Maintaining the Benefits of Structural Reforms and Further Improving Profitability

「Adjusted EBITDA was ¥16,656 million, down 73.3% from the previous fiscal year.」

「Against this backdrop, net sales for the six-month consolidated period were ¥201,108 million, down 5.0% year on year, operating income was ¥10,064 million, down 69.3%, and ordinary income was ¥10,821 million, down 67.3%. In addition, as special losses including impairment losses of ¥4,455 million were recorded, interim net income attributable to owners of the parent was ¥2,754 million, down 90.9%, and adjusted EBITDA was ¥15,959 million, down 54.1%.」

「The gaming machines business posted substantial increases in both sales and income as pachislot machine sales performed strongly, led by the Group's core title Smart Pachislot Fist of the North Star.」

「Pachislot machine sales included Pachislot Eureka Seven: Hi-Evolution Zero Type-ART, as well as additional sales of Pachislot Kabaneri of the Iron Fortress, launched in the previous fiscal year, and Smart Pachislot Fist of the North Star, launched in the first quarter. Sales totaled 163,000 units, compared with 63,000 units in the same period of the previous year. Pachinko machine sales included P Fist of the North Star: The 4th Chapter, Gekokujo Ran, and totaled 74,000 units, compared with 49,000 units in the same period of the previous year.」

「As a result, net sales were ¥93,424 million, up 239.3% year on year, and ordinary income was ¥39,307 million, compared with ordinary income of ¥2,011 million in the same period of the previous year.」

「As a result, net sales were ¥50,979 million, up 382.9% year on year, and ordinary income was ¥21,836 million, compared with an ordinary loss of ¥646 million in the same period of the previous year.」

「For the consolidated fiscal year, net sales were ¥389,635 million, up 21.4% year on year, operating income was ¥46,789 million, up 46.0%, and ordinary income was ¥49,473 million, up 48.4%.」

「As a result, net sales were ¥52,194 million, up 0.7% year on year, and ordinary income was ¥7,359 million, up 22.1% year on year.」

「Pachislot machine sales totaled 34,000 units, compared with 31,000 units in the same period of the previous year. The Group's first 6.5-generation machine, Pachislot Kabaneri of the Iron Fortress, launched in July, performed well in terms of both sales and utilization. Pachinko machine sales included P Monster Hunter Double Cross: Continuous Hunt Version and totaled 23,000 units, unchanged from the same period of the previous year. All titles sold exceeded planned unit sales and generally performed as expected. As a result, net sales were ¥27,534 million, up 18.0% year on year, and ordinary income was ¥2,011 million, compared with an ordinary loss of ¥1,324 million in the same period of the previous year.」

「In the amusement-machine business, the company worked to create hits through lineup reviews and improve business efficiency through more efficient development. In pachislot machines, it sold 77 thousand units, including "Pachislot Aladdin A Classic," a revival of a past title, compared with 35 thousand units in the previous fiscal year. In pachinko machines, it sold 97 thousand units, including the latest title in its major series, "P Hokuto no Ken 9: Tohshin," compared with 69 thousand units in the previous fiscal year. Fixed costs remained low, supported by the benefits of structural reforms implemented in the previous consolidated fiscal year.」

「In pachislot machines, the company sold 48 thousand units, including "Pachislot ANEMONE: Eureka Seven HI-EVOLUTION," compared with 12 thousand units in the same period of the previous year. In pachinko machines, it sold 64 thousand units, including "P Hokuto no Ken 9: Tohshin," compared with 59 thousand units. The business recorded a profit. Fixed costs also remained low, supported by the benefits of structural reforms implemented in the previous fiscal year.」

「In the amusement-machine business, sales of pachislot machines were 31 thousand units, compared with 4 thousand units in the same period of the previous year, while sales of pachinko machines were 23 thousand units, compared with 11 thousand units. Sales were generally in line with expectations. Fixed costs remained low, supported by the benefits of structural reforms implemented in the previous fiscal year. As a result, revenue was ¥23,335 million, up 116.9% year on year, while the ordinary loss was ¥1,324 million, compared with an ordinary loss of ¥12,425 million in the same period of the previous year.」

「Against this backdrop, consolidated net sales for the first quarter cumulative period were ¥59,447 million, up 22.9% year on year. Operating profit was ¥3,844 million, compared with an operating loss of ¥3,851 million in the same period of the previous year. Ordinary profit was ¥3,484 million, compared with an ordinary loss of ¥4,099 million, and profit attributable to owners of the parent was ¥2,940 million, compared with a loss attributable to owners of the parent of ¥3,301 million.」

「For the current consolidated fiscal year, revenue was ¥277,748 million, down 24.2% from the previous fiscal year; operating income was ¥6,553 million, down 76.3%; ordinary income was ¥1,715 million, down 93.2%; and net income attributable to owners of the parent was ¥1,274 million, down 90.7%.」

