Gree Holdings.inc. · TSE:3632
Gree Holdings.inc — Q3 FY2023 Earnings Presentation
28 slides from Gree Holdings.inc's earnings presentation, May 11, 2023
Slide 1: FY2023 Third Quarter Financial Results
GREE, Inc. FY2023 Third Quarter Financial Results May 11, 2023 Copyright © GREE, Inc. All Rights Reserved.
Slide 2: Executive Summary
Executive Summary ◼ Net sales ¥22.2 billion, operating income ¥4.2 billion, EBITDA Financial ¥4.3 billion Results ⁃ The Internet and Entertainment Business operating income of ¥1.8 billion surpassed our Overview forecast despite sizable upfront investments in promotional activities ⁃ Investment and
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: FY23 3Q Financial Results Overview
1. Financial Results Overview (Consolidated) FY23 3Q Financial Results Overview Net sales ¥22.2 billion, operating income ¥4.2 billion, EBITDA ¥4.3 billion Billions of yen FY23 FY23 FY22 3Q QoQ YoY 2Q 3Q Net sales 22.15 5.57 1.30 16.58 20.85 Operating income 4.22 2.49 0.64 1.73 3.58 Ordinary income
Slide 6: Net Sales and Operating Income
1. Financial Results Overview (Consolidated) Net Sales and Operating Income Sales and income rose QoQ in the Internet and Entertainment Business; Investment and Incubation Business sales and income also rose as investment funds exited large positions Internet and Entertainment Investment and Incubat
Slide 7: Operating Income Analysis
1. Financial Results Overview (Consolidated) Operating Income Analysis Internet and Entertainment Business and Investment and Incubation Business sales rose, but we conducted upfront investments targeting medium-term and long-term growth, resulting in operating income of ¥4.2 billion Billions of yen
Slide 8: Cost Structure
1. Financial Results Overview (Consolidated) Cost Structure Total costs rose ¥3.1 billion QoQ, to ¥17.9 billion as advertising costs increased, mainly on upfront investment in promotional activities for Heaven Burns Red Billions of yen FY23 FY23 FY22 Factors in change（QoQ） 3Q QoQ YoY 2Q 3Q Advertisi
Slide 9: Dividend Forecast
1. Financial Results Overview (Consolidated) Dividend Forecast Planned dividend of ¥11 per share in line with our dividend distribution policy Dividend Distribution Policy Maintain DOE of 2.0%, consolidated dividend payout ratio of 20% or higher FY23 Forecast FY22 Results Dividend record date June 3
Slide 10: Contents
Contents 1. Financial Results Overview 2. Operational Overview 3. Appendix Copyright © GREE, Inc. All Rights Reserved.
Slide 11: Internet and Entertainment Summary
2. Operational Overview: Summary 3Q review Business Plan Summary Continue to strengthen ‒ Aggressively invested in three businesses targeting strong medium-to-long- Overall 3 earnings pillars term growth ‒ Heaven Burns Red remained strong “Game engine, IP, and Internet and Entertainment ▪ Conducted
Slide 12: Strong performance from Heaven Burns Red
2. Operational Overview: Game and Anime Strong performance from Heaven Burns Red Conducted successful one-year anniversary event for Japanese version and maintained strong performance including achieving No. 1 sales ranking No. 1 sales ranking Aggressive promotion • Successful one-year anniversary e
Slide 13: Global distribution of Heaven Burns Red
2. Operational Overview: Game and Anime Global distribution of Heaven Burns Red Made progress with global distribution by starting distribution of Korean and traditional Chinese versions on February 10 • Off to a smooth start, reaching No. 1 App Store sales ranking in some countries and regions ©WFS
Slide 14: Expanding and Energizing Fan Communities
2. Operational Overview: Game and Anime Expanding and Energizing Fan Communities Energized fan community with user-participation campaigns and anniversary events That Time I Got Reincarnated as a Slime: ISEKAI Memories Assault Lily: Last Bullet Campaign celebrating over 4.5 million downloads Ran 2-y
Slide 15: Pipeline
