The following information was originally prepared and published by the Company in Japanese as it contains timely disclosure materials to be submitted to the Tokyo Stock Exchange. This English translation is for your convenience only. To the extent there is any discrepancy between this English translation and the original Japanese version, please refer to the Japanese version.

Consolidated Financial Results

for the Six Months Ended September 30, 2023

[IFRS]

November 8, 2023

Company name: DeNA Co., Ltd.

Stock exchange listing: Tokyo Stock Exchange

Code number: 2432

URL: https://dena.com/intl/

Representative: Shingo Okamura, President & CEO

Contact: Takaaki Otani, Head of the Corporate Unit

Phone: +81-3-6758-7200

Scheduled date of filing quarterly securities report: November 9, 2023

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on quarterly financial results: Yes

Schedule of quarterly financial results briefing session: Yes (for institutional investors, analysts and the press)

(Amounts are rounded to the nearest million yen.)

1. Consolidated Financial Results for the Six Months Ended September 30, 2023 (from April 1, 2023 to September 30, 2023)

(1) Consolidated Operating Results

(% changes from the previous corresponding period)

Revenue

Operating profit

Profit before tax

Profit for the period

Six months ended

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

75,147

5.5

4,801

(32.1)

10,110

(38.2)

6,798

(41.1)

September 30, 2023

Six months ended

71,223

4.6

7,076

(47.0)

16,347

(41.3)

11,532

(49.9)

September 30, 2022

Profit for the period

Total comprehensive

Basic earnings

Diluted earnings

attributable to

income for the period

per share

per share

owners of the parent

Six months ended September 30, 2023 Six months ended September 30, 2022

Millions of yen

%

Millions of yen

%

7,402

(33.3)

13,800

98.1

11,090

(51.1)

6,967

(50.7)

YenYen

66.4866.41

94.2294.13

(2) Consolidated Financial Position

Total equity

Ratio of equity

Total assets

Total equity

attributable to

attributable to

owners of the parent

owners of the parent

As of September 30,

Millions of yen

Millions of yen

Millions of yen

%

345,581

246,169

234,048

67.7

2023

As of March 31,

348,942

233,993

221,626

63.5

2023

2. Dividends

Dividends per share

End of 1st

End of 2nd

End of 3rd

End of

Total

quarter

quarter

quarter

year

Fiscal year ended

Yen

Yen

Yen

Yen

Yen

―

0.00

―

20.00

20.00

March 31, 2023

Fiscal year ending

―

0.00

March 31, 2024

Fiscal year ending

March 31, 2024

―

―

―

(Forecast)

(Notes) 1. Revisions to recently announced dividend forecast: No

2. The dividend forecast for the fiscal year ending March 31, 2024 has not been determined at this time.

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (from April 1, 2023 to March 31, 2024)

The consolidated financial results forecast for the fiscal year ending March 31, 2024 cannot be provided due to the difficulty of reasonably and accurately estimating the figures. However, the Company aims to achieve a year-on-year increase in revenue and operating profit with the exception of one-off gains and losses. For the major factors related to performance that are expected to impact the trends of each business, please refer to "1. Overview of Operating Results and Financial Position (1) Overview of Operating Results for Fiscal 2022 (Outlook for Fiscal 2023)," in the "Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 [IFRS]," announced on May 10, 2023.

* Notes

  1. Changes in Significant Subsidiaries during the Period under Review (changes in specified subsidiaries accompanying changes in scope of consolidation): No

Added:Excluded:

  1. Changes in Accounting Policies and Changes in Accounting Estimates
    1. Changes in accounting policies required by IFRS: Yes
    2. Changes in accounting policies other than 1) above: No
    3. Changes in accounting estimates: No
  3. Number of Shares Issued (common stock)
    1. Total number of shares issued at the end of the period (including treasury stock):

As of September 30, 2023

122,145,545 shares

As of March 31, 2023

122,145,545 shares

  1. Total number of shares of treasury stock at the end of the period:

As of September 30, 2023

10,801,216 shares

As of March 31, 2023

10,805,997 shares

  1. Average number of shares during the period:

Six months ended September 30, 2023

111,342,963 shares

Six months ended September 30, 2022

117,699,544 shares

(Note) The 174,090 shares of the Company's stock owned by the Stock Grant ESOP Trust account are included in the "Total number of shares of treasury stock at the end of the period" as of September 30, 2023, and the 178,871 shares of the Company's stock owned by the same trust account are included in the "Total number of shares of treasury stock at the end of the period" as of March 31, 2023.

