Gree Holdings.inc. · TSE:3632
Gree Holdings.inc — Q3 FY2020 Earnings Presentation
30 slides from Gree Holdings.inc's earnings presentation, May 14, 2020
Slide 1: FY2020 Third Quarter Financial Results
GREE, Inc. FY2020 Third Quarter Financial Results May 14, 2020 Copyright © GREE, Inc. All Rights Reserved.
Slide 2: Executive Summary
Executive Summary Financial ◼ Net Sales ¥15.4 billion, Operating Income ¥1.2 billion, EBITDA ¥1.4 Results billion Overview ⁃ Operating income surpassed our forecast ◼ Strong overseas sales of titles based on first-party IP ⁃ Boosted earnings potential by strengthening global operations systems for A
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: FY20 3Q Financial Results Overview
1. Financial Results Overview (Consolidated) FY20 3Q Financial Results Overview Net sales ¥15.4 billion , operating income ¥1.2 billion , EBITDA ¥1.4 billion Billions of yen FY20 FY20 FY19 3Q QoQ YoY 2Q 3Q Net sales 15.44 -1.00 -2.20 16.44 17.64 Operating 1.24 0.42 -0.31 0.81 1.55 income Ordinary 1.
Slide 6: Net Sales, EBITDA, and Operating Income
1. Financial Results Overview (Consolidated) Net Sales, EBITDA, and Operating Income Operating income ratio up 3.0ppt to 8.0% Billions of yen 20.0 25.0% 17.6 17.4 16.4 15.8 15.4 10.0 12.5% 8.8% 7.7% 8.0% 7.4% 5.0% 1.6 1.8 1.5 1.3 1.2 1.3 1.1 1.2 1.4 0.8 0.0 0.0% 3Q 4Q 1Q 2Q 3Q FY19 FY20 Net Sales Op
Slide 7: 3Q Operating Income Analysis
1. Financial Results Overview (Consolidated) 3Q Operating Income Analysis Net sales declined, but sales of first-party IP title were strong and operating income rose ¥0.4 billion to ¥1.2 billion Billions of yen ¥0.42bn increase +0.39 1.24 0.81 -1.00 +1.04 Operating Operating income income FY20 2Q FY
Slide 8: FY20 3Q Cost Structure
1. Financial Results Overview (Consolidated) FY20 3Q Cost Structure Total costs down ¥1.4 billion QoQ, to ¥14.2 billion Billions of yen FY20 FY20 FY19 Factors in change (QoQ) 3Q QoQ YoY 2Q 3Q Advertising 0.40 -0.35 -0.72 Reduction due to efficiency 0.76 1.12 Commission 4.87 -0.48 -0.31 Decrease due
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 Details of repurchase Class of stock to be GREE common stock repurchased Up to 5 million shares Total number of shares 2.2% of the
Slide 10: Dividend Forecast
1. Financial Results Overview (Consolidated) Dividend Forecast Planned dividend of ¥10 per share Dividend Distribution Policy Maintaining a dividend on DOE of 2.0%, consolidated dividend payout ratio of 20% or higher FY20 Forecast FY19 Results Dividend record date June 30, 2020 June 30, 2019 Per-sha
Slide 11: Contents
Contents 1. Financial Results Overview 2. Operational Overview 3. Appendix Copyright © GREE, Inc. All Rights Reserved.
Slide 12: Review and Summary of 3Q FY20 Business Plan
2. Operational Overview: Summary Review and Summary of 3Q FY20 Business Plan Review Continue to - In the games business, made progress in overseas Overall strengthen 3 distribution and boosted the earning potential of first- earnings pillars party IP title - Boosted earnings potential by strengtheni
Slide 13: Development pipeline
2. Operational Overview: Game business Development pipeline Postponed release of title scheduled for FY20 until FY21 or later Scheduled for release in FY20 FY21 and onward Already In Planning/ released development development 1 - 4 6 - ・One strong third-party IP title already ・Number of titles in th
Slide 14: Title in development (scheduled for release in FY21 or later)
2. Operational Overview: Game business Title in development (scheduled for release in FY21 or later) Assault Lilly: Last Bullet • Assault Lilly: Last Bullet, GREE’s third title developed in cooperation with Bushiroad, is currently in pre-registration. • Planning a wide-ranging media mix including an
Slide 15: Progress Made
2. Operational Overview: Game business Progress Made Coin consumption (App games) Topics Billions of coins ◼ Another Eden 12.0 11.0 10.9 - Boosted earnings potential by 十億 10.3 10.0 9.7 strengthening global operations - Launched distribution in 29 countries/territories 6.0 ◼ Coin consumption trends
Slide 16: Strengthening earnings potential of overseas distribution
2. Operational Overview: Game business Strengthening earnings potential of overseas distribution Boosted earnings potential of Another Eden by strengthening global operations Overseas sales Strengthening global operations 1.4x 2Q 3Q • Expanded content by strengthening global operations • Expanded di
