FY2022

Q3 Financial Results

Briefing Material

Bushiroad Inc.

Securities code: 7803

May 13, 2022

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Table of Contents

  • Third Quarter of the Fiscal Year 2022 Financial Results Summary/Overview
    • Financial Results Summary
    • Summary Income Statement
    • Regarding Application of Accounting Standards to Earnings Recognition Principles
    • Consolidated Performance
    • Sales and Operating Profit by Segment
    • Sales Trends by Segment
    • Topics
  • Consolidated Performance Forecasts for FY2022
  • Upcoming Activities
  • Appendix

NOTICE

The Company has changed its fiscal

year end

from July 1 to June 30

since the previous term (FY2021).

Thus, FY2021 was

11 months

from August 1, 2020 to June 30,

2021.

In this material, because of difference of length of periods between FY2022 and FY2021, YoY comparisons are shown only as reference.

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2

FY2022

Third Quarter

Financial Results

Summary/Overview

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3

FY2022 Q3Financial Results Summary

Sales and profit increased year-on-year with better segment profit in the Live IP business

  • In the Digital IP business, the number of products released in the TCG Dept. was less than in the previous quarter, so even though sales and profit remained at a high level, they dropped from the previous quarter. In addition, due to the increase in the number of games published in the third quarter, both sales and profit in the Games Dept. were significantly affected by the application of accounting standards for revenue recognition. As a result, sales increasedbut profit decreasedsales and profits decreased year-on- year. from the previous quarter, and both sales and profits decreased year-on-year.
  • In the Live IP business, sales and profit in the Sports Dept. increased from the previous quarter and from the same period of the previous year with segment profit returning to the blackaided by the New Japan Pro-Wrestlingand STARDOM big matches held in the third quarter.

FY22 Q3

FY21 Q3

+/-

+/- %

FY22 Q2

+/- amount

+/- %

Unit: million yen

amount

(1) (Jan-Mar 2022)

(2) (Feb-Apr 2021)

(3) / (2)

(4) (Oct-Dec 2021)

(1) - (4) = (5)

(5) / (4)

(1) - (2) = (3)

Net sales

9,449

9,127

+322

+3.5%

9,089

+360

+3.9%

Operating profit

264

264

0

0%

381

-117

-30.7%

Ordinary profit

627

361

+266

+73.6%

911

-284

-31.1%

Quarterly net profit

195

30

+165

+550.0%

701

-506

-72.1%

attributable to owners of parent

Digital IP business

Net sales

6,803

6,940

-137

-1.9%

6,785

+18

+0.2%

Segment profit

197

348

-151

-43.3%

459

-262

-57.0%

Live IP business

Net sales

2,645

2,187

+458

+20.9%

2,304

+341

+14.8%

Segment profit

63

-87

+150

-62

+125

  • From Fiscal Year 2022, the company has changed its accounting policy (accounting standards with regard to revenue recognition, etc.) (for details, see Page 6). We have not changed our disclosure methodology in tandem with this change in policy as regards the period up to Fiscal Year 2021.

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4

Summary Income Statement (Consolidated)

  • Appropriate control of SG&A expenses, especially advertising expenses, has continued, with all sales and profit items for the cumulative third quarter maintaining a pace significantly higher than in the same period of the previous year.
  • 211 million yen in non-operating profit as subsidy for J-LODlive*1 and others was recorded.
  • An extraordinary loss of 149 million yenwas recorded as an impairment loss on goodwill for Frontwing Lab. Inc.

Quarter

Total

Unit: million yen

FY22 Q3

FY21 Q3

+/-

+/- %

FY22 Q3

FY21 Q3

+/-

+/- %

amount

(1) (Jul 2021

(2) (Aug 2020

amount

(1) (Jan-Mar 2022)

(2) (Feb-Apr 2021)

(3) / (2)

(3) / (2)

- Mar 2022)

- Apr 2021)

(1) - (2) = (3)

(1) - (2) = (3)

Net sales

9,449

9,127

+322

+3.5%

29,023

27,154

+1,869

+6.8%

Gross profit

3,060

3,021

+39

+1.2%

10,072

9,647

+425

+4.4%

SG&A expenses

2,796

2,756

+40

+1.4%

8,104

9,223

-1,119

-12.1%

Advertising

980

1,141

-161

-14.1%

2,723

4,435

-1,712

-38.6%

expenses

Promotion

222

282

-60

-21.2%

767

658

+109

+16.5%

expenses

Operating profit

264

264

0

0%

1,967

423

+1,544

365.0%

Operating profit

2.7%

2.8%

-0.1pt

-

6.7%

1.5%

+5.2pt

-

margin

Ordinary profit

627

361

+266

+73.6%

3,208

524

+2,684

512.2%

Ordinary profit

6.6%

3.9%

+2.7pt

-

11.0%

1.9%

+9.1pt

-

rate

attributable to owners of parent

195

30

+165

+550.0%

2,033

-161

+2,194

-

Quarterly net profit

Note:1. Content Global Demand Creation Promotion and Infrastructure Development Project Subsidy

  • From Fiscal Year 2022, the company has changed its accounting policy (accounting standards with regard to revenue recognition, etc.) (for details, see Page 6). We have not changed our disclosure methodology in tandem with this change in policy as regards the period up to Fiscal Year 2021.

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Bushiroad Inc. published this content on 13 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 June 2022 06:52:04 UTC.