Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated
document and the Japanese original, the original shall prevail.

Summary(Translation)
August 9, 2024

TSUBURAYA FIELDS HOLDINGS INC.
Consolidated Financial Results for the Three Months Ended June 30, 2024 (Under Japanese GAAP)
Company name:
Listing:
Securities code:
URL:
Representative:
Inquiries:
Telephone:

TSUBURAYA FIELDS HOLDINGS INC.
(URL: https://www.tsuburaya-fields.co.jp/e/)
Tokyo Stock Exchange
2767
https://www.tsuburaya-fields.co.jp/e/Hidetoshi Yamamoto, President and Group CEO
Hideaki Hatanaka, Senior Corporate Officer+81-3-5784-2111

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results briefing:

Yes
No(Yen amounts are rounded down to millions)

1. Consolidated financial results for the three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)(1) Consolidated operating results (cumulative)(Percentages indicate YoY changes.)
Net sales
Three months ended
June 30, 2024
June 30, 2023

Millions of yen

26,17630,335(Note) Comprehensive income

Operating profit%(13.7)
268.0

Millions of yen

2,519
2,025

Profit attributable toowners of parent

Ordinary profit

%
24.4
986.0

Millions of yen

3,328
2,185

Millions of yen

%
52.3
650.4

%
22.6
－

1,696
1,384

For the three months ended June 30, 2024: ¥ 2,622 million [(6.6) %]For the three months ended June 30, 2023: ¥ 2,807 million [924.0 %]Basic earnings
per share
Three months ended
June 30, 2024

Diluted earnings
per share

Yen

Yen

June 30, 2023

26.90

26.86

21.17

21.11

(2) Consolidated financial position
As ofJune 30, 2024

Total assets

Net assets

Millions of yen

Millions of yen

March 31, 2024

Equity-to-asset ratio%

88,982

49,951

45.6

98,28055,986

48.6(Reference) Equity

As of June 30, 2024: ¥ 40,616 million
As of March 31, 2024: ¥ 47,727 million(Note) “Accounting Standard for Current Income Taxes” (ASBJ Statement No. 27, October 28, 2022) and other have been applied from the beginning of the Q1 of the FY2024.
Figures for the FY2023 have been retroactively adjusted.

2. Cash dividends
Annual dividends
Q1-endFiscal year ended
March 31, 2024
Fiscal year ending
March 31, 2025
Fiscal year ending
March 31, 2025 (Forecast)

Q2-endFiscalyear-end

Q3-end

Total

Yen

Yen

Yen

Yen

Yen

-

0.00

-

40.00

40.00

0.00

-

40.00

40.00

-

(Note) Revisions to the forecast of cash dividends most recently announced: None

3. Forecast of consolidated earnings for the fiscal year ending March 31, 2025 (April 1, 2024 to March 31, 2025)(Percentages indicate YoY changes.)

Net sales
Full-year

Operating profit

Millions of yen%

155,000

9.2

Millions of yen

Profit attributable toowners of parent

Ordinary profit% Millions of yen

15,200 28.5

16,100

Basic earnings
per share%

Millions of yen

%

Yen

24.3

11,6000.4

177.29(Note) Revision of the most recently released performance forecasts: None
The average number of shares outstanding during the period, which is the basis for calculating “basic earnings per share,” is the number of issued shares as of March
31, 2024 (excluding treasury shares).

1

*Notes(1) Changes in significant subsidiaries during the period: None
(2) Application of accounting methods specific to the preparation of quarterly consolidated financial statements: Yes(3) Changes in accounting policies, changes in accounting estimates, and restatement(i)
Changes in accounting policies due to revisions to accounting standards and other regulations: Yes(ii) Changes in accounting policies due to other reasons other than (3) (i): None(iii) Changes in accounting estimates: None(iv) Restatement: None
(4) Number of issued shares (common shares)(i)
Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2024
65,429,150 shares(ii)

As of March 31, 2024
69,400,000 shares
Number of treasury shares at the end of the period
As of June 30, 2024
3,500,000 shares

As of March 31, 2024
3,970,850 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 2024
63,082,996 shares
Three months ended June 30, 2023

