Supplementary Explanation Materials 2016.4Qr · 31.12.2017 · Supplementary Explanation Materials...

Copyright(c) Golf Digest Online Inc. All Rights Reserved.

Supplementary Explanation MaterialsGolf Digest Online Inc. (TSE Securities code: 3319)URL：www.golfdigest.co.jp

pageCopyright(c) Golf Digest Online Inc. All Rights Reserved. 2

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.

Because no consolidated financial statements were prepared in FY2013, non-consolidated performance is stated in these materials as the business results for FY2013.

Please refrain from unauthorized reproduction of these materials and data.

Notes concerning these materials

pageCopyright(c) Golf Digest Online Inc. All Rights Reserved.

Outline

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Corporate Profile

Company Name: Golf Digest Online Inc.URL: www.golfdigest.co.jp

History: Incorporated on May 1st, 2000Listed on Mothers, TSE on April 1st, 2004Listed on 2nd Section, TSE on May 1st, 2015Listed on 1st Section, TSE on September 07th, 2015(TSE Securities code: 3319)

President & CEO: Nobuya Ishizaka

Located: 2-10-2 Higashi-gotanda, Shinagawa-ku, Tokyo, Japan

Amount of capital: 1,436 million yen (as of Dec 31th, 2016)

Number of Employees(Consolidated):

497 (as of Dec 31th, 2016, including part-time employees)


GDO Group Business scheme

Online × Offline

Specialized in golf category / Hybrid of online & offline『GDO Tricycle Business Model』

Tee Time booking Retail

Golf Media

In-person Golf Lessons

Other channels Shops

Database

Events

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Golfers in Japan： approx. 7.6 million

Online channel monthly visitors※

5,500,000（116% of 2015）

Physical channel monthly users

470,000（107％ of 2015）

GolfTEC by GDOmembers: 6,000/month

Golfers booked on GDO460,000/month

Tournament/EventsParticipants: 1,000/month

※PC + smart phone unique visitors/month

（ in 2016）

Enjoy 「GOLF」

Golf GarageStore visitors: 30,000/month

Full support of ecosystem for golfers


GDO Club Members

GDO Club Members: 40% of golfers in Japan

3.04 millionas of end Dec, 2016

3.04 millionas of end Dec, 2016

(millions of persons)

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■GenderMale : 86%Female members in increasing trend

■Age groupAverage age : 49Over 75% members in 30s thru 50sCore age group of female is in 30s/40s

■Average golf scoreIntermediate (average in 90s) : 34%Core members are aiming for constant score at 80s

■OccupationCompany executives/Managers,self-employed : approx. 35%Many influencers in business

■Annual IncomeOver ¥10.0 million : 24%Over ¥8.0 million : 40%

User ProfileGDO users’ main profile:

■Age Group■Gender

■Annual Income

（As of Dec 31, 2016）

35% belong to management level with 40% having annual household income of ¥8.0 million or over. Possesses influence over business and high purchasing power as an individual.

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Male 86%Famale 14%


Environment surrounding GDO

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Golf course booking:

※Source：「transition of golf courses/users through taxation of golf facility tax （in Oct., 2016）」（by Nihon Golf Keieisha Kyokai）

No. 1 USA 15,372No. 2 Japan 2,383No. 3 Canada 2,363

Number of golf courses in the world

※Source: 「Golf around the world 2015」(by Royal and Ancient Golf Club of Saint Andrews/R&A)

Number of golf courses

Number of golf courses: total number in Japan vs available at GDO

Available at GDO to book 80% of golf courses in Japan


Golf course booking:

Visitors booked through GDO


Total golf course visitors


Number of visitors : Total visitors in Japan vs Visitor through GDO

※Source：「transition of golf courses/users through taxation of golf facility tax (in Oct.,2016)」(by Nihon Golf Keieisha Kyokai)

GDO booking increasing, while total golf course visitors less


※source： golf fee “Specific service business category survey(golf)” by METI (sales and No. of golf course visitors)frequency “Leisure White Paper” （by Japan Productivity Center）

The lower golf fee , the more familiar to golf

Correlation of golf fee and play frequency

golf fee (yen)

frequency

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Golf retail:

※Source：「Leisure White Paper 2016」(by Japan Productivity Center)※GDO Sales in 2003 is the amount of half year (Jan.-Jun.)

