Gree Holdings.inc. · TSE:3632
Gree Holdings.inc — Q1 FY2022 Earnings Presentation
27 slides from Gree Holdings.inc's earnings presentation, Nov 5, 2021
Slide 1: FY2022 First Quarter Financial Results
GREE, Inc. FY2022 First Quarter Financial Results November 5, 2021 Copyright © GREE, Inc. All Rights Reserved.
Slide 2: Executive Summary
Executive Summary ◼ Net sales ¥13.7 billion, operating income ¥1.6 billion, EBITDA ¥1.6 Financial billion Results Overview ⁃ Internet and Entertainment Business operating income of ¥0.5 billion surpassed our forecast ◼ Made progress in developing new titles ⁃ Started distribution of That Time I Got
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: FY22 1Q Financial Results Overview
1. Financial Results Overview (Consolidated) FY22 1Q Financial Results Overview Net sales ¥13.7 billion, operating income ¥1.6 billion, EBITDA ¥1.6 billion Billions of yen FY22 FY21 FY21 1Q QoQ YoY 4Q 1Q Net sales 13.67 -1.05 -2.03 14.72 15.71 Operating income 1.55 -0.47 -0.37 2.02 1.92 Ordinary inc
Slide 6: Net Sales and Operating Income
1. Financial Results Overview (Consolidated) Net Sales and Operating Income Compared to the previous quarter, sales and income down in Internet and Entertainment Business, but up in Investment and Incubation Business Net sales Operating income Billions of yen Billions of yen 15.71 16.54 16.24 3.56 1
Slide 7: Operating Income Analysis
1. Financial Results Overview (Consolidated) Operating Income Analysis Income of the Game Business decreased due to a rebound from the anniversary events for mainstay titles Another Eden and SINoALICE, held in the previous quarter, but we still posted operating income of ¥1.6 billion on contribution
Slide 8: Cost Structure
1. Financial Results Overview (Consolidated) Cost Structure Total costs down ¥0.6 billion QoQ, to ¥12.1 billion Billions of yen FY22 FY21 FY21 Factors in change（QoQ） 1Q QoQ YoY 4Q 1Q Increase due to investment in Metaverse Business Advertising 0.82 0.30 0.37 advertising/promotion 0.51 0.45 Commissio
Slide 9: Stock Repurchase
1. Financial Results Overview (Consolidated) Stock Repurchase Implemented stock repurchase to increase shareholder returns and to implement a flexible capital policy (up to 35 million shares worth up to ¥35.0 billion) Cumulative repurchases（as of October 31, 2021） Total number of shares repurchased
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
2. Operational Overview: Summary Review and Summary of 1Q Business Plan Review Continue to strengthen 3 Overall ‒ Aggressively invested in three businesses earnings pillars Internet and Entertainment “Game ‒ Started distribution of That Time I Got Reincarnated Entertainment engine, IP, as a Slime: I
Slide 12: Distribution and pre-registration of new titles
2. Operational Overview: Game Distribution and pre-registration of new titles Made progress in developing new titles and began collaborative title distribution and pre-registration That Time I Got Reincarnated as a Slime: ISEKAI Memories Heaven Burns Red Started distribution on October 28, 2021 Pre-
Slide 13: Pipeline
2. Operational Overview: Game Pipeline Plan to continue to release 2-3 in-house developed new titles per year; aiming to generate hits KNIGHTS OF SIDONIA Shoui No Kizuna Heaven Burns Red Echoes of Mana In-house developed collaboration In-house developed collaboration In-house developed collaboration
Slide 14: Expanding and Energizing Fan Communities ①
2. Operational Overview: Game Expanding and Energizing Fan Communities ① Energized users by adding more original content and collaborating with popular IP Another Eden SINoALICE Original content IP collaboration • Started distribution of additional storyline, • Collaboration with DC "The Box of the
Slide 15: Expanding and Energizing Fan Communities ②
2. Operational Overview: Game Expanding and Energizing Fan Communities ② Energized users through anniversary events Assault Lily: Last Bullet DanMachi Marked Half-anniversary Marked four-year anniversary • Held half-anniversary campaign • Added new storyline unique to drafted and produced by origina
