From 12:00 on Friday, May 14, 2021, FIELDSCORPORATION held a financial results briefing (conference call) to explain our financial results for the year ended March 31, 2021.
This page provides information on our explanation (summaries) at the briefing.
Financial Results for the FY2020
⇒Page 2 of financial briefing material
Consolidated P/L is shown in the table.
Net sales was ¥38.79 billion (58.3% YoY), operating loss was ¥2.24 billion (operating profit of ¥710 million in the same period of the previous year), ordinary loss was ¥2.03 billion (ordinary profit of ¥930 million in the same period of the previous year), and loss attributable to owners of parent was ¥3.45 billion (profit attributable to owners of parent of ¥490 million in the same period of the previous year), which was roughly in line with the revised forecast.
⇒Page 3 of financial briefing material
Consolidated B/S is shown in the table.
Total assets and total liabilities and net assets declined YoY to ¥52.37 billion.
This was mainly due to a decline in trade receivables and work in process of pachinko/pachislot machines (hereinafter, “PS”) sold at the end of the previous fiscal year.
⇒Page 4 of financial briefing material
The table shows the status of PS sales for the full fiscal year.
Q1 and Q4 were impacted by the declaration of a state of emergency, and the sales timeline was changed. Particularly in Q1, we were severely affected by the state of emergency as we voluntarily refrain from sales activities in response to the suspension of operations at pachinko hall.
In Q2, the Company resumed sales activities in conjunction with pachinko hall, recording 13,000 units in sales of the pachislot three titles, followed by steady sales of the pachinko two titles and the pachislot three titles in Q3, resulting in a total of 52,000 units.
In Q4, the Company had planned to sell more than Q3 sold units, but the declaration of a state of emergency again hindered sales activities. The Company postponed sales of pachinko two titles and pachislot one title to the next period, resulting in the total of 27,000 units sold.
As a result, the total number of PS sold recorded 95,000 units for the full year.
⇒Page 5 of financial briefing material
The status of IP business areas in the Group’ s businesses is as described below.
Based on the Group’s medium-term business strategy, the Company developed two companies, Tsuburaya Productions and Digital Frontier, as global IP companies, and promoted their business based on the outlook of expanding and horizontally deploying the knowledge and systems gained from these companies in the following steps.
As a result, the results of the strategic initiatives of both companies are visible in the current fiscal year.
⇒Page 6 of financial briefing material
The status of Tsuburaya Productions is shown in the figure below.
As shown in the left figure, Tsuburaya Productions began offering “TSUBURAYA IMAGINATION,” a subscription-based digital platform service, in collaboration with NTT DOCOMO. As shown in the right figure, the licensing business also newly acquired partnerships with major companies, and in the overseas business area, licensing revenue from the Chinese market and other factors contributed significantly to profits.
⇒Page 7 of financial briefing material
The status of Digital Frontier is shown in the figure below.
Digital Frontier continued to handle consignment production of CG videos, mainly for domestic game companies, and VFX video production from both domestic and overseas.
As a new initiative, the company established a joint venture, VIRTUAL LINE STUDIO, as shown in the left figure. This is a Greenback studio, which enables the production of videos in safe environments, avoiding the “three Cs (closed spaces/crowded places/close-contact settings)” in coronavirus disease (COVID-19) crisis.
As shown in the right figure, Digital Frontier also concluded a multi-year outsourcing contract with Netflix for VFX video production. The first project, “Alice in Borderland,” has already been distributed and has been well received.
⇒Page 8 of financial briefing material
The business development of our Group in the future is shown in the table below.
In response to changes in lifestyles caused by COVID-19 crisis, we will reorganize the Group’s business domains into two pillars, the PS business and IP business, under our corporate philosophy of “The Greatest Leisure for All People.”
In the PS business, as shown in the table on the left, the Company aims to build a foundation for a stable PS business in a mature market, and to promote the creation of a system that enables it to secure efficient earnings and sustained growth.
In the IP business, we will move forward with initiatives to shift our Group to an IP company. In particular, we are anticipated that we will develop Tsuburaya Productions and Digital Frontier into global IP companies and expand and horizontally deploy the knowledge and systems they have acquired.
⇒Page 9 of financial briefing material
The status of the Q1 of the next fiscal year (FY2021) is shown in the table.
As stated in the table, the Company has already started delivering the two titles of “PACHINKO GANTZ KIWAMI” and “PACHINKO ULTRAMAN TARO 2,” and it is steadily trending to 35,000 units. The company is currently selling pachinko one title, “P BERSERK Musou,” and pachislot one title, “PACHISLOT Hyakkaryouran SAMURAI GIRLS,” and has recently begun sales of “P Uchū Senkan Yamato 2202 Ai no Senshi-tachi,” which is scheduled to be delivered in Q2.
In IP business, both Tsuburaya Productions and Digital Frontier are performing well.
The outlook for the next fiscal year is currently undecided, and we will announce it promptly when it becomes possible to make a rational calculation. The Company also plans to announce a medium-term management plan.