Voluntary Curtailment of Live Events and Impact on Performance Due to the Spread of COVID-19

「The Group's artists, talent, creators and employees operate throughout Japan to provide entertainment. Accordingly, the spread of natural disasters such as earthquakes, tsunamis, typhoons and floods, or infectious diseases such as COVID-19, may affect the Group's results by forcing the suspension of large-scale live events, content production activities and other operations.」

「As restrictions on activities were eased following the spread of COVID-19, results followed a recovery trend, including an increase in large-scale live performances, strong performance by films and the hosting of large-scale events overseas, although they had not yet returned to pre-pandemic levels.」

「There has been no material change from the previous consolidated fiscal year in the assumptions underlying the accounting estimates related to the spread of COVID-19.」

「For the nine-month period ended December 31 of the current fiscal year, the impact of the spread of COVID-19 decreased, and sales increased, mainly in the Music business. As a result, net sales were ¥76.032 billion, up 39.0% year on year, operating profit was ¥3.926 billion, compared with an operating loss of ¥3.610 billion in the same period of the previous year, and net income attributable to owners of the parent was ¥2.407 billion, compared with a net loss attributable to owners of the parent of ¥4.284 billion.」

「Because the Company has suspended live events to prevent the spread of COVID-19, the pandemic has affected the results of the Group.」

「Against this business backdrop, the Group also faced a situation in which it was difficult to actively hold live events, as audience-attended live performances and events were repeatedly cancelled, postponed or held at reduced scale in accordance with the government's "Basic Policies for Novel Coronavirus Disease Control."」

「Due to the impact of suspending live events to prevent the spread of COVID-19, revenue was ¥54,707 million, down 45.5% year on year, and operating loss was ¥3,610 million, compared with operating income of ¥2,349 million in the same period of the previous year. In addition, because losses resulting from the suspension of live events and other factors, disaster-related losses for leave compensation paid to employees, and additional retirement allowances arising from the implementation of the voluntary early retirement program were recognized, net loss attributable to owners of the parent was ¥4,284 million, compared with net income attributable to owners of the parent of ¥59 million in the same period of the previous year.」

「Regarding the future business environment, conditions are expected to remain extremely challenging due to the impact of COVID-19, and concern also exists over the risk that the spread and prolonged duration of the infection could further weaken economies in Japan and overseas. In addition, a rapid decline in personal consumption caused by lower corporate earnings and worsening employment conditions may affect business results.」

「Due mainly to the suspension of live events to prevent the spread of COVID-19, revenue was ¥14,108 million, down 51.4% year on year, operating loss was ¥1,054 million, compared with operating income of ¥366 million in the same period of the previous year, and net loss attributable to owners of the parent was ¥1,704 million, compared with net loss attributable to owners of the parent of ¥348 million in the same period of the previous year.」