Gree Holdings.inc. · TSE:3632
Gree Holdings.inc — FY2017 Q3 Earnings Presentation
35 slides from Gree Holdings.inc's earnings presentation, Apr 27, 2017
Slide 1: FY2017 Third Quarter Financial Results
GREE, Inc. FY2017 Third Quarter Financial Results April 27, 2017 Copyright © GREE, Inc. All Rights Reserved.
Slide 2: Executive Summary
Executive Summary Financial QoQ growth in both sales and income, with net sales of Results ¥15.9 billion and operating income of ¥1.5 billion Overview ⁃ Sales rose on contribution from domestic native game business Two titles released in 3Q, made progress in developing titles ahead of 4Q release
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: FY17 3Q Financial Results Overview
1. Financial Results Overview (Consolidated) FY17 3Q Financial Results Overview Net sales ¥15.9bn, operating income ¥1.5bn Billions of yen FY17 3Q FY17 2Q FY16 3Q QoQ YoY Net sales 15.88 0.53 -0.93 15.35 16.81 EBITDA 2.21 0.14 -1.77 2.07 3.99 Operating income 1.55 0.05 -2.09 1.50 3.64 Ordinary incom
Slide 6: Net Sales, EBITDA, and Operating Income
1. Financial Results Overview (Consolidated) Net Sales, EBITDA, and Operating Income Sales continued to rise, increasing by ¥500 million QoQ Billions of yen 25.0 25.0% 21.6% 16.8 15.6 17.1% 15.9 14.9 15.3 14.2% 12.5 12.5% 9.8% 9.7% 4.0 3.6 2.9 2.7 2.5 2.2 2.1 2.2 1.5 1.5 0.0 0.0% 3Q 4Q 1Q 2Q 3Q FY17
Slide 7: Operating Income Analysis
1. Financial Results Overview (Consolidated) Operating Income Analysis Operating income up ¥50 million due to sales growth Billions of yen ¥50mn increase ＋0.53 -0.24 -0.24 1.50 1.55 Operating Increase Increase Increase Operating Income in net in variable in fixed Income sales costs costs FY17 2Q FY1
Slide 8: FY17 3Q Cost Structure
1. Financial Results Overview (Consolidated) FY17 3Q Cost Structure Total costs increased ¥0.5 billion QoQ to ¥14.3 billion Billions of yen FY17 FY17 FY16 Factors in change（QoQ） 3Q QoQ YoY 2Q 3Q Decrease due to efficient reduction Advertising 0.88 -0.18 -0.21 (ratio to net sales 2Q 6.9% → 3Q 5.5%) 1
Slide 9: FY17 Earnings Forecast
1. Financial Results Overview (Consolidated) FY17 Earnings Forecast Net sales of ¥62.0bn, operating income of ¥7.0bn Billions of yen 1Q 2Q 3Q 4Q FY17 Actual Actual Actual Forecast Forecast Net sales 14.9 15.3 15.9 15.9 62.0 Operating income 2.5 1.5 1.5 1.4 7.0 Ordinary income 2.6 3.8 0.9 1.4 8.6 Net
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 Achieve - Increased domestic native game coin consumption, Overall turnaround in game business targeting continued growth - Steady progress: released two first -party IP titles, and Japan New release blitz one third-party
Slide 12: Development Pipeline
2. Operational Overview: Game Business, Native Games (domestic market) Development Pipeline Ten titles in development FY17 FY18 or later Already To be released released in 4Q First-party IP 3 1 0 （1） （1） （0） Third- party IP 1 （1） 3 （4） 6 （3） Notes: • All titles in pipeline have received approval for
Slide 13: Progress Made: Coin Consumption
2. Operational Overview: Game Business, Native Games (domestic market) Progress Made Coin Consumption Topics Billions of coins Impact of release blitz 60 6 5.4 - Many new titles have entered top sales ranks 4.6 4.4 - Favorable user reviews 4.1 3.7 Developed third-party IP title for overseas mark
Slide 14: Progress Made: Impact of release blitz
2. Operational Overview: Game Business, Native Games (domestic market) Progress Made Impact of release blitz Ranking User review scores Google Play App Store 46 th 4.5 4.7 Rara-MAGI 45 th 4.5 4.6 A Farewell to Arms Another Eden: 6 th 4.7 4.8 The Cat Who Goes Beyond Time ※ Rankings indicate highest s
Slide 15: Rara-MAGI
2. Operational Overview: Game Business, Native Games (domestic market) Rara-MAGI Off to a strong start after January 25 launch, first Rara-MAGI TV commercials aired on April 27 Over 1.5mn DLs TV commercials aired - Schoolgirl-themed RPG featuring music, magic, and an all-star cast of voice actors cr
