Marvelous Inc.
Stock Code: 7844
(First Section of Tokyo Stock Exchange)

Results Briefing Materials

For the First Half of the Fiscal YearEnding March 31, 2018 (FY2018)
October 31, 2017

Contents◆ Results Summary for the First Half of FY2018◆ Overview by Segment◆ Forecast for FY2018

Copyright (c) 2017 Marvelous Inc. All rights reserved.

2

Results Summary for the First Half of FY2018

Copyright (c) 2017 Marvelous Inc. All rights reserved.

3

Income Statement Highlights
 Sales down year over year mainly due to lower sales at the Online Game Business
but profits up due to favorable results in the Consumer Game Business and Audio& Visual Business(Unit: million yen)

1Q-2Q FY2017
ActualProfit ratio

1Q-2Q FY2018
ActualProfit ratio

YoY change
Amount%Net sales

12,999-11,014--1,984

84.7%

Cost of sales

6,105-

4,877--1,227

79.9%

SG&A expenses

5,575-

4,372--1,20378.4%

1,204-

886-

-317

73.6%

Operating profit

1,317

10.1%

1,764

16.0%

446

133.9%

Non-operating income/losses

-262-

19-

282-

Ordinary profit

1,055

8.1%

1,784

16.2%

728

169.1%

Extraordinary income/losses

22-25-3114.2%

Income taxes

278-573-295

206.0%

Profit attributable to owners ofparent

799

6.1%

1,236

11.2%

437

154.7%Of which advertising expenses

Copyright (c) 2017 Marvelous Inc. All rights reserved.

4

Segment Results(Unit: million yen)
1Q-2Q FY2017

1Q-2Q FY2018

ActualActualYoY change
Amount%● Online Game

7,248

4,573-2,674

63.1%● Consumer Game

3,512

3,497-14

99.6%● Audio & Visual

2,249

2,962

713

131.7%

12,99911,014-1,984

84.7%● Online Game956

441-51546.1%● Consumer Game

359

939

580

261.5%● Audio & Visual

599

1,030

431

172.0%

1,915

2,411

496

125.9%

Adjustments & eliminations-597-646-49

108.3%

Operating profit total

1,317

1,764

446

133.9%Net sales

TotalSegment
profitTotal

Copyright (c) 2017 Marvelous Inc. All rights reserved.

Highlights◆ Online Game Business• Lower sales of main titles◆ Consumer Game Business• Favorable repeat sales of titles
launched in the previous fiscal
year and multi-platform titles◆ Audio & Visual Business• Successful stage performances• Favorable secondary-use revenue

5Quarterly Net Sales and Operating Profit(Unit: million yen)
12,000Net sales

6,000

Operating profit

10,0005,000
8,233 8,045 8,402

8,000

8,637
7,781 7,591

6,629 6,820

7,751
6,795

Net sales

6,000

4,822
1,932

4,000

0

3,000

2,503

4,758

2,000

6,192

1,475 1,486 1,376 1,464
655

1Q

1,446
1,130

1,055

793

2Q

638

3Q

4Q

1Q

FY2015

Copyright (c) 2017 Marvelous Inc. All rights reserved.

2Q

2,000

3Q

FY2016

Operating profit

6,203

4,000

4Q

1Q

2Q

1,000

708

6793QFY2017

4Q

1Q

2Q

0

FY2018

6Quarterly Sales by Segment
12,000

Unit: million yen (percentage to total sales)■Audio & Visual Business■Consumer Game Business

10,000■Online Game Business

8,233
8,000
6,629
1,019

6,000(15.4%)

4,758
4,000

825

(17.3%)

2,152

6,820
1,322(19.4%)

1,061

1,532(18.6%)

8,045
912(11.3%)

1,655
1,884(20.6%)

8,637

8,402
1,189(14.2%)

7,781(24.8%)(22.9%)

1,459

862(11.1%)

2,086

7,591
1,564(20.6%)

2,177(28.0%)

6,203
945

1,625(21.4%)(15.6%)

6,795(32.5%)(15.2%)

1,542(24.9%)

1,303(19.2%)

7,751(16.9%)

1,897
2,986

4,822(34.6%)

2,568

1,970(33.1%)(29.0%)

1,278(26.9%)

2,000
2,656

3,461

4,443(65.2%)

4,818(58.5%)

5,479(68.1%)

5,129(61.0%)

4,743(61.0%)

4,403(52.2%)

3,717(59.9%)

3,530(51.9%)

4,207(48.7%)

3,295(42.5%)

1Q

2,330(48.3%)

2Q

3Q

4Q

FY2015

Copyright (c) 2017 Marvelous Inc. All rights reserved.

