Gree Holdings.inc. · TSE:3632

Gree Holdings.inc — Q1 FYE June 2011 Earnings Presentation

21 slides from Gree Holdings.inc's earnings presentation, Nov 1, 2010

  1. Slide 1: Financial Results for the First Quarter of the Fiscal Year Ended on June 30, 2011

    GREE, Inc. Financial Results for the First Quarter of the Fiscal Year Ended on June 30, 2011 November 1, 2010 Copyright © 2004-2010 Copyright GREE, © 2004-2007 Inc. All Rights GREE,Inc. Reserved. All Rights Reserved.

  2. Slide 2: First Quarter FYE 6/2011 Highlights

    First Quarter FYE 6/2011 Highlights Japan’s No.1 SNS ■ Became Japan’s No.1 SNS with 22.46 million Achieved members as of September 2010 Japan’s largest ■ Acquired new members over a wide age range. With user base members over the age of 30 accounting for 46% as of September 2010 ■ Launched “Pirate K

  3. Slide 3: First Quarter FYE 6/2011 Income Statement

    First Quarter FYE 6/2011 Income Statement (JPY MM) 1Q FYE 6/11 4Q FYE 6/11 QoQ 1Q FYE 6/10 YoY (Jul-Sep 11) (Apr-Jun 11) (%) (Jul-Sep 10) (%) Net sales 12,410 10,940 +13% 6,837 +82% Operating profit 6,221 5,294 +18% 3,939 +58% Ordinary profit 6,227 5,303 +17% 3,942 +58% Net income 3,695 3,113 +19% 2

  4. Slide 4: Net Sales and Operating Profit

    Net Sales and Operating Profit (JPY MM) 14,000 12,410 12,000 10,940 10,000 9,273 8,180 8,000 6,837 6,221 6,000 5,270 5,294 5,073 3,939 4,000 2,000 0 1Q 2Q 3Q 4Q 1Q FYE 6/2010 FYE 6/2011 Net sales Operating profit 3 Copyright © 2004-2010 GREE, Inc. All Rights Reserved.

  5. Slide 5: Sales Breakdown

    Sales Breakdown Paid Services Sales Advertisement Sales (JPY MM) (JPY MM) 12,000 2,500 2,262 10,147 10,000 1,972 8,970 2,000 1,811 1,751 8,000 7,462 1,536 1,500 6,429 6,000 5,300 1,000 4,000 500 2,000 0 0 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q FYE 6/2010 FYE 6/2011 FYE 6/2010 FYE 6/2011 ■ “Mon-Pla” and “Pira

  6. Slide 6: First Quarter FYE 6/2011 Operating Expenses

    First Quarter FYE 6/2011 Operating Expenses (JPY MM) 1Q FYE 6/11 4Q FYE 6/11 QoQ 1Q FYE 6/10 YoY (Jul-Sep 11) (Apr-Jun 11) (%) (Jul-Sep 10) (%) Cost of sales: 786 1,046 △25% 634 24% Rental Charges 386 717 △46% 454 △15% Labor costs 236 203 16% 120 96% Others 162 125 29% 59 174% SG&A: 5,402 4,598 17%

  7. Slide 7: First Quarter FYE 6/2011 Balance Sheet

    First Quarter FYE 6/2011 Balance Sheet (JPY MM) 1Q FYE 6/11 4Q FYE 6/11 QoQ 1Q FYE 6/10 YoY (Jul-Sep 11) (Apr-Jun 11) (%) (Jul-Sep 10) (%) Current assets 28,344 30,903 8% 14,872 91% Cash and cash 16,973 21,354 21% 9,046 88% equivalents Receivables 9,308 7,682 21% 4,950 88% Others 2,063 1,866 11% 875

  8. Slide 8: First Quarter FYE 6/2011 Cash Flow Statement

    First Quarter FYE 6/2011 Cash Flow Statement (JPY MM) 1Q FYE 6/11 4Q FYE 6/11 1Q FYE 6/10 (Jul-Sep 11) (Apr-Jun 11) (Jul-Sep 10) Net cash provided by operating activities △2,072 5,735 △1,317 Net cash provided by investment activities 8,781 △234 △120 Net cash provided by financing activities △1,090 1

