Slide 1: FY2022 Third Quarter Financial Results
GREE, Inc. FY2022 Third Quarter Financial Results May 12, 2022 Copyright © GREE, Inc. All Rights Reserved.
Slide 2: Executive Summary
Executive Summary ◼ Net sales ¥20.8 billion, operating income ¥3.6 billion, EBITDA ¥3.8 Financial billion ⁃ Internet and Entertainment Business operating income of ¥3.1 billion surpassed our Results forecast despite sizable upfront investments made in a new hit title Overview ⁃ Investment and Incuba
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: FY22 3Q Financial Results Overview
1. Financial Results Overview (Consolidated) FY22 3Q Financial Results Overview Net sales ¥20.8 billion, operating income ¥3.6 billion, EBITDA ¥3.8 billion Billions of yen FY22 FY22 FY21 3Q QoQ YoY 2Q 3Q Net sales 20.85 1.34 4.61 19.51 16.24 Operating income 3.58 1.05 0.01 2.52 3.56 Ordinary income
Slide 6: Net Sales and Operating Income
1. Financial Results Overview (Consolidated) Net Sales and Operating Income Sales and operating income up QoQ in the Internet and Entertainment business, Investment and Incubation business made stable contribution to profit Internet and Entertainment Investment and Incubation Business Business Billi
Slide 7: Operating Income Analysis
1. Financial Results Overview (Consolidated) Operating Income Analysis Sales growth in the Internet and Entertainment Business on strong start from a new title and an increase in fixed costs due to one-time expenses resulted in operating income of ¥3.6 billion. Billions of yen ¥1.05bn increase +0.40
Slide 8: Cost Structure
1. Financial Results Overview (Consolidated) Cost Structure Total costs up ¥0.3 billion QoQ, to ¥17.3 billion Billions of yen FY22 FY22 FY21 Factors in change（QoQ） 3Q QoQ YoY 2Q 3Q Advertising 1.87 0.88 1.56 Increase on higher ad costs for game apps 0.99 0.32 Commission Fees, etc. 6.77 -0.96 2.57 De
Slide 9: Dividend Forecast
1. Financial Results Overview (Consolidated) Dividend Forecast Planned dividend of ¥11 per share in line with our dividend distribution policy. We expect growth in sales and income in the Internet and Entertainment Business, but a YoY decline in investment-related gains following strong performance
Slide 10: 2. Operational Overview
Contents 1. Financial Results Overview 2. Operational Overview 3. Appendix Copyright © GREE, Inc. All Rights Reserved.
Slide 11: Review and Summary of 3Q
2. Operational Overview: Summary Review and Summary of 3Q Business Plan Review Continue to strengthen 3 Overall ‒ Aggressively invested in three businesses earnings pillars ‒ Released Heaven Burns Red on February 10, off to a Internet and Entertainment “Game strong start Entertainment engine, IP, ▪
Slide 12: Heaven Burns Red
2. Operational Overview: Game Heaven Burns Red Off to a strong start, aiming for long-term operation and profit contribution through additional content, etc. Off to a strong start Aggressive promotions Started distribution on February 10, 2022 TV commercials Outdoor advertising • Achieved No.1 sales
Slide 13: Echoes of Mana
2. Operational Overview: Game Echoes of Mana Started distribution on April 27, 2022, off to a solid start • Action RPG for smartphones from Mana series • Simultaneous global release © 2022 SQUARE ENIX CO., LTD. All Rights Reserved. Developed by WRIGHT FLYER STUDIOS 13 Copyright © GREE, Inc. All Righ
Slide 14: Pipeline
2. Operational Overview: Game Pipeline Plan to continue to release 2-3 in-house developed new titles per year; aiming to generate hits KNIGHTS OF SIDONIA That Time I Got Reincarnated as a Slime: Shoui No Kizuna ISEKAI Memories Heaven Burns Red In-house developed collaboration In-house developed coll
