Slide 1: FY2021 Fourth Quarter Financial Results
GREE, Inc. FY2021 Fourth Quarter Financial Results August 6, 2021 Copyright © GREE, Inc. All Rights Reserved.
Slide 2: Executive Summary
Executive Summary ◼ Net sales ¥56.8 billion, operating income ¥5.4 billion, EBITDA ¥6.2 billion ⁃ Achieved YoY growth in operating income Full- year ⁃ In the game business, made progress in strengthening the global operation systems and developing new titles FY21 ⁃ Continued making investments in th
Slide 3: Contents
Contents 1. Financial Results Overview 2. Operational Overview 3. Appendix Copyright © GREE, Inc. All Rights Reserved.
Slide 4: 1. Financial Results Overview
Contents 1. Financial Results Overview 2. Operational Overview 3. Appendix Copyright © GREE, Inc. All Rights Reserved.
Slide 5: FY21 Full-Year and 4Q Financial Results Overview
1. Financial Results Overview (Consolidated) FY21 Full-Year and 4Q Financial Results Overview FY21 Net sales ¥56.8 billion , operating income ¥5.4 billion , EBITDA ¥6.2 billion . Net income ¥13.5 billion on profit from investment fund operation business, etc. YoY growth in both operating income and
Slide 6: Net Sales, EBITDA, and Operating Income
1. Financial Results Overview (Consolidated) Net Sales, EBITDA, and Operating Income Net sales and operating income firm Billions of yen 20.0 25.0％ 15.0 15.2 13.7 13.9 13.9 12.4% 10.0 12.5％ 10.5% 10.7% 4.1% 1.6 1.8 1.7 1.9 1.7 1.5 0.6 0.8 ▲ 0.1 0.1 0 0.0％ ▲0.4％ 4Q 1Q 2Q 3Q 4Q FY20 FY21 Net Sales Ope
Slide 7: 4Q Operating Income Analysis
1. Financial Results Overview (Consolidated) 4Q Operating Income Analysis Operating income of ¥1.5 billion due to increased in fixed costs Billions of yen ¥0.23bn decrease 1.72 +0.04 ▲0.05 ▲0.21 1.50 Increase in Increase in Increase in net sales variable costs fixed costs Operating Operating income
Slide 8: FY21 4Q Cost Structure
1. Financial Results Overview (Consolidated) FY21 4Q Cost Structure Total costs up ¥0.3 billion QoQ, to ¥12.4 billion Billions of yen FY21 FY21 FY20 Factors in change（QoQ） 4Q QoQ YoY 3Q 4Q Advertising 0.51 0.20 -0.11 Increase due to app game anniversary events 0.31 0.62 Commission Fees, etc. 3.97 -0
Slide 9: Stock Repurchase
1. Financial Results Overview (Consolidated) Stock Repurchase Implemented stock repurchase to increase shareholder returns and to implement a flexible capital policy (up to 20 million shares worth up to ¥12.0 billion) Cumulative repurchases（as of July 31, 2021） Total number of shares repurchased Rou
Slide 10: Fiscal Year-End Dividend
1. Financial Results Overview (Consolidated) Fiscal Year-End Dividend Dividend of ¥12.5 per share Dividend distribution plan Maintain a dividend on DOE of 2.0%, consolidated dividend payout ratio of 20% or higher FY21 Forecast FY20 Actual Record date June 30, 2021 June 30, 2020 Dividend per share ¥1
Slide 11: FY22 Outlook
1. Financial Results Overview (Consolidated) FY22 Outlook - Achieved profit growth and reached turning point in earnings in FY21 - Aiming for growth in sales and profit in FY22 from stable operation of games and Overall new titles - Operating income will depend on investments such as promotion costs
Slide 12: 2. Operational Overview
Contents 1. Financial Results Overview 2. Operational Overview 3. Appendix Copyright © GREE, Inc. All Rights Reserved.
