Gree Holdings.inc. · TSE:3632
Gree Holdings.inc — Q1 FY2023 Earnings Presentation
25 slides from Gree Holdings.inc's earnings presentation, Nov 1, 2022
Slide 1: FY2023 First Quarter Financial Results
GREE, Inc. FY2023 First Quarter Financial Results November 1, 2022 Copyright © GREE, Inc. All Rights Reserved.
Slide 2: Executive Summary
Executive Summary ◼ Net sales ¥16.6 billion, operating income ¥1.6 billion, Financial EBITDA ¥1.7 billion Results Overview ⁃ The Internet and Entertainment Business surpassed our forecast on strong performance from Heaven Burns Red ◼ Continued strong performance from Heaven Burns Red ⁃ Maintained st
Slide 3: Contents
Contents 1. Financial Results Overview 2. Operational Overview 3. Appendix Copyright © GREE, Inc. All Rights Reserved.
Slide 4: Contents
Contents 1. Financial Results Overview 2. Operational Overview 3. Appendix Copyright © GREE, Inc. All Rights Reserved.
Slide 5: FY23 1Q Financial Results Overview
1. Financial Results Overview (Consolidated) FY23 1Q Financial Results Overview Net sales ¥16.6 billion, operating income ¥1.6 billion, EBITDA ¥1.7 billion Billions of yen FY23 FY22 FY22 1Q QoQ YoY 4Q 1Q Net sales 16.59 -4.29 2.92 20.88 13.67 Operating income 1.58 -2.26 0.03 3.84 1.55 Ordinary incom
Slide 6: Net Sales and Operating Income
1. Financial Results Overview (Consolidated) Net Sales and Operating Income Sales and profit decline in the Internet and Entertainment Business and the Investment and Incubation Business Internet and Entertainment Investment and Incubation Business Business Billions of yen Billions of yen 20.08 20.3
Slide 7: Operating Income Analysis
1. Financial Results Overview (Consolidated) Operating Income Analysis Income in the Internet and Entertainment Business showed a decline following strong performance from titles released in FY22 and anniversary events, and operating income was ¥1.6bn Billions of yen ¥2.26bn 3.84 -4.19 decrease ＋2.1
Slide 8: Cost Structure
1. Financial Results Overview (Consolidated) Cost Structure Total costs down ¥2.0 billion QoQ, to ¥15.0 billion Billions of yen FY23 FY22 FY22 Factors in change（QoQ） 1Q QoQ YoY 4Q 1Q Advertising 1.28 0.09 0.46 - 1.19 0.82 Commission Fees, etc. 4.94 -2.19 1.60 Decrease due to lower sales 7.13 3.34 Ot
Slide 9: Contents
Contents 1. Financial Results Overview 2. Operational Overview 3. Appendix Copyright © GREE, Inc. All Rights Reserved.
Slide 10: Entertainment Business Plan Summary / 1Q review
2. Operational Overview: Summary 1Q review Business Plan Summary Continue to strengthen ‒ Aggressively invested in three businesses targeting strong Overall 3 earnings pillars medium-to-long-term growth “Game engine, IP, and ‒ Heaven Burns Red Entertainment Game and global” strategies ▪ Maintained s
Slide 11: Strong performance from Heaven Burns Red
2. Operational Overview: Game and Anime Strong performance from Heaven Burns Red Expanded main storyline and conducted successful campaign to achieve strong performance and high sales ranking Maintained high sales ranking Added content 0 ◼ Began distribution of Part 1 of Chapter 4 of main story 10th
Slide 12: Developed and strengthened Heaven Burns Red IP
2. Operational Overview: Game and Anime Developed and strengthened Heaven Burns Red IP Energized fan community by holding in-person event and developing merchandise, developed and strengthened IP Held in-person event Developed merchandise • Held in-person event, energized fan • Developed a wide rang
Slide 13: Pipeline
2. Operational Overview: Game and Anime Pipeline Leveraging knowhow gained from producing hit titles in FY22 to plan and develop strong titles ◼ Planning and developing multiple titles New Titles based on first-party and third-party IP ◼ Aggressively distributing existing titles in Overseas overseas
Slide 14: Global distribution
2. Operational Overview: Metaverse Global distribution Total global downloads of REALITY top 10 million • Global distribution to 63 countries and territories, total global downloads topped 10 million in October 2022 14 Copyright © GREE, Inc. All Rights Reserved.
