Slide 1: FY2025 First Quarter Financial Results
GREE, Inc. FY2025 First Quarter Financial Results November 5, 2024 Copyright © GREE, Inc. All Rights Reserved.
Slide 2: Executive Summary
Executive Summary FY25 1Q ◼ Net sales ¥12.9 billion, operating profit -¥0.1 billion, EBITDA -¥0.1 billion Financial Results ⁃ Although performance in the Investment Business was weak, results in the Game and Overview (Consolidated) Anime Business, Metaverse Business, and DX Business surpassed expect
Slide 3: Contents
Contents 1. Financial Results Overview 2. Progress Toward Achievement of Management Plan Targets 3. Progress Made in Each Business Segment 4. Appendix Copyright © GREE, Inc. All Rights Reserved.
Slide 4: Contents
Contents 1. Financial Results Overview 2. Progress Toward Achievement of Management Plan Targets 3. Progress Made in Each Business Segment 4. Appendix Copyright © GREE, Inc. All Rights Reserved.
Slide 5: FY25 1Q Financial Results Overview
1. Financial Results Overview (Consolidated) FY25 1Q Financial Results Overview Net sales ¥12.9 billion, operating profit -¥0.1 billion, EBITDA -¥0.1 billion Ordinary profit and net income declined QoQ due to the posting of foreign exchange losses Billions of yen FY25 FY24 FY24 1Q QoQ YoY 4Q 1Q Net
Slide 6: 1Q Operating Profit Analysis
1. Financial Results Overview (Consolidated) 1Q Operating Profit Analysis Profit down QoQ, operating profit was -¥0.1 billion Billions of yen ¥1.56bn decrease 1.43 -1.17 -0.46 Operating Decrease in -0.13 profit sales Operating +0.07 profit FY24 4Q Increase in Decrease in FY25 1Q variable costs fixed
Slide 7: 1Q Cost Structure
1. Financial Results Overview (Consolidated) 1Q Cost Structure Total costs up ¥0.4 billion QoQ, to ¥13.1 billion Billions of yen FY25 FY24 FY24 Factors in change（QoQ） 1Q QoQ YoY 4Q 1Q Advertising 1.09 0.29 0.08 Increase on strengthening of promotions for Heaven Burns Red 0.80 1.01 Commission fees, e
Slide 8: Contents
Contents 1. Financial Results Overview 2. Progress Toward Achievement of Management Plan Targets 3. Progress Made in Each Business Segment 4. Appendix Copyright © GREE, Inc. All Rights Reserved.
Slide 9: Progress Toward Achievement of Management Plan Targets
Progress Toward Achievement of Management Plan Targets Senior Vice President, Chief Strategy Officer Sanku Shino Copyright © GREE, Inc. All Rights Reserved.
Slide 10: Sales and Operating Profit
2. Progress Toward Achievement of Management Plan Targets Sales and Operating Profit Sales Operating Profit QoQ -5% YoY -17% QoQ -47% YoY -51% Billions of yen Billions of yen 22.2 5.0 20.820.9 20.1 19.5 4.2 17.2 3.8 16.4 16.516.2 16.616.6 15.8 15.415.015.7 15.8 3.6 3.6 14.7 3.4 14.2 14.1 13.7 12.9 2
Slide 11: Vision for Long-term Growth
2. Progress Toward Achievement of Management Plan Targets Vision for Long-term Growth We target steady growth in core earnings from continuous growth businesses and long-term growth, taking advantage of profit upswings, from long-term investment businesses Long-term Aiming for a business structure t
Slide 12: Sales and Operating Profit (Continuous growth business)
2. Progress Toward Achievement of Management Plan Targets Sales and Operating Profit (Continuous growth business) Sales Operating Profit QoQ +8% YoY +11% QoQ -15% YoY -5% Billions of yen Billions of yen 3.3 3.4 3.3 3.4 3.6 3.5 3.4 3.63.9 2.3 2.4 2.1 2.0 2.0 2.4 2.2 2.5 2.6 3.0 2.8 3.1 0.4 0.3 0.4 0.
