Drecom Co., Ltd. · TSE:3793

Drecom — Q1 FY03/2025 Earnings Presentation

31 slides from Drecom's earnings presentation, Jul 30, 2024

  1. Slide 1: First quarter of fiscal year ended March 31, 2025 Financial Results Presentation Materials

    First quarter of fiscal year ended March 31, 2025​ Financial Results Presentation Materials Drecom Co., Ltd.​ July 30, 2024 Please refer to the Fact Sheet on our website for consolidated financial results, cost of sales, SG&A expenses, etc., and billing sales in the game business. https://drecom.co.

  2. Slide 2: Summary of this document

    Summary of this document​ Sales of new titles are lower than expected. Currently in operation while improving issues. Q1 Existing mainstay titles will make a stable contribution to earnings through anniversary events. FY03/2025 - Sales 2,122 million yen(-9.5% YoY) (April-June) Operating loss -67 mil

  3. Slide 3: Agenda

    1. Review of Q1 (Apr-Jun) FY03/2025 2. Forecast for FY03/2025 3. Medium-Term Goals 4. Appendix Copyright Drecom Co., Ltd. All Rights Reserved. 3

  4. Slide 4: New title Evil Prince and the Puppet to be released on June 3

    1. Review of Q1 (Apr-Jun) FY03/2025 New title Evil Prince and the Puppet to be released on June 3 The company has been working to develop a fan community through SNS operations, nurture IP, and expand in various areas, including game development. The game will be released on June 3, 2024. Real event

  5. Slide 5: Summary of business results first quarter of FY03/2025

    1. Review of Q1 (Apr-Jun) FY03/2025 Summary of business results first quarter of FY03/2025 Sales of Evil Prince and the Puppet fell short of expectations. Expenses increased with the release. Existing mainstay titles will make a stable contribution to earnings by implementing anniversary events. FY0

  6. Slide 6: Topics of each business first quarter of FY03/2025

    1. Review of Q1 (Apr-Jun) FY03/2025 Topics of each business first quarter of FY03/2025 ​ Sales of the new title Evil Prince and the Puppet are below expectations - Issues such as in-game billing design are assumed to be the cause. - The "persistence rate," a key priority confirmed during the CBT, is

  7. Slide 7: Q1 FY03/2025 Operating income (QoQ comparison, by expense)

    1. Review of Q1 (Apr-Jun) FY03/2025 Q1 FY03/2025 Operating income (QoQ comparison, by expense)​ Net Sales were about the same level as the previous quarter. Profit decreased due to an increase in advertising and other expenses associated with the release of new titles. Decrease in revenues (Increase

  8. Slide 8: Q1 FY03/2025 Results (YoY by segment)

    1. Review of Q1 (Apr-Jun) FY03/2025 Q1 FY03/2025 Results (YoY by segment) Game business is stable despite decreasing revenue due to maturation and closures. New titles and content business requiring upfront investment. Net sales Operating income (Millions of yen)​ Content business Decrease in Net sa

  9. Slide 9: Q1 FY03/2025 Revenue from Titles in Operation

    1. Review of Q1 (Apr-Jun) FY03/2025 Q1 FY03/2025 Revenue from Titles in Operation​ The number of titles under management was 10 as of Q1. Existing long-term titles remain strong. Profit/loss of 10 titles* under management (Q1 Apr-Jun 2024) "Evil Prince and the Puppet" Aiming to reduce deficit throug

  10. Slide 10: Agenda

    1. Review of Q1 (Apr-Jun) FY03/2025 2. Forecast for FY03/2025 3. Medium-Term Goals 4. Appendix Copyright Drecom Co., Ltd. All Rights Reserved. 10

  11. Slide 11: Summary of full-year forecasts for FY03/2025

    2. Forecast for FY03/2025 Summary of full-year forecasts for FY03/2025 A year to raise the level of sales and profit base. Despite the increasing difficulty of achieving the earnings forecast, there is no change at this time because two new products are scheduled for 2H. Forecasts for FY03/2025 FY03

  12. Slide 12: Game business: Progress of three titles to be released during this fiscal year

    2. Forecast for FY03/2025 Game business: Progress of three titles to be released during this fiscal year Since the previous fiscal year, more emphasis has been placed on pre-release verification and evaluation in user testing in the development of new titles. Implementing strategies for the other tw

  13. Slide 13: Image of progress in the second quarter of FY03/2025

    2. Forecast for FY03/2025 Image of progress in the second quarter of FY03/2025 The company expects to see a steady transition toward the release of new titles in 2H FY2025. Overall earnings forecast is expected to be biased towards 2H FY03/2025. ■Progress Image in Q2 Sales : Seasonal events and othe

  14. Slide 14: Three years to scale up FY03/2026 – FY03/2027

    3. Forecast for FY03/2025 Three years to scale up We expect low profit margins in FY03/2025 due to expenses associated with the release of new products. Aim to achieve both growth and profit from FY03/2026 onward. FY03/2024 FY03/2025 FY03/2026 – FY03/2027 Sales growth: CAGR 20% or more Sales: 9.7 bi

  15. Slide 15: Agenda

    1. Review of Q1 (Apr-Jun) FY03/2025 2. Forecast for FY03/2025 3. Medium-Term Goals 4. Appendix Copyright Drecom Co., Ltd. All Rights Reserved. 15