Slide 13: FY21 Review and Summary
2. Operational Overview: FY21 results Review and Summary FY21 Business Plan Review Continue to strengthen 3 Overall - Aggressively invested in three businesses earnings pillars - New titles off to a strong start and progress made on Game/entertainment “Game new titles in development - Improved earni
Slide 14: Development of New Titles
2. Operational Overview: FY21 results Game Development of New Titles New title off to a strong start and progress made on new titles in development New title New titles in development • Released Assault Lilly: Last Bullet. Off to a • Strengthened our development pipeline by strong start as one of ou
Slide 15: Growth in first-party IP title
2. Operational Overview: FY21 results Game Growth in first-party IP title Continued global growth of first-party IP title Another Eden, which achieved record-high coin consumption in its 5th year of operation Another Eden coin consumption Growth focus points ◼ Continuous release of high-quality new
Slide 16: Expansion of Overseas Distribution
2. Operational Overview: FY21 results Game Expansion of Overseas Distribution Continued growth in overseas coin consumption through expansion to new regions Overseas coin consumption (app games) Measures taken in FY21 ◼ Released global version of SINoALICE on July 1, 2020 +54％ ◼ Strengthened global
Slide 17: Further develop platform
2. Operational Overview: FY21 results Live Entertainment Further develop platform Strengthened functionality and expanded content portfolio for REALITY and made progress on global distribution Strengthened functionalities and expanded contents portfolio Global distribution Countries and territories
Slide 18: Expanded User Base
2. Operational Overview: FY21 results Advertising and Media Expanded User Base Strengthened the media potential of our vertical media portfolio Strengthened media potential Measures to meet users’ needs Outing & travel Housing & lifestyles Fashion Beauty • Delivered information tailored to meet user
Slide 19: Targeting Medium-Term Growth
2. Operational Overview: Medium-Term Plan -Internet Media Business Targeting Medium-Term Growth Targeting sustainable growth from three earnings pillars Scale Third pillar: Metaverse business Expand the scale of global operations through aggressive investment Second pillar: Advertising and media bus
Slide 20: FY22 Business Strategy Summary
2. Operational Overview: FY22 Business Strategy Summary Business Plan Summary Continue to strengthen 3 - Continue aggressive investment aimed at Overall earnings strengthening three earnings pillars pillars - Release multiple new titles to create new income “Game sources engine, IP, Entertainment -
Slide 21: Game Business
2. Operational Overview: FY22 Business Strategy -Game Game Business Plan to continue to release 2-3 in-house developed new titles per year Maximizing earnings through aggressive global distribution KNIGHTS OF SIDONIA Shoui No Kizuna Heaven Burns Red Echoes of Mana In-house developed In-house develop
Slide 22: Metaverse Business
2. Operational Overview: FY22 Business Strategy -Metaverse Metaverse Business Invest in further platform growth Strengthen functionalities, expand contents Strengthen global distribution 5th ranking app in the US • Add functionality “World”, allowing enhanced • 5th ranking app in the US communicatio
Slide 23: Scaling up our vertical media portfolio
2. Operational Overview: FY22 Business Strategy -Advertising and media Advertising and media business Continued investment aimed at increasing media capabilities Scaling up our vertical media portfolio Outing & travel Housing & lifestyles Fashion Beauty 23 Copyright © GREE, Inc. All Rights Reserved.
Slide 24: Investment and incubation Business Plan
2. Operational Overview: Investment and incubation Business Plan Supporting the growth and development of startups Business operation system ◼ Investing in startups and in major Investment and incubation business Japanese and overseas VC that invest in the IT and Internet sectors ◼ Investment in VC
Slide 25: Medium-to-long Term Outlook
2. Operational Overview: Investment and incubation Medium-to-long Term Outlook We expect stable medium-to-long term profit contribution from this business as it steadily moves toward the investment return phase Breakdown of investment Expect stable profit return phases ◼ We expect stable profit over
Slide 26: 3. Appendix
Contents 1. Financial Results Overview 2. Operational Overview 3. Appendix Copyright © GREE, Inc. All Rights Reserved.
