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

Results Briefing Materials

Fiscal year Ended March 31, 2020
May 12, 2020

Contents

Fiscal Year Ended March 2020, Results Summary
Segment Results
Initiatives of Each Segment Starting in FY2021
Responses to the Novel Coronavirus

Copyright (c) 2020 Marvelous Inc. All rights reserved.

2

Fiscal Year Ended March 2020,
Results Summary

Earnings Highlights (Statement of Profit and Loss) The online business was affected by lower sales of long-seller titles and insufficient contributions from new titles, withwrite-downs on the development asset value of some titles.
 The audio & visual business marked declines in revenues and earnings due to lower sales of stage performance
package products and related merchandise. Extraordinary loss was recorded due to performance cancellations.
 Additional year-on-year decline in revenues and earnings due to the absence of a one-time gain from software assets
sales in the second quarter of the previous fiscal year.
Unit: million yen

FY ended March 2019

FY ended March 2020

ActualActual

Profit ratio

YOY change

Profit ratio(Amount)(%)

Net sales

26,777-25,365--1,412

94.7%

Cost of sales

13,457-

14,271-813

106.0%

SGA expenses

8,613-

8,644-

31

100.4%

1,387-

1,827-

439

131.7%

4,706

17.6%

2,449

9.7%

-2,25652.0%

Non-operating
profit/loss

84-

52-

-31

62.3%

Ordinary profit

4,791

17.9%

2,502

9.9%

-2,28852.2%

Extra ordinary
profit/loss

-156

-

-280

-

-123

-

Income taxes

1,282-

424-

-858

33.1%

Profit attributable toowners of parent

3,351

12.5%

1,797

7.1%

-1,553

53.6%

Thereof advertisingexpenses

Operating profit

Copyright (c) 2020 Marvelous Inc. All rights reserved.

4

Segment Results

Unit: million yen

FY ended
March 2019

FY ended
March 2020

ActualActual

YOY change(Amount)(%)

Online GameBusiness

9,698

8,102-1,596

83.5%

Consumer GameBusiness

10,222

11,396

1,173

111.5%

Audio & VisualBusiness

6,876

5,888-987

85.6%

Total

26,77725,365-1,412

94.7%

Online GameBusiness

1,235

272-963

22.0%

Consumer GameBusiness

2,848

2,026-821

71.1%

Audio & VisualBusiness

2,102

1,573-528

74.9%

6,186

3,872-2,314

62.6%Company-level costs, etc.

-1,480-1,422

57

96.1%

Operating profit total

4,706

2,449-2,256

52.0%

Net sales

Segment
profitTotal

Copyright (c) 2020 Marvelous Inc. All rights reserved.

5

Development of Net Sales and Operating Profit bySegment (Quarterly)■Audio & Visual Business■Consumer Game Business■Online Game Business
Unit: million yen

8,637
1,459

7,901

7,751

7,709

(16.9%)

7,018

6,795
6,203
945

1,897

1,303
(19.2%)(15.2%)

6,192(24.5%)

2,986(34.6%)

4,822

1,542

1,970

2,568

(24.9%)(29.0%)(33.1%)

1,798

6,375

2,115(26.8%)

6,879

6,583

1,318

1,326(20.6%)(21.1%)

1,799(25.6%)

2,261(32.9%)

1,489(22.6%)

3,530(51.9%)(24.1%)

2,341
2,159

3,051(38.6%)(36.7%)

2,668

3,048(42.4%)(43.4%)

2,196

2,309(24.3%)

FY ended March 2017

3,472
3,479(45.0%)(34.8%)

2,682(39.3%)

1,761

3,295(42.5%)

3Q(29.5%)(55.1%)(31.9%)

2,330

2,243

2,724

2,736(42.7%)(34.6%)(36.2%)

2,302

2,175(36.6%)(31.0%)

2,430

2,422

2,790(42.4%)(35.3%)

1,658(36.7%)

2Q

2,014(39.0%)(48.3%)1Q

961(15.2%)

1,098(35.1%)

4,207(48.7%)(23.5%)

4,518
1,164

1,338(59.9%)

6,818(29.0%)(27.8%)

3,717

6,318

6,296

1,814

4Q

1Q

2Q

3Q

4Q

FY ended March 2018

1Q

2Q

3Q

FY ended March 20194Q

1Q

1,894(31.4%)(30.0%)

2Q

2,126(31.2%)

3Q

4Q

FY ended March 2020

Note: Totals may not tally to 100% due to rounding of sales percentages to the first decimal point.

