Gree Holdings.inc. · TSE:3632
Gree Holdings.inc — Q3 FY2021 Earnings Presentation
26 slides from Gree Holdings.inc's earnings presentation, May 10, 2021
Slide 1: FY2021 Third Quarter Financial Results
GREE, Inc. FY2021 Third Quarter Financial Results May 10, 2021 Copyright © GREE, Inc. All Rights Reserved.
Slide 2: Executive Summary
Executive Summary Financial ◼ Net Sales ¥13.9 billion, Operating Income ¥1.7 billion, EBITDA ¥1.9 Results billion Overview ⁃ Operating income surpassed our forecast ◼ Released new title, off to a strong start ⁃ Started distribution of Assault Lily: Last Bullet on January 20 ◼ Made progress in develo
Slide 3: Contents
Contents 1. Financial Results Overview 2. Operational Overview 3. Appendix Copyright © GREE, Inc. All Rights Reserved.
Slide 4: Contents
Contents 1. Financial Results Overview 2. Operational Overview 3. Appendix Copyright © GREE, Inc. All Rights Reserved.
Slide 5: FY21 3Q Financial Results Overview
1. Financial Results Overview (Consolidated) FY21 3Q Financial Results Overview Net sales ¥ 13.9 billion , Operating income ¥1.7 billion , EBITDA ¥1.9 billion. Net income ¥5.1 billion on profit from investment fund operation business, etc. Billions of yen FY21 FY21 FY20 3Q QoQ YoY 2Q 3Q Net sales 13
Slide 6: Net Sales, EBITDA, and Operating Income
1. Financial Results Overview (Consolidated) Net Sales, EBITDA, and Operating Income Growth in sales and income on contribution from new title Billions of yen and cost cutting measures 20.0 25.0％ 15.4 15.2 15.0 13.7 13.9 12.4% 10.0 12.5％ 10.5% 8.0% 4.1% 1.6 1.8 1.7 1.9 1.2 1.4 0.6 0.8 ▲0.1 0.1 0 0.0
Slide 7: 3Q Operating Income Analysis
1. Financial Results Overview (Consolidated) 3Q Operating Income Analysis Operating income up ¥1.2 billion on sales growth driven by new title and lower advertising costs, etc. Billions of yen ¥1.16bn ¥1.16 increasebn increase +0.32 1.72 +0.61 +0.23 0.56 Operating Operating income income 2Q 3Q Incre
Slide 8: FY21 3Q Cost Structure
1. Financial Results Overview (Consolidated) FY21 3Q Cost Structure Total costs down ¥0.9 billion QoQ, to ¥12.2 billion Billions of yen FY21 FY21 FY20 Factors in change（QoQ） 3Q QoQ YoY 2Q 3Q Advertising 0.31 -0.38 -0.09 Decline on increased efficiency 0.69 0.40 Commission Fees, etc. 4.20 -0.16 -0.67
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 20 million shares worth up to ¥12.0 billion) Cumulative repurchases（as of April 30, 2021） Total number of shares repurchased Ro
Slide 10: Dividend Forecast
1. Financial Results Overview (Consolidated) Dividend Forecast Planned dividend of ¥11 per share Dividend Distribution Policy Maintaining a dividend on DOE of 2.0%, consolidated dividend payout ratio of 20% or higher FY21 Forecast FY20 Results Dividend record date June 30, 2021 June 30, 2020 Per-sha
Slide 11: Contents
Contents 1. Financial Results Overview 2. Operational Overview 3. Appendix Copyright © GREE, Inc. All Rights Reserved.
