Message from the President

Financial Results for the Fiscal Year Ended March 31, 2020

For the fiscal year ended March 31, 2020, net sales were ¥112,171 million (down 22.1% YoY), EBITDA was ¥20,069 million (down 52.3% YoY), operating income was ¥17,165 million (down 58.2% YoY), and profit attributable to owners of parent was ¥10,724 million (down 59.6% YoY). Despite a decline in revenue and profit, net sales of our mainstay service, Monster Strike, exceeded our initial forecast, and we achieved our earning forecast that was upwardly revised on March 23. Due to the increase in the number of consolidated subsidiaries resulting from share acquisitions, EBITDA has been disclosed from this point onward.

Priority Initiatives

In the current fiscal year, our focus for our entertainment businesses was the revitalization of Monster Strike and business growth in the field of sports. Through marketing activities such as its anniversary campaign and collaborations with popular IPs, Monster Strike has seen an increase in MAU (monthly active users) and ARPU (average revenue per user), achieving net sales and profits that exceeded its initial forecast. Apart from Monster Strike, we were able to prepare the game Kotodaman, which we received from SEGA Games, Inc., for future growth. In the field of sports, there was progress with our government-managed betting sports businesses. Following our acquisition of Chariloto Co., Ltd., we have acquired Net Dreamers Co., Ltd., which operates the horse racing resource, netkeiba.com. We have also acquired shares in the basketball team Chiba Jets and launched our sports gifting service, Unlim.
For our lifestyle businesses, we began offering FamilyAlbum New Year's greeting cards in collaboration with our subsidiary SFIDANTE Inc. and improved the monetization of FamilyAlbum, a photo sharing app for families.

Main Business Policies for the Fiscal Year Ending March 31, 2021

Starting the next fiscal year, we're increasing our disclosed segments to three; the addition being sports businesses, which are expected to further expand.
For our digital entertainment businesses, we will continue to aim for the revitalization of Monster Strike. With the goal of making Monster Strike a brand that will stay loved for the foreseeable future and beyond, we will deliver more initiatives that deliver surprise and delight to our users, in turn improving future financial results.
For our sports businesses, we will further invest in government-managed betting sports. We will apply our IT expertise to government-managed betting sports, which are appealing in terms of market size and growth rate, and reinvent them as a new form of entertainment, growing them into a second mainstay business.

To Our Stakeholders

For the fiscal year ending March 31, 2020, we paid a year-end dividend of ¥55 per share. Including the interim dividend, this makes for a total annual dividend of ¥110 per share. For the fiscal year ending March 31, 2021, we expect to pay an annual dividend of ¥110 per share based on a dividend on equity (DOE) ratio of 5%.
Due to the spread of COVID-19, there is currently an increased demand for online businesses, with offline businesses being negatively impacted. With the societal stress caused by stay-at-home and quarantine orders, our business domains of communication and entertainment have seen an increase in demand and importance. It's in times like these that mixi Group must continue striving to bring joy to Japan and the world by doing what we do best. I would like to ask for the continued guidance and support of our shareholders.

President and Representative Director

Koki Kimura