Copyright (c) 2020 Marvelous Inc. All rights reserved.

6

Segment Results

Online Game business:
FY Ended March 2020 Results[Results of FY Ended March 2020]
Lower revenues and earnings due to lower sales of long-seller titles and a smaller
number of titles, insufficient contributions from new titles, and write-downs on thedevelopment asset value of some titles

Unit: million yen■■Net sales ■■Segment profit

9,698[Title Performance]

8,102

 “SHINOVI MASTER-SENRAN KAGURA NEW LINK-” showed continued
favorable performance in the third year since its release “Logres of Swords and Sorcery: Goddess of Ancient” declined in revenues dueto aging
 Both “LOGRES STORIES” and “GIRL CAFE GUN” which launched in
September were not successful and could not meet initial expectations

1,235272

Distribution/operations for “LOGRES STORIES” was transferred to Aiming Inc.
as of March 1
 The release of the new novel application, which had been postponed, wascanceled[Title Rollouts]

FY ended
March 2019

FY ended
March 2020

Logres of Swords and Sorcery:
Goddess of Ancient

SHINOVI MASTER-SENRAN KAGURA
NEW LINK-LOGRES STORIESGIRL CAFE GUN(native app)(native app)(native app)(native app)

2013年12月配信開始
Launched in December 2013

Launched in November 2017

Launched on September 18, 2019

Launched on September 20, 2019

©Marvelous Inc. Aiming Inc.

©Seasun Inc. / ©Marvelous Inc.

©Marvelous Inc. Aiming Inc.

©Marvelous Inc.
©HONEY PARADE GAMES Inc.

Copyright (c) 2020 Marvelous Inc. All rights reserved.

8

Consumer Game Business:
FY Ended March 2020 Results[Results of FY Ended March 2020]

Unit: million yen

Despite the profit contribution from “Pokémon Ga-Olé” and robust sales ofgame software/PC version, lower earnings due to the absence of one-time gain
like a gain from software assets sales in the second quarter of the previous
fiscal year■■Net sales ■■Segment profit

11,396

10,222[Title Performance]
 “KANDAGAWA JET GIRLS,” a new action race game, released in January
 “RUNE FACTORY 4 SPECIAL” North America/Europe version and “DAEMON
X MACHINA” Windows PC version released in February, “Granblue Fantasy:Versus” North America/Europe version and PC version released in March Although income from “Pokémon Ga-Olé,” the biggest earner in amusement,
decreased since March due to the impact of the novel coronavirus, favorable
results were maintained for the full year

2,848

Fiscal Year
ended March2019[Title Rollouts]

2,026

Fiscal Year
ended March
2020

KANDAGAWA JET GIRLS

Rune Factory 4 Special

Daemon X Machina

Pokémon Ga-Olé(PlayStation®4)(Nintendo Switch)(Windows PC)(Amusement)

Released on January 16, 2020
©2020 Marvelous Inc./HONEY PARADE GAMES Inc.
©2019 KJG PARTNERS

North American version: Released onFebruary 25, 2020
European version: Released onFebruary 28, 2020
©2020 Marvelous Inc. Licensed to and published by XSEED Games /Marvelous USA, Inc.

*Image is of North America version.

Copyright (c) 2020 Marvelous Inc. All rights reserved.

PC version: Launchedon February 14, 2020
© 2020 Marvelous Inc. Licensed to and published by XSEED Games / Marvelous USA, Inc.
DAEMON X MACHINA uses Unreal® Engine. Unreal® is a trademark or registeredtrademark of Epic Games, Inc. in the United States of America and elsewhere. Unreal®
Engine,Copyright 1998 – 2020, Epic Games, Inc. All rights reserved.
This product includes typefaces solely developed by DynaComware.
Special Thanks : Fontworks Inc.
Noto Fonts (c) Google Inc. Licensed under SIL Open Font License 1.1.

Operations started in July 2016©2020 Pokémon. ©1995-2020 Nintendo/Creatures lnc. /GAME FREAK inc.Developed by T-ARTS and MARV
TM, (R), and character names are trademarks of Nintendo.

