Gree Holdings.inc. · TSE:3632
Gree Holdings.inc — Q1 FY2017 Earnings Presentation
31 slides from Gree Holdings.inc's earnings presentation, Nov 1, 2016
Slide 1: GREE, Inc. FY2017 First Quarter Financial Results
GREE, Inc. FY2017 First Quarter Financial Results 1 November, 2016 Copyright © GREE, Inc. All Rights Reserved.
Slide 2: Executive Summary
Executive Summary Financial Net Sales ¥14.9 billion, Operating Income ¥2.5 billion Results ⁃ QoQ profit growth on strong performance from new titles, successful cost Overview control efforts Native game new release blitz off to a good start ⁃ Domestic native game business: Two new titles driving gro
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: FY17 1Q Financial Results Overview
1. Financial Results Overview (Consolidated) FY17 1Q Financial Results Overview Net sales ¥14.9bn, operating income ¥2.5bn Billions of yen FY17 1Q FY16 4Q FY16 1Q QoQ YoY Net sales 14.91 -0.73 -4.40 15.63 19.31 EBITDA 2.71 -0.15 -2.04 2.86 4.75 Operating income 2.54 0.33 -1.84 2.22 4.39 Ordinary inc
Slide 6: Net Sales, EBITDA, and Operating Income
1. Financial Results Overview (Consolidated) Net Sales, EBITDA, and Operating Income Operating income margin up 2.9 percentage points to 17.1% Billions of yen 25.0 25.0% 22.7% 22.1% 21.6% 19.31 18.13 16.81 15.63 17.1% 14.91 14.2% 12.5 12.5% 4.75 4.39 4.36 4.00 3.99 3.64 2.86 2.71 2.54 2.22 0.0 0.0%
Slide 7: Operating Income Analysis
1. Financial Results Overview (Consolidated) Operating Income Analysis Sales down, but operating income up ¥330 million due to cost cutting measures Fixed costs decline on rebound from one-off costs posted in 4Q Billions of yen ¥0.33bn Increase ＋0.97 2.54 2.22 -0.73 ＋0.08 Operating Decrease in Decre
Slide 8: FY17 1Q Cost Structure
1. Financial Results Overview (Consolidated) FY17 1Q Cost Structure Total costs decreased ¥1.1 billion QoQ to ¥12.4 billion Billions of yen FY17 FY16 FY16 Factors in change（QoQ） 1Q QoQ YoY 4Q 1Q Advertising 0.63 -0.58 -0.58 Partly on rebound from one-off costs in 4Q 1.21 1.21 Commission 3.41 0.47 -0
Slide 9: 1H FY17 Earnings Forecast
1. Financial Results Overview (Consolidated) 1H FY17 Earnings Forecast Net sales of ¥30bn, operating income of ¥4bn Billions of yen 1Q 2Q 1H FY17 forecast results forecast Net sales 14.9 15.1 30.0 Operating income 2.5 1.5 4.0 Ordinary income 2.6 1.4 4.0 Net income 10.8 0.7 11.5 Top line ⁃ In the dom
Slide 10: 2. Operational Overview
Contents 1. Financial Results Overview 2. Operational Overview 3. Appendix Copyright © GREE, Inc. All Rights Reserved.
Slide 11: Game Business Summary: Review and Summary of 1Q
2. Operational Overview: Summary Review and Summary of 1Q Business Plan Review Achieve turnaround in • New titles off to strong start, progress toward Overall game business, invest turnaround in game business in new businesses • QoQ top-line turnaround in Japan native game business • Improving KPIs
Slide 12: Development Pipeline
2. Operational Overview: Game Business, Native Games (domestic market) Development Pipeline Six titles in development, including original titles and IP-based titles FY17 Already To be released Total for released 2Q-4Q FY17 Wright Flyer Studios 2 3 5 Pokelabo ― 3 3 Notes: ・All titles in pipeline have
Slide 13: Progress Made
2. Operational Overview: Game Business, Native Games (domestic market) Progress Made Coin Consumption Topics Billions of yen Two new titles (including partner titles) 6 off to strong start 4.9 • Memories of the Blue released 4.6 4.6 September 20 4.4 -Improving KPIs, expect growth 3.7 through tie up
Slide 14: Title in Development: Senki Zesshou SYMPHOGEAR XD Unlimited
2. Operational Overview: Game Business, Native Games (domestic market) Title in Development Senki Zesshou SYMPHOGEAR XD Unlimited • Joint development by Bushiroad and PokeLabo, scheduled for launch in 2017 • Symphonic battle RPG that faithfully re-creates the world of anime series Senki Zesshou SYMP
Slide 15: Title in Development: Rara-MAGI
2. Operational Overview: Game Business, Native Games (domestic market) Title in Development Rara-MAGI • Schoolgirl-themed RPG featuring music, magic, and an all-star cast of voice actors created in cooperation with leading Japanese animation studio A-1 Pictures Note: Screenshot is of development ver
Slide 16: Title in Development: Another Eden
2. Operational Overview: Game Business, Native Games (domestic market) Title in Development Another Eden: The Cat Who Goes Beyond Time • Travel beyond time and space in this full-on RPG featuring an all-star development staff • Currently under painstaking development in closed beta testing Note: Scr
