Nippon Ichi Software: Annual Securities Report (26th Term)

Nippon Ichi Software’s 26th fiscal year, spanning April 1, 2018, to March 31, 2019, reflects a period of strategic transition characterized by a focus on long-term brand equity despite short-term financial contraction. The company generated consolidated net sales of 4.52 billion yen and an operating profit of 426 million yen, representing a year-over-year decline of 4.5% and 35.2%, respectively. While these figures indicate a challenging fiscal environment, the organization maintained a stable financial foundation, with total assets reaching 4.95 billion yen and net assets rising to 3.35 billion yen.

The core business strategy remains anchored in the "Entertainment for All" vision, which prioritizes the creation of new intellectual properties and the revitalization of existing franchises. Operations are concentrated within a single business segment, supported by key partnerships with major entities such as Sega of America and Nintendo. To mitigate risks associated with development cost inflation and reliance on specific software titles, the company has implemented robust internal controls and governance frameworks. The fiscal year concluded with an unqualified opinion from Azusa Audit Corporation, confirming the integrity of the company’s financial reporting and internal management systems.

Looking toward future growth, the company has proactively secured capital to fund development initiatives. In June 2019, it issued 3,750 units of the 6th series of stock acquisition rights to Daiwa Securities, aiming to raise funds for IP expansion while adhering to strict regulatory compliance. By balancing consistent dividend payments with strategic investments in development, the company seeks to navigate market volatility and enhance its global competitive position. These efforts, combined with preparations for upcoming revenue recognition standards, underscore a commitment to sustainable corporate development and shareholder value.