NJ Holdings (they own tri-Ace y'know) FY 6/24 presented by Sōta Fujii. Operating Profit +101. Game Business: +340 (million yen). Blue Monster appears!

[KR_EP]

NJ Holdings Inc.
Tokyo Stock Exchange Standard Market Code number: 9421.T
Supplemental Material For FY2024 First Nine Months Financial Results
May 10, 2024​

Investor Relations (IR) (ENG)
Financial Year (FY)
July 1, 2023 - June 30, 2024​

Spoiler: Previously on InstallBaseZ...

NJ Holdings (they own tri-Ace y'know) FY6/23 presented by Sōta Fujii. Net Sales 10,131, Operating Profit -239, Game Business +43 (million yen)
NJ Holdings (they own tri-Ace y'know) Q1 FY6/24 presented by Sōta Fujii. Net Sales 2,767. Operating Profit +148. Game Business +210 (million yen)
NJ Holdings (they own tri-Ace y'know) 1H FY6/24 presented by Sōta Fujii. Net Sales 5,170. Operating Profit +234. Game Business +351 (million yen)
NJ Holdings (they own tri-Ace y'know) 9M FY/24 presented by Sōta Fujii. Operating Profit +237. Game Business: +380 (million yen) 2nd Downward Revision

NJ Holdings // Game Studio // tri-Ace // Wit One // Xevious Program Star Output Ocean Strategy: Integrity & Nappy Timelessness. Consider It More!
(Will update...later...maybe!)
​

Sōta Fujii here, last quarter was a challenge, went too easy on that upstart Takumi Itō got one over on me. Gotta work out more if I wanna retain my good form. Cause I'm a verified 5 time Lifetime Title Holder! Let's proceed as normal with the final results of fiscal year ending June 30, 2024 --wait, who the hell are you Blue Dude?

​

1. Consolidated Financial Results
(1)Results Summary
Operating profit has turned positive mainly due to outsourcing cost reductions and transitory profit factors in the game business.
(Millions of Yen)

Net Sales​	Operating Profit​	Ordinary Profit​
FY6/23 (July 1, 2022 - June 30, 2023)	10,131​	-239​	-260​
FY6/24 (July 1, 2023 - June 30, 2024)	9,698​	102​	96​
Total Change (FY23 - FY24)	(433)​	342​	356​

Source: FY2024 Full Year Financial Results (August 09, 2024) page 5

'Reviewing the segment breakdowns, the Game Business is responsible for both summoning The Blue Monster, yet also for keeping it at bay...for now by selling in-house IP. (see chart below).'

(2)Results by Segment
Profits recovered in the game business, and the mobile business returned to profitability.
(Millions of Yen)

Net Sales FY6/23​	Net Sales FY6/24​	Change	Operating Profit FY6/23​	Operating Profit FY6/24​	Change
Game	7,995​	7,580​	-415​	43​	340​	296​
Mobile	2,070​	12,063​	-7​	-14​	46​	60​
Other*1	71​	70​	0​	37​	35​	-1​
Inter-segment Eliminations & Corporate Expenses*2	-6​	-16​	-10​	-225​	-239​	-13​
Goodwill Amortisation	--​	--​	--​	-80​	-80​	0​
Consolidated Total	10,131​	9,698​	(433)​	-239​	102​	342​

※1 The Other segment is a business segment not included in the reportable segments.
※2 Corporate expenses are general and administrative expenses that do not belong to any reportable segment.

Source: FY2024 Full Year Financial Results (August 09, 2024) page 6

(3)Quarterly Net Sales by Segment
In the game business, sales declined from 3Q to 4Q due to the termination of operating titles and the impact of projects whose development system had passed its peak.

Source: FY2024 Full Year Financial Results (August 09, 2024) page 7

(4)Quarterly Operating Profit by Segment
In the game business, personnel utilization rate declined from 3Q to 4Q due to the termination of operating titles and the impact of projects whose development system had passed its peak.

