Slide 1: FY2013 First Quarter Financial Results
GREE, Inc. FY2013 First Quarter Financial Results November 14, 2012 Copyright © GREE, Inc. All Rights Reserved.
Slide 2: Executive Summary
Executive Summary Net sales declined QoQ in 1Q FY2013, but monthly sales entered a gradual recovery trend after bottoming in July The pace of game releases to the domestic market has increased. Games based on IP have recently shown striking growth We have taken steps to accelerate business dev
Slide 3: FY2013 First Quarter Business Results
FY2013 First Quarter Business Results 2 Copyright © GREE, Inc. All Rights Reserved.
Slide 4: First Quarter Highlights
FY2013 First Quarter Highlights Gradual recovery in monthly sales; progress developing global operations Monthly sales entered a gradual recovery trend starting in August after bottoming in July Enhanced lineup of social games Added new popular IP to our portfolio; strengthened game developmen
Slide 5: First Quarter Financial Results (Consolidated)
FY2013 First Quarter Financial Results (Consolidated) Millions of yen QoQ 1Q FY2013 ※ 4Q FY2012 1Q FY2012 YoY change change Net sales 37,935 40,080 -5% 30,432 +25% EBITDA* 16,744 19,634 -15% 16,961 -1% Operating profit 15,750 18,996 -17% 16,646 -5% Ordinary Profit 15,250 18,439 -17% 16,528 -8% Net p
Slide 6: Net Sales & Operating Profit (Consolidated)
Net Sales & Operating Profit (Consolidated) Millions of yen 50,000 46,189 45,000 41,529 40,080 40,000 37,935 35,000 30,432 30,000 24,963 22,904 24,549 25,000 22,535 19,634 16,961 16,744 20,000 18,996 16,646 15,750 15,000 10,000 5,000 0 1Q 2Q 3Q 4Q 1Q FY2012 2012年6月期 FY2013 2013年6月期 売上高 Net sales EBI
Slide 7: 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 40,000 38,290 36,444 2,928 34,601 3,000 35,000 30,000 2,500 27,503 25,000 2,000 20,000 1,500 15,000 1,000 10,000 500 5,000 0 0 1Q 2Q 3Q 4Q
Slide 8: First Quarter Operating Expenses (Consolidated)
FY2013 First Quarter Operating Expenses (Consolidated) Millions of yen QoQ 1Q FY2013 4Q FY2012 1Q FY2012 YoY change change Cost of sales: 4,690 4,571 +3% 2,104 +123% Rental charges 992 1,606 -38% 999 -1% Labor costs 1,825 1,709 +7% 648 +181% Others 1,871 1,254 +49% 455 +311% SG&A: 17,494 16,512 +6%
Slide 9: First Quarter Balance Sheet (Consolidated)
FY2013 First Quarter Balance Sheet (Consolidated) Millions of yen QoQ 1Q FY2013 4Q FY2012 1Q FY2012 YoY change change Current assets 86,116 122,287 -30% 55,562 +55% Cash and cash 37,679 72,759 -48% 20,914 +80% equivalents Receivables 26,100 28,238 -8% 25,754 +1% Others 22,336 21,288 +5% 8,894 +151%
Slide 10: First Quarter Business Results: Expanded social game lineup
FY2013 First Quarter Business Results Expanded and improved social game lineup Added new IP-based games Added new battle games © Tite Kubo/Shueisha, TV TOKYO, dentsu, Pierrot © GREE, Inc. Copyright (Japan only) Introduced innovative game designs Expanded and improved lineup with IP-based games and
Slide 11: First Quarter Business Results: Strong IP and development capabilities
FY2013 First Quarter Business Results Secured strong IP; strengthened game development and operation capabilities Social game version of Lineage Established Canada studio Vancouver Amsterdam London Seoul Beijing Tokyo San Francisco Osaka Dubai Singapore Sao Paulo Co-developing mobile game based on
Slide 12: First Quarter Business Results: Broadened business domain
FY2013 First Quarter Business Results Broadened business domain, strengthened business for multilayered business structure Strengthened ad business by forming Launched merchandising business partnership with major French ad company We established merchandising subsidiary Major French ad company
Slide 13: Business Strategy
FY2013 Business Strategy Copyright © GREE, Inc. All Rights Reserved.
