Fiscal Year ended March 31, 2024

Results Briefing Materials
Marvelous Inc.
May 10, 2024
Stock Code: 7844 (Prime Market)

Contents

1 Fiscal Year Ended March 2024,
Results Summary
2 Segment Results
3 Medium-term Plan
4

Full-year Forecast for the Fiscal
Year Ending March 2025

5 Supplementary Material
Copyright © Marvelous Inc. All rights reserved.

2

Fiscal Year Ended March 2024,
Results Summary

Copyright © Marvelous Inc. All rights reserved.

3

Fiscal Year Ended March 2024, Results Summary Although sales increased due to sales of new consumer games, continued strong performance in theamusement business, and increased sales of stage performances, operating profit slightly decreased year
on year due to sales of new consumer original titles below expectations.
 Although ordinary profit increased due to foreign exchange gains, profit was negative owing to
extraordinary losses due to changes in accounting estimates of some assets.

(Unit: million yen)

FY ended March 2023

FY ended March 2024

ActualActualProfit ratio

YoY change

Profit ratio(Amount)(%)

Net sales

25,341–

29,493–4,152

116.4%

Operating profit

2,488

9.8%

2,415

8.2%

-73

97.1%

Ordinary profit

2,931

11.6%

3,002

10.2%

70

102.4%

1,925

7.6%

-517

–

-2,442–

Profitattributable toowners of parent

Copyright © Marvelous Inc. All rights reserved.

4

Changes in Quarterly Consolidated Financial Results
Fiscal Year Ended March 31, 2024 4Q(January – March 2024)

Net sales

7,733 million yen

Operating profit

1,024 million yen

Operating profit ratio

13.2%

111.6% YoY_% YoY

up 23.1 points YoY

99.6% QoQ

431.5% QoQ

up 10.1 points QoQ

Net sales (million yen)
Operating profit (million yen)
Operating profit ratio (%)

4,668
19.1%

4,750
17.0%

7,872

8,228

20.8%

6,473

6,365

22.6%

22.6%

6,775

6,227

6,114

6,866

6,928

20.4%

18.1%

14.7%

16.0%

13.2%

8.8%
890

809

1,074

1,464

1,436

7,115

7,733

5,319

13.1%
1,640

6,883

7,760

1,105

594

7.7%
780

994

8.7%
3.1%

1,402
- 9.9%

1,024

531

621

237

1Q

2Q

3Q

- 688
1Q

2Q

3Q

4Q

FY2021

Copyright © Marvelous Inc. All rights reserved.

1Q

2Q

3Q

FY2022

4Q

1Q

2Q

3Q

FY2023

4Q

4Q

FY2024

5

Segment Results

Copyright © Marvelous Inc. All rights reserved.

6

Operating Results by Segment
FY2024FY2023(Unit: million yen)

YoY change(Amount)(%)

Digital Contents
Business

14,13815,4351,296

109.2%

Amusement
Business

7,801

9,021

1,220

115.6%

Audio & VisualBusiness

3,400

5,036

1,635

148.1%

Total

25,341

29,4934,152

116.4%

Digital Contents
Business

779

474

-304

60.9%

Amusement
Business

2,786

3,107

321

111.5%

Audio & VisualBusiness

537

531

-5

99.0%

Total

4,102

4,113

11

100.3%

Company-level costs, etc.

-1,614-1,698-84105.2%

Operating profit total

2,488

2,415

-73

97.1%

Net sales

Segment profit

Copyright © Marvelous Inc. All rights reserved.

7

Digital Contents Business [Overview] The sales of the three new original titles released for the creation of new IPs fell far short of the initial plan.
Based on these results and the current business environment, we revised the estimates for gamedevelopment expenses.
 Overseas version BOKUJO MONOGATARI Welcome! WONDERFUL LIFE, existing online titles,
casual games of subsidiary G-MODE contributed as revenue base, securing profit for the full year■■Net sales ■■Segment profit(Unit: million yen)

15,435

14,138FY2024
Net sales

15,435 million yen

109.2% YoY

474

779

474 million yen

60.9% YoY

FY2024FY2023STORY OF SEASONS:
A Wonderful Life

Dolphin Wave

Browser Sangokushi

Launched on October 20, 2022

Launched on Jul. 15, 2009

(PC/Smartphone)(Nintendo Switch / PlayStation®5/
Xbox Series X|S/Steam®)

North America and Europe:
Launched on June 27, 2023
Steam®: Released on June 28, 2023

Segment profit©2023 Marvelous Inc.

©Marvelous Inc.
©HONEY PARADE GAMES Inc.

