Stock Code: 7844
(First Section of Tokyo Stock Exchange)

Marvelous Inc.

Fiscal Year Ended March 31, 2016

Results Briefing
Materials
May 12, 2016

This document contains forward-looking statements which are based on
information currently available to the Company and 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 anduncertainties which could cause results including actual businessperformance to differ materially from those presented.

Contents

Fiscal Year Ended March 2016 Financial Results Summary

Fiscal Year Ending March 2017 Business Forecast

Copyright (c) 2016 Marvelous Inc. All rights reserved.

2

Fiscal Year Ended March 2016 Financial Results Summary

Copyright (c) 2016 Marvelous Inc. All rights reserved.

Earnings Highlights
 The fiscal year ended March 2016 marked sales of ¥31.8 billion with operating income of ¥5.4 billion.
Although lower than initial projections, sales and earnings rose on double-digit growth compared withthe previous fiscal year With the online game business as the overall results driver, sales and earnings posted historical highsNet sales
売上高Operating income
営業利益40,0008,000120.3%

Net Sales

26,441

31,820122.8%

5,418

6,000

4,412
20,0004,000

10,0002,000

0Copyright (c) 2016 Marvelous Inc. All rights reserved.

Operating Income

30,000(Unit: million yen)0

Fiscal Year ended
March 2015

Fiscal Year ended
March 2016
4

Income Statement
 Profit margins held steady at the year-earlier level despite higher advertising expenses throughout
the year with strengthened promotion through TV ads
 Non-operating items posted a foreign currency loss due to yen appreciation at fiscal year-end Sales and earnings across all levels marked historical highs, achieving double-digit growth comparedwith the previous fiscal year
(Unit: million yen)
FY ended March 2015
ActualFY ended March 2016

Profit ratio

Actual

YOY change

Profit ratio (Amount)(%)

Net sales

26,441-

31,820-5,378

120.3%

Cost of sales

11,466-

12,608-1,141110.0%

SGA expenses

10,562-

13,793-3,230

130.6%

2,035-

3,187-

1,151

156.6%

Operating income

4,412

16.7%

5,418

17.0%

1,005

122.8%

Non-operating income/losses

171-−190-−361-

Ordinary income

4,583

17.3%

5,228

16.4%

644

114.1%

Extraordinary income/losses

−881

-

−55-

826-

Income taxes

1,523-

1,569-

45

103.0%

Profit attributable to owners ofparent

2,178

8.2%

3,602

11.3%

1,424

165.4%

Thereof advertising expenses

Copyright (c) 2016 Marvelous Inc. All rights reserved.

5

Development of Net Sales and Operating Income (Quarterly) All four quarters in fiscal year ended March 2016 posted earnings of at least ¥1 billion
 Results were steady at a high level also in the 4th quarter(Unit: million yen)
10,000Net sales
売上高

2,500

Operating income
営業利益

8,233

8,402
8,045

7,781

8,000

N e Nett Saless a l e s

5,175

6,820
1,475

5,664

6,000

1,486

1,464

1,500

5,080
4,758

849

1,446

1,376
1,130

4,410
4,000

2,000

795

1,000

845

793

Operating Income

6,629

7,591

655
515
2,000

500

00
1Q

2Q

3Q

FY ended
March 20142014年3月期

Copyright (c) 2016 Marvelous Inc. All rights reserved.

4Q

1Q

2Q

3Q

FY ended
March 2015
2015年3月期

4Q

1Q

2Q

3Q

4Q

FY ended
March 20162016年3月期6Segment Results(Unit: million yen)
FY ended
March 2015

FY ended
March 2016

ActualActualOnline Game
●Business

YOY change(Amount)(%)

15,37919,755

4,376

128.5%●Consumer GameBusiness

6,376

7,544

1,167

118.3%●Audio & VisualBusiness

4,699

4,527

−172

96.3%

Net SalesPOINT● Online Game Business• "Logres of Swords and Sorcery" wasearnings driver throughout the year
• Also achieved some positive results inoverseas initiatives● Consumer Game Business• Strong sales of game software atoverseas subsidiaries• Amusement business improved

Total26,441

31,8205,378

120.3%●Online GameBusiness

3,815

4,182

367

109.6%●Consumer GameBusiness

502

1,006

504200.4%●Audio & VisualBusiness● Audio & Visual Business

1,089

1,308

218

120.1%

Total

5,407

6,497

1,090

120.2%

Adjustments & eliminations−995−1,079−84108.5%• Anime and stage/musicalperformances overall successful• Enhanced profit margins fromincreased income from sales related tosecondary usage such as sales fromvideo dissemination and program sales

Operating Income Total

4,412

5,418

1,005

122.8%

Segment
IncomeCopyright (c) 2016 Marvelous Inc. All rights reserved.

