Mixi GROUP Annual Report 2019 Fiscal Year Ended March 31, 2019 Mixi’S Corporate Philosophy
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mixi GROUP Annual Report 2019 Fiscal Year Ended March 31, 2019 mixi’s Corporate Philosophy CONTENTS We aim to always respond sincerely to the feelings and mixi’s Corporate Philosophy .......................................................................................................................... 1 To Our Stakeholders .................................................................................................................................................. 2 requests of the users of our services and to provide value Overview by Business Area ............................................................................................................................. 6 Digital Entertainment ..................................................................................................................................... 6 that exceeds users’ imagination and expectations through Live Experiences .................................................................................................................................................... 7 Sports ................................................................................................................................................................................... 8 communication services. Media ..................................................................................................................................................................................... 9 Wellness ............................................................................................................................................................................ 9 To make the world more vibrant through communication: .................................................................................................................. mixi Group’s Financial Strategy 10 This is mixi Group’s mission. Financial Highlights ................................................................................................................................................... 13 ESG / Corporate Governance ....................................................................................................................... 14 Directors ........................................................................................................................................................................... 14 Audit and Supervisory Board Members ................................................................................. 16 Corporate Officer System .......................................................................................................................... 17 Corporate Governance Structure ................................................................................................... 18 Our Statement User surprise rst Risk Factors .................................................................................................................................................................... 20 philosophy ESG / Relationship with the Environment and Society .............................................. 22 Business Models and Performance of Our Core Services ....................................... 24 History ......................................................................................................................................................................................... 26 Summary of IR Activities ..................................................................................................................................... 26 Financial Information .............................................................................................................................................. 27 What we ................................................................................................................................................. Mission For communication Investor Information 69 should do Disclaimer Regarding Future-Oriented Statements This report contains future-oriented statements concerning plans, predictions, projections, strategies, and operating results. These future-oriented statements reflect management assumptions based on information available to management as of the date of this report’s publication and are thus subject to risks and uncertainties that may cause actual results to differ significantly from such statements. These risks and Integrity uncertainties include, but are not limited to, the economic environment in which mixi Our action Be creative Group’s businesses operate, changes in the development status of products and Values services, and fluctuations in currency exchange rates. guidelines First mover Note: The content of this report is based on mixi Group’s consolidated results for fiscal year Inclusiveness 2019, ended March 31, 2019. However, some information is from April 2019 or later. 1 To Our Stakeholders Management Strategy Management In the fiscal year ending March 2020, we plan to invest so that managerial decisions are more mindful of compliance. management resources in the areas of Digital Entertainment To further boost transparency related to the nomination and and Sports in particular. Furthermore, we plan to continue compensation of directors, we established the Nomination actively pursuing M&A while strengthening our internal and Compensation Committee, composed of the Company’s structure and making use of outside partners. president and all outside directors. Enhancing corporate governance We are enhancing our corporate governance structure with Priority topics in the fiscal year the aim of maintaining business operations long into the future. ending March 2020 After our subsidiary Hunza, Inc. was made the target of investigation, we made a big push to strengthen our corporate Revitalization of Monster Strike and governance structure during the fiscal year under review to business growth in the Sports area Koki Kimura ensure compliance. In the fiscal year ending March 2020, we will invest As part of this effort, the Board of Directors appointed management resources into the revitalization of Monster Strike President and Representative Director officers in charge of risk management and Group companies, and business growth in the Sports area. We will revitalize our Corporate Officer increasing the number of outside directors. We also flagship service Monster Strike and focus on diversifying established the Risk Management Committee and established revenue streams through highly sustainable sports businesses a system that takes greater consideration of reputational risks to prevent over-reliance on Monster Strike. We are pursuing A look back on the fiscal year ended March 2019 growth in Business progress and investment Entertainment Business In the fiscal year ended March 2019, under our new communication management system, we redefined our business domain as Digital communication services and drove business forward in five Entertainment areas where we can utilize our strengths as a company: Digital services that only Entertainment, Live Experiences, Media, Sports, and Wellness. Live Experiences Sports At the beginning of the fiscal year under review, we planned to focus the investment of management resources in Digital we can achieve. Entertainment. However, due to factors such as our withdrawal from a new business and a delay in the release of a new game, etc. we could not invest as planned. Along with a decline in sales Communication ©CHIBA JETS FUNABASHI in our flagship service, Monster Strike, we recorded a services consolidated decrease in sales and profit compared to the previous fiscal year. Media Wellness With each area at a different stage of investment, we worked to examine the business feasibility of both the Sports and Wellness areas as new businesses. In the Wellness area, we released a service and are continuing to monitor the feasibility of business expansion. In the Sports area, having discovered tactics for success while progressing with feasibility tests, we accelerated investment while promoting M&A with companies Lifestyle Business that will form the core of our future business expansion. 2 mixi GROUP Annual Report 2019 To Our Stakeholders 3 To Our Stakeholders Management Strategy Management Revitalization of Monster Strike other support to professional sports teams. Having discovered User surprise first Looking at the current trend of our core business Monster tactics for success in professional sports team management mixi Group has achieved strong growth by creating easy-to- Strike, new stages are designed mainly for core users. Monster and government-controlled competitive sports, we share services that inspire users to invite their family, friends, Strike is maintaining a top-class user base in Japan’s mobile established internal business structures while pursuing M&A. and acquaintances. Our social network mixi and smartphone game industry, but due to the focus on core users, casual users’ By leveraging our unique assets, we intend to create synergies app Monster Strike have achieved exponential growth through desire to spend remains low and the game itself requires large with the companies in which we invest that are growing word of mouth and viral communication. changes. Along with replacing the person in charge and substantially on their own in a growth market. Our goal is to Currently, mixi Group is taking on a variety of challenges in reorganizing the business structure, we plan to create content foster dramatic growth in these businesses. new business