Golf Equipment market

(¥ in billions)No.1 Ａ company

（Mass retailer）76.0

No.2 Ｂ company（Mass retailer）

56.0

No.3 Ｃ company（Mass retailer）

20.0

No.4 Ｄ company（Mass retailer）

16.0

No.5 GDO 12.4

※data: Estimation by “2016 Golf Industry White Paper”(by Yano Research Institute) and company’s securities report of each company

Golf EC market Sales No.1

（except: brick and mortar stores）

GDO Retail sales(¥ in billions)

Sales ranking domestic golf retail market

Sales : Domestic golf equipment market vs GDO retail

Golf equipment market has certainlarge share of 20% among sporting

goods market in Japan.

GDO sales growing, while golf equipment market shrinking

(¥ in billions)


Segment Information

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Retail Business

Number of ProductsNew : 100,000 itemsUsed : 20,000 items

Main ServicesOnline sales of golf equipmentPurchase and sales of used golf equipment (Online/physical ：『Golf Garage』 5 store locations in Tokyo)

Other Yahoo! ® ShoppingYahoo! ® AuctionsAmazon.co.jp®

Rakuten Ichiba

GDO’s Strengths

Overwhelming product lineup which no one can beat

Differentiated information capability Providing high quality of service

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Retail Business : Net Sales Trend

( ¥ Million)

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* 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

Retail Business : YoY Comparison of Order Amount

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Broadening the Base of Golfers “GolfTEC by GDO”

Introducing systems and know-how through alliance with GolfTEC, No. 1 golf lesson chain in the U.S.

StudiosRoppongi, Ebisu, Ginza, Kanda, Ikebukuro, Ginza ANNEX, and Yokohama Sakuragicho (Scheduled to open in Aug. 2016)(『GolfTEC by GDO』 studios : 7 locations in Kanto region)

Main Services• Swing evaluation • Absolute private lessons• GDO’s custom club fitting

Developing lesson services in alliance with GolfTEC, No. 1 in the U.S.

Right: Club fittingLeft: Lesson approach visualizing improvement

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Golf Course Business

Number of partnering golf courses Over 2,000 golf courses (including overseas)

Main ServicesGolf course reservation (via online and phone)GDO Premium ClubOrganizing tournaments/eventsProviding online reservation system for golf coursesParticipating in “Golfers Ponta,” golfers-reward point program

GDO’s Strengths

Overwhelming amount of information New product commercialization anticipating

potential needs Providing high quality of service

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Revenue Models of Golf Course Business

Golf Course Reservation Services

Partnering golf courses

Golfers

Golf fee

Fees per player ×number of players

Provide golf course reservation services

System Sales for Golf Courses

Partnering golf courses

Provide systemsProvide ASP Services

Payments

Tee time booking

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Golf Course Business Net Sales Trend

(¥ Million)

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Media Business

Viewer ratings in golf category No. 1 in Japan

Main ServicesGolf media (News, GDO GOLF Style, Club information)

Score management, Community serviceAdvertisements/Marketing serviceMobile service (Free/Pay-per-use service)

GDO Cards Strategic Alliance Partners

PGA tour (USA), European tour,Asian tour, Golf Digest Magazine (USA)

GDO’s Strengths

Overwhelming amount of information and high quality of contents

Originality and timeliness of news coverage Supporting a wide variety of devices

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Mid-term Plans

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FY2015: The Final Year of the Mid-term Business Plan (2013-2015)

Net sales

Established in May 2000

Listed on TSE

Mothers in Apr. 2004

Operating profit

Changed the fiscal year end

Complete redesign of IT and management

platforms

Establishing the GDO“Tri-business Model”

Invest in the future

Focus on core and regain higher growth

Mid-term business plan (2013-2015)

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Transferred to First Section

of TSE on Sept. 2015

Jul. to Dec.


