Gree Holdings.inc. · TSE:3632

Gree Holdings.inc — Q3 FY2019 Earnings Presentation

29 slides from Gree Holdings.inc's earnings presentation, Apr 26, 2019

  1. Slide 1: FY2019 Third Quarter Financial Results

    GREE, Inc. FY2019 Third Quarter Financial Results April 26, 2019 Copyright © GREE, Inc. All Rights Reserved.

  2. Slide 2: Executive Summary

    Executive Summary Financial  Net Sales ¥17.6 billion, Operating Income ¥1.6 billion, EBITDA ¥1.8 Results billion Overview ⁃ Net sales were in line with our forecast and operating income surpassed our forecast  Overseas distribution proceeded smoothly ⁃ Overseas self-distribution of first-party IP

  3. Slide 3: Contents

    Contents 1. Financial Results Overview 2. Operational Overview 3. Appendix Copyright © GREE, Inc. All Rights Reserved.

  4. Slide 4: 1. Financial Results Overview

    Contents 1. Financial Results Overview 2. Operational Overview 3. Appendix Copyright © GREE, Inc. All Rights Reserved.

  5. Slide 5: Net Sales ¥17.6 billion, Operating Income ¥1.6 billion and EBITDA ¥1.8 billion

    1. Financial Results Overview (Consolidated) FY19 3Q Financial Results Overview Net Sales ¥17.6 billion, Operating Income ¥1.6 billion and EBITDA ¥1.8 billion Billions of yen FY19 FY19 FY19 3Q QoQ YoY 2Q 3Q Net sales 17.64 -0.09 -0.23 17.73 17.87 Operating income 1.55 0.59 -1.23 0.97 2.78 Ordinary i

  6. Slide 6: Net Sales, Operating Income, and EBITDA

    1. Financial Results Overview (Consolidated) Net Sales, Operating Income, and EBITDA Strong earnings on contribution from overseas distribution and improved cost efficiency on operation of existing titles Billions of yen 22.0 25.0% 19.0 17.9 18.2 17.7 17.6 15.6% 11.0 12.5% 8.9% 8.5% 8.8% 5.4% 2.8 3.

  7. Slide 7: Operating Income Analysis

    1. Financial Results Overview (Consolidated) Operating Income Analysis A decline in web games was offset by growth in mobile games Fixed costs improved considerably owing to the streamlining of operations Billions of yen ¥0.59bn increase ＋0.66 1.55 0.97 -0.09 ＋0.02 Operating Decrease in Decrease in

  8. Slide 8: FY19 3Q Cost Structure

    1. Financial Results Overview (Consolidated) FY19 3Q Cost Structure Total costs down ¥700 million QoQ, to ¥16.1 billion Billions of yen FY19 FY19 FY18 Factors in change（QoQ） 3Q QoQ YoY 2Q 3Q Increase from overseas development (FY19 2Q 5.0% → FY19 Advertising 1.12 0.23 0.29 3Q 6.3%) 0.89 0.83 Commiss

  9. Slide 9: FY19 4Q Earnings Forecast

    1. Financial Results Overview (Consolidated) FY19 4Q Earnings Forecast Plan: Net Sales ¥17.0 billion~¥18.0 billion, Operating income ¥1.0 billion ~ ¥1.5 billion Billions of yen 1Q 2Q 3Q 4Q Results Results Results Forecast Net sales 18.2 17.7 17.6 17.0~18.0 Operating 1.6 1.0 1.6 1.0~1.5 income EBITDA

  10. Slide 10: 2. Operational Overview

    Contents 1. Financial Results Overview 2. Operational Overview 3. Appendix Copyright © GREE, Inc. All Rights Reserved.

  11. Slide 11: Review and Summary of 3Q

    2. Operational Overview: Summary Review and Summary of 3Q FY19 Business Plan Review Overall Strengthen 3 - Made progress in distributing games overseas, self- earnings pillars distribution of first-party IP - Overseas self-distribution of first-party IP title Another Eden off to a strong start “Game

  12. Slide 12: Development pipeline

    2. Operational Overview: Game/entertainment business - Mobile Development pipeline Five titles in development FY20 and FY19 onward Already In released development First-party IP Co-developed IP 0 1 1 （0） （1） （1） Third-party IP 1 0 3 （1） （0） （3） Notes: • All titles in pipeline have received approval

  13. Slide 13: Progress Made

    2. Operational Overview: Game/entertainment business - Mobile Progress Made Domestic coin consumption (domestically developed titles) Topics Billions of coins  Another Eden 15.0 - Began self-distribution in 8 countries and regions 11.4 10.8 11.0 10.5  DanMachi 9.0 - Global operations proceeding sm

  14. Slide 14: Nurturing first-party IP over long term ①

    2. Operational Overview: Game/entertainment business - Mobile New titles Nurturing first-party IP over long term ① Expanded Shoumetsu Toshi fan base through launch of TV anime, launch of new mobile game title in the series Shoumetsu Toshi TV anime AFTERLOST - Shoumetsu Toshi Launched April 7 Began p

  15. Slide 15: Nurturing first-party IP over long term ②

    2. Operational Overview: Game/entertainment business - Mobile Nurturing first-party IP over long term ② Energized users by releasing updates and additional content with anime tie-ins Another Eden Shoumetsu Toshi 0 Continued to release updates Added content tied to TV anime series • Energized existin