Slide 16: A Farewell to Arms
2. Operational Overview: Game Business, Native Games (domestic market) A Farewell to Arms Off to a strong start after release on March 30 Over a million DLs in first 2 weeks In top 50 sales ranking 45th 100位 Google Play top sales rankings Period: April 1-18 - Players feel the thrill of trouncing ene
Slide 17: Another Eden: The Cat Who Goes Beyond Time
2. Operational Overview: Game Business, Native Games (domestic market) Another Eden: The Cat Who Goes Beyond Time Off to a strong start after April 12 launch Released April 12 In top 10 sales ranking 6th 50位 iOS top sales rankings Period: April 12-26 - Single play RPG from an all-star development st
Slide 18: AKB48 Stage Fighter Battle Festival
2. Operational Overview: Game Business, Native Games (domestic market) In Development AKB48 Stage Fighter 2 Battle Festival New version of AKB48 Stage Fighter (distributed by GREE), pre-registration underway - Team up with fans of your favorite AKB48 member for real time battles of up to 16 versus 1
Slide 19: SINoALICE
2. Operational Overview: Game Business, Native Games (domestic market) In Development SINoALICE All-new smartphone game by Creative Director Taro Yoko jointly developed by GREE and SquareEnix, pre-registration underway - Original story set in a unique and detailed world Note: Screenshot is of develo
Slide 20: Senki Zesshou SYMPHOGEAR XD Unlimited
2. Operational Overview: Game Business, Native Games (domestic market) In Development Senki Zesshou SYMPHOGEAR XD Unlimited Joint development by Bushiroad and PokeLabo, pre-registration underway - Symphonic battle RPG that faithfully re-creates the world of anime series Senki Zesshou SYMPHOGEAR Note
Slide 21: Is It Wrong to Try to Pick Up Girls in a Dungeon: Memoria Freeze
2. Operational Overview: Game Business, Native Games (domestic market) In Development Is It Wrong to Try to Pick Up Girls in a Dungeon: Memoria Freeze Release scheduled in summer of 2017, pre-registration underway - Based on a very popular TV anime series which was based on an original series of lig
Slide 22: Library Cross Infinite
2. Operational Overview: Game Business, Native Games (domestic market) In Development Library Cross Infinite Joint development by Idea Factory and Wright Flyer Studios, scheduled release in 2017 - All-new bittersweet romance puzzle RPG featuring an all-star cast of popular characters from Otomate (a
Slide 23: VR Business
2. Operational Overview: Game Business, Native Games (domestic market) VR Business Progress in investment, development and market promotion Joint development with SQUARE ENIX Japan VR Summit Development starting in spring of 2017 The largest VR conference in Japan • Launch on Steam and VivePort sche
Slide 24: Progress Made (overseas market)
2. Operational Overview: Game Business, Native Games (overseas market) Progress Made Coin Consumption Topics Billions of coins 440 Integrating 3 different game engines - Scheduled for release in 4Q 3.2 2.7 2.5 2.1 220 1.7 0 3Q 4Q 1Q 2Q 3Q FY16 FY17 Note: Screenshot is of development version 23 Cop
Slide 25: Progress Made: Game Operation Business
2. Operational Overview: Game Business, Game Operation Business Progress Made Coin Consumption Topics Billions of coins 10.0 Began operation of major third-party 100 10 title in February Forecast FY17 coin consumption of 6.9 10bn 50 5 4.5 2.2 0 1Q 1H 2Q累計 3Q total 3Q累計 Full-year 通期見込 forecast GR
Slide 26: Focus on Video
2. Operational Overview: Advertising and Media Businesses Focus on Video Focus on advertising and media businesses that use video as a key component Media businesses Video ad technology Video content production 25 Copyright © GREE, Inc. All Rights Reserved.
