Fiscal Year Ended June 30 (FY2021) Materials for Full-Term Financial Results Briefing
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Fiscal Year Ended June 30 (FY2021) Materials for Full-Term Financial Results Briefing Bushiroad Inc. Securities code: 7803 August 13, 2021 Ⓒbushiroad All Rights Reserved. FY2021: Overall review In spite of adverse factors such as postponement/scale-down of events due to COVID-19 pandemic, the Company secured net sales of 32.5 billion yen, almost the same level as FY2020 in just a 11 months period, but experienced substantial decrease in profit. For the next FY2022, the Company expects record-high net sales and substantial profit recovery in the context of post-COVID-19 situations and by thoroughly strengthening its global operations. 2 Table of Contents 1. 4Q of FY2021 Financial Results Summary/Overview p.3 2. Reflecting FY2021 p.10 NOTICE 3. Mid-term growth strategies (up to FY2024) p.14 The Company has changed its fiscal year end 4. Prospects of FY2022 p.23 from July 1 to June 30 since FY2021. 5. Upcoming Activities p.26 Now FY2021 is 6. Appendix p.34 11 months from August 1, 2020 to June 30, 2021. 1Q: Aug.-Oct. 2Q: Nov.-Jan. 3 3Q: Feb.-Apr. 4Q: May and June Ⓒbushiroad All Rights Reserved. 3 4Q of FY2021: Financial Results Summary Ordinary profit turned to positive figure by reducing advertising expenses and recording non-operating profit of 97 million yen as a subsidy from J-LODlive (*1). Extraordinary loss of 140 million yen was recorded as impairment of goodwill of FrontWing Lab. Inc. +/- +/- Unit: million yen FY21 4Q FY20 4Q amount +/- % FY21 3Q amount +/- % ①(2months) ②(3 months) ①-②=③ ③/② ④(3ヶ月) ①-④=⑤ ⑤/④ Net sales 5,415 7,775 -2,360 -30.3% 9,127 -3,712 -40.6% Gross profit 1,638 3,164 -1,526 -48.2% 3,021 -1,383 -45.7% SG&A expenses 1,717 2,668 -951 -35.6% 2,756 -1,039 -37.7% Advertising 534 1,147 -613 -53.4% 1,141 -607 -53.1% expenses Promotion 140 179 -39 -21.7% 282 -142 -50.2% expenses Operating profit -79 496 -575 - 264 -343 - Ordinary profit 59 550 -491 -89.2% 361 -302 -83.6% Profit (loss) attributable to owners of parent -123 321 -444 - 30 -153 - Digital IP business Net sales 4,034 6,171 -2,137 -34.6% 6,940 -2,906 -41.8% Segment profit 75 594 -519 -87.3% 348 -273 -78.4% Live IP business Net sales 1,381 1,604 -223 -13.9% 2,187 -805 -36.8% Segment profit -151 -105 -46 - -87 -64 - *1 "J-LODlive" = Content Global Demand Creation Promotion and Infrastructure Development Project Subsidy * For segment profit, amount of adjusted inventories is not shown. Ⓒbushiroad All Rights Reserved. 4 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% 8,188 8,306 7,962 7,794 8,000 7,776 80.0% 7,372 69.8% 66.9% 7,000 64.7% 70.0% 61.8% 57.4% 60.2% 59.3% 6,000 54.1% 53.3% 367 60.0% 53.1% 53.0% 53.2% 383 5,415 342 5,000 50.0% 269 211 282 196 355 4,000 325 359 40.0% 424 Cost rate 289 (full-term) 3,000 30.0% Cost rate 65.3% (full-term) 2,000 56.3% 20.0% 1,000 10.0% 0 0.0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2019 FY2020 FY2021 (2months) Ⓒbushiroad All Rights Reserved. 5 Quarterly Trend of Consolidated Performances Legend Net sales Ordinary profit Ordinary profit rate (million yen) 10,000 20.0% 9,123 8,971 9,054 9,127 9,000 8,652 18.0% 8,188 8,306 7,962 7,794 7,776 8,000 16.0% 7,372 14.7% 7,000 13.4% 14.0% 11.3% 6,000 5,415 12.0% 9.4% 5,000 10.0% 4,000 9.0% 7.0% 8.0% 3,000 6.0% 5.8% 3.9% 2,000 2.8% 4.0% 1,102 1,224 1,036 1,000 696 724 1.0% 2.0% 508 550 256 361 -93 58 0 0.0% -0.6% -54 -1.0% -1,000 -2.0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2019 FY2020 FY2021 (2months) Ⓒbushiroad All Rights Reserved. 