Consolidated Financial Results for the Fiscal Year Ended March 31, 2016 (Based on J-GAAP)May 12, 2016
Company name:
Stock Code:
Representative:
Contact:

Marvelous Inc.
Listing: First Section of Tokyo Stock Exchange
7844
URL:
http://www.marv.jp/
Haruki Nakayama, Chairman, CEO
Seiichiro Kato, Director, Executive Officer, CFO, Chief Senior Director of Administration
Tel: +81-3-5769-7447
Scheduled date of Annual General Meeting of Shareholders:June 21, 2016
Scheduled Commencement Date of Dividend Payout:
June 6, 2016
Scheduled date of filing Annual Securities Report:
June 21, 2016
Explanatory Documents Supplemental to the Abridged Financial Statements: Yes
Result Briefing: Yes (For Institutional Investors and Analysts)(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2016 (April 1, 2015 – March 31, 2016)(1) Consolidated Results of Operations (full-year)(Percentages represent year-over-year changes)
Net sales
FY 2016
FY 2015
Note:

Operating income

Million yen
31,82026,441

%
20.3
30.1

Million yen
5,418
4,412

Comprehensive income (million yen):%
22.8
46.8

Million yen
5,228
4,583

FY 2016: 3,557 (60.8%)

Net income
per share

Diluted net income
per share
Yen
68.68
40.74

FY 2016
FY 2015

Ordinary income

FY 2015: 2,212 (16.7%)

Returnon equity

Yen
—
40.74

Reference: Equity in earnings of affiliates (million yen):

%
14.1
50.7

Profit attributable toowners of parent
Million yen
%
3,602
65.4
2,178
15.7

FY 2016: —Ratio of ordinary
Ratio of operating
income to total assets income to net sales
%%%
26.3
24.7
17.0
17.2
23.6
16.7
FY 2015: —(2) Consolidated financial positionTotal assets
Million yen
20,37022,039FY 2016
FY 2015

Net assets
Million yen
13,921
13,450

Reference: Shareholders' equity (million yen):

Equity ratio

Net assets per share%
68.3
61.0

FY 2016: 13,904

FY 2015: 13,450

Cash flows frominvesting activities
Million yen(2,874)(2,218)Cash flows fromfinancing activities
Million yen(3,086)(1,146)Yen
268.84251.55(3) Consolidated cash flow position

FY 2016
FY 2015

Cash flows fromoperating activities
Million yen
5,986
4,031

Cash and cash equivalents
at end of period
Million yen
8,7868,937

2. Dividends

——

Yen
0.00
0.00

Yen——

Yen
20.00
30.00

Yen
20.00
30.00

Dividend payout
ratio(consolidated)
Million yen%
1,069
49.1
1,551
43.7

—

0.00

—

30.00

30.00

37.4

1Q-endYen
FY 2015
FY 2016
FY 2017(forecasts)

Dividends per share
Interim
3Q-end Year-end

AnnualTotal dividends(annual)Dividend onequity(consolidated)
%
8.4
11.5

3. Consolidated Forecasts for the Fiscal Year Ending March 31, 2017 (April 1, 2016 – March 31, 2017)(Percentages represent year-over-year changes)

Net sales
Full year
Note:

Million yen
34,000%
6.9

Profit attributable toOperating income
Ordinary income
owners of parent
Million yen% Million yen% Million yen%
6,000
10.7
5,850
11.9
4,150
15.2

Net income
per share

The Company manages financial results based on the full fiscal year. Interim (2nd quarter) results projections are therefore omitted.

Yen
80.24

*Notes(1) Changes in significant subsidiaries during the fiscal year under review(changes in subsidiaries accompanying change in the scope of consolidation): None
New:None (Company name:)
Excluded: None (Company name:)(2) Changes in accounting principles, estimates and restatement
1) Changes in accounting principles caused by revision of accounting standards: Yes
2) Changes in accounting principles other than those mentioned above: None
3) Changes in accounting estimates: None
4) Restatement: None
(3) Number of shares issued and outstanding (shares of common stock)1) Number of shares outstanding (including
treasury stock) at end of period
2) Number of treasury stock at end of period
3) Average number of shares outstanding
during the period

FY 2016

53,593,100 sharesFY 2015

53,593,100 shares

FY 2016

1,872,400 shares

FY 2015

122,400 shares

FY 2016

52,453,760 shares

FY 2015

53,467,751 shares

Reference: Non-Consolidated Financial Results
Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2016 (April 1, 2015 – March 31, 2016)(1) Non-consolidated results of operations (full-year)
Net sales
Operating income
Million yen% Million yen%
FY 2016
26,793
9.7
3,989
(1.5)
FY 2015
24,433
32.1
4,049
38.7
Net income
per shareYen—33.81(2) Non-consolidated financial position
Total assets
Million yen
FY 2016
18,529FY 2015
21,354

Net assets
Million yen
12,425
13,098Reference:

Net income
Million yen
2,414
1,808%
33.5(9.4)

Diluted net income
per share
Yen
46.02
33.82

FY 2016
FY 2015(Percentages represent year-over-year changes)

Ordinary income
Million yen%
3,883(7.5)
4,198
36.3

Shareholders' equity (million yen):

Equity ratio

Net assets per share%
67.0
61.3

Yen
239.95244.97FY 2016: 12,410 FY 2015: 13,098* Implementation of audit proceduresThis summary of financial statements is not subject to audit procedures pursuant to the Financial Instruments and Exchange Act (FIEA),
and at the time of disclosure of this summary of financial statements, the audit procedures of financial statements pursuant to the FIEA
were not completed.

