Fact Sheet
Marvelous Inc.

Fiscal Year Ended March 31, 2017

Stock Exchange Listing: First Section of Tokyo Stock Exchange Stock Code: 7844 URL: https://corp.marv.jp/
Contact: Administration Division, 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, amusement games,
audio & visual content, stage and musical performances, and other products and services.
(Unit: million yen)

Summary of Consolidated Quarterly financial information

Financial Results (Unit: million yen)

2Q

3Q

4Q

(3 months)(6 months)(9 months)(Full-year)

35,0006,20312,99921,636

29,38728,000Operating Income

638

1,317

3,821

5,754

21,000Ordinary Income

410

1,055

3,917

5,810

14,000Net Sales

Operating Income

Net Sales

1Q

Profit attributable to owners ofparent

303

799

2,820

4,165

7,000

Net Income Per Share (yen)

5.86

15.45

54.52

80.53

0

Results of Operations
The entertainment industry in the current fiscal year witnessed the continued disseminationof new games in the mobile games market, including the ascent of smartphone game apps
using worldwide popular IPs, which became a craze in countries around the globe andturned into unprecedented mega hits. Furthermore, virtual reality (VR) emerged as a widelydiscussed topic in Japan and overseas. In 2016, considered the Year One of VR,
manufacturers released a diversity of VR related hardware. Meanwhile, the live
entertainment market remained vibrant with continued growth in stage performances suchas musicals and theatricals.
Under these circumstances, the Group has been operating as a comprehensive
entertainment provider deploying a "multi-content, multi-use, and multi-device" strategy todeliver diverse entertainment content in all business segments and on a variety of devices.
In order to establish robust IPs, the Group has been driving its strategy in the three key
areas of branding, alliances, and global business, and is working to offer content thatgenerates "buzz" among today's users while endeavoring to enhance its services.
As a result, the Group's consolidated operating results for the current term (April 1, 2016 toMarch 31, 2017) came to net sales of 29,387 million yen (down 7.6% from the previous fiscalyear), operating income of 5,754 million yen (up 6.2% from the previous fiscal year), andordinary income of 5,810 million yen (up 11.1% from the previous fiscal year). Profit
attributable to owners of parent for the term was 4,165 million yen (up 15.6% from theprevious fiscal year).

29,387

4,800

21,636
12,999

2,400

6,203

1,200

1Q
第1四半期
(3 months)
(3か月)

2Q
第2四半期
(6(6か月)months)

第3四半期
3Q
(9months)
(9か月)

第4四半期
4Q
(Full-year)
(年累計)

0

1,317

638
1Q第1四半期(3months)
(3か月)

第2四半期
2Q
(6(6か月)months)

5,810

4,800
3,600

5,000

4,165
2,820

3,000

2,400

第1四半期
1Q
(3(3か月)months)

2,000

1,055

2Q
第2四半期
(6 months)
(6か月)

1,000
第3四半期
3Q
(9(9か月)months)

4Q
第4四半期
(Full-year)(年累計)

Percentage of Net Sales by Segment

0799

303
1Q
第1四半期
(3(3か月)months)

2Q
第2四半期
(6 months)
(6か月)

第3四半期
3Q
(9 (9か月)months)

第4四半期
4Q
(Full-year)(年累計)

Percentage of Operating Income by Segment

19.0%

23.2%
47.3%

50.2%
30.8%
オンライン事業
OnlineGame Business

第4四半期
4Q
(Full-year)
(年累計)

4,000

3,917

410

3Q
第3四半期
(9 months)(9か月)

Profit attributable to owners of parent

6,000

03,821

3,600

Ordinary Income

1,200

5,754

6,000

オンライン事業
Online Game Business

ConsumerGame Business
コンシューマ事業

ConsumerGame Business
コンシューマ事業

Audio & Visual Business
音楽映像事業

Audio& Visual Business
音楽映像事業29.5%

1

Segment Information (Performance Summary)Online Game BusinessLeading Titles

Consumer Game Business

Logres of Swords and Sorcery:
Goddess of Ancient

Fate/EXTELLA©Marvelous Inc. Aiming Inc.
©TYPE-MOON ©2016 Marvelous Inc.

Remarks about PerformanceIn the Online Game Business, efforts continued to expand the user base andrevive sales and earnings growth of "Logres of Swords and Sorcery: Goddess ofAncient" through the installation of new functions and the continued hosting ofcollaborative events as well as 3-year anniversary events, etc., marking the third
anniversary of the service start of this core title. On the other hand, the division
decided to end the title's launch in China after the original earnings expectations
were disappointed. Elsewhere, service was terminated for iOS/Android app"SMASH DRAGOON," whose dissemination started in April 2016. Likewiseterminated were titles with faltering returns and some titles in development. The
development cost was written off in a lump sum.
As a result, segment net sales totaled 14,750 million yen (down 25.3% from theprevious fiscal year) with segment operating income at 3,271 million yen (down21.8% from the previous fiscal year).

