Gree Holdings.inc. · TSE:3632
Gree Holdings.inc — Q2 FY2021 Earnings Presentation
27 slides from Gree Holdings.inc's earnings presentation, Feb 12, 2021
Slide 1: FY2021 Second Quarter Financial Results
GREE, Inc. FY2021 Second Quarter Financial Results February 12, 2021 Copyright © GREE, Inc. All Rights Reserved.
Slide 2: Executive Summary
Executive Summary Financial ◼ Net Sales ¥13.7 billion, Operating Income ¥0.6 billion, EBITDA ¥0.8 Results billion Overview ⁃ Operating income was in line with our forecast ◼ Released new title ⁃ Started distribution of Assault Lily: Last Bullet in January 2021 Business ◼ Made progress with major tit
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: FY21 2Q Financial Results Overview
1. Financial Results Overview (Consolidated) FY21 2Q Financial Results Overview Net sales ¥13.7 billion , Operating income ¥0.6 billion , EBITDA ¥0.8 billion. Net income ¥3.0 billion on profit from investment fund operation business, etc. Billions of yen FY21 FY21 FY20 2Q QoQ YoY 1Q 2Q Net sales 13.
Slide 6: Net Sales, EBITDA, and Operating Income
1. Financial Results Overview (Consolidated) Net Sales, EBITDA, and Operating Income Operating income remained firm despite seasonal decline in game business sales Billions of yen 20.0 25.0％ 16.4 15.4 15.2 15.0 13.7 10.0 12.5％ 10.5% 8.0% 5.0% 4.1% 1.6 1.8 1.1 1.2 1.4 0.8 0.8 0.6 ▲0.1 0.1 0 0.0％ ▲0.4
Slide 7: 2Q Operating Income Analysis
1. Financial Results Overview (Consolidated) 2Q Operating Income Analysis Operating income down ¥1.0 billion QoQ on net sales decline Billions of yen ¥1.04bn decrease 1.60 -1.56 +0.66 -0.14 0.56 Operating Operating income income 1Q 2Q Decrease in Decrease in Increase in net sales variable costs fixe
Slide 8: FY21 2Q Cost Structure
1. Financial Results Overview (Consolidated) FY21 2Q Cost Structure Total costs down ¥0.5 billion QoQ, to ¥13.1 billion Billions of yen FY21 FY21 FY20 Factors in change（QoQ） 2Q QoQ YoY 1Q 2Q Increase on higher ad costs for game apps including new Advertising 0.69 0.24 -0.06 title 0.45 0.76 Commissio
Slide 9: Stock Repurchase
1. Financial Results Overview (Consolidated) Stock Repurchase Implemented the stock repurchase to increase shareholder returns and to implement a flexible capital policy (up to 20 million shares worth up to ¥12.0 billion) Cumulative repurchases（as of January 31, 2021） Total number of shares repurcha
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 2Q
2. Operational Overview: Summary Review and Summary of 2Q FY21 Business Plan Review Continue to strengthen 3 - In the game business, developed new titles and made Overall earnings progress in overseas distribution pillars - Made progress in development of Assault Lily: Last Game/entertainment “Game
Slide 12: Game business Progress Made
2. Operational Overview: Game business Progress Made Coin consumption (App games) Topics Billions of coins ◼ Decline coin consumption of 10.5 SINoALICE after strong growth 10.3 100 10.0 9.7 9.7 following global launch 8.5 ◼ Maintained stable coin consumption despite slightly weaker performance from
Slide 13: Released new title (In-house developed)
2. Operational Overview: Game business Released new title (In-house developed) Started distribution of Assault Lily: Last Bullet; off to a strong start • Collaborative title with Bushiroad, TBS, and SHAFT, launched on January 20, 2021 • Developing a variety of media mix plans including TV anime stor
Slide 14: Released new title (Licensed title)
2. Operational Overview: Game business Released new title (Licensed title) Domestic launched of One-Punch Man Ichigeki Maji Fight off to a smooth start • Developed by GREE and Ourpalm Co. Ltd. of China, launched on October 29, 2020 © ONE, Yusuke Murata/SHUEISHA, Hero Association HQ 14 Copyright © GR
Slide 15: Development pipeline
