The following is a summary of the key questions and answers from the operating results briefing for the second quarter of FY2025, held on November 10, 2025.
【Q1】 | Pokémon Trading Card Game Pocket has now celebrated its first anniversary since launch, and you've also implemented an update. Could you tell us about the changes in KPIs following this and your expectations going forward? |
【A1】 | Although we are unable to share further details, the third quarter is off to a solid start. We are continuing to layer various measures, such as the updates and promotions, so we will be watching the trends carefully. |
【Q2】 | Please give us an overview of Fire Emblem Shadows. |
【A2】 | This is a spin-off of the Fire Emblem series, and is a smart device game introducing a new style of battles featuring role-playing and social deduction. It has only recently launched, and as it's a title that includes new attempts, we intend to operate it diligently. |
【Q3】 | Regarding the Medical Business, if peripheral businesses such as digital transformation support take off in connection with domestic Join, can we expect discontinuous growth? |
【A3】 | We are starting to see inquiries about promoting digital transformation using Join as a starting point. Major core hospitals in the regions face various challenges, and they are looking to resolve these through digital transformation. Our company excels at solutions for challenges, and we are not just providing Join as a product or service. Instead, we are proceeding with discussions to offer solutions for the entire hospital, starting with Join. We hope to be able to share specific details in the future. |
【Q4】 | In agilely establishing a structure capable of consistently achieving ROE of 8% or more, how are you taking the characteristics of the smartphone game market, including its volatility, into account? |
【A4】 | We have experienced this firsthand: when a game is a hit, the impact is significant, and we recognize the underlying market size is large. However, we want to reduce volatility as much as possible, securing reliable profit, while treating major hits as an upside. To achieve this, we are adopting the Soft Launch development methods. We believe that by controlling costs and closely monitoring market reaction, we can achieve an efficient approach. If this strategy takes hold effectively, we believe our company will be able to capture the market environment as a growth market with reduced volatility. |
【Q5】 | You operate a diverse range of businesses as an Eternal Venture, which introduces business volatility. How is this being taken into consideration when aiming to achieve the ROE target? |
【A5】 | As an Eternal Venture, we challenge ourselves in various new areas. However, it's not enough to simply challenge; it's crucial to take on those challenges, firmly grasp the growth areas, and expand them. For our existing businesses, we are proceeding while keeping a close eye on the stability of our earning base. For example, we are prioritizing profitability in the Live Streaming Business. In the Game Business, we are implementing the Soft Launch Strategy. And in the Healthcare & Medical Business, while there are some initiatives, as mentioned in the earnings presentation materials, we are moving forward while conducting a thorough review. Please understand that we are reviewing the entire business portfolio and aiming to grow the high-potential areas. |
【Q6】 | Could you share your thinking regarding the scale of cost reduction effects from AI utilization, or the potential size of the newly created AI-related businesses? |
【A6】 | We feel a significant response from the productivity improvements driven by AI. For example, we believe that areas like quality management can be made more efficient through AI, allowing us to focus on generating added value instead. In addition to enhancing the competitiveness in existing businesses through AI utilization, we already have about 20 planned projects for the new business creation & growth. Not only does AI contribute to accelerating the pace of project promotion, but we believe we are also able to engage in more initiatives, including collaboration, investment, and partnerships with startups and external partners. |
【Q7】 | The progress rate in the first half is high relative to the full-year guidance. Could you please share your outlook for the second half? |
【A7】 | The first half has progressed smoothly, and we believe Pokémon Trading Card Game Pocket is performing well against the assumption of the upper end of its range. We have not seen any downside factors emerge up to this point. However, some businesses have strong seasonality between the first and second half. Typically, there is a profit level difference of around 6 billion yen to 7 billion yen as the Sports Business enters its off-season from the second to the third quarter. Additionally, in the second half, we anticipate that initiatives in AI and Smart City will impact our profit/loss. Therefore, the company as a whole is assuming that the profit level in quarters in the second half will be considerably smaller compared to the first half. Furthermore, the Game Business has the characteristic of high volatility. We intend to closely monitor and review the trends in the second half, including Pokémon Trading Card Game Pocket. |
