Financial Results Briefing Material for the Third Quarter of the Fiscal Year 2021
Total Page:16
File Type:pdf, Size:1020Kb
Financial Results Briefing Material for the Third Quarter of the Fiscal Year 2021 Bushiroad Inc. Securities code: 7803 June 14, 2021 Ⓒbushiroad All Rights Reserved. Table of Contents ・ Third Quarter of the Fiscal Year 2021 Financial Results Summary/Overview - Summary Income Statement NOTICE - Financial Performance Trend The Company has changed its fiscal year end - Sales Trend by Segments from July 1 to June 30 since FY2021. - Topics Now FY2021 is 11 months from ・ Upcoming Activities August 1, 2020 to June 30, 2021. ・ Appendix 1Q: Aug.-Oct. 2Q: Nov.-Jan. 3Q: Feb.-Apr. 4Q: May and June Ⓒbushiroad All Rights Reserved. 2 FY2021 Third Quarter Financial Results Summary/Overview Ⓒbushiroad All Rights Reserved. 3 3Q of FY2021: Financial Results Summary Higher revenues and earnings YonY/QonQ Quarterly record-high sales was achieved due to contributions from TCG Dept. ・Sales exceeded the earlier quarterly record-high in FY20 2Q, achieving substantially higher revenues and earnings YonY, as well as QonQ. ・In the Digital IP business segment, TCG Dept. greatly contributed to both sales and profit. This segment achieved record-high sales in three quarters in a row since 1Q, and also increased segment profit. ・In the Live IP business segment, both sales and profit decreased QonQ, because events were held with limited audience capacity due to State of Emergency and other factors. ・As equity in losses of affiliates (non-operating expenses), impairment of goodwill of 41 million yen was allocated with respect to the affiliate company (Lingua franca, Inc.) to which the equity method was applied. In addition, extraordinary loss of 272 million yen was allocated as loss on valuation of investment securities. Unit: million yen FY21 3Q FY20 3Q +/- amount +/- % FY21 2Q +/- amount +/- % (①) (②) (①-②=③) (③/②) (④) (①-④=⑤) (⑤/④) Net sales 9,127 7,794 +1,333 +17.1% 9,054 +73 +0.8% Operating profit 264 -19 +283 - 241 +23 +9.5% Ordinary profit 361 -55 +416 - 256 +105 +41.0% Profit (loss) attributable to 30 -48 +78 - -36 +66 - owners of parent Digital IP business Net sales 6,940 6,036 +904 +14.9% 6,707 +233 +3.4% Segment profit 348 105 +243 +231.4% 24 +324 - Live IP business Net sales 2,187 1,758 +429 +24.4% 2,346 -159 -6.7% Segment profit -87 -123 +36 - 215 -302 - * For segment profit, amount of adjusted inventories is not shown. Ⓒbushiroad All Rights Reserved. 4 Summary Income Statement (Consolidated) ・Although consolidated net sales increased, gross profit rate declined, because net sales decreased in MOG Dept., and cost rate of music live events was yet to be improved. Meanwhile, since putting advertising expenses into launching new application games passed a peak, SG&A expenses decreased, and operating/ordinary profit turned to the black. ・Cumulative net sales in the 3Q has kept a pace even higher than the same period of the previous year which registered record-high. Quarter Cumulative total +/- +/- Unit: million yen FY21 3Q FY20 3Q amount +/- % FY21 3Q FY20 3Q amount +/- % (①) (②) (①-②=③) (③/②) (④) (⑤) (④-⑤=⑥) (⑥/⑤) Net sales 9,127 7,794 +1,333 +17.1% 27,154 25,224 +1,930 +7.6% Gross profit 3,021 3,105 -84 -2.7% 9,647 11,252 -1,605 -14.2% SG&A expenses 2,756 3,124 -368 -11.7% 9,223 9,038 +185 +2.0% Advertising -361 -24.0% +478 +12.0% expenses 1,141 1,502 4,435 3,957 Promotion expenses 282 246 +36 +14.6% 658 1,075 -417 -38.7% Operating profit 264 -19 +283 - 423 2,213 -1,790 -80.8% Operating profit % +3.0pt - % -7.2pt - margin 2.8% -0.2 1.5% 8.7 Ordinary profit 361 -55 +416 - 524 2,204 -1,680 -76.2% Ordinary profit rate 3.9% -0.7% +4.6pt - 1.9% 8.7% -6.8pt - Profit (loss) attributable to owners of 30 -48 +78 - -161 1,229 -1,390 - parent * As consolidated performance forecasts are not disclosed, progress thereof is not shown. Ⓒbushiroad All Rights Reserved. 