For details, please refer to "Consolidated Financial Results for the Six Months Ended September 30, 2021".
|(Unit: Millions of yen)||First half of year ended March 31, 2021||First half of year ending March 31, 2022||YoY Change (%)|
|Profit attributable to owners of parent||(3,923)||315||-|
|(Unit: Millions of yen)||Fiscal year ended March 31, 2021
(as of March 31, 2021)
|Q2 of fiscal year ending March 31, 2022
(as of September 30, 2021)
|Total current assets||39,147||41,696||2,549|
|Total non-current assets||13,223||13,428||204|
|Total current liabilities||10,895||16,792||5,897|
|Total non-current liabilities||11,031||9,299||(1,732)|
|Total net assets||30,443||29,032||(1,410)|
|Total liabilities and net assets||52,370||55,124||2,753|
|(Unit: Millions of yen)||Six months ended
September 30, 2020
|Six months ended
September 30, 2021
|Cash flows from operating activities||1,037||1,006||(31)|
|Cash flows from investing activities||(666)||(493)||172|
|Cash flows from financing activities||(3,055)||(2,214)||840|
|Effect of exchange rate change on cash and cash equivalents||(0)||(0)||(0)|
|Net increase (decrease) in cash and cash equivalents||(2,683)||(1,701)||981|
|Cash and cash equivalents at beginning of period||24,725||24,510||(215)|
|Increase in cash and cash equivalents resulting from inclusion of subsidiaries in consolidation||-||14||14|
|Cash and cash equivalents at end of period||22,042||22,822||780|
i.) Overview of the first half of the current fiscal year (April to September 2021)
In FY2018, we revamped our management structure and have continued to implement various management reforms aimed at achieving sustainable growth. Specifically, we have been implementing the following three measures.
I. Group management focus on selection and specializing
Since FY2018, group management has focused on selection and concentration, as part of the management reforms. We have selected the distribution field of the pachinko business to specialize in, and are concentrating the IP business, a driver of future growth, in Tsuburaya Productions Co., Ltd. (hereinafter, “TPD”) and Digital Frontier Inc. (hereinafter, “DF”)
TPD is currently actively developing its digital service platform TSUBURAYA IMAGINATION in collaboration with NTT DOCOMO, INC., as well as its e-commerce website TSUBURAYA STORE ONLINE and live distribution. In addition, SHIN ULTRAMAN, devised and written by Hideaki Anno, is ready to be released. Globally, we are seeing growth in merchandising in Asian markets, particularly China. This includes initiatives with Netflix, Marvel, and others.
DF owns Japan’s top-class CG video and VFX technologies, and is responsible for our growth in the video field, which is indispensable for the IP business. DF continues to experience steady growth with CG video production centered on major domestic gaming companies and VFX video production with Netflix.
The performance of other group companies also showed steady performance in the COVID-19 pandemic, thanks to the implementation of various reforms.
II. Strengthen product and technological capabilities at group companies
As part of the group management strategy focused on selection and concentration, we are strengthening the products, services, and technological capabilities of each group company to develop highly profitable businesses that meet the expectations of future markets and customer preferences. At the same time, we are strengthening collaboration across human resources and organizations among the group companies.
In particular, with regard to enhancing product appeal in the pachinko business, in response to the enforcement of new regulations in February 2018, we have prioritized strengthening our product planning and development capabilities, and drastically reformed process to build an organization that integrates sales and development. This enables us to provide a stable supply of what we define as “quality products”: products that are both profitable for pachinko halls and meet the expectations of PS fans while satisfying the needs of leisure in a mature society such as Japan (i.e. moderate time and monetary consumption). As shown in Table 1 below, these efforts have resulted in an improvement in unit sales.
|H1 results||43,026 units||64,561 units||16,501 units||77,918 units|
|Full-year results||138,023 units||191,335 units||95,911 units|
III. Implementing continuous cost reduction measures
Our group has long reviewed and reduced the costs of all businesses and operations with the aim of creating a strong management structure capable of achieving sustainable growth even in the event of a significant change in the market environment surrounding each business field. The effects of these measures have led to a sustained improvement in SG&A expenses as shown in Table 2 below, and we will continue to implement cost reduction measures in the future.
|(Unit: Millions of yen)||FY2015||FY2016||FY2017||FY2018||FY2019||FY2020||FY2021|
As described above, the Group’s management foundation has been built to generate continuous revenues. In terms of business results for the first half of the current fiscal year, net sales were ¥37,348 million (up 252.6% YoY), operating profit was ¥358 million (up ¥3,686 million YoY), ordinary profit was ¥597 million (up 3,844 million YoY), and profit attributable to owners of parent was ¥315 million (up ¥4,239 million YoY).
ii.) Explanation of consolidated earnings forecasts
In the PS business, we are selling two pachislot machines, the PACHISLOT GANTZ KIWAMI THE SURVIVAL GAME and the Pachislot MONSTER HUNTER: WORLDTM GOLD HUNTING, and we have largely achieved our sales targets.
In addition, the pachinko machine NEON GENESIS EVANGELION -Roar for tomorrow-, aimed for release during the year-end shopping season, has high expectations from the market.
We are continuing further sales activities centered on these machines, and we expect to deliver more than 65,000 units in the third quarter.
TPD has received favorable reviews for Ultraman Trigger: New Generation Tiga, which started TV broadcasting in July. In addition distribution of Ultraman Tiga, a popular title celebrating its 25th anniversary, has begun on the company’s platform. TPD is expanding its fan base to include people in their 20s and 30s who watched Ultraman Tiga in their early childhood. In the third quarter (Oct.-Dec.), domestic and overseas merchandising is expected to remain stable.
DF and other group companies are also making steady progress.
Q4 (Jan.-Mar.) and full-year outlook
In the PS business, planned titles have been largely in compliance with model certification tests, and we are already implementing various measures to prepare for sales. On the other hand, it is unclear whether we will be able to respond to orders as the worldwide shortage of semiconductors has affected the procurement of parts and materials by pachinko and pachislot machine manufacturers.
In addition, market conditions are expected to remain unpredictable, as many medical professionals and infectious disease specialists predict the arrival of the sixth wave of the COVID-19 this winter.
As a result, the Company has not determined the forecast for the fiscal year ending March 31, 2022. We will continue to gather rationale for calculation while reviewing the market environment, and disclose the forecast as soon as we can predict the impact on the Company's performance.
(Notes1) All figures in this report are based on our estimates.
(Note 2) Merchandise names in this report are trademarks or registered trademarks of each company.