Source: FY2024 Full Year Financial Results (August 09, 2024) page 8

'Passed its peak? Hey I may be 22 but I haven't even begun to peak. Still, gotta hit the gym & beast up if I wanna keep ballin' out. Synduality: Echo of Ada now in the final phase of development?'

2. Game Business
(1)Overview
Summary of MD&A*

• Despite the recording of sales from the transfer of rights to game titles that had been developed in-house, sales declined due to the completion of development and downsizing of the structure of titles in operation.
• Although there were some delay in orders and fewer orders received in the fourth quarter of the financial year, the impact on profit and loss was reduced by controlling outsourcing costs.

Source: FY2024 Full Year Financial Results (August 09, 2024) page 9

'*Management Discussion & Analysis - cause why go to Business school when you can learn the ropes, kicking ass & taking Shogi names playing my Sweeeeeeeet Badass Switch game.'

3)Quarterly Sales Breakdown
In operation sales, there were terminations of operation titles and downsizing of the team. In development sales, some projects have passed the peak of the development team and there were delays in receiving orders for development projects

4)Quarterly Operating Profit
Profitability deteriorated in the fourth quarter due to shrinking orders and delays in receiving orders for development projects.

Source: FY2024 Full Year Financial Results (August 09, 2024) page 11 & 12

'Shrinkage? It was the rainy season at Japanese retail - honest luv! Best go easy on these steroids huh. Delays are part & parcel of the Game Business but this is getting redunkculous!'

Number of projects currently under development ※1
Package type ※2 ※3 (Main platforms: consoles, PCs):
5 (0 change from May 10, 2024)

Smartphone type ※2 ※4 (Main platforms: mobile phone, PC):
0 (0 change from May 10, 2024)

employees ※5
809 (-27 from Jun. 30, 2023) (-11 from Mar. 31, 2024)

※1 as of August 09, 2024. It does not indicate the number of titles that will be completed within this fiscal year.
※2 Multi-platform title counts as one. Small titles are not counted.
※3 Download sales and additional content are also included in the console type.
※4 including the free-to-play type.
※5 as of June 30, 2024 (including some fixed-term contract workers.)

Number of Employees: consolidated 961 (as of March 31, 2024. It includes 74 average temporary employees)

Source: FY2024 Full Year Financial Results (August 09, 2024) page 13 & 29

'I was hoping that NH Holdings would include a new category for self-publishing (something I recommend earlier in the year) but alas, we're stuck with making guesses. Synduality: Echo of Ada plus four unannounced (contracted) works. Original titles are not included in the 5, meaning it doesn't include UNDERGROUNDED that re-appeared at BISUMMIT DRIFT & will on Steam in 2025.'

Spoiler: Last Headcount

Previous Employee Totals
Number of Employees: consolidated 996 (as of June 30, 2023. It includes 74 average temporary employees)

Source: Financial Results for the Fiscal Year Ending June 30, 2023 (August 14, 2023) page 26

Number of Employees: consolidated 1,006 (as of September 30, 2023. It includes 82 average temporary employees)

Source: Financial Results for the Q1 Fiscal Year Ending June 30, 2024 (November 10, 2023) page 25

Number of Employees: consolidated 998 (as of December 31, 2023. It includes 81 average temporary employees)

Source: Financial Results for the 1H Fiscal Year Ending June 30, 2024 (February 09, 2024) page 25

Number of Employees: consolidated 979 (as of March 31, 2024. It includes 78 average temporary employees)

Source: Financial Results for the first 9M Fiscal Year Ending June 30, 2024 (May 10, 2024) page 26

'Nom Nom Nom...Okinawans are tasty! An overall reduction of 18 since March 31, 2024 (down 4 average temporary employees), Wit One Okinawa bearing the brunt of The Blue Monster feeding frenzy as its down 19 from 80 to 61 (down from 105 as of September 30, 2023). Good news everyone, tri-Ace is hiring new graduates.'