(PC Browser)©Marvelous Inc.

docomo sugotoku contents®
(mobile)©G-MODE Corporation*“docomo sugotoku contents” is a registered trademark of NTT DOCOMO.

*The overseas release dates are those according to Japan time.

Copyright © Marvelous Inc. All rights reserved.

8

Amusement Business [Overview]
 Net sales and profit increased year-on-year due to strong performances of Pokémon
arcade machines in Japan and overseas throughout the year.
■■Net sales ■■Segment profit(Unit: million yen)

7,801

9,021

FY2024
Net sales

2,786

FY2023
Pokémon MEZASTAR(Kids’ amusement machine)

Launched on
September 17, 2020©2024 Pokémon. ©1995-2024 Nintendo/Creatures Inc./GAME FREAK inc.
Developed by T-ARTS and MARV
ポケットモンスター・ポケモン・Pokémonは任天堂・クリーチャーズ・ゲームフリークの登録商標です。

Copyright © Marvelous Inc. All rights reserved.

9,021 million yen

115.6% YoY

3,107

Segment profit
FY2024
Pokémon Ga-Olé (Overseas)(Kids’ amusement machine)

Overseas operations
since December 2020©2024 Pokémon. ©1995-2024 Nintendo/Creatures Inc./GAME FREAK inc.
Developed by T-ARTS and MARVTM and ® are trademarks of Nintendo.

3,107 million yen

111.5% YoY

huo ying ren zhe do pai shi jie(Article vending games)

A new machine based on
NARUTO went into
operation in mainland
China on a rolling basis
from September 26, 2023.
©2002 MASASHI KISHIMOTO Licensed by Pierrot China©2002 MASASHI KISHIMOTO / 2007 SHIPPUDEN All Rights Reserved. Licensed by Pierrot China
中国大陆地区独家授权商:皮乐中国©Marvelous Inc.

9

Audio & Visual Business [Overview] The sales environment of tickets and goods in the stage performance business improved owing
to the recovery from the COVID-19 pandemic, resulting in an increase in sales.
 Profit ratio decreased due to temporary cost increase, upfront investment, reduction of subsidies,etc., resulting in unchanged profit.
■■Net sales ■■Segment profit(Unit: million yen)

5,036

FY2024
Net sales

3,400

5,036 million yen

148.1% YoY

531Blu-ray andDVD
Released on
January 24,
2024©2023 Precure All Stars F the Movie Production Committee

Copyright © Marvelous Inc. All rights reserved.

Yu-Gi-Oh! QUARTER CENTURY
SUMMONSCENE SELECTION

Blu-ray andDVD
Released on
March 27,2024

©Studio Dice/SHUEISHA, TV TOKYO, KONAMI

531 million yen

99.0% YoY

FY2024FY2023
Precure All Stars F the Movie

Segment profit

MUSICAL THE PRINCE OF TENNIS
4th SEASONSEIGAKU vs RIKKAIPerformancefrom January
to March 2024

©1999 TAKESHI KONOMI／2023 MUSICAL THE PRINCE OFTENNIS PROJECTHIGH CARD the STAGE– CRACK A HAND

Performancein January
2024

Committee

537© TMS/HIGH CARD Project © HIGH CARD the STAGE Project10Medium-term Plan

Copyright © Marvelous Inc. All rights reserved.

11

Theme of the Medium-term Plan
Toward the 30th anniversary of our founding in 2027, we aim
to achieve the highest ever results.
Mid-term theme

Reborn for the future beyond the 30th anniversary
Goal

Frameworks

The 30th Period (FY2027)• Rebuilding consumer gamebusiness• Regrowth of online game business• Expansion of overseas market
share• Promotion of multiple developmentof own IPs and franchises

Update the highest
ever results*Franchise = A group of works that share the same worldview

Copyright © Marvelous Inc. All rights reserved.

12

Framework (1): Rebuilding Consumer Game Business Strengthen sales capabilities with high quality products worldwide

Organization
phase

•
•

Further promotion of in-house manufacturing
Selection and concentration on projects

Development
phase

•
•

Review of development milestone design
Thorough review

Sales phase••

Strengthening regional marketing
Review of overseas distribution strategies

Copyright © Marvelous Inc. All rights reserved.

13

Framework (2): Regrowth of Online Game Business Release 1 – 2 new titles a year to build up sales and grow while compensating forthe decline in the sales of long-term titles
Major titles in operation

Launched in July 2009

Released title
during FY2025

Release 1 – 2
titles a year

Launched in November 2017

©Marvelous Inc.

From FY2026©Marvelous Inc.
©HONEY PARADE GAMES Inc.

Launched in April 2024
©LOTTE/BIKKURIMAN Project ©Marvelous Inc.

