Financial Results Briefing Material for the Fiscal Year Ended July 2020 Bushiroad Inc
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Financial Results Briefing Material for the Fiscal Year Ended July 2020 Bushiroad Inc. Securities code: 7803 September 14, 2020 ©bushiroad All Rights Reserved. Table of Contents ・ Financial Results Summary for the Fourth Quarter of the Fiscal Year Ended July 2020 ・ Financial Results Summary for the Fiscal Year Ended July 2020 Summary Income Statement (Consolidated) [Full year] Change in Financial Results by Segment Net Sales Composition by Department [Quarter] Change in Consolidated Financial Results Change in Net Sales by Segment Change in Operating Profit by Segment [Fourth quarter] Topics Change in Net Sales by Department ・ Initiatives ・ References Card Game Shiyoko ©bushiroad All Rights Reserved. 2 Financial Results Summary for the Fourth Quarter of the Fiscal Year Ended July 2020 ©bushiroad All Rights Reserved. 3 Financial Results Summary for the Fourth Quarter of the Fiscal Year Ended July 2020 Although the Live IP business continues to be in a difficult situation, the consolidated surplus was achieved again due to the contribution of the digital IP business such as the recovery of the TCG Dept. YoY Financial Results Net sales 7,776 million yen 8,653 million yen (-10.1%) for the Fourth YoY Operating profit 496 million yen 558 million yen (-11.1%) Quarter of the Ordinary profit 550 YoY Fiscal Year Ended million yen 509 million yen (+8.1%) Profit attributable to owners of parent 320 YoY July 2020 million yen 349 million yen (-8.3%) The TCG Dept. bottomed out from the decline in net sales and profits in 3Q and showed a recovery trend, and the MOG Dept. remained at the same level as in 3Q where it achieved record-high net sales. Segment profit increased year on year due to the cancellation of large-scale real promotional events held in the same period of the previous year due to COVID-19. Digital IP business YoY Net sales 6,172 million yen 6,187 million yen (-0.2%) YoY Segment profit 595 million yen 462 million yen (+28.8%) Since late June, we have actively held events combining live audiences and online distribution, but due to the cancellation or postponement of almost all live shows, performances, and events in May and early June, both net sales and profit continued to face a difficult situation as of the end of the current quarter. For the Music Dept., the strong performance of Live IP business music software such as “BanG Dream!” album CDs contributed to both net sales and profit. YoY Net sales 1,604 million yen 2,466 million yen (-35.0%) YoY Segment profit -105 million yen 98 million yen * For segment profit, the adjustment amount of inventories is omitted. * From 3Q of the current fiscal year, the results of Theater Company Hikosen and Sopratico are recorded in the Live IP business. ©bushiroad All Rights Reserved. 4 Financial Results Summary for the Fiscal Year Ended July 2020 ©bushiroad All Rights Reserved. 5 Summary Income Statement Net sales increased and profits decreased year on year. (Consolidated) Both net sales and profits exceeded the revised forecast ● For the current quarter, due to the recovery of the Digital IP business, we returned from consolidated deficit in 3Q to the black for each profit item. For the full year, net sales increased, and profits decreased year on year, and finally, net sales were the same as the revised full-year financial forecast and each profit item exceeded the forecast. ● SG&A expenses for the current quarter decreased significantly due to the effects of ongoing cost reduction as a measure against COVID-19. ● The consolidated financial forecast for the fiscal year ending July 2021 is undecided because rational calculation is difficult. It will be announced as soon as calculation becomes possible. Financial forecast FY2020 4Q FY2019 4Q YoY change rate FY2020 full year FY2019 full year YoY change rate Unit: million yen progress rate Net sales 7,776 8,653 -10.1% 33,000 32,175 +2.6% 100.0% Gross profit 3,165 3,686 -14.1% 14,416 14,645 -1.6% - Selling, general and 2,669 3,128 -14.7% 11,706 11,587 +1.0% - administrative expenses Advertising expenses 1,148 1,127 +1.9% 5,105 5,003 +2.0% - Sales promotion 180 589 -69.4% 1,225 1,644 -25.5% - expenses Operating profit 496 557 -11.0% 2,710 3,058 -11.4% 104.2% Operating profit margin 6.4% 6.4% +0.0 pt 8.2% 9.5% -1.3 pt - Ordinary profit 550 508 +8.3% 2,755 3,031 -9.1% 105.9% Ordinary profit ratio 7.1% 5.9% +1.2 pt 8.3% 9.4% -1.1 pt - Profit attributable to owners 320 349 -8.3% 1,551 1,799 -13.8% 103.4% of parent * The financial forecast progress rate is the ratio to the revised full-year financial forecast disclosed on July 22, 2020. ©bushiroad All Rights Reserved. 