65,414,424 shares* Review of the accompanying quarterly consolidated financial statements by a certified public accountant or an auditing firm: None
* Proper use of earnings forecasts, and other special matters
The earnings forecasts and other forward-looking statements herein are based on information currently available to the Company
and on certain assumptions deemed to be reasonable. Actual results, etc. may differ materially from the forecasts due to various
factors.
For the assumptions underlying the forecasts, please refer to 1. Qualitative information on the quarterly financial results (1)Financial results on page two and (2) Earnings forecasts on page five.
(How to obtain supplementary materials on financial results)
Briefings for institutional investors and analysts will not be held in the Q1 of the current fiscal year, but materials distributed atregular briefings will be posted on our website immediately after the financial results are announced.

Consolidated Financial Results for the Three Months Ended June 30, 2024

Table of contents of attached document

1. Qualitative information on the quarterly financial results

2(1) Financial results ...................................................................................................................................................2(2) Earnings forecasts ................................................................................................................................................5(3) Overview of financial position ............................................................................................................................6
2. Quarterly consolidated financial statements and important notes

7(1) Quarterly consolidated balance sheets .................................................................................................................7(2) Quarterly consolidated statements of income and consolidated statements of comprehensive income................9(3) Quarterly consolidated statements of cash flows ............................................................................................... 11(4) Notes regarding the quarterly consolidated financial statements .......................................................................12(Notes regarding the operation of the company as a going concern) ................................................................. 12(Notes regarding occurrence of significant change in amount of shareholders’ equity)..................................... 12(Application of the accounting method specific to quarterly consolidated financial statements) ....................... 12(Changes in accounting policies) ....................................................................................................................... 12(Segment information, etc.)................................................................................................................................ 13

1

Consolidated Financial Results for the Three Months Ended June 30, 2024

1. Qualitative information on the quarterly financial results(1) Financial results
Two years have already passed since Russia’s military invasion of Ukraine, and there is still no sign of a solution.
Furthermore, Israel’s conflict in Gaza Strip, Palestine has spread to neighboring countries, raising tensions in the Middle East
region, and there are concerns about the impact on the world economy as a whole. In addition, the outlook for the Japanese
economy is difficult to predict due to factors such as the yen exchange rate and volatile stock market fluctuations caused byconcerns about the peak out of the U.S. economy.
On the other hand, the content business originating in Japan, which is gaining worldwide popularity, is becoming
increasingly popular in the world as a new core industry. Against this backdrop, we are aggressively building our foundation
as a global content business company based on our corporate philosophy of The Greatest Leisure for All People, and we are
steadily producing results.

Tsuburaya Productions Co., Ltd. (hereinafter, “TPD”), which plays a central role in the content and digital business,launched its medium-term management plan starting in FY2024. Under this medium-term management plan, we are pursuing
various measures aimed at establishing a global content business, with the following five pillars: ⅰ. establishing an internal
structure in line with global expansion, ⅱ. reframing our merchandise distribution network with global perspective andbuilding new distribution network, ⅲ. strengthening the development of Ultraman series merchandise, ⅳ. development of avariety of IP merchandise other than Ultraman and ⅴ. developing new visual products.
To establish an internal structure in line with global expansion, we have invited a diverse range of professional personnel toour head office and subsidiaries, in North America and Singapore. Each of these personnel works together to conduct
fundamental reframing of our merchandise distribution network and building new distribution network. In China, a theme park
centered on Ultraman area was newly established, and touch points have been further expanded, and the popularity of
Ultraman has become a favorable chain for merchandising, and merchandise development for a wide range of consumers is
expanding.
In October, new trading card game will be launched simultaneously in 15 countries to strengthen Ultraman series’
merchandise capabilities. We invited a group of experienced personnel to form a project team, and made preparations acrossthe board from planning and development to launch. Orders launched in June have been steady. Domestically, orders have
expanded to card specialty stores, major distributors, mass merchandisers, and convenience stores. Overseas, orders from
North America and the Asia region have been brisk. By leveraging our extensive ties with distributors worldwide, we will
expand the distribution of a wide range of merchandise as well as card games.
As a new video work, Netflix film Ultraman: Rising was released on global simultaneous distribution on June 14. In
addition to becoming the second largest viewer ranking on a global basis in the week of its release, it has since been wellreceived, ranking it in the top 10 in 69 countries. As a result, Ultraman is becoming increasingly popular in the North
American region, and we will cultivate the North American market as the next pillar of our global merchandising development
after China and Asia.

