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

Summary(Translation)
November 13, 2023

TSUBURAYA FIELDS HOLDINGS INC.
Consolidated Financial Results for the Six Months Ended September 30, 2023 (Under Japanese GAAP)
Company name:

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

Listing:
Securities code:
URL:
Representative:
Inquiries:
Telephone:

November 14, 2023
Yes
Yes (for analysts and institutional investors)

Scheduled date to file quarterly securities report:
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results briefing:(Yen amounts are rounded down to millions)

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

Operating profit

Six months ended
September 30, 2023
September 30, 2022

Millions of yen

%
58.7
13.1

(Note) Comprehensive income

For the six months ended September 30, 2023: ¥ 3,655 million [9.9%]
For the six months ended September 30, 2022: ¥ 3,326 million [528.7%]

67,01542,230Millions of yen

5,370
3,534

Profit attributable toowners of parent

Ordinary profit

%
52.0
885.9

%
57.4
528.4

Millions of yen

5,907
3,753

%
62.6
702.7

Millions of yen

4,123
2,536

Diluted earnings
per share

Basic earnings
per share
Six months ended
September 30, 2023

Yen

Yen

63.03

62.82

September 30, 2022

39.22

38.91

(Note) The Company conducted a 2-for-1 stock split of common shares on March 22, 2023. The basic earnings per share, and the diluted earnings per share are calculatedon the assumption that the stock split was conducted at the beginning of the previous fiscal year.

(2) Consolidated financial position
Total assets
As of
September 30, 2023

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen

95,841

43,581%
41.9

41,817

48.4

March 31, 2023

80,893(Reference) Equity

As of September 30, 2023: ¥ 40,115 million

As of March 31, 2023: ¥ 39,120 million

2. Cash dividends
Annual dividends
Q1-endFiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024
Fiscal year ending
March 31, 2024 (Forecast)

Q2-endFiscalyear-end

Q3-end

Total

Yen

Yen

Yen

Yen

Yen

－

0.00

－

30.00

30.00

－

0.00
－

30.00

30.00

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

3. Forecast of consolidated earnings for the fiscal year ending March 31, 2024 (April 1, 2023 to March 31, 2024)(Percentages indicate YoY changes.)

Net sales
Full-year

Operating profit

Millions of yen%

Millions of yen

123,000

5.0

12,000

Profit attributable toowners of parent

Ordinary profit

Basic earnings
per share% Millions of yen%

Millions of yen

%

Yen

9.6

8.7

8,500

3.4

129.97

12,200(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, 2023 (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: None(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)

(ii)

(iii)

Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2023

69,400,000 shares

As of March 31, 2023

69,400,000 shares

Number of treasury shares at the end of the period
As of September 30, 2023

3,972,849 shares

As of March 31, 2023

4,001,382 shares

Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2023

65,419,983 shares

Six months ended September 30, 2022

64,663,366 shares(Note) The Company conducted a 2-for-1 stock split of common shares on March 22, 2023. The number of issued shares at the end of
the period (including treasury shares), the number of treasury shares at the end of the period, and the average number of shares
outstanding during the period are calculated on the assumption that the stock split was conducted at the beginning of the previous
fiscal year.
* Quarterly financial results reports are exempt from quarterly review by certified public accountants or an audit corporation.
* 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.
Please refer to 1. Qualitative information on the quarterly financial results (1) Analysis of operating results on page two and (2)Consolidated earnings forecasts on page four.
(How to obtain supplementary materials on financial results)
The Company is planning to hold a financial briefing (online) for analysts and institutional investors on Tuesday, November 14,
2023. Materials used at that briefing will be posted on the Company’s website after the briefing as soon as possible.