Game Studio
270 (September 2023)
tri-Ace
176 (as of July 1, 2024)
Wit One
304 (as of June 30, 2022)
Wit One Okinawa
61 (as of July, 2024)
Tech Flag
18 (as of January, 2023)

1. Forecasts for FY2025
(1)Consolidated Full-Year Forecasts

(Millions of Yen)

Net Sales	Operating Profit	Ordinary Profit
FY6/24 (July 1, 2023 - June 30, 2024) RESULTS	9,968	102	96
FY6/24 (July 1, 2023 - June 30, 2024) FORECAST	8,870	100	60

(2)Projections for each business segment
Game
The effects of the contraction in orders and delay in orders for development projects that began to appear in the fourth quarter of the current fiscal year (ended June 30, 2024) are expected to continue for some time in the next fiscal year (ending June 30, 2025), but we expect to receive orders for projects for which planning proposals are in progress from the second quarter onward.
Accordingly, the business is expected to be in a deficit in the first half of the next fiscal year, but we expected to generally break even in the second quarter of the financial year and to be profitable for the full year.

Mobile
In the next fiscal year, the mobile business will continue to work on securing profit earned per customer by strengthening sales of peripheral products and other measures. And we will strengthen our dominant strategy and push ahead with the expansion of our community-based shop business.

Source: FY2024 Full Year Financial Results (August 09, 2024) page 23 & 24

'Two financial years with two downward revisions apiece. No dividends for you, this Blue Tragedy is a marathon, not a high speed mode sprint! Full-year forecast sees net sales down again but operating profit still pegged at 100 million yen. It'll require another Olympian effort to overcome the ongoing industry hurdles as the notice on not paying shareholder dividends mentions being at the halfway point.

The expectation of posting a loss in the first quarter suggests it doesn't expect the Switch & Steam launch of Aooni or the belated launch of 50 Pinch Barrage!! on Steam to contribute significantly to earnings. However the former has clocked up a few hundred positive reviews so who knows! The Blue Monster might not be such a bad guy after all. More promising is the belated opening of job positions by tri-Ace on its MYNAVI2025 page that was opened earlier in the year (but updated today!), lines up with the forecast expects to receive new orders in the second half of the year.

It suggests all systems go for a new project or is confident it'll be totally happening bunker.gif guys. But we've heard that spooky song before so let's not get ahead of ourselves just yet! I'll go through the job listings over the weekend with a fine tooth, Google translate comb. Afterwards I'll see about submitting questions for the NJ Holdings Q&A on August 29, 2024.'

​

Work out to work it out. Financial stamina is the name of the Game Business game. Pour one out for the NJ Fallen, now it's hightime for three aces to fly my pretties, fly!

 

[KR_EP]

Before getting onto tri-Ace wish to add a few extra things, starting with the job losses at Wit One Okinawa which I've been tracking for the past year. News entry on its page mentions the head office relocations in Naha & Tokyo plus there were a further two job losses in July as my initial check on the site had 63 as of July 2024, while its now 61 as of the end of July 2024.

2024/07/01
那覇本社、東京オフィス同時に移転しました！
Our Naha head office and Tokyo office have relocated at the same time!​

Wit One Okinawa (staff count) before & after.

従業員数 - 63名（2024年7月現在)
Number of Employees - 63 (as of July 2024)​

従業員数 2024年7月末時点：61名
As of the end of July 2024: 61 people

Meaning there was a further reduction of 2 staff last month so maybe further cuts are planned this fiscal year. Overall it shows that yes, job losses do take place in Japan but sizeable ones at that. In the case of Wit One Okinawa, it has 44 fewer staff since last September. Yet it has three job openings on its recruitment page. Two state hourly rates while the last says part time.