7

Sales Structure by Segment (Quarterly) Audio & visual business strongly expanded in the 4th quarter compared with the previous
periods through concentration on leading stage/musical performance titles
9,000
8,233

Unit: million yen (percent of sales)
8,000■Audio & Visual Business
1,532■Consumer Game Business
7,000■Online Game Business

6,000
5,080

5,000
4,410

3,000

6,629
1,019
(15.4%)

5,664
5,175

4,000

1,073
(20.7%)

788(17.9%)

1,677(38.0%)

2,086(40.3%)

850(15.0%)

1,113(21.9%)

1,660(32.7%)

4,758825(17.3%)

2,206(38.9%)

6,820

1,322(19.4%)

2,307

2,016(39.0%)(45.4%)

1Q

2Q

3Q

1,655
1,884(20.6%)

2,152(32.5%)

2,656(55.8%)

4Q

1Q

3,461(52.2%)

2Q

3Q

1,564(20.6%)

2,086(24.8%)

2,177(28.0%)

5,479(65.2%)

7,591

1,625(21.4%)

1,278(26.9%)

2,609(46.1%)

862(11.1%)

1,061(15.6%)

4,443

1,944(44.1%)(18.6%)

912(11.3%)

7,781
1,189(14.2%)(22.9%)

2,000

1,000

8,402
8,045

4,818(68.1%)(58.5%)

5,129(61.0%)

4,743(61.0%)

4,403(58.0%)

0Fiscal Year
ended March 20142014年3月期
Copyright (c) 2016 Marvelous Inc. All rights reserved.

4Q

Fiscal Year
ended March 2015
2015年3月期

1Q

2Q

3Q

4Q

Fiscal Year
ended March 20162016年3月期

8Balance Sheet (Summary)Current assets decreased due to factors including lower cash and deposits after income tax and dividend payments,
acquisition of G-MODE Corporation stocks, and treasury stock purchase in September, as well as decreased tradereceivables

Noncurrent assets increased due to factors including goodwill recognized in connection with G-MODE Corporation
share acquisition and advances in the development of new titles

Current liabilities decreased due to factors including reductions in accrued expenses and accrued income tax(Unit: million yen)

End of March 2015 End of March 2016

ChangeCurrent assets (total)

18,624

16,204−2,419Noncurrent assets (total)

3,414

4,165

750

22,03920,370−1,668

8,535

6,421

−2,114

52

27

−25

Total Liabilities

8,588

6,448

−2,139Net Assets (total)

13,45013,921

470

Total AssetsCurrent liabilities (total)
Noncurrent liabilities (total)

Copyright (c) 2016 Marvelous Inc. All rights reserved.

9Segment Results: Online Game Business
Review of Fiscal Year Ended March 2016
Although short of initial projections, higher sales andearnings compared with the previous fiscal year, driven by"Logres of Swords and Sorcery"■Net sales ■Operating income(Unit: million yen)
6,000

19,75520,00015,379Title Performance

15,000 "Logres of Swords and Sorcery: Goddess of Ancient"promotion strengthened through TV ads throughout theyear, driving sales and earnings growth

10,000

3,000

5,000

1,500

4,182

4,500

3,815

 Service started for "Logres of Swords and Sorcery:
Goddess of Ancient" on October 22 in Taiwan, Hong
Kong, and Macau, and rose to the No. 1 position in
Taiwan's top seller ranking. Strong performancecontinues.

〈Title Rollouts〉
Logres of Swords and Sorcery: Goddess of Ancient(Native app)
Service launched in December 2013 (within Japan)©Marvelous Inc. Aiming Inc.

Copyright (c) 2016 Marvelous Inc. All rights reserved.

00
FY ended
March 2015

FY ended
March 2016

劍與魔法王國-遠古的女神(Logres of Swords and Sorcery: Goddess of Ancient)
Service launched in October 2015 (Taiwan, Hong Kong, Macau)©Marvelous Inc. Aiming Inc.
©Garena Online.