  16. Slide 16: Medium-Term Goals

    3. Medium-Term Goals Medium-Term Goals Aiming to become a global provider of entertainment content based on IP x technology Current Medium-Term Goals Entertainment​ Game (Mobile and PC consoles) content business​ Publication Mobile game​ IP (Novels, comics, webtoons) business​ Video Entertainment (A

  17. Slide 17: The market to which we belong: Entertainment Content Market

    3. Medium-Term Goals The market to which we belong: Entertainment Content Market The popularity of Japanese contents, especially animations and PC/console games, has been increasing worldwide due to the spread of video distribution services and digital sales. Overseas exports of Japanese content are

  18. Slide 18: Our Strengths and Competitive Advantages

    2. Medium-Term Goals​ Our Strengths and Competitive Advantages Opportunities are expanding in the entertainment content market. Despite being a latecomer, we will seize the moment by leveraging our strengths to enter the market and aim for sustainable growth and increased corporate value. Strength ◼

  19. Slide 19: Business Model of Entertainment Content Market and Objectives of Each Business

    2. Medium-Term Goals​ Business Model of Entertainment Content Market and Objectives of Each Business In the process of owning, developing, and monetizing IP, we have organized the positioning of each area according to the characteristics of each business. Then determine the business areas that our c

  20. Slide 20: Status of development of in-house IP: Wizardry

    3. Medium-Term Goals Status of development of in-house IP: Wizardry Acquire copyrights and trademarks of popular IPs and make them into in-house IPs, and then increase IP value through multimedia development. The latest in the series, Wizardry Variants Daphne, is scheduled for release in October 202

  21. Slide 21: Status of development of in-house IP: Drecom Media

    3. Medium-Term Goals Status of development of in-house IP: "Drecom Media” Book publication of web novels, comic book adaptation, and publication of original works to own, develop, and monetize IP. In the two years since the business was launched, four series have sold more than 100,000 copies, inclu

  22. Slide 22: Entertainment x Technology Area: Web3 and Generative AI

    3. Medium-Term Goals Entertainment x Technology Area: Web3 and Generative AI Initiatives aimed at leveraging technologies that have a high affinity with entertainment content and help advance each business. Progress is being made in Web3, blockchain, and generative AI initiatives. Web3 - Blockchain

  23. Slide 23: Agenda

    1. Review of Q1 (Apr-Jun) FY03/2025 2. Forecast for FY03/2025 3. Medium-Term Goals 4. Appendix Copyright Drecom Co., Ltd. All Rights Reserved. 23

  24. Slide 24: FY03/2025 Full-Year Results Approach

    4. Appendix FY03/2025 Full-Year Results Approach​ Existing: • Unprofitable titles were withdrawn during the fiscal year ending March 31, 2024. Decrease in sales due to the closure of one other title and the termination of a contracted development project, etc. • For long-term operational titles, sta

  25. Slide 25: Game business: Impact of three titles to be distributed during current fiscal year

    4. Appendix Game business: Impact of three titles to be distributed during current fiscal year Expenses associated with the release of the new product will make a small contribution to profit during FY03/2025, with profit contribution expected to start from FY03/2026 onward. FY03/2024 FY03/2025 FY03

  26. Slide 26: Game business: Pipeline of operational and development titles

    4. Appendix Game business: Pipeline of operational and development titles​ Operational titles will undergo additional investment and strengthening of systems to ensure long-term revenue. Diversification and layering through the release of new titles. 2011 – 2023 After 2024 Titles in operation​ Addit

  27. Slide 27: Game business: Pipeline of operational and under development titles

    4. Appendix Game business: Pipeline of operational and under development titles​ Business​ Status Definition​ Number of projects​ Details​ Titles in * ➢ Other company distribution: 4 titles​ Operation​ operation​ 10 ➢ In-house distribution: 6 titles​ Titles under Commercialized development • Wizardr

  28. Slide 28: Status of development of in-house IP: Tokyo Stories

    4. Appendix Status of development of in-house IP: Tokyo Stories SNS originated project. Plans to develop IP by developing games for PCs and consoles on a one-time purchase basis. Highly acclaimed internationally, X has over 100,000 followers​ Own IP Growing IP Monetize IP PC and console games Mercha

  29. Slide 29: Revenue status of titles in operation (by release date)

    4. Appendix Revenue status of titles in operation (by release date)​ Total sales of titles under operation​ Total business profit transition of titles under management​ 2011 2014 2016 2017 2018 2019 2020 2021 2022 2023 2024 2011 2014 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3

  30. Slide 30: Game titles in operation

    4. Appendix Game titles in operation​ Game title Distributor Service start date Chocotto Farm Drecom Co., Ltd. Jan 2011 ONE PIECE Treasure Cruise BANDAI NAMCO Entertainment Inc. May 2014 BOKU & DRAGONS studiorex Co., Ltd.​ * Feb 2015 Derby Stallion: Masters Drecom Co., Ltd. Nov 2016 Everybody's Golf

  31. Slide 31: Fact sheet reference and forward-looking statements

    For trends in consolidated financial results, cost of sales/ SG&A expenses, and sales of game business billing,​ Please see the fact sheet posted on our website. https://drecom.co.jp/ir/factsheet_202503Q1.pdf Among the perceptions, strategies, plans, described in this document, the outlook is not a

Drecom — Q1 FY03/2025 Earnings Presentation on 6ix