Slide 1: Financial Results for the Fourth Quarter of FY Ended June 30, 2012
GREE, Inc. Financial Results for the Fourth Quarter of the Fiscal Year Ended June 30, 2012 August 14, 2012 (Revised: August 24, 2012) Copyright © GREE, Copyright Inc. All Rights © 2004-2007 Reserved. GREE,Inc. All Rights Reserved.
Slide 2: Revision to Business Strategy: Japan, p.20
This document contains a partial revision to the FY2012 4Q Presentation Materials announced on August 14 (underlined below). Revision: “Business Strategy: Japan,” p.20 (Before) Numerous in-house and co-branded games planned based on major IP (After) Numerous projects based on major IP planned, inclu
Slide 3: Contents
Contents FY2012 Fourth Quarter Business Results Business Strategy for the Fiscal Year Ending June 30, 2013 (FY2013) Copyright © GREE, Inc. All Rights Reserved.
Slide 4: FY2012 Fourth Quarter Business Results
FY2012 Fourth Quarter Business Results Copyright © GREE, Inc. All Rights Reserved.
Slide 5: FY2012 Fourth Quarter Highlights
FY2012 Fourth Quarter Highlights Global launch of GREE Platform Launched GREE Platform globally, enabling distribution of games in 169 countries (*1) Through Funzio acquisition, secured excellent Progress of global creative talent and development and operational expansion expertise behind hit so
Slide 6: FY2012 Fourth Quarter and Full-Year Financial Results (Consolidated)
FY2012 Fourth Quarter and Full-Year Financial Results (Consolidated) Millions of yen ※ FY2012 YoY change 4Q FY2012 YoY change 3Q FY2012 QoQ change Net sales 158,231 +147% 40,080 +90% 46,189 -13% Operating profit 82,729 +166% 18,996 +94% 24,549 -23% Ordinary profit 81,935 +166% 18,439 +90% 24,505 -25
Slide 7: Net Sales & Operating Profit (Consolidated)
Net Sales & Operating Profit (Consolidated) Millions of yen 50,000 46,189 45,000 41,529 40,080 40,000 35,000 30,432 30,000 24,549 25,000 22,535 21,093 20,000 18,996 16,372 16,646 14,302 15,000 12,410 9,789 10,000 8,199 6,221 6,924 5,000 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2011 2011年6月期 FY2012 2012年6月期 売上高 N
Slide 8: Sales by Business (Consolidated)
Sales by Business (Consolidated) Paid Services Sales Advertisement Sales Millions of yen Millions of yen 50,000 4,000 3,636 45,000 42,882 3,500 3,306 3,238 40,000 38,290 36,444 2,928 3,000 35,000 2,706 2,466 30,000 2,500 2,363 27,503 2,262 25,000 2,000 20,000 18,387 1,500 15,000 13,906 11,938 10,147
Slide 9: FY2012 Fourth Quarter Operating Expenses (Consolidated)
FY2012 Fourth Quarter Operating Expenses (Consolidated) Millions of yen FY2012 YoY change 4Q FY2012 YoY change 3Q FY2012 QoQ change Cost of sales: 13,099 +138% 4,571 +122% 3,678 +24% Rental charges 5,963 +120% 1,606 +52% 2,099 -23% Labor costs 4,289 +151% 1,709 +190% 979 +75% Others 2,846 +160% 1,25
Slide 10: FY2012 Fourth Quarter Balance Sheet (Consolidated)
FY2012 Fourth Quarter Balance Sheet (Consolidated) Millions of yen End-4Q FY2012 End-4Q FY2011 YoY change End-3Q FY2012 QoQ change Current assets 122,287 47,607 +157% 102,657 +19% Cash and cash equivalents 72,759 22,254 +227% 51,662 +41% Receivables 28,238 16,944 +67% 32,993 -14% Others 21,288 8,407
Slide 11: FY2012 Fourth Quarter Cash Flow Statement (Consolidated)
FY2012 Fourth Quarter Cash Flow Statement (Consolidated) Millions of yen End-4Q FY2012 End-4Q FY2011 YoY change Net cash provided by operating activities 59,578 15,678 +280% Net cash provided by investment activities -24,488 -3,272 +648% Net cash provided by financing activities 15,479 -1,090 - Cash
Slide 12: Dividends
Dividends Year-end dividend forecast:¥30 per share ■ In FY2012, GREE’s consolidated net sales rose 146.6% and net income rose 163.0% YoY. We therefore plan to strengthen measures to return value to shareholders. ■ We recognize shareholder returns as an important aspect of our business and will pay d