1Q

2Q

3Q
FY2016

4Q

1Q

2Q

3Q
FY20174Q(29.0%)(24.1%)(27.8%)(58.0%)

1,798

1,164
1,338

(55.8%)

06,192(24.5%)

2,159(34.8%)

2,243(36.2%)

1Q

2Q
FY20187

Balance Sheet Summary(Unit: million yen)

End-March2017

End-September
2017

ChangeCurrent assets (total)

19,285

18,153-1,131

Non-current assets (total)

4,943

4,513-429

24,22822,666-1,561

7,626

6,396

-1,230Non-current liabilities (total)

62

50

-12

Total liabilities

7,688

6,446

-1,242

Total net assets

16,53916,220-319

Total assets
Current liabilities (total)

Copyright (c) 2017 Marvelous Inc. All rights reserved.

8

Overview by Segment

Copyright (c) 2017 Marvelous Inc. All rights reserved.

9

Online Game Business:
Progress Status for 1Q-2Q FY2018
Results for 1Q-2Q FY2018
 Sales and profits down due to weak performance ofthe main title “Logres of Swords and Sorcery: Goddessof Ancient”

8,000 Launched “Sengoku Night Blood” and “OSOMATSU
SAN YOKUBARI! NEET ISLAND”

956

Copyright (c) 2017 Marvelous Inc. All rights reserved.

600

4,000
441

300

2,000Title Rollouts©Marvelous Inc. Aiming Inc.

900

6,000 Decided to terminate some underperforming titles;
wrote down development costs in a lump sum(native app)

1,200

7,248

4,573

Title Performance for 2Q FY2018

Logres of Swords and Sorcery:
Goddess of Ancient(Unit: million yen)

■Net sales ■Segment profit

Sengoku Night Blood(native app)©2017 Marvelous Inc. / KADOKAWA / IDEA FACTORY

0

1Q-2Q FY2017

1Q-2Q FY2018

0OSOMATSU SAN YOKUBARI!
NEET ISLAND(native app)©Fujio Akatsuka, OSOMATSU SAN Production Committee©D-techno / Marvelous Inc.

10Online Game Business:
Initiatives Starting in 3Q FY2018
 New title development through cooperation with other manufacturers and IP
rollouts set to become major income sources
SHINOBI MASTER-SENRAN KAGURA NEW LINK-ORDINAL STRATA(native app)(native app)

Advanceregistration
started on Sep. 23

Advanceregistration
started on Aug. 1

Scheduled forlaunch in winterScheduled forlaunch in2017Ⓒ Fuji Games Inc. / Marvelous Inc.

Large-scale
joint project×Theme music: Mr. ToshI (X JAPAN)©Marvelous Inc.
©HONEY PARADE GAMES Inc.

Senjushi(native app)

Advanceregistration
started on Oct. 25
Scheduled forlaunch in winter

Joint projects withLINE Corporation©LINE Corporation ／ Marvelous Inc.

One as yet
unannounced
title indevelopment* The pipeline does not include titles underconsideration; the number of title releases does
not represent commitment by Marvelous.”

×Copyright (c) 2017 Marvelous Inc. All rights reserved.