* Cautionary statement with respect to forward-looking statements
This document contains forward-looking statements including forecasts of the Company's business performance, which are based on
information currently available to the Company as well as on certain assumptions that the Company deems reasonable. Therefore,results including actual business performance could differ materially from those described in these forward-looking statements as aresult of numerous factors.

Marvelous Inc. (7844) / Consolidated Financial Results for the Fiscal Year Ended March 31, 2016
(Based on J-GAAP)

1. Analysis of Results of Operations and Financial Position(1) Analysis of results of operations(1) Operating results for the current term

The entertainment industry in the period under review saw in the domestic apps game market a gradually intensifying
competitive market environment caused by factors such as the emergence of popular IP titles, and game companies inJapan, the U.S., Europe, and Asian countries entering each other's markets. In the overseas app game markets,
expectations are for sustained growth in step with proliferating smartphones especially in emerging economies. In themarket for home-use games, business was thriving overseas but in the domestic realm overall, the contracting trendcontinued. In the market for arcade games, although the market environment remains hostile, machines featuring
popular IP themes performed well. In the audio & visual sectors, new music and video dissemination offerings bydomestic and overseas subscription services (monthly subscription charges) continued expanding. Moreover, "2.5
dimensional musical" format, which transforms the two-dimensional world of manga, anime, and games into stage
performance contents, has established itself in Japan as a full-fledged genre, with ongoing gains in market scale alongwith rising numbers of performances and personnel.

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 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 that generates "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, 2015 to March 31, 2016) came to
net sales of 31,820 million yen (up 20.3% from the previous fiscal year), operating income of 5,418 million yen (up22.8% from the previous fiscal year), and ordinary income of 5,228 million yen (up 14.1% from the previous fiscalyear). Profit attributable to owners of parent for the term was 3,602 million yen (up 65.4% from the previous fiscalyear).
Results by business segment are described below.

(Online Game Business)
In native apps, "Logres of Swords and Sorcery: Goddess of Ancient" continued to perform well with substantial
contributions to income for the period. Service for this title was initiated on October 22, 2015, through Garena
Online Private Limited in Taiwan, Hong Kong, and Macau. Performance has developed favorably from the time ofthe release, and as of December 4, 2015, this title attained in Taiwan the No. 1 position in the App Store sales
ranking. Additionally, dissemination of "CHRONO DRAGON" started on August 28, 2015, and "Samurai Jam-Bakumatsu Rock-: Ultimate Soul" on September 10, 2015. In browser games, service for "VALKYRIE DRIVE-SIREN-" launched on November 25, 2015, with existing titles showing solid performance.
As a result, segment net sales totaled 19,755 million yen (up 28.5% from the previous fiscal year) with segment
operating income at 4,182 million yen (up 9.6% from the previous fiscal year).

(Consumer Game Business)
At the Company's sales sector of the Consumer Game Business segment, altogether six new titles were released
consisting of one title for Nintendo 3DS, four titles for PS Vita, and one title for PS3/PS4. Furthermore, U.S.
subsidiary Marvelous USA, Inc. posted repeat-sales of the year-earlier launched "STORY OF SEASONS(Nintendo 3DS)" along with hugely successful sales of "SENRAN KAGURA ESTIVAL VERSUS (PS Vita/PS4)"
launched on March 15, 2016, resulting in the subsidiary's highest sales on record to date.
At the amusement division, solid performance was reported regarding its new machine model "MONSTERHUNTER SPIRITS" put into operation on June 25, 2015, along with continued good numbers also from the releaseof new sequel versions of "Pokémon TRETTA."
As a result, segment net sales totaled 7,544 million yen (up 18.3% from the previous fiscal year), with segment
operating income of 1,006 million yen (up 100.4% from the previous fiscal year).

-1-Marvelous Inc. (7844) / Consolidated Financial Results for the Fiscal Year Ended March 31, 2016
(Based on J-GAAP)(Audio & Visual Business)
The audio & visual production sector of the Audio & Visual business segment implemented the videocommercialization of "My Teen Romantic Comedy SNAFU TOO!," a TV anime lead-managed by the Company,
with favorable sales performance. Additionally, income from secondary usage such as video dissemination sales
and program sales, respectively from the Company's library, also developed favorably.
The stage production division reported good results from leading titles such as "MUSICAL THE PRINCE OFTENNIS Series" and "Stage [Yowamushi Pedal] Series" and from a large number of performances of new titles"Tokyo Ghoul the Stage," "MUSICAL AOHARUTETSUDO," and "musical-au revoir, Sorcier-."
As a result, segment net sales totaled 4,527 million yen (down 3.7% from the previous fiscal year), with segment
operating income of 1,308 million yen (up 20.1% from the previous fiscal year).

