Nippon Ichi Software Financial Results: Fiscal Year Ended March 2021

Key insights

6 takeaways

01
Nippon Ichi Software experienced significant fiscal growth for the year ended March 31, 2021, with net sales rising 59.1% to 5.3 billion yen and operating profit surging 171.3% to 1.248 billion yen.See it on page 1
02
Net income attributable to owners of the parent reached 905 million yen, marking a 236.2% increase compared to the previous fiscal year.See it on page 10
03
The company’s strong financial performance was driven by a robust software lineup, including the release of Disgaea 6: Defiance of Destiny, and increased demand for home-based gaming during the COVID-19 pandemic.See it on page 4
04
The business strategy focused on expanding international reach through the subsidiary NIS America, Inc., alongside a commitment to nurturing new intellectual property and strengthening product development.See it on page 6
05
The company maintains a solid financial position with a 69.9% equity ratio, total assets of 6.387 billion yen, and cash and cash equivalents of 3.778 billion yen.See it on page 5
06
For the fiscal year ending March 2022, the company projects continued profitability with a target of 4.725 billion yen in net sales and 1.060 billion yen in operating profit.See it on page 1

Summary

Nippon Ichi Software’s financial results for the fiscal year ended March 31, 2021, demonstrate significant growth in both revenue and profitability. The company reported consolidated net sales of 5.3 billion yen, representing a 59.1% increase over the previous fiscal year. Operating profit surged by 171.3% to 1.248 billion yen, while ordinary profit rose by 164.4% to 1.285 billion yen. Net income attributable to owners of the parent reached 905 million yen, a 236.2% increase compared to the prior year.

This performance was driven by a robust software lineup, including titles such as Disgaea 6: Defiance of Destiny and various other console and digital releases. Despite the challenges posed by the COVID-19 pandemic, the company benefited from increased demand for home-based gaming entertainment. The business strategy focused on strengthening product development, nurturing new intellectual property, and expanding sales in North America and Europe through its subsidiary, NIS America, Inc.

The company’s financial position strengthened, with total assets rising to 6.387 billion yen and net assets reaching 4.637 billion yen. Cash and cash equivalents increased substantially to 3.778 billion yen, supported by strong operating cash flows of 1.553 billion yen. The company maintains a solid equity ratio of 69.9%. Looking ahead to the fiscal year ending March 2022, the company projects continued growth, targeting net sales of 4.725 billion yen and an operating profit of 1.060 billion yen, while continuing to prioritize the creation of new intellectual property and the effective utilization of existing assets.