  • This report of quarterly consolidated financial results is outside the scope of quarterly review by a certified public accountant or accounting auditor.
  • Explanation of the Proper Use of Financial Results Forecast and Other Notes
    (1) Consolidated Financial Results Forecast
    The forward-looking statements herein are based on information available to the Company and certain assumptions deemed reasonable as of the date of publication of this document. They are not intended as the Company's commitment to achieve such forecasts, and actual results may differ significantly from these forecasts due to a wide range of factors.

(2) Dividend Forecast

The Company plans to set the cash dividend forecast for the fiscal year ending March 31, 2024 considering the overall progress in performance and other factors, and promptly announce said expected dividend amount.

(3) Method of Obtaining Supplementary Briefing Material on Financial Results

The Company is planning to hold a briefing session for institutional investors, analysts and the press on November 8, 2023. The briefing materials for this session are scheduled to be posted on the Company's website after the timely disclosure of the Consolidated Financial Results for the Six Months Ended September 30, 2023. In addition, videos and primary Q&A of the briefing session are scheduled to be posted on the Company's website at a later date shortly thereafter.

Appendix

1. Overview of Operating Results and Financial Position

2

(1)

Overview of Operating Results

2

(2)

Overview of Financial Position and Cash Flows

3

(3)

Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information

4

2. Condensed Consolidated Financial Statements and Principal Notes

5

(1)

Condensed Consolidated Statement of Financial Position

5

(2)

Condensed Consolidated Income Statement

7

(3)

Condensed Consolidated Statement of Comprehensive Income

8

(4)

Condensed Consolidated Statement of Changes in Equity

9

(5)

Condensed Consolidated Statement of Cash Flows

10

(6)

Notes on Going Concern Assumption

11

(7)

Notes to Condensed Consolidated Financial Statements

11

1. Segment information

11

2. Earnings per share

14

3. Investments accounted for using the equity method

14

4. Significant subsequent events

14

- 1 -

1. Overview of Operating Results and Financial Position

(1) Overview of Operating Results

The Group has made efforts to enhance corporate value over the mid to long term by working to form an earnings base on the two approaches of working to entertain and to serve and by evolving into a new kind of tech company, including encouraging synergy between the two approaches. The Group has also been working to establish an even stronger business portfolio.

During the six months ended September 30, 2023 (from April 1, 2023 to September 30, 2023), revenue was ¥75,147 million, up 5.5% year-on-year. While revenue decreased year-on-year in the Game Business, revenue in all other business divisions increased.

Cost of sales was ¥39,396 million, up 9.9% year-on-year. Outsourcing expenses increased mainly due to new consolidations conducted in the Healthcare & Medical Business during the fiscal year ended March 31, 2023, while expenses associated with the growth of the Sports Business increased, and amortization also increased due to the release of new game titles in the Game Business.

Selling, general and administrative expenses were ¥30,853 million, up 7.1% year-on-year. While there was an increase in personnel expenses due to new consolidations in the Healthcare & Medical Business, commission fees declined, reflecting the performance of the Game Business.

Finance income was ¥3,940 million, down 55.0% year-on-year.

Share of profit of associates accounted for using the equity method was ¥1,451 million, up 140.2% year-on-year. The main factors of the year-on-year fluctuation included the recording of a one-time gain from the capital increase of GO Inc., a major associate accounted for using the equity method, through a third-party allotment, as well as the performance trends of Cygames, Inc.

As a result, revenue of the DeNA Group was ¥75,147 million, up 5.5% year-on-year, operating profit was ¥4,801 million, down 32.1% year-on-year, profit before tax was ¥10,110 million, down 38.2% year-on-year, and profit for the period attributable to owners of the parent was ¥7,402 million, down 33.3% year-on-year.

Business performance by segment is as follows.