Slide 27: Metaverse and REALITY
3. Appendix: Metaverse business Metaverse and REALITY The Metaverse is a digital universe wherein people around the world What is the can inhabit avatars to interact, play, and conduct economic activities Metaverse? in much the same way as in the real world REALITY A digital universe where users can
Slide 28: Coin Consumption
3. Appendix: 4Q Overview Game Coin Consumption Coin consumption (App games) Topics Billions of coins ◼ Conducted anniversary events for 10.5 9.7 mainstay titles such as Another 100 10.0 8.5 8.6 Eden 8.4 ◼ Initial strong performance of new title Assault Lily: Last Bullet has 50 5.0 settled down 0 4Q
Slide 29: Expanding and Energizing Fan Communities ①
3. Appendix: 4Q Overview Game Expanding and Energizing Fan Communities ① Energized users by conducting anniversary events and adding content Another Eden SINoALICE Marked four-year anniversary Marked four-year anniversary • Added long-form content and character • Ran major promotional campaign, adde
Slide 30: Expanding and Energizing Fan Communities ②
3. Appendix: 4Q Overview Game Expanding and Energizing Fan Communities ② Energized users by conducting anniversary events and updating functions Assault Lily: Last Bullet DanMachi Held GvG event Marked four-year anniversary • Full-scale launch of multiplayer functionality • Added new storyline uniqu
Slide 31: Further develop platform
3. Appendix: 4Q Overview Live Entertainment Further develop platform Expanded contents on REALITY by adding avatars and unique programs Avatar gacha Official program Masquerade Ball of Light and Shadow REALITY Star Light • Expanded lineup of avatar variations • Streamed music program featuring top-
Slide 32: Strengthened Media Potential
3. Appendix: 4Q Overview Advertising and media Strengthened Media Potential Energized communities through campaigns and collaborations aumo LIMIA Held posting contest Collaboration with Daiso • Energized user community through photo • Strengthened media potential through contest collaboration with D
Slide 33: Coin Consumption
3. Appendix Coin Consumption Billions of coins 14.6 14.0 0.4 0.4 12.3 12.3 11.7 3.8 0.3 0.2 3.9 0.2 3.5 3.4 3.2 10.5 9.7 8.5 8.6 8.4 4Q 1Q 2Q 3Q 4Q FY20 FY21 ■Game apps ■Browser games (smartphones) ■Browser games (feature phones) Note: 33 • Excludes coin consumption from licensed titles and mainstay
Slide 34: 4Q FY21 Cost Structure
3. Appendix 4Q FY21 Cost Structure Billions of yen FY21 FY21 FY20 4Q QoQ YoY 3Q 4Q Rental charges 0.53 0.02 -0.02 0.51 0.55 Labor costs 2.20 -0.04 -0.18 2.24 2.38 Others 3.14 -0.38 -0.78 3.52 3.92 Cost of sales 5.87 -0.39 -0.99 6.26 6.85 Advertising 0.51 0.20 -0.11 0.31 0.62 Commission fees 2.75 -0.
Slide 35: 4Q FY21 Balance Sheet
3. Appendix 4Q FY21 Balance Sheet Billions of yen FY21 FY21 FY20 4Q QoQ YoY 3Q 4Q Current assets 109.1 1.7 10.1 107.4 99.0 Fixed assets 32.3 -1.1 4.8 33.4 27.5 Total assets 141.4 0.6 14.9 140.8 126.5 Current liabilities 11.6 1.0 -0.5 10.7 12.1 Fixed liabilities 9.5 -1.9 8.5 11.5 1.0 Total liabilitie
Slide 36: Group Headcount
3. Appendix Group Headcount Number of employees 1,710 1,616 1,607 1,603 1,589 4Q 1Q 2Q 3Q 4Q FY20 FY21 Notes: • Includes non-consolidated group companies; as of the end of each quarter • Headcount declined by 94 QoQ in 1Q FY21 owing to restructuring of some businesses 36 Copyright © GREE, Inc. All R
Slide 37: ■ This document includes forecasts, which are based on currently available information. Actual performance
■ 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.