  9. Slide 9: Registered Members and Page Views

    Registered Members and Page Views Registered Members Page Views (Unit MM) (Unit Bn) 25.00 50.00 46.52 22.46 mobile 44.22 21.95 45.00 21.25 40.83 20.59 PC 19.83 20.00 19.01 40.00 18.43 35.36 17.78 17.29 16.73 35.00 16.20 15.70 15.12 30.00 28.06 15.00 25.4226.0824.7125.39 25.6124.81 23.70 25.00 10.00

  10. Slide 10: Member Demographics

    Member Demographics By area By gender Hokkaido 9% 男性 Tohoku 48% 52% 女性 7% Tokyo Metropolitan Koshinetsu/ Area Hokuriku By age 33% 5% Chugoku/ Shikoku Tokai 19% 14% 7% 8% 11% Under 18 18,19 Kyushu/ 27% 20 to 29 Okinawa Kinki 33% 30 to 39 11% 16% 40 and above Note: as of September 30, 2010 9 Copyright

  11. Slide 11: Business Report: Increased paid service sales

    First Quarter FYE 6/2011 Business Report Increased paid service sales August-2010 September-2010 Launched Started “Pirate Kingdom Columbus” “Monthly fee plan for Hacöniwa” ( Pirate battle game ) （NTT DoCoMo） ■ Accelerated growth in the game ■ Increased paid services sales with market by diversifying

  12. Slide 12: Business Report: Expanded the GREE Platform

    First Quarter FYE 6/2011 Business Report Expanded the “GREE Platform” ■ Opened the “GREE Platform” to all developers  Simplified the procedures for submission of social applications on the “GREE mobile version”  Provides open systems to developers for launching social applications Cave Co., Ltd. ”

  13. Slide 13: Summary of GREE Platform

    First Quarter FYE 6/2011 Business Report Summary of “GREE Platform” Unique user growth rate on the “GREE Coin usage growth rate ( daily average ) Platform”（daily average） （Index （June 2010 = 1）） （Index （June 2010 = 1）） 12 4.5 4 10 3.5 8 3 2.5 6 2 4 1.5 1 2 0.5 0 0 June July August September October

  14. Slide 14: FYE 6/2011 Business Strategy

    FYE 6/2011 Business Strategy Expand first-party social games portfolio Plans to launch more first-party social games Accelerate the growth of the “GREE Platform” Will launch several popular third-party titles And a wide a variety of non-game applications Strengthen services on multiple devices D

  15. Slide 15: Appendix

    Appendix Copyright © 2004-2010 GREE, Inc. All Rights Reserved.

  16. Slide 16: SNS + Social Games

    SNS + Social Games Members SNS Social games Q&A Diary /Comments Community/ MB Growth in Purchase of Page Views items Advertisement Sales Paid Service Sales GREE 15 Copyright © 2004-2010 GREE, Inc. All Rights Reserved.

  17. Slide 17: In-House Social Games

    In-House Social Games “Tsuri-Sta” “Odoriko Clinoppe” A fishing game where members enjoy A virtual pet game that allows members to collecting “fishing” gear and participating “raise” their own original “Clinoppe” in team events with other members “Tanken Drilland” “Hacöniwa” A gardening game where me

  18. Slide 18: Wide Variety of Revenue

    Wide Variety of Revenue Advertisement - Advertisement (Banner/Text) - Tie up GREE Mobile screen Advertisement Ad Spot Sales Avatar - Sales of avatar clothing and cosmetic changes Paid Social games Service Sales - A wide variety of micro-transaction based social games 17 Copyright © 2004-2010 GREE, I

  19. Slide 19: Safety & Security

    Safety & Security ① 24-hour-a-day, 365-day-a-year GREE Patrol System EMA (Contents Evaluation and Monitoring Association)  Started a 24hour-a day, 365-day-a-year third-party Patrol service in November 2006 Certificated as a  Established a GREE Patrol center within the main headquarters “Safe Conte

  20. Slide 20: Safety & Security: the latest projects

    Safety & Security: the latest projects ①Strengthen the site patrol：October 2010  Strengthened surveillance to reduce risk of abuse by strangers  Raised the penalty for in-service e-mail which includes personal information  Improved search systems for inappropriate words and content ② Strengthen u

  21. Slide 21: This material is presented solely for purposes of illustration and discussion and may include

    This material is presented solely for purposes of illustration and discussion and may include information that is based, in part of in full, on hypothetical assumptions. Copyright © 2004-2010 GREE, Inc. All Rights Reserved.

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