In PS business, we are working to acquire attractive IP and develop pachinko/ pachislot (hereinafter, “PS”) machines whichmeets PS fans’ expectations to grow medium-to-long-term.
In light of the latest market trends, FIELDS CORPORATION (hereinafter, “FIELDS”) focused on strengthening
merchandise capabilities for deliveries during the fiscal year in the Q1. From the Q2 onward, we plan to bring these products
to market at the best possible time.
ACE DENKEN Co., Ltd. (hereinafter, “ACE DENKEN”), which has newly joined our group, is a leading company in the
installation of equipment for pachinko halls, including the island refueling system. It has built up a track record of reliability
and achievements by responding to every need of pachinko halls nationwide. ACE DENKEN and FIELDS will work to bringsignificant benefits to the industry through collaboration.
2

Consolidated Financial Results for the Three Months Ended June 30, 2024

As a consequence, the Group’s consolidated results for the Q1 of this fiscal year were as follows: net sales ¥26,176 million(down 13.7% YoY), operating profit ¥2,519 million (up 24.4% YoY), ordinary profit ¥3,328 million (up 52.3% YoY), andprofit attributable to owners of parent ¥1,696 million (up 22.6% YoY).

An overview of each business segment in the Q1 of the fiscal year under review is as follows.
Content and digital business segment
The status of TPD, which is the core of the content and digital business, in the Q1 is as follows.
Both sales and income increased from the same period of the previous fiscal year, mainly due to increased revenue fromoverseas MD and license.

[MD and license] ¥1,845 million (+30.6% YoY)
Merchandising in China has expanded to include low-priced toys and food products, in addition to block toys, card games,
stationery, and apparel. As a result, revenues from MD and license increased 30.6% YoY, steadily penetrating the broader
merchandise lineup of consumers. In particular, revenues from overseas MD and license, mainly in China, increased 49.1%
YoY.
Results by merchandise category are as follows.
i.

Toys and hobbies: Increased by 42.7% YoY to ¥719 million due to growth in licensing revenues from block toys andnew low-priced toys.

ii. Lifestyles: Increased by 32.8% to ¥333 million due to growth in licensing revenues mainly for children’s apparel andstationery.
iii. FMCG*: Sales rose 87.4% to ¥207 million, as the expansion of food-related merchandise led to growth in licensing
revenues. *Fast Moving Consumer Goods- Daily consumer goods (food, beverages, etc.)
iv. Card games: Licensing revenue from existing card games remained unchanged from the previous fiscal year, at ¥162
million (down 11.2%YoY).
v. Others: Revenues from licensing of game collaborations and other products contributed to sales, rising 16% YoY to¥423 million.
(Unit: Millions of yen)

[Imaging and event] ¥615 million (+6.7% YoY)
In the imaging business, sales and distribution of programs in North America and other regions progressed. In the live-event
business, we promoted promotional measures ahead of the broadcasting and distribution of Ultraman: Rising and ULTRAMAN
ARC. In addition, we held a successful event in Shibuya, Tokyo to commemorate the 15th anniversary of Ultraman Zero, a
popular character, and many fans from not only domestic but also abroad visited and enjoyed the event.

3

Consolidated Financial Results for the Three Months Ended June 30, 2024

[Trends in major business revenues of TPD] (Unit: millions of yen)
Apr.-Jun. 2023

Apr.-Jun. 2024

(Previous Q1)(Current Q1)

Net sales of TPD

YoY change
(%)

1,922

2,419

+25.9%

1,413

1,845

＋30.6%

Overseas MD and license revenues

952

1,420

+49.1%

Domestic MD and license revenues

461

425

(7.7)%

576

615

+6.7%

MD and license revenues

Imaging and events revenues[Breakdown of TPD’s revenue by region] (Unit: millions of yen)
Apr.-Jun. 2023

Apr.-Jun. 2024

(Previous Q1)(Current Q1)

YoY change(%)

Overseas revenues

1,111

1,653

+48.8%

Domestic revenues

878

807

ሺ8.1)%

Digital Frontier Inc. is steadily developing large-scale anime movies and game-related projects on a consignment basis, inaddition to VFX production for Netflix titles such as City Hunter, leveraging its state-of-the-art CG video production
technology. Furthermore, we are accelerating initiatives in new fields by utilizing digital human technology which replicateshumans in CG in real life, such as commercials and deployment on metaverses, and a VTuber project cage based on digitaldolls produced with state-of-the-art 3DCG.

