Gree Holdings.inc. · TSE:3632

Gree Holdings.inc — Q2 FY2013 Earnings Presentation

23 slides from Gree Holdings.inc's earnings presentation, Feb 12, 2013

  1. Slide 1: FY2013 Second Quarter Financial Results

    GREE, Inc. FY2013 Second Quarter Financial Results February 12, 2013 Copyright © GREE, Inc. All Rights Reserved.

  2. Slide 2: Executive Summary

    Executive Summary  In 2Q FY2013, consolidated sales rose QoQ for the Second first time in two quarters Quarter ⁃ Japan: Coin consumption increased QoQ Highlights ⁃ Global: Coin consumption overseas grew on monthly basis from October Revised  Downward revision of full-year forecast FY2013 ⁃ Plannin

  3. Slide 3: FY2013 Second Quarter Financial Results (Consolidated)

    FY2013 Second Quarter Financial Results (Consolidated) Millions of yen QoQ YoY 2Q FY2013 1Q FY2013 2Q FY2012 change change ※ Net sales 39,407 37,935 +4% 41,529 -5% EBITDA1 15,763 16,744 -6% 22,904 -31% Operating profit 14,258 15,750 -9% 22,535 -37% Ordinary profit2 16,330 15,250 +7% 22,461 -27% Net

  4. Slide 4: Net Sales, EBITDA and Operating Profit (Consolidated)

    Net Sales, EBITDA and Operating Profit (Consolidated) Millions of yen （単位：百万円） 50,000 46,189 45,000 41,529 40,080 39,407 40,000 37,935 35,000 30,432 30,000 24,963 22,904 24,549 25,000 22,535 19,634 16,961 18,996 20,000 16,744 15,763 16,646 15,750 14,258 15,000 10,000 5,000 0 1Q 2Q 3Q 4Q 1Q 2Q 2012年6

  5. Slide 5: Sales by Business (Consolidated)

    Sales by Business (Consolidated) Paid Services Sales Advertisement Sales Millions of yen Millions of yen 50,000 4,000 3,636 45,000 42,882 3,500 3,306 3,334 3,238 38,290 3,129 40,000 36,444 36,278 2,928 34,601 3,000 35,000 2,500 30,000 27,503 25,000 2,000 20,000 1,500 15,000 1,000 10,000 5,000 500 0

  6. Slide 6: FY2013 Second Quarter Operating Expenses (Consolidated)

    FY2013 Second Quarter Operating Expenses (Consolidated) Millions of yen QoQ YoY 2Q FY2013 1Q FY2013 2Q FY2012 change change Cost of sales 6,344 4,690 +35% 2,745 +131% Rental charges 1,091 992 +10% 1,257 -13% Labor costs 3,119 1,825 +71% 951 +228% Others 2,134 1,871 +14% 536 +298% SG&A 18,804 17,494

  7. Slide 7: FY2013 Second Quarter Balance Sheet (Consolidated)

    FY2013 Second Quarter Balance Sheet (Consolidated) Millions of yen As of As of As of QoQ YoY Dec. 31, 2012 Sep. 30, 2012 Dec. 31, 2011 (2Q FY2013) (1Q FY2013) change (2Q FY2012) change Current assets Cash and cash equivalents Receivables Others Fixed assets Total assets Current liabilities Total lia

  8. Slide 8: Revised FY2013 Forecast

    Revised FY2013 Forecast Millions of yen Revised Forecast Previous Forecast Difference (1) (2) (1)/(2) 160,000 195,000 -17.1% Net sales to 170,000 to 205,000 to -17.9% 50,000 74,000 -28.6% Operating profit to 60,000 to 84,000 to -32.4% 50,000 74,000 -28.6% Ordinary profit to 60,000 to 84,000 to -32.4

  9. Slide 9: Initiatives in Japan

    Initiatives in Japan  Release new browser game titles (including postponed Browser launches) in 2H to drive growth Social games  Enhance our lineup by creating titles in new genres in Native addition to card battle games  Expand user reach and grow platform through business Platform partnership w

  10. Slide 10: Japan: Coin consumption

    Japan: Coin consumption Coin consumption rose QoQ in Japan Coin consumption in Japan Coins spent (hundreds of millions)  GREE Group coin consumption rose 600 QoQ in Japan (grew also excluding contribution from Pokelabo)  Coin consumption in several games 400 launched prior to 1Q, such as Driland a

  11. Slide 11: Japan: Release schedule (browser games)

    Japan: Release schedule (browser games) Release of multiple new titles in 2H FY2013 release schedule for major titles １Q ２Q 3Q onward BLEACH Soul Masters FINAL FANTASY ARTNIKS The IDOLM@STER MILLION LIVE! © Tite Kubo/Shueisha, TV TOKYO, dentsu, Pierrot (SQUARE ENIX) (NAMCO BANDAI Games) © GREE, Inc.