Consolidated Financial Results for the Six Months Ended September 30, 2023

Table of contents of attached document

1. Qualitative information on the quarterly financial results ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 2(1) Analysis of operating results ...........................................................................................................................2(2) Consolidated earnings forecasts ......................................................................................................................4(3) Overview of financial position........................................................................................................................5
2. Quarterly consolidated financial statements and important notes ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 6(1) Quarterly consolidated balance sheets ............................................................................................................6(2) Quarterly consolidated statements of income and consolidated statements of comprehensive income ..........8(3) Quarterly consolidated statements of cash flows ..........................................................................................10(4) Notes regarding the quarterly consolidated financial statements .................................................................. 11(Notes regarding the operation of the company as a going concern) ............................................................. 11(Notes regarding occurrence of significant change in amount of shareholders’ equity) ................................. 11(Application of the accounting method specific to quarterly consolidated financial statements) ................... 11(Segment Information) ................................................................................................................................... 111

Consolidated Financial Results for the Six Months Ended September 30, 2023

1.

Qualitative information on the quarterly financial results(1)

Analysis of operating results
During the second quarter of the fiscal year under review, the Japanese economy was on a gradual uptrend amid progress toward
overcoming the COVID-19 pandemic and normalization of socioeconomic activities. In leisure market, the economy has been
underpinned mainly by the service industry, where the flow of people has returned and inbound spending by tourists visiting
Japan during the summer holidays has recovered to pre-COVID-19 levels.
Our group launched a three-year medium-term management plan ending March 31, 2026. In order to realize the group’s
corporate philosophy of The Greatest Leisure for All People, we are steadily pushing ahead with initiatives aimed at becoming a
global content business company. In the growth area of the content and digital business, the group aims to establish the Tsuburaya
brand in the China and ASEAN regions and increase the value of its IP by virtue of a three-pronged cycle of developing visual
products, developing theme parks, and developing merchandising. In pachinko/pachislot (hereinafter, PS) business, which serves
as our earnings base, in order to “contribute to the sound development of PS sector as a leisure” as the mission of only nationwide
distributor, we provide manufacturers with a vast amount of qualitative and quantitative information gathered from fans and halls
nationwide, as well as IP that leads to hits that fans want. For pachinko halls, we provide a stable supply of merchandise that is
supported by fans, and provide information on the needs of fans gathered from around the country, customized to each region.
Through these measures, we ultimately aim to build a system that can provide high-quality PS machine titles at a rate of one title
per month.
As a result of business activities in line with the medium-term management plan, both sales and profits increased significantly
YoY. By continuing to implement various measures in accordance with the current medium-term management plan, we will
establish a solid management foundation and aim for sustainable growth.
Consolidated financial results for the fiscal year under review were net sales ¥67,015 million (up 58.7% YoY), operating income¥5,370 million (up 52.0% YoY), ordinary income ¥5,907 million (up 57.4% YoY), and profit attributable to owners of parent¥4,123 million (up 62.6% YoY). Since Daikoku Denki Co., Ltd. became an equity-method affiliate in the second quarter of the
fiscal year under review, ¥395 million was recorded as share of profit of entities accounted for using equity method.
The overview of each segment is as follows.

Content and digital business segment[Table 1: Change in business revenues of Tsuburaya Productions Co., Ltd. (hereinafter, TPC)](Unit: Millions of yen)

Apr.-Sep. 2022
(Previous H1)
1,294

Apr.-Sep. 2023
(Current H1)
2,348

China

1,026

2,103

+104.9 %Domestic MD and license revenue

1,009

1,085

+7.5 %

Total MD and license revenue

2,304

3,434

+49.0 %

Imaging business revenue

1,299

1,279

(1.5) %

Overseas MD and license revenue

YoY change+81.4 %

Chinese MD licensing revenue: ¥2.1 billion (up 104.9% YoY)
Trading cards continued to drive earnings, while block toys also performed well, and in the fiscal year under review, Chinese MD
licensing revenues doubled YoY.
In particular, as a result of efforts from last year to acquire new licensees in order to expand the non-toy categories, the non-toy
categories such as apparel and stationery expanded significantly from the same period of the previous fiscal year.
Domestic MD licensing revenue: ¥1.08 billion (+7.5% YoY)
With the Ultra Hero’s EXPO 2023 Summer Festival, which attracted more than 70,000 visitors, as well as other events and live
shows following the lifting of restriction movement, the number of visitors greatly exceeded the previous year’s level, and productsales were strong. The original merchandise was also popular at Seibuen Amusement Park’s attraction, which opened in July.
Besides Ultraman, merchandise related to the GRIDMAN UNIVERSE, which was released in March and had an audience of 520,000
people, performed well.
2

