Gree Holdings.inc. · TSE:3632
Gree Holdings.inc — Q2 FY2023 Earnings Presentation
28 slides from Gree Holdings.inc's earnings presentation, Feb 8, 2023
Slide 1: FY2023 Second Quarter Financial Results
GREE, Inc. FY2023 Second Quarter Financial Results February 8, 2023 Copyright © GREE, Inc. All Rights Reserved.
Slide 2: Executive Summary
Executive Summary ◼ Net sales ¥16.6 billion, operating income ¥1.7 billion, Financial EBITDA ¥1.8 billion Results ⁃ The Internet and Entertainment Business operating income of ¥1.5 billion Overview surpassed our forecast due to the continued strong performance from Heaven Burns Red ◼ Continued stron
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 2Q Financial Results Overview
1. Financial Results Overview (Consolidated) FY23 2Q Financial Results Overview Net sales ¥16.6 billion, operating income ¥1.7 billion, EBITDA ¥1.8 billion Ordinary income declined QoQ to ¥0.6bn due to posting of foreign exchange losses Net income declined to net loss of ¥0.9bn on posting of valuati
Slide 6: Net Sales and Operating Income
1. Financial Results Overview (Consolidated) Net Sales and Operating Income Compared to the previous quarter, sales and income down in the Internet and Entertainment Business, but up in the Investment and Incubation Business Internet and Entertainment Investment and Incubation Business Business Bill
Slide 7: Operating Income Analysis
1. Financial Results Overview (Consolidated) Operating Income Analysis Despite sales decline in the Internet and Entertainment Business, operating income reached ¥1.7bn on growth in sales in the Investment and Incubation Business and lower costs Billions of yen ¥0.15bn increase +0.09 +0.07 1.73 1.58
Slide 8: Cost Structure
1. Financial Results Overview (Consolidated) Cost Structure Total costs down ¥0.2 billion QoQ, to ¥14.8 billion Billions of yen FY23 FY23 FY22 Factors in change（QoQ） 2Q QoQ YoY 1Q 2Q Advertising 1.24 -0.04 0.25 - 1.28 0.99 Commission fees, etc. 4.72 -0.22 -3.01 Decrease due to lower sales 4.94 7.73
Slide 9: Contents
Contents 1. Financial Results Overview 2. Operational Overview 3. Appendix Copyright © GREE, Inc. All Rights Reserved.
Slide 10: Internet and Entertainment Business Summary
2. Operational Overview: Summary 2Q review Business Plan Summary Continue to strengthen ‒ Aggressively invested in three businesses targeting strong Overall 3 earnings pillars medium-to-long-term growth ‒ Heaven Burns Red remained strong “Game engine, IP, and ▪ Made progress on global distribution,
Slide 11: Global distribution of Heaven Burns Red
2. Operational Overview: Game and Anime Global distribution of Heaven Burns Red Made progress on global distribution, release of Korean and traditional Chinese versions scheduled for February 10, 2023 Expanded scale of distribution Aggressive promotion • Announced release of Korean and traditional •
Slide 12: Developed and strengthened Heaven Burns Red IP
2. Operational Overview: Game and Anime Developed and strengthened Heaven Burns Red IP Made Google Play’s list of “Best Games of 2022” Conducted aggressive multifaceted distribution to further develop and strengthen IP Made Google Play’s list of “Best Games of 2022” Multifaceted distribution of IP •
Slide 13: That Time I Got Reincarnated as a Slime: ISEKAI Memories
2. Operational Overview: Game and Anime That Time I Got Reincarnated as a Slime: ISEKAI Memories Won story category in Google Play’s “Best Games of 2022” Energized fan community with anniversary events, etc. Google Play’s “Best Games of 2022” Marked one-year anniversary • Won story category in Googl
Slide 14: Expanding and Energizing Fan Communities
2. Operational Overview: Game and Anime Expanding and Energizing Fan Communities Energized fan community by expanding content and holding global events Another Eden SINoALICE Added to main storyline Held global event • Began distribution of Main Story Part 3 on • Held second global event WORLD GRAN
