Consolidated Financial Results for the Year Ended March 31, 2021 (Prepared in Accordance with IFRS) May 13, 2021
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Consolidated Financial Results for the Year Ended March 31, 2021 (Prepared in Accordance with IFRS) May 13, 2021 KONAMI HOLDINGS CORPORATION Address: 11-1, Ginza 1-chome, Chuo-ku, Tokyo, Japan Stock code number, TSE: 9766 Ticker symbol, LSE: KNM URL: https://www.konami.com/ Shares listed: Tokyo Stock Exchange and London Stock Exchange Representative: Kimihiko Higashio, Representative Director, President Contact: Junichi Motobayashi, Corporate Officer, General Manager, Finance Division (Phone: +81-3-6636-0573) Date of General Beginning date of dividend Shareholders Meeting: June 24, 2021 payment: June 8, 2021 (Amounts are rounded to the nearest million, except percentages and per share amounts) 1. Consolidated Financial Results for the Year Ended March 31, 2021 (1) Consolidated Results of Operations (Millions of Yen, except percentages and per share amounts) Profit attributable to Business Operating Profit before Profit for the owners of the Revenue profit profit income taxes year parent Year ended March 31, 2021 272,656 64,164 36,550 35,581 32,274 32,261 % change from previous year 3.7% 44.8% 18.0% 17.1% 62.2% 62.2% Year ended March 31, 2020 262,810 44,297 30,972 30,395 19,897 19,892 % change from previous year 0.1% (18.8)% (38.7)% (39.6)% (41.9)% (41.8)% Total comprehensive income for the year: Year ended March 31, 2021: ¥34,536 million; 89.4% Year ended March 31, 2020: ¥18,234 million; (48.2)% Note) Business profit is calculated by deducting “cost of revenue” and “selling, general and administrative expenses” from “revenue.” Basic earnings Diluted earnings per share per share Return on profit Ratio of profit (attributable to (attributable to attributable to before income Ratio of owners of the owners of the owners of the taxes to total operating profit parent) (yen) parent) (yen) parent assets to revenue Year ended March 31, 2021 242.17 238.33 11.4% 7.8% 13.4% Year ended March 31, 2020 147.26 145.08 7.3% 7.6% 11.8% Reference: Profit (loss) from investments accounted for using the equity method Year ended March 31, 2021: ¥ 57 million Year ended March 31, 2020: ¥(26) million (2) Consolidated Financial Position (Millions of Yen, except percentages and per share amounts) Total equity Ratio of equity Equity attributable attributable to attributable to to owners of the owners of the owners of the parent per share Total assets Total equity parent parent (yen) March 31, 2021 489,006 299,542 298,727 61.1% 2,242.47 March 31, 2020 419,134 268,943 268,141 64.0% 2,012.85 1 (3) Consolidated Cash Flows (Millions of Yen) Net cash provided by (used in) Cash and Operating Investing Financing cash equivalents at the activities activities activities end of year Year ended March 31, 2021 69,770 (22,412) 22,426 202,430 Year ended March 31, 2020 51,166 (62,147) (15,869) 131,432 2. Cash Dividends Cash dividends per share (yen) Cash dividend rate for equity Total cash First Second Third Payout ratio attributable to Record Date dividends quarter quarter quarter Year end Annual (consolidated) owners of the (annual) end end end parent (consolidated) Year ended March 31, - 38.00 - 7.00 45.00 ¥6,071 million 30.6% 2.2% 2020 Year ended March 31, - 22.50 - 50.50 73.00 ¥9,725 million 30.1% 3.4% 2021 Year ending March 31, 2022 (Forecast) - 36.50 - 36.50 73.00 - 3. Consolidated Earnings Forecast for the Year Ending March 31, 2022 It is difficult to reasonably calculate the impact of coronavirus outbreak on our projected consolidated results at present. Projected consolidated results for the fiscal year ending March 31, 2022 has consequently not been determined. We will carefully assess the projections and announce it promptly when we can disclose it. Noted Items (1) Changes in significant consolidated subsidiaries during the period (status changes of subsidiaries due to changes in the scope of consolidation): None (2) Changes in accounting policies and accounting estimate 1. Changes in accounting policies required by IFRS: No 2. Other changes: Yes 3. Changes in accounting estimate: No (3) Number of shares issued (Share capital) 1. Number of shares issued: (Treasury shares included) As of March 31, 2021 143,500,000 shares As of March 31, 2020 143,500,000 shares 2. Number of treasury shares: As of March 31, 2021 10,286,773 shares As of March 31, 2020 10,285,500 shares 3. Average number of shares outstanding: Year ended March 31, 2021 133,214,149 shares Year ended March 31, 2020 135,077,487 shares 2 (Reference) Summary of Non-consolidated Financial Results Results for the Year Ended March 31, 2021 (1) Non-consolidated Results of Operation (Millions of Yen, except percentages and per share amounts) Operating revenues Operating income Ordinary income Net income Year ended March 31, 2021 52,495 49,862 50,153 13,909 % change from previous year 35.5% 39.5% 39.4% (60.6)% Year ended March 31, 2020 38,747 35,740 35,983 35,286 % change from previous year 55.8% 63.5% 63.6% 61.4% Basic net