As a consequence, the content and digital business segment recorded consolidated results for the Q1 of this fiscal year of
net sales of ¥3,598 million, up 14.9% YoY, and operating profit of ¥1,048 million, up 33.6% YoY.

PS business segment
FIELDS implemented the aforementioned initiatives, resulting in PS sales results for the Q1 as shown in the table below. In
addition, ACE DENKEN saw a rise in installation work, supported by the benefits of joining our group, and also benefited
from a response to new banknote-compatible equipment, which boosted earnings in PS business.

As a consequence, PS business segment posted consolidated results for the Q1 of the fiscal year under review of net sales¥22,290 million, down 17.4% YoY, and operating profit of ¥2,057 million, up 9.3% YoY.

[PS unit sales in PS business segment]
Apr.-Jun. 2023

Apr.-Jun. 2024

(Previous Q1)(Current Q1)

YoY change (%)

Pachinko

42,909 units

8,615 units(79.9) %Pachislot

17,488 units

20,676 units+18.2%

60,397 units

29,291 units(51.5) %Total

4

Consolidated Financial Results for the Three Months Ended June 30, 2024

[Major sales titles for the FY2024]
Classification
Pachinko

Timing of sales

Month ofdelivery

Major sales titles (* PB: private brands)

Smart PS

Unit Sales(thousand units)

Q1-

Other series machines, increased production, etc.

Q2 onward

October

P Uchū Senkan Yamato 2202 Super Wave

April

Ｌ Godzilla vs EVANGELION (increased production)

〇

7

April

Smart Slot STRIKE THE BLOOD

〇

-

May

Ｌ Ultraman Tiga

〇

-

June

Smart slot STREET FIGHTER V The way of the challenger

〇

5

-

OthersJuly

Ｌ AKAME GA KILL! 2 (PB)〇

On saleOctober

Ｌ SHIN IKKITOUSEN〇

On saleQ1
Pachislot

Q2 onward

8
On sale

20

-

Total

29

*Sales figures for titles with less than 10,000 units for pachinko and less than 5,000 units for pachislot are not disclosed.

Other businessIn other business, consolidated results for the Q1 of the fiscal year under review were net sales ¥413 million and operating
profit ¥7 million.
(2) Earnings forecasts
As mentioned above, the business performance of each segment is steady, and the consolidated earnings forecast for the
fiscal year ending March 31, 2025 remains unchanged from that announced on May 14.
(Note 1) All figures in this report are based on published figures for each company and organization or our estimates.
(Note 2) Merchandise names in this report are trademarks or registered trademarks of each company.
(Note 3) [MD and license revenues] and [Imaging and events revenues] are partially revised and reflected.