Net Sales (Unit: million yen)
5,000
4,000

3,717

3,530

3,295

3,000

Pokémon Ga-Olé

At the Company's sales sector of the Consumer Game Business segment,
Sales have been developing steadily for "BOKUJO MONOGATARI MITTSU NO
SATO NO TAISETSU NA TOMODACHI (Nintendo 3DS)," brought to market on
June 23, 2016. Likewise, "Fate/EXTELLA (PS Vita/PS4)," with sales launchedon November 10, 2016, turned into a hit product outpacing sales ofprevious products in this series by a wide margin. Moreover, "SENRANKAGURA PEACH BEACH SPLASH (PS4)," brought to market on March 16,
2017, also posted favorable sales.
At the amusement division, new machines "Dragon Quest: Monster Battle
Scanner" and "Pokémon Ga-Olé" went into operation respectively on June
23 and July 7, 2016.
As a result, segment net sales totaled 9,067 million yen (up 20.2% from theprevious fiscal year) with segment operating income of 2,042 million yen(up 102.9% from the previous fiscal year).

2,986
2,568

2,400
1,800

Touken Ranbu the Stage(Repeat performance)“Ensemble Stars! On Stage”～Take your marks!～©Touken Ranbu the Stage Production Committee©2016 Happy Elements K.K/Ensemble Stars! STAGE PROJECT©2017 Pokémon.
©1995-2017 Nintendo/Creatures lnc. /GAME FREAK inc.
Developed by T-ARTS and MARV

3,000

4,207

Audio & Visual Business1,970

The division's audio & visual production operations commercialized package
products such as TV anime "Witchy Pretty Cure!" and in July 2016 broadcasted theTV anime "QUALIDEA CODE" lead-produced by the Company. TV anime "TOUKENRANBU HANAMARU," with broadcasts continuing since October 2016, marked
soaring sales of Blu-ray and DVD products. Income from secondary uses, centeredon video dissemination in Japan and overseas, also developed favorably.
Stage production operations came out with new performances of serialized
productions, specifically "MUSICAL THE PRINCE OF TENNIS," "Stage [YowamushiPedal]," "Musical HAKUOKI," "Stage K," and "ULTRA MUSICAL Samurai Jam Bakumatsu Rock-," all with favorable results. New titles have been extraordinarily
successful. A public performance of "Touken Ranbu the Stage" in May wasfollowed by a second performance in December, while "Ensemble Stars! On Stage"
performed in June had its sequel staged in January. Blu-ray and DVD sales for bothproductions were highly favorable.
As a result, segment net sales totaled 5,607 million yen (up 23.8% from theprevious fiscal year) with segment operating income of 1,603 million yen (up22.5% from the previous fiscal year).

1,600
1,200

1,542

2,000

1,200

800

1,000600

400

001Q

2Q

3Q

4Q

Operatingincome (Unit: million yen)
2,000

800

1,200800

3Q

4Q

838

844576

1Q

782379

2Q

3Q

4Q

0123
1Q

1Q

2Q

3Q

750

300

235

4Q

612346

391

253

1500

2Q

1,459

945

450

400
200

0

1,303

600

600

4000

2Q

1,000
1,532

1,600

1Q

1,897

2,000

3Q

4Q

1Q

2Q

3Q

4Q

2

Transition of Performance / Financial Indices / Transition of Financial Data(Unit:million yen)
（単位：百万円）[Consolidated
Statement of Income]〔連結損益計算書〕
2013.32014.32015.32016.32017.3

17,57920,33026,441

31,82029,387Gross Operating Income
売上総利益

8,116

9,946

14,975

19,211

16,273Operating
営業利益 Income

2,329

4,412

5,418

Operating Income (million yen)

35,000

売上高
NetSales

3,006

Net Sales (million yen)
31,82020,3303,600

17,579

2,325

3,041

4,583

5,228

5,810

Profitattributable to
親会社株主に帰属する
ownersof parent
当期純利益

1,919

1,882

2,178

3,602

4,165

14,000

2,400

7,000

1,200

2013.3(Unit:million yen)
（単位：百万円）
2013.32014.32015.32016.32017.3

12,593

14,583

18,624

16,204

19,285

Fixed
Assets
固定資産

2,748

2,233

3,414

4,165

4,943

Total Assets
総資産15,341

16,81622,03920,37024,228

2,400

8,535

6,421

7,626

固定負債
Long-Term Liabilities

7654

52

27

62

1,200

Net
Assets
純資産

10,694

11,921

13,45013,921

16,5390

Shareholder’sEquity
自己資本

10,694（単位：百万円）(Unit:million yen)