メールサポート業務
Email Support

ソーシャルメディア運用業務
Social media management

ゲームデバッグ業務
Game debugging​

Major job losses warrant an official statement. I will try fielding questions on the subject to find out more. Moving onto eShop chart rankings, despite a crowdfunded effort & livestreams 50 Pinch Barrage!! found itself in a sales bind. Game Studio Inc., & NJ Holdings will have to learn on how to advance its self-publishing initiative before UNDERGROUNDED launch, which hasn't received much if any coverage . Yet things are a little more promising for Aooni it is still Big [Blue Monster] in Japan. Thanks to @Pooroomoo & @ktpoison for their tireless eShop sleuthing work. On Switch at least because PC wise, despite the positive reviews it peaked at 132 players (Steam CCU) while 50 Pinch Barrage!! could only muster a mere 7 (Steam CCU).

[NSW/Steam] 50 Pinch Barrage!! <ACT> (KaeruPanda Inc./Game Studio Inc.) {2024.05.22} NSW {2024.08.01} Steam​

Nintendo Switch eShop Charts: Week 21, 2024 (May 13 - May 26, 2024) [various regions]

JP Switch eShop Chart for the period of May 13 - May 26, 2024
248./00. 50 Pinch Barrage!! {2024-05-23} (JPY 580.0) (is 14% off)

US eShop Chart for the period of May 13 - May 26, 2024 (also covers )
778./00. 50 Pinch Barrage!! {2024-05-22} (USD 4.99) (is 10% off)

Nintendo Switch eShop Charts: Week 22, 2024 (May 20 - Jun 02, 2024) [various regions]

JP Switch eShop Chart for the period of May 20 - Jun 02, 2024
170./248. 50 Pinch Barrage!! {2024-05-23} (JPY 580.0) (is 14% off)

US Switch eShop Chart for the period of May 20 - Jun 02, 2024 (also covers )
630./778. 50 Pinch Barrage!! {2024-05-22} (USD 4.99) (is 10% off)

[NSW/Steam] AOONI <ADV> (LiTMUS/noprops/Game Studio Inc.) {2024.07.26} ​

Nintendo Switch eShop Charts: Week 30, 2024 (Jul 15 - Jul 28, 2024) [various regions]

JP eShop Chart for the period of Jul 15 - Jul 28, 2024
10./00. Aooni {2024-07-26} (JPY 990.0) (is 50% off)

US eShop Chart for the period of Jul 15 - Jul 28, 2024 (also covers )
717./00. Aooni {2024-07-26} (USD 9.99) (is 50% off)

Nintendo Switch eShop Charts: Week 31, 2024 (Jul 22 - Aug 04, 2024) [various regions]

JP Switch eShop Chart for the period of Jul 22 - Aug 04, 2024
02./10. Aooni {2024-07-26} (JPY 990.0) (is 50% off)

General Rankings (Free and Paid Software + DLC)
5 - Aooni {2024-07-26} (JPY 990.0) (is 50% off)

US eShop Chart for the period of Jul 22 - Aug 04, 2024 (also covers )
434./717. Aooni {2024-07-26} (USD 9.99) (is 50% off)

...alright, alright, so y'all here for those fresh 株式会社トライエース tri-Ace co., Ltd deets huh. Previous research can be found here, the group company opened a MYNAVI 2025 page earlier this year. News hit July 19th on its homepage while MYNAVI 2025 has been updated the last few days, most recently to advise we're all going on a [Japanese] summer holiday.

【ご応募受付中】 （2024/08/10更新）
[Now accepting applications] (Updated 2024/08/10)​

□■NEW■□
現在、ご応募受付中です。
エントリーシート、応募書類の提出期限は【9月4日（水）】です。
皆様のご応募をお待ちしております。
（8/10～8/19　夏季休暇のためご返信に少々お時間をいただきます）

□■NEW■□
We are currently accepting applications.
The deadline for submitting application forms and application documents is Wednesday, September 4th.
We look forward to receiving your application.
(We will be closed for the summer holidays from August 10th to August 19th, so it may take some time for us to respond.)