Slide 12: Operational Overview: Summary
2. Operational Overview: Summary Review and Summary of 3Q FY21 Business Plan Review Continue to strengthen 3 - In the game business, released new title, off to a Overall earnings strong start pillars Game/entertainment - Released Assault Lily: Last Bullet, off to a strong start “Game - Made progress
Slide 13: Game business: Progress Made
2. Operational Overview: Game business Progress Made Coin consumption (App games) Topics Billions of coins ◼ Released Assault Lily: Last Bullet on 10.5 January 20, off to a strong start as 100 10.0 9.7 9.7 one of our mainstay titles 8.5 8.6 ◼ Smooth performance from first- party IP title Another Ede
Slide 14: Start of distribution of new title
2. Operational Overview: Game business Start of distribution of new title Assault Lily: Last Bullet off to a strong start Distribution started on January 20 Media mix planning Special live show featuring music from TV anime and games • Off to a strong start, reached 16th in app sales ranking • Multi
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 KNIGHTS OF SIDONIA Shoui No Kizuna In-house developed In-house developed In-house developed Released
Slide 16: Expanding and Energizing Fan Communities ①
2. Operational Overview: Game business Expanding and Energizing Fan Communities ① Energized users by adding more original content Senki Zesshou SYMPHOGEAR XD Another Eden UNLIMITED Long-form scenario Added storyline unique to the game • Added new story of "Song of Sword and • Added new chapters to s
Slide 17: Expanding and Energizing Fan Communities ②
2. Operational Overview: Game business Expanding and Energizing Fan Communities ② Energized users by collaborating with popular IP SINoALICE DanMachi IP collaboration IP collaboration • Collaboration with That Time I Got • Collaboration with STRIKE THE BLOOD Reincarnated as a Slime Note: DanMachi =
Slide 18: Further develop platform
2. Operational Overview: Live Entertainment Further develop platform Expanded contents on REALITY by adding avatar gacha offerings and hosting events etc. Avatar gacha Interactive event Awakening the Jet-Black reincarnation Valentine’s Day 2021 • Expanded lineup of avatar variations • Energized user
Slide 19: Strengthened Media Potential
2. Operational Overview: Advertising and media Strengthened Media Potential Energized communities through campaigns, etc. aumo LIMIA Held photo posting contest Held photo posting contest • Energized user community through photo • Energized user community through photo contest contest 19 Copyright ©
Slide 20: Contents
Contents 1. Financial Results Overview 2. Operational Overview 3. Appendix Copyright © GREE, Inc. All Rights Reserved.
Slide 21: 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 Another Eden Rele
Slide 22: Coin Consumption
3. Appendix Coin Consumption Billions of coins 14.6 14.0 14.0 0.4 0.5 0.4 12.3 12.3 3.8 0.3 0.2 3.8 3.9 3.5 3.4 10.5 9.7 9.7 8.5 8.6 3Q 4Q 1Q 2Q 3Q FY20 FY21 ■Game apps ■Browser games (smartphones) ■Browser games (feature phones) Note: • Excludes coin consumption from licensed titles and mainstay ti
Slide 23: 3Q FY21 Cost Structure
3. Appendix 3Q FY21 Cost Structure Billions of yen FY21 FY21 FY20 3Q QoQ YoY 2Q 3Q Rental charges 0.51 -0.02 -0.06 0.52 0.56 Labor costs 2.24 -0.05 0.03 2.29 2.21 Others 3.52 -0.15 -0.79 3.67 4.30 Cost of sales 6.26 -0.22 -0.82 6.48 7.08 Advertising 0.31 -0.38 -0.09 0.69 0.40 Commission fees 2.78 -0
Slide 24: 3Q FY21 Balance Sheet
3. Appendix 3Q FY21 Balance Sheet Billions of yen FY21 FY21 FY20 3Q QoQ YoY 2Q 3Q Current assets 107.4 3.4 8.7 104.0 98.7 Fixed assets 33.4 2.5 3.5 30.9 29.9 Total assets 140.8 5.9 12.1 134.9 128.6 Current liabilities 10.7 0.1 -0.9 10.5 11.6 Fixed liabilities 11.5 1.1 10.5 10.3 0.9 Total liabilities
Slide 25: Group Headcount
3. Appendix Group Headcount Number of employees 1,702 1,710 1,616 1,607 1,589 3Q 4Q 1Q 2Q 3Q 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 25 Copyright © GREE, Inc. All R
Slide 26: ■ 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.