Investors

From 12:00 on Friday, November 15, 2024, the Company held a financial results briefing (online) for H1 of the fiscal year ending March 31, 2025.
This page provides an overview of the main questions and answers (summaries) at the briefing.

Summary of major questions by analysts and investors, and answers

[Contents and digital business]

Q1: Please tell us about the sales of ULTRAMAN CARD GAME.

A1: Sales are strong. In Japan, the booster pack product, launched in November, got off to a very good start with half of the first shipments sold out within three days of sales. Overseas, the figures are preliminary due to a time lag, but we have heard the response has been good.

Q2: Is production keeping up with demand?

A2: We have a solid manufacturing system in place to meet the many orders we receive. We have already received additional orders, and will respond to them by the end of this year.

Q3: The company plans to launch the second booster pack and extra deck in January. I would like to know the status of the orders.

A3: We are currently accepting orders on an ongoing basis. We feel that enquiries are strong, encouraged by the strong sales of the first product.

Q4: Please tell us about the target audience for ULTRAMAN CARD GAME.

A4: It targets both Ultraman and trading card game fans. Many of the first products feature Ultraman Tiga and Ultraman Zero and the main fan base for these works is people in their 20s and 30s, which overlaps with the trading card game fan base in many areas. As a result, the card games are selling well in generations that Ultraman products have not been able to appeal to until now. We have also heard from an outside research firm that the card game sells to wider generations than other card games. We will continue to appeal to a wide range of generations as the Ultraman IP that has gained recognition of three generations.

Q5: With other companies leading IPs being converted into trading card games one after another in the future, I think it will be essential to strengthen marketing to maintain competitiveness. What are your thoughts on this?

A5: As you have pointed out, a variety of IPs have now appeared as trading card game products. We aim to be among the highest in this area, and we are constantly researching the top IPs in the industry as a benchmark. We also intend to focus considerably on marketing activities to achieve this.

Q6: Please tell us about the plans for future marketing activities in China.

A6: In China, we plan to continue our marketing activities in collaboration with leading partners such as local distributors and manufacturers.

Q7: Please tell us about future development of in-house products.

A7: We are currently strengthening product distribution through e-commerce that enable digital marketing as a pillar of the medium-term management plan. Within this plan, we will develop various products, including products planned and designed in-house.

Q8: Please tell us about the plans for global marketing activities from the second half.

A8: We will promote efficient methods tailored to the characteristics of each region, including China/Asia and North America. In Japan, we will use TV commercials as well to make a strong appeal.

Q9: Has the launch of ULTRAMAN CARD GAME had a positive impact on other Ultraman related products?

A9: Although the product has only just been launched, we believe that the positive impact, combined with the various marketing initiatives in advance, is having a positive effect.

Q10: Please tell us about the branding strategy of Ultraman IP for North America.

A10: In order to raise awareness in North America, we have already collaborated with other companies’ popular IP, and will continue these initiatives in the future. And we believe that increasing the number of video titles such as Ultraman: Rising, which is currently being distributed on Netflix, will lead to increased recognition in North America. In addition, the English-version of the ULTRAMAN CARD GAME for North America will be developed with designs favored in the US.

Q11: Please tell us about the future development of visual products.

A11: Several projects are in progress with leading national and international partners. As many of the projects have not yet released information, we are unable to provide specific details, but we would like you to keep an eye on the future.

Q12: In your mid-term management plan, you have set a target of two million event attendees in FY2026, but what are the assumptions made as to whether there will be growth outside Japan and/or whether the number of performances will increase.

A12: We plan and roll out a variety of events, including live shows and card game competitions in Japan and globally to expand the touch points for the Ultraman IP.

Q13: At present, there are separate IDs for several services, such as the “ULTRMAN OFFICIAL SHOP Ultraman World M78” app and the “TSUBURAYA IMAGINATION” app, and there is no linkage between the apps. I would like to know about your digital strategy, including future e-commerce.

A13: Currently, only the ID of the official shop Tsuburaya Store is not linked to other apps. We are in the process of putting in place a system to strengthen the linkage of these services and link them firmly to marketing activities through CRM.
* CRM (Customer Relationship Management)

Q14: Medium-term management plan calls for sales of ¥25 billion for the final fiscal year compared to net sales of ¥9.8 billion for the previous fiscal year. I would like to know which regions in particular are expected to grow.

