Slide 1: Financial Results for the Second Quarter of the Fiscal Year Ending June 30, 2011
GREE, Inc. Financial Results for the Second Quarter of the Fiscal Year Ending on June 30, 2011 February 2, 2011 Copyright © 2004-2011 Copyright GREE,Inc. © 2004-2007 All Rights GREE,Inc. Reserved. All Rights Reserved.
Slide 2: Second Quarter of FY2011 Highlights
Second Quarter of FY2011 Highlights Taking the lead in the smartphone industry as Japan’s largest community service ■ The total number of subscribers was 23.83 million as of the end of December 2010. Continues to offer services Japan’s largest user as Japan’s largest SNS. base ■ The original game bu
Slide 3: Second Quarter of FY2011 Business Performance
Second Quarter of FY2011 Business Performance (Unit: million yen) 2Q of FY2011 1Q of FY2011 QoQ 2Q of FY2010 YoY (Oct-Dec 2010) (Jul-Sep 2010) (%) (Oct-Dec 2009) (%) Net sales 14,302 12,410 +15% 8,180 +75% Operating profit 6,924 6,221 +11% 5,073 +36% Ordinary profit 6,920 6,227 +11% 5,076 +36% Net i
Slide 4: Trend in Net Sales and Operating Profit
Trend in Net Sales and Operating Profit (Unit: million yen) 16,000 14,302 14,000 12,410 12,000 10,940 10,000 9,273 8,180 8,000 6,837 6,924 6,221 6,000 5,270 5,294 5,073 3,939 4,000 2,000 0 1Q 2Q 3Q 4Q 1Q 2Q FY2010 2010年6月期 FY2011 2011年6月期 Net Operating 売上高 sales 営業利益 profit 3 Copyright © 2004-2011 G
Slide 5: Trends in Sales for Each Business
Trends in Sales for Each Business Paid Services Sales Advertisement Sales (Unit: million yen) (Unit: million yen) 14,000 2,500 2,363 2,262 11,938 12,000 1,972 2,000 10,147 1,811 1,751 10,000 8,970 1,536 1,500 8,000 7,462 6,429 6,000 5,300 1,000 4,000 500 2,000 0 0 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q
Slide 6: Second Quarter of FY2011 Operating Expenses
Second Quarter of FY2011 Operating Expenses (Unit: million yen) 2Q of FY2011 1Q of FY2011 2Q of FY2010 QoQ (%) YoY (%) (Oct-Dec 2010) (Jul-Sep 2010) (Oct-Dec 2009) Cost of sales: 1,225 786 +56% 374 +227% Rental Charges 681 386 +76% 157 +334% Personal expenses 375 236 +58% 143 +162% Others 169 162 +4
Slide 7: Second Quarter of FY2011 Balance Sheet
Second Quarter of FY2011 Balance Sheet (JPY MM) 2Q of FY2011 1Q of FY2011 2Q of FY2010 QoQ (%) YoY (%) (Dec 31, 2010) (Sep 30, 2010) (Dec 31, 2009) Current assets 37,074 28,344 +31% 20,085 +85% Cash and deposits 20,957 16,973 +23% 13,113 +60% Trade Receivables 11,655 9,308 +25% 6,013 +94% Others 4,4
Slide 8: Second Quarter of FY2011 Cash Flow Statement
Second Quarter of FY2011 Cash Flow Statement (JPY MM) 2Q of FY2011 1Q of FY2011 2Q of FY2010 (Oct-Dec 2010) (Jul-Sep 2010) (Oct-Dec 2009) Net cash provided by operating activities 4,707 -2,072 4,114 Net cash provided by investment activities -700 8,781 -44 Net cash provided by financing activities -
Slide 9: Registered Subscribers and Page Views
Registered Subscribers and Page Views Registered Subscribers Page Views (mobile) (Unit: million) (Unit: billion) 25.00 60.00 23.83 23.38 22.93 22.46 52.05 21.95 21.25 49.78 20.59 48.77 19.83 50.00 46.52 20.00 19.01 44.22 18.43 17.78 40.83 17.29 40.00 35.36 15.00 28.06 30.00 25.39 25.6124.81 23.70 10
Slide 10: User Demographics
User Demographics By area By gender Hokkaido 9% Male 男性 49% 51% 女性 Female Tohoku Tokyo 7% Metropolitan Koshinetsu/ Area Hokuriku 33% By age Chugoku/ 5% Shikoku Tokai 7% 20% 14% 12% 6% Under 18 18歳未満 18, 19 18～19歳 Kyushu/ 20 to 29 20代 Okinawa Kinki 27% 33% 30 to 39 30代 11% 16% 40 and above 40代以上 * As
Slide 11: Second Quarter of FY2011 Business Report: Original Games and Partner Apps
Second Quarter of FY2011 Business Report Steady growth in original games Started monthly fee plans for partner apps Synphonie Corp. Geisha Tokyo Entertainment Inc. EMIQ Inc. CA MOBILE, LTD. ■ .User’s activity is increased as a ■ Started monthly fee plans for results of successful events partner apps
Slide 12: Business Report: Foundation for Smartphone Services
Second Quarter of FY2011 Business Report Foundation for smartphone services GREE Unlock! Mahjong Dec 2010 Dec 2010 Released GREE beta version for Android Sequentially Released free iOS apps for iPhone ■ Released for Android, after iPhone. ■ Released free apps (“GREE,” GREE’s SNS uses smartphone “Mah
Slide 13: Business Report: Open GREE Platform for Smartphone
Second Quarter of FY2011 Business Report Open “GREE Platform for Smartphone” Sample of participating partners An excerpt from press release issued on December 17, 2010 ■Participation of many partners, including major game companies, feature phone transition partners, smartphone-related venture busin
Slide 14: Second Half of FY2011 Business Strategy
Second Half of FY2011 Business Strategy Copyright © 2004-2011 GREE,Inc. All Rights Reserved.
