8: Playmates Toys Limited 2019 Interim Results …ir.playmatestoys.com/eng/presentations/pre190812.pdfTrade Receivables 40.3 31.9 Cash & Bank Balances 1,011.9 1,065.1 Net Current Assets

Income Statement HighlightsHK$ Million 1H2018 1H2019 +/-%

Revenue 136.7 157.2 15.0Gross Profit 64.5 80.0 24.1Marketing (30.1) (41.2) 37.1Selling & Distribution (7.0) (8.6) 22.9Administration (59.5) (61.3) 3.1Impairment Loss on Trade Receivables (9.5) - N/AOperating Loss (41.5) (31.1) -25.2Loss before Taxation (33.8) (21.3) -37.0Income Tax credit 3.2 1.4 -57.2Net Loss (30.5) (19.9) -34.8

Loss per Share (HK¢) (2.58) (1.69) -34.5

Financial PerformanceFinancial Performance

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Page 9: Playmates Toys Limited 2019 Interim Results …ir.playmatestoys.com/eng/presentations/pre190812.pdfTrade Receivables 40.3 31.9 Cash & Bank Balances 1,011.9 1,065.1 Net Current Assets

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1H2018 1H2019

1.3%‐6.2%43.5% 39.0%

5.1% 5.5%

22.0% 26.2%

52.8% 49.1%

Cost of Sales

Marketing

Selling & Distribution

Administration

Others

Income Tax

Net Profit

OthersOthers

Income Tax‐0.9%

Income Tax‐2.4%

Revenue:         HK$136.7M                  HK$157.2M9

Margin Analysis

Page 10: Playmates Toys Limited 2019 Interim Results …ir.playmatestoys.com/eng/presentations/pre190812.pdfTrade Receivables 40.3 31.9 Cash & Bank Balances 1,011.9 1,065.1 Net Current Assets

51.3%20.2%

14.5%

2.5%

9.9% 1.5%

U.S.A. Other Americas Europe Australasia Asia Others

HK$136.7M

1H2018 1H2019

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Revenue Breakdown by Regions

54.7%

10.3%

29.1%

1.7%4.0% 0.3%

HK$157.2M

Page 11: Playmates Toys Limited 2019 Interim Results …ir.playmatestoys.com/eng/presentations/pre190812.pdfTrade Receivables 40.3 31.9 Cash & Bank Balances 1,011.9 1,065.1 Net Current Assets

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Balance Sheet Highlights

Inventories 17.4 18.6Trade Receivables 40.3 31.9Cash & Bank Balances 1,011.9 1,065.1Net Current Assets 937.4 950.2Net Assets 984.6 1,001.5

Net Asset per Share (HK$) 0.83 0.85Gearing Ratio 0.0 0.0Current Ratio 5.7 5.8

HK$ Million 30/6/2018 30/6/2019

Financial PerformanceFinancial Performance

Page 12: Playmates Toys Limited 2019 Interim Results …ir.playmatestoys.com/eng/presentations/pre190812.pdfTrade Receivables 40.3 31.9 Cash & Bank Balances 1,011.9 1,065.1 Net Current Assets

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Looking ForwardLooking Forward

Page 13: Playmates Toys Limited 2019 Interim Results …ir.playmatestoys.com/eng/presentations/pre190812.pdfTrade Receivables 40.3 31.9 Cash & Bank Balances 1,011.9 1,065.1 Net Current Assets

Expect macroeconomic uncertainties and competitive pressure to persist and intensify in 2nd half 2019

Rise of the Teenage Mutant Ninja Turtles - season 2 to premiere in Fall 2019

Ben 10 - product line extensions in active development for 2019 and 2020

ZAG HEROEZ: Power Players - brand new show to debut in Fall 2019, initial shipments may occur in late 2019

Godzilla vs. Kong - full toy line in development for the blockbuster move in 2020

Pikwik - complete line of figures, playsets, vehicles, plush and role play toys scheduled to launch in 2020

Looking ForwardLooking Forward

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Page 14: Playmates Toys Limited 2019 Interim Results …ir.playmatestoys.com/eng/presentations/pre190812.pdfTrade Receivables 40.3 31.9 Cash & Bank Balances 1,011.9 1,065.1 Net Current Assets

TMNT35th Anniversary!

TMNT celebrating its 35th anniversary!

Nickelodeon’s Rise of the Teenage Mutant Ninja Turtles TV Show and our TMNT toys rolling out across many international markets

Season 2 scheduled to premiere in Fall 2019, supported by continued flow of digital content

Confident in TMNT as evergreen entertainment franchise

Page 15: Playmates Toys Limited 2019 Interim Results …ir.playmatestoys.com/eng/presentations/pre190812.pdfTrade Receivables 40.3 31.9 Cash & Bank Balances 1,011.9 1,065.1 Net Current Assets

Cartoon Network’s Ben 10 animated TV series continues to be popular in US and in many international markets

Actively developing product line extensions

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Page 16: Playmates Toys Limited 2019 Interim Results …ir.playmatestoys.com/eng/presentations/pre190812.pdfTrade Receivables 40.3 31.9 Cash & Bank Balances 1,011.9 1,065.1 Net Current Assets

Playmates secured master toy rights of ZAG HEROEZ: Power Players

Brand new show scheduled to debut on Cartoon Network in Fall 2019

Multi-segment toy line in development to launch in early 2020

Initial shipments may occur in late 2019

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Page 17: Playmates Toys Limited 2019 Interim Results …ir.playmatestoys.com/eng/presentations/pre190812.pdfTrade Receivables 40.3 31.9 Cash & Bank Balances 1,011.9 1,065.1 Net Current Assets

Godzilla vs. Kong, legendary, Toho and Warner Bros. bring together Godzilla and King Kong in on-screen battle in 2020

Full toy line for Godzilla vs. Kong blockbuster movie immerse kids in epic monster battle play

Page 18: Playmates Toys Limited 2019 Interim Results …ir.playmatestoys.com/eng/presentations/pre190812.pdfTrade Receivables 40.3 31.9 Cash & Bank Balances 1,011.9 1,065.1 Net Current Assets

Pikwik, brand new pre-school series, collaborate with Toronto-based Guru Studio

Complete line of figures, playsets, vehicles, plush and role play toys scheduled to launch in 2020

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Page 19: Playmates Toys Limited 2019 Interim Results …ir.playmatestoys.com/eng/presentations/pre190812.pdfTrade Receivables 40.3 31.9 Cash & Bank Balances 1,011.9 1,065.1 Net Current Assets

Thank You!

Playmates Toys Limited