6 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 1,381 1,250 450 4,000 490 1,000 502 4,034 3,000 750 259 760 353 2,000 588 98 595 500 513 462 502 1,000 338 348 250 215 105 3 0 75 0 -123 -105 -91 24 -87 -151 -1,000 -250 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2019 FY2020 FY2021 (2months) * Segment sales are sales to external customers. * For segment operating profit, adjusted amount is not shown. Ⓒbushiroad All Rights Reserved. 7 Change in Quarterly Net Sales by Department: ① Digital IP Business Media Dept. (million yen) Sales could be secured by 5,575 5,858 5,786 6,184 5,983 6,214 6,036 6,172 6,649 6,705 6,940 4,034 recording committees’ revenues of major IPs. 150 MD Dept. 103 86 133 Sales of capsule toys decreased, 64 54 841 Other 21 88 420 602 affected by excessive distribution 34 53 434 327 stock. 22 471 527 359 807 403 751 865 Measures for distribution in line Media Dept. 314 536 841 1,209 909 with publicizing theater version 756 1,228 MD Dept. 886 911 1,202 of BanG Dream! were successful. 49 2,441 MOG Dept. 2,568 1,930 3,172 607 Backlash from the events during MOG Dept. 1,827 1,762 1,912 2,442 3,147 1,979 524 the 3Q such as “Garupa 4th 3,311 Anniversary” and “D4DJ Groovy Mix 0.5th Anniversary” led to 1,445 sales getting softened. TCG Dept. 2,878 TCG Dept. 2,526 2,735 2,590 2,516 2,374 2,254 2,094 2,065 1,803 As for VANGUARD, not only 1,369 1,409 products of new series but also those collaborated with “Touken Ranbu” presented good results. 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q However, only a small number of FY2019 FY2020 FY2021 (2months) items of Weiss Schwarz could be released, resulting in decreased sales in this dept as a whole. Ⓒbushiroad All Rights Reserved. 8 Change in Quarterly Net Sales by Department: ② Live IP Business 音楽部門 (million yen) 1,793 2,101 2,398 2,465 2,318 2,906 1,755 1,604 2,319 2,346 2,187 1,381 Among large-scale live shows initially scheduled, those at Fuji-Q Highland could be held actually, but those at MetLife Dome 1,102 were postponed. Music/visual software and music distribution services 1,029 851 893 1,155 1,071 maintained steady growth. 745 973 329 Music Dept. スポーツ部門 779 832 Large-scale events at Tokyo 751 Dome and Yokohama 1,804 Stadium were Sports Dept. 1,464 1,356 1,436 1,467 1,453 postponed/cancelled, 1,243 1,248 1,214 resulting in decreased sales 976 772 of events/goods. 630 Sales of contents such as video streaming service of 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q “New Japan Pro-Wrestling FY2019 FY2020 FY2021 (2months) World” and application game of “NJPW Collection” maintained steady growth. Ⓒbushiroad All Rights Reserved. 9 Table of Contents 1. 4Q of FY2021 Financial Results Summary/Overview p.3 2. Reflecting FY2021 p.10 3. Mid-term growth strategies (up to FY2024) p.14 4. Prospects of FY2022 p.23 5. Upcoming Activities p.26 6. Appendix p.34 Ⓒbushiroad All Rights Reserved. 10 FY2021: Highlights Profit (loss) Net sales Ordinary profit attributable to owners of parent 32,570 million yen 580 million yen -280 million yen YoY: 98.6% YoY: 21.1% (million yen) (million yen) (million yen) 32,175 33,000 32,569 3,031 2,755 583 1,799 1,551 -284 Live IP 8,761 8,587 8,236 ライブIP Digital IP 23,415 24,413 24,333 デジタル IP FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 (11 months) (11 months) (11 months) * Segment sales are sales to external customers. Ⓒbushiroad All Rights Reserved. 11 FY2021: Trend of Shares in Overall Net Sales by Department Live IP business Digital IP business Live IP business Digital IP business 8,586 (26.0%) 24,414 (74.0%) 8,236 (25.3%) 24,333 (74.7%) Music Dept. Music Dept. 10.8% 11.3% TCG Dept. TCG Dept. 22.7% Sports Dept. 3,565 Sports Dept. 3,689 27.3% 7,493 15.2% 14.0% 8,898 5,021 FY20 4,547 FY21 11 months 33,000 Other 0.7% 229 Other 1.2% 387 32,569 1,649 million yen 5.0% 2,471 million yen 7.6% Media Dept. Media Dept. 4,163 10,880 2,949 9,628 12.6% 33.0% 9.1% 29.6% MD Dept.