COLOPL : Consolidated Financial Results for the Six Months Ended March 31, 2023 (under Japanese GAAP)（369KB）

Note: This document is a translated version for reference purposes only. Therefore, any discrepancy may occur with the Japanese original version. Please refer to the Japanese version if you find anything unclear. COLOPL, Inc. takes no responsibility for any problems of translation.

Consolidated Financial Results for the Six Months Ended March 31, 2023

(under Japanese GAAP)

Name of the Listed Company: COLOPL, Inc.

Security code:	3668
Representative:	Takashi Miyamoto, President
Contact:	Yoshiaki Harai, Executive Director

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:

May 10, 2023

Listed Stock Exchanges: Tokyo Stock Exchange

URL: https://colopl.co.jp/en/

Telephone [phone]

May 12, 2023

－

Yes

Yes (for institutional investors and analysts)

1. Consolidated Financial Results for the Six Months Ended March 31, 2023 (from January 1, 2023 to March 31, 2023)

(1) Consolidated operating results				(Percentages indicate year-on-year changes.)
		Net sales		Operating profit	Ordinary profit	Profit attributable to
			owners of parent
Six months ended		million yen		%	million yen	%	million yen	%	million yen	%
March 31, 2023		15,897		1.5	1,944	(10.4)	1,607	(40.4)	932	(48.3)
March 31, 2022		15,665		(18.9)	2,169	(47.6)	2,696	(51.2)	1,803	(55.0)
Note: Comprehensive income	Six months ended March 31, 2023: 627 million yen (down 65.1%)
		Six months ended March 31, 2022: 1,796 million yen (down 56.2%)
	Basic earnings per share	Diluted earnings per share
Six months ended				yen		yen
March 31, 2023				7.27		－
March 31, 2022				14.08		14.06

(Note) Net income per share-fully diluted for the six-months ended March 31, 2023 is not shown in the above table, as there were no residual shares.

(2) Consolidated financial position
			Total assets	Net assets		Equity ratio
As of			million yen		million yen		%
March 31, 2023			80,513		74,683		92.8
September 30, 2022			83,280		76,575		91.9
Reference: Shareholder's equity	As of March 31, 2023: 74,677 million yen
			As of September 30, 2022: 76,569 million yen
2. Cash dividends
						Dividend per share
		First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Annual
			yen		yen		yen	yen	yen
Fiscal year ended		‒		0.00		‒	20.00	20.00
September 30, 2022
Fiscal year ending		‒		0.00
September 30, 2023
Fiscal year ending
September 30, 2023						‒	‒	‒
(forecast)

(Note) Revisions to the forecast of cash dividends most recently announced: None Dividends for the fiscal year ending September 30, 2023, are not yet decided.

3. Consolidated Financial Forecast for the Fiscal Year Ending September 30, 2023 (from October 1, 2022 to September 30, 2023) Due to the fact that the business environment surrounding our group is subject to rapid changes in the short term, it is difficult to calculate appropriate and reasonable figures for the outlook of our group's business performance, and therefore we do not disclose our business forecast.

Notes.

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in the scope of consolidation): None
   Although not a specified subsidiary, Brilliantcrypto, Inc. was established and included in the scope of consolidation during the first quarter of fiscal year.
2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes

(Note) For details, please refer to "2. Quarterly Consolidated Financial Statements and Major Notes (4) Notes to Quarterly Consolidated Financial Statements (Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements)" on page 8 of the attached materials.

1. Changes in accounting policies, changes in accounting estimates, and retrospective restatements

1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
2. Changes in accounting policies due to other than (i): None
3. Changes in accounting estimates: None
4. Retrospective restatement: None

(Note) For details, please refer to "2. Quarterly Consolidated Financial Statements and Major Notes (4) Notes to Quarterly Consolidated Financial Statements (Change in accounting policy)" on page 8 of the attached materials.

1. Number of issued shares (common shares)

1. Total number of shares issued at the end of the period (including treasury shares)

	As of March 31, 2023	130,055,005 shares	As of September 30, 2022	129,984,023 shares
(ii) Number of treasury shares at the end of the period
	As of March 31, 2023	1,778,614 shares	As of September 30, 2022	1,778,544 shares
(iii) Average number of shares during the period
	Six months ended March 31, 2023	128,240,958 shares	Six months ended March 31, 2022	128,090,485 shares

These quarterly financial results are outside the scope of quarterly review by a certified public accountant or audit firm

Proper use of earnings forecasts, and other special matters

Descriptions and statements concerning estimates and forecasts in this material are judgments and assumptions based on information currently available to the Company. Due to the uncertainties inherent in these judgments and assumptions, as well as changes in business management and internal or external conditions, actual results may differ substantially from predictions, and the Company does not guarantee the certainty of any details regarding these future predictions.