11

Consumer Game Business:
Progress Status for 1Q-2Q FY2018
Results for 1Q-2Q FY2018

4,000

 Earnings up year over year with the improvement in profit
margin resulting from strong sales from repeat-purchases aswell as robust multi-platform titles and overseas sales(Unit: million yen)

■Net sales ■Segment profit
3,512

1,200

3,497
939

3,000900

2,000600

Title Performance for 2Q FY2018
 Released Fate/EXTELLA Nintendo Switch version for Japan, North
America, and Europe, and its PC version worldwide

359
1,000

 SENRAN KAGURA PEACH BEACH SPLASH launched in North
America and Europe
 Highly rated “Pokémon Ga-Olé,” which is currently in operation,
performed well at summer sales season events

0300

2Q FY2017
FY2017
1Q-2Q

2Q FY2018
1Q-2Q
FY20180Title Rollouts
Fate/EXTELLA(Nintendo Switch)

Releasedon Jul. 20,2017ⒸTYPE-MOON Ⓒ2017 Marvelous Inc.
Published outside Japan by XSEED Games/Marvelous USA, Inc.
and Marvelous Europe Ltd.

SENRAN KAGURA
Peach Beach Splash

Fate/EXTELLA:The Umbral Star

(PS4)

(Nintendo Switch/Windows PC)

NS version
released on
Jul. 25 in North
America & Jul.
21 in Europe

PC version
released on
Jul. 25
worldwide

Released on
Sep. 26 in North
America &Sep. 22 inEurope

NS version:ⒸTYPE-MOON Ⓒ2017 Marvelous Inc.
Published outside Japan by XSEED Games/Marvelous USA, Inc. and Marvelous Europe Ltd.
PC版：
ⒸTYPE-MOON. Ⓒ2017 Marvelous Inc. Licensed to and published by XSEED Games / Marvelous USA. Inc.

Copyright (c) 2017 Marvelous Inc. All rights reserved.

©2017 Marvelous Inc.
Licensed to and published by XSEED Games / Marvelous USA,Inc.

Pokémon Ga-Olé(Amusement)

Operation
started onJul. 7, 2016- ©2017 Pokémon. ©1995-2017 Nintendo/Creatures lnc. /GAME FREAK inc.
Developed by T-ARTS and MARV
- Pokémon is a registered trademark of Nintendo, Creatures, and Game Freak.
- Nintendo 3DS and its logo are a trademark of Nintendo.

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Consumer Game Business:
Initiatives Starting in 3Q FY2018
 Rollout of package products for major series in Japan and overseas
 Enter into the market of prize redemption games in the amusement category
BOKUJO MONOGATARIFUTAGO NO MURA +SENRAN KAGURA
Burst Re:Newal

Shinobi Reflation- SENRAN KAGURA -(Nintendo 3DS)

(PS4)(Nintendo Switch)Japan
Scheduledfor releaseon Dec. 14,
2017

Scheduled forrelease in2017©2017 Marvelous Inc.

©2017 Marvelous Inc. All Rights Reserved.

Overseas

Amusement

STORY OF SEASONS:
Trio of Towns

Scheduled forrelease on Feb.
22, 2018©2017 Marvelous Inc./HONEY PARADE GAMES Inc.

TRYPOD(Amusement)(Nintendo 3DS)

7月20日
リニューアル

Released onOct. 13 inEurope©2017 Marvelous Inc. All Rights Reserved. Licensed to andpublished by XSEED Games / Marvelous USA, Inc.
※Images are North American version.

Copyright (c) 2017 Marvelous Inc. All rights reserved.

* Patent application pending.
* Note that design and content are subject to change
without prior notice.
* The monitor is a separate option.
Prize Co-Sponsorship: © SYSTEM SERVICE CO.,LTD.
©Marvelous Inc.

Operationplanned tostart in Nov.
andthereafter

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Audio & Visual Business:
Progress Status for 1Q-2Q FY2018
Results for 1Q-2Q FY2018
 Sales and profits up because major series continued to contributeto earnings Secondary-use revenue remained favorable

3,500
2,962

2,100

 New stage productions: “JOKER GAME THE STAGE” (performed in1Q, recorded in 2Q), “B-PROJECT on STAGE OVER THE WAVE!”(performed in 2Q, to be recorded in 3Q)

1,4000 Strong secondary-use revenue both in the anime and stage
performance categories

Title Rollouts
JOKER GAME THE STAGE

DVD/BD
released on Oct.
18 (Shipment
started inSep.)©Touken Ranbu the Stage Production Committee

Copyright (c) 2017 Marvelous Inc. All rights reserved.

599600300

1Q-2Q
FY20172Q FY2017

1Q-2Q
FY20182Q FY20180B-PROJECT on STAGE
OVER the WAVE!

