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Latest Performance

Consolidated business results for the first quarter of the year ending March 31, 2020 (April 1, 2019 to June 30, 2019)

Consolidated operating results (Percentage figures denote YoY changes)

(Unit: Millions of yen) First quarter of the year ended March 31, 2019 First quarter of the year ending March 31, 2020 YoY Change %
Net sales 8,930 19,098 113.8%
Operating profit (2,733) (683) -
Ordinary profit (2,755) (630) -
Profit attributable to owners of parent (2,957) (677) -

Consolidated balance sheets (summary)

(Unit: Millions of yen) Year ended March 31, 2019 First quarter of the year ending March 31, 2020 Increase /
Decrease
Assets
Total current assets 48,225 48,812 587
Total non-current assets 19,971 18,714 (1,257)
Total assets 68,196 67,526 (670)
Liabilities
Total current liabilities 21,754 23,048 1,294
Total non-current liabilities 11,337 10,728 (608)
Total liabilities 33,091 33,777 685
Net assets
Total net assets 35,105 33,749 (1,356)
Total liabilities and net assets 68,196 67,526 (670)

Consolidated statement of cash flows (summary)

(Unit: Millions of yen) First quarter of the year ended March 31, 2019 First quarter of the year ending March 31, 2020 Increase /
Decrease
Cash flows from operating activities (2,742) 4,234 6,976
Cash flows from investing activities 124 (1,083) (1,207)
Cash flows from financing activities (721) (2,226) (1,504)
Effect of exchange rate change on cash and cash equivalents 0 (0) (1)
Net increase (decrease) in cash and cash equivalents (3,339) 923 4,262
Cash and cash equivalents at beginning of period 24,373 28,807 4,434
Cash and cash equivalents at end of period 21,034 29,731 8,696


1. Qualitative information on the quarterly financial results

(1) Analysis of operating results and consolidated earnings forecasts

i.) Overview of operations for the three months ended June 30, 2019 (April 1 to June 30, 2019)

In May 2018, our group concentrated our management resources to each of the four units for management optimization. As a result, we have not only cut costs, but also leveraged synergy effects among business unit and accelerated management decisions.
For our main business, the pachinko and pachislot (hereinafter, “PS”) business during the first quarter under review, we have sold a total of 41,000 units (increase of 18,000 units YoY), including 25,000 units of Pachinko GANTZ:2. In terms of the installation and parts checking operations of PS machines, we recorded net sales of ¥90 million (about nine times YoY), and in terms of the web ad business, recorded net sales of ¥220 million (about 22 times YoY). In the PS development business, consigned development from various manufacturers is progressing strongly and its performance is proceeding steadily.
Tsuburaya Productions Co., Ltd. (hereinafter, “Tsuburaya Productions”) is promoting various measures aimed at producing profits in movies and developing goods sales etc. into foreign countries.
As a result of the above initiatives, our consolidated earnings for the first quarter of this term were net sales of ¥19,098 million (increase of ¥10,167 million YoY), an operating loss of ¥683 million (a YoY improvement of ¥2,050 million), an ordinary loss of ¥630 million (a YoY improvement of ¥2,125 million), and loss attributable to owners of parent of ¥677 million (a YoY improvement of ¥2,279 million).

ii.) Summary of forecasts for consolidated earnings

In the PS market, all of the old regulation machines are expected to be removed by end of January 2021 and replaced with new regulation machines following the Regulation for Enforcement of the Amusement Businesses Law*. It is expected that particularly strong demand will increase for the replacement of major old regulation machines toward the end of the year. Therefore, we will sell various PS machines including major titles successively.
In Tsuburaya Productions, ULTRAMAN has been distributed worldwide on NETFLIX etc. from April 2019. The production of season two was decided on as a result of a strong response being received from viewers. We expect the anime to expand goods and license sales not only in Japan but in China, Asia and North America. Also in movie, the production of SHIN ULTRAMAN was announced on August 1, 2019. This project is highly anticipated and garnering much attention, as it will be produced and screenplay by Hideaki Anno, who worked on the Evangelion series and Shin Godzilla, and directed by Shinji Higuchi, who directed Shin Godzilla.
As a result of the above, our consolidated earnings forecasts for the year ending March 31, 2020 remain unchanged from those stated in the "Summary of Financial Information and Consolidated Business Results for the Year Ended March 31, 2019," released on May 15, 2019.

*: 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, which enforced on February 1, 2018.

(2) Analysis of financial position

  1. Assets
    Current assets amounted to ¥48,812 million, up ¥587 million from the end of the previous fiscal year. The principal factor behind this was an increase in cash and deposits.
    Property, plant and equipment amounted to ¥5,435 million, down ¥729 million from the end of the previous fiscal year. The principal factor behind this was a decrease in tools, furniture and fixtures.
    Intangible assets amounted to ¥3,092 million, down ¥78 million from the end of the previous fiscal year. The principal factor behind this was a decrease in goodwill.
    Investments and other assets amounted to ¥10,185 million, down ¥449 million from the end of the previous fiscal year. This was mainly due to a decrease in investment securities.
    As a result of the above, total assets amounted to ¥67,526 million, down ¥670 million from the end of the previous fiscal year.

  2. Liabilities
    Current liabilities amounted to ¥23,048 million, up ¥1,294 million from the end of the previous fiscal year. The principal factor behind this was an increase in notes and accounts payable-trade even though a decrease in short-term loans payable.
    Non-current liabilities amounted to ¥10,728 million, down ¥608 million from the end of the previous fiscal year. The principal factor behind this was a decrease in long-term loans payable.
    As a result of the above, total liabilities amounted to ¥33,777 million, up ¥685 million from the end of the previous fiscal year.

  3. Net assets
    Net assets amounted to ¥33,749 million, down ¥1,356 million from the end of the previous fiscal year. This primarily reflected a decrease in retained earnings.

(3) Analysis of cash flows

During the first quarter of the fiscal year under review, cash and cash equivalents (hereinafter referred to as “cash”) increased by ¥923 million from the end of the previous fiscal year, amounting to ¥29,731 million.

  1. Cash flows from operating activities
    Net cash provided in operating activities amounted to ¥4,234 million (¥2,742 million of expenditure for the same period of the previous fiscal year). This was mainly due to a loss before income taxes of ¥638 million, an increase in notes and accounts payable-trade of ¥3,471 million, a decrease in notes and accounts receivable-trade of ¥973 million, and depreciation totaling ¥401 million.

  2. Cash flows from investing activities
    Net cash used in investing activities amounted to ¥1,083 million (¥124 million of revenue for the same period of the previous fiscal year). This was mainly due to purchase of non-current assets of ¥993 million and proceeds from redemption of investment securities totaling ¥200 million.

  3. Cash flows from financing activities
    Net cash used in financing activities amounted to ¥2,226 million (¥721 million of expenditure for the same period of the previous fiscal year). This was mainly attributable to a decrease in short-term loans payable totaling ¥1,496 million, repayment of long-term loans payable totaling ¥651 million, and dividends paid totaling ¥322 million.