Fact Sheet
Marvelous Inc.

First Quarter of Fiscal Year Ending March 31, 2015
Stock Exchange Listing: First Section of Tokyo Stock Exchange Stock Code: 7844 URL: http://www.marv.jp/Contact: Corporate Planning Department TEL: +81-3-5769-7447

In line with our management philosophy of the "'Amazement' and 'Emotion' to the world with New Entertainment,"
Marvelous Inc. is a comprehensive entertainment company which develops online games, game software, games foramusement consoles, audio & visual software, musical performances, and other products and services.
Summary of Consolidated Quarterly financial information

Net Sales

1Q

2Q(3 months)(6 months)

4,758(Unit: million yen)

3Q(full-year)-

Operating Income

Net Sales

4Q(9 months)-

First Quarter (three months) Financial Results (Unit: million yen)

3,200

20,000-2,400

15,000Operating Income

655

-

-

-

Ordinary Income

649

-

-

-

Net Income
Net Income Per Share
(yen)

424-

-

-

5,000

7.93-

-

-

0

10,30010,000Results of Operations

1,210

1,600

4,410

4,758

1Q
前期of
第1Q FYprevious

1Q
当期
under
第1Q
review

849
800

First-half
上期予想(forecast)--Second-half
下期予想(forecast)-Ordinary Income
In the period under review, the entertainment industry saw the smartphone gamemarket expand on the back of rapid smartphone proliferation. In particular, App Storeand Google Play experienced especially fast growth. Amid the growing global app
market, the in-app purchase business has established firm roots in Japan centered ongames. In the market for home-use games, with the migration to the next hardware
generation and with fewer titles coming to market, new business formats have been
increasing in number, such as download-versions for home-use game machines andfree-to-play related sales. In the market for arcade games, a range of games for young
children have emerged, including a growing number of buzz-worthy games using new
consoles and boards. In the audio & visual sectors, although pressure on the software
market continues, expectations have been strong for the future of the live
entertainment business with its successful use of digital contents.
Under these circumstances, the Group has been operating as a comprehensive
entertainment provider deploying a "multi-content, multi-use, and multi-device"
strategy to deliver diverse entertainment content in all business segments and on avariety of devices. Leveraging its robust intellectual property, the Group has been
driving its strategy in the three key areas of branding, alliances, and global business,and is working to offer content that generates "buzz" among today's users while
endeavoring to enhance its services.
As a result, the Group's net sales in the first quarter (April 1, 2014 to June 30, 2014)
marked 4,758 million yen (up 7.9% compared with the same period of the previousyear), with operating income of 655 million yen (down 22.8% compared with the same
period of the previous year), ordinary income of 649 million yen (down 25.9%compared with the same period of the previous year), and net income of 424 million
yen (down 20.2% compared with the same period of the previous year).

2,590

14,700

0

1Q
前期
of
第1Q
previous FY

655

1Q
当期
under
第1Q
reviewFirst-half
上期予想(forecast)-

Net Income
2,000

3,200

1,551

2,585
1,500

2,400

1,205

1,600

876
800
0

Second-half
下期予想(forecast)
-

1Q
前期
of
第1Q
previous FY

1,000531

649

500

1Q
当期
under
第1Q
reviewFirst-half
上期予想(forecast)--Second-half
下期予想(forecast)-

Percentage of Net Sales by Segment

01Q
前期of
第1Q
previous FY

723
424

1Q
当期
under
第1Q
reviewFirst-half
上期予想(forecast)--Second-half
下期予想(forecast)-

Percentage of Operating Income by Segment

17.3%

24.7%
42.9%
26.9%

55.8%

32.4%
OnlineGame Business
オンライン事業

オンライン事業
OnlineGame Business

コンシューマ事業
ConsumerGame Business

コンシューマ事業
ConsumerGame Business

Audio& Visual Business
音楽映像事業

音楽映像事業
Audio& Visual Business1Segment Information (Performance Summary)Online Game Business

Consumer Game Business

Audio & Visual BusinessLeading Titles
Logres of Swords and Sorcery:
Goddess of AncientBrowser Sangokushi©Marvelous Inc. Aiming Inc.