income Diluted net income per share (yen) per share (yen) Year ended March 31, 2021 104.41 102.60 Year ended March 31, 2020 261.23 256.85 (2) Non-consolidated Financial Position (Millions of Yen, except percentages) Net assets Total assets Total net assets Equity ratio per share (yen) March 31, 2021 329,278 248,728 75.5% 1,867.14 March 31, 2020 278,767 238,758 85.6% 1,792.29 Reference: Total Stockholders’ equity Year ended March 31, 2021: ¥ 248,728 million Year ended March 31, 2020: ¥ 238,758 million Earnings release (Kessan Tanshin) regarding these consolidated financial results is not subject to auditing procedures. Cautionary statement with respect to forward-looking statements and other matters: Statements made in this document with respect to our current plans, estimates, strategies and beliefs, including the above forecasts, are forward-looking statements about our future performance. These statements are based on management's assumptions and beliefs in light of information currently available to it and, therefore, you should not place undue reliance on them. A number of important factors could cause actual results to be materially different from and worse than those discussed in forward-looking statements. Such factors include, but are not limited to: (i) changes in economic conditions affecting our operations; (ii) fluctuations in currency exchange rates, particularly with respect to the value of the Japanese yen, the U.S. dollar and the Euro; (iii) our ability to continue to win acceptance of our products, which are offered in highly competitive markets characterized by the continuous introduction of new products, rapid developments in technology and subjective and changing consumer preferences; (iv) the timing of the release of new game titles and products, especially game titles and products that are part of historically popular series; (v) our ability to successfully expand internationally with a focus on our Digital Entertainment, Amusement, and Gaming & Systems businesses; (vi) our ability to successfully expand the scope of our business and broaden our customer base through our Sports business; (vii) regulatory developments and changes and our ability to respond and adapt to those changes; (viii) our expectations with regard to further acquisitions and the integration of any companies we may acquire; and (ix) the outcome of existing contingencies. 3 Please refer to page from 10 to 13 for further information regarding our business forecasts. KONAMI HOLDINGS CORPORATION (the “Company”) disclosed the supplemental data for the consolidated financial statements via the Company's website on May 13, 2021. 4 1. Business Performance (1) Overview of Business Performance (i) Business Performance For the fiscal year ended March 31, 2021, the economy remains stagnant with global restrictions on social and economic activities, due to the coronavirus outbreak. Prolonged coronavirus outbreak continues to impact on the economy and the future business environment remains significantly uncertain, thus it is expected that world-wide economic recovery requires more time. Under such circumstances, revenues of some business segments were impacted from temporal closures to prevent the coronavirus outbreak as well as world-wide economic slowdown. However, strong performance of products and services in the Digital Entertainment business including mobile games, computer and video games and card games led to an increase in revenues and business profit has reached a record high. Moreover, operating profit, profit before income tax and profit attributable to owners of the parent for the fiscal year ended March 31, 2021 have all increased. Starting from the fiscal year ended March 31, 2021, the name of the profit, which is calculated by deducting “cost of revenue” and “selling, general and administrative expenses” from “revenue,” has been defined as “Business profit.” In terms of the consolidated results for the fiscal year ended March 31, 2021, total revenue amounted to ¥272,656 million (a year-on-year increase of 3.7%), business profit was ¥64,164 million (a year-on-year increase of 44.8%), operating profit was ¥36,550 million (a year-on-year increase of 18.0%), profit before income taxes was ¥35,581 million (a year-on-year increase of 17.1%), and profit attributable to owners of the parent was ¥32,261 million (a year-on-year increase of 62.2%). 5 (ii) Performance by Business Segment Summary of total revenue by business segment: Millions of Yen, except percentages Year ended Year ended % change March 31, 2020 March 31, 2021 Total revenue: Digital Entertainment ¥153,395 ¥204,185 33.1 Amusement 23,718 17,636 (25.6) Gaming & Systems 28,401 16,643 (41.4) Sports 58,984 36,409 (38.3) Intersegment eliminations (1,688) (2,217) - Total revenue ¥262,810 ¥272,656 3.7 Digital Entertainment In the entertainment market, future development of game contents is expected through the functional enhancement of various devices, including mobile devices and video game consoles, and the standardization of next generation communication systems.