¥13.5 billion to ¥14.0 billion

¥14.0 billion

More than 120% of 2013

¥18.0 billion(129% compared to 2013)

* Results for 2013 are non-consolidated 25

Achievement of Targets of the Mid-term Business Plan (2013-2015)

Focus on core and regain growth- Rebuild core as golf specialty player - Strengthen management resources and

capabilities- Strengthen balance sheet and bottom line

Net sales

Operating profit


¥0.29 billion

Record sales and profits Grew core audience Listed on first section of TSE

More than ¥0.8 billion

¥0.82 billion


Mid-term business plan

Leveraging customer assets in combination with alliances

Targeting Asia and the US

Acceleration of growth

Further strengthen our core services

New startup phase“GDO NEXT from Scratch”

Existing business

New businesses

Overseas businesses

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Acceleration of growth


¥0.23 billion raised during listing on First Section of TSE

Strengthen existing businesses

Strengthen existing businesses

Sustainable growth

New businesses

New businessesOverseas

businessesOverseas

businessesAggressive activities aimed at improving corporate value over the mid to long term

Fully leveraging sound balance sheet

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Mid-term business plan


Mid-term Business Plan (2016-2018)

What is “GDO NEXT from Scratch”

GDO NEXT = Start of second startup phase for GDO

from Scratch = Start from zero base, as well as similar to a scratch handicap golfer, but in GDO’s case, leveraging an entire organization of golf business professionals

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Net sales: Double digit annual average growth rate

Operating profit: Over ¥2.0 billion in 2018

Dividend payout ratio: 20% per annum


¥0.82 billionOperating profit


Over ¥2.0 billion

Net sales

¥18.0 billion


Mid-term Business Plan (2016-2018) financials

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Double digit annual average growth rate


Performance Outlook for FY2016

(¥ Million)

Theme for the fiscal year ending December 31, 2017: “Adventure”

Thoroughly pursue growth in existing business Take one step beyond traditional frameworks for further growth

of the mid-term business plan = “Adventure”

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YoY

＋2,990(115%)

＋126(112%)

＋110(110%)

＋188(131%)

Dividends pershare \7.00 ＋\2.00\9.00

Profit attributableto owners of parent 611 800

Ordinary profit 1,089 1,200

Operating profit 1,073 1,200

Net Sales 19,309 22,300

FY2016Actual

FY2017Outlook


Shareholder Returns

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Dividend Policy

■Basic Policy of Distribution of ProfitsTo proactively return profits to shareholders while giving consideration to the balance between business performance and internal reserves.

■Dividends・ Dividends forecast for FY2016

¥7.0 per share ・ Dividends outlook for FY2017

¥9.0 per share (Interim dividend of ¥4.0 and year-end dividend of ¥5.0)

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Financial Information

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Financial Highlights : Consolidated Net Sales

(¥ Million)

*Results for 2013 are non-consolidated34


Financial Highlights : Consolidated Gross Profit

(¥ Million)

35

*Results for 2013 are non-consolidated


Financial Highlights : SG&A Expenses

(¥ Million)

36



Financial Highlights : Consolidated Operating Profit

(¥ Million)

37



Financial Highlights : Profit attributable to owners of parent

(¥ Million)

38



Financial Highlights : Net Income per Share

*The Company carried out a stock split, at a ratio of 100 shares per share on July 1, 2013. Net income (loss) per share is calculated upon the assumption that the stock split had been carried out at the beginning of FY2011.*Results for 2013 are non-consolidated

(¥)

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Supplementary Explanation Materials 2016.4Qr · 31.12.2017 · Supplementary Explanation Materials...

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