  1. Game Business
    Revenue of the Game Business was ¥26,351 million, down 19.4% year-on-year, and segment profit was ¥423 million, down 89.5% year-on-year.
    Despite the release of a new title at the end of June 2023, both revenue and profit decreased as operations were centered on existing titles and virtual currency consumption decreased year-on-year.
  2. Live Streaming Business

Revenue of the Live Streaming Business was ¥21,844 million, up 11.5% year-on-year, and segment loss was ¥89 million, compared with segment loss of ¥358 million for the same period of the previous fiscal year.

During the six months ended September 30, 2023, the Live Streaming Business continued to grow thanks to Pococha in Japan and IRIAM. In the global Pococha service, the Group examined the appropriate methods of management of each region, while optimizing its investments.

- 2 -

3) Sports Business

Revenue of the Sports Business was ¥21,260 million, up 34.6% year-on-year, and segment profit was ¥7,446 million, up 61.4% year-on-year.

The performance of the Sports Business continued to grow relative to the fiscal year ended March 31, 2020, which was before the number of spectators, etc., were restricted due to COVID-19.

4) Healthcare & Medical Business

Revenue of the Healthcare & Medical Business was ¥4,226 million, up 133.3% year-on-year, and segment loss was ¥2,206 million, compared with segment loss of ¥912 million for the same period of the previous fiscal year.

In order to actively take advantage of medium to long-term growth opportunities, the Company has promoted M&A and other activities aimed at new growth and challenges. In the Healthcare & Medical Business, significant progress was made toward strengthening the business portfolio during the fiscal year ended March 31, 2023. DATA HORIZON CO., LTD. and Allm Inc. became consolidated subsidiaries of the Company on August 3, 2022 and on October 3, 2022, respectively. From those points onward, the results of each company are included in the results of the Business.

    1. New Businesses and Others
      Revenue of the New Businesses and Others was ¥1,523 million, up 11.9% year-on-year, and segment loss was ¥588 million, compared with segment loss of ¥369 million for the same period of the previous fiscal year.
      This section comprises various initiatives that aim to reinforce the Group's business portfolio over the mid to long term as well as services of the E-commerce Business, etc.
  2. Overview of Financial Position and Cash Flows
    1. Financial Position
      Total assets at the end of the six months ended September 30, 2023 were ¥345,581 million, a decrease of ¥3,361 million compared to the end of the previous fiscal year.
      Current assets were ¥112,976 million, a decrease of ¥20,365 million compared to the end of the previous fiscal year. This was due mainly to a decrease in cash and cash equivalents by ¥13,570 million.
      Non-current assets were ¥232,605 million, representing an increase of ¥17,005 million compared to the end of the previous fiscal year. This was due mainly to an increase in other non-current financial assets by ¥11,055 million.
      Total liabilities at the end of the six months ended September 30, 2023 amounted to ¥99,413 million, a decrease of ¥15,536 million compared to the end of the previous fiscal year.
      Current liabilities were ¥32,383 million, representing a decrease of ¥18,266 million compared to the end of the previous fiscal year. This was due mainly to a decrease in income tax payables by ¥8,531 million.
      Non-current liabilities stood at ¥67,030 million, representing an increase of ¥2,729 million compared to the end of the previous fiscal year. This was due mainly to an increase of ¥3,872 million in deferred tax liabilities.
      Total equity at the end of the six months ended September 30, 2023 was ¥246,169 million, representing an increase of ¥12,176 million compared to the end of the previous fiscal year. This was primarily attributable to an increase of ¥12,422 million in total equity attributable to owners of the parent.
      In terms of liquidity, the liquidity ratio and ratio of equity attributable to owners of the parent were 348.9% and 67.7%, respectively, at the end of the six months ended September 30, 2023.