Accompanying Materials - Contents

1. Consolidated Results for the Six Months Ended March 31, 2023	2
(1)	Analysis of consolidated business results	2
(2)	Analysis of consolidated financial position	2
(3)	Qualitative information on consolidated business forecasts	3
2. Quarterly Consolidated Financial Statements and Major Notes	4
(1)	Quarterly Consolidated Balance Sheets	4
(2)	Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income	5
	Quarterly Consolidated Statements of Income
	Second Quarter Consolidated Cumulative Period	5
	Consolidated Quarterly Statements of Comprehensive Income
	Second Quarter Consolidated Cumulative Period	6
(3)	Quarterly Consolidated Statements of Cash Flows	7
(4)	Notes to Quarterly Consolidated Financial Statements	8
	(Notes on going concern assumption)	8
	(Notes on significant changes in the amount of shareholders' equity)	8
	(Changes in significant subsidiaries during the period)	8
	(Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements)	8
	(Change in accounting policy)	8
	(Segment Information)	9

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1. Consolidated Results for the Six Months Ended March 31, 2023

(1) Analysis of consolidated business results

With the Group's mission, "'Entertainment in Real Life': Making everyday more enjoyable and wonderful through entertainment", the Group has been working to enrich people's everyday lives through entertainment. In the six-months ended March 31, 2023, the Entertainment business has been keeping in mind the need to enhance engagement with users in conjunction with existing titles, while also focusing on developing new titles. The investment and development business has been investing mainly in IT-related and entertainment companies in Japan and overseas.

As a result, consolidated results for the six-month ended March 31, 2023 were net sales of 15,897 million yen (up 1.5% from the same period of the previous fiscal year), operating profit of 1,944 million yen (down 10.4% from the same period of the previous fiscal year), ordinary profit of 1,607 million yen (down 40.4% from the same period of the previous fiscal year),and profit attributable to owners of the parent of 932 million yen (down 48.3% from the same period of the previous fiscal year).

Operating results by segment are as follows.

a. Entertainment Business

The Entertainment Business is responsible primarily for the development and operation of games for smartphones.

In games for smartphones that account for a major portion of sales, new titles "NEKO GOLF -AnimeGOLF-" and "Volzerk: Monsters and Lands Unknown" were released. As for existing titles, "DRAGON QUEST WALK (planning and production: SQUARE ENIX CO., LTD., Development: COLOPL, Inc.)" performed very well and contributed to the Group's consolidated financial results. In original IP titles, the Group has been operating services to increase user engagement, such as holding collaboration events with popular IP for "Shironeko Project" and "Alice Gear Aegis".

As a result, consolidated net sales and operating profit for the six months ended March 31, 2023 stood at 15,434 million yen (up 0.6% from the same period of the previous fiscal year) and 2,150 million yen (up 9.1% from the same period of the previous fiscal year), respectively.

b. Investment and Development Business

The Group conducts the Investment and Development Business with a focus on investments in IT-related and entertainment companies in particular.

The Group's funds generated income from the sale of operational investment securities for the six-months ended March 31, 2023. In addition, impairment losses were recorded on a portion of operational investment securities held.

As a result, consolidated net sales and operating loss for the six months ended March 31, 2023 stood at 462 million yen (up 45.1% from the same period of the previous fiscal year) and 207 million yen (operating profit of 195 million yen in the same period of the previous fiscal year), respectively.

1. Analysis of consolidated financial position

1. Status of Assets, Liabilities and Net assets

(Assets)

Current assets as of March 31, 2023 were 74,069 million yen (down 3,848 million yen from September 30, 2022). This was mainly due to a decrease in cash and deposits and operational investment securities.

Non-current assets were 6,444 million yen (up 1,081 million yen from September 30, 2022). This was mainly due to an increase in investments and other assets.

As a result, total assets were 80,513 million yen (down 2,767 million yen from September 30, 2022).

(Liabilities)

Current liabilities as of March 31, 2023 were 4,931 million yen (down 762 million yen from September 30, 2022). This was mainly due to a decrease in income taxes payable.

In addition, non-current liabilities were 899 million yen (down 111 million yen from September 30, 2022). This was mainly due to a decrease in other non-current liabilities.

As a result, total liabilities were 5,830 million yen (down 874 million yen from September 30, 2022).

(Net assets)

Net assets as of March 31, 2023 were 74,683 million yen (down 1,892 million yen from September 30, 2022). This was mainly due to a decrease in retained earnings resulting from the payment of dividends.

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(ⅱ) Status of cash flows

The balance of cash and cash equivalents (hereinafter, "cash") at the end of the six months ended March 31, 2023 increased 6,854 million yen from the end of the previous fiscal year, to 57,768 million yen.

The status of each of the cash flow segments and contributing factors for changes during the six months ended March 31, 2023 are as follows.

(Cash flows from operating activities)

Net cash increased by 949 million yen in operating activities during the six months ended March 31, 2023 (compared to an increase of 3,216 million yen during the same period of the previous fiscal year). The main cash inflow was 1,607 million yen in proceeds from withdrawal of time deposits.

(Cash flows from investing activities)

Net cash increased by 8,903 million yen in investing activities during the six months ended March 31, 2023 (compared to a decrease of 914 million yen during the same period of the previous fiscal year).The main cash inflow was 10,000 million yen in refund of time deposits.

(Cash flows from financing activities)

Net cash decreased by 2,559 million yen in financing activities during the six months ended March 31, 2023 (compared to a decrease of 2,542 million yen during the same period of the previous fiscal year). The main cash outflow was 2,559 million yen in dividends paid.

(3) Qualitative information on consolidated business forecasts

Given significant short-term changes in the business environment surrounding the Group, the Company has difficulties in calculating the Group's earnings forecasts properly and reasonably, and therefore refrains from disclosing financial forecasts.

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