Since we achieved our medium-term earnings targets in the fiscal year ended March 2021, we set new medium-term earnings targets to reach over the course of the three years starting with the fiscal year ending in March 2022. They are net sales of ¥400-500 billion and operating income of ¥60-75 billion.In order to reach these targets, we will step up our content development capabilities, expand our geographic reach, and establish new sales channels.To step up our content development capabilities, we will cultivate our IP ecosystem, create new IP that we will leverage in a multitude of ways, and bring renewed vitality to existing IP. By steadily implementing such initiatives, we will further bolster our recurring income and thereby achieve sustained growth.To expand our geographic reach, we will work to put our content in the hands of more customers so that we can enhance our Group’s presence in the rapidly growing regions of Southeast Asia, the Middle East, and Latin America. We will achieve this by accelerating the development of our subsidiary in India and by aligning with an influential partner in the Middle East.Lastly, to establish new sales channels, we will ramp up the distribution of our content via the cloud in anticipation of the coming cloud era. We will do so not only by offering a substantial amount of our content on a variety of cloud platforms, but also by establishing our own channel. We will strive to achieve the aforementioned targets through these efforts in content development, geographic expansion, and new sales channel creation.
We are living in a world in which the way people play and interact with games is constantly changing. Gaming is becoming more diversified with many people around the world attracted to games and content that reach far beyond their universe or story. Our Group’s content and game portfolios must therefore evolve, allowing us to embody the coming eras’ to ensure that we embody the new possibilities for each era and continue delivering the ultimate unparalleled excitement we are striving to produce. “Excitement” is an abstract concept, but as an entertainment company, our mission is nothing short of constantly giving shape to that abstract concept in the most up-to-date ways possible. With that in mind, we will strive to achieve our new medium-term earnings targets.
In the fiscal year ended March 2021, we maintained a consolidated dividend payout ratio of 30%, and additionally provided a special dividend of ¥10 to commemorate the achievement of our medium-term earnings targets. Dividends will remain the centerpiece of our shareholder return policy, and while we will continue to use a consolidated dividend payout ratio of 30% as a guideline, we want to be more flexible about how we reward our shareholders. We see sharing profits with our shareholders as a key part of our management strategy and will implement return policies that meet the expectations of our shareholders, while also paying due consideration to striking a balance with growth investment.
I look forward to your understanding and continued support.
President and Representative Director