|(Unit: Millions of yen)||First half of the year ended March 31, 2019||First half of the year ending March 31, 2020||YoY Change %|
|Profit attributable to owners of parent||(3,251)||(2,888)||-|
|(Unit: Millions of yen)||Year ended March 31, 2019||First Half of the year ending March 31, 2020||Increase /
|Total current assets||48,225||41,434||(6,790)|
|Total non-current assets||19,971||14,455||(5,516)|
|Total current liabilities||21,754||16,541||(5,212)|
|Total non-current liabilities||11,337||7,982||(3,354)|
|Total net assets||35,105||31,365||(3,740)|
|Total liabilities and net assets||68,196||55,889||(12,306)|
|(Unit: Millions of yen)||First Half of the year ended March 31, 2019||First Half of the year ending March 31, 2020||Increase /
|Cash flows from operating activities||(4,177)||(2,361)||1,815|
|Cash flows from investing activities||1,652||1,715||63|
|Cash flows from financing activities||(531)||(4,935)||(4,404)|
|Effect of exchange rate change on cash and cash equivalents||0||(0)||(1)|
|Net increase (decrease) in cash and cash equivalents||(3,055)||(5,581)||(2,526)|
|Cash and cash equivalents at beginning of period||24,373||28,807||4,434|
|Cash and cash equivalents at end of period||21,318||23,226||1,907|
i.) Analysis of operating results
In the pachinko/pachislot market, manufacturers are developing and bringing new-regulation machine* to market. New-regulation machine, which offers a variety of new game functions within a reasonable amount of money, has received a certain reputation from pachinko halls and fans as a “pachinko/pachislot that customers can enjoy with peace of mind.” This has raised expectations for market revitalization.
Amid these market conditions, we have conducted marketing analyses from the user’s point of view on all the new-regulation machine that have been introduced into pachinko halls, and have refined the quality so that all products can be introduced into pachinko halls as an attractive products that users can enjoy.
[Results for the first half of the current fiscal year (six months)]
In the pachinko/pachislot distribution services business, we sold 22,600 units in the second quarter and recorded sales of a total of 64,500 units (up 50.1% YoY) including 41,900 units in the first quarter. In the pachinko/pachislot machine installation and parts checking business, sales grew to net sales ¥144 million (up approximately 2.4 times YoY) and net sales ¥400 million (up approximately 3.2 times YoY) in the web ad business. The pachinko/pachislot development division has steadily won orders for development projects from the next fiscal year onward.
At the other company, Tsuburaya Productions Co., Ltd. (hereinafter referred to as “Tsuburaya Productions”) is pursuing a variety of initiatives, including the production of the large film SHIN ULTRAMAN, monetization of movies, and expansion of licensing revenues. In Digital Frontier Inc., which conducts the video production business, its performance is proceeding steadily with orders for animation, games, pachinko/pachislot and other video production.
As a result, consolidated results for the first half of the fiscal year under review were as follows: net sales ¥27,664 million (up 53.3% YoY), operating loss ¥2,908 million (an improvement of ¥998 million YoY), ordinary loss ¥2,692 million (an improvement of ¥1,369 million YoY), and loss attributable to owners of parent ¥2,888 million (an improvement of ¥362 million YoY).
ii.) Explanation of consolidated earnings forecasts
The full-year consolidated financial results forecast, including the current situation, is progressing as planned, and there are no changes to the content in the "Summary of Financial Information and Consolidated Business Results for the Year Ended March 31, 2019," announced on May 15, 2019.
[Progress in the second half of the fiscal year ending March 31, 2020]
In the pachinko/pachislot distribution services business, we have already commenced sales of several pachinko/pachislot machines, including the mainstay title NEON GENESIS EVANGELION Rebirth of Angels, as well as Pachislot Salaryman Kintaro -MAX-, CARD BATTLE PACHI-SLOT MOBILE SUIT GUNDAM X-OVER, and ayumi hamasaki -LIVE in CASINO-. In addition, preparations for the launch of titles, scheduled for release in the fourth quarter, are proceeding smoothly.
Tsuburaya Productions is expanding its business both in Japan and overseas. During the fiscal year under review, the distribution of ULTRAMAN, a 3DCG animation series in NETFLIX and elsewhere, as well as season 2 production, merchandising and licensing, progressed largely as planned.
The performance of the other companies was also favorable, and the business for the fiscal year under review was in line with the plan.
*: Pachinko/pachislot machine based on Regulation Partially Amending the Ordinance for Enforcement of the Act on Control and Improvement of Amusement Business and the Regulations for the Verification of Licenses, Formats and Other Aspects of Pachinko and Pachislot Machines effective on February 1, 2018