FY 2023.3 (Apr.2022～Mar.2023) Outline of Financial Results
Tokorozawa
(Tokorozawa, Saitama)
March 31, 2023 Open!
North Star
(San Antonio, Texas, USA)
March 4, 2023 Open!
Analysis of consolidated operating results
Apr. 2022~Mar.2023 Actual [In comparison with FY 2020.3 (before COVID-19)]
(Unit ¥bn) ※Figures below ¥10 million are truncated. Percentage is rounded off to one decimal place.
Unit | FY 2020.3 Actual | FY 2023.3 Actual | Dif.(%) | |||||
(2019.4~2020.3) | (2022.4~2023.3) | |||||||
Total at the end of the term ① | Store | 144 | 152 | +5.6 | ||||
Bowling | 24.46 | 24.93 | +1.9 | |||||
Amusement | 52.66 | 85.40 | +62.1 | |||||
Karaoke, Food | 11.45 | 13.31 | +16.2 | |||||
Spo-cha | 13.02 | 15.13 | +16.2 | |||||
Cre-cha | ― | 0.21 | ― | |||||
Others | 3.16 | 3.05 | (3.5) | |||||
Total sales | 104.77 | 142.05 | +35.6 | |||||
Cost of sales | 92.40 | 120.68 | +30.6 | |||||
IS | Gross profit | 12.37 | 21.36 | +72.6 | ||||
S.G.A. expenses | 3.49 | 4.44 | +27.0 | |||||
Operating profit | 8.88 | 16.92 | +90.6 | |||||
Non-operating income & | (0.15) | (0.23) | ― | |||||
expenses | ||||||||
Ordinary profit ② | 8.72 | 16.69 | +91.4 | |||||
Ordinary profit margin | 8.3% | 11.7% | ― | |||||
Extraordinary income & loss ③ | (1.55) | (1.65) | ― | |||||
Profit before income taxes | 7.16 | 15.03 | +109.8 | |||||
Income taxes | 2.37 | 5.30 | +123.4 | |||||
Profit | 4.79 | 9.73 | +103.1 | |||||
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① [Number of stores]
Japan：99 stores (2 stores opened, 6 stores closed）
The USA : 49 stores (11 stores opened, 3 stores closed)
China : 4 stores (4 stores opened)
② [Ordinary profit] ※1
FY 2020.3 Actual | Ordinary profit | ¥8.72bn | ||
◆Japan Ordinary profit & loss | ¥(2.23)bn | |||
[Breakdown] Increase in Sales | +¥5.57bn | |||
Increase in Promotion exp. | ¥(4.84)bn | |||
(Amusement prize exp., etc.) | ||||
Increase in Lease Fee for amusement machines | ¥(2.16)bn | |||
Increase in Utility exp. | ¥(1.94)bn | |||
Decrease in Advertising exp. | +¥1.11bn | |||
Decrease in Other exp. | +¥0.03bn | |||
◆The USA Ordinary Profit & loss ※2 | +¥11.36bn | |||
◆China and Other | ¥(1.16)bn | |||
FY 2023.3 Actual | Ordinary profit | ¥16.69bn | ||
※1 Ordinary profit is compared excluding royalty.
FY 2020.3 Actual … Japan ¥8.71bn, The USA ¥0.09bn
FY 2023.3 Actual … Japan ¥6.48bn, The USA ¥11.46bn
Ordinary profit including royalty is below.
FY 2023.3 Actual … Japan ¥9.05bn, The USA ¥8.89bn
- FY 2020.3 Actual is as same ordinary profit as excluding royalty.
※2 Reason for difference of The USA Ordinary Profit +¥11.36bn
Ordinary profit for FY 2020.3 was ¥0.09bn due to the spread of COVID-19, and FY 2023.3 was ¥11.46bn
due to our good performance caused by the booming USA economy of after-COVID-19.
- [Extraordinary income & loss breakdown]
FY 2020.3 Actual Extraordinary income & loss ¥(1.55)bn
・ Impairment loss | ¥(1.08)bn |
・ Loss on retirement of non-current assets, etc. | ¥(0.46)bn |
FY 2023.3 Actual Extraordinary income & loss ¥(1.65)bn
・ Gain on reversal of share acquisition rights | ¥0.08bn |
・ Impairment loss ※Please refer to page 3. | ¥(1.32)bn |
・ Loss on retirement of non-current assets, etc. | ¥(0.41)bn |
Analysis of consolidated operating results
Apr. 2022~Mar. 2023 Actual [with Plan]
(Unit ¥bn) ※Figures below ¥10 million are truncated. Percentage is rounded off to one decimal place.