©Marvelous Inc.
©2014 Marvelous Inc. All Rights Reserved.
SUPER MARIO items © 2014 Nintendo.

Remarks about Performance
The online game business saw "Browser Sangokushi" continue to enjoy its
deep-rooted popularity and strong performance, now five years after theinitiation of service, while other classic titles have been developing almost asplanned. In mobile browser games, "Ikki-Tousen Burst Fight" continued to dowell two years after the service start. Even considering the market shift tosmartphone apps, mobile browser games of the Company have been
showing strong performances in existing titles. As is the case in online games,
existing titles remain at the center of our efforts. In native apps, "Logres of
Swords and Sorcery: Goddess of Ancient," released in December 2013, hasbeen marking solid sales increases, with significant contributions to earnings
in the period under review. Steps will be taken to further strengthen
promotion in the time ahead. On the other hand, for three titles withuncertain future earnings prospects (including one title geared at overseasmarkets) development has been terminated. The preparatory development
cost has been amortized in a lump-sum. The Company will further foster andstrengthen titles with successful performance records, and in thedevelopment of new titles, concentrate its resources on a selection thatmeets rigorous criteria.
As a result, segment net sales totaled 2,656 million yen (up 36.6% comparedwith the same period of the previous year), with segment operating incomeof 395 million yen (up 117.9% compared with the same period of theprevious year).

Net Sales (Unit: million yen)
12,0001 0 ,5 0 0
8,877

9,000
6,000
3,000

2 ,6 5 6
1,9440

1Q

Previous FY
FY(actual) under review(actual)3,960 5 ,2 0 0First-halfPrevious FY
FY(actual) under review(forecast)

1,200
4000395
181
1Q

Previous FY
FY(actual) under review(actual)

670742

218
First-halfPrevious FY
FY(actual) under review(forecast)

1 0 ,3 0 0
7,630

9,0000Previous FY
FY(actual) under review(forecast)

1 ,4 4 0

3,763

Full-year

1,677 1 ,2 7 8
1QPrevious FY
FY(actual) under review(actual)First-halfPrevious FY
FY(actual) under review(forecast)1,6000Full-year

1Q298

Previous FY
FY(actual) under review(actual)First-halfPrevious FY
FY(actual) under review(forecast)

3,825

3,6000Full-year

788 8 2 51Q

Previous FY
FY(actual) under review(actual)

4 ,2 0 0

1,861
1 ,6 0 0

First-halfPrevious FY
FY(actual) under review(forecast)

1,200

Full-year

Previous FY
FY(actual) under review(forecast)

921 9 2 0900300

Previous FYFY(actual) under review(forecast)©TAKESHI KONOMI／SHUEISHA,NAS,THE NEW
PRINCE OF TENNIS PROJECT©TAKESHI KONOMI／SHUEISHA,MUSICAL THE
PRINCE OF TENNIS PRODUCTION COMMITTEE

4,800600750

MUSICAL THE PRINCE OF TENNIS

The audio & visual production sector of the Audio & Visual business segment
implemented the audio-visual product commercialization of the TV animation
production "HAPPINESSCHARGE PRETTY CURE!" of the "PRETTY CURE" series.
Additionally, the TV animation product "My Teen Romantic Comedy SNAFU,"
which was lead-managed by the Company and broadcast last year, continued
to generate solid revenues from secondary usage including overseas program
sales and distribution.
The stage production division marked a total 66 performances of "MUSICAL
THE PRINCE OF TENNIS," accompanied by a release of one related DVD.
Additionally, a DVD version of "Musical HAKUOKI HAKU-MYU LIVE" wasproduced based on the performances of last year. Sales have been favorable,
along with repeat sales of DVDs related to "Stage Yowamushi Pedal."As a result, segment net sales totaled 825 million yen (up 4.7% comparedwith the same period of the previous year), with segment operating incomeof 228 million yen (up 24.1% compared with the same period of the previousyear).

