Financial

Summary of Financial Results: First Half 2017

Published by KLab

Summary

KLab Inc. reported a strong first‑half fiscal 2017 performance, with consolidated revenue rising 23 % to ¥10.92 billion compared to ¥8.88 billion in the same period of FY2016. Operating income increased markedly to ¥1.97 billion, up from a loss of ¥51 million the previous year, driven by robust sales of core mobile games and the launch of “Captain Tsubasa ～Tatakae Dream Team～” in mid‑June. Cost of sales grew modestly by 3.9 % to ¥7.02 billion, largely reflecting higher royalty and commission expenses linked to revenue growth. Selling, general and administrative costs fell 6.6 % to ¥1.93 billion due to reduced advertising and outsourcing spend, while non‑operating income of ¥217 million—primarily foreign‑exchange gains—offsets a non‑operating expense of ¥647 million, resulting in ordinary profit of ¥2.19 billion and net income attributable to owners of parent of ¥1.45 billion. Total assets reached ¥14.53 billion, up ¥2.40 billion from FY2016, with net assets increasing to ¥10.68 billion and an equity ratio of 73.3 %. The company maintained a healthy liquidity position, with current assets at ¥9.10 billion and current liabilities at ¥3.85 billion, while retained earnings grew by ¥1.54 billion. KLab revised its FY2017 forecasts upward, projecting revenue of ¥22.5–25.5 billion, operating income of ¥2.20–4.00 billion, ordinary profit of ¥2.40–4.20 billion, and net income attributable to owners of parent between ¥1.60–2.80 billion, reflecting favorable market trends and recent game releases. During the period, KLab acquired ABASEA Inc., making it a 100 % subsidiary and adding Spicemart Inc. as a sub‑subsidiary, with the acquisition cost recorded at ¥1 billion cash. This strategic move aims to enhance data‑analysis capabilities for mobile game operations and expand cross‑border market presence.

From the report

Summary of Financial Results for First Half of Fiscal Year Ending December 31, 2017 2 (Japanese GAAP) (Consolidated) This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. Name of listed company: KLab Inc. Securities code: 3656 Representative: [Name] Tetsuya Sanada [Title] Contact: [Name] Kazuyuki Takata [Title] Scheduled filing date for securities report: Scheduled date for dividends payment: Supplementary information for quarterly results: Information meeting for quarterly financial report: August 8, 2017 Stock exchange listing: Tokyo Stock Exchange First Section URL: http://www.klab.com/jp/ President & CEO Managing Director TEL: +81-3-5771-1100 August 8, 2017 － Yes Yes *Institutional investors and analysts only (Amounts of less than one million yen are rounded off) 1. Consolidated Operating Performance for First Half of FY2017 (January 1, 2017 – June 30, 2017) (1) Consolidated Operating Results (year-to-date) (% represents rate of increase or decrease over same period of previous fiscal year) Revenue Operating income Ordinary income Profit (loss) attributable to owners of parent Million yen % Million yen % Million yen % Million yen % First half of FY2017 10,924 23.0 1,968 － 2,185 － 1,454 － First half of FY2016 8,879 (14.9) 51 (96.7) (746) － (1,342) － Note: Comprehensive income First half of FY2017: 1,498 million yen [―%] First half of FY2016: (1,348) million yen [―%]

rent Million yen % Million yen % Million yen % Million yen % First half of FY2017 10,924 23.0 1,968 － 2,185 － 1,454 － First half of FY2016 8,879 (14.9) 51 (96.7) (746) － (1,342) － Note: Comprehensive income First half of FY2017: 1,498 million yen [―%] First half of FY2016: (1,348) million yen [―%] Net income Diluted net income per share per share Yen Yen First half of FY2017 39.65 38.38 First half of FY2016 (36.75) － Note: Diluted net income per share for the first half of FY2016 is not listed due to the fact that the net income per share is a loss. (2) Consolidated Financial Status Total assets Net assets Equity ratio Million yen Million yen % First half of FY2017 14,533 10,675 73.3 FY2016 12,133 9,130 75.1 Reference: Shareholders’ equity First half of FY2017: 10,655 million yen FY2016: 9,110 million yen 2. Dividends Annual dividends End of Q1 End of Q2 End of Q3 Year End Total Yen Yen Yen Yen Yen FY2016 ― 0.00 ― 0.00 0.00 FY2017 ― 0.00 FY2017 (Forecast) ― 0.00 0.00 Note: Revisions to the most recently announced dividend forecast: None