10Segment Results: Consumer Game Business■Net sales ■Operating income

Review of Fiscal Year Ended March 2016
Higher sales and earnings and two-fold growth in profit due tooverseas operations marking favorable sales of game softwareand recovering amusement business

8,000

Title Performance

6,000(Unit: million yen)
1,200

7,544
1,006

6,376900

 Sales launch of 6 game software titles in Japan(Nintendo 3DS: 1; PS Vita: 4; PS3/PS4: 1) In overseas markets, "STORY OF SEASONS" and "SENRANKAGURA ESTIVAL VERSUS" marked robust sales
 U.S. subsidiary Marvelous USA and U.K. subsidiary Marvelous
EUROPE reported all-time highs for earnings

4,0002,000

 "MONSTER HUNTER SPIRITS" and "Pokémon TRETTA" also
doing well〈Title Rollouts〉
VALKYRIE DRIVE-BHIKKHUNI(PS Vita)
Released December 10, 2015

©2015 Marvelous Inc.
©VALKYRIE DRIVE PARTNERS

North America version:
Released March 31, 2015

0FY endedMarch 2015©2016 Marvelous Inc. Licensed to and published by XSEED Games /Marvelous USA, Inc. "PlayStation", the "PS" Family logo, and the "PSVITA"logo are registered trademarks. "PS4" is a trademark of Sony ComputerEntertainment Inc. The ESRB rating icons are registered trademarks of theEntertainment Software Association.

FY ended
March 2016

MONSTER HUNTER SPIRITS(Amusement)

North America version: Released March 15, 2016
Europe version: Released March 18, 2016©2015 Marvelous Inc. All rights reserved. Licensed to and published by XSEED Games /Marvelous USA, Inc. Nintendo trademarks and copyrights are properties of Nintendo.
©2015 Nintendo. The ESRB rating icons are registered trademarks of the Entertainment
Software Association.

Copyright (c) 2016 Marvelous Inc. All rights reserved.

300

0

SENRAN KAGURAESTIVAL VERSUS(PS4/PS Vita)

STORY OF SEASONS(3DS)

600502

Operations started inJune 2015

©CAPCOM CO., LTD. 2015, 2016 ALL RIGHTS RESERVED. / Marvelous Inc.

11

Segment Results: Audio & Visual Business■Net sales ■Operating income

Review of Fiscal Year Ended March 2016
All titles performed well despite marginal sales declines; increased 6,000
earnings due to enhanced profit margins from increased sales forsecondary usage
5,000

4,699

4,527Title Performance Stage/musical performance results overall favorable
thanks to leading series and performances of a variety ofnew productions
Total of 16 programs in 2016, 325 performances held(* actual performances) "My Teen Romantic Comedy SNAFU TOO!" saw favorable
sales for package sales, continuing from the predecessor title
 Income from secondary usage such as video dissemination
sales and program sales, respectively from the Company'slibrary, developed favorably(Unit: million yen)
2,000

1,600
1,308

4,000

1,200

1,089
3,000

800
2,000400

1,00000
FY ended
March 2015

FY ended
March 2016〈Title Rollouts〉
MUSICAL THE PRINCE OFTENNIS
3rd Season
SEIGAKU vs YAMABUKI

My Teen Romantic Comedy
Stage [Yowamushi Pedal] HYPER MUSICAL Samurai Jam
SNAFU TOO!
“ A New Team, Beginning ”
Broadcasted April to June 2015-Bakumatsu RockPerformances in March 2016

Performances December 2015 to February 2016©2009 TAKESHI KONOMI ©2014 NAS, THE PRINCE OF TENNIS II PROJECT©1999 TAKESHI KONOMI / 2015 MUSICAL THE PRINCE OF TENNIS PROJECT©Wataru Watanabe (Akitashoten) 2008 / Yowamushi Pedal GR Film Partners2014©Wataru Watanabe (Akitashoten) 2008 / Marvelous, TOHO, SEGA LIVE CREATION

Copyright (c) 2016 Marvelous Inc. All rights reserved.

Performances in August 2015

Ⓒ2014 Marvelous Inc./BakumatsuRock Production Committee©2014 Marvelous Inc./ULTRA MUSICAL BakumatsuRock Production Committee©WATARU WATARI,SHOGAKUKAN／OREGAIRU2 PRODUCTION COMMITTEE

12

Fiscal Year Ending March 2017 Business Forecast

Copyright (c) 2016 Marvelous Inc. All rights reserved.