【Q8】 | Could you tell us, to the extent possible, about the status of dialogue with shareholders who have filed Large Shareholding Reports? |
【A8】 | We will refrain from commenting on matters concerning specific shareholders. |
【Q9】 | You have published the "Action to Implement Management that is Conscious of Cost of Capital and Stock Price." Could you explain the intent and background behind this disclosure? |
【A9】 | Over the past year, as our performance trends have changed, we've had various discussions among management, taking into account the voices and requests of the capital market. We consider this our inherent responsibility, and we are advancing one actionable item after another through these discussions. We have previously communicated our emphasis on "Focus on increasing capital efficiency & ROE, with consideration for capital cost." As an extension of this, and in addition to our conventional commitments, our major premise for the phased increase of the ROE target. We intend to firmly reinforce our balance sheet management and strive to meet the expectations of all market participants. |
【Q10】 | I assume the AI-related initiatives are currently in an investment phase. Can you share your outlook on when they might start generating profit? |
【A10】 | We have three key perspectives in the AI domain. We believe that "All-Company Productivity Enhancement" will have a certain effect through cost reduction. In addition to that, we are firmly advancing initiatives where employees can significantly enhance their individual productivity by fully leveraging AI. While it's difficult to provide quantitative details at this time, "Enhancement of Competitiveness in Existing Businesses" is already seeing AI contribute to both strengthening product value and profitability. As for "New Business Creation & Growth," this requires a certain level of investment, so the results won't be immediate. However, AI is also being used in the PDCA cycle for creating the products and services themselves, and we anticipate that outcomes will emerge on a different timeline than before. |
【Q11】 | The Live Streaming Business is showing improved profitability. Should we expect a similar trend in the second half and beyond? |
【A11】 | Since the second half of the previous fiscal year, we have been focused on operations that prioritize profitability improvement. This involves controlling marketing expenses, optimizing our organizational structure, and enhancing the precision of our various measures. We intend to continue operating with a strong focus on profitability by utilizing our accumulated live operations. |
【Q12】 | Could you share, to the extent possible, your thinking regarding the numerator and denominator of the ROE target? |
【A12】 | We consider both the numerator and the denominator to be important, but we recognize the size of our equity. The direction of our future initiatives is as we have explained. |
【Q13】 | To ensure the soundness of the balance sheet, could you tell us what kind of discussions you are having with the audit firm, particularly regarding goodwill? |
【A13】 | We discuss this with our audit firm every fiscal year, including our mid term strategy and the progress of our businesses. The Healthcare & Medical Business is gradually growing on an annual basis. As mentioned in the earnings presentation materials, we intend to carefully build upon this through prioritization and focus, and we will monitor the situation. |
【Q14】 | Specifically, what kind of projects has Join Mobile Clinic contributed to so far? |
【A14】 | As detailed in the earnings presentation materials, we have a track record of various initiatives, such as those based on the partnership agreement with the international Medical Volunteers Japan Heart. |
【Q15】 | Could you tell us the background behind deciding to launch a new title in the Game Business with a poker theme? |
【A15】 | The title is EDGE POKER. Poker is a content that is growing very popular in Japan, and we hope to offer value that is distinctly DeNA. We plan to implement features that utilize AI, allowing users to safely and enjoyably improve their skills. Our hope is that this will be a game widely embraced by the public, including potential users. |
【Q16】 | Please tell us about the features and business model of THE LIVE supported by Daiwa Jisho facility. |
【A16】 | Preparation is underway in front of JR Kannai Station. This will be one of the Japan's largest permanent live viewing arenas, planned and managed by Yokohama DeNA BayStars. Guests can enjoy food and drinks while getting enthusiastic about various sports matches, including baseball, and entertainment content like music live events. We plan to screen not only our team's home games but also visitor games, as well as contents like basketball and soccer matches, and music live events. By fusing live viewing, food & beverage and merchandise, we hope to generate excitement in the Yokohama area throughout the year. Furthermore, for BayStars games, we believe this facility will contribute to offering a new kind of viewing experience. |