(2) Outlook for the next term
In its business initiatives for the next fiscal year, the Group will take steps to extend the successful performance ofexisting hit titles and work to generate income through overseas initiatives and new title launches. In the Consumer
Game Business, the Group plans at the amusement division the service start of amusement consoles using strong IPtitles and have also in the package software division lined up new titles from popular series. The Group is therefore
aiming at significant growth in revenues and earnings. In the Audio & Visual Business, the Group has likewise aline-up of promising new anime products and stage performances, and expects continued solid performance.
Based on the foregoing, consolidated results projections for the next fiscal year are for net sales of 34,000 million
yen, operating income of 6,000 million yen, and ordinary income of 5,850 million yen, with 4,150 million yen in
profit attributable to owners of parent.

(2) Analysis of financial position
1. Assets, liabilities, and net assets
The financial position of the Group at the end of the current consolidated accounting period is as follows.
Consolidated assets at the end of the fiscal year under review totaled 20,370 million yen, which was 1,668 million
yen less than at the end of the previous fiscal year. Main factors included a decrease in cash and cash equivalents,and notes and accounts receivable.
Consolidated liabilities at the end of the fiscal year under review totaled 6,448 million yen, which was 2,139
million yen less than at the end of the previous fiscal year. Main factors were a decrease in accounts payable andincome taxes payable, etc.
Consolidated net assets at the end of the fiscal year under review totaled 13,921 million yen, which was 470
million yen higher than at the end of the previous fiscal year. Main factors were a decrease in retained earnings due
to dividend payments and, despite the acquisition of treasury stock, recognition of profit attributable to owners ofparent.

2. Cash flows
Consolidated net cash and cash equivalents ("Cash") at the end of the consolidated fiscal year under review totaled
8,786 million yen, which was 151 million yen less than at the end of the previous fiscal year.
Cash flows and relevant factors in the period under review are as follows:[Cash flows from operating activities]
Net cash provided by operating activities totaled 5,986 million yen (up 48.5% from the previous fiscal year). Main
factors comprised 5,172 million yen in income before income taxes, 1,086 million yen in depreciation charges, a2,253 million yen decrease in trade receivables, and 2,647 million yen in income tax payments.

[Cash flows from investing activities]
Net cash used in investing activities totaled 2,874 million yen (up 29.6% from the previous fiscal year). Main
factors comprised 414 million yen in expenditure for the acquisition of property, plant, and equipment, 1,193
million yen in expenditure for the acquisition of intangible non-current assets, 1,532 million yen in expenditure forthe acquisition of share equity in subsidiaries associated with a change in the scope of consolidation, and 600
million yen in income from the repayment of term deposits.

[Cash flows from financing activities]
Net cash used in financing activities totaled 3,086 million yen (up 169.3% from the previous fiscal year). Main
factors comprised 2,033 million yen in expenditure for the acquisition of treasury stock and 1,069 million yen in
dividend payments.

-2-

Marvelous Inc. (7844) / Consolidated Financial Results for the Fiscal Year Ended March 31, 2016
(Based on J-GAAP)Reference: Trends in cash flow indicators
FY 2012FY 2013 FY 2014
FY 2015
FY 2016
Shareholders' equity ratio (%)
66.6
69.7
70.9
61.0
68.3
Shareholders' equity ratio based on market
63.6
203.5
267.0
407.4
256.4
prices (%)
Interest-bearing debt to cash flow ratio
99.0
30.1
16.9
5.0
2.7
(annual)Interest coverage ratio (times)
54.7
280.3
490.0
704.6
4,832.4
Shareholders' equity ratio: Shareholders' equity / Total assets
Shareholders' equity ratio based on market prices: Market capitalization / Total assetsInterest-bearing debt to cash flow ratio: Interest-bearing debt / Cash flow
Interest coverage ratio: Cash flow / Interest paid
Notes: 1. Indicators are calculated using consolidated financial figures.
2. Market capitalization is calculated using the total number of issued shares minus treasury shares.
3. Cash flow refers to cash flow from operating activities.
4. Interest-bearing debt refers to all liabilities appearing on the consolidated balance sheet thatinterest is paid on. Interest payments are based on the interest payment amount of the consolidated
cash flow statement.
(3) Basic profit allocation policy, and dividends in the current and next fiscal years
The Company regards the redistribution of profits to our shareholders as one of the most importantmanagement priorities. It is our fundamental policy to provide continuing and stable distributions while
securing the internal reserves necessary for future business expansion and reinforcement of the Company'sfinancial position.
The Company's institution which determines the distribution of any retained earnings is stipulated inaccordance with the Articles of Association as being the Board of Directors. After comprehensively
considering expansion of the Group in the next term and after and so as to reward our shareholders for theirsupport, the Board of Directors decided that the dividend per share would be 30 yen. In addition, the annual
dividend for the next term is expected to be 30 yen per share.

-3-