Fiscal Year Ending March 2017 Business Forecast
 Operating income target of ¥6 billion renewed Targeting higher sales and earnings and double-digit earnings growth for five consecutive years after
management integration
FY ended March 2016
(Unit: million yen)

ActualFY ending March 2017

Profit ratio

Forecast

YOY change

Profit ratio(Amount)(%)

Net sales

31,820－34,000－2,179106.9%

Operating income

5,418

17.0%

6,000

17.6%

581

110.7%

Ordinary income

5,228

16.4%

5,850

17.2%

621

111.9%

Profit attributable toowners of parent

3,602

11.3%

4,150

12.2%

547

115.2%

40,000Netsales
売上高

8,000

Operating income
営業利益31,820 106.9%
30,00026,441130.1%

17,57920,000115.6%

6,000

5,418

122.8%

4,000

3,006
146.8%

2,329

10,423
10,0002,000129.0%

1,044
FY ended
March 2012

6,000

110.7%

4,412

20,330168.6%

0120.3%34,000223.0%FY ended
March 2013

Copyright (c) 2016 Marvelous Inc. All rights reserved.

0
FY ended
March 2014

FY ended
March 2015

FY ended
March 2016

FY endingMarch 2017(forecast)

14

Fiscal Year Ending March 2017 Important Measures

Marvelous in Total
Online GameBusiness

Native apps

Home-use games

Social games

Amusement games

PC browser games

Developmentof new titles

Audio & VisualBusiness

Consumer GameBusiness

IP value
maximization

Strategiccooperation

CD / DVD / Blu-ray
Stage/musical performances
Dissemination andprogram sales

Expansion ofoverseas
initiatives

Multi-media
initiatives

Earnings diversification and creation of long-term earnings base

Sustained growth
Copyright (c) 2016 Marvelous Inc. All rights reserved.

15

Fiscal Year Ending March 2017 Segment Forecasts
 The consumer game business with line-ups of big titles driving overall company growth However, investments in new titles are seen to take the lead in 1Q(Unit: million yen)
Full Year

Online GameBusinessConsumer Game
●BusinessNet Sales
Audio & Visual●Business●FY endedMarch 2016

FY endingMarch 2017

ActualForecastYOY change(Amount)(%)

19,75519,80044100.2%

7,544

9,400

1,855

124.6%

4,527

4,800

272

106.0%

31,82034,0002,179106.9%

4,182

3,900

−282

93.2%

1,006

2,000

993

198.7%

1,308

1,350

41103.2%

6,497

7,250

752

111.6%

Adjustments & eliminations−1,079−1,250−170

115.8%

Operating Income

5,418

6,000

581

110.7%

Ordinary Income

5,228

5,850

621

111.9%

Profit attributable to owners ofparent

3,602

4,150

547

115.2%

Total
Online GameBusiness
Consumer Game
●Business
Audio & Visual●Business●
Segment
IncomeTotalCopyright (c) 2016 Marvelous Inc. All rights reserved.

16

Initiatives by Segment: Online Game Business■Net sales ■Operating income
25,000

TOPICS New app "SMASH DRAGOON" released April 28⇒ An app internally produced by the Marvelous development
team that produced "SOUL SACRIFICE DELTA"
 Additional new titles are in the planning and development
phases Using success in Taiwan as a springboard, "Logres of
Swords and Sorcery" finalized for introduction into mainland
China More existing and new titles are under consideration foroverseas initiatives

20,00019,755(Unit: million yen)
8,000

19,8006,000

15,000

4,182

3,900

4,000

10,0002,000
5,00000
FY ended
March 2016

FY endingMarch 2017

Overseas Initiatives〈Title Rollouts〉
SMASH DRAGOON(Native app)
Service launched April 28, 2016

©Marvelous Inc.

Copyright (c) 2016 Marvelous Inc. All rights reserved.