5 Quarterly Trend of Consolidated Performances Legend Net sales Sales vcost (depreciation) Cost rate (million yen) 10,000 100.0% 9,127 9,123 8,971 9,054 9,000 8,652 90.0% 8,306 Depreciation for TV anime 8,188 Increased share of in-house broadcasted last autumn 7,962 distribution pushed up MOG cost 7,794 increased 8,000 80.0% 7,372 Widespread of COVID-19 7,776 66.9% 7,000 Cost rates of MD / live shows / events rose 64.7% 70.0% 61.8% 57.4% 60.2% 59.3% 6,000 54.1% 53.3% 360 60.0% 53.1% 53.0% 53.2% 383 341 5,000 50.0% 269 211 282 196 355 325 359 4,000 40.0% 424 3,000 Factors behind increased cost rate in the 3Q 30.0% ●Lower earning rate due to decreased net sales in MOG Dept. 2,000 ●Lower earning rate due to holding music live shows and live stages with 20.0% limited audience capacity 1,000 ●Depreciation for TV anime broadcasted last autumn decreased, but another 10.0% depreciation came up with the TV anime “CARDFIGHT!! VANGUARD overDress” 0 0.0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY2019 FY2020 FY2021 Ⓒbushiroad All Rights Reserved. 6 Quarterly Trend of Consolidated Performances Legend Net sales Ordinary profit Ordinary profit rate (million yen) 10,000 9,127 20.0% 9,123 8,971 9,054 9,000 8,652 18.0% 8,188 8,306 7,962 7,794 7,776 8,000 16.0% 7,372 14.7% Renewed record- high sales 13.5% 7,000 14.0% 6,000 11.4% 12.0% 9.4% 9.1% 5,000 10.0% 4,000 7.1% 8.0% 5.9% 3,000 6.0% Impact of Advertising and promotion expenses increased due to 3.9% COVID-19 full-swing launch of new IP 2,000 “D4DJ” 2.8% 4.0% 1,224 1,102 1,036 696 724 1,000 508 550 2.0% 256 361 0 0.0% -54 -93 -0.7% -1.0% -1,000 -2.0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY2019 FY2020 FY2021 Ⓒbushiroad All Rights Reserved. 7 Quarterly Trend of Sales and Operating Profit by Segments Sales (left) Digital IP Live IP Legend Operating profit (right) Digital IP Live IP (million yen) 10,000 9,000 2,907 2,347 2,187 2,320 2,466 8,000 2,399 2,319 2,102 1,756 1,604 7,000 1,794 6,940 6,651 6,708 6,000 6,187 6,217 5,986 6,039 6,172 (million yen) 5,577 5,860 5,790 5,000 1,250 450 Renewed record- 490 high sales 1,000 4,000 502 3,000 259 760 750 353 588 98 595 500 2,000 513 502 462 1,000 338 348 250 215 105 3 0 0 -123 -105 -91 24 -87 -250 -1,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY2019 FY2020 FY2021 * Segment sales are sales to external customers. * For segment operating profit, adjusted amount is not shown. Ⓒbushiroad All Rights Reserved. 8 Change in Quarterly Net Sales by Department: ① Digital IP Business Record-high sales in three successive quarters! (million yen) 5,575 5,858 5,786 6,184 5,983 6,214 6,036 6,172 6,649 6,705 6,940 ● Media Dept.: Sales increased due to 8,000 the contribution of FrontWing Lab, Inc. 150 which became a consolidated subsidiary 7,000 103 86 in Apr. 2021. 133 64 21 88 54 420 602 841 6,000 34 53 ● MD Dept.: Although some impacts of 22 471 434 327 403 527 359 807 751 scale-down and 314 536 841 865 5,000 756 1,209 909 postponement/cancellation of real events 1,228 1,202 886 911 still remain, several merchandising 4,000 2,441 events helped slight recovery of sales. 1,930 3,172 2,568 1,827 1,762 1,912 1,979 2,442 3,147 ● MOG Dept.: Both “Garupa (*1)” 3,000 3,311 marking its 4th anniversary and “D4DJ Groovy Mix” having organized several 2,000 collaborations contributed, but overall 2,735 2,878 sales of application games got slightly 2,526 2,374 2,590 2,254 2,516 1,000 2,065 1,803 2,094 softened. 1,369 0 ● TCG Dept.: New series of 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q “CARDFIGHT!! VANGUARD” started in FY2019 FY2020 FY2021 Apr. 2021 and many popular IP products of “Weiss Schwarz” were released, which Legend contributed to sales keeping a good pace. TCG Dept. MOG Dept. MD Dept. Media Dept. Other YonY QonQ YonY QonQ YonY QonQ YonY QonQ *1 Application game “BanG Dream! Girls Band Party!” Ⓒbushiroad All Rights Reserved. 9 Change in Quarterly Net Sales by Department: ② Live IP Business ● Music Dept: Sales of music/video software maintained steady growth (million yen) 1,793 2,101 2,398 2,465 2,318 2,906 1,755 1,604 2,319 2,346 2,187 because of higher sales of music 3,000 distribution, in addition to releasing 5 single CDs, 2 albums, and 5 video products including 3 Blu-rays of the TV 2,500 anime “Assault Lily BOUQUET”. 1,102 Concerning live shows/stages, music live shows of “BanG Dream!” were held at 2,000 1,029 851 893 Yokohama Arena for 2 days. However, 1,155 1,071 745 973 such shows have still been organized 329 1,500 with limited audience capacity, leaving 779 net sales yet to be improved.