Launched in December 2013

Launched in October 2022

©Marvelous Inc. Aiming Inc.

©Marvelous Inc.
©HONEY PARADE GAMES Inc.

Copyright © Marvelous Inc. All rights reserved.

14

Framework (3): Expansion of Overseas Market ShareFY2023

FY2024In the future
Domestic
20%

Consumer gameoverseas ratio

Domestic
40%
Overseas

60%

Domestic
40%
Overseas

Overseas80%60%

Based on thenumber of sales

The overseas ratio of the three new titles released in the previous
term is 60% at present, and the overseas sales of future titles will
increase further.

Amusement businessoverseas ratio
Based on sales

Overseas

13%

Domestic
87%

Overseas

28%

Domestic
72%

Overseas
Domestic
70%

30%

Overseas market share increased to 28% in the previous fiscal year. Work to further
strengthen and expand with a view to developing the North American market andestablishing a location in Southeast Asia where sales are booming.
Copyright © Marvelous Inc. All rights reserved.

15

Framework (4): Promotion of Multiple Developmentof own IPs and Franchises

Creating
andfostering IPs

SeriesFranchising
Diversification

Sequels

Spin-off

Game

Amusement

Anime

Copyright © Marvelous Inc. All rights reserved.

Stage

Goods

16

Review of Accounting

Background We reviewed accounting for game development expenses based on current market
conditions and our business performance. During FY2024, the accounting estimates ofgame assets currently under development were revised to process losses.
While development expenses have increased due to soaring personnel expenses and richer content, it
has become more difficult to ensure the probability of future revenue recovery for invested development
expenses in the recent game market, which has undergone a remarkable transition due to diversificationof play and changes in user preferences.

Project planningapproval

BeforechangeChangesAfterchangeProduct and service releases

Development period

All development expenses are capitalized

Recorded in cost of sales according toestimated sales revenue

For the period from April 2024 onwards, expenses will be treated as research and development (R&D)
expenses (selling, general and administrative expenses (SGA)) when incurred.
*However, excluding certain series titles for which it is judged that there is a high probability of recovery from future revenues
FY2024Actual
Impact on
FY2024 results
Impact on
FY2025 results
Impact on
FY2026 results
Impact on
FY2027 results

Copyright © Marvelous Inc. All rights reserved.

BeforechangeAfterchangeBeforechangeAfterchangeBeforechangeAfterchangeBeforechangeAfterchangeFY2025

FY2026FY2027

From FY2028-1.85 billion yen-0.19 billion yen-0.82 billion yen-0.66 billion yen

Cost of sales-0.5 billion yen-0.16 billion yen-1.18 billion yen-0.46 billion yen

SGA expenses (R&D expenses)

2.32 billion yen

Cost of sales-0.44 billion yen-1.46 billion yen-0.84 billion yen

SGA expenses (R&D expenses)

2.75 billion yen-1.25 billion yen-2.08 billion yen

Cost of sales
Extraordinary
lossesTo be lumped in as
an extraordinary
lossesCost of sales
SGA expenses (R&D expenses)

3.54 billion yen

To be recorded from time to time as
R&D expenses

3.33 billion yen

17Digital Contents Business Midterm Pipeline
Number of medium-term configuration titles(Unit: the number of titles)

FY2025

FY2026FY2027

New consumer
titlesBland new 1
Series 1

2

3

1

2

2

3

4

5

New online
titlesTotal(BIKKURIMAN)*These numbers do not include indie titles, acquisition titles, ports and casual games produced by subsidiary
G-MODE, but we will carefully select those titles and continue to focus on them.
Copyright © Marvelous Inc. All rights reserved.

18

Medium-term Goal
Aim for net sales of 40 – 50 billion yen andoperating profit of 6 – 7 billion yen in FY2027

Realize record performance as growth driver for recovery in digital contents business
Active promotion of market development and new challenges in the amusement and audio& visual businesses
Promotion of SDGs and human capital management(Unit: million yen)

FY2024FY2025

FY2026FY2027

Net sales

29,49332,000 –29,00040,000 –35,00050,000 –40,000Operatingprofit2,415

2,000 –
1,500

3,500 –
3,000

7,000 –
6,000

Ordinary
profit3,002

2,000 –
1,500

3,500 –
3,000

7,000 –
6,000

-517

1,400 –
1,000

2,500 –
2,100

4,900 –
4,200

Profit attributable toowners of parent

Copyright © Marvelous Inc. All rights reserved.

19Full-year Forecast for the
Fiscal Year Ending March 2025

Copyright © Marvelous Inc. All rights reserved.