Consolidated Financial Results for the Six Months Ended September 30, 2023

As a result, the content and digital business segment reported a YoY increase of 22.5% in net sales, to ¥7,409 million, and anincrease of 22.1% in operating profit, to ¥1,980 million.
PS business segment
FIELDS CORPORATION recorded strong sales of 85,000 pachinko machines, 40,000 pachislot machines, and 126,000 totalmachines (+41,000 machines YoY) due to strong sales of titles during the fiscal year under review. The main sales titles are shownin Table 3 below.
[Table 2: PS machine unit sales in PS business segment](Unit: machines)

Apr.-Sep. 2022
(Previous H1)

Apr.-Sep. 2023
(Current H1)

Increase/decrease

Pachinko

56,81485,748+28,934

Pachislot

27,54440,277+12,733

84,358126,025+41,667

Total[Table 3: Major sales titles up to the Q2 of the fiscal year ending March 31, 2024]
Classification

Major sales titles
P CODE GEASS Lelouch of the Rebellion -Rebellion to Re; surrection-

Pachinko

Pachislot

P Hyakka-Ryoran(Unit: machines)
Month ofdeliveryMay

Number of units posted
20,000Sep.

10,000

Other, series machines, resale, etc.

-

55,000L BERSERK MusouJun.

14,000S The Ambition of Oda Nobuna -countywide edition-

Jul.

6,000

L Evangelion -Genesis of Destiny-

Oct.

16,000

Others

-

3,000

Total

85,00040,000126,000

In addition to the above, we also resold 24,000 units of pachinko machine, NEON GENESIS EVANGELION -Roar for
tomorrow-, which have earned strong support from fans as the hall's core title, and 10,000 units of light specs that make the title
easier to play.
We are making steady progress in various initiatives aimed at achieving the goals of our medium-term management plan. These
include acquiring other and new IP, and developing and strengthening our PS machine manufacturing system.
As a result, PS business segment reported a YoY increase of 67.0% in net sales to ¥59,022 million and a YoY increase of 133.1%
in operating profit to ¥4,506 million.
Other business
Other business posted a net sales of ¥805 million and an operating profit of ¥20 million.

3

Consolidated Financial Results for the Six Months Ended September 30, 2023

(2)

Consolidated earnings forecasts
Content and digital business segment
In order to achieve the goals of the medium-term management plan, we are working to solidify our footing in the current
fiscal year in line with our plan, which looks ahead to three years from now, as described below.
Netflix and TPC jointly produced a CG animated feature film, which will be released in 2024 that was titled ULTRAMAN:
RISING. The CG animation production is handled by Industrial Light & Magic (established by George Lucas with three Emmy
Awards and 15 Academy Award for Visual Effects), which has a proven track record in Star Wars, etc. With this video product,
we can expect to acquire new fans in North America, where Ultraman is still less recognized. In May, we established a subsidiaryin Los Angeles in preparation for merchandise expansion in North America in conjunction with this video product, and arepreparing with partner companies.
In October, Ultraman area opened in the newly established Zhengzhou Ocean Park in Zhengzhou. Ultraman area will be thefirst in China to have a number of attractions under the theme of Ultraman and KAIJU, and by the beginning of next year,
Ultraman town will have a hotel, restaurants, shops, and other facilities located in this theme park. In December, Tokyo DomeCity plans to open an interactive VR attraction called “ULTRASEVEN THE ATTRACTION”
In October of this year, we announced the business of a new Ultraman card game with an eye to global expansion in order tomake a full-scale entry into the card game market, which continues to expand globally. Beginning with AFA (Anime FestivalAsia) to be held in Singapore on November 24 and 25, it will be gradually unveiled in countries around the world. Card games,
which are currently popular in China, have differing merchandise designs and target users, so we will continue to aggressively
develop them.
In the digital service area, we are currently planning and developing various games utilizing the contents of Ultraman series
and KAIJU, and we plan to release some game apps worldwide during the next fiscal year.
In addition, as a measure to expand sales channels to meet diverse consumer needs, we have begun considering thedevelopment of EC in foreign countries.
Digital Frontier Inc.
Digital Frontier Inc., which boasts cutting-edge video production technology, has received steady orders for Netflix, largescale anime movies and gaming projects, and is also aggressively developing web services using digital assets.
PS business segment
In PS machine industry, hit machines appeared in 6.5 regulation machine and smart pachislot, which were introduced lastyear, and pachislot is leading the market as a whole. Against this backdrop, in pachinko, pachinko halls and fans are expecting
titles to be launched in the H2 of the fiscal year, which is a hot topic, in order to revitalize the market.
FIELDS CORPORATION are currently selling two pachinko titles and two pachislot titles for the Q3. The latest series
Pachinko EVANGELION:3.0＋1.0 has already sold out, with orders greatly exceeding the sales plan of 60,000 units. We also
sold 18,000 units of our first private-brand smart pachislot L Ring ni kakero1 V, which exceeded our forecast. Other sales of
titles and Q4 sales preparations are progressing as planned.
At this time, we were able to achieve our consolidated results forecast for the year ending March 31, 2024, without any
changes from the content published on May 15.