  16. Slide 16: Expanding fan communities ①

    2. Operational Overview: Game/entertainment business - Mobile Expanding fan communities ① Expanding fan base through strong IP collaborations SINoALICE DanMachi Hosted collaboration event Hosted collaboration event • Collaborated with NieR RepliCant to • Attracted new fans through collaboration furt

  17. Slide 17: Expanding fan communities ②

    2. Operational Overview: Game/entertainment business - Mobile Expanding fan communities ② Expanding fan base through collaboration with strong IP and anniversary events Senki Zesshou SYMPHOGEAR XD UNLIMITED In Love with NEWS Hosted collaboration event Held 1-year anniversary campaign • Expanding fan

  18. Slide 18: Full-scale overseas distribution ①

    2. Operational Overview: Game/entertainment business - Mobile Full-scale overseas distribution ① Overseas distribution of Another Eden contributed to sales Another Eden Sales rising Launched on January 29th ×2 Overseas Japan • Began self-distribution in 8 countries and regions 2Q 3Q 18 Copyright © G

  19. Slide 19: Full-scale overseas distribution ②

    2. Operational Overview: Game/entertainment business - Mobile Full-scale overseas distribution ② Fans around the world energized by global simultaneous collaboration DanMachi DAU rising Held collaboration event with strong IP ×1.5 Overseas Japan • Provided collaboration event simultaneously Beforeコラ

  20. Slide 20: Overseas distribution plans

    2. Operational Overview: Game/entertainment business - Mobile Overseas distribution plans Release of AFTERLOST - Shoumetsu Toshi scheduled for FY2019 Distribution region Partnership North Hong Kong, agreement Japan America Europe Taiwan, etc. China status Released Released Preparing Released Prepari

  21. Slide 21: Expansion of REALITY content lineup

    2. Operational Overview: Game/entertainment business - Live, etc. Expansion of REALITY content lineup We continue to add to our lineup of original programs exclusive to REALITY Regularly scheduled Festival 2 music program Held REALITY FESTIVAL 2 starting on April 8 Buion!! launched on March 1st 21 C

  22. Slide 22: Strengthened media potential

    2. Operational Overview: Advertising and media business Strengthened media potential Expanded content portfolio and energized user communities through tie-ups and campaigns LIMIA ARINE Participated in Shimachu store Held picture posting campaign remodeling project • Acted as producer for a section o

  23. Slide 23: 3. Appendix

    Contents 1. Financial Results Overview 2. Operational Overview 3. Appendix Copyright © GREE, Inc. All Rights Reserved.

  24. Slide 24: Coin Consumption (1)

    3. Appendix Coin Consumption (1) Overall coin consumption (1) Overall coin consumption (2) Billions of coins Billions of coins 25.0 25.0 19.1 19.1 17.6 18.1 17.6 18.1 1.3 17.3 17.1 17.3 17.1 1.1 1.5 1.0 0.8 4.4 4.5 5.0 5.7 4.5 4.4 5.5 4.9 5.3 12.5 6.2 12.5 14.8 13.1 13.0 12.8 12.7 12.2 11.4 11.4 11.

  25. Slide 25: Coin Consumption (2)

    3. Appendix Coin Consumption (2) Mobile games Web games Billions of coins Billions of coins 15.0 15.0 12.2 11.4 11.4 0.8 11.1 0.7 0.4 9.8 0.6 0.8 7.7 7.5 7.5 7.0 6.6 6.2 5.7 11.4 11.0 3.8 10.8 10.5 3.4 3.4 3.2 9.0 3.0 3.9 3.5 3.2 3.0 2.7 0.0 0.0 3Q 4Q 1Q 2Q 3Q 3Q 4Q 1Q 2Q 3Q FY18 FY19 FY18 FY19 ■ De

  26. Slide 26: FY19 3Q Cost Structure

    3. Appendix FY19 3Q Cost Structure Millions of yen FY19 FY19 FY18 3Q 2Q 3Q QoQ YoY Rental charges 636 -68 △50 704 686 Labor costs 2,395 185 421 2,210 1,974 Others 4,796 -730 450 5,526 4,346 Cost of sales 7,827 -613 820 8,440 7,007 Advertising 1,119 230 293 890 827 Commission fees 3,517 46 -307 3,472

  27. Slide 27: FY19 3Q Balance Sheet

    3. Appendix FY19 3Q Balance Sheet Billions of yen FY19 FY19 FY18 3Q QoQ YoY 2Q 3Q Current assets 96.27 -0.01 0.95 96.28 95.32 Fixed assets 30.28 1.12 -0.44 29.17 30.72 Total assets 126.55 1.11 0.51 125.45 126.04 Current liabilities 12.13 -0.11 0.42 12.24 11.71 Fixed liabilities 0.96 0.06 0.32 0.90 0

  28. Slide 28: Breakdown of Group Headcount

    3. Appendix Breakdown of Group Headcount Number of employees Headcount at Group companies end-3Q Game/Entertainment funplex, Pokelabo, WFS, Wright Flyer Live Entertainment, etc. 1,050 Business Advertising and Media Glossom, Limia, 3 Minutes, aumo, GREE Lifestyle, etc. 410 Business Other businesses I

  29. Slide 29: ■ This document includes some forecasts, which are based on currently available information. Actual

    ■ This document includes some 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 guaran

GREE — Q3 FY2019 Earnings Presentation on 6ix