Slide 15: Second Half of FY2011 Business Strategy
Second Half of FY2011 Business Strategy Continue to strengthen and expand original social games Strengthen development system, in order to release multiple new original social games Promote growth in the GREE Platform business Continue to release popular titles, and progress monetization and promoti
Slide 16: Release social apps for GREE partners for smartphones
Second Half of FY2011 Business Strategy Release social apps for GREE partners for smartphones ■ Offer open “GREE Platform for Smartphone” in Dec, 2010. Begin releasing partner apps starting Jan 18, and start carrier fees Release timings Payment methods Start on Jan 18 WebMoney, credit cards Fi
Slide 17: Strengthen collaboration with overseas platforms
Second Half of FY2011 Business Strategy Strengthen collaboration with overseas platforms, continued after mig33 ■ On Jan 26, 2011, GREE announced business partnership with Tencent, provider of China’s largest online community service － Enhance partner support in overseas activities with sharing spec
Slide 18: GREE's expanding network
Second Half of FY2011 Business Strategy GREE’s expanding network Business partnership Establish local company Shared API, mutual provision of apps One step further in US Internet Business China’s largest online community with approx 600 million users Commencement in Feb 2011! Japan’s largest user ba
Slide 19: Appendix
Appendix Copyright © 2004-2011 GREE,Inc. All Rights Reserved.
Slide 20: SNS + Social Games
SNS + Social Games Subscribers SNS Social games Q&A Diary /Comments Community/ MB Growth in Purchase of Page Views items Advertisement Sales Paid Service Sales GREE 19 Copyright © 2004-2011 GREE,Inc. All Rights Reserved.
Slide 21: In-House Social Games
In-House Social Games “Tsuri-Sta” “Odoriko Clinoppe” User can collect fishing goods, User can develop their original pet introduce their fish prints in their diary, “Clinoppe” by “looking after” it and organize a team, and participate in a “changing its clothes.” fishing competition, etc. “Tanken Dr
Slide 22: Wide Variety of Revenue Sources
Wide Variety of Revenue Sources Advertisement - Original ads (banners/text) - Tie-up ads GREE Mobile screen Advertisement Ad spot Sales Avatar - User can create a virtual self by combining face expressions, clothes, and items freely. Paid Social games Service Sales - Charge-free games linked with SN
Slide 23: Activities for Safety & Security: Recent Tightening
Activities for Safety & Security: Recent Tightening From Oct. 2010, we have implemented more strict measures for protecting and developing young people. • When improper contents are detected through system and visual checks, we take some measures, including deletion, warning, and Website suspensio
Slide 24: GREE Patrol
Activities for Safety & Security: System for Site Monitoring From October 2010, GREE strengthen measures to protect and develop young people GREE patrol system running 24 hours a day, 365 days a year EMA (Contents Evaluation and Monitoring Association) • With cooperation with specialty company, GRE
Slide 25: Activities for Safety & Security: Development of the Usage Environment
Activities for Safety & Security: Development of the Usage Environment Restrictions on functions for each age Restrictions on email transmission from a user at the age of over 18 years to a user at the age of less than 18 years The results of search by a user at the age of over 18 years do not i
Slide 26: Forecast and information disclaimer
■ 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. We would appreciate your understanding. ■ When producing this document, we were careful not t