Previous FY
FY(actual) under review(forecast)

1,273739©TOEI ANIMATION. ALL RIGHTS RESERVED

1,2002 ,5 2 0
2,268

2,400

“PRETTY CURE” series

2,400

3 ,5 0 03,200800
Previous FY
FY(actual) under review(forecast)©2014 Pokémon.
©1995-2014 Nintendo/Creatures Inc./GAME FREAK inc.
Developed by T-ARTS and MARV12,0006,000

Full-year

Pokémon TRETTA

At the Company's sales sector of the Consumer Game Business segment,
no new title releases were reported in the period under review. Moreover,due in part also to the reaction after the concentration of repeat sales on
the year-earlier period, a difference compared with the year earlier periodarises from the shift in the timing of sales launches for new titles.
The amusement division, in addition to the amusement console forchildren "Pokémon TRETTA," initiated service for "PUZZLE & DRAGONS Z
Tamer Battle" on June 26, 2014 as a new model using the IP of GungHo
Online Entertainment, Inc.
As a result, segment net sales totaled 1,278 million yen (down 23.8%
compared with the same period of the previous year), with segment
operating income of 298 million yen (down 59.6% compared with the sameperiod of the previous year).

3,000

Operating Income (Unit: million yen)
1,600

800

“BOKUJO MONOGATARI”
series0183 2 2 8
1QPrevious FY
FY(actual) under review(actual)350 3 4 0

First-halfPrevious FY
FY(actual) under review(forecast)

Full-year

Previous FY
FY(actual) under review(forecast)2

Transition of Performance / Financial Indices / Transition of Financial Data
■Former MMV ■Former AQI ■Marvelous[Consolidated Statement of Income](Unit: million yen)

2010.3
Net Sales
Gross Operating Income
Operating Income
Ordinary Income
Net Income

2011.32012.3Former MMV

8,284

6,965

Former AQI

7,197

7,239

Former MMV

677

1,740

Former AQI

2,586

3,644

Former MMV-1,668202

Former AQI
Former MMV

58

1,070

-1,725

147

63

1,041

Former AQI
Former MMV-1,623131

58537

Former AQI

10,4232013.32014.3

17,5792015.3 1Q

20,330Total Assets
Current Liabilities
Long‐Term Liabilities
Net Assets
Shareholders’ Equity

20,330

4,758

4,491

8,116

9,946

3,006
3,000

2,329

17,579

2,725

2,000
15,000

1,044

2,329

3,006

10,000

1,025

2,325

3,041

1,070 1,044
10,423

655
649

1,000

58 2028,284 6,965
7,197 7,239

02010.3

5,000

3,533

1,919

1,882

2011.32012.32013.32014.3

1,919

1,882

-1,000424-2,00002010.32011.32012.32013.3-1,6682014.3(Unit: million yen)

2010.3Fixed Assets

4,000

25,00020,000[Consolidated Balance Sheet]

Current Assets

Operating Income (million yen)

Net Sales (million yen)

2011.32012.3Former MMV

3,889

3,271

Former AQI

6,377

7,231

Former MMV

823820Former AQI

1,403

1,003

Former MMV

4,713

4,092

Former AQI

7,780

8,235

Former MMV

4,447

3,496

Former AQI

1,186

1,320

Former MMV

72

271

Former AQI

169

35

Former MMV

193

325

Former AQI

6,424

6,878

Former MMV

193

325

Former AQI

6,417

6,878

11,932

2013.32014.3

12,593

Ordinary Income (million yen)

2015.3 1Q

14,58314,085Net Income (million yen)

4,000

4,000

1,734

2,748

2,233

2,730

3,000

3,000

2,325

2,000

13,667

15,341

16,8162,000

16,815

1,041 1,025
1,000

4,361

4,570

4,840

5,089

1,000

63 1472010.3

202

7654

64

-1,0009,102

10,694

11,921

11,661-2,0009,102

10,694

11,921

11,661[Cash Flow Satement]

2011.32012.32013.32010.32011.3

-210

1,360

Operating activities

Former AQI

-193

2,904

Cash flows from

Former MMV-22-246

Investing activities

Former AQI-598-2,762

Cash flows from

Former MMV

5-237

financing activities

Former AQI

104-216

Cash and Cash Equivalents

Former MMV

874

1,749

at End of Period

Former AQI

2,483

2,401

2012.3
1,399
435

2013.32,817-2,1302014.33,852-634

2015.3 1Q

2010.32014.32011.32012.32013.32014.3-1,000-1,725-2,000Total Assets (million yen)