5Consolidated Financial Results for the Three Months Ended June 30, 2024

(3) Overview of financial position(Assets)
Current assets decreased by ¥9,203 million from the end of the previous fiscal year to ¥55,644 million. This was mainly due
to a decrease in cash and deposits.
Property, plant and equipment increased by ¥0 million from the end of the previous fiscal year to ¥9,441 million.
Intangible assets decreased by ¥9 million from the end of the previous fiscal year to ¥2,393 million. This was mainly due toa decrease in goodwill.
Investments and other assets decreased by ¥85 million from the end of the previous fiscal year to ¥21,502 million. This was
mainly due to a decrease in investments in capital included in other.
Consequently, Assets decreased by ¥9,297 million from the end of the previous fiscal year to ¥88,982 million.
(Liabilities)
Current liabilities decreased by ¥1,935 million from the end of the previous fiscal year to ¥28,674 million. This was mainly
due to a decrease in income taxes payable.
Non-current liabilities decreased by ¥1,327 million from the end of the previous fiscal year to ¥10,355 million. This was
mainly due to a decrease in long-term borrowings.
Consequently, liabilities decreased by ¥3,263 million from the end of the previous fiscal year to ¥39,030 million.
(Net assets)
Net assets decreased by ¥6,034 million from the end of the previous fiscal year to ¥49,951 million. This was mainly due to adecrease in purchase of treasury shares, a decrease in retained earnings due to dividends paid, and an increase in retained
earnings due to the recording of quarterly profit attributable to owners of the parent.
(Analysis of cash flows)
Cash and cash equivalents (hereinafter referred to as “cash”) at the end of the Q1 of the current fiscal year decreased by¥12,872 million from the end of the previous fiscal year to ¥21,942 million.
(Cash flows from operating activities)
Net cash used in operating activities was ¥2,739 million, compared with net cash used of ¥436 million in the same period of
the previous fiscal year. This was mainly due to profit before income taxes of ¥3,328 million, an increase of inventories of¥2,858 million, and income taxes paid of ¥2,426 million.
(Cash flows from investing activities)
Net cash used in investing activities was ¥658 million, compared with net cash used of ¥1,093 million in the same period of
the previous fiscal year. This was mainly due to purchase of non-current assets of ¥245 million and purchase of shares ofsubsidiaries and associates of ¥137 million.
(Cash flows from financing activities)
Net cash used in financing activities was ¥9,476 million, compared with net cash used of ¥1,641 million in the same periodof the previous fiscal year. This was mainly due to purchase of treasury shares of ¥6,310 million and dividends paid of ¥2,554
million.

6

Consolidated Financial Results for the Three Months Ended June 30, 2024

2. Quarterly consolidated financial statements and important notes(1) Quarterly consolidated balance sheets(Unit: millions of yen)Previous consolidated fiscal year
(as of March 31, 2024)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets
Electronically recorded monetary claims - operating
Merchandise and finished goods
Work in process
Raw materials and supplies
Merchandise rights
Other
Allowance for doubtful accounts

Q1 of current consolidated fiscal year
(as of June 30, 2024)

34,914
10,391
2,744
142
6,296
3,816
2,123
4,451
(31)

22,042
11,385
3,411
532
8,663
3,583
2,329
3,732
(35)

64,84855,644

Land
Other

5,360
4,079

5,360
4,080

Total property, plant and equipment

9,440

9,441

1,395
1,007

1,325
1,067

2,402

2,393

Investments and other assets
Investment securities
Long-term loans borrowings
Other
Allowance for doubtful accounts

13,131
1,802
8,033(1,379)13,181
1,793
7,897(1,369)Total investments and other assets

21,58821,50233,43133,337

98,28088,982

10,961
1,460
6,000
2,400
2,414
758
216

11,127
1,557
6,000
2,031
522
441
-

Total current assets
Non-current assets
Property, plant and equipment

Intangible assets
Goodwill
Other
Total intangible assets

Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded monetary claims - operating
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and other officers)
Other

6,400

6,993

Total current liabilities

30,61028,674

5,503

4,191

169

32

1,447
1,331
3,230

1,474
1,332
3,325

11,682

10,35542,29339,030Non-current liabilities
Long-term borrowings
Provision for retirement benefits for directors(and other officers)
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
7

Consolidated Financial Results for the Three Months Ended June 30, 2024

(Unit: millions of yen)Previous consolidated fiscal year
(as of March 31, 2024)

Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income

Q1 of current consolidated fiscal year
(as of June 30, 2024)

7,948
7,390
33,942(1,631)

7,948
7,390
28,916(3,721)47,64940,534

38
2
37

43
3
36

78

82

Share acquisition rights
Non-controlling interests

203
8,055

247
9,087

Total net assets

55,98649,951

98,28088,982

Total liabilities and net assets

8Consolidated Financial Results for the Three Months Ended June 30, 2024

(2) Quarterly consolidated statements of income and consolidated statements of comprehensive income
Quarterly consolidated statements of income
Q1 of the year ending March 31, 2025
(Unit: millions of yen)
Q1 of previous consolidated fiscal year
(April 1, 2023 to June 30, 2023)

Q1 of current consolidated fiscal year
(April 1, 2024 to June 30, 2024)