(Note 1) All figures in this report are based on our estimates.
(Note 2) Product names in this report are trademarks or registered trademarks of each company.

4Consolidated Financial Results for the Six Months Ended September 30, 2023

(3)

Overview of financial position(Assets)
Current assets increased by ¥12,367 million from the end of the previous fiscal year to ¥71,236 million. This was mainly due
to an increase in trade receivable.
Property, plant and equipment increased by ¥265 million from the end of the previous fiscal year to ¥5,560 million. This was
mainly due to an increase in buildings and structures.
Intangible assets decreased by ¥170 million from the end of the previous fiscal year to ¥2,717 million. This was mainly due
to a decrease in goodwill.
Investments and other assets increased by ¥2,485 million from the end of the previous fiscal year to ¥16,326 million. Thiswas mainly due to an increase in investment securities.
Consequently, assets increased by ¥14,948 million from the end of the previous fiscal year to ¥95,841 million.
(Liabilities)
Current liabilities increased by ¥12,120 million from the end of the previous fiscal year to ¥42,609 million. This was mainly
due to an increase in trade payable.
Non-current liabilities increased ¥1,064 million from the end of the previous fiscal year to ¥9,650 million. This was mainly
due to an increase in long-term borrowings.
Consequently, liabilities increased by ¥13,184 million from the end of the previous fiscal year to ¥52,260 million.
(Net assets)
Net assets increased by ¥1,764 million from the end of the previous fiscal year to ¥43,581 million. This was mainly due to anincrease in retained earnings, a decrease in valuation difference on available-for-sale securities, and an increase in noncontrolling interests.
(Analysis of cash flows)
Cash and cash equivalents (hereinafter referred to as “cash”) at the H1 of the fiscal year under review decreased by ¥8,567
million from the end of the previous fiscal year to ¥27,929 million.
(Cash flows from operating activities)
Net cash used in operating activities was ¥2,448 million (¥2,083 million used in the same period of the previous fiscal year).
This was mainly attributable to profit before income taxes of ¥5,886 million, an increase in trade receivables of ¥15,522 million,
an increase in trade payables of ¥14,985 million, an increase in inventories of ¥4,078 million, an increase in accounts receivable-other of ¥2,098 million and income tax paid of ¥1,587 million.
(Cash flows from investing activities)
Net cash used in investing activities was ¥4,675 million (¥1,462 million used in the same period of the previous fiscal year).
This was mainly due to purchase of shares of entities accounted for using the equity method of ¥3,167 million, purchase ofnon-current assets of ¥744 million, purchase of investment securities of ¥411 million and loan advances of ¥320 million.
(Cash flows from financing activities)
Net cash used in financing activities was ¥1,443 million (¥4,291 million used in the same period of the previous fiscal year).
This was mainly due to dividends paid of ¥1,959 million, repayments of long-term borrowings of ¥1,877 million, proceedsfrom long-term borrowings of ¥2,950 million and net decrease in short-term borrowings of ¥549 million.

