Consolidated Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2014
(Nine Months Ended December 31, 2013) (Based on J-GAAP)
February 5, 2014
Company name:
MarvelousAQL Inc.
Listing: First Section of Tokyo Stock Exchange
Stock Code:
7844
URL:
http://www.maql.co.jp
Representative:
Shuichi Motoda, President
Contact:
Nobuyuki Yamakaku, Director
Tel: +81-3-5769-7447
Scheduled date of filing Quarterly Securities Report:
February 7, 2014
Scheduled commencement date of dividend payout:—Explanatory documents supplemental to the abridged Quarterly Financial Statement: Yes
Quarterly results briefing: None
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2014
(April 1, 2013 – December 31, 2013)(1) Consolidated Results of Operations (nine months)(Percentages represent year-over-year changes)
Net sales
Operating income
Ordinary income
Net income
Million yen% Million yen% Million yen% Million yen%
3Q FY 2014
14,666
20.8
2,160
25.9
2,231
33.4
1,3920.5
3Q FY 201312,143
93.9
1,715
248.0
1,673
255.81,386(43.6)
Note: Comprehensive income (million yen):
3Q FY 2014: 1,408 (1.6%)
3Q FY 2013: 1,387 (-43.6%)
Net income per share
Yen
26.05
25.93

3Q FY 2014
3Q FY 2013

Diluted net income per share
Yen——On October 1, 2013, the Company executed a stock split of its common shares at the ratio of 100 shares to 1. In conjunction with this action, the Company
has calculated net income per share for the quarter as if the stock split had taken place at the start of the previous fiscal year.

(2) Consolidated financial position
Total assets
Million yen
3Q FY 201416,254
FY 2013
15,341
Reference: Shareholders' equity (million yen):Net assets
Equity ratio
Net assets per share
Million yen%
Yen
11,43570.4
213.92
10,69469.7
200.073Q FY 2014: 11,435
FY 2013: 10,694

On October 1, 2013, the Company executed a stock split of its common shares at the ratio of 100 shares to 1. In conjunction with this action, the Company
has calculated net assets per share as if the stock split had taken place at the start of the previous fiscal year.

2. Dividends
1Q-endInterimYen——Dividends per share
3Q-endYen
Yen0.00—0.00—Year-end

FY 2013
FY 2014
FY 2014(forecasts)
Note: Revisions to the dividend forecast in the current quarter: None

AnnualYen
1,250.00

Yen
1,250.00

12.00

12.00

The year-end dividend of 1,250.00 yen for the fiscal year ended March 31, 2013 consists of a regular dividend of 1,200.00 yen and a special dividend of50.00 yen commemorating the listing of the Company's shares on the first section of the Tokyo Stock Exchange.
Also, in conjunction with the stock split executed by the Company at the ratio of 100 shares to 1 on October 1, 2013, the Company has adopted a unit shareplan in which 100 shares constitutes 1 unit of shares. As a result, the year-end cash dividend (provisional) for the fiscal year ending March 31, 2014, isstated in consideration of the effects of this stock split.

3. Consolidated Forecasts for the Fiscal Year Ending March 31, 2014 (April 1, 2013 – March 31, 2014)(Percentages represent year-over-year changes)

Net sales

Operating income

Ordinary income

Million yen% Million yen% Million yen
Full year
20,00013.8
2,90024.5
2,890
Note: Revisions to the financial forecast in the current quarter: None%
24.3

Net income
Million yen
1,770

Net income pershare%Yen(7.8)
33.11

In conjunction with the stock split executed by the Company at the ratio of 100 shares to 1 on October 1, 2013, the Company has adopted a unit share planin which 100 shares constitutes 1 unit of shares. As a result, net income per share (provisional) for the fiscal year ending March 31, 2014, is stated inconsideration of the effects of this stock split.

*Notes(1) Changes in significant subsidiaries during the consolidated period (nine months) under review(changes in subsidiaries accompanying change in the scope of consolidation): None
New:None (Company name:)
Excluded: None (Company name:)(2) Application of accounting procedures specific to creation of quarterly financial statement: Yes(3) Changes in accounting principles, estimates and restatement
1) Changes in accounting principles caused by revision of accounting standards: None
2) Changes in accounting principles other than those mentioned above: None
3) Changes in accounting estimates: None
4) Restatement: None(4) Number of shares issued and outstanding (shares of common stock)1) Number of shares outstanding (includingtreasury stock) at end of period
2) Number of treasury stock at end of period
3) Average number of shares outstanding
during the period (nine months)

3Q FY 2014

53,593,100 shares

FY 201353,593,100 shares

3Q FY 2014

138,000 shares

FY 2013138,000 shares

3Q FY 2014

53,455,100 shares

3Q FY 2013

53,455,100 shares

On October 1, 2013, the Company executed a stock split of its common shares at the ratio of 100 shares to 1. In conjunction with this action,
the Company has calculated the number of shares issued and outstanding (shares of common stock) as if the stock split had taken place at thestart of the previous fiscal year.

* Information regarding the implementation of quarterly review proceduresThis summary of quarterly financial statements is not subject to quarterly review procedures pursuant to the Financial
Instruments and Exchange Act (FIEA), and at the time of disclosure of this summary of consolidated quarterly financial
statements, the quarterly review procedures of consolidated financial statements pursuant to the FIEA were notcompleted.

* 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 theseforward-looking statements as a result of numerous factors. For the underlying assumptions of earnings projections andpoints to be borne in mind regarding the use of earnings projections, refer to "1. (3) Explanation of business outlook
including consolidated business forecast" on page 3 of the Attachment to the summary of consolidated financialstatement.

