Gree Holdings.inc. · TSE:3632
Gree Holdings.inc — Q2 FY2022 Earnings Presentation
27 slides from Gree Holdings.inc's earnings presentation, Feb 7, 2022
Slide 1: FY2022 Second Quarter Financial Results
GREE, Inc. FY2022 Second Quarter Financial Results February 7, 2022 Copyright © GREE, Inc. All Rights Reserved.
Slide 2: Executive Summary
Executive Summary ◼ Net sales ¥19.5 billion, operating income ¥2.5 billion, EBITDA ¥2.7 Financial billion Results Overview ⁃ Internet and Entertainment Business operating income of ¥2.5 billion surpassed our forecast on contribution from a new title ◼ Released new title, off to a strong start ⁃ Star
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 2Q Financial Results Overview
1. Financial Results Overview (Consolidated) FY22 2Q Financial Results Overview Net sales ¥19.5 billion, operating income ¥2.5 billion, EBITDA ¥2.7 billion Billions of yen FY22 FY22 FY21 2Q QoQ YoY 1Q 2Q Net sales 19.51 5.84 2.97 13.67 16.54 Operating income 2.52 0.97 -0.83 1.55 3.36 Ordinary income
Slide 6: Net Sales and Operating Income
1. Financial Results Overview (Consolidated) Net Sales and Operating Income Sales and income up QoQ in the Internet and Entertainment Business Net sales Operating income Billions of yen Billions of yen 19.51 0.37 3.56 16.54 16.24 19.14 3.36 14.72 2.86 13.67 1.84 2.33 2.80 0.78 2.52 13.95 1.34 13.68
Slide 7: Operating Income Analysis
1. Financial Results Overview (Consolidated) Operating Income Analysis Internet and Entertainment Business sales up sharply on strong start from new title. This boosted variable costs including commission fees, resulting in operating income of ¥2.5 billion. Billions of yen ¥0.97bn increase ＋6.81 -0.
Slide 8: Cost Structure
1. Financial Results Overview (Consolidated) Cost Structure Total costs up ¥4.9 billion QoQ, to ¥17.0 billion Billions of yen FY22 FY22 FY21 Factors in change（QoQ） 2Q QoQ YoY 1Q 2Q Advertising 0.99 0.18 0.30 Increase on higher ad costs for game apps 0.82 0.69 Commission Fees, etc. 7.73 4.38 3.37 Inc
Slide 9: Stock Repurchase and Cancellation
1. Financial Results Overview (Consolidated) Stock Repurchase and Cancellation Implemented stock repurchase and cancellation to increase shareholder returns Stock repurchase Period of stock repurchase October 1, 2021 – December 10, 2022 Total number of shares repurchased 35.00 million shares 16.8% o
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 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: That Time I Got Reincarnated as a Slime: ISEKAI Memories
2. Operational Overview: Game That Time I Got Reincarnated as a Slime: ISEKAI Memories Off to a strong start, aiming for long-term operation and contribution to profit through additional content, etc. Started distribution on October 28, 2021 Off to a strong start ◼ Achieved high sales ranking ◼ 4 Mo
Slide 13: Development Status of New Titles
2. Operational Overview: Game Development Status of New Titles Made progress in developing new titles; aiming to generate more hits Heaven Burns Red EXTASY VISUAL SHOCK Scheduled release on February 10, 2022 Pre-registration started November 29, 2021 • Development in cooperation with Key, VISUAL • T
Slide 14: 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 That Time I Got Reincarnated as a Slime: Shoui No Kizuna ISEKAI Memories Heaven Burns Red In-house developed collaboration In-house developed coll
Slide 15: Expanding and Energizing Fan Communities
2. Operational Overview: Game Expanding and Energizing Fan Communities Energized users by collaborating with popular IP Another Eden SINoALICE IP collaboration IP collaboration • Collaboration with Chrono Cross • Collaboration with Black Butler: Book of the Atlantic ©WFS Developed by WRIGHT FLYER ST
Slide 16: Further Developed Platform
2. Operational Overview: Metaverse Further Developed Platform Made progress with REALITY, adding features and expanding global distribution New features Global distribution Video chat 12 languages supported ◼ Supported languages Japanese Chinese (traditional) English Chinese (traditional) Thai Frenc
Slide 17: Strengthened Media Potential
2. Operational Overview: Advertising and Media Strengthened Media Potential Promoted further expansion of content by strengthening cooperation with local tourism associations, etc. Collaboration with Kamakura Collaboration with City Tourist Association Ryukyu Asteeda • Expanded content through colla
Slide 18: Entered the SaaS Business
2. Operational Overview: Advertising and Media Entered the SaaS Business Newly launched aumo My Business, a marketing SaaS for physical stores that leverages the media power of aumo aumo My Business Number of participating stores Stores and facilities 10,000 Provides one-stop stores ◼ Functions prov
Slide 19: Overview of Total Assets Under Management (AUM)
2. Operational Overview: Investment and Incubation Overview of Total Assets Under Management (AUM) Total AUM: 66.9 billion yen Remained flat QoQ due to investments and distributions Total AUM Main investments Based on investee valuation Billions of yen Billions of yen 67.1 +0.7 -0.7 -0.1 66.9 Invest
Slide 20: Strengthening Investment
2. Operational Overview: Investment and Incubation Strengthening Investment Direct investment balance (valuation of investments): 45.6 billion yen QoQ increase in unrealized value Quarterly change in direct investment balance Investment status in 2Q (operational investment securities + investment se
Slide 21: Status of GREE LP Fund and CVC Investment Results
2. Operational Overview: Investment and Incubation Status of GREE LP Fund and CVC Investment Results Achieved high long-term returns on GREE LP Fund and CVC investments Valuation of investments by investment period Net multiples, IRR (operational investment securities) Performance Benchmarking of Do
Slide 22: 3. Appendix
Contents 1. Financial Results Overview 2. Operational Overview 3. Appendix Copyright © GREE, Inc. All Rights Reserved.
Slide 23: Analysis of Operational Investment Securities
3. Appendix Analysis of Operational Investment Securities Billions of yen 25.3 ＋0.7 -0.4 -2.5 23.1 12.9 Investment Declines from Other factors Valuation & gains earnings 10.1 translation distributions and Valuation & adjustments sales translation adjustments 12.3 13.0 Amount Amount invested invested
Slide 24: 2Q FY22 Cost Structure
3. Appendix 2Q FY22 Cost Structure Billions of yen FY22 FY22 FY21 2Q QoQ YoY 1Q 2Q Rental charges 0.55 0.04 0.03 0.51 0.52 Labor costs 2.35 0.07 0.06 2.27 2.29 Others 5.53 2.38 17.9 3.15 3.74 Cost of sales 8.43 2.50 1.88 5.93 6.55 Advertising 0.99 0.18 0.30 0.82 0.69 Commission fees 4.46 2.10 1.68 2
Slide 25: 2Q FY22 Balance Sheet
3. Appendix 2Q FY22 Balance Sheet Billions of yen FY22 FY22 FY21 2Q QoQ YoY 1Q 2Q Current assets 94.9 -35.8 -28.3 130.7 123.2 Fixed assets 15.1 4.0 3.4 11.1 11.7 Total assets 110.0 -31.8 -24.9 141.8 134.9 Current liabilities 13.6 1.1 3.1 12.6 10.5 Fixed liabilities 9.3 -0.7 -1.1 10.0 10.3 Total liab
Slide 26: Group Headcount
3. Appendix Group Headcount Number of employees 1,607 1,589 1,603 1,604 1,595 2Q 3Q 4Q 1Q 2Q 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.