COLOPL : Consolidated Financial Results for the Three Months Ended December 31, 2022 (under Japanese GAAP)（351KB）

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 this 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 (3) Notes to Quarterly Consolidated Financial Statements (Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements)" on page 7 of the attached materials.

1. Changes in accounting policies, changes in accounting estimates, and retrospective restatements
2. 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 (3) Notes to Quarterly Consolidated Financial Statements (Change in accounting policy)" on page 7 of the attached materials.

(4) Number of issued shares (common shares)

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

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1. Consolidated Results for the Three-Month Period Ended December 31, 2022

(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 three-month period ended December 31, 2022, 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 three-month period ended December 31, 2022 were net sales of ¥7,108 million (down 4.0% from the same period of the prior fiscal year), operating profit of ¥11 million (down 98.5% from the same period of the prior fiscal year), ordinary loss of ¥442 million (ordinary profit of 1,091 million in the same period of the prior year),and loss attributable to owners of the parent of ¥413 million (profit attributable to owners of ¥677 million in the same period of the prior 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, we distributed a new title "NEKO GOLF-AnimeGOLF-" for the three-month period ended December 31, 2021. As for existing titles, "DRAGON QUEST WALK" (planning and production: SQUARE ENIX CO., LTD., Development: COLOPL, Inc.)" performed 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 first quarter of the current fiscal year stood at ¥7,067 million (down 4.4% from the same period of the prior fiscal year), operating profit of ¥233 million (down 70.7% from the same period of the prior fiscal year).

b. Investment 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 three-month period ended December 31, 2021. 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 first quarter of the current fiscal year stood at ¥40 million (up 268.4% from the same period of the prior fiscal year), operating loss of ¥222 million (operating loss of 39 million in the same period of the prior year).

1. Analysis of consolidated financial position (Assets)
   Current assets as of December 31, 2022 were ¥72,279 million (down ¥5,638 million from September 30, 2022). This was mainly due to a decrease in cash and deposits and operational investment securities.
   Non-current assets were ¥6,175 million (up ¥812 million from September 30, 2022). This was mainly due to an increase in investments and other assets.
   As a result, total assets were ¥78,455 million (down ¥4,825 million from September 30, 2022)

(Liabilities)

Current liabilities as of December 31, 2022 were ¥4,383 million (down ¥1,310 million from September 30, 2022). This was due to a decrease in income taxes payable.

In addition, non-current liabilities were ¥805 million (down ¥205 million from September 30, 2022). This was due to a decrease in other non-current liabilities.

As a result, total liabilities were ¥5,189 million (down ¥1,516 million from September 30, 2022).

（Net assets)

Net assets as of December 31, 2022 were ¥73,266 million (down ¥3,309 million from September 30, 2022). This was mainly due to a decrease in retained earnings resulting from the payment of dividends.

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(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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