Slide 14: Business Strategy
FY2013 Business Strategy We aim to become the top company in the global smartphone social game market by strengthening the user base of our platform while expanding our social game lineup. Accelerate implementation of strategy to become top global social game company Browser Native 1 2 4 Accelerate
Slide 15: (1) Japan: Using strong IP
(1) Japan: Using strong IP Stably trending IP games and major IP-based title release schedule Major IP-based title release schedule METAL GEAR SOLID SOCIAL OPS（KONAMI） ©Konami Digital Entertainment / GREE World Ends With You LIVE Remix (SQUARE ENIX） ©SQUARE ENIX CO., LTD. / GREE, Inc. FINAL FANTASY×
Slide 16: (1) Japan: Using strong IP
(1) Japan: Using strong IP Plan to launch multiple new games based on IP METAL GEAR SOLID SOCIAL OPS The World Ends With You LIVE Remix FINAL FANTASY×GREE (tentative title) （KONAMI） (SQUARE ENIX） (SQUARE ENIX) ©Konami Digital Entertainment / GREE ©SQUARE ENIX CO., LTD. / GREE, Inc. ©SQUARE ENIX CO.,
Slide 17: (2) Japan: Enhancing our lineup
(2) Japan: Enhancing our lineup Position in smartphone native app market 0 1 2 3 4 5 6 7 8 9 10 GREE, Inc＋Pokelabo, Inc. 9 2位 2nd place D2C 3 3位 3rd place Applibot 2 3位 3rd place COLOPL 2 3位 3rd place NamcoBandai Games 2 3位 3rd place SEGA CORPORATION 2 Source: App Store (Japan) Number of top 35 over
Slide 18: (3) Japan: Expanding user reach
(3) Japan: Expanding user reach Business partnership with Yahoo! JAPAN will allow us to reach more users GREE Platform on smartphones Yahoo! JAPAN on smartphones Provision of social games User traffic Wallet Point Alliance with Yahoo! JAPAN will enable us to expand our user reach on smartphones in
Slide 19: (4) Global: Accelerating launch of simulation and battle games
(4) Global: Accelerating launch of simulation and battle games Stepping up game releases ahead of holiday season in North America and Europe Preparing numerous other titles October 2012 – Holiday season Global launch of Monster Quest and MLB: Full Deck in October Plan to increase game offering a
Slide 20: (4) Global: Accelerating launch of simulation and battle games
(4) Global: Accelerating launch of simulation and battle games Full-scale entry into South Korean market, launch of card battle and simulation games Release of popular Japanese card-type game Release of hit U.S. simulation game The Clan Battle of Fate became the top We plan to release Modern War
Slide 21: (5) Global: Expanding user reach
(5) Global: Expanding user reach Like our partnership with SK Telecom of South Korea, our business partnership with SingTel will expand our user reach in the Asia Pacific region GREE Platform on Promotions targeting smartphones SingTel users Ongoing launches of new social games Exclusive promotions
Slide 22: Japan Social Game Association
Japan Social Game Association JASGA established November 8 as a general incorporated association • Japanese name: Ippanshadanhoujin Social Game Kyoukai Name • English name: Japan Social Game Association • Acronym: JASGA • Six social game platform companies • NHN Japan Corporation • GREE, Inc. • Cybe
Slide 23: Japan Social Game Association
Japan Social Game Association JASGA was established on November 8 JASGA will conduct activities with the goal of promoting the development of a social gaming environment that people can use safely, contributing to society and culture through social games, and promoting economic development by suppor
Slide 24: Appendix
Appendix 23 Copyright © GREE, Inc. All Rights Reserved.
Slide 25: Social networking service + Social Games
Social networking service + Social Games Users Social networking Social games service Diary My Apps / Comments Community / MB Growth in Purchase of Page Views items 広告メディア収入 有料課金収入 Advertisement Sales Paid Service Sales GREE 24 Copyright © GREE, Inc. All Rights Reserved.
Slide 26: 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,
Slide 27: 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
Slide 28: ■ 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, etc. ■ When producing this document, we were careful not to include errors or omissions, but the a