2. Operational Overview: Game business Development pipeline Plan to continue to release 2-3 in-house developed new titles per year; aiming to generate hits Assault Lily: Last Bullet Heaven Burns Red KNIGHT OF SIDONIA game project In-house developed In-house developed In-house developed Released ・Rel
Slide 16: Overseas Distribution: China
2. Operational Overview: Game business Overseas Distribution: China Started distribution of Another Eden of Chinese version Distribution of major titles in China Another Eden of Chinese version Chinese distribution partners ■ bilibili Operator of largest Chinese youth culture and subculture communit
Slide 17: Expanding and Energizing Fan Communities ①
2. Operational Overview: Game business Expanding and Energizing Fan Communities ① Energized users by collaborating with popular IP Senki Zesshou SYMPHOGEAR XD Another Eden UNLIMITED IP collaboration IP collaboration • Collaboration with Tales of series • Collaboration with Gamera © WFS © Mutsumi Ino
Slide 18: Expanding and Energizing Fan Communities ②
2. Operational Overview: Game business Expanding and Energizing Fan Communities ② Energized users through major campaigns SINoALICE DanMachi Christmas campaign 3.5-year anniversary campaign • Held major campaign and SNS with events • Anime tie-in and revival of popular gacha offering Note: • DanMach
Slide 19: Further develop platform
2. Operational Overview: Live Entertainment Further develop platform Expanded contents on REALITY by adding avatar gacha offerings etc. Selected for Google Play Best of 2020 Avatar gacha Entertainment category Enchanting China party attire • REALITY app was selected in the • Expanded lineup of avata
Slide 20: Strengthened Media Potential
2. Operational Overview: Advertising and media Strengthened Media Potential Expanded contents to meet user needs aumo LIMIA Special GoTo campaign issue Held photo posting contest • Strengthened media potential by presenting • Energized user community through photo articles explaining the GoTo campai
Slide 21: 3. Appendix
Contents 1. Financial Results Overview 2. Operational Overview 3. Appendix Copyright © GREE, Inc. All Rights Reserved.
Slide 22: Overseas Distribution
3. Appendix Overseas Distribution Distribution regions North Hong Kong, Mainland Japan America Europe Taiwan, etc. China Released Released Released Released Released DanMachi Agreement Released Released Released Released signed SINoALICE Released Released Released Released Released 11/5 Another Eden
Slide 23: Coin Consumption
3. Appendix Coin Consumption Billions of coins 14.7 14.6 14.0 14.0 0.5 0.4 0.5 0.4 12.3 3.9 3.8 0.3 3.8 3.9 3.5 10.3 10.5 9.7 9.7 8.5 2Q 3Q 4Q 1Q 2Q FY20 FY21 ■Game apps ■Browser games (smartphones) ■Browser games (feature phones) Note: • Excludes coin consumption from licensed titles and mainstay t
Slide 24: 2Q FY21 Cost Structure
3. Appendix 2Q FY21 Cost Structure Billions of yen FY21 FY21 FY20 2Q QoQ YoY 1Q 2Q Rental charges 0.52 -0.03 -0.07 0.55 0.59 Labor costs 2.29 0.10 0.09 2.19 2.20 Others 3.67 -0.20 -1.11 3.87 4.78 Cost of sales 6.48 -0.13 -1.08 6.61 7.56 Advertising 0.69 0.24 -0.06 0.45 0.76 Commission fees 2.78 -0.5
Slide 25: 2Q FY21 Balance Sheet
3. Appendix 2Q FY21 Balance Sheet Billions of yen FY21 FY21 FY20 2Q QoQ YoY 1Q 2Q Current assets 104.0 8.7 5.6 95.3 98.4 Fixed assets 30.9 2.4 1.2 28.5 29.7 Total assets 134.9 11.1 6.8 123.8 128.1 Current liabilities 10.5 0.4 -2.0 10.1 12.6 Fixed liabilities 10.3 9.0 9.4 1.3 0.9 Total liabilities 20
Slide 26: Group Headcount
3. Appendix Group Headcount Number of employees 1,712 1,702 1,710 1,616 1,607 2Q 3Q 4Q 1Q 2Q FY20 FY21 Notes: • Includes non-consolidated group companies; as of the end of each quarter • Headcount declined by 94 QoQ in 1Q FY21 owing to restructuring of some businesses 26 Copyright © GREE, Inc. All R
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.