Slide 16: Further developed platform
2. Operational Overview: Metaverse Further developed platform Expanded content for REALITY and made progress on global distribution Avatar gacha Global distribution Specters of the Demon Parade Geographical distribution of users （As of September 2021） Japan Overseas • Expanded lineup of avatar varia
Slide 17: Strengthened Media Potential
2. Operational Overview: Advertising and Media Strengthened Media Potential Energized communities through cross-media collaborations and campaigns aumo LIMIA Over 500 media affiliates Idea posting contest • Enhanced delivery of local information • Energized user community through through cross-media
Slide 18: Investment and Incubation: Net Sales and Operating Income
2. Operational Overview: Investment and Incubation Net Sales and Operating Income Stable long-term income contribution despite volatility over the near term Net sales Operating income Billions of yen Billions of yen 2.86 2.80 2.33 1.84 1.34 1.07 0.78 0.47 0.52 0.32 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q FY21
Slide 19: Overview of Total Assets Under Management (AUM)
2. Operational Overview: Investment and Incubation Overview of Total Assets Under Management (AUM) Focused on investments via CVC (Corporate Venture Capital) and the GREE LP Fund Scale of operations and main investments Approx. Billions of yen 67.0 GREE LP Fund Approx. 43.0 • Investment in companies
Slide 20: Strengthening Investment
2. Operational Overview: Investment and Incubation Strengthening Investment Investing in VC funds Value of direct investments Investment status in 1Q (operational investment securities + investment securities) Billions of yen Approx. ◼ GREE LP Fund 45.0 ⁃ Investment in 9 VC funds including Approx. E
Slide 21: 3. Appendix
Contents 1. Financial Results Overview 2. Operational Overview 3. Appendix Copyright © GREE, Inc. All Rights Reserved.
Slide 22: Metaverse and REALITY
3. Appendix Metaverse and REALITY The Metaverse is a digital universe wherein people around the world What is the can inhabit avatars to interact, play, and conduct economic activities Metaverse? in much the same way as in the real world REALITY A digital universe where users can communicate and act
Slide 23: Analysis of Operational Investment Securities
3. Appendix Analysis of Operational Investment Securities Billions of yen ＋3.4 25.3 ＋1.3 -1.4 12.9 22.0 Valuation & 11.3 translation Investment Declines from Other factors adjustments Valuation & gains earnings translation distributions and adjustments sales 12.3 10.6 Amount Amount invested invested
Slide 24: 1Q FY22 Cost Structure
3. Appendix 1Q FY22 Cost Structure Billions of yen FY22 FY21 FY21 1Q QoQ YoY 4Q 1Q Rental charges 0.51 -0.02 -0.04 0.53 0.55 Labor costs 2.27 0.07 0.08 2.20 2.19 Others 3.15 -0.06 -0.87 3.21 4.02 Cost of sales 5.93 -0.00 -0.83 5.93 6.76 Advertising 0.82 0.30 0.37 0.52 0.45 Commission fees 2.36 -0.39
Slide 25: 1Q FY22 Balance Sheet
3. Appendix 1Q FY22 Balance Sheet Billions of yen FY22 FY21 FY21 1Q QoQ YoY 4Q 1Q Current assets 130.7 -0.3 20.3 131.0 110.4 Fixed assets 11.1 0.7 -2.3 10.4 13.4 Total assets 141.8 0.4 18.0 141.4 123.8 Current liabilities 12.6 0.9 2.5 11.6 10.1 Fixed liabilities 10.0 0.5 8.7 9.5 1.3 Total liabilitie
Slide 26: Group Headcount
3. Appendix Group Headcount Number of employees 1,616 1,607 1,589 1,603 1,604 1Q 2Q 3Q 4Q 1Q FY21 FY22 Notes: • Includes non-consolidated group companies; as of the end of each quarter 26 Copyright © GREE, Inc. All Rights Reserved.
Slide 27: ■ This document includes forecasts, which are based on currently available information. Actual performance
■ This document includes forecasts, which are based on currently available information. Actual performance may differ due to various factors. ■ When producing this document, we were careful to avoid errors or omissions, but the accuracy and completeness of the provided information is not guaranteed.