Slide 13: Business Conditions
2. Progress Toward Achievement of Management Plan Targets Business Conditions Sales and Operating Profit Focus Points Sales: QoQ -5% YoY -17% / Operating Profit: QoQ -47% YoY -51% Billions of yen 17.17 ◼ Profits in the Game and Anime 15.79 Business, Metaverse Business, 14.24 14.11 and DX Business su
Slide 14: Earnings Estimates (2Q FY25, excluding Investment Business)
2. Progress Toward Achievement of Management Plan Targets Earnings Estimates (2Q FY25, excluding Investment Business) Sales and Operating Profit Focus Points Sales: QoQ +8% YoY -1% / Operating Profit: QoQ +12% YoY -17% Billions of yen ◼ We expect to achieve QoQ growth in sales and profit in the Game
Slide 15: Earnings Forecast and Estimates (Full-Year FY25, excluding Investment Business)
2. Progress Toward Achievement of Management Plan Targets Earnings Forecast and Estimates (Full-Year FY25, excluding Investment Business) Sales and Operating Profit Focus Points Billions of yen Sales: YoY -1% Operating Profit: YoY -30% ◼ We have revised our forecast for the Game and Anime Business a
Slide 16: Medium-term Targets (excluding Investment Business)
2. Progress Toward Achievement of Management Plan Targets Medium-term Targets (excluding Investment Business) Sales and Operating Profit Focus Points Profit CAGR(25-27)：41% Billions of yen ◼ We target steady growth in the Metaverse Business and the DX Business and growth in the Game and Anime Busine
Slide 17: Contents
Contents 1. Financial Results Overview 2. Progress Toward Achievement of Management Plan Targets 3. Progress Made in Each Business Segment 4. Appendix Copyright © GREE, Inc. All Rights Reserved.
Slide 18: Sales and Operating Income by Segment
3. Progress Made in Each Business Segment Sales and Operating Income by Segment Billions of yen FY24 FY25 QoQ YoY 1Q 2Q 3Q 4Q 1Q Game and Sales 11.72 10.44 12.95 9.74 9.06 -0.67 -7% -2.65 -23% Anime Operating 1.56 1.35 2.60 1.42 0.75 -0.67 -47% -0.82 -52% profit Sales 1.96 1.79 1.61 1.88 1.96 0.07 +
Slide 19: Earnings Estimates and Forecast by Segment
3. Progress Made in Each Business Segment Earnings Estimates and Forecast by Segment Billions of yen FY24 FY25 2Q FY25 Full-year FY25 1Q Full-year Estimates QoQ Forecast YoY Result Result Sales 9.77 0.71 +8% 43.3 -1.5 -3% 9.06 44.8 Game and Anime Operating profit 0.92 0.17 +23% 3.8 -3.1 -45% 0.75 6.
Slide 20: FY25 Full-Year Earnings Forecast Progress (as of 1Q FY25)
3. Progress Made in Each Business Segment FY25 Full-Year Earnings Forecast Progress (as of 1Q FY25) 25％ 50％ 75％ Sales 21% ¥9.1bn ¥43.3bn Game and Anime Operating profit 20% ¥0.7bn ¥3.8bn Sales 21% ¥2.0bn ¥9.1bn Metaverse Operating profit 29% ¥0.1bn ¥0.5bn Sales 23% ¥1.8bn ¥7.5bn DX Operating profit
Slide 21: Game and Anime Business
Game and Anime Business Senior Vice President Yuta Maeda Copyright © GREE, Inc. All Rights Reserved.
Slide 22: Sales and Operating Profit
3. Progress Made in Each Business Segment: Game and Anime Business Sales and Operating Profit Sales Operating Profit QoQ -7% YoY -23% QoQ -47% YoY -52% Billions of yen Billions of yen 17.316.9 3.6 16.3 15.8 3.3 13.013.2 13.1 12.9 12.8 13.0 2.8 12.512.6 11.9 12.2 2.6 2.6 11.4 11.7 2.5 11.3 10.4 2.3 9
Slide 23: Summary of the Game and Anime Business
3. Progress Made in Each Business Segment: Game and Anime Business Summary of the Game and Anime Business Sales and Operating Profit Focus Points Sales: QoQ -7% YoY -23% / Operating Profit: QoQ -47% YoY -52% Billions of yen ◼ While Heaven Burns Red has gotten 12.95 20.1% off to a strong start as an
Slide 24: Live Service Game Business
3. Progress Made in Each Business Segment: Game and Anime Business Live Service Game Business Sales and Operating Profit Focus Points Sales: QoQ -9% YoY -27% / Operating Profit: QoQ -110% YoY -109% Billions of yen ◼ While Heaven Burns Red has gotten 9.84 off to a strong start as an out- 8.66 license
Slide 25: Licensed Game Business
3. Progress Made in Each Business Segment: Game and Anime Business Licensed Game Business Sales and Operating Profit Focus Points Sales: QoQ +18% YoY -27% / Operating Profit: QoQ +160% YoY +160% Billions of yen 0.54 ◼ Sales and profit rose QoQ on strong 0.50 performance from overseas licensed 0.46 4