-1,623

Net Assets (million yen)
11,921

12,00010,694

16,816(Unit: million yen)

Former MMV

537
58 1310

0

20,000Cash flows from

3,533

3,041

15,341

16,000

9,102

10,00013,667-8,000
12,000

8,000

-479

-975

-873

-

5,979

5,723

8,120

-

4,000

6,424
7,780
4,713

6,878

6,000

8,235

4,000

4,092

2,000

193
0

325

0
2010.32011.32012.32013.32014.32010.32011.32012.32013.32014.33

Transition of Performance / Financial Indices / Transition of Financial Data
■Former MMV ■Former AQI ■Marvelous[Per Share Indices]
2010.32011.32012.3

Net income per share

Former MMV-136.18

10.76

(yen)

Former AQI

10.76

98.73

Net assets per share

Former MMV

15.83

26.65

(yen)

Former AQI

1,180.61

1,261.95

2013.32014.31,500

150

107.62

35.90

35.21

7.93

98.73

100

170.29200.07223.025035.90

Net profit ratio (%)

2010.32012.32011.3Former MMV

8.2

25.0

Former AQI

35.9

50.3

Former MMV-20.1

2.9

Former AQI

0.8

14.8

Former MMV

-20.8

2.1

Former AQI

0.9

14.4

Former MMV

-19.6

1.9

Former AQI

0.8

7.4

2013.32014.32015.3 1Q

43.1

46.2

48.9

57.3

10.0

13.3

14.8

13.8

9.8

13.2

15.0

13.6

D/E ratio (%)

2011.3

33.9

10.9

9.3

8.9

-136.18-220.950.6

Former AQI

0.9

8.1

Former MMV

-30.2

3.4

Former AQI

0.8

13.0

Former MMV

4.1

7.9

Former AQI

82.5

83.5

Former MMV

1,099.6

559.7

6.9

1.1

Former AQI

2010.32011.32013.3

Capital ratio (%)

2014.3

20.0

-40.0

11.6

16.0

18.9

-20.0

66.6

69.7

70.9

69.4

00

Former AQI

81201

Former MMV

0.00.0Former AQI

1.3

2.9

Former MMV

0.0

0.0

Former AQI

139.3

37.5

Important matters concerning
the per share indices

26.65

66.6

82.5

2011.32012.3

14.8

69.7

70.9

2013.32014.3

13.3

14.8

10.0

0.8

2.9

0.0
2010.316.6

223.0210.0

2015.3 1Q

19.4

200.07

Operating profit ratio (%)

83.5

75.0

2011.32012.313.0

11.6

2013.32014.316.0

18.9

2013.32014.3-10.0-20.10.0-30.0

2010.315.2

7.9

5.55.02013.32014.3

-20.0

7.9

4.1

2012.3Former MMV

170.290100.02012.3Former MMV

600

15.83-150

2011.32012.32013.32014.3

ROE (%)

50.0

Dividend payout ratio (%)

2014.3300[Return to shareholders]

DOE (%)

2013.3-100

ROA (%)

100.0

Dividend (million yen)

2012.360.0

2010.3

Capital ratio (%)

2011.32010.3[Efficiency & Security]

ROA (%)

900-5080.0

ROE (%)

35.21

10.7602010.3

Ordinary profit ratio (%)

1,261.95
1,180.61

218.09[Profitability]

Operating profit ratio (%)

107.62
1,200

10.76

Gross profit rate (%)

Net assets per share (yen)Net income per share (yen)2015.3 1Q

50.6
0.9

8.1

2010.32011.3

75.0

20.0

19.4

16.6

10.0

0.0

2015.3 1Q

323

668

694

-

6.1

6.8

6.1

-5.6

34.8

36.9

-2012.3

2013.32014.32010.32011.32012.3-10.0-100.0-20.0-150.0-250.0

3.4

0.0

-50.0

-200.00.8-220.9

-30.2

-30.0
-40.0

On October 1, 2013, the Company executed a stock split of its common shares at the ratio of 100 shares to 1. The net income per share takes into consideration the effects of this stock split.