Slide 27: Progress Made: Advertising and Media Businesses
2. Operational Overview: Advertising and Media Businesses Progress Made Sales growth at 3Minute Growth in media page views Record high sales in March Roughly 20% growth in monthly page views 3.4x 16/3月 17/3月 １月 2月 3月 • Member of GREE Group since February • Growth in page views at websites including
Slide 28: 3. Appendix
Contents 1. Financial Results Overview 2. Operational Overview 3. Appendix Copyright © GREE, Inc. All Rights Reserved.
Slide 29: Coin Consumption (1)
3. Appendix Coin Consumption (1) Overall coin consumption Web game coin consumption Billions of coins Billions of coins 250 14.7 25 15 150 22.2 13.8 20.1 12.7 19.0 11.9 4.2 18.5 18.4 5.8 10.9 3.7 3.3 5.6 2.9 2.5 5.3 4.9 4.6 125 12.5 10.4 8.4 75 7.5 10.1 9.4 8.9 8.8 8.2 7.4 6.9 6.3 7.6 6.7 7.5 6.4 6.
Slide 30: Coin Consumption (2)
3. Appendix Coin Consumption (2) Japan Native Games Overseas Native Games Billions of coins Billions of coins 60 6 40 4 5.4 3.2 4.6 4.4 4.1 2.7 3.7 2.5 2.1 30 3 20 2 1.7 0 0 3Q 4Q 1Q 2Q 3Q 3Q 4Q 1Q 2Q 3Q FY16 FY17 FY16 FY17 Coin consumption declined temporarily owing to the business Note: Classified
Slide 31: Coin Consumption (3)
3. Appendix Coin Consumption (3) Overseas Japan Millions of U.S. dollars Billions of coins 40 200 20 19.1 17.5 17.3 16.0 16.3 28 9.6 25 23 8.7 9.3 8.5 9.2 19 20 100 10 16 9.5 8.7 8.0 7.5 7.0 0 0 3Q 4Q 1Q 2Q 3Q 3Q 4Q 1Q 2Q 3Q FY16 FY17 FY16 FY17 Notes: Notes: ■ Third-party ■ First-party/Co-developed
Slide 32: 3Q FY17 Cost Structure
3. Appendix 3Q FY17 Cost Structure Millions of yen FY17 FY17 FY16 3Q 2Q 3Q QoQ YoY Rental charges 783 21 64 762 720 Labor costs 2,120 1 -97 2,119 2,217 Others 2,879 747 1,605 2,132 1,274 Cost of sales 5,782 769 1,572 5,013 4,210 Advertising 882 -183 -206 1,065 1,088 Commission fees 3,123 43 -188 3,0
Slide 33: 3Q FY17 Balance Sheet
3. Appendix 3Q FY17 Balance Sheet Billions of yen FY17 FY17 FY16 3Q QoQ YoY 2Q 3Q Current assets 98.87 -2.26 10.12 101.13 88.75 Fixed assets 28.60 3.33 6.54 25.27 22.06 Total assets 127.47 1.07 16.66 126.41 110.81 Current liabilities 13.87 0.08 3.58 13.79 10.29 Fixed liabilities 1.44 -0.01 0.81 1.45
Slide 34: Breakdown of Group Headcount
3. Appendix Breakdown of Group Headcount Number of employees Headcount at Group companies end-3Q Japan Game Business - 877 Native Game Business Pokelabo, Wright Flyer Studios (407) Web Game / Operation Business funplex (260) Shared game depts. ExPlay (210) Includes GREE International Entertainment,
Slide 35: ■ This document includes some forecasts, which are based on currently available information. Actual
■ This document includes some forecasts, which are based on currently available information. Actual performance may differ due to various factors. ■ When p roduc in g th is docu ment , we were ca refu l t o avoid er rors or omiss ion s, b ut th e accuracy and completeness of the provided informat io