Slide 26: Pipeline
3. Progress Made in Each Business Segment: Game and Anime Business Pipeline 4 titles (including console games) in planning and development stages ～FY24 (Released) FY25 FY26 FY27～ Confidential Heaven Burns Red Puella Magi Madoka Magica Magia Exedra Console/1st-party IP (Live service/joint IP, release
Slide 27: Earnings Estimates (2Q FY25)
3. Progress Made in Each Business Segment: Game and Anime Business Earnings Estimates (2Q FY25) Sales and Operating Profit Focus Points Sales: QoQ +8% YoY -6% / Operating Profit: QoQ +23% YoY -31% Billions of yen 12.95 ◼ We expect QoQ growth in sales and profit on the impact of events and 10.44 anni
Slide 28: Earnings Forecast and Estimates (Full-Year FY25)
3. Progress Made in Each Business Segment: Game and Anime Business Earnings Forecast and Estimates (Full-Year FY25) Sales and Operating Profit Focus Points Billions of yen Sales: YoY -8% Operating Profit: YoY -38% 53.7 ◼ We factor in contribution from new titles conservatively and expect 44.8 43.3 s
Slide 29: Medium-term Targets
3. Progress Made in Each Business Segment: Game and Anime Business Medium-term Targets Sales and Operating Profit Focus Points Profit CAGR(25-27)：9% Billions of yen ◼ We position the Game and Anime 53.7 Business as a long-term investment business, targeting long-term 44.8 43.2 44.7 43.3 growth; unti
Slide 30: Metaverse Business
Metaverse Business Senior Vice President Eiji Araki Copyright © GREE, Inc. All Rights Reserved.
Slide 31: Sales and Operating Profit
3. Progress Made in Each Business Segment: Metaverse Business Sales and Operating Profit Sales Operating Profit QoQ +4% YoY -0% QoQ +17% YoY +24% Billions of yen Billions of yen 2.0 2.0 0.1 1.9 0.1 0.1 0.1 0.1 1.8 1.8 0.1 1.7 0.1 1.6 1.6 0.1 1.5 1.5 0.0 1.3 1.2 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
Slide 32: Summary of the Metaverse Business
3. Progress Made in Each Business Segment: Metaverse Business Summary of the Metaverse Business Sales and Operating Profit Focus Points Sales: QoQ +4% YoY -0% / Operating Profit: QoQ +17% YoY +24% Billions of yen ◼ Strong results in the platform 1.96 1.96 1.88 business and the VTuber business 1.79 1
Slide 33: Platform Business (REALITY, Inc.)
3. Progress Made in Each Business Segment: Metaverse Business Platform Business (REALITY, Inc.) Sales and Operating Profit Focus Points Sales: QoQ +9% YoY +1% / Operating Profit: QoQ -9% YoY -12% Billions of yen ◼ Continued to strengthen alliances 1.79 1.81 with livestreaming talent agencies, 1.65 1
Slide 34: VTuber Business (REALITY Studios, inc.)
3. Progress Made in Each Business Segment: Metaverse Business VTuber Business (REALITY Studios, inc.) Sales and Operating Profit Focus Points Sales: QoQ -10% YoY +71% / Operating Profit: QoQ +¥0.06bn YoY -¥0.04bn Billions of yen ◼ Continued growth on a steady 0.16 0.14 increase in the size of our ta
Slide 35: Earnings Estimates (2Q FY25)
3. Progress Made in Each Business Segment: Metaverse Business Earnings Estimates (2Q FY25) Sales and Operating Profit Focus Points Sales: QoQ +12% YoY +23% / Operating Profit: QoQ -86% YoY +¥0.14bn Billions of yen 2.20 ◼ We expect sales growth in the platform business on growth in 1.96 1.88 avatar a
Slide 36: Earnings Forecast and Estimates (Full-Year FY25)
3. Progress Made in Each Business Segment: Metaverse Business Earnings Forecast and Estimates (Full-Year FY25) Sales and Operating Profit Focus Points Billions of yen Sales: YoY +26% Operating Profit: YoY +183% ◼ We expect to reach our forecast targets 9.1 9.1 7.2 6.7 0.5 0.6 0.2 -0.3 Full-year resu
Slide 37: Medium-term Targets
3. Progress Made in Each Business Segment: Metaverse Business Medium-term Targets Sales and Operating Profit Focus Points Profit CAGR(25-27)：158% Billions of yen 17.9 ◼ We forecast continued steady growth in the Platform Business and the VTuber Business; expect 12.8 operating profit of ¥3.3bn in FY2
Slide 38: DX Business
DX Business Vice President Kazuhisa Adachi Copyright © GREE, Inc. All Rights Reserved.
