Gree Holdings.inc. · TSE:3632
Gree Holdings.inc — Q1 FY2018 Earnings Presentation
31 slides from Gree Holdings.inc's earnings presentation, Oct 27, 2017
Slide 1: FY2018 First Quarter Financial Results
GREE, Inc. FY2018 First Quarter Financial Results October 27, 2017 Copyright © GREE, Inc. All Rights Reserved.
Slide 2: Executive Summary
Executive Summary Financial Net Sales ¥21.6 billion, Operating Income ¥2.7 billion, EBITDA Results ¥3.1 billion Overview ⁃ Achieved QoQ growth in both sales and income Began full-scale operation of hit titles and made progress in development of new hit titles ⁃ Proactively implemented measur es
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: FY18 1Q Financial Results Overview
1. Financial Results Overview (Consolidated ) FY18 1Q Financial Results Overview Net sales ¥21.6bn, operating income ¥2.7bn Billions of yen FY18 1Q FY17 4Q FY17 1Q QoQ YoY Net sales 21.61 2.38 6.71 19.23 14.91 EBITDA 3.06 -0.02 0.36 3.08 2.71 Operating 2.69 0.29 0.15 2.41 2.54 income Ordinary 3.02 0
Slide 6: Net Sales, EBITDA, and Operating Income
1. Financial Results Overview (Consolidated) Net Sales, EBITDA, and Operating Income QoQ growth in sales and income Billions of yen 22.0 21.6 25.0% 19.2 15.9 14.9 15.3 17.1% 12.5% 11.0 12.5% 12.5% 9.8% 9.7% 2.7 2.5 3.1 3.1 2.2 2.4 2.7 2.1 1.5 1.5 0.0 0.0% 1Q 2Q 3Q 4Q 1Q FY17 FY18 Net Sales EBITDA Op
Slide 7: Operating Income Analysis
1. Financial Results Overview (Consolidated) Operating Income Analysis Income up ¥300 million as sales growth and fixed cost cutting more than offset a rise in variable costs, including advertising costs Billions of yen 0.29bn increase +2.38 -2.73 2.41 ＋0.64 2.69 Operating Increase in Increase in De
Slide 8: FY18 1Q Cost Structure
1. Financial Results Overview (Consolidated) FY18 1Q Cost Structure Increased investment in growth businesses and advertising spending and cut labor costs by closing overseas bases Billions of yen FY18 FY17 FY17 Factors in change（QoQ） 1Q QoQ YoY 4Q 1Q Increase from investment in growth businesses Ad
Slide 9: 1H FY18 Earnings Forecast
1. Financial Results Overview (Consolidated) 1H FY18 Earnings Forecast Net sales ¥40.5bn , operating income ¥4.5bn , EBITDA ¥5.2 billion Billions of yen 1Q 2Q 1H FY18 forecast results forecast Net sales 21.6 18.9 40.5 Operating income 2.7 1.8 4.5 Ordinary income 3.0 1.8 4.8 Net income 1.9 1.1 3.0 EB
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 1Q FY18 Business Plan
2. Operational Overview: Summary Review and Summary of 1Q FY18 Business Plan Review Aggressive push forward with - Sustained growth in native games, made aggressive Overall investment in growth investments in media operations growth businesses Game/entertainment - Full-scale operation of existing ti
Slide 12: FY18 development pipeline
2. Operational Overview: Game/entertainment business, Native games FY18 development pipeline One title already released; total of five titles in development 1H 2H F18 full-year First-party IP Co-developed IP 0 （1） 1 1 （0） （1） Third-party IP 1 （1） 4 （4） 5 （5） Notes: • All titles in pipeline have rece
Slide 13: Progress Made: Coin Consumption Topics
2. Operational Overview: Game/entertainment business, Native Games Progress Made Coin Consumption Topics Billions of coins Existing titles driving growth in coin 150 15.0 consumption 12.6 Full-scale operation of titles released 10.0 in previous quarter - Major updates - Large-scale collaboration
Slide 14: Expected growth trend in native games
2. Operational Overview: Game/entertainment business, Native games Expected growth trend in native games Sales growth through strengthening of operations and overseas development Initial strong Temporary Strengthening of Overseas performance decline operations development Note: The graphic below is
Slide 15: Another Eden: The Cat Who Goes Beyond Time
2. Operational Overview: Game/entertainment business, Native Games Existing title Another Eden: The Cat Who Goes Beyond Time Strengthening operation through continuous updates and large-scale promotions Continuous updates Large-scale promotions - We added more storylines, characters, and an in-app f
Slide 16: SINoALICE
2. Operational Overview: Game/entertainment business, Native Games Existing title SINoALICE Strengthened operations through large-scale collaboration and GvG event Large-scale collaboration Guild-versus-guild event - Director Yoko Taro, Keiichi Okabe and MONACA from the NieR series have created new
Slide 17: Senki Zesshou SYMPHOGEAR XD Unlimited
2. Operational Overview: Game/entertainment business, Native Games Existing title Senki Zesshou SYMPHOGEAR XD Unlimited Features new content that closely conforms to the world of anime series Senki Zesshou SYMPHOGEAR Added original stories Continuously adding content - Added new function allowing pl
Slide 18: Is It Wrong to Try to Pick Up Girls in a Dungeon: Memoria Freeze
2. Operational Overview: Game/entertainment business, Native Games Existing title Is It Wrong to Try to Pick Up Girls in a Dungeon: Memoria Freeze Planning overseas launch in early 2018 targeting overseas fans of the original novels and anime Launching overseas in cooperation with strong partners Ma
Slide 19: AKB48 Stage Fighter Battle Festival
2. Operational Overview: Game/entertainment business, Native Games New title AKB48 Stage Fighter 2 Battle Festival Planning to hold integrated in -game and real-world events First integrated in- Released on October 11 game/real-world event AKBトレイン選抜の画像 - Team up with fans of your favorite AKB48 memb
Slide 20: Library Cross Infinite
2. Operational Overview: Game/entertainment business, Native Games In Development Library Cross Infinite Joint development by Idea Factory and Wright Flyer Studios, pre-registration underway - All-new bittersweet romance puzzle RPG featuring an all-star cast of popular characters from Otomate (a div
Slide 21: Puchiguru Love Live!