募集コース一覧
List of Courses Available​

ゲームデザイナー（企画）
正社員 職種限定募集：クリエイティブ系

Game Designer (Planning)
Full-time position recruitment: Creative

プログラマ/R&Dプログラマ
正社員 職種限定募集：ＩＴ系

Programmer/R&D Programmer
Full-time position Recruitment for specific job type: IT related

アーティスト
正社員 職種限定募集：クリエイティブ系

Artist
Full-time position, limited to creative fields

サウンドデザイナー ...
正社員 職種限定募集：クリエイティブ系

Sound Designer
Full-time position, limited to creative fields

システム管理（社内SE）
正社員 職種限定募集：ＩＴ系

System Management (In-house IT Engineer)
Full-time employee, job type limited recruitment: IT related

* We also accept submissions in English.​

Enlist...in English! I wonder if the repeated mentions of delayed new orders relate to what had been an open but inactive MYNAVI 2025 until recently, combined with the FY6/25 forecast mentioning the possibility of major new orders implies a new publishing deal is close. But as with the staff cuts at Wit One Okinawa & mention of reducing costs due to end of services in its operations business (plus the game development past its peak could mean Synduality: Echo of Ada is nearing completion), it's all guesswork. No more, no less. Don't quote me on any of that! Besides until they (whoever they is... @Celestial intensifies!) sign on the dotted line, even a modest 100 million yen profit forecast is by no means assured.

The latest securities report (which includes the quarterly tri-Ace R&D figures) has yet to be published. As this was the final year of the three year mid-term plan (6/21 - 6/24) there should be a new report outlining the next three years before the annual Q&A in late August. To finish up, quick review of the previous report (TLDR: sweet summer child, NJ had such high hopes):

新中期経営計画(2022年6月期~2024年6月期)の策定に関するお知らせ
Notice regarding formulation of new medium-term management plan (FY2022-FY2024)​

Spoiler: Page 12

2024.6月期 経営目標
Management targets for the fiscal year ending June 2024​

EBITDA※ 10億円
EBITDA* 1 billion yen

ROE 10%以上
ROE 10% or more

2021.6期実績
Results for the June 2021 Period​

EBITDA 6億円
EBITDA: 600 million yen

2024.6期目標
FY2024.6 Goals​

EBITDA 10億円
EBITDA 1 billion yen

※ EBITDAは「営業利益+減価償却費+のれん償却額」により算出
* EBITDA is calculated as "operating profit + depreciation + goodwill amortization"

Spoiler: Page 13

ゲーム事業
Game Business​

EBITDA 10億円
EBITDA 1 billion yen

(2021.6期 EBITDA 約7.0億円)
(FY2021.6 EBITDA approx. 700 million yen)

モバイル事業
Mobile Business​

EBITDA 2億円
EBITDA: 200 million yen

(2021.6期 EBITDA 約0.6億円)
(FY2021.6 EBITDA approx. 60 million yen)

※セグメント間取引消去及び全社費用は、2億円程度で想定しております。
*Inter-segment eliminations and company-wide expenses are expected to be approximately 200 million yen.

※セグメントEBITDAは「セグメント利益(営業利益)+セグメント減価償却費」により算出。
セグメント利益(営業利益)には、のれん償却額は含まれておりません。
*Segment EBITDA is calculated as "segment profit (operating profit) + segment depreciation and amortization."
Segment profit (operating profit) does not include goodwill amortization.

 

[Celestial]

Not sure it’s worth much news but this was in Gamebiz.jp. The June 2022 was the disastrous result so I’m not sure if it helps that as a comparison. https://gamebiz.jp/news/393006


Google translated:

“Tri-Ace's fiscal year ending June 2024 results show sales of 1.572 billion yen and ordinary profit of 193 million yen, an increase in sales and a turnaround to profitability compared to the fiscal year ending June 2022​

TriAce's financial results for the fiscal year ending June 2024 were sales of 1.572 billion yen (up 25.7% from the fiscal year ending June 2022), operating profit of 193 million yen (compared to a loss of 625 million yen in the fiscal year ending June 2022), and net profit of 193 million yen (compared to a loss of 684 million yen in the fiscal year ending June 2022).