2013.32014.32015.32016.32017.3

Cashflows from
営業活動による
Operatingactivities
キャッシュ・フロー

2,817

3,852

4,031

5,986

6,701

Cash flows from
投資活動によるInvesting activities
キャッシュ・フロー-2,130-634-2,218-2,874-3,609

財務活動による
Cashflows fromキャッシュ・フロー
Financing
activities-975-873-1,146-3,086-1,451

Cashand Cash Equivalents
現金及び現金同等物
atEnd of Period
期末残高

5,723

8,120

8,937

8,786

10,3372015.32016.32017.3

5,000

3,602

4,000

3,000

3,041
2,325

2,000

1,919

1,882

2013.32014.32,178

1,00002014.32015.32016.32017.3

Total Assets (million yen)
25,000[CashFlow Statement]〔キャッシュ・フロー計算書〕

2014.3

Profit attributable to owners of parent(million yen)
4,165

4,583

2013.3

16,5282,329

2013.32017.3

5,810

3,600

4,840

13,9042016.3

5,228

4,800

4,570

13,4502015.3

Ordinary Income (million yen)

Current
Liabilities
流動負債

11,921

2014.36,000

流動資産
Current Assets

3,006

0

0

〔連結貸借対照表〕[Consolidated
Balance Sheet]

5,754

4,412

4,800

5,754

Ordinary
経常利益Income

5,418

29,387

26,441

28,00021,0006,000

22,03920,00015,341

24,228

16,53916,00012,00010,000

8,000

5,000

4,000

0
2015.32016.32017.3

Net Assets (million yen)

20,37016,8162014.32016.320,00015,0002013.32015.32017.3

10,694

11,921

13,450 13,921

02013.32014.32015.32016.32017.33

Transition of Performance / Financial Indices / Transition of Financial Data

Net income per share (yen)[PerShare Indices]〔一株当たり指標〕
2013.32014.32015.32016.3100

2017.3

Net income per share (yen)一株当たり当期純利益（円）

35.90

35.21

40.74

68.68

80.53

Net assets per share (yen)一株当たり純資産（円）200.07223.02251.55268.84319.58350

2014.32015.32016.32017.3

35.21

40.74

46.2

48.9

56.6

60.4

55.4

Operatingprofit ratio(%)
売上高営業利益率（%）

13.3

14.8

16.7

17.0

19.6

Ordinary
profit ratio （(%)%）
売上高経常利益率

13.2

15.0

17.3

16.4

19.8

Net profit ratio (%)（%）
売上高純利益率

10.9

9.3

8.2

11.3

14.2

2013.32014.32015.32014.32015.32016.32017.3

ROE (%)

19.4

16.6

17.2

26.3

27.4

ROA (%)

16.0

18.9

23.6

24.7

26.1

Capital ratio (%)（%）
自己資本比率

69.7

70.9

61.0

68.3

68.2

D/E レシオ
ratio (%)
（%）

7.9

5.5

1.5

1.2

1.6

2014.3668

2015.3694

2016.32017.3

1,069

1,551

1,566

DOE (%)

6.8

6.1

8.4

11.5

10.2配当性向payout（%）ratio (%)
Dividend

34.8

36.9

49.1

43.7

37.30

2013.3

69.7

2015.32016.32017.3

19.6

70.9

68.3

68.2

20.0

15.0

40.0

10.0

20.0

5.0

0.0

0.0
2013.32014.32015.32016.32017.3

ROE(%)

13.3

2013.314.8

2014.316.7

17.0

2015.32016.32017.3

24.7

26.1

2016.32017.3

ROA(%)
26.3
19.4

18.0

27.4

30.0

16.6

18.0
12.0

6.0

6.0

2013.3

23.6

24.0

17.2

12.0

0.0

2014.3

25.0

60.0

24.0

2013.32017.3

100.0

30.0

〔株主還元〕[Returnto Shareholders]2016.3Operating profit ratio (%)

61.0

2013.3268.84140

Capital ratio (%)

80.0〔効率性・安全性〕[Efficiency& Security]

223.02251.55700

売上高総利益率（%）
Grossprofit ratio (%)

200.0721025

2013.3

Important matters concerning
the per share indices

280

68.68

75

35.90
〔収益性〕
[Profitability]

319.5880.53

50

配当額 （百万円）
Dividend(million yen)

Net assets per share (yen)2014.32015.32016.32017.30.0

16.0

2013.3

18.9

2014.32015.3On October 1, 2013, the Company executed a stock split of its common shares at the ratio of 100 shares to 1. The per share indices take into consideration the effectsof this stock split.