4

Future Developments & Outlook for Current Fiscal Year / Basic Information
Future Developments & Outlook for Current Fiscal Year
Leveraging strengths in “creating and developing powerful IPs” as a “comprehensive entertainment company ”

To improve business competitiveness, the Company changed its management structure to a
CEO system on April 1, 2014. Also, the Company changed its name on July 1 from Marvelous
AQL Inc. to Marvelous Inc.
From its start in 2012 until today, the three-company integration has achieved solid progressfrom numerous measures undertaken to reap the immediate benefits of consolidation. We
now aim for a leap forward through the concerted efforts of the entire company under thebanner of "Marvelous reborn."
In its business initiatives in the fiscal year ending March 2015, the Group intends to maintainthe favorable performances of the Consumer Game Business division and the Audio & VisualBusiness division. In the Online Game Business, it will place a large effort on strengthening its
operations in best-selling titles and developing new app games.

From integration, a great leap forward to the creation of higher added value
41% increase

Net sales ¥14.4 billion
Operating income ¥1.4 billion

As a result of the aforementioned efforts, consolidated results for the next term are forecast
to achieve net sales of 25,000 million yen, operating income of 3,800 million yen, ordinary
income of 3,790 million yen, and net income of 2,274 million yen.

Profit ratio

108% increase
4.8% up¥20.3 billion¥3.0 billion
14.8%

10.0%

¥6.1billion¥5.1 ¥3.2billion billion

FY ended March 2012
(simple sum)

Progress fromintegration¥8.9billion¥7.6 ¥3.8
billion billion

FY ended
March 2014

Basic Information
Company Profile (As of July 1, 2014)

Stock Information (As of March 31, 2014)

・Established:・Capital・Officers:

・End of term: March 31
・Shares per unit: 100
・Total number of authorized shares: 90,000,000
・Total shares outstanding: 53,593,100
・Number of shareholders: 9,743

・Company Name:・Head Office:Business Activities

Marvelous Inc.
5F Shinagawa Seaside East Tower,
4-12-8 Higashi-Shinagawa, Shinagawa-ku, Tokyo, Japan
June 25, 1997
¥1,128 million
Chairman and CEO
Haruki Nakayama
President and COO
Shuichi Motoda
Executive Vice President and DeptCOO
Toshinori Aoki
Director
Yoshiaki Matsumoto
Director
Yoshiteru Yamaguchi
Director and CFO
Seiichiro KatoDirector (External)
Shunichi Nakamura
Director (External)
Ken Kutaragi
Standing Statutory Auditor
Toshio Nago
Corporate Auditor (External)
Isamu Tsuji
Corporate Auditor (External)
Iwao Nishi
Corporate Auditor (External)
Katsuhiko Nishimura

Online GameBusiness

Developing apps and games capitalizing on the Company’s proprietary
intellectual property and other companies’ promising intellectual property forvarious platforms

Consumer GameBusiness

Proposing, developing, producing and marketing game software for home game
consoles and game machines for amusement facilities

Audio & VideoBusinessProposing, producing, and marketing a variety of contents including audio and visual,as well as proposing, producing, and exhibiting stage and musical performances[Major Shareholders / Ratio of Shares Owned]
・ Hayao Nakayama
・ Amuse Capital Inc.
・ Haruki Nakayama
・ DEUTSCHE BANK AG LONDON-PB NON-TREATY CLIENTS 613
・ Amuse Capital Investment, K.K.
・ Japan Trustee Services Bank Ltd. (trust account)
・ Credit Suisse Securities (Europe) Limited PB omnibus client account・ The Master Trust Bank of Japan, Ltd. (trust account)
・ NOMURA PB NOMINIEES LIMITED OMUNIBUS-MARGIN (CASH PB)
・ BNYM SA/NV FOR BNYM CLIENT ACCOUNT MPCS JAPAN[Stock Quote] (As of August 6, 2014)18.32 %
12.50 %
10.22 %
3.68 %
3.43 %
2.68 %
2.59 %
2.33 %
2.32 %
1.68 %

・Stock Quote: 1,659 yen
・Market Cap 88,911 million yen

5