6 Change in Full-Year Financial Results by Segment Legend Digital IP Live IP Change in Net Sales Composition Change in Operating Profit Composition (Consolidated) (million yen) (million yen) (Consolidated) 35,000 3,500 30,000 8,761 8,587 3,000 7,174 1,200 25,000 2,500 1,194 724 20,000 2,000 23,415 24,413 21,715 1,901 15,000 1,500 1,736 1,962 10,000 1,000 5,000 500 0 0 FY2018 FY2019 FY2020 FY2018 FY2019 FY2020 * Net sales and segment profits for each quarter of the fiscal year ended July 2018 were not audited by an audit corporation. * Segment sales are sales to external customers. ©bushiroad All Rights Reserved. 7 Full-Year Net Sales Composition by Department ● The TCG Dept. saw a decrease in net sales as in the previous fiscal year, but the MOG Dept. saw significant growth, resulting in an overall increase in net sales. The strong performance of the MD, Sports, and Music departments in the first half covered the weakness of the TCG, Sports, and Music departments exposed by COVID-19 in the second half. ● Bushiroad Music Inc., a subsidiary operating the business of the Music Dept., achieved record-high net sales and ordinary profit as in the previous fiscal year. Although impacts were seen from COVID-19, including the suspension of TCG shipments for about one month, subsidiary Bushiroad International Pte. Ltd. achieved record-high ordinary profit due to the expansion of overseas business. Change in Net Sales Composition (Consolidated) Year-on-Year Net Sales Analysis (Consolidated) (million yen) Legend 28,890 32,175 33,000 (million yen) 35,000 229 278 34,000 TCG Dept. 529 3,565 30,000 459 3,404 161161 33,000 3,447 -205 33,000 2,040 5,021 -312 -49 MOG Dept. 5,333 25,000 32,175 4,891 1,649 MD Dept. 1,854 32,000 1,086 4,163 20,000 2,232 3,634 Media Dept. 31,000 15,000 7,394 7,433 10,880 Sports Dept. 10,000 30,000 Music Dept. -2,746 5,000 10,808 10,239 29,000 7,493 Other 0 28,000 FY2018 FY2019 FY2020 FY2019 TCG MOG MD Media Sports Music Other FY2020 * Net sales for each quarter of the fiscal year ended July 2018 were not audited by an audit corporation. ©bushiroad All Rights Reserved. 8 Change in Quarterly Consolidated Financial Results Legend Net sales Ordinary profit Ordinary profit ratio (million yen) 10,000 Sales of “BanG Dream!” live 20.0% MOG is doing well, shows & CDs are strong 9,123 9,000 including new app 8,634 8,652 18.0% distribution 16.5% 8,188 8,306 7,962 8,000 7,794 7,776 16.0% 7,340 7,372 14.7% 7,000 6,766 13.5% 14.0% 6,149 11.4% 6,000 12.0% Held “BanG Dream!” 5,000 12.2% 9.4% live shows 10.0% 16.5% and reduced sales promotion expenses 4,000 9.1% 7.1% 8.0% 7.8% 5.9% 3,000 6.0% 5.6% Impact of Sales promotion COVID-19 expenses increased 2,000 Anime amortization 4.0% increased due to sole due to multiple large sponsorship real events 1,000 1,224 2.0% 1,211 1,102 1,036 826 724 696 -54 550 0 479 480 508 0.0% -0.7% -1,000 -2.0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Fiscal year ended July 2018 Fiscal year ended July 2019 Fiscal year ended July 2020 * Net sales and ordinary profit for each quarter of the fiscal year ended July 2018 were not audited by an audit corporation. ©bushiroad All Rights Reserved. 9 Change in Quarterly Net Sales by Segment Legend Digital IP Live IP (million yen) 10,000 9,000 2,907 8,000 2,227 2,466 2,399 2,319 2,102 1,756 1,604 7,000 1,832 1,794 1,488 6,000 1,627 6,407 6,187 6,217 5,860 5,986 6,039 6,172 5,000 5,577 5,790 5,507 5,279 4,000 4,522 3,000 2,000 1,000 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Fiscal year ended July 2018 Fiscal year ended July 2019 Fiscal year ended July 2020 * Net sales and segment profits for each quarter of the fiscal year ended July 2018 were not audited by an audit corporation. * Segment sales are sales to external customers. ©bushiroad All Rights Reserved. 10 Change in Quarterly Operating Profit by Segment Legend Digital IP Live IP (million yen) 1,400 1,200 321 450 1,000 490 502 800 887 208 259 760 600 353 588 565 98 341 513 502 400 324 462 595 338 200 164 120 105 0 -123 -105 -200 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Fiscal year ended July 2018 Fiscal year ended July 2019 Fiscal year ended July 2020 * Net sales and segment profits for each quarter of the fiscal year ended July 2018 were not audited by an audit corporation.