- 3 -

    1. Cash Flows
      Cash and cash equivalents (collectively, "cash") at the end of the six months ended September 30, 2023 decreased by ¥13,570 million to ¥84,163 million compared to the end of the previous fiscal year. Cash flows in each area of activity and their respective contributing factors are as follows.
      (Operating activities)
      Net cash used in operating activities for the six months ended September 30, 2023 was ¥4,415 million, compared to a cash inflow of ¥12,196 million in the same period of the previous fiscal year. The principal cash inflow factor was ¥7,270 million in decrease in trade and other current receivables. The principal cash outflow factor was ¥11,851 million in income tax paid.
      (Investing activities)
      Net cash used in investing activities for the six months ended September 30, 2023 was ¥6,515 million, compared to a cash inflow of ¥13,359 million in the same period of the previous fiscal year. The principal cash outflow factor was ¥3,296 million in acquisition of intangible assets.
      (Financing activities)
      Net cash used in financing activities for the six months ended September 30, 2023 was ¥3,912 million, compared to a cash inflow of ¥5,196 million in the same period of the previous fiscal year. The principal cash outflow factor was ¥2,228 million in cash dividends paid.
  2. Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information

The consolidated financial results forecast for the fiscal year ending March 31, 2024 cannot be provided due to the difficulty of reasonably and accurately estimating the figures. However, the Company aims to achieve a year-on-year increase in revenue and operating profit with the exception of one-off gains and losses.

For the major factors related to performance that are expected to impact the trends of each business, please refer to "1. Overview of Operating Results and Financial Position (1) Overview of Operating Results for Fiscal 2022 (Outlook for Fiscal 2023)," in the "Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 [IFRS]," announced on May 10, 2023.

- 4 -

2. Condensed Consolidated Financial Statements and Principal Notes

(1) Condensed Consolidated Statement of Financial Position

(Millions of yen)

As of

As of

March 31, 2023

September 30, 2023

Assets

Current assets

Cash and cash equivalents

97,732

84,163

Trade and other current receivables

27,566

20,882

Other current financial assets

277

715

Other current assets

7,766

7,217

Total current assets

133,341

112,976

Non-current assets

Property and equipment

3,163

5,868

Right-of-use assets

17,034

16,281

Goodwill

49,088

49,088

Intangible assets

23,036

24,159

Investments accounted for using the equity method

57,954

60,715

Other non-current financial assets

63,162

74,217

Deferred tax assets

517

1,334

Other non-current assets

1,647

945

Total non-current assets

215,601

232,605

Total assets

348,942

345,581

- 5 -

(Millions of yen)

As of

As of

March 31, 2023

September 30, 2023

Liabilities and equity

Liabilities

Current liabilities

Trade and other current payables

19,397

17,022

Borrowings

2,715

2,262

Lease liabilities

1,465

1,380

Income tax payables

11,169

2,638

Provisions

2,434

2,486

Other current financial liabilities

795

1,121

Other current liabilities

12,673

5,473

Total current liabilities

50,648

32,383

Non-current liabilities

Borrowings

35,040

34,575

Lease liabilities

5,937

5,301

Provisions

215

240

Other non-current financial liabilities

462

389

Deferred tax liabilities

22,331

26,203

Other non-current liabilities

317

322

Total non-current liabilities

64,301

67,030

Total liabilities

114,949

99,413

Equity

Common stock

10,397

10,397

Capital surplus

15,591

15,788

Retained earnings

193,586

198,764

Treasury stock

(20,794)

(20,778)

Other components of equity

22,846

29,878

Total equity attributable to owners of

221,626

234,048

the parent

Non-controlling interests

12,367

12,120

Total equity

233,993

246,169

Total liabilities and equity

348,942

345,581

- 6 -

(2) Condensed Consolidated Income Statement

(Millions of yen)

Six months ended

Six months ended

September 30, 2022

September 30, 2023

Revenue

71,223

75,147

Cost of sales

35,834)

(39,396)

Gross profit

(35,389

35,751

Selling, general and administrative expenses

(

28,817)

(30,853)

Other income

617

207

Other expenses

112)

(304)

Operating profit

7,076

4,801

(

Finance income

8,749

3,940

Finance costs

(

(82)

82)

Share of profit (loss) of associates accounted for using

604

1,451

the equity method

Profit before tax

16,347

10,110

Income tax expense

4,815)

(3,313)

Profit for the period

11,532

6,798

(

Attributable to:

Owners of the parent

11,090

7,402

Non-controlling interests

442

(604)

Profit (loss) for the period

11,532

6,798

(Yen)

Earnings per share attributable to owners of the parent:

Basic earnings per share

94.22

66.48

Diluted earnings per share

94.13

66.41

- 7 -

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DeNA Co. Ltd. published this content on 08 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 November 2023 14:54:14 UTC.