9

Audio & Visual Business:
FY Ended March 2020 Results
Unit: million yen[Results of FY Ended March 2020]
YOY declines in revenues and earnings due to lower sales of stage performance
package products and related merchandise, extraordinary loss recorded due tothe cancellation of stage performances scheduled in April and May■■Net sales ■■Segment profit

6,8765,888[Title Performance] In the stage segment, the newest public performance of popular series such as“Touken Ranbu the Stage,” “MUSICAL THE PRINCE OF TENNIS,” “EnsembleStars! On Stage,” etc. launched In the anime segment, the broadcast of the new TV series Pretty Cure started inFebruary, however, the broadcast scheduled for the period from the end of April
was postponed due to the influence of the novel coronavirus, further, the launch of
the newest works of the stage version which had been postponed from March toMay will be postponed again

2,102

1,573

[Title Rollouts] MUSICAL THE PRINCE OF TENNIS
Touken Ranbu the Stage

3rd SEASON
National Tournament
SEIGAKU vs RIKKAIThe Last Half

HEALIN' GOOD♥PRECURE
Ensemble Stars! Extra Stage~Night of Blossoming Stars~

Performances from November
2019 to January 2020
©Touken Ranbu the Stage Production Committee©2015-2019 DMM GAMES/Nitroplus

Performances from December
2019 to February 2020©2009 TAKESHI KONOMI ©2014 NAS, THE PRINCE OF TENNIS II PROJECT©1999 TAKESHI KONOMI/2015 MUSICAL THE PRINCE OF TENNIS PROJECT

Copyright (c) 2020 Marvelous Inc. All rights reserved.

Performances from December
2019 to February 2020©2016 Happy Elements K.K／Ensemble Stars! STAGE PROJECTTV broadcast started in February 2020
©Toei Animation. All Rights Reserved

10Initiatives of Each Segment Startingin FY2021

Online Game Business:
Initiatives Starting in FY Ending March 2021
 Focus on maintaining sales of existing titles
 A new application “Ikki-Tousen Extra Burst” being prepared to be launched “The Thousand Musketeers: Rhodoknight,” a completely new game work of the “TheThousand Noble Musketeers” Project, in production (launch date is not decided)
Logres of Swords and Sorcery:
Goddess of Ancient(native app)

2013年12月配信開始

SHINOVI MASTER-SENRAN KAGURA NEW LINK(native app)

Launched in December 2013

Launched in November 2017

©Marvelous Inc. Aiming Inc.

©Marvelous Inc.
©HONEY PARADE GAMES Inc.

Ikki-Tousen Extra Burst

The Thousand Musketeers:
Rhodoknight(native app)(native app)

Launch scheduled in spring this year

Launch date undecided©2019 YUJI SHIOZAKI・SHONENGAHOSHA/IKKITOUSEN WW PARTNERS©2020 Marvelous Inc.

Copyright (c) 2020 Marvelous Inc. All rights reserved.

©Marvelous Inc.

12

Consumer Game business:
Initiatives Starting in FY Ending March 2021
 “STORY OF SEASONS: Friends of Mineral Town” scheduled to be released in North America and Europe thissummer by Marvelous USA and Marvelous Europe
 “TENSUI NO SAKUNAHIME” and “Rune Factory 5” scheduled to be released in 2020

STORY OF SEASONS:
Friends of Mineral Town
(Nintendo Switch)

North American version: To be released this summer
European version: To be released on July 10, 2020
Ⓒ2020 Marvelous Inc. Licensed to and published by XSEED Games / Marvelous USA, Inc.
Nintendo Switch is a trademark of Nintendo.
The ESRB rating icons are registered trademarks of the Entertainment Software Association.

Sakuna: Of Rice and Ruin

Rune Factory 5(PlayStation®4/Nintendo Switch/Windows PC)(Nintendo Switch)

To be released in 2020

To be released in 2020©2019 Edelweiss. Licensed to and published by XSEEDGames / Marvelous USA, Inc. and Marvelous, Inc.

Copyright (c) 2020 Marvelous Inc. All rights reserved.

©2019 Marvelous Inc.

