Gree Holdings.inc. · TSE:3632
Gree Holdings.inc — Q1 FY2021 Earnings Presentation
27 slides from Gree Holdings.inc's earnings presentation, Oct 27, 2020
Slide 1: FY2021 First Quarter Financial Results
GREE, Inc. FY2021 First Quarter Financial Results October 27, 2020 Copyright © GREE, Inc. All Rights Reserved.
Slide 2: Executive Summary
Executive Summary Financial ◼ Net Sales ¥15.2 billion, Operating Income ¥1.6 billion, EBITDA ¥1.8 Results billion Overview ⁃ Operating income surpassed our forecast ◼ Started global distribution of SINoALICE ⁃ Off to a strong start with distribution kicked off in 139 countries and territories on Jul
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: FY21 1Q Financial Results Overview
1. Financial Results Overview (Consolidated) FY21 1Q Financial Results Overview Net sales ¥15.2 billion , operating income ¥1.6 billion , EBITDA ¥1.8 billion Billions of yen FY21 FY20 FY20 1Q QoQ YoY 4Q 1Q Net sales 15.24 0.24 -0.56 14.99 15.80 Operating income 1.60 1.66 0.42 -0.07 1.18 Ordinary inc
Slide 6: Net Sales, EBITDA, and Operating Income
1. Financial Results Overview (Consolidated) Net Sales, EBITDA, and Operating Income Increase in net sales and income on strong performance overseas Billions of yen and lower fixed costs 20.0 25.0％ 16.4 15.8 15.4 15.0 15.2 10.0 12.5％ 10.5% 8.0% 7.4% 5.0% 1.6 1.8 1.2 1.3 1.1 1.2 1.4 0.8 ▲0.1 0.1 0 0.
Slide 7: 1Q Operating Income Analysis
1. Financial Results Overview (Consolidated) 1Q Operating Income Analysis Operating income of ¥1.6 billion owing to rising sales and lower fixed costs, etc. Billions of yen ¥1.66bn increase +1.41 1.60 Operating +0.24 +0.01 -0.07 income FY20 4Q FY21 1Q Increase in Decrease in Decrease in net sales va
Slide 8: 1Q Operating Income Analysis (adjusted for one-time costs)
1. Financial Results Overview (Consolidated) 1Q Operating Income Analysis(adjusted for one-time costs ) Operating income adjusted for one -time costs rose by ¥0.8 billion Billions of yen ¥0.83bn increase +0.58 1.60 +0.24 +0.01 0.76 Operating income FY20 4Q FY21 1Q （adjusted for one-time Increase in
Slide 9: FY21 1Q Cost Structure
1. Financial Results Overview (Consolidated) FY21 1Q Cost Structure Total costs down ¥1.4 billion QoQ, to ¥13.6 billion Billions of yen FY21 FY20 FY20 Factors in change（QoQ） 1Q QoQ YoY 4Q 1Q Decrease due to winding down of impact from anniversary Advertising 0.45 -0.17 -0.20 events held for major ti
Slide 10: Stock Repurchase
1. Financial Results Overview (Consolidated) Stock Repurchase Implemented the stock repurchase to increase shareholder returns and to implement a flexible capital policy Details of share repurchase Class of stock to be GREE common stock repurchased Up to 20 million shares Total number of shares 8.9%
Slide 11: Contents
Contents 1. Financial Results Overview 2. Operational Overview 3. Appendix Copyright © GREE, Inc. All Rights Reserved.