Slide 17: Expanding overseas distribution to include more countries/territories
2. Operational Overview: Game business Expanding overseas distribution to include more countries/territories Began prelaunch promotion of global distribution of SINoALICE • Global distribution of SINoALICE scheduled for release on July 1 (Self Distribution) • By distribution in North America and Eur
Slide 18: Overseas Distribution Plan
2. Operational Overview: Game business Overseas Distribution Plan Global distribution of SINoALICE scheduled for release on July 1 Distribution region North Hong Kong, Mainland Japan America Europe Taiwan, etc. China Agreement Released Released Released Released signed DanMachi Release scheduled Agr
Slide 19: Expanding and Energizing Fan Communities (1)
2. Operational Overview: Game business Expanding and Energizing Fan Communities (1) Increasing user loyalty through interactive broadcasts and IP collaborations SINoALICE DanMachi Interactive broadcast IP collaboration • Establishment of measures to energize • Collaboration with Goblin Slayer commun
Slide 20: Expanding and Energizing Fan Communities (2)
2. Operational Overview: Game business Expanding and Energizing Fan Communities (2) Energized users by adding new scenario and an updated main storyline by the original creator Senki Zesshou SYMPHOGEAR XD UNLIMITED Shoumetsu Toshi Scenario by the original creator Final chapter of main storyline • Ad
Slide 21: Distribution of licensed title
2. Operational Overview: Game business Distribution of licensed title Released traditional Chinese version of One-Punch Man, reached 1st in sales ranking • Game app based on anime TV show targeting adult viewers, released by Gamenow Technology Ltd. • Japanese version in development targeting release
Slide 22: Growing Distribution Platform
2. Operational Overview: Live Entertainment business Growing Distribution Platform Expanding content on REALITY platform through original programs and events Original program Interactive event Buion!! Event where participants received unique items • Original music program featuring VTubers • Energiz
Slide 23: Strengthened Media Potential
2. Operational Overview: Advertising and Media business Strengthened Media Potential Energized user communities through campaigns, etc. LIMIA aumo Held posting contest Restaurant support project • Energized user community through a photo • Supported restaurants by posting info on contest restaurants
Slide 24: Contents
Contents 1. Financial Results Overview 2. Operational Overview 3. Appendix Copyright © GREE, Inc. All Rights Reserved.
Slide 25: Title in development (scheduled for release in FY21 or later)
3. Appendix Title in development (scheduled for release in FY21 or later) Heaven Burns Red • Development in cooperation with Key, VISUAL ARTS that has produced content for many hit games and animations including AIR, CLANNAD, Little Busters!, and Angel Beats! © VISUAL ARTS / Key © WFS 25 Copyright ©
Slide 26: Coin Consumption
3. Appendix Coin Consumption Billions of coins 17.1 16.4 0.8 0.7 14.8 14.7 14.0 0.6 0.5 4.9 0.5 4.5 4.3 3.9 3.8 11.4 11.2 10.0 10.3 9.7 3Q 4Q 1Q 2Q 3Q FY19 FY20 ■ Game apps ■ Browser games (smartphones) ■ Browser games (feature phones) 26 Copyright © GREE, Inc. All Rights Reserved.
Slide 27: 3Q FY20 Cost Structure
3. Appendix 3Q FY20 Cost Structure Billions of yen FY20 FY20 FY19 3Q QoQ YoY 2Q 3Q Rental charges 0.56 -0.02 -0.07 0.59 0.64 Labor costs 2.21 0.01 -0.18 2.20 2.39 Others 4.30 -0.47 -0.49 4.78 4.80 Cost of sales 7.08 -0.49 -0.75 7.56 7.83 Advertising 0.40 -0.35 -0.72 0.76 1.12 Commission 3.05 -0.21 -
Slide 28: 3Q FY20 Balance Sheet
3. Appendix 3Q FY20 Balance Sheet Billions of yen FY20 FY20 FY19 3Q QoQ YoY 2Q 3Q Current assets 98.7 0.4 2.4 98.4 96.3 Fixed assets 29.9 0.2 -0.4 29.7 30.3 Total assets 128.6 0.6 2.1 128.1 126.6 Current liabilities 11.6 -1.0 -0.6 12.6 12.1 Fixed liabilities 0.9 0.0 -0.0 0.9 1.0 Total liabilities 12
Slide 29: Group Headcount
3. Appendix Group Headcount Number of employees 1,746 1,729 1,712 1,702 1,693 3Q 4Q 1Q 2Q 3Q FY19 FY20 Note: • Includes non-consolidated group companies; as of the end of each quarter 29 Copyright © GREE, Inc. All Rights Reserved.
Slide 30: This document includes forecasts, which are based on currently available information. Actual performance may
■ 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.