Slide 15: Expansion of content
2. Operational Overview: Metaverse Expansion of content Energized users by launching new games and expanding content based on collaborations with popular IP Launched new games Collaboration with popular IP • Launched games that make use of real time • Leveraged REALITY’s world functions to communica
Slide 16: Expanded communication functions
2. Operational Overview: Metaverse Expanded communication functions Energized users by expanding communication functions Reaction Sticker Feature Chat GIFs • Enhanced communication via avatars through • Made communication more convenient with the reaction sticker feature the Chat GIFs 16 Copyright ©
Slide 17: Media and SaaS
2. Operational Overview: Commerce and DX Media and SaaS Strengthened media potential and made progress in strengthening aumo My Business functions Strengthened Strengthened media potential aumo My Business functions • Strengthened media potential via a comment • Added marketing support functions tha
Slide 18: Overview of Total Assets Under Management (AUM)
2. Operational Overview: Investment and Incubation Overview of Total Assets Under Management (AUM) Total AUM: ¥78.9 billion, up ¥7.3 billion QoQ on asset revaluation etc. Total AUM Main investments Billions of yen Based on investee valuation FoF ＋6.9 78.9 71.6 ＋0.8 ｰ0.4 FoF Increase by Decrease by R
Slide 19: Rise in unrealized value
2. Operational Overview: Investment and Incubation Strengthening Investment Operational investment securities investment valuation of ¥32.6 billion, unrealized value remains high Quarterly change in operational investment securities investment valuation Investment status in 1Q Billions of yen Book v
Slide 20: Status of FoF and CVC Investment Results
2. Operational Overview: Investment and Incubation Status of FoF and CVC Investment Results Achieved high long-term returns on FoF and CVC investments Valuation of investments by investment period Net multiples, IRR Billions of yen Performance Benchmarking of Domestic VC 16.9 27% 20% 11% 17% IRR 1%
Slide 21: Contents
Contents 1. Financial Results Overview 2. Operational Overview 3. Appendix Copyright © GREE, Inc. All Rights Reserved.
Slide 22: 1Q FY23 Cost Structure
3. Appendix 1Q FY23 Cost Structure Billions of yen FY23 FY22 FY22 1Q QoQ YoY 4Q 1Q Rental charges 0.61 -0.01 0.10 0.63 0.51 Labor costs 2.27 -0.13 -0.00 2.41 2.27 Others 4.16 -0.84 1.02 5.01 3.15 Cost of sales 7.05 -0.99 1.12 8.04 5.93 Advertising 1.28 0.09 0.46 1.19 0.82 Commission fees 3.40 -1.27
Slide 23: 1Q FY23 Balance Sheet
3. Appendix 1Q FY23 Balance Sheet Billions of yen FY23 FY22 FY22 1Q QoQ YoY 4Q 1Q Current assets 104.2 4.0 -26.5 100.2 130.7 Fixed assets 16.4 -0.1 5.3 16.5 11.1 Total assets 120.6 3.9 -21.1 116.7 141.8 Current liabilities 14.1 -1.8 1.6 16.0 12.6 Fixed liabilities 16.8 7.0 6.8 9.8 10.0 Total liabili
Slide 24: Group Headcount
3. Appendix Group Headcount Number of employees 1,604 1,595 1,596 1,616 1,632 1Q 2Q 3Q 4Q 1Q FY22 FY23 Notes: ● Includes non-consolidated group companies; as of the end of each quarter 24 Copyright © GREE, Inc. All Rights Reserved.
Slide 25: This document includes forecasts, which are based on currently available information. Actual performance may
◼ This document includes forecasts, which are based on currently available information. Actual performance may differ due to various factors. ◼ When producing this document, we were careful to avoid errors or omissions, but the accuracy and completeness of the provided information is not guaranteed.