Slide 13: Initiatives to Improve User Environment
Initiatives to Improve User Environment Activities of the Social Game Platform Contact Conference Initiative Date announced Guidelines for in-game notifications Clear June 22 guidance Improve transparency by providing appropriate notifications regarding gacha function terms and content Guidelines fo
Slide 14: Initiatives to Improve User Environment
Initiatives to Improve User Environment Formation of committee to guide the establishment of the Social Gaming Environment Quality Association (tentative name) Social Gaming Environment Quality Association Social Game Platform Contact Conference (tentative name) Main activities (current plan) Establ
Slide 15: FY2012 Fourth Quarter Operational Review
FY2012 Fourth Quarter Operational Review Launched GREE Platform globally in GREE’s first exhibit at E3, the largest May 2012 game show in the world App Portal App Portal English Japanese Revamped UI to create new worldwide GREE’s booth featured playable demos mobile social gaming platform with u
Slide 16: FY2012 Fourth Quarter Operational Review
FY2012 Fourth Quarter Operational Review Launched several in-house titles globally Net sales from global (ex-Japan) market Unit: Indexed with Jan.-Mar. 2012 net sales as 1 2.0 1.5 1.0 0.5 0.0 Jan.-Mar., 2012 2012年1-3月期 2012年4-6月期 Apr.-Jun., 2012 *Total ex-Japan net sales of GREE and Funzio Launche
Slide 17: FY2012 Fourth Quarter Operational Review
FY2012 Fourth Quarter Operational Review Secured major IP New game design ©K S/S・T・P ©G・A Copyright (Japan Only) Formed partnership with Namco Bandai Launched new game Tomodachi Dogs Games Inc. with a view to developing (English title Puffy Puppy) as a smartphone business globally. In the first
Slide 18: Business Strategy for the Fiscal Year Ending June 30, 2013 (FY2013)
Business Strategy for the Fiscal Year Ending June 30, 2013 (FY2013) Copyright © GREE, Inc. All Rights Reserved.
Slide 19: FY2013 Earnings Forecasts
FY2013 earnings forecasts Millions of yen FY2013 FY2012 (A)/(B) (forecast) (A) (actual) (B) Change 195,000 +23.2% Net sales 158,231 ～205,000 ～+29.6% 74,000 (10.6%) Operating income 82,729 ～84,000 ～+1.5% 74,000 (9.7%) Ordinary income 81,935 ～84,000 ～+2.5% 46,000 (4.1%) Net income 47,967 ～52,000 ～+8.4
Slide 20: FY2013 Business Strategy
FY2013 Business Strategy Japan Europe, North America, Asia Improve game Improve KPIs through introduction of Improve ARPDAU and other KPIs KPIs new game models, etc. based on understanding of the market characteristics of each region Introduce hit Expand lineup of in-house and co- Expand lin
Slide 21: FY2013 Business Strategy: Japan
FY2013 Business Strategy: Japan FY2013 Q1 progress July-Aug. coin consumption during first five days of month (Unit: Indexed so that 1 = coin consumption during first five days of July) Coin consumption recovering in August Company resources that had been 110 focused on global launch of GREE 1.1
Slide 22: FY2013 Business Strategy: Japan
FY2013 Business Strategy: Japan FY2013 Major IP titles planned (selected titles) Numerous projects based on major IP planned, Sample lineup of games planned through co-production including in-house and co-branded games in partnership with Namco Bandai Games Inc. Tales of Card Evolve ©MUTSUMI INOMATA
Slide 23: FY2013 Business Strategy: Japan
FY2013 Business Strategy: Japan FY2013 New games planned (selected titles) Expand lineup beyond card battle games into new smartphone compatible game genres Animal Days MONPLA SMASH Wacky Motors ※ MODE STYLE Soul Island ※ Launched in July 2012 21 Copyright © GREE, Inc. All Rights Reserved.