Net sales
Cost of sales

30,33524,942

26,176
19,571Gross profit

5,392

6,604

Selling, general and administrative expenses

3,367

4,085

Operating profit

2,025

2,519

2
128
13
44

4
7
19
725
78

188

834

14
5
4
3

17
6
1

27

25

Non-operating income
Interest income
Dividend income
Purchase discounts
Share of profit of entities accounted for using equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Depreciation
Other
Total non-operating expenses
Ordinary profit

2,185

3,328

Extraordinary income
Gain on sale of non-current assets

00

Total extraordinary income

0

0

2

0

2

0

2,183

3,328

543

711

1,640

2,617

255

920

1,384

1,696

Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

9Consolidated Financial Results for the Three Months Ended June 30, 2024

Quarterly consolidated statements of comprehensive income
Q1 of the year ending March 31, 2025
(Unit: millions of yen)
Q1 of previous consolidated fiscal year Q1 of current consolidated fiscal year
(April 1, 2023 to June 30, 2023)(April 1, 2024 to June 30, 2024)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income

1,640

2,617

1,166
1
(1)

5
1
(1)

-

(0)

1,166

5

Comprehensive income

2,807

2,622

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income related to non-controlling interests

2,548
258

1,701
921

10

Consolidated Financial Results for the Three Months Ended June 30, 2024

(3) Quarterly consolidated statements of cash flows(Unit: millions of yen)
Q1 of previous consolidated fiscal year Q1 of current consolidated fiscal year
(April 1, 2023 to June 30, 2023)(April 1, 2024 to June 30, 2024)

Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Amortization of goodwill
Investments in capital depreciation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors (and other officers)
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using equity method
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in accounts receivable - other
Increase (decrease) in trade payables
Increase/decrease in consumption taxes
payable/consumption taxes refund receivable
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes refund (paid)

2,183
189
71
176
(18)
(141)
(159)
15
(131)
14
(13)
1,330
(3,610)(2,359)
3,690

3,328
238
70
111
(5)
(316)
(216)
25
(12)
17
(725)
(1,661)(2,858)
771
282

(992)

(717)

668

1,065

914

(603)

130
(14)
(1,467)308(17)(2,426)

Net cash provided by (used in) operating activities(436)(2,739)Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Purchase of shares of subsidiaries and associates
Loan advances
Proceeds from collection of loans receivable
Other, net

(342)
(93)
(389)
13
(141)
(220)
2
78

(170)
0
(74)
(17)
9
(137)
(11)
21
(277)

Net cash provided by (used in) investing activities(1,093)(658)

Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Other, net

651
750(1,112)(0)(1,922)(7)(599)(6,310)(2,554)(11)

Net cash provided by (used in) financing activities(1,641)(9,476)

Cash flows from financing activities

Effect of exchange rate change on cash and cash equivalents

1

1

Net increase (decrease) in cash and cash equivalents(3,169)(12,872)

Cash and cash equivalents at beginning of period

36,497

34,814

Cash and cash equivalents at end of period

33,327

21,942

11

Consolidated Financial Results for the Three Months Ended June 30, 2024

(4) Notes regarding the quarterly consolidated financial statements(Notes regarding the operation of the company as a going concern)
Not applicable.