Unit | FY 2023.3 Plan | FY 2023.3 Actual | Dif.(%) | |||||||
(2022.4~2023.3) | (2022.4~2023.3) | |||||||||
Total at the end of the term | Store | 152 | 152 | ― | ||||||
Bowling | 25.32 | 24.93 | (1.6) | |||||||
Amusement | 84.08 | 85.40 | +1.6 | |||||||
Karaoke, Food | 13.68 | 13.31 | (2.7) | |||||||
Spo-cha | 14.86 | 15.13 | +1.8 | |||||||
Cre-cha | 0.25 | 0.21 | (16.4) | |||||||
Others | 2.92 | 3.05 | +4.4 | |||||||
Total sales | 141.14 | 142.05 | +0.6 | |||||||
Cost of sales | 120.86 | 120.68 | (0.1) | |||||||
IS | Gross profit | 20.28 | 21.36 | +5.3 | ||||||
S.G.A. expenses | 4.42 | 4.44 | +0.3 | |||||||
Operating profit | 15.85 | 16.92 | +6.7 | |||||||
Non-operating income & | 1.32 | (0.23) | ― | |||||||
expenses | ||||||||||
Ordinary profit ① | 17.17 | 16.69 | (2.8) | |||||||
Ordinary profit margin | 12.2% | 11.7% | ― | |||||||
Extraordinary income & loss ② | (0.74) | (1.65) | ― | |||||||
Profit before income taxes | 16.43 | 15.03 | (8.5) | |||||||
Income taxes | 4.71 | 5.30 | +12.5 | |||||||
Profit | 11.72 | 9.73 | (16.9) | |||||||
- [Ordinary profit] ※1
FY 2023.3 Plan | Ordinary profit | ¥17.17bn | |||
◆Japan Ordinary profit & loss | ¥(0.92)bn | ||||
[Breakdown] Dif. due to the consolidated elimination of the | ¥(1.74)bn | ||||
exchange rate fluctuations ※ Please refer to page 3. | |||||
Increase in Sales | +¥0.75bn | ||||
Decrease in Personnel exp. | +¥0.21bn | ||||
Decrease in Lease Fee for amusement machines | +¥0.10bn | ||||
Increase in Supplies exp. | ¥(0.10)bn | ||||
Increase in Other exp. | ¥(0.14)bn | ||||
◆The USA Ordinary Profit & loss | +¥0.39bn | ||||
[Breakdown] Increase in Sales | +¥0.37bn | ||||
Increase in Promotion exp. | ¥(0.26)bn | ||||
(Amusement prize exp., etc.) | |||||
Decrease in Other exp. ※2 | +¥0.28bn | ||||
◆China and Other | +¥0.05bn | ||||
FY 2023.3 Actual | Ordinary profit | ¥16.69bn | |||
※1 Ordinary profit is compared excluding royalty.
FY 2023.3 Plan … Japan ¥7.40bn, The USA ¥11.06bn FY 2023.3 Actual … Japan ¥6.48bn, The USA ¥11.46bn
Ordinary profit including royalty is below.
FY 2023.3 Plan … Japan ¥9.96bn, The USA ¥8.51bn
FY 2023.3 Actual … Japan ¥9.05bn, The USA ¥8.89bn
※2 Other exp. includes the increased profit due to exchange rate fluctuations.
- [Extraordinary income & loss breakdown]
FY 2023.3 Actual Extraordinary income & loss ¥(1.65)bn
・ Gain on reversal of share acquisition rights | ¥0.08bn |
・ Impairment loss ※Please refer to page 3. | ¥(1.32)bn |
・ Loss on retirement of non-current assets, etc. | ¥(0.41)bn |
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Special notices of the consolidated operating results FY 2023.3
【Japan】 Reason for the consolidated elimination of the exchange gains ¥1.74bn
The foreign exchange gains from capital recovery from The USA was included in the Third Revised Consolidated Plan disclosed on February 10, 2023, which was our miscalculation.
It has been eliminated in the consolidated financial statements, and the amount of this effect was included in Foreign currency translation adjustment.
【Consolidated】 Reason for impairment loss ¥(1.32)bn
Consolidated impairment loss : ¥(1.32)bn
【Breakdown】 Japan : ¥(0.65)bn China : ¥(0.67)bn
Details for impairment loss in China ¥(0.67)bn
An impairment loss was recognized at Guangzhou Xintang AEON MALL, our 1st store in China, based on a review of the recoverability of building equipment and right-of-use assets (equivalent to the future rent payments) as indications of impairment were observed.
Chinese economy is on a recovery trend, and we are striving to improve our business performance based on the recognition that the Chinese business can be a driver of future growth.
However, based on a conservative approach, we have decided to record total net loss ¥2.88bn in the unconsolidated financial statements, as a valuation loss on our investment in capital.
It has no impact on the consolidated financial results, because the valuation loss has been eliminated in the consolidated financial statements.
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Adoption of the new leases standard in FY 2023.3
※Figures below ¥100 million are truncated.
We adopted the new leases standard (ASC Topic 842) for the store leases in The USA from the end of FY 2023.3. The impacts of the adoption of ASC Topic 842 are as follows.
The impact on the balance sheet
The USA's balance sheet at the end of FY 2023.3, the right-of-use assets (tangible fixed assets) and the lease obligations has increased due to the capitalization of the right to use stores based on lease agreements for each store and due to the record of the rent payments in the future as lease obligations. The effects of this change are increases of ¥28.3bn in the right-of-use assets and ¥36.3bn in the lease obligations, and decreases of approx. ¥8.0bn in other accounts.
The impact on the income statement
The impact on the income statement is negligible due to the rent payments for the stores, which were previously recorded as rental expenses, has been recorded as lease expenses.
Vertical axis : Amount of the income statement | |||||
Impact Image | Horizontal axis : Number of years since store opening | ||||
Lease | |||||
Right-of-use | Before adopt ASC Topic 842 | After adopt ASC Topic 842 | |||
assets | obligations | ||||
Assets
Liabilities
1st 2nd 3rd 4th 5th Nth
1st 2nd 3rd 4th 5th Nth
Net assets
year year year year year year
■ Rent payments
year year year year year year
■ ■ Lease expenses
（Breakdown）■ Amount equivalent to depreciation ■ Amount equivalent to interest expenses
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