Slide 39: Sales and Operating Profit
3. Progress Made in Each Business Segment: DX Business Sales and Operating Profit Sales Operating Profit QoQ -0% YoY +10% QoQ -5% YoY +9% Billions of yen Billions of yen 1.8 0.3 1.8 1.7 1.8 1.8 1.7 1.7 1.7 0.3 1.6 1.6 0.3 1.6 1.6 1.5 1.5 1.5 1.5 1.5 0.3 0.3 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.1 0.1 0.
Slide 40: Summary of the DX Business
3. Progress Made in Each Business Segment: DX Business Summary of the DX Business Sales and Operating Profit Focus Points Sales: QoQ -0% YoY +10% / Operating Profit: QoQ -5% YoY +9% Billions of yen ◼ 1Q results were in line with our 1.83 forecast, with sales up 10% YoY 1.75 1.75 1.66 and steady QoQ
Slide 41: Marketing DX Business
3. Progress Made in Each Business Segment: DX Business Marketing DX Business Sales and Operating Profit Focus Points Sales: QoQ +4% YoY +50% / Operating Profit: QoQ -3% YoY +84% Billions of yen 0.89 ◼ Secured new projects on pace with 0.87 0.84 our target 0.70 ◼ The marketing DX business 0.58 22.3%
Slide 42: Social DX Business
3. Progress Made in Each Business Segment: DX Business Social DX Business Sales and Operating Profit Focus Points Sales: QoQ -4% YoY -10% / Operating Profit: QoQ -49% YoY -45% Billions of yen 0.44 ◼ Earnings in the social DX business 0.41 0.39 were also on target 0.37 0.38 ◼ We are currently investi
Slide 43: aumo, Inc.
3. Progress Made in Each Business Segment: DX Business aumo, Inc. Sales and Operating Profit Focus Points Sales: QoQ -9% YoY -21% / Operating Profit: QoQ -¥0.00bn YoY -206% Billions of yen ◼ The aumo business continues to 0.30 face difficulties 0.28 0.27 9.7% 0.24 ◼ aumo’s mainstay SaaS product is 7
Slide 44: Earnings Estimates (2Q FY25)
3. Progress Made in Each Business Segment: DX Business Earnings Estimates (2Q FY25) Sales and Operating Profit Focus Points Sales: QoQ -4% YoY +1% / Operating Profit: QoQ -19% YoY -29% Billions of yen 1.83 ◼ In 2Q, we will continue to invest in 1.75 1.75 1.66 1.68 the transition to a recurring- 16.1
Slide 45: Earnings Forecast and Estimates (Full-Year FY25)
3. Progress Made in Each Business Segment: DX Business Earnings Forecast and Estimates (Full-Year FY25) Sales and Operating Profit Focus Points Sales: YoY +8% Billions of yen Operating Profit: YoY -19% 7.5 ◼ We have designated FY2025 as a 7.4 6.8 period of investment aimed at 6.7 reigniting growth 1
Slide 46: Medium-term Targets
3. Progress Made in Each Business Segment: DX Business Medium-term Targets Sales and Operating Profit Focus Points Profit CAGR(25-27)：31% Billions of yen 11.0 ◼ In FY2025-2026, we will continue to invest in the transition from a 8.9 project-based business structure to a recurring-earnings-type 7.5 b
Slide 47: Investment Business
Investment Business Senior Vice President, Chief Financial Officer Toshiki Oya Copyright © GREE, Inc. All Rights Reserved.
Slide 48: Sales and Operating Profit
3. Progress Made in Each Business Segment: Investment Business Sales and Operating Profit Sales Operating Profit QoQ -70% YoY -58% QoQ -648% YoY -¥0.66bn Billions of yen Billions of yen 4.1 3.4 2.8 3.1 2.9 2.4 2.3 1.8 1.3 1.1 1.0 0.8 0.8 0.8 0.8 0.6 0.5 0.5 0.4 0.5 0.5 0.4 0.4 0.3 0.2 0.2 0.2 0.1 0.
