For details, please refer to "Summary of Financial Information and Consolidated Business Results for the Nine Months Ended December 31, 2020".
|(Unit: Millions of yen)||Nine months ended December 31, 2019||Nine months ended December 31, 2020||YoY Change %|
|Profit attributable to owners of parent||(4,287)||(2,677)||-|
|(Unit: Millions of yen)||Year ended March 31, 2020||Nine months ended December 31, 2020||Increase /
|Total current assets||50,580||43,016||(7,564)|
|Total non-current assets||13,736||13,466||(269)|
|Total current liabilities||17,996||15,165||(2,831)|
|Total non-current liabilities||12,040||10,228||(1,811)|
|Total net assets||34,279||31,088||(3,191)|
|Total liabilities and net assets||64,317||56,483||(7,834)|
|(Unit: Millions of yen)||Nine months ended December 31, 2019||Nine months ended December 31, 2020||Increase /
|Cash flows from operating activities||(1,877)||4,865||6,743|
|Cash flows from investing activities||1,220||(917)||(2,138)|
|Cash flows from financing activities||(5,597)||(3,749)||1,847|
|Effect of exchange rate change on cash and cash equivalents||(0)||0||0|
|Net increase (decrease) in cash and cash equivalents||(6,255)||198||6,453|
|Cash and cash equivalents at beginning of period||28,807||24,725||(4,081)|
|Cash and cash equivalents at end of period||22,552||24,924||2,371|
During the nine months ended December 31, 2020, pachinko and pachislot machine (hereinafter, “PS”) industry was affected by the stagnant trend in the market. In response to the spread of coronavirus disease (COVID-19), the government launched declaration of emergency situation in April 2020, pachinko halls refrained operating, procuring semiconductor and other manufacturing materials were delayed in manufacturers, and the deadline for removal of the old regulation machines was partly extended. As a result, we complied with declaration of emergency situation in April and May and refrained from sales activities. We resumed sales activities after declaration of emergency situation was lifted, and unit sales in the H1 ended at 16,000 units.
In the Q3 (October to December), the operation of pachinko hall rapidly recovered as the government worked to simultaneously socioeconomic activities and infection suppressing, mainly in response to the decline in the number of patients of COVID-19. In addition, new machines which is equipped with a new game function due to the revision of the internal regulation of pachinko and other, has been highly regarded in the market. As a result, the total number of units sold in the market increased compared to the H1 of the fiscal year. Under these circumstances, we planned to sell a total of 120,000 units of five titles pachinko and six titles pachislot in the H2 of the fiscal year. Of this total, we sold two pachinko titles and three pachislot titles in the Q3, resulting in a total of 52,000 units.
Tsuburaya Productions Co., Ltd. (hereinafter, “Tsuburaya Productions”) is expanding the number of Ultraman fans by offering video titles such as live-action and anime that are suitable for the fan base domestically and overseas through movies, TVs, and distribution. At the same time, Tsuburaya Productions is promoting a medium-term business strategy that will generate profits in both the imaging products business and merchandising. In the imaging products business, Tsuburaya Productions is making steady progress in preparing for the release of the movie SHIN ULTRAMAN, including the establishment of an official Twitter account and the release of special newsletters. Merchandising is also robust both domestically and overseas.
Digital Frontier Inc. (hereinafter, “DF”) continued to respond to demand for CG video production centered on domestic game companies and VFX video production from both domestic and overseas. Alice in Borderland, an original NETFLIX video product for which DF was involved in VFX, was launched worldwide in December last year, and has been well received, and the production of season 2 has been decided.
In other business, we have overcome the impact of the spread of coronavirus disease (COVID-19) in the H1 of the fiscal year and are making steady progress.
Consequently, consolidated operating profit for the Q3 (October to December) was ¥1.46 billion, and the consolidated results for the Q3 of the fiscal year under review were as follows: net sales of ¥29,182 million (down 21% YoY), operating loss of ¥1,865 million (¥4,113 million in the same period of the previous fiscal year), ordinary loss of ¥1,690 million (¥3,970 million in the same period of the previous fiscal year), and loss attributable to owners of parent of ¥2,677 million (¥4,287 million in the same period of the previous fiscal year).
In Q4, we planned to sell a total of 70,000 units of pachinko three titles and pachislot three titles (excluding later-remodeled machines). Based on this, we announced our full-year consolidated earnings forecasts on November 13, 2020, which are operating profit of ¥1.2 billion, ordinary profit of ¥1.2 billion and profit attributable to owners of parent of ¥350 million.
Subsequently, in the Q4, declaration of emergency situation was relaunched on January 7, and strong requests from the government and local governments to reduce the chances of going out and other contacts continued to hinder sales activities of visiting pachinko halls. In addition, the extension of declaration of emergency situation to March 7 is expected to continue the tendency for pachinko halls to refrain from purchasing new machines for the foreseeable future.
In light of these factors, we have decided to postpone the delivery of three titles in the six titles that we had planned to sell in the Q4 to the Q1 of the next fiscal year, when the spread of infections is expected to end. In the Q4 of the fiscal year under review, unit sales are expected to be 25,000 units (currently on sale) and consolidation of operating loss are expected to reach ¥340 million. As shown in Table (1), we revised the forecast for the full-year consolidated results to operating loss ¥2.2 billion, ordinary loss ¥2.0 billion, and loss attributable to owners of parent ¥3.3 billion.
The breakdown of the three titles scheduled for delivery in the Q4 and delayed to the Q1 of the next fiscal year is as follows.
Three titles which is to be delivered in Q4
Pachinko: P CODE GEASS Lelouch of the Rebellion (currently on sale)
Pachislot: ZETTAI SHOGEKI Ⅲ, etc., two titles in total
Three titles postponed to the next Q1
Pachinko: PACHINKO ULTRAMAN TARO2, etc., two titles in total
Pachislot: one title
In the Q1 of the next fiscal year, we will sell three titles (planned total of 50,000 units) for which sales have been postponed, as well as 2-3 titles (currently under consideration) scheduled from the beginning. As a result, consolidated operating profit for the Q1 of the next fiscal year is expected to be ¥2.0 billion or more ( ¥(2.4) billion for the Q1 of the fiscal year under review).
Trends in sales title /unit sales and quarterly operating profit
Table (1) Revisions to consolidated earnings forecasts (unit: millions of yen)
*1) All figures in this report are based on our estimates.
*2) Merchandise names in this report are trademarks or registered trademarks of each company.