2. Operational Overview: Game/entertainment business, Native Games In Development Puchiguru Love Live! New Love Live! series game for smartphones created in close collaboration with Sunrise. Pre-registration underway. - All the µ's characters and Aqours characters from the Love Live! series appear a
Slide 22: VR business
2. Operational Overview: Game/entertainment business VR business Progress in investment, development and market promotion Launch of version for the PlayStation®VR VR image production partnerships Developed jointly with Square Enix Tie ups with Toyoda High System and JAXA, etc. • Multiplatform develo
Slide 23: Advertising and media business: Progress Made
2. Operational Overview: Advertising and media business Progress Made Growth in media page views TV commercials aired 2.4x QoQ growth Strengthened promotions to expand user base ×2.4 4Q 1Q • Steady growth in page views at websites including LIMIA and MINE BY 3M 23 Copyright © GREE, Inc. All Rights R
Slide 24: 3. Appendix
Contents 1. Financial Results Overview 2. Operational Overview 3. Appendix Copyright © GREE, Inc. All Rights Reserved.
Slide 25: Coin Consumption (1)
3. Appendix Coin Consumption (1) Overall coin consumption Web game coin consumption Billions of coins Billions of coins 150 15.0 250 25.0 22.9 21.5 12.7 1.9 11.9 19.0 18.5 2.2 10.9 18.4 9.9 3.3 2.9 2.5 7.1 5.3 9.0 4.9 7.7 4.6 125 75 7.5 4.7 12.5 8.4 4.3 9.4 8.9 13.9 7.4 6.9 11.5 6.3 5.2 4.7 6.7 7.5
Slide 26: Coin Consumption (2)
3. Appendix Coin Consumption (2) Japan Native Games Overseas Native Games Billions of coins Billions of coins 15.0 150 30 3.0 12.6 2.5 2.1 10.0 1.7 1.5 75 7.5 1.5 15 1.3 5.4 4.6 4.1 0 0 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q FY17 FY18 FY17 FY18 Note: Classified by area of development 26 Copyright © GREE, Inc
Slide 27: Coin Consumption (3)
3. Appendix Coin Consumption (3) Overseas Japan (MM USD) Billions of coins 250 25.0 30 21.6 20.0 23 17.5 16.0 16.3 19 16 16.4 125 12.5 9.3 14.2 15 14 8.5 9.2 12 8.0 7.5 7.0 5.8 5.3 0 0 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q FY17 FY18 FY17 FY18 ■ Third-party ■ First-party/Co-developed ■ サードパーティ ■ 自社・協業 Note:
Slide 28: 1Q FY18 Cost Structure
3. Appendix 1Q FY18 Cost Structure Millions of yen FY18 FY17 FY17 1Q 4Q 1Q QoQ YoY Rental charges 963 74 303 889 660 Labor costs 2,082 -200 -48 2,283 2,130 Others 5,045 1,657 3,252 3,389 1,794 Cost of sales 8,090 1,530 3,507 6,560 4,584 Advertising 2,328 563 1,697 1,765 631 Commission fees 5,038 672
Slide 29: 1Q FY18 Balance Sheet
3. Appendix 1Q FY18 Balance Sheet Billions of yen FY18 FY17 FY17 1Q QoQ YoY 4Q 1Q Current assets 95.66 -0.80 -8.25 96.46 103.91 Fixed assets 27.04 0.54 9.87 26.50 17.17 Total assets 122.69 -0.26 1.62 122.95 121.08 Current liabilities 13.03 0.53 1.60 12.49 11.43 Fixed liabilities 0.55 -0.03 0.18 0.58
Slide 30: Breakdown of Group Headcount
3. Appendix Breakdown of Group Headcount Number of employees Headcount at Group companies end-1Q Japan Game/Entertainment - 902 Business Native Game Business Pokelabo, Wright Flyer Studios (384) Web Game / Operation Business funplex (280) Shared game depts. ExPlay (238) Includes GREE International E
Slide 31: Forward-looking statements notice
■ 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