  12. Slide 12: Japan: Market growth (native games)

    Japan: Market growth (native games) Coin consumption increasing steadily in growing native games market Coin consumption in native games (Japan) 1 = July 2012 level 2.50 2.00 ×1.96 1.50 1.00 0.50 2012年7月 July 2012 2012年8月 Aug. 2012 2012年9月 Sep. 2012 2012年10月 Oct. 2012 2012年11月 Nov. 2012 2012年12月 Dec

  13. Slide 13: Japan: Developing new genres (native games)

    Japan: Developing new genres (native games) Apply strategy of genre-driven high growth to native games Creating hit titles in new genres in addition to card battle games Growth achieved by adding new genres Launching new-genre titles • Launch MMO* and FPS** titles GREE’s paid services sales • Apply

  14. Slide 14: Japan: Expanding our business reach

    Japan: Expanding our business reach Broadening our business domains and strengthening operations Main initiatives Social  Expansion of social media business media ⁃ Released social viewing and photo sharing apps Advertis  Strengthening of smartphone advertising H1 ing ⁃ The GREE Ads Reward incenti

  15. Slide 15: Global initiatives

    Global initiatives  Aim to create hit titles using efficient marketing that Marketing strikes a balance between LTV* and CPI** North America & Europe Social  Improve sales rankings using accumulated knowledge games and expertise  Make full-scale entry into market with release of card South Korea

  16. Slide 16: Global: Coin consumption

    Global: Coin consumption Monthly trends in coin consumption overseas show growth Global (ex-Japan) coin consumption Millions of US dollars  Coin consumption overseas have been 10 growing on a monthly basis since October  We have expanded our lineup by launching GREE in-house and co-branded games,

  17. Slide 17: U.S./Europe: Marketing strategy

    U.S./Europe: Marketing strategy Creating hit titles with marketing that strikes a balance between LTV* and CPI** Example: Project A Net LTV CPI 1 = Nov. 2012 level 1 = Nov. 2012 level 1.8 1.6 Lower CPI： 1.6 • Cost-efficient promotion 1.4 • Lower per-user promotion costs 1.4 1.2 1.2 ×1.6 1.0 1.0 0.8

  18. Slide 18: U.S./Europe: Boosting sales rankings

    U.S./Europe: Boosting sales rankings Improving rankings by applying accumulated knowledge and expertise Ranking of Modern War Ranking of Reign of Dragons** App Store (U.S.) Top Grossing Ranking App Store (U.S.) Top Grossing Ranking #1 #1 #100 #100 2013/1/10 2013/1/17 2013/1/24 2013/1/31 2013/1/3 201

  19. Slide 19: S. Korea: Began full-scale market entry

    S. Korea: Began full-scale market entry Began full-scale entry to S. Korea market with launch of card battle and simulation games Released hit U.S. simulation game Launching popular social game from Japan  Launched Korean version of Modern War,  Plan to launch The Clan Battle of Fate and a top-ran

  20. Slide 20: Appendix

    Appendix Copyright © GREE, Inc. All Rights Reserved.

  21. Slide 21: Improving Safety & Security

    Improving Safety & Security GREE patrol system runs 24 hours a day, 365 days a year EMA (Content Evaluation and Monitoring ⁃ A 24 hour, 365 days per year patrol service begun in November 2006. Association) ⁃ GREE Patrol Centers were established in the Tokyo metropolitan area, Hokkaido, and Okinawa,

  22. Slide 22: Improving Safety & Security

    Improving Safety & Security Educational Activities On- and Off-site Educational activities on-site  From February 2009, GREE joined the “Motto Good Net” initiative of the Safe Net-Making Promotion Conference, and maintains an official “Motto Good Net” account in GREE.  From July 2011, links were a

  23. Slide 23: ■ This document includes some forecasts, which are based on currently available information. The

    ■ This document includes some forecasts, which are based on currently available information. The authenticity of the information is not guaranteed. Actual performance may differ due to various factors. ■ When producing this document, we were careful not to include errors or omissions, but the authen

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