「In connection with the structural reforms being undertaken by the company, a gain on the sale of investment securities of ¥8,491 million was recorded as an extraordinary gain, while a loss on the transfer of shares in a subsidiary in the amusement facilities business and ¥29,043 million in structural reform costs, including special additional retirement allowances related to the solicitation of voluntary retirements, were recorded as extraordinary losses.」

「In connection with the structural reforms being undertaken by the company, an extraordinary loss of ¥18,428 million in structural reform costs was recorded in the amusement facilities business.」

「Under these business conditions, revenue for the cumulative first quarter was ¥48,382 million, down 33.5% year on year. Operating loss was ¥3,851 million, compared with operating profit of ¥3,409 million in the same period of the previous year; ordinary loss was ¥4,099 million, compared with ordinary profit of ¥2,372 million; and loss attributable to owners of the parent for the quarter was ¥3,301 million, compared with profit attributable to owners of the parent of ¥1,718 million.」

「Under these circumstances, cumulative revenue for the third quarter of the current consolidated fiscal year was ¥280,808 million, up 12.2% year on year; operating income was ¥28,066 million, up 135.4%; and ordinary income was ¥25,852 million, up 186.6%.」

「Under these circumstances, cumulative revenue for the second quarter of the current consolidated fiscal year was ¥165,535 million, down 3.2% year on year; operating income was ¥14,601 million, up 43.0%; ordinary income was ¥12,658 million, up 38.5%; and net income attributable to owners of the parent was ¥9,870 million, up 47.2%.」

「Under these circumstances, cumulative revenue for the first quarter of the current consolidated fiscal year was ¥72,734 million, up 5.7% year on year; operating income was ¥3,409 million, up 264.6%; ordinary income was ¥2,372 million, up 244.6%; and net income attributable to owners of the parent was ¥1,718 million, up 408.7%.」

「For the current consolidated fiscal year, revenue was ¥331,648 million, up 2.5% from the previous fiscal year; operating income was ¥13,079 million, down 26.2%; ordinary income was ¥7,495 million, down 48.6%; and net income attributable to owners of the parent was ¥2,642 million, down 70.4%.」

「Under these circumstances, cumulative revenue for the third quarter of the current consolidated fiscal year was ¥250,321 million, down 4.0% year on year; operating income was ¥11,921 million, down 53.5%; and ordinary income was ¥9,021 million, down 62.9%.」

「Under these circumstances, cumulative revenue for the second quarter of the current consolidated fiscal year was ¥171,047 million, down 12.2% year on year; operating income was ¥10,213 million, down 61.9%; ordinary income was ¥9,139 million, down 63.8%; and net income attributable to owners of the parent was ¥6,703 million, down 62.3%. In addition, one-time operating expenses of approximately ¥3,800 million were incurred in connection with the consolidation of head-office functions.」

「Under these circumstances, revenue for the first quarter of the current consolidated fiscal year was ¥68,838 million, down 35.8% year on year, and operating income was ¥935 million, down 94.4%.」

「In the video and toys business, the company recorded distribution revenue from "Detective Conan: Crimson Love Letter," which ranked first in the 2017 domestic film box-office rankings, as well as revenue from online anime distribution. In toys, it rolled out new products including "Disney & Disney/Pixar Characters Dream Switch" and major products including the "Anpanman" series. As a result, revenue was ¥208,081 million, up 1.2% from the previous fiscal year, and operating income was ¥14,841 million, up 32.8%.」

「As a result, revenue was ¥157,944 million, up 1.6% year on year, and operating income was ¥17,279 million, up 12.3%.」

「In pachislot machines, the company sold 75 thousand units, including the new title "Pachislot Fist of the North Star: Shin Densetsu Souzou," the latest entry in the major "Fist of the North Star" series, compared with 81 thousand units in the same period of the previous year. In pachinko machines, it sold 119 thousand units, including "Pachinko CR Ghost in the Shell: S.A.C.," based on the popular anime, compared with 75 thousand units in the same period of the previous year. As a result, revenue was ¥88,385 million, up 36.1% year on year, and operating income was ¥21,449 million, up 101.6%.」

「The company worked to improve profitability through cost improvements from reusing components and reductions in development and other expenses. As a result, revenue was ¥119,739 million, up 23.7% year on year, and operating income was ¥25,885 million, up 71.7%.」

「The company worked to improve profitability through cost improvements from reusing components and reductions in development and other expenses. As a result, revenue was ¥64,926 million, up 6.6% year on year, and operating income was ¥10,639 million, up 25.9%.」

「In the packaged games, amusement machines, amusement facilities, and video and toys businesses, the company considers further improving profitability, in addition to maintaining the earnings recovery achieved through structural reform initiatives, to be a management priority.」