MarvelousAQL Inc. (7844) / Consolidated Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2014

1. Qualitative Information Concerning Quarterly Results(1) Explanation of consolidated business results
The period under review saw the entertainment industry undergo a deceleration in the growth rate of the social games
market. On the other hand, in addition to traditional web browser games, the rapid adoption of smartphones spawned
sudden growth in the app game market where users play apps installed on their smartphones. In the market for
home-use games, first sales of novel stationary game machines in the U.S. and Europe proved exceedingly strong,again underscoring the demand potential for dedicated game machines. In the audio & visual sectors, the software
market remains caught in an adverse environment stymied by plentiful offerings from free-of-charge video sites, etc.,that have emerged with the diffusion of smartphones. The market for live entertainment has been showing steady
growth driven by the popularity of the venue atmosphere experience and sense of togetherness.
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. Leveraging its robust intellectual property, the Group has been driving its strategy in thethree 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 net sales in the third quarter (April 1, 2013 to December 31, 2013) marked 14,666 million yen(up 20.8% compared with the same period of the previous year), with operating income of 2,160 million yen (up25.9% compared with the same period of the previous year), ordinary income of 2,231 million yen (up 33.4%
compared with the same period of the previous year), and net income of 1,392 million yen (up 0.5% compared with thesame period of the previous year).
Results by business segment are described below.

(Online Game Business)
The online game business saw main titles continue to show strong performance, specifically "Browser
Sangokushi," but earnings declined compared with the year-earlier period given the time elapsed since the title
release date and affected by the shrinking of the market itself. Mobile games saw the smooth launch of "HighSchool DxD" released in September 2013 as an addition to "Ikki-Tousen Burst Fight" and "SENRAN KAGURA
New Wave" which have been showing favorable performance since the previous fiscal year. Moreover, inNovember 2013 the division released "LINE RunRun Hero" as a first LINE title and in December 2013 a native
application version of "Logres Swords and Sorcery" which has been enjoying deep-rooted popularity also as a PC
game. By contrast, "COIN SAGA" and "DRAGON ORB" performed poorly as the growth in subscriber numbers
failed to connect to proportionate gains in charge revenues, resulting in the lump-sum amortization of thedevelopment costs through means of service termination.
As a result, segment net sales totaled 6,267 million yen (up 18.8% compared with the same period of the previousyear), with segment operating income of 408 million yen (down 35.5% compared with the same period of theprevious year).

(Consumer Game Business)
At the Company's sales sector of the Consumer Game Business segment, "VALHALLA KNIGHTS 3 (PS Vita)"
brought to market in May 2013 reported favorable conditions. Repeat order receipts were strong also for"SENRAN KAGURA: SHINOVI VERSUS (PS Vita)" and "OBOROMURAMASA (PS Vita)" launched last fiscalyear as well as repeat orders for other existing works. In overseas operations, U.S. subsidiary Marvelous USA, Inc.
reported steady sales.
The amusement division made significant contributions to earnings coming from the continued popularity of"Pokémon TRETTA," the amusement console for children put into operation in July 2012.
As a result, segment net sales totaled 5,424 million yen (up 21.5% compared with the same period of the previousyear), with segment operating income of 1,812 million yen (up 51.5% compared with the same period of theprevious year).

(Audio & Visual Business)
The audio & visual production sector of the Audio & Visual business segment reported healthy sales from thevideo commercialization of "DOKIDOKI! PRECURE," a TV animation production in the "PRECURE" series, and"My Teen Romantic Comedy SNAFU," a TV animation product lead-managed by the Company.
The stage production division marked a total 134 performances of "MUSICAL THE PRINCE OF TENNIS,"
accompanied by releases of six related DVDs. Additionally, contributions to earnings have been coming also fromstage performances and related DVD sales of the division's core series "Stage Yowamushi Pedal" and "Musical
HAKUOKI."As a result, segment net sales totaled 2,974 million yen (up 23.7% compared with the same period of the previousyear), with segment operating income of 639 million yen (up 18.7% compared with the same period of the previousyear).

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(2) Explanation of consolidated financial position
On the consolidated balance sheets at the end of the third quarter, the Group had total assets of 16,254 millionyen (up 912 million yen from the end of the previous fiscal year), total liabilities of 4,818 million yen (up 171
million yen from the end of the previous fiscal year), and net assets of 11,435 million yen (up 740 million yen
from the end of the previous fiscal year).
(Current Assets)
Consolidated current assets at the end of the third quarter totaled 13,812 million yen, which was 1,219 million
yen more than at the end of the previous fiscal year, due to factors including higher cash and deposits as wellas inventories.
(Noncurrent Assets)
Consolidated noncurrent assets at the end of the third quarter totaled 2,441 million yen, which was 307
million yen less than at the end of the previous fiscal year, due to factors including sales of investment
securities.
(Current Liabilities)
Consolidated current liabilities at the end of the third quarter totaled 4,760 million yen, which was 189
million yen more than at the end of the previous fiscal year, due to factors including a reduced loan balance,etc., following repayments and an increase in accrued income taxes.
(Noncurrent liabilities)
Consolidated noncurrent liabilities at the end of the third quarter totaled 58 million yen, which was 17 million
yen less than at the end of the previous fiscal year, due to factors including the account transfer of the current
portion of long-term loans payable.
(Net assets)
Consolidated net assets at the end of the third quarter totaled 11,435 million yen, which was 740 million yen
more than at the end of the previous fiscal year, due to cumulative net income in excess of a decline inretained earnings at the end of the previous fiscal year caused by the payment of the year-end dividend.
(3) Explanation of business outlook including consolidated business forecast
The consolidated business forecast for the current fiscal year remains unchanged from the business forecast
announced on May 10, 2013.

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