Message from the President

Financial Results for Fiscal Year 2021

For the fiscal year ending March 31, 2021, we achieved our first increase in profit and revenue in 5 years. Net sales were ¥119.3 billion (up 6.4% YoY), EBITDA1 was ¥27.1 billion (up 35.1% YoY), operating income was ¥22.9 billion (up 33.7% YoY), and profit attributable to owners of parent was ¥15.6 billion (up 45.8% YoY). The Sports segment achieved a significant increase in revenue, with net sales of ¥12.6 billion (up 145.3% YoY), thanks to the growth of consolidated subsidiaries Chariloto and Net Dreamers, as well as the sports betting service TIPSTAR, which was launched in June 2020. The Lifestyle segment had net sales of ¥6 billion (up 21.7% YoY), thanks in large part to FamilyAlbum's diversification of products and services. As of March 2021, the number of FamilyAlbum users exceeds 10 million. The Digital Entertainment segment recorded profit of ¥44.7 billion (up 33.6% YoY) as a result of aggressive promotion of IP2 collaborations in Monster Strike and Kotodaman and by streamlining advertising expenses for Monster Strike.

*1: Operating income before amortization
*2: Intellectual property

Priority Initiatives for Fiscal Year 2022

We aim to double sales in the Sports segment, and we will continue to invest in accelerating the growth of TIPSTAR in particular. Initially, the only sport on TIPSTAR was keirin, but in April 2021, we added auto race. In addition, a new feature was added which allows users to share their own race predictions. Going forward, we will continue to update this service and evolve it into a social sports betting service that everyone can enjoy. In the Digital Entertainment segment, we will aim for the upside of our sales forecasts by continuing to hold high-profile collaborations with well-known IPs. At the same time, we will ensure stable earnings by continuing to improve the efficiency of our advertising expenses. We aim to achieve further growth for Kotodaman by developing and operating the game in a way that users who join to experience collaborations with popular IPs can enjoy the game long-term.

Medium-Term Management Policy

In line with our medium-term management policy of "enriching global communication through the combination of entertainment and technology," we will continue to refine our technology know-how to create entertainment that surprises users. By aggressively investing in the highly-sustainable Sports segment, we will develop it into a second pillar of business and achieve profitability within three years. In the Digital Entertainment segment, we will strive to extend IP staying power and release new titles, aiming for a success on the level of Monster Strike. By doing this, the Group as a whole can increase sales while expanding and stabilizing our portfolio.

To Our Stakeholders

mixi strives to provide stable and continuous returns to our shareholders while making investments to accelerate business growth. For FY2021, the Company paid a year-end dividend of ¥55 per share, which means an annual dividend of ¥110 per share when including the interim dividend. For the fiscal year ending March 31, 2022, the Company expects to pay an annual dividend of ¥110 per share based on a dividend on equity ratio (DOE) of 5%. In May 2021, the Board of Directors approved a resolution to repurchase 7.5 billion yen of the Company's own shares in order to improve capital efficiency and pursue a flexible capital policy in response to changes in the business environment. Although the entertainment industry is currently greatly impacted by COVID-19, we believe that there will be significant opportunities as we overcome this pandemic. Now is the time for us to make the preparations that will lead to significant growth for mixi Group. We thank you for your continued support.

President and Representative Director

Koki Kimura