Sales: 1.572 billion yen (up 25.7% year-on-year)
Operating profit: 193 million yen (a loss of 625 million yen recorded in the same period last year)
Net profit: 193 million yen (a loss of 684 million yen recorded in the same period last year)
*Figures are compared with the fiscal year ending June 2022, as the previous fiscal year ending June 2023 has not been disclosed.“

I’m curious how they’re making money.

 

[KR_EP]

Couple things since the my last post in early August. I'm following the news but have fallen well behind on write ups for many topics including NJ Holdings. Plenty of important news to catch up on but it'll have to wait. Second, please can users on this forum stop using Gamebiz, it fails to include sources & provide context. We can do better by simply using Investor Relation (IR) pages. If you don't know how to find the information, ask & people can help. In this case I've found the primary source & auto-translated, showing the steps taken to find it.

NJ Holdings > NJ Holdings IR page > Library > Securities > click on the annual Securities report* > use control + f to search for a specific term or company name likeトライエース (tri-Ace) > use auto-translation.

*NJ Holdings financial year runs from July 1 - June 30, the company publishes its end of year Financial Report in early August, the annual Securities Report are posted in late September.

第33期（2024年6月期）
33rd Period (ending June 2024)
有価証券報告書
Securities Report
2024.09.25​

5.(株)ゲームスタジオ、(株)トライエース、(株)ウィットワン及び(株)ネプロクリエイトについては、売上高 (連結会社相互間の内部売上高を除く)の連結売上高に占める割合が10%を超えております。 主要な損益情報等 (株)ゲームスタジオ
5. The sales of Game Studio Co., Ltd., Tri-Ace Co., Ltd., WitOne Co., Ltd. and Nepro Create Co., Ltd. (excluding internal sales between consolidated companies) account for more than 10% of consolidated sales.

主要な損益情報等
Major profit and loss information

千円 (thousand yen)​

(株)ゲームスタジオ
Game Studio Co., Ltd.​

売上高 (Sales) 3,334,082千円
経常損失 (Ordinary Loss) △108,426〃
当期純損失 (Net Loss) △98,253〃
純資産額 (Net Assets) 263,089〃
総資産額 (Total Assets) 598,355〃

(株)トライエース
tri-Ace Co., Ltd.​

売上高 (Sales) 1,572,034千円
経常利益 (Ordinary Profit) 193,278〃
当期純利益 (Net Income) 193,078〃
純資産額 (Net Assets) △422,725〃
総資産額 (Total Assets) 349,826〃

(株)ウィットワン
WitOne Co., Ltd.​

売上高 (Sales) 2,351,252千円
経常利益 (Ordinary Profit) 169,282〃
当期純利益 (Net Income) 124,172〃
純資産額 (Net Assets) 892,314〃
総資産額 (Total Assets) 1,210,462〃

page 8​

Usual sources of revenue for a work-for-hire company are milestone payments for project(s) in development, revenue and/or royalties from existing games sales. As for other sources of revenue, sales from the Square Enix deal for titles developed by tri-Ace on PS Plus? Remember that NJ Holdings sold the rights to a game title for 200 million yen. Who is the developer?

Which one?
Wit One!​

It could be Wit One & Wit One Okinawa however based on the work those group companies primarily do (Business Projects, Company Outline), it's more likely a title in development by either Game Studio or tri-Ace. Sales for tri-Ace are lower than Game Studio or WitOne & its Net Assets are in the red. Yet it posted a larger operating profit than WitOne & Game Studio posted a net loss. More than a little curious how the ordinary profit (193.278 million yen) & net income (193.078 million yen) are near identical. Not a confirmation but worth considering.