20

Full-year Forecast for the Fiscal Year Ending
March 2025
 Net sales are expected to be at or above the level of the previous fiscal year. Regarding profit, profit
ratios have decreased owing to upfront investments in new businesses in amusement and audio &visual businesses.
 The forecast is expected to be weighted in the second half of the year: launch of large consumer titlesin the second half of the year; and impacts from the review of accounting
 Regarding the series titles among the new consumer titles scheduled to be released in the second
half of the year is uncertain, we will disclose them in a range format owing to uncertain release dates,
taking into account the impact of changes in the release schedule.

(Unit: million yen)

FY2024FY2025

YoY change

ActualForecast(%)

Net sales

29,49332,000 –29,000108.5% –98.3%

Operating profit

2,415

2,000 –
1,500

82.8% –
62.1%

Ordinary profit

3,002

2,000 –
1,500

66.6% –
50.0%

Profit attributable toowners of parent-517

1,400 –
1,000–

Dividends (yen)33

Undecided–

Copyright © Marvelous Inc. All rights reserved.

21

Digital Contents Business (lineup for FY2025)
BIKKURIMAN Wonder Collection

Bo: Path of the Teal Lotus(Smartphone)(Nintendo Switch /Play Station®5)

Launched on April 19, 2024

Scheduled to be released on July 18, 2024
(Japan and Asia)©LOTTE/BIKKURIMAN Project ©Marvelous Inc.

© 2024 Squid Shock Studios, Published by Humble Games®, Marvelous Inc.

The Hokkaido Serial Murder Case
The Okhotsk Disappearance~Memories in Ice, Tearful Figurine~(Nintendo Switch /Steam®)

Scheduled to be released in summer
2024©G-MODE Corporation/©ARMOR PROJECT ©KADOKAWA

Brand new title for
consumer business

Series titles for
consumer business

Coming Soon

Coming Soon

To be released in the second half of
FY2025To be released in the second half of
FY2025

Copyright © Marvelous Inc. All rights reserved.

22

Amusement Business [lineup for FY2025]

The latest Pokémon
amusement machine

huo ying ren zhe do pai
shi jie

The latest Pokémon kids amusement
machine is scheduled to start operations
sequentially from July 2024.

Naruto’s amusement machines started operation in
mainland China on September 26, 2023, with plans
to launch in North America(Kids’ amusement machine)©2024 Pokémon. ©1995-2024 Nintendo/Creatures Inc./GAME FREAK inc.
Developed by T-ARTS and MARV
ポケットモンスター・ポケモン・Pokémonは任天堂・クリーチャーズ・ゲームフリークの登録商標です。

*Operations in Japan only

Copyright © Marvelous Inc. All rights reserved.

(Article vending games)©2002 MASASHI KISHIMOTO Licensed by Pierrot China©2002 MASASHI KISHIMOTO / 2007 SHIPPUDEN All Rights Reserved. Licensed by Pierrot China
中国大陆地区独家授权商：皮乐中国©Marvelous Inc.

*The title and image are Chinese versions.

23

Audio & Visual Business [Lineup for FY2025]
TV anime
TOUKEN RANBU KAI KYODEN

TV animation
The Café Terrace and its Goddesses
Season 2

Wonderful Precure! the Movie

TOUKEN RANBU THE STAGE
Shiden Tsuketarikitannosomato

Scheduled in June to July 2024

Broadcast since April 2024

TV broadcasting scheduled to startin July 2024

Scheduled to be releasedin September 2024

©2024 NITRO PLUS, EXNOA LLC/TOUKEN RANBU KAI Project©Kouji Seo, KODANSHA/"The Café Terrace and its Goddesses"
Production Committee,MBS.

©2024 Wonderful Precure the Movie Production Committee©NITRO PLUS･EXNOA LLC/Touken Ranbu the Stage
Production Committee“World Trigger the Stage”-Galopoula Interception-

Kawagoe Boys Sing The Stage“Dream Meister and the
Recollected Black Fairy” on Stage

aoppella!? THE STAGE

Scheduled in October to November 2024

Scheduled in June 2024

Scheduled in August 2024

Scheduled in November 2024

©Daisuke Ashihara/SHUEISHA,©“World Trigger the Stage”project

Copyright © Marvelous Inc. All rights reserved.

©Kawagoe Boys Sing The Stage Project© GCREST, Inc.
©Yumekuro on Stage Project©aoppella project ©aoppella stage project24

Supplementary Material

Copyright © Marvelous Inc. All rights reserved.