Slide 12: Operational Overview: Review and Summary of 1Q FY21
2. Operational Overview: Summary Review and Summary of 1Q FY21 Business Plan Review Continue to - In the game business, made progress in overseas strengthen 3 Overall distribution and improved the earnings potential of earnings existing titles pillars - Started gloval distribution of SINoALICE on Ju
Slide 13: Progress Made
2. Operational Overview: Game business Progress Made Coin consumption (App games) Topics Billions of coins ◼ Started global distribution of SINoALICE on July 1 10.3 10.5 10.0 9.7 9.7 100 10.0 ◼ Coin consumption remained stable even after the rise associated with anniversary events held in 4Q settled
Slide 14: Overseas Distribution: Strengthening earning potential
2. Operational Overview: Game business Overseas Distribution: Strengthening earning potential Increased earning potential of SINoALICE by launching global version Release of global version Coin consumption 1.4x • Released in 139 countries/territories on 4Q 1Q July 1 FY20 FY21 © 2017-2020 Pokelabo In
Slide 15: Overseas distribution: China
2. Operational Overview: Game business Overseas distribution: China Made progress with major titles in China through cooperation with our local distribution partners DanMachi Another Eden Released September 24 Released scheduled for November 5 • Distribution partner: Shengqu Games Limited • Distribu
Slide 16: Development pipeline
2. Operational Overview: Game business Development pipeline Plan to continue to release 2-3 in-house developed new titles per year; aiming to generate hits Assault Lily: Last Bullet Heaven Burns Red KNIGHT OF SIDONIA game project In-house developed In-house developed In-house developed ・Scheduled re
Slide 17: Expanding and Energizing Fan Communities ①
2. Operational Overview: Game business Expanding and Energizing Fan Communities ① Energizing users by adding main storylines Another Eden SINoALICE Added main storyline Added main storyline • Began distribution of final part of Volume 2 • Began distribution of new storyline © 2017-2020 Pokelabo Inc.
Slide 18: Expanding and Energizing Fan Communities ②
2. Operational Overview: Game business Expanding and Energizing Fan Communities ② Energized users by adding storylines unique to the games Senki Zesshou SYMPHOGEAR XD DanMachi UNLIMITED Added storyline unique to the game Added storyline unique to the game • Added new major storyline drafted by • Add
Slide 19: Further develop platform
2. Operational Overview: Live Entertainment Further develop platform Expanded content on REALITY by adding original programs and new avatars Original Program Avatar gacha REALITY Werewolf Party Summer Festival • Aired special program featuring TV • Expanded lineup of avatar variations personalities
Slide 20: Strengthened Media Potential
2. Operational Overview: Advertising and media Strengthened Media Potential Energized user communities through campaigns, etc. aumo LIMIA Expanded user base Held photo posting contest • Over 10 million monthly users and 5 million • Energized user community through photo app downloads contest 20 Copy
Slide 21: Contents
Contents 1. Financial Results Overview 2. Operational Overview 3. Appendix Copyright © GREE, Inc. All Rights Reserved.
Slide 22: Overseas Distribution
3. Appendix Overseas Distribution Distribution regions North Hong Kong, Mainland Japan America Europe Taiwan, etc. China Released Released Released Released Released 9/24 DanMachi Agreement Released Released 7/1 Released signed SINoALICE Release Released Released Released Released scheduled 11/5 Ano
Slide 23: Coin Consumption
3. Appendix Coin Consumption Billions of coins 14.8 14.7 14.6 14.0 14.0 0.6 0.5 0.4 0.5 0.4 4.3 3.9 3.8 3.8 3.9 10.0 10.3 10.5 9.7 9.7 1Q 2Q 3Q 4Q 1Q FY20 FY21 ■Game apps ■Browser games (smartphones) ■Browser games (feature phones) Note: • Excludes coin consumption from licensed titles and mainstay
Slide 24: 1Q FY21 Cost Structure
3. Appendix 1Q FY21 Cost Structure Billions of yen FY21 FY20 FY20 1Q QoQ YoY 4Q 1Q Rental charges 0.55 0.00 0.01 0.55 0.54 Labor costs 2.19 -0.19 -0.12 2.38 2.31 Others 3.87 -0.05 -0.38 3.92 4.25 Cost of sales 6.61 -0.24 -0.49 6.85 7.11 Advertising 0.45 -0.17 -0.20 0.62 0.65 Commission fees 3.34 0.2
Slide 25: 1Q FY21 Balance Sheet
3. Appendix 1Q FY21 Balance Sheet Billions of yen FY21 FY20 FY20 1Q QoQ YoY 4Q 1Q Current assets 95.3 -3.7 0.6 99.0 94.7 Fixed assets 28.5 1.0 -0.5 27.5 29.0 Total assets 123.8 -2.7 0.1 126.5 123.7 Current liabilities 10.1 -2.0 -0.9 12.1 11.0 Fixed liabilities 1.3 0.3 0.4 1.0 0.9 Total liabilities 1
Slide 26: Group Headcount
3. Appendix Group Headcount Number of employees 1,729 1,712 1,702 1,710 1,616 1Q 2Q 3Q 4Q 1Q 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 26 Copyright © GREE, Inc. All R
Slide 27: Forward-looking statements disclaimer
■ 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.