13

Audio & Visual Business:
Initiatives Starting in FY Ending March 2021
 Broadcast of TV anime “Mewkledreamy” and “Woodpecker Detective’s Office” started in April, the part of “Mewkledreamy”
scheduled for May and after was postponed due to the impact of the novel coronavirus, broadcast schedule of “My Teen Romantic
Comedy SNAFU: Final” changed to be started from July
 In the stage segment, following the stage cancellation of “Musical HAKUOKI SHINKAI Side Soma Kazue” in April, the staging of“MUSICAL THE PRINCE OF TENNIS CONCERT Dream Live 2020” in May was also canceled, despite the preparation of newworks and series works, they could also be changed or canceled depending on the situation with the novel coronavirus
Mewkledreamy

TV broadcast started in April 2020©2017,2020 SANRIO CO.,LTD. Mewkledreamy Production Committee,TV TOKYO

Woodpecker Detective’s Office

My Teen Romantic
Comedy SNAFU Climax

TV broadcast started in April 2020

TV broadcast scheduled for July 2020

©2020Kei Ii, Tokyo Sogensha Co., Ltd./“Woodpecker Detective’s Office”Project©WATARU WATARI,SHOGAKUKAN／OREGAIRU3 PRODUCTIONCOMMITTEE

MUSICAL THE PRINCE OF TENNIS
Concert Dream Live 2020

MUSICAL ACE OF DIAMOND

Touken Ranbu the Stage

Stage cancellation decided

Performances scheduled
for June - July 2020

Performances scheduled
for June - August 2020

©Yuji Terajima・KODANSHA／MUSICAL ACE OF DIAMOND PROJECT© Touken Ranbu the Stage Production Committee© 2015-2020 DMM GAMES/Nitroplus©TAKESHI KONOMI/Shueisha, NAS, THE PRINCE OF TENNIS II PROJECT©TAKESHI KONOMI/Shueisha, MUSICAL THE PRINCE OF TENNIS PROJECT

Copyright (c) 2020 Marvelous Inc. All rights reserved.

14

Initiatives for ESG/SDGs
Marvelous actively implements initiatives for ESG/SDGs
toward the realization of a sustainable world
Initiatives of the Company

Social Promotion diversity
 Promoting the active
engagement of women Promoting PWDs' employment

 Creating an employee-friendly
environment
 Training talent CSR activities

GovernanceGEnvironmental

ES Environmental awareness Promoting a paperless office Enhancing corporate
governance Observance of compliance Risk management measures Contact points forwhistleblowers
 Relations with shareholders

Copyright (c) 2020 Marvelous Inc. All rights reserved.

Related SDGs Items

15

Responses to the Novel Coronavirus

Countermeasures against the Novel Coronavirus
and the Impact on the Company’s BusinessCountermeasures against the novel coronavirus infection
 Prohibiting nonessential and nonurgent business trips/dining together
 Refraining from holding meetings with many people and utilizing TVconferences Strongly promoting telecommuting at the company-wide level, etc.

Impact on the Company’s business from the spread of the novel
coronavirus
 Limited impact on the online and consumer game businesses from thenovel coronavirus
 Big impact on the amusement business, such as a drastic decrease inincome because of the cessation of cabinet operations due to domestic
and overseas store closures and a call to stay at home
 Also in the audio & visual and live entertainment businesses, thecancellation of events, staging, etc. has been occurring due to requests
to refrain from holding large-scale events, and there are concerns thatthe impact of prolonged cancellations could continue to have a further
negative impact.
Copyright (c) 2020 Marvelous Inc. All rights reserved.

17

Results and Dividends Forecasts
for the Fiscal Year Ending March 2021
Results forecasts
Full-year results forecasts for the fiscal year ending March 2021 are notdisclosed at the present time because of the difficulty in reasonably
estimating the impact of the novel coronavirus.
It will be announced as soon as it is possible to disclose consolidated
results forecasts.
Dividends forecasts FY ended March 2020： ¥33 annual
dividend (finalized)

Dividend policy FY ending March 2021: Undecided
FY2020

FY2021(Forecasts)

Dividend

33 yenUndecided

Dividend
payout ratio

95.0%-Copyright (c) 2020 Marvelous Inc. All rights reserved.

Securing necessary internal
reserves for expanding futurebusinesses and strengthening
the financial position, theCompany distributes
continuous and stabledividends targeting 30% ormore of payout ratio as abasic policy.
18

Thank you very much for your attention.
Inquiries
Corporate Communication Division, Corporate Planning Department
E-mail: ir@marv.jp
URL: https://corp.marv.jp

This document contains forward-looking statements which are based on information currently available to theCompany and which may change as a result of numerous factors including the macroeconomic environment andindustry 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 fromthose presented.

Copyright (c) 2020 Marvelous Inc. All rights reserved.

19