25

Statement of income
FY2024FY2023(Unit: million yen)

ActualActualProfit ratio

YoY change

Profit ratio(Amount)(%)

Net sales

25,341–

29,493–4,152

116.4%

Cost of sales

13,868–17,473–3,604

126.0%

SGA expenses

8,984

–

9,605

–

620

106.9%

Thereof advertisingexpenses

1,588

–

2,035

–

447

128.2%

Operating profit

2,488

9.8%

2,415

8.2%

-73

97.1%

Other profit

443

–

587

–

144

132.4%

Ordinary profit

2,931

11.6%

3,002

10.2%

70

102.4%

0–-3,659–-3,659_%

Income taxes

1,001

–

-140

–

-1,142_%

Profit attributable toowners of parent

1,925

7.6%

-517

_%

-2,442_%Extra ordinary profit/loss

Copyright © Marvelous Inc. All rights reserved.

26

Changes of Sales and Profit by Business Segment
Digital Contents Business■■Net sales ■■Segment profit (Unit: million yen)

4,499

1,443

1Q

4,227

4,077

3,623

3,209

1,159

885

2Q

3Q

3,030

429

252

345

4Q

1Q

2Q

114

-855

3Q

4Q

1,593

593

507

2Q

3Q

702

2,597

906

1Q

1,136
748
18
1Q

4Q

2,331

2,419

3Q

458

4Q

1,673

640

1Q

953

919

2Q

3Q

FY2023

1,031

78
3Q
FY2022

Copyright © Marvelous Inc. All rights reserved.

365

4Q

875
562
229
1Q

4Q

2,016
1,300

1,104

594

FY2024■■Net sales ■■Segment profit (Unit: million yen)

39
2Q

718

2Q

FY2022

Audio & Visual Business

1,754

332
4Q

3Q
FY2024

1,976

1,726

1,225

1Q

2Q

FY2023

1,873

775

41
-457

1Q

2,344

348

3,297

1,036

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

1,605

4,122

3,881

3,007

FY2022

Amusement Business

4,133

3,872

661

135

636
30

2Q

3Q
FY2023

1,307

1,076

142

201

4Q

1Q

194

40
2Q

3Q

95
4Q

FY2024*Segment classifications have been changed since the fiscal year ended March 2023. Figures for the fiscal year ended March 2022
have been reclassified according to the new segment classification.

27

Sales Changes by Business Segment
Reportable segment

FY2024

Business category

Consumer games related

Digital Contents Business

8,425

Online games related

7,009

Amusement games related

Amusement Business

9,021Music and video contents related

Audio & Visual Business

1,488Stage performance related

3,548
29,493

Total net sales
Quarterly changes

10,000
8,000
6,473

6,365

6,114

6,000
3,051

4,000
2,000
0

(Unit: million yen)

2,116

1,595

6,775
2,428

6,227
5,319

6,866
1,446

1,548

1,450
1,459

2,782

6,929
1,741

2,132

6,883
2,345

1,506

1,613

1,605

1,873

1,593

337
410

306
829

202
828

619
484

213
349

257
618

266
396

411
890

243
832

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

1,649

1,447
1,225

FY2022
Copyright © Marvelous Inc. All rights reserved.

1,580
1,726

2,344

1,977

FY2023

1,754

1,787
1,673

7,115
2,147

7,760
2,373

7,733
1,559
1,737

1,734

353
282

2Q

Consumer game
Online game

1,749
2,419

2,597

Unit: million yen

2,331
481

409
897

1,534

3Q

4Q

Amusement game
Music and video contents
Stage performance

FY202428

Balance Sheet(Unit: million yen)

End of March 2023

End of March 2024

Change in amountCurrent assets

28,46025,712-2,747

Non-current assets

7,986

8,825

838

Total assets

36,44734,538-1,908

6,880

6,907

26

338

234

-104

Total liabilities

7,219

7,141

-77

Total net assets

29,22727,396-1,830Current liabilities
Non-current
liabilities

Copyright © Marvelous Inc. All rights reserved.

29

Statement of Cash Flows(Unit: million yen)

FY2024FY2023

Change in amount

Cash flows fromoperating activities

976

2,892

1,915

Cash flows frominvesting activities-3,457-1,2882,169

Cash flows fromfinancing activities-2,007-2,167-160

Cash and cash
equivalents at end of
period12,553

12,677124

Copyright © Marvelous Inc. All rights reserved.

30

[Inquiries]
Corporate Planning Department, Corporate Division
E-mail: ir@marv.jp
URL:https://corp.marv.jp

This document contains forward-looking statements that are based on information currently available to theCompany and that 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 tocertain risks and uncertainties that could cause results, including actual business performance, to differ
materially from those presented.
This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

Copyright © Marvelous Inc. All rights reserved.

31