3. Consolidated Operating Performance Forecasts for FY2017 (January 1, 2017 – December 31, 2017) (% represents rate of increase or decrease over same period of previous fiscal year) Revenue Operating income Ordinary income Profit attributable to Net income owners of parent per share Million yen % Million yen % Million yen % Million yen % Yen FY2017 ～25,500 30.1 4,000 213.8 4,200 405.7 2,800 － 76.31～43.60 22,500 ～14.8 ～2,200 ～72.6 ～2,400 ～189.0 ～1,600 Note: Revisions to the most recently disclosed business performance forecast: Yes ■ Explanatory Notes (1) Changes to major subsidiaries during first half of FY2017: None (2) Changes to accounting principles or treatment: Yes Note: Refer to “(1) Adoption of Special Accounting Treatment” in section “2. Summary Information (Notes)” on page 3 of Supporting Information. (3) Changes to accounting policies, estimates, and restatements ① Changes to accounting revision of accounting standards: None ② Changes other than ①: None ③ Changes to accounting estimates: None ④ Restatements: None (4) Number of outstanding shares (common shares) ① Period end outstanding shares First half of 38,017,700 shares FY2016 37,945,500 shares (including treasury shares) FY2017 ② Period end treasury shares First half of 1,255,800 shares FY2016 1,282,900 shares FY2017 ③ Average outstanding shares First half of 36,694,825 shares First half of 36,529,141 shares during the period FY2017 FY2016 ■ Note Regarding Quarterly Review Procedures Quarterly financial results summaries are not subject to quarterly review procedures.

800 shares FY2016 1,282,900 shares FY2017 ③ Average outstanding shares First half of 36,694,825 shares First half of 36,529,141 shares during the period FY2017 FY2016 ■ Note Regarding Quarterly Review Procedures Quarterly financial results summaries are not subject to quarterly review procedures. ■ Note Regarding the Appropriate Usage of Forecasts and Other Special Instructions The forecasts in this report are based on the current data available to the Group and certain reasonable assumptions and may vary according to various factors in the future. For forecasts, refer to “(3) Forecasts and Various Factors in the Future” in section “1. Qualitative Information on Management Performance” on page 3 of Supporting Information.

Supporting Information INDEX 1. Qualitative Information on Management Performance 2 (1) Business Operation 2 (2) Analysis of Financial Status 2 (3) Forecasts and Various Factors in the Future 3 2. Summary Information (Notes) 3 (1) Adoption of Special Accounting Treatment 3 (2) Additional Information 3 3. Consolidated Financial Statements 4 (1) Consolidated Balance Sheets 4 (2) Consolidated Statements of Income and Comprehensive Income 6 (3) Notes Related to Consolidated Financial Statements 8 (Notes related to ongoing concern assumptions) 8 (Notes in case of significant change in shareholders’ equity) 8 (Segment information) 9 (Subsequent significant events) 10 - 1 -

1. Qualitative Information on Management Performance (1) Business Operation For the first half of FY2017, consolidated revenue was 10,924,642 thousand yen, up 23.0% from the same period of the previous fiscal year. The increase over the previous period was due mainly to the fact that revenue for the Company’s current core games performed favorably without declining. Additionally, the release of its new game “Captain Tsubasa ～Tatakae Dream Team～” (Japanese title) on June 13 also contributed to the increase in revenue. As for expenditures, the cost of sales was 7,023,328 thousand yen, up 3.9% from the same period of the previous fiscal year. This change is mainly attributable to increases in royalties and commissions due to the overall increase in revenue. Selling, general and administrative expenses were 1,932,949 thousand yen, down 6.6% from the same period of the previous fiscal year. This is mainly attributable to decreases in advertising expenses and outsourcing expenses. Additionally, 217,968 thousand yen was listed in non-operating income. This is mainly attributable to 175,367 thousand yen in foreign exchange gains generated from fluctuations in the foreign currency exchange market when completing transactions involving foreign currency. As a result, consolidated revenue for the first half of FY2017 was 10,924,642 thousand yen, operating profit was 1,968,364 thousand yen, ordinary profit was 2,185,685 thousand yen, and profit attributable to owners of parent was 1,454,989 thousand yen.

Pages: 13
Words: 3,460
Format: PDF
Type: Financial

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