Second Quarter (Interim) Financial Summary [Japanese GAAP] (Consolidated)

Performance Overview

In the interim consolidated results, Papyless reported net sales of 7,349 million yen, a 1.4% decrease compared with the same period last year, an operating loss of 147 million yen, an ordinary loss of 114 million yen, and an interim net loss attributable to owners of parent of 209 million yen. Market conditions were affected by intensified competition in e-books and increased advertising and promotion expenses. By segment, the e-book business recorded net sales of 7,352 million yen, a 1.4% decrease year-on-year, and the IP production business recorded net sales of 0 million yen with a segment loss of 139 million yen. The company will continue investing in overseas expansion and next-generation content development.

Financial Position and Dividends

At the interim period-end, total assets amounted to 12,095 million yen, net assets were 7,854 million yen, and the equity ratio was 64.8%. Cash and deposits were 9,525 million yen, accounts payable were 1,281 million yen, and advance receipts were 2,016 million yen. Cash and cash equivalents decreased to 7,670 million yen. It is noted that Neo Aldo was excluded from the scope of consolidation as a change in the consolidated scope. No dividend payment start date or other dividend-related information is specified as a special note.