A14: Growth is expected mainly in Japan and China. In addition, the Europe and US regions will steadily increase their share of sales.

Q15: Please tell us the status of licensing businesses in China. Is the development of new licensees progressing?

A15: New licensees are constantly being developed, with sales in the apparel sector in particular steadily increasing in recent years. Other new licensees in new categories are expected to be added from the next financial year onwards.

Q16: How does Netflix Ultraman: Rising affect the popularity of Ultraman?

A16: As a result of its worldwide distribution, some people are saying that this is the very first time to see Ultraman, and it is helping to expand awareness in a wide range of countries/regions. In addition, this work has led to the development of ULTRAMAN CARD GAME in Europe, and we feel that we have responded with certainty to the progress of global businesses.

Q17: I would like to know how the use of Ultraman IP in Roblox is progressing.

A17: Recently, we have been conducting virtual events in conjunction with real events and have been researching the use of the platforms. For the future, we are preparing a major project with marketing to Europe and the United States in mind.

[PS business]

Q1: Regarding the announcement of the business alliance with DAIKOKU DENKI Co., Ltd., how to develop joint title through the mutual use of IP in future collaborations?

A1: We have been discussing with DAIKOKU DENKI Co., Ltd. about what we can do for pachinko and pachislot (hereinafter, “PS”) machine industry. Currently, we are proceeding with more specific discussions at the field level. We would like to proceed firmly not only with joint machine development but also with the five areas of cooperation described in the releases.

Q2: Please tell us about the factors behind the strong performance of ACE DENKEN in the current fiscal year and the sustainability of earnings from the next fiscal year onward.

A2: One of the main factors behind the strong performance in the current fiscal year includes large special demand associated with the issue of new banknotes. From the next fiscal year onward, the company expects units and facilities to continue to be sold and constructed over the next few years in line with the spread of smart PS machine.
Currently, we are in the process of formulating a medium-term management plan in order to realize synergies between ACE DENKEN Co., Ltd. and us, starting with improving the efficiency of sales branches. We will enhance synergies by sharing the data that our sales staff collect from parlors. The company has long had a high market share for equipment, and by increasing this market share, we believe it will be able to generate stable earnings in the future.

Q3: e ULTRAMAN 2400 ★ 80, which is scheduled to be released in January 2025, feels more exciting than previous MAX-type machines. Is it possible to think that such title will become the mainstream in the future?

A3: The company believes it has ample potential to become a mainstream in the future.

Q4: In the H2, major titles including L INUYASHA 2 and L Tokyo Ghoul as a private brand (hereinafter, PB) machines are planned to be launched. How much will the sales volume of PB titles in the medium-term be weighted up to the total sales volume?

A4: As for PB titles as a percentage of the total, PB titles will make up for the shortfall in achieving the target of selling 1 pachinko and 1 pachislot title per month or 24 titles per year.

Q5: At the event “Tokyo Ghoul EX.” held, there was an attraction combining the pachislot L Tokyo Ghoul and AR, and it was impressive that young women were playing with expressions that seemed to be enjoyable.

A5: Tokyo Ghoul is an IP that is very popular among men and women in their 20s, even though it was created about a decade ago. Through such IP as Tokyo Ghoul, we intend to boost the PS market by providing IP that attract fans who have left and new fans, not only to PB title, but also to other PS manufacturers. At the same time, it will also provide fun as a pachislot machine.

[Management-related]

Q1: Would you tell us about current view of the future use of equity?

A1: In addition to investing in new IP acquisitions and other growth-oriented initiatives, we also consider shareholder returns to be important.

Q2: Did you see any change in your sense of distance from the other end in the one-year period since you held the business partnership with DAIKOKU DENKI Co., Ltd.? What kind of synergy should we expect in the future?

A2: DAIKOKU DENKI Co., Ltd. and we have made it one goal to increase the number of PS fans, and we believe that if we can leverage the resources of both companies and achieve this, it will ultimately benefit both companies.
By mutually utilizing our group’s marketing know-how and the market analysis know-how generated by the company through the information system business, we will leverage synergies to create new products and services, business models, etc. We believe that these efforts will produce results, so we would like to ask for your continued support.

Q3: In contents and digital business, are you thinking of M&A in areas that will complement your business and content themselves?

A3: We are examining both domestically and internationally, with careful attention to it.