4

Future Developments & Outlook for Fiscal Year Ending March 2018 / Basic Information
Future Developments & Outlook for Fiscal Year Ending March 2018
For the future developments, the Online Game Business will work to sustain the steady performance ofexisting titles and continue in its efforts at new hit title creation through the use of own and othercompanies' popular IP and through alliances with strong partner companies. At the Consumer GameBusiness, the package software division will proactively promote in Japan and overseas the roll-out of series
based on company-owned IP while working on the creation of new IP and on accommodating newplatforms. The amusement business division will continue to emphasize its strength in the kids amusement
segment while working on market development in new challenging fields.
The Audio & Visual Business will in the division’s audio & visual production operations respond swiftly andflexibly to market trends away from the package business and toward the dissemination business throughhighly selective contents investment and proactive expansion of secondary usage. In the field of stage
production operations, the division will work on the acquisition and provision of high-quality contents inorder to solidify its leading position in the 2.5D business and take steps to achieve further growth throughsecondary uses and overseas initiatives. These activities will be accompanied by attention to the creation ofCompany signature contents through lateral initiatives encompassing the Online Game Business, Consumer
Game Business, and Audio & Visual Business.
As a result of the aforementioned efforts, consolidated results for the fiscal year ending March 2018 areforecast to achieve net sales of 30,000 million yen, operating income of 6,000 million yen, ordinary incomeof 6,000 million yen, and profit attributable to owners of parent of 4,180 million yen.

Comprehensive capabilities of Marvelous accumulated
over two decades since the founding of the Company
Online Game Business

Consumer Game Business

Audio & Visual Business

Home-use games

Stage/musical performances

Native app
Social games
PC browser games

New title
development

IP value
maximization

CD / DVD / Blu-ray
Dissemination andprogram sales

Amusement games

Strategic
cooperation

Expansion ofoverseas
initiatives

Multi-media
development

Preparation of wide and varied line-ups

Sustained growth for the next 20 years

Basic Information
Stock Information (As of March 31, 2017)

Company Profile (As of April 1, 2017)
・Company Name:・Head Office:・Established:・Capital:・Officers:

Marvelous Inc.
Shinagawa Seaside East Tower,
4-12-8 Higashi-Shinagawa, Shinagawa-ku, Tokyo, Japan
June 25, 1997
1,128 million yen
Chairman, President and CEO
Vice Chairman
Representative Director, Executive Vice President and COO
Executive Vice PresidentManaging Director
Director and CFO
Director (External)
Director (External)
Standing Statutory Auditor
Corporate Auditor (External)
Corporate Auditor (External)

Haruki Nakayama
Shuichi Motoda
Takashi Sensui
Toshinori Aoki
Yoshiaki Matsumoto
Seiichiro Kato
Shunichi Nakamura
Makoto Arima
Toshio Nago
Tadahiko Ono
Hisashi MiyazakiBusiness Activities
Online GameBusiness

Proposing, developing, producing and marketing apps and games capitalizing on
the Company’s proprietary intellectual property and other companies’ promisingintellectual property for various platforms

Consumer GameBusiness

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

Audio & VisualBusiness

Proposing, producing, and marketing a variety of contents including audio andvisual, as well as proposing, producing, and exhibiting stage and musicalperformances

・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: 20,325[Major Shareholders / Ratio of Shares Owned]
・ Hayao Nakayama
・ Amuse Capital Inc.
・ Haruki Nakayama
・ Amuse Capital Investment, K.K.
・ Japan Trustee Services Bank, Ltd. (Trust Account)
・ TOHOKUSHINSHA FILM CORPORATION・ Japan Trustee Services Bank, Ltd. (Trust Account 5)・ The Master Trust Bank of Japan, Ltd. (Trust Account)

18.80 ％
12.83 ％
10.49 ％
3.52 ％

・ Trust & Custody Services Bank, Ltd. (Trust E Units)・ JPMorgan Chase Bank 380178

1.63 ％
1.49 ％
1.17 ％
1.14 ％
0.95 ％
0.93 ％*1. Shareholding ratios are calculated after deduction of treasure stock (1,372,400 shares).
*2. Shareholding ratios are truncated after three decimal places.
*3. A total of 500,000 shares held by Trust & Custody Services Bank, Ltd. (Trust E Units) constitute trust assets of the "Board Benefit Trust (BBT)"entrusted with Trust & Custody Services Bank, Ltd. by Mizuho Trust & Banking Co., Ltd. which retains the voting rights of the said shares.

[Stock Quote] (As of May 11, 2017)

・Stock Quote: 1,023 yen
・Market Cap: 54,825 million yen

5