I am sure that you, the shareholders, are all fine and doing well. Also, let me please express my appreciation for your heartfelt support extended to us.

 

In the first half of this period, sales and profits decreased on a year-to-year comparison due to the decrease in the number of video works deployed, the voluntary restraint of stores that sell our goods and products, the postponement and cancelation of events caused by the Corona Disaster, as well as the recoil reduction of copyright business from the same period last year.  

Under these circumstances, the Overseas Video Division posted record high sales in the first half because of the shipment of works for movie theaters in Saudi Arabia and the strong sales of the screening rights of Dragon Ball Super: Broly in North America.
 

A total of 6 works for movie theaters will be released in the second half, including works whose release was postponed due to the Corona Disaster. We think our business environment continue to be harsh, but we will actively promote the deployment of our videos and copyright in Japan and overseas by making the most of the power of our works.

The Corona Disaster greatly changed peoples’ lifestyles. Although we have few promising topics these days, we believe our company is one that is required by society at this very time and have renewed our commitment. Our management philosophy is “giving dreams and hope to children all over the world”. In the middle of the ongoing Corona Disaster, many people feel uncertainty for the future. We will make efforts with the energy of the entire company to give dreams and hope to those people.

We aim at further growth as the IP holder.
IP holder means the one that produces new works, cultivates produced works, and independently operates them to strengthen the function of extending their lifecycle. One of our advantages is the enormous number of works, as many as 580 in total. In the past, when the TV broadcast of a work ended, the work followed a cycle in which the chances of broadcasting decreased and their popularity diminished. We will proactively work on measures such as the creation of hits for extending the popularity of produced IP. 

We will focus on the increase of the number of new IP creation for the expansion of IP. In the creation of new IP, we will actively continue to develop original IP. Also, we will respond to changes in the business environment, including people’ s viewing style, and make efforts for producing works free from the previous structure.

As we have succeeded with Dragon Ball, we will promote the lifecycle extension of works to extend beyond the second and 3rd generations so that more works can be enjoyed by parents and children. We will strategically establish many customer contacts and improve the system to enable long-lasting popularity according to the lifecycle of the IP.

We have acquired business know-how through the production of many works and the operation of their rights. By using this knowledge, we focus on our own business aiming at the independent operation of IP and expanding the rate of sales for each work in addition to the existing license business. 

 

By achieving the above three strategies, we will create, cultivate, and independently operate much IP, and increase works that more fans can enjoy over a long period of time.

We appreciate the further support and cooperation of the shareholders in the future.