Gree Holdings.inc. · TSE:3632
Gree Holdings.inc — Q1 FY2020 Earnings Presentation
28 slides from Gree Holdings.inc's earnings presentation, Oct 30, 2019
Slide 1: FY2020 First Quarter Financial Results
GREE, Inc. FY2020 First Quarter Financial Results October 30, 2019 Copyright © GREE, Inc. All Rights Reserved.
Slide 2: Executive Summary
Executive Summary Financial Net Sales ¥15.8 billion, Operating Income ¥1.2 billion, EBITDA ¥1.3 Results billion Overview ⁃ Operating income surpassed forecast Made steady progress in developing new title ⁃ Began pre-registration for partner-distributed title Made progress in overseas distribut
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: FY20 1Q Financial Results Overview
1. Financial Results Overview (Consolidated) FY20 1Q Financial Results Overview Net Sales ¥15.8 billion , operating income ¥1.2 billion and EBITDA ¥1.3 billion Billions of yen FY20 FY19 FY19 1Q QoQ YoY 4Q 1Q Net sales 15.80 -1.61 -2.36 17.41 18.16 Operating income 1.18 -0.16 -0.44 1.34 1.62 Ordinary
Slide 6: Net Sales, EBITDA, and Operating Income
1. Financial Results Overview (Consolidated) Net Sales, EBITDA, and Operating Income Operating income strong Billions of yen 20.0 25.0% 18.2 17.7 17.6 17.4 15.8 10.0 12.5% 8.9% 8.8% 7.7% 7.4% 5.4% 1.6 1.9 1.6 1.8 1.3 1.5 1.0 1.2 1.2 1.3 0.0 0.0% 1Q 2Q 3Q 4Q 1Q FY19 FY20 Net Sales Operating income EB
Slide 7: 1Q Operating Income Analysis
1. Financial Results Overview (Consolidated) 1Q Operating Income Analysis Operating income remained steady owing to cost control measures despite a reactive decline in net sales after anniversary events ￥0.16bn decrease Billions of yen 1.34 -1.61 +0.17 1.18 +1.28 Operating Operating Income Income FY
Slide 8: FY20 1Q Cost Structure
1. Financial Results Overview (Consolidated) FY20 1Q Cost Structure Total costs down ¥1.5 billion QoQ, to ¥14.6 billion Billions of yen FY20 FY19 FY19 Factors in change (QoQ) 1Q QoQ YoY 4Q 1Q Advertising 0.65 -0.53 -0.63 Reactive decline in sales after anniversary events 1.18 1.28 Commission 4.74 -0
Slide 9: Investment Securities Held
1. Financial Results Overview (Consolidated) Investment Securities Held Upside Investment examples ¥36bn Investment in shares Listed in July 2019 ¥25bn ¥19bn ¥17bn VC investment shares shares VC VC Book Assessed value Book Assessed value Potential value at time of value at time of upside raising cap
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 FY20
2. Operational Overview: Summary Review and Summary of 1Q FY20 Business Plan Review Continue to - Moved forward with new development in the game Overall strengthen 3 business and made progress in overseas distribution earnings pillars - Made progress in developing new games, began Game/entertainment
Slide 12: Game business Development pipeline
2. Operational Overview: Game business Development pipeline Began pre-registration for partner-distributed title Scheduled for release in FY20 FY21 and onward Already In Planning/ released development Development - 2 4 -6 ・Two strong 3rd-party IP titles ・Number of titles in the scheduled for release
Slide 13: Game business Progress Made: Domestic coin consumption
2. Operational Overview: Game business Progress Made Domestic coin consumption (App games) Topics Billions of coins Anniversary events wound down in 12.0 11.0 10.9 4Q 十億 10.8 10.5 10.0 Stable operation of existing titles - Added storylines - Conducted collaborations - Anime tie-ins 6.0 0.0 1Q 2Q
Slide 14: Expanding and Energizing Fan Communities ①
2. Operational Overview: Game business Expanding and Energizing Fan Communities ① Energizing users with adding main storylines and IP collaboration Another Eden SINoALICE Added main storyline Held collaboration event • Began distribution of part two middle • Held Code Geass: Lelouch of the Rebellion
Slide 15: Expanding and Energizing Fan Communities ②
2. Operational Overview: Game business Expanding and Energizing Fan Communities ② Expanded fan base through anime tie-ins Senki Zesshou SYMPHOGEAR XD DanMachi UNLIMITED Created anime tie-in Created anime tie-in • Released anime tie-in contents immediately • Released contents to energize fan base aft
