Risk of Closures and Operating Restrictions Due to the Spread of COVID-19

「During the year, COVID-19 was downgraded to Category 5 under the Infectious Diseases Act, economic activity moved toward normalization, and the economy showed a gradual recovery.」

「Against this backdrop, consolidated revenue for the current quarter (cumulative) was ¥8,775 million, up 10.7% year on year, and operating profit was ¥211 million, up 98.1%, as the food and beverage and film exhibition businesses recovered from the pandemic and the sales area of the pre-owned condominium renovation and resale business expanded.」

「Against this backdrop, consolidated revenue for the current quarter (cumulative) was ¥8,775 million, up 10.7% year on year, and operating profit was ¥211 million, up 98.1%, as the food and beverage and film exhibition businesses recovered from the pandemic and the sales area of the pre-owned condominium renovation and resale business expanded.」

「As COVID-19 has been reclassified as a Category 5 disease under the Infectious Diseases Act, management activities are expected to become even more active.」

「Quasi-emergency measures to prevent the spread of disease were lifted in March 2022, allowing normal operations during the current quarter (cumulative), while films including “Hope and Despair: No One Knows Those Tears,” “The Fish Tale,” and “ケイコ 目を澄ませて” performed strongly. As a result, revenue increased substantially year on year, although it did not recover to pre-pandemic levels.」

「Compared with the same period of the previous year, quasi-emergency measures to prevent the spread of disease were lifted in March 2022, allowing normal operations during the current quarter (cumulative), while films including “Hope and Despair: No One Knows Those Tears,” “The Fish Tale,” and “ONE PIECE FILM RED” performed strongly. As a result, revenue increased substantially year on year, although it did not recover to pre-pandemic levels.」

「Compared with the same period of the previous year, operating restrictions associated with the priority preventive measures were lifted, and films including 『名探偵コナン ハロウィンの花嫁』, 『ツユクサ』 and 『シャンタル・アケルマン映画祭』 performed strongly, resulting in a substantial year-on-year increase in revenue.」

「Until the situation subsides, the Group faces the following potential risks.」

「With the outlook for the impact of COVID-19 remaining uncertain, demand for cinema advertising, event promotions and outdoor advertising continues to be weak, resulting in a significant year-on-year decline in revenue.」

「Consolidated revenue for the current quarter (cumulative) was ¥6,058 million, up 9.4% year on year, despite the continuing severe impact of COVID-19, particularly on the food and beverage and Solutions businesses. This reflected the blockbuster success of the distributed film “We Made a Beautiful Bouquet” and a rebound in the film exhibition business, which had closed all cinemas for approximately 2 months in the same period of the previous year.」

「Consolidated results for the quarter were as follows. Revenue increased to ¥2,792 million, up 38.4% year on year, driven by the blockbuster success of the distributed film 'We Made a Beautiful Bouquet' and a rebound in the film exhibition business, which had closed all theaters in the same quarter a year earlier. Despite cost reductions, the operating loss was ¥129 million, compared with an operating loss of ¥731 million a year earlier. Ordinary profit was ¥127 million, compared with an ordinary loss of ¥697 million a year earlier, due to ¥151 million in COVID-19-related subsidies recorded as non-operating income. Net profit attributable to owners of the parent was ¥401 million, compared with a net loss attributable to owners of the parent of ¥745 million a year earlier, due mainly to a ¥401 million gain on the sale of fixed assets recorded as an extraordinary gain.」

「If a state of emergency, a quasi-emergency measure to prevent the spread of disease, or a similar restriction is declared again, cinemas may be required to close or shorten operating hours, refrain from selling alcoholic beverages, and reduce the number of seats offered for sale.」

「Consolidated results for the quarter-to-date period were as follows. The performance of the video-related and food-service businesses deteriorated sharply due to the spread of COVID-19. Revenue was ¥8,447 million, down 33.9% year on year; the company posted an operating loss of ¥1,258 million, compared with operating profit of ¥246 million a year earlier, an ordinary loss of ¥942 million, compared with ordinary profit of ¥319 million, and a net loss attributable to owners of the parent of ¥1,034 million, compared with net profit attributable to owners of the parent of ¥245 million.」

「Against this economic backdrop, consolidated results for the quarter-to-date period were as follows. The company closed business locations and shortened operating hours at the request of local authorities to prevent the spread of COVID-19, the release of its flagship distributed film was postponed, and the food-service business remained sluggish even after operations resumed. As a result, revenue was ¥5,538 million, down 36.9% year on year; the company posted an operating loss of ¥983 million, compared with operating profit of ¥231 million a year earlier, an ordinary loss of ¥778 million, compared with ordinary profit of ¥276 million, and a net loss attributable to owners of the parent of ¥809 million, compared with net profit attributable to owners of the parent of ¥215 million.」

「Consolidated results for the quarter were significantly affected by the closure of business locations and shortened operating hours due to the spread of COVID-19. Revenue was ¥2,017 million, down 50.0% year on year; the company posted an operating loss of ¥731 million, compared with operating profit of ¥146 million a year earlier, an ordinary loss of ¥697 million, compared with ordinary profit of ¥190 million, and a net loss attributable to owners of the parent of ¥745 million, compared with net profit attributable to owners of the parent of ¥149 million.」