Publicperformancesin Jul. and Aug.
(to be recordedin 3Q)

Publicperformances inMay; DVD/BD
released on Oct.
4 (Shipmentstarted in Sep.)© Koji Yanagi, KADOKAWA／JOKER GAME ANIMATION PROJECT© JOKER GAME THE STAGE PROJECT

1,200
900700 Numerous other series productions performed

Publicperformancesin Jun. andJul.

1,030

2,249

 Highly popular “Touken Ranbu the Stage” was a driving force ofgrowth in stage performances

Touken Ranbu the Stage

1,500

2,800

Title Performance for 2Q FY2018(Unit: million yen)

■Net sales ■Segment profit©MAGES.／STAGE B-PROJECT

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Audio & Visual Business:
Initiatives Starting in 3Q FY2018
 A line-up of promising new anime productions including cross-media rollouts using original IP
 In stage performances, a steady string of public performances including the latest productions ofpopular series
Kira Kira☆Pretty CureA La Mode the movie

Anime production“SENGOKU NIGHT BLOOD”“Ensemble Stars! Extra Stage”～Judge of Knights～©2017 Marvelous Inc.,KADOKAWA,IDEA FACTORY/SENBURA PRODUCTION COMMITTEE©2018 TOUKEN RANBU HANAMARU 2 Project

Stage [Yowamushi Pedal]
the new period : Heat Up!!

Anime production“Fate/EXTRA Last Encore”

Broadcastinglaunchscheduled fornext winter©TYPE-MOON/Marvelous, Aniplex, Notes, SHAFT

Touken Ranbu the Stage

Stage MobPsycho 100

2017年

Publicperformancesin Sep. 2017(to be recordedin 3Q)© 2016 Happy Elements K.K／Ensemble Stars! STAGE PROJECT

Broadcastinglaunchscheduled forJan. 2018

Broadcastinglaunched
from Oct. 3

Releasedon Oct. 28©2017 Movie Kira Kira☆Pretty Cure A La Mode Project

TOUKEN RANBU HANAMARU 2©Wataru Watanabe (Akitashoten) 2008/Yowamushi Pedal 04 Film Partners 2017
©Wataru Watanabe (Akitashoten)／Marvelous, TOHO, TMS ENTERTAINMENT

Copyright (c) 2017 Marvelous Inc. All rights reserved.

10月公演

Publicperformancesscheduledfor Dec. 2017

Publicperformancesin Oct. 2017
©Touken Ranbu the Stage Production Committee

Publicperformancesscheduled
for Jan. 2018
© ONE, Shogakukan/Stage MobPsycho 100Project 201815

Forecast for FY2018

Copyright (c) 2017 Marvelous Inc. All rights reserved.

16

Forecast for FY2018
FY2017
Actual(Unit: million yen)

35,000

Profit ratio

0Profit ratio

Amount%29,387－30,000－613

102.1%

Operating profit

5,754

19.6%

6,000

20.0%

246

104.3%

Ordinary profit

5,810

19.8%

6,000

20.0%

190

103.3%

Profit attributable toowners of parent

4,165

14.2%

4,180

13.9%

15100.4%

売上高
Net sales

Operating profit
営業利益31,82029,387

26,441

21,0007,000

Forecast

YoY change

Net sales

28,00014,000FY201817,57910,423

20,3302,329

30,000

8,000
5,418

5,754

6,000

6,000

4,412
4,000

3,006

2,000

1,044
FY2012

10,000FY2013Copyright (c) 2017 Marvelous Inc. All rights reserved.

FY2014FY2015FY2016FY2017FY2018(Forecast)017

Thank you very much for your attention.
Inquiries
Administration Division, Corporate Planning Department
TEL: +81-3-5769-7447
FAX: +81-3-5769-7448
URL:https://corp.marv.jp

This document contains forward-looking statements which are based on information currently available to the Companyand which may change as a result of numerous factors including the macroeconomic environment and industry trends
relevant to the Company. Therefore, these forward-looking statements are made subject to certain risks and uncertainties
which could cause results including actual business performance to differ materially from those presented.

Copyright (c) 2017 Marvelous Inc. All rights reserved.

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