Slide 17: Title in Development: A Farewell to Arms
2. Operational Overview: Game Business, Native Games (domestic market) Title in Development A Farewell to Arms 画像 • Players feel the thrill of trouncing their enemies in this 3D action game set in Japan in the year 2080 • Under development for closed beta testing Note: Screenshot is of development v
Slide 18: Acquisition of Strong Title: DragonSoul
2. Operational Overview: Game Business, Native Games (overseas market) Acquisition of strong title Up-and-coming title DragonSoul acquired on 6 October DragonSoul Coin Consumption RPG targeting mid-core gamers Sustained growth Up 2.4x Jan Feb Mar Apr May Jun Jul Aug Sep 1月 2月 3月 4月 5月 6月 7月 8月 9月 20
Slide 19: Global Release of Licensed Titles
2. Operational Overview: Game Business Global Release of Licensed Titles Naruto Shippuden: Ultimate Ninja Blazing One Punch Man Global release Distribution in Japan and China scheduled to start in 2017 • Released in North America and Europe in • Smartphone game based on anime popular August 2016 in
Slide 20: Game Operation Business
2. Operational Overview: Game Business Game Operation Business Coin consumption Topics Expect to reach 10bn coins Strong coin consumption in 1Q • Further growth expected in 2Q 10bn coins Full-scale entry into native game operation business • Guruguru Shokan Magical Gear • Pre-registration started on
Slide 21: New Businesses: Progress Made
2. Operational Overview: New Businesses Progress Made Net sales Topics Up 1.5x YoY Home-Related Services Platform • Increased number of Renoco sales channels Up - Started sales through Yahoo! 1.5x Shopping website -Started sales through Rakuten Reform website in late October Health & Fitness Platfor
Slide 22: VR Business
2. Operational Overview: New Businesses VR Business Working with Partners to Expand Business Joint development Tie up with ADORES with SQUARE ENIX Opened VR amusement center Development of titles based on strong IP • Developing original VR game attractions • VR character command RPG • To be installe
Slide 23: 3. Appendix
Contents 1. Financial Results Overview 2. Operational Overview 3. Appendix Copyright © GREE, Inc. All Rights Reserved.
Slide 24: Coin Consumption (1)
3. Appendix Coin Consumption (1) Overall coin consumption Web game coin consumption Billions of coins Billions of coins 30 20 25.6 16.8 24.0 15.8 22.2 5.2 14.7 4.7 20.1 13.8 19.0 12.7 4.2 6.9 3.7 6.4 3.3 5.8 5.6 15 11.7 10 5.3 11.0 10.4 10.1 9.4 9.9 9.4 8.8 8.2 7.4 8.8 8.2 7.6 6.4 6.3 0 0 1Q 2Q 3Q 4
Slide 25: Coin Consumption (2)
3. Appendix Coin Consumption (2) Japan Native Games Overseas Native Games Billions of coins Billions of coins 6 5 4.9 4.6 4.6 3.9 4.4 3.6 3.7 3.2 2.7 3 2.53 1.7 0 0 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q FY16 FY17 FY16 FY17 Coin consumption declined temporarily owing to the business Note: Classified by area
Slide 26: Coin Consumption (3)
3. Appendix Coin Consumption (3) Overseas Japan Millions of U.S. dollars Billions of coins 50 30 21.7 20.4 32 19.1 30 17.5 17.3 28 25 10.6 15 9.8 25 9.1 8.3 8.7 16 11.1 10.5 9.9 9.2 8.6 0 0 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q FY16 FY17 FY16 FY17 Note: ■ Third-party ■ First-party/Co-developed Coin consumpt
Slide 27: 1Q FY17 Cost Structure
3. Appendix 1Q FY17 Cost Structure Millions of yen FY17 FY16 FY16 1Q 4Q 1Q QoQ YoY Rental charges 660 -330 -239 990 899 Labor costs 2,130 -135 -552 2,265 2,682 Others 1,794 319 203 1,475 1,590 Cost of sales 4,584 -145 -588 4,729 5,172 Advertising 631 -580 -581 1,211 1,212 Commission fees 2,897 -50 -
Slide 28: 1Q FY17 Balance Sheet
3. Appendix 1Q FY17 Balance Sheet Billions of yen FY17 FY16 FY16 1Q QoQ YoY 4Q 1Q Current assets 103.91 9.22 15.6 94.69 88.31 Fixed assets 17.17 -0.52 -3.85 17.68 21.02 Total assets 121.08 8.71 11.75 112.37 109.33 Current liabilities 11.43 2.04 -2.28 9.39 13.71 Fixed liabilities 0.37 0.0 -0.33 0.37
Slide 29: New Business Services
3. Appendix New Business Services Home-Related Services Platform Ad Media Business Health & Fitness Platform VR Business 28 Copyright © GREE, Inc. All Rights Reserved.
Slide 30: Breakdown of Group Headcount
3. Appendix Breakdown of Group Headcount Number of employees Headcount at Group companies end-1Q Japan Game Business - 832 Native Game Business Pokelabo, Wright Flyer Studios (427) Web Game Business funplex (338) Shared game depts. ExPlay (67) Includes GREE International Entertainment, Inc. Native G
Slide 31: Forward-looking statements disclaimer
■ This document includes some 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 guaran