Slide 49: Summary of the Investment Business
3. Progress Made in Each Business Segment: Investment Business Summary of the Investment Business Sales and Operating Profit Focus Points Sales: QoQ -70% YoY -58% / Operating Profit: QoQ -648% YoY -¥0.66bn Billions of yen ◼ We posted a quarterly loss in 1Q 0.84 0.81 due to revaluation of some of our
Slide 50: Business Structure and Basic Plan
3. Progress Made in Each Business Segment: Investment Business Business Structure and Basic Plan Business Structure Basic plan for the Investment Business ◼ Continuous, staggered investment timing Fund investment ✓ Make continuous, steady investments regardless of management business market conditio
Slide 51: Earnings Structure
3. Progress Made in Each Business Segment: Investment Business Earnings Structure Fund investment management business (GP) LP investment Stable medium-to-long- Achieved Contingency Earnings upside term earnings, albeit with upon exit fees some near-term volatility Achieved Dividends, Resulting from
Slide 52: Rise in unrealized value
3. Progress Made in Each Business Segment: Investment Business Summary of the Investment Business Quarterly change in operational investment securities investment valuation Investment status in 1Q Billions of yen Book value Valuation of investments ◼ Investment in 4 VC funds in Japan 35.3 and the Un
Slide 53: Status of Investment Results
3. Progress Made in Each Business Segment: Investment Business Status of Investment Results Staggering investments over long periods of time results in staggered timing of investment return phases and high investment returns Valuation of investments by investment period Net multiples and IRR Billion
Slide 54: Fund Investment Management Business (GP)
3. Progress Made in Each Business Segment: Investment Business Fund Investment Management Business (GP) Sales and Operating Profit Focus Points Sales: QoQ +1% YoY -11% / Operating Profit: QoQ -13% YoY -30% Billions of yen 0.33 ◼ Secured stable management fee 0.30 revenue through continuous 0.28 form
Slide 55: Fund Investment Management Business (GP)
3. Progress Made in Each Business Segment: Investment Business Fund Investment Management Business (GP) Total AUM of Fund Investment Management Business Focus Points Based on total commitment Billions of yen ◼ Total commitment, on which 49.1 50.2 management fee income is based, 47.4 48.0 46.6 has re
Slide 56: Contents
Contents 1. Financial Results Overview 2. Progress Toward Achievement of Management Plan Targets 3. Progress Made in Each Business Segment 4. Appendix Copyright © GREE, Inc. All Rights Reserved.
Slide 57: Overview of Total AUM (Based on Investee Valuation)
4. Appendix: Investment Business Overview of Total AUM (Based on Investee Valuation) Total AUM: 81.1 billion, down ¥3.3 billion QoQ on revaluation etc. Billions of yen 84.4 +1.5 -0.5 -4.3 81.1 Fund Increase by Decrease by distributions Revaluation, Investment capital call etc. Startup Investment Oth
Slide 58: 1Q FY25 Cost Structure
4. Appendix 1Q FY25 Cost Structure Billions of yen FY25 FY24 FY24 1Q QoQ YoY 4Q 1Q Rental charges 0.53 0.02 -0.05 0.51 0.58 Labor costs 2.32 -0.01 -0.09 2.32 2.41 Others 3.84 0.18 -0.19 3.66 4.04 Cost of sales 6.69 0.19 -0.33 6.50 7.02 Advertising 1.09 0.29 0.08 0.80 1.01 Commission fees 2.17 -0.27
Slide 59: 1Q FY25 Balance Sheet
4. Appendix 1Q FY25 Balance Sheet Billions of yen FY25 FY24 FY24 1Q QoQ YoY 4Q 1Q Current assets 104.4 -7.8 -3.0 112.3 107.5 Non-current assets 16.2 -0.3 -0.7 16.5 16.9 Total assets 120.7 -8.1 -3.7 128.8 124.4 Current liabilities 17.8 2.8 -1.9 15.0 19.7 Non-current liabilities 12.1 -6.1 -0.1 18.2 12
Slide 60: Group Headcount
4. Appendix Group Headcount Number of employees 1,667 1,640 1,641 1,610 1,597 806 784 771 787 836 176 176 145 161 156 412 413 429 428 354 15 17 18 17 16 157 154 154 157 145 101 96 93 91 90 1Q 2Q 3Q 4Q 1Q FY24 FY25 Game and Anime Metaverse DX Investment Common Others Notes: ● Figures for the DX Busin
Slide 61: Sustainability
4. Appendix Sustainability GREE Group is continuously working to develop the Internet industry and solve various social issues. Please see our corporate website for more information. Solving social issues Helping to create a Building a safe and through the Internet diverse society secure Internet so
Slide 62: Additional Information Regarding Business Segment Classifications
4. Appendix Additional Information Regarding Business Segment Classifications Segment classification Subsegment names Main subsidiaries and details Browser games GREE, Inc. Long-term Live Service Game Business WFS, Inc., Pokelabo, Inc., parts of GREE Entertainment, Inc. Game and Excluding investment
Slide 63: 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.