Slide 16: Expanding and Energizing Fan Communities ③
2. Operational Overview: Game business Expanding and Energizing Fan Communities ③ Energizing fan communities through anniversary campaigns Shoumetsu Toshi In Love with NEWS Over 10 million downloads Group formation anniversary event • Held campaign to celebrate downloads • Added special voice and he
Slide 17: Expansion of Overseas Distribution
2. Operational Overview: Game business Expansion of Overseas Distribution Strengthening and increasing profitability by launching DanMachi in Europe • Launched in 27 countries and territories in Europe (October) Notes: • DanMachi = DanMachi - MEMORIA FREESE © Fujino Omori-SB Creative Corp./Danmachi2
Slide 18: Overseas Distribution Plans
2. Operational Overview: Game business Overseas Distribution Plans Launched DanMachi in 27 countries and territories in Europe Distribution region North Hong Kong, Mainland Japan America Europe Taiwan, etc. China Released Agreement Released Released 10/24 Released signed Agreement Released Preparing
Slide 19: Live Entertainment business: Growing Distribution Platform
2. Operational Overview: Live Entertainment business Growing Distribution Platform Expanded REALITY content library by adding original programs Held content expansion week Held large-scale event Held REALITY FESTIVAL 3 Hosted Kenchikuo contest • Streamed original program in which many • A wide range
Slide 20: Strengthened Media Potential
2. Operational Overview: Advertising and Media business Strengthened Media Potential Energized user communities through campaign, etc. 「LIMIA」 「aumo」 Held posting campaign Held posting campaign • Energized communication between user • Energized user community by Photo campaign 20 Copyright © GREE, I
Slide 21: 3. Appendix
Contents 1. Financial Results Overview 2. Operational Overview 3. Appendix Copyright © GREE, Inc. All Rights Reserved.
Slide 22: General Meeting of Shareholders
3. Appendix General Meeting of Shareholders Held an virtual general meeting of shareholders, thereby improving communication with shareholders General meeting of Shareholders shareholders Live streaming Observation Introductions Messages and comments 22 Copyright © GREE, Inc. All Rights Reserved.
Slide 23: CSR Activities
3. Appendix CSR Activities Continuing educational activities aimed at creating a safe and stable online society Presentation titled, “What You Should be Afraid of on the Internet” Soul Negotiator Educational presentations given at Recommended by the Tokyo Metropolitan educational institutions Govern
Slide 24: Coin Consumption
3. Appendix Coin Consumption Billions of coins 18.1 17.3 17.1 1.1 16.4 1.0 0.8 0.7 14.8 5.5 0.6 5.3 4.9 4.5 4.3 11.4 11.1 11.4 11.2 10.0 1Q 2Q 3Q 4Q 1Q FY19 FY20 ■ Game apps ■ Browser games (smartphones) ■ Browser games (feature phones) 24 Copyright © GREE, Inc. All Rights Reserved.
Slide 25: 1Q FY20 Cost Structure
3. Appendix 1Q FY20 Cost Structure Billions of yen FY20 FY19 FY19 1Q QoQ YoY 4Q 1Q Rental charges 0.54 -0.04 -0.15 0.58 0.69 Labor costs 2.31 0.04 0.01 2.27 2.30 Others 4.25 -0.17 -0.61 4.43 4.87 Cost of sales 7.11 -0.16 -0.76 7.27 7.86 Advertising 0.65 -0.53 -0.63 1.18 1.28 Commission fees 3.10 -0.
Slide 26: 1Q FY20 Balance Sheet
3. Appendix 1Q FY20 Balance Sheet Billions of yen FY20 FY19 FY19 1Q QoQ YoY 4Q 1Q Current assets 94.7 0.2 -1.2 94.5 95.9 Fixed assets 29.0 1.0 0.2 28.0 28.8 Total assets 123.7 1.2 -1.0 122.5 124.7 Current liabilities 11.0 0.1 -0.7 10.9 11.7 Fixed liabilities 0.9 -0.0 -0.1 0.9 1.0 Total liabilities 1
Slide 27: Group Headcount
3. Appendix Group Headcount Number of employees 1,746 1,729 1,661 1,701 1,693 1Q 2Q 3Q 4Q 1Q FY19 FY20 Note: • Includes non-consolidated group companies; as of the end of each quarter 27 Copyright © GREE, Inc. All Rights Reserved.
Slide 28: Forward-looking statements notice
■ 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.