Slide 15: Expanding and Energizing Fan Communities
2. Operational Overview: Game Expanding and Energizing Fan Communities Energized users by adding more content and anniversary events That Time I Got Reincarnated as a Slime: ISEKAI Memories Another Eden Added content Marked three-year anniversary of global version (Distributed by BANDAI NAMCO Entert
Slide 16: Further Developed Platform
2. Operational Overview: Metaverse Further Developed Platform Made progress with REALITY, adding features, expanding content, and moving forward with global distribution New features and content Global distribution “World” Conducted events for overseas users • Conducted events using the "World" • En
Slide 17: Strengthened Media Potential
2. Operational Overview: Advertising and Media Strengthened Media Potential aumo My Business steadily increased the number of participating stores, promoted further expansion of content by strengthening cooperation with sports teams, etc. Collaboration with aumo My Business Montedio Yamagata Number
Slide 18: Overview of Total Assets Under Management (AUM)
2. Operational Overview: Investment and Incubation Overview of Total Assets Under Management (AUM) Total AUM: 71.4 billion yen Up 4.5 billion yen QoQ Total AUM Main investments Based on investee valuation Billions of yen +3.6 -1.6 +2.6 71.4 66.9 GREE LP Fund GREE Increase by Decrease by Revaluation,
Slide 19: Strengthening Investment
2. Operational Overview: Investment and Incubation Strengthening Investment Direct investment balance (valuation of investments): 45.8 billion yen Unrealized value remains high Quarterly change in direct investment balance Investment status in 3Q (operational investment securities + investment secur
Slide 20: Status of GREE LP Fund and CVC Investment Results
2. Operational Overview: Investment and Incubation Status of GREE LP Fund and CVC Investment Results Achieved high long-term returns on GREE LP Fund and CVC investments Valuation of investments by investment period Net multiples, IRR (operational investment securities) Performance Benchmarking of Do
Slide 21: 3. Appendix
Contents 1. Financial Results Overview 2. Operational Overview 3. Appendix Copyright © GREE, Inc. All Rights Reserved.
Slide 22: Analysis of Operational Investment Securities
3. Appendix Analysis of Operational Investment Securities Billions of yen ＋1.3 -0.7 -0.0 23.1 23.7 10.1 Investment Declines from Other factors 9.3 gains earnings distributions and Valuation & Valuation & sales translation translation adjustments adjustments 14.5 13.0 Amount Amount invested invested
Slide 23: 3Q FY22 Cost Structure
3. Appendix 3Q FY22 Cost Structure Billions of yen FY22 FY22 FY21 3Q QoQ YoY 2Q 3Q Rental charges 0.55 -0.00 0.04 0.55 0.51 Labor costs 2.40 0.05 0.16 2.35 2.24 Others 4.71 -0.82 1.12 5.53 3.58 Cost of sales 7.65 -0.78 1.32 8.43 6.33 Advertising 1.87 0.88 1.56 0.99 0.32 Commission fees 4.54 0.08 1.7
Slide 24: 3Q FY22 Balance Sheet
3. Appendix 3Q FY22 Balance Sheet Billions of yen FY22 FY22 FY21 3Q QoQ YoY 2Q 3Q Current assets 97.1 2.2 -32.3 94.9 129.4 Fixed assets 16.6 1.5 5.3 15.1 11.4 Total assets 113.7 3.7 -27.1 110.0 140.8 Current liabilities 15.4 1.8 4.7 13.6 10.7 Fixed liabilities 9.3 0.0 -2.2 9.3 11.5 Total liabilities
Slide 25: Group Headcount
3. Appendix Group Headcount Number of employees 1,589 1,603 1,604 1,595 1,596 3Q 4Q 1Q 2Q 3Q FY21 FY22 Notes: ● Includes non-consolidated group companies; as of the end of each quarter. 25 Copyright © GREE, Inc. All Rights Reserved.
Slide 26: ■ 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.