2. Operational Overview: Game and Anime Pipeline We are planning and developing new titles based on knowhow gained from our hit titles in FY22 and plan aggressive global distribution ◼ Planning and developing multiple titles based New Titles on first-party and third-party IP ◼ Conducting aggressive
Slide 16: Content expansion and global distribution of REALITY
2. Operational Overview: Metaverse Content expansion and global distribution of REALITY Leveraged REALITY’s world functions to expand content and made progress in global distribution as user numbers in North America increased steadily Collaboration with popular IP Growth in overseas user numbers App
Slide 17: Strengthened VTuber Business
2. Operational Overview: Metaverse Strengthened VTuber Business Established VTuber talent agency FIRST STAGE PRODUCTION and conducted debut streaming of first generation of VTubers selected from a large pool of applicants Established FIRST STAGE PRODUCTION Streaming debuts VTubers debuted on March 1
Slide 18: Strengthening our B2B Metaverse Business
2. Operational Overview: Metaverse Strengthening our B2B Metaverse Business Further accelerated business growth by establishing REALITY XR cloud, Inc. to handle our B2B Metaverse Business Annual visitor traffic for Cooperation with West Japan Marketing REALITY Worlds Communications Inc. Total visito
Slide 19: Media and SaaS
2. Operational Overview: Commerce Media and SaaS Made progress in strengthening media potential by ranking among the top travel industry websites in terms of customer traffic, contributed to regional revitalization by sponsoring events with marketing SaaS aumo My Business Ranked among top travel ind
Slide 20: DX
2. Operational Overview: DX Made progress in DX collaboration with other companies, expanded scope of business Made progress on cooperation with other companies in the area of DX and leveraged data analysis technology and knowhow acquired in the field of marketing to expand the scope of our DX busin
Slide 21: Overview of Total Assets Under Management (AUM)
2. Operational Overview: Investment and Incubation Overview of Total Assets Under Management (AUM) Total AUM: ¥75.0 billion, down ¥2.4 billion QoQ on distributions etc. Total AUM Main investments Billions of yen Based on investee valuation FoF 77.3 ＋0.6 ｰ4.0 ＋1.0 75.0 FoF Increase by Decrease by Rev
Slide 22: Strengthening Investment
2. Operational Overview: Investment and Incubation Strengthening Investment Operational investment securities investment valuation of ¥29.4 billion, unrealized value remains high Quarterly change in operational investment securities investment valuation Investment status in 3Q Billions of yen Book v
Slide 23: Status of FoF and CVC Investment Results
2. Operational Overview: Investment and Incubation Status of FoF and CVC Investment Results Achieved high long-term returns on FoF and CVC investments Valuation of investments by investment period Net multiples, IRR Billions of yen Investment Results of GREE 17.7 Performance Benchmarking of Domestic
Slide 24: Contents
Contents 1. Financial Results Overview 2. Operational Overview 3. Appendix Copyright © GREE, Inc. All Rights Reserved.
Slide 25: 3Q FY23 Cost Structure
3. Appendix 3Q FY23 Cost Structure Billions of yen FY23 FY23 FY22 3Q QoQ YoY 2Q 3Q Rental charges 0.57 -0.07 0.02 0.64 0.55 Labor costs 2.30 0.07 -0.09 2.23 2.40 Others 4.74 0.29 0.03 4.45 4.71 Cost of sales 7.61 0.29 -0.04 7.32 7.65 Advertising 3.08 1.84 1.21 1.24 1.87 Commission fees 4.11 0.89 -0.
Slide 26: 3Q FY23 Balance Sheet
3. Appendix 3Q FY23 Balance Sheet Billions of yen FY23 FY23 FY22 3Q QoQ YoY 2Q 3Q Current assets 102.4 1.4 5.4 101.1 97.1 Fixed assets 17.6 2.0 1.0 15.6 16.6 Total assets 120.0 3.4 6.3 116.6 113.7 Current liabilities 16.0 1.5 0.6 14.4 15.4 Fixed liabilities 16.9 0.2 7.6 16.7 9.3 Total liabilities 32
Slide 27: Group Headcount
3. Appendix Group Headcount Number of employees 1,596 1,616 1,632 1,618 1,593 3Q 4Q 1Q 2Q 3Q FY22 FY23 Notes: ● 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.