Slide 15: Pipeline
2. Operational Overview: Game and Anime Pipeline We are planning and developing new titles based on knowhow gained from our hit titles in FY22 and plan aggressive global distribution ◼ Planning and developing multiple titles New Titles based on first-party and third-party IP ◼ Conducting aggressive
Slide 16: Create IP, strengthen growth potential
2. Operational Overview: Game and Anime Create IP, strengthen growth potential Participated in over 20 anime production committees and built up a store of knowhow on IP creation and development Handyman Saitou in another world. Malevolent Spirits: Mononogatari • Began airing TV anime on January 8, 2
Slide 17: Global distribution
2. Operational Overview: Metaverse Global distribution Steady growth in overseas REALITY sales, progress on global distribution Overseas sales growth Events for overseas users Approx. 2x 2022年 2022年 June September December 2022 • Strengthened content for overseas users and • Held broadcast events fo
Slide 18: Expansion of content
2. Operational Overview: Metaverse Expansion of content Leveraged REALITY’s world functions to expand content and energize users Tokyo Dome World Collaboration with popular IP • Held Tokyo Dome World for a limited time in • Held world event in collaboration with Code cooperation with Mitsui Fudosan
Slide 19: Expanded communication functions
2. Operational Overview: Metaverse Expanded communication functions Energized users by expanding communication functions Avatar Shop Collab Stickers • Added avatar shop where users can purchase • Launched collab sticker function allowing avatar items users to collaborate with friends’ avatars to mak
Slide 20: Commerce and DX
2. Operational Overview: Commerce and DX Strengthened media potential and made progress in DX Business Strengthened media potential in the Commerce Business and strengthened the social commerce domain in the DX Business by expanding content Strengthened social Strengthened media potential commerce d
Slide 21: Overview of Total Assets Under Management (AUM)
2. Operational Overview: Investment and Incubation Overview of Total Assets Under Management (AUM) Total AUM: ¥77.3 billion, down ¥1.7 billion QoQ on asset revaluation etc. Total AUM Main investments Billions of yen Based on investee valuation FoF 78.9 ＋1.2 ｰ1.1 -1.7 77.3 FoF Increase by Decrease by
Slide 22: Rise in unrealized value
2. Operational Overview: Investment and Incubation Strengthening Investment Operational investment securities investment valuation of ¥30.8 billion, unrealized value remains high Quarterly change in operational investment securities investment valuation Investment status in 2Q Billions of yen Book v
Slide 23: 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 16.3 22% 20% 16% IRR 2% 11%
Slide 24: Contents
Contents 1. Financial Results Overview 2. Operational Overview 3. Appendix Copyright © GREE, Inc. All Rights Reserved.
Slide 25: 2Q FY23 Cost Structure
3. Appendix 2Q FY23 Cost Structure Billions of yen FY23 FY23 FY22 2Q QoQ YoY 1Q 2Q Rental charges 0.64 0.02 0.09 0.61 0.55 Labor costs 2.23 -0.04 -0.12 2.27 2.35 Others 4.45 0.29 -1.08 4.16 5.53 Cost of sales 7.32 0.27 -1.11 7.05 8.43 Advertising 1.24 -0.04 0.25 1.28 0.99 Commission fees 3.22 -0.18
Slide 26: 2Q FY23 Balance Sheet
3. Appendix 2Q FY23 Balance Sheet Billions of yen FY23 FY23 FY22 2Q QoQ YoY 1Q 2Q Current assets 101.1 -3.1 6.2 104.2 94.9 Fixed assets 15.6 -0.9 0.4 16.4 15.1 Total assets 116.6 -4.0 6.6 120.6 110.0 Current liabilities 14.4 0.3 0.8 14.1 13.6 Fixed liabilities 16.7 -0.2 7.4 16.8 9.3 Total liabilitie
Slide 27: Group Headcount
3. Appendix Group Headcount Number of employees 1,595 1,596 1,616 1,632 1,618 2Q 3Q 4Q 1Q 2Q FY22 FY23 Notes: ● Includes non-consolidated group companies; as of the end of each quarter 27 Copyright © GREE, Inc. All Rights Reserved.
Slide 28: Forward-looking statements notice
◼ 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.