6【研究開発活動】 ゲーム事業において、主に(株)トライエースでゲームエンジンの研究開発活動を行っており、当連結会計年度にお ける研究開発費の総額は108百万円であります。
6. Research and Development Activities In the Game Business, research and development activities for game engines are conducted mainly by Tri-Ace Ltd., and total research and development expenses for this consolidated fiscal year were 108 million yen.

page 22​

Will finish by noting a fall in quarterly R&D spending. 91 million yen for the first three quarters (32, 30, 29). 108 million yen for the year. 108 - 91 = 17 million yen for April 1 - June 30, 2024.

第1四半期報告書
First Quarter Report
2023.11.10​

(3)研究開発活動 ゲーム事業において、主に(株)トライエースでゲームエンジンの研究開発活動などを行っており、当第1四半期 連結累計期間の研究開発費の総額は32百万円であります。
(3) Research and Development Activities In the Game Business, research and development activities for game engines are mainly conducted at Tri-Ace Co., Ltd. Total research and development expenses for the first quarter of this consolidated fiscal year were 32 million yen.

page 4​

第2四半期報告書
Second Quarter Report
2024.02.09​

(4)研究開発活動 ゲーム事業において、主に(株)トライエースでゲームエンジンの研究開発活動などを行っており、当第2四半期 連結累計期間の研究開発費の総額は62百万円であります。
(4) Research and Development Activities In the Game Business, research and development activities for game engines are mainly carried out at Tri-Ace Co., Ltd. Total research and development expenses for the second quarter of the current consolidated cumulative period were 62 million yen.

page 6​

第3四半期報告書
Third Quarter Report
2024.05.10​

(3)研究開発活動 ゲーム事業において、主に(株)トライエースでゲームエンジン等の研究開発活動を行っており、当第3四半期連 結累計期間の研究開発費の総額は91百万円であります。
(3) Research and Development Activities In the Game Business, research and development activities for game engines, etc. are conducted mainly at Tri-Ace Co., Ltd. Total research and development expenses for the third quarter of the current consolidated fiscal year were 91 million yen.

page 4​

 

[KR_EP]

Last post for this OP is some fiscal husbandry as I wrap things up with the Q&A from back in August for the Financial Year covering July 1, 2023 - June 30, 2024. Sōta Fujii was not in attendance but it's worth pointing out I'd asked similar questions privately in early 2023. Of the 7 questions, I've decided to highlight the ones about the challenges of securing new orders.

2024.08.29
2024年6月期決算説明会 質疑応答要旨
Summary of Q&A for FY2024 Full Year​

Q.3) Will the outstanding loan balance continue to decrease?
Since cash outflows precede cash inflows in the game business, working capital needs will increase as business performance recovers. We intend to maintain a close relationship with financial institutions so that we can obtain additional financing in the future.

Q.5) In the forecast for the next fiscal year, profits are maintained while sales decrease. Are the decreasing expenses cost of sales? Or is it SG&A expenses?
Cost of Sales. In the current fiscal year, while sales declined, the impact was controlled mainly by controlling the cost of subcontracting. In the next fiscal year as well, we will control the costs so that there will be no impact on profits.

Q.6) Is the cause of the small size of orders and delays in receiving orders internal or external? And what is the probability of recovery in the next fiscal year?
Our analysis indicates that external factors are having a significant impact. As projects are becoming larger in size, clients are launching fewer new projects and deliberations are becoming more protracted. Under these circumstances, we are taking a serious look at the order plan. We will conduct sales activities always assuming the possibility that projects will not start as expected. We are also working across the group to identify human resources, and we are building a system that enables us to match human resources wherever in the group they are available to receive orders.

Working capital, as in they have to pay upfront to employ staff & develop projects as it seeks publishing deals. The other questions cover the loan which as I mentioned is something I'd queried before however the change from 1 year to a 6 month syndicated loan agreement appears to have spurred others to query the terms of the deal. This in turn has led to NJ Holdings to negotiate & announce news of a new loan agreement in late September. I'll cover in a new OP alongside the latest 3 year mid-term plan at some point before the Q1 Financial Results are released in early November. But first things first, working on a separate OP as Game Studio announced a download sales milestone for Aooni once I've compiled the eShop chart rankings.