Slide 24: FY2013 Business Strategy: Japan
FY2013 Business Strategy: Japan Improve CSR activity 1. Use CSR to accelerate our efforts to make the world a better place through the power of the Internet. Support the Internet technical community and academic research Promote the use of the Internet in economic, political, educational, and he
Slide 25: FY2012 CSR Activity Report
FY2012 CSR Activity Report* Fostering young engineers and creators Sponsorship of SamurAI coding, the Information Processing Society of Japan’s International AI Programming contest for young engineers Support for the education of young programmers through a business/education partnership with Va
Slide 26: FY2013 Business Strategy: Europe, North America, Asia
FY2013 Business Strategy: Europe, North America, Asia Steady growth through two main game genres Growth in simulation games Expansion of card battle games Developing and preparing to launch further titles in addition to the card battle games already offered Release Android versions in addition t
Slide 27: FY2013 Business Strategy: Europe, North America, Asia
FY2013 Business Strategy: Europe, North America, Asia Expanding lineup and gaining promotional expertise Success on iPhone and iPad Success through effective promotions No. of apps No. of Company in top 100 companies 6 or more Zynga(※2) 1 Electronic Arts(※3) TeamLava 4 or more GREE(※4) 5 Top Grossin
Slide 28: FY2013 Business Strategy: Europe, North America, Asia
FY2013 Business Strategy: Europe, North America, Asia Net sales from global (ex-Japan) market Developing business in Asia, Europe markets Unit: Indexed so that June net sales= 1 1.5 1 GREE Platform support for 14 0.5 languages planned 0 6月 Jun 2012 7月2012 July *Total ex-Japan net sales of GREE and F
Slide 29: Appendix
Appendix Copyright © GREE, Inc. All Rights Reserved.
Slide 30: SNS + Social Games
SNS + Social Games 会Users 員 SNS Social games Diary My Apps / Comments Community / MB Growth in Purchase of Page Views items Advertisement Sales Paid Service Sales GREE 28 Copyright © GREE, Inc. All Rights Reserved.
Slide 31: In-house social games
In-house social games “Tsuri-Sta” “Odoriko Clinoppe” “Tanken Doliland” “Hacöniwa” “Mon-Pla” “Pirate Kingdom Columbus” Feeling Fantastic! Play Fishing One-of-a-kind pet you can keep in New exploration type card game Easy gardening experience A Blockbuster! Monster Adventure Great Pirates Battle Game!
Slide 32: Wide Variety of Revenue Sources
Wide Variety of Revenue Sources GREE Mobile screen 広告 Advertisement 純広告（バナー/テキスト） - -Original ads (banners/text) - タイアップ広告 - Tie-up ads 広告メディア収入 Advertisement へ貢献 Sales ソーシャルゲーム Social games -- Free-to-play SNSと連動した無料ゲームgames linked to social network --内製ゲーム他、多様なラインナップ Rich lineup includes in-house
Slide 33: Improving Safety & Security
Improving Safety & Security 24時間365日の GREE patrol system runs パトロール体制 GREE 24 hours a day, 365 days a year A 24 hour, 365 days per year patrol service begun in November 2006. EMA GREE Patrol Centers were established in Tokyo, Hokkaido, and Okinawa, employing about (Content Evaluation and Monitor
Slide 34: Improving Safety & Security: Educational Activities On- and Off-site
Improving Safety & Security: Educational Activities On- and Off-site Educational activities on-site From February 2009, GREE joined the “Motto Good Net” initiative of the Safe Net-Making Promotion Conference, and maintains an official “Motto Good Net” account in GREE. From July 2011, links were
Slide 35: Making the world a better place through the power of the Internet
Making the world a better place through the power of the Internet. ■ This document includes some forecasts, which are based on currently available information. The authenticity of the information is not guaranteed. Actual performance may differ due to various factors, etc. ■ When producing this docu