(Notes regarding occurrence of significant change in amount of shareholders’ equity)(Purchase of treasury shares)
At board of directors held on May 14, 2024, we passed a resolution regarding matters related to purchase of treasury shares inaccordance with the provisions of Article 156 of the Companies Act as applied by replacing certain terms pursuant to theprovisions of Article 165, Paragraph 3 of the same Act, and made a purchase of treasury shares of 3,500,000 shares as of May
15, 2024. Consequently, treasury shares increased b¥6,310 million in the Q1 of the current fiscal year.
(Cancellation of treasury shares)
At board of directors held on May 14, 2024, we resolved to conduct cancellation of treasury shares in accordance with Article
178 of the Companies Act, and on May 31, 2024, we cancelled 3,970,850 shares. Consequently, retained earnings and treasury
shares decreased by ¥4,221 million in the Q1 of the current fiscal year.
Consequently, treasury shares at the end of the Q1 under review was ¥3,721 million.
(Application of the accounting method specific to quarterly consolidated financial statements)
Calculation of tax expenses
Tax expenses are calculated by reasonably estimating the effective tax rate after the application of tax effect accounting toincome before income taxes for the consolidated fiscal year, including the Q1 under review, and multiplying the quarterly
profit or loss before income taxes by this estimated effective tax rate.
(Changes in accounting policies)(Application of the Accounting Standard for Income taxes - current, etc.)
The “Accounting Standard for Current Income Taxes (ASBJ Statement No. 27, October 28, 2022; hereinafter referred to as the“Revised Accounting Standard, 2022”) and others have been applied from the beginning of the Q1 of the current fiscal year.
Revisions to the classification of income taxes for recording (other comprehensive income taxation) are made in accordancewith the transitional treatment stipulated in Article 20-3 of the Revised Accounting Standard 2022 and the transitional treatment
stipulated in Article 65-2 (2) of the “Guidance on Accounting Standard for Tax Effect Accounting” (ASBJ Guidance No. 28,
October 28, 2022; hereinafter referred to as the “2022 Revised Implementation Guidance”). This change in accounting policy had
no impact on the quarterly consolidated financial statements.
In addition, the Company has applied the 2022 Revised Implementation Guidance from the beginning of the Q1 of the current
fiscal year with respect to revisions related to the treatment in the consolidated financial statements for deferring gains and losses
on sales of shares of subsidiaries, etc. arising from sales of subsidiaries, etc. among consolidated companies for tax purposes.
These changes in accounting policies are applied retrospectively, and the quarterly consolidated financial statements andconsolidated financial statements for the previous fiscal year and for the previous fiscal year have been applied retrospectively.
As a consequence, compared with before the retroactive application, “Other” in investments and other assets for the previous
fiscal year increased by 140 million yen and “Retained earnings” increased by 140 million yen.
There was no impact on ordinary profit, profit before income taxes, quarterly profit and quarterly profit attributable to ownersof the parent in the consolidated statement of income for the previous quarter and the Q1 of the current fiscal year.

12Consolidated Financial Results for the Three Months Ended June 30, 2024

(Segment information, etc.)[Segment information]I.

Three months ended June 30, 2023 (April 1, 2023 - June 30, 2023)
Information on net sales and profit (loss) by reporting segment(Unit: millions of yen)
Reporting segments
Content anddigitalPS businessbusiness

Other(Note 1)

Total

Adjusted
amount(Note 2)

Total

Carrying
value(Note 3)

Net sales
Net sales to externalcustomers
Intersegment net sales ortransfers

3,031

26,90329,934400

30,335－30,335

99

71

171

2

173

(173)

－

Total

3,131

26,97430,105403

30,509(173)

30,335

785

1,882

2,667

9

2,677

(652)

2,025

Segment profit (loss)(Note) 1. “Other” is a business segment that is not included in reporting segments and includes fitness business, etc.
2. The ¥(652) million of adjustment to segment profit includes the elimination of inter-segment transactions of ¥(10)
million and corporate expenses of ¥(641) million not allocated to each reporting segment.
3. Segment profit (loss) is adjusted with operating profit in the quarterly consolidated statements of income.
II.

Three months ended June 30, 2024 (April 1, 2024 - June 30, 2024)
i.

Information on net sales and profit (loss) by reporting segment(Unit: millions of yen)
Reporting segments
Content anddigitalPS businessbusiness

Other(Note 1)

Total

Total

Adjusted
amount(Note 2)Carrying
value(Note 3)

Net sales
Net sales to externalcustomers
Intersegment net sales ortransfers

3,522

22,24025,762413

26,176－

26,176

76

50

126

－

126

(126)

－

Total

3,598

22,29025,889413

26,303(126)

26,176

1,048

2,057

3,106

7

3,114

(594)

2,519

Segment profit (loss)(Note) 1. “Other” is a business segment that is not included in reporting segments and includes fitness business, etc.
2. The ¥(594) million of adjustment to segment profit includes the elimination of inter-segment transactions of ¥0 million andcorporate expenses of ¥(594) million not allocated to each reporting segment.
3. Segment income is adjusted with operating profit in the quarterly consolidated statements of income.

13