战斗吧 蘑菇君 いにしえの女神(Logres of Swords and Sorcery: Goddess of Ancient)
Finalized for dissemination in China in 2016

©Marvelous Inc. Aiming Inc.
©成都天象互动科技有限公司

17

Initiatives by Segment: Consumer Game Business■Net sales ■Operating income

TOPICS
12,000 "Dragon Quest: Monster Battle Scanner" scheduled to start
operating in the summer of 2016
 "Pokémon Ga-Olé" scheduled to start operating in July 2016
 "BOKUJO MONOGATARI MITTSU NO SATO NO TAISETSUNA TOMODACHI" scheduled for release on June 23 to markthe 20-year anniversary of the series
 Own new product "UPPERS" scheduled for release on July 14
 First new title of the series in three years"Fate/EXTELLA" sales launch scheduled within 2016

Dragon Quest:
Monster Battle Scanner(Amusement)
Scheduled to start operatingin the summer of 2016©2016 ARMOR PROJECT/BIRD STUDIO/Marvelous/
SQUARE ENIX All Rights Reserved.

Pokémon Ga-Olé(Amusement)
Scheduled to start
operating in July 2016©2016 Pokémon. ©1995-2016 Nintendo/Creatures Inc. /GAME FREAK inc.
Developed by T-ARTS and MARV
Pokémon is a registered trademark of Nintendo, Creatures, and Game Freak.

Copyright (c) 2016 Marvelous Inc. All rights reserved.

2,500
2,000

7,544

6,000
4,000

BOKUJO MONOGATARIMITTSU NO SATO NO
TAISETSU NA TOMODACHI(3DS)
Scheduled for release June 23, 2016©2016 Marvelous Inc. All Rights Reserved.

2,0001,500

1,006

1,000

2,000
0〈Title Rollouts〉

9,400

10,0008,000(Unit: million yen)
3,000

500

FY ended
March 2016

FY endingMarch 2017

0UPPERS(PS Vita)

Fate/EXTELLA(PS4/PS Vita)

Scheduled for release
July 14, 2016

Scheduled for release in 2016©2016 Marvelous Inc.

©TYPE-MOON ©Marvelous Inc.

18

Initiatives by Segment: Audio & Visual Business■Net sales ■Operating income

TOPICS

6,000

 Package sales launch of "Witchy Pretty Cure!" Participation in new anime productions "QUALIDEA CODE,""TOUKEN RANBU HANAMARU," and "Fate/EXTRA Last
Encore" Continued development of stage/musical performance series
such as "MUSICAL THE PRINCE OF TENNIS" and "Stage[Yowamushi Pedal]" New performances of strong IP productions such as "ToukenRanbu the Stage" and "Ensemble Stars! On Stage"

5,000

Witchy Pretty Cure!

Broadcasting start scheduled
for October 2016

3,000

©Speakeasy,Marvelous/Qualidea production
committee

Copyright (c) 2016 Marvelous Inc. All rights reserved.

©2016 TOUKEN RANBU HANAMARU Project

1,350

1,308

1,500

2,000

1,000

1,000

500

FY ended
March 2016

FY endingMarch 2017

0

“Ensemble Stars! On Stage”
Touken Ranbu the Stage
Performances in May 2016

Broadcast started February 2016

©Toei Animation. All Rights Reserved

2,000

QUALIDEA CODE TOUKEN RANBU HANAMARU
Broadcasting startscheduled for July 2016

2,500

4,000

0

〈Title Rollouts〉

4,800

4,527

(Unit: million yen)
3,000

Performances scheduled forJune 2016

©Touken Ranbu the Stage Production Committee©2016 Happy Elements K.K／Ensemble Stars! STAGE PROJECT

19

Dividend Policy / Dividend Forecast
 Fiscal year ended March 2016: ¥30 annual dividend (finalized)
 Fiscal year ending March 2017: ¥30 annual dividend (planned)
Dividend Policy

35.00

30.00

30.00

30.00

25.00

20.00
20.00

15.00

13.00

10.00

5.00

0.00

Payoutratio

FY ended
2014年3月期
March 2014

FY ended2015年3月期
March 2015

FY ended2016年3月期
March 2016

FY ending
2017年3月期
March 2017
（予想）
(forecast)

36.9%

49.1%

43.7%

37.4%

Copyright (c) 2016 Marvelous Inc. All rights reserved.

It is the Company's
basic policy to pay acontinual and stable
cash dividend at atarget payout ratio of
30% or more while
securing the internal
reserves necessary for
future businessexpansion andreinforcement of theCompany's financial
position.

20Thank you for your attention.
Inquiries
Administration Division, Corporate Planning Department
TEL: +81-3-5769-7447
FAX: +81-3-5769-7448
URL:http://www.marv.jp

This document contains forward-looking statements which are based on information currently available to the Company
and 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) 2016 Marvelous Inc. All rights reserved.