5

Consolidated Financial Results for the Six Months Ended September 30, 2023

2. Quarterly consolidated financial statements and important notes(1) Quarterly consolidated balance sheets
Previous consolidated
fiscal year
(as of March 31, 2023)
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
Total current assets
Non-current assets
Property, plant and equipment
Land
Other
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets(Unit: Millions of yen)Q2 of current consolidated
fiscal year
(as of September 30, 2023)

36,597
10,936
1,957
339
1,902
1,997
1,734
3,441
(37)

28,02927,891
523
546
4,408
2,695
2,312
4,850
(22)

58,86871,236

1,929
3,365

1,929
3,630

5,295

5,560

1,677
1,210

1,535
1,182

2,888

2,717

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

7,959
681
5,407
(207)

10,499
998
5,028
(199)

Total investments and other assets

13,841

16,32622,02424,60580,893

95,841

12,402
6,549
2,794
1,358
273
159
6,952

27,388
6,000
2,767
280
281
5,891

Total current liabilities

30,48942,609Non-current liabilities
Long-term borrowings
Retirement benefit liability
Asset retirement obligations
Other

3,994
862
1,213
2,515

5,093
893
1,146
2,517

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

Total non-current liabilities
Total liabilities

6

8,585

9,650

39,07552,260Consolidated Financial Results for the Six Months Ended September 30, 2023

Previous consolidated
fiscal year
(as of March 31, 2023)
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares(Unit: Millions of yen)Q2 of current consolidated
fiscal year
(as of September 30, 2023)

7,948
7,390
24,217(1,644)

7,948
7,390
26,373(1,632)

37,91240,079

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans

1,194
1
12

26
1
8

Total accumulated other comprehensive income

Total shareholders’ equity

1,208

36

Share acquisition rights
Non-controlling interests

45
2,651

115
3,350

Total net assets

41,81743,58180,893

95,841

Total liabilities and net assets

7

Consolidated Financial Results for the Six Months Ended September 30, 2023

(2) Quarterly consolidated statements of income and consolidated statements of comprehensive income
Quarterly consolidated statements of income
H1 of the year ending March 31, 2024
H1 of previous consolidated
fiscal year

(Unit: Millions of yen)
H1 of current consolidated
fiscal year

(April 1, 2022 to September 30, 2022)(April 1, 2023 to September 30, 2023)

Net sales
Cost of sales

42,23032,54267,01554,666Gross profit

9,687

12,348Selling, general and administrative expenses

6,153

6,977

Operating profit (loss)

3,534

5,370

1
2
58
114
10
105

6
128
11
400
8
46

292

602

44
6
2
20

28
2
35

Non-operating income
Interest income
Dividend income
Purchase discounts
Share of profit of entities accounted for using equity method
Distributions from investments
Other
Total non-operating income
Non-operating expenses
Interest expenses
Provision of allowance for doubtful accounts
Financing expenses
Other
Total non-operating expenses

72

65

3,753

5,907

Extraordinary income
Gain on sale of non-current assets

10

Total extraordinary income

1

0

0
7

7
13
-

Ordinary profit (loss)

Extraordinary losses
Loss on retirement of non-current assets
Impairment losses
Loss on sale of membership
Total extraordinary losses
Profit (loss) before income taxes

7

21

3,747

5,886

Income taxes

435

1,061

Profit (loss)

3,311

4,825

Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent

8

775

701

2,536

4,123

Consolidated Financial Results for the Six Months Ended September 30, 2023

Quarterly consolidated statements of comprehensive income
H1 of the year ending March 31, 2024
H1 of previous consolidated
fiscal year

(Unit: Millions of yen)
H1 of current consolidated
fiscal year

(April 1, 2022 to September 30, 2022)(April 1, 2023 to September 30, 2023)

Profit (loss)
Other 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

3,311

4,825

14
0
(1)

(1,167)
0
(2)

-

0

14

(1,169)Comprehensive income

3,326

3,655

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

2,550
775

2,952
702

9

Consolidated Financial Results for the Six Months Ended September 30, 2023

(3) Quarterly consolidated statements of cash flows
H1 of previous consolidated
fiscal year

Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Amortization of goodwill
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
Share of loss (profit) of entities accounted for using
equity method
Interest expenses
Depreciation of investments in capital
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in accounts receivable - other
Increase (decrease) in trade payables
Increase (decrease) in liabilities related to payabletransactions
Increase/decrease in consumption taxes
payable/consumption taxes refund receivable
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes refund (paid)
Net cash provided by (used in) operating activities
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
Purchase of shares of entities accounted for using equity
methodPayments for investments in capital
Loan advances
Proceeds from collection of loans receivable
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Purchase of shares of subsidiaries not resulting in change
in scope of consolidation
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of period
10(Unit: Millions of yen)
H1 of current consolidated
fiscal year

(April 1, 2022 to September 30, 2022)(April 1, 2023 to September 30, 2023)

3,747
363
126
3
11

5,886
426
142
(22)
8

(46)

(159)

28
(3)

26
(134)

(114)

(400)

44
289
(5,377)
158
(850)
2,721

28
338
(15,522)(4,078)(2,098)14,985

(697)

453

46

(1,222)(1,912)(1,460)
3
(44)
(581)
(2,083)

376
(966)
134
(28)
(1,587)(2,448)

(439)
4
(115)
(380)
23
-

(596)
0
(147)
(411)
37
(141)

-

(3,167)

(528)
(33)
13
(7)

(320)
4
66

(1,462)(4,675)(818)(2,508)
(0)
(645)

(549)
2,950
(1,877)(0)(1,959)

(306)

-

(12)
(4,291)
0(7,836)32,304
24,467(7)(1,443)(0)(8,567)36,49727,929

Consolidated Financial Results for the Six Months Ended September 30, 2023

(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)
Not applicable.
(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 to
profit before income taxes for the consolidated fiscal year including the Q2 under review, and multiplying before income taxes
by this estimated effective tax rate.
(Segment Information)[Segment Information]
I. Previous H1of the fiscal year (from April 1, 2022 to September 30, 2022)
Net sales and profit (loss) by reportable segment(Millions of yen)
Quarterly
consolidated
Adjustedstatement ofincomeamountAmount(Note) 2
recorded(Note) 3

Reportable Segments
Content anddigitalPS businessbusiness

Total

Other
(Note) 1

Total

Net sales
Net sales to externalcustomers
Intersegment net sales
or transfers

5,770

35,332

41,103

1,127

42,230-42,230

276

1

277

0

278

(278)

-

Total

6,046

35,334

41,3801,12742,508(278)

42,230

Segment profit

1,623

1,933

3,556

33

3,589

(55)

3,534

(Note) 1. “Other” is a business segment that is not included in reportable segments and includes fitness business, etc.
2. ¥(55) million in adjustments to segment profit includes an elimination of ¥(55) million for intersegment transactions.
3. Segment profit has been adjusted with the operating profit of the quarterly consolidated statement of income.
II. Current H1 of the fiscal year (from April 1, 2023 to September 30, 2023)
1. Net sales and profit (loss) by reportable segment(Unit: Millions of yen)
Quarterly
consolidated
Adjustedstatement ofincomeamountAmount(Note) 2
recorded(Note) 3

Reportable Segments
Content anddigitalPS businessbusiness

Total

Other
(Note) 1

Total

Net sales
Net sales to externalcustomers
Intersegment net sales
or transfers

7,336

58,87866,214800

67,015-67,015

72

144

216

5

221

(221)

-

Total

7,409

59,022

66,431

805

67,236(221)

67,015

Segment profit

1,980

4,506

6,486

20

6,507

(1,136)

5,370(Note) 1. “Other” is a business segment that is not included in reportable segments and includes fitness business, etc.
2. ¥(1,136) million in adjustments to segment profit includes an elimination of inter-segment transactions of ¥53 million
and a ¥(1,190) million in corporate expenses that are not allocated to the respective reportable segments.
3. Segment profit has been adjusted with the operating profit of the quarterly consolidated statement of income.

11

Consolidated Financial Results for the Six Months Ended September 30, 2023

2. Changes in reportable segments
As a result of the transition to a holding company structure implemented on October 3, 2022, we have changed from theprevious a single segment to the two reportable segments of the content and digital business and PS business from the Q3 ofthe previous fiscal year.
Segment information for the second quarter of the previous fiscal year has been prepared based on the classification ofreportable segments after the change.

12