Consolidated Financial Results for the First Quarter of Fiscal Year Ending March 31, 2017
(Three Months Ended June 30, 2016) (Based on J-GAAP)
July 29, 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 filing Quarterly Securities Report:
July 29, 2016
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 First Quarter of Fiscal Year Ending March 31, 2017
(April 1, 2016 – June 30, 2016)(1) Consolidated Results of Operations (three months)(Percentages represent year-over-year changes)
Net sales

Operating income

Million yen% Million yen
1Q FY 2017
6,203
(22.9)
638
1Q FY 2016
8,045
69.1
1,376
Note: Comprehensive income (million yen):

Profit attributable to ownersof parentOrdinary income% Million yen% Million yen%(53.7)
410(71.4)
303(69.5)
109.9
1,436
121.2
992
133.9
1Q FY 2017: 238 (-76.1%)
1Q FY 2016: 996 (135.5%)

Diluted net income pershare
Yen
Yen
5.86
—18.57—

Net income per share
1Q FY 2017
1Q FY 2016

(2) Consolidated Financial Position
Total assets
Million yen
1Q FY 201719,660FY 2016
20,370
Reference: Shareholders' equity (million yen):

Net assets
Equity ratio
Million yen
12,601
13,921
1Q FY 2017: 12,591

Net assets per share%Yen
64.0
243.4468.3
268.84FY 2016: 13,904

2. Dividends
1Q-endInterimYen——Dividends per share
3Q-endYenYen0.00—FY 2016
FY 2017
FY 2017
0.00(forecasts)
Note: Revisions to the dividend forecast in the current quarter: None

Year-end—

AnnualYen
30.00

Yen
30.00

30.00

30.00

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

Operating income

Ordinary income

Million yen% Million yen% Million yen
Full year
34,000
6.9
6,000
10.7
5,850
Note: Revisions to the financial forecast in the current quarter: None%
11.9

Profit attributable toowners of parent

Million yen
4,150%
15.2

Net incomeper shareYen
80.24

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

*Notes(1) Changes in significant subsidiaries during the consolidated period (three 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: Yes
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 (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 (three months)

1Q FY 2017

53,593,100 shares

FY 2016

53,593,100 shares

1Q FY 2017

1,872,400 shares

FY 2016

1,872,400 shares

1Q FY 2017

51,720,700 shares

1Q FY 2016

53,416,304 shares* 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 financialstatements, the quarterly review procedures of consolidated financial statements pursuant to the FIEA were 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 theseforward-looking statements as a result of numerous factors.

Marvelous Inc. (7844) / Consolidated Financial Results for the First Quarter of Fiscal Year Ending March 31, 2017
(Based on J-GAAP)

1. Qualitative Information Concerning Quarterly Results(1) Explanation of consolidated business results
The entertainment industry in the period under review saw competition intensify in the domestic app games market
due to powerful contents disseminations from game companies in Japan, Europe, US, and Asian countries. Buoyancy
continues also in app games markets overseas on the back of proliferating smartphones. In the market for home-use
games, domestic hardware and software sales overall were almost flat despite higher sales of new device models. In
the arcade games market, although market conditions remain adverse, new machine model launches attracted attention.
In the audio & visual sector, package sales remained in an uphill struggle but the market for video dissemination
services expanded. Moreover, the "2.5D musicals" market displayed further growth along with swelling visitor
numbers.
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 net sales in the first quarter (April 1, 2016 to June 30, 2016) marked 6,203 million yen (down
22.9% compared with the same period of the previous year), with operating income of 638 million yen (down 53.7%
compared with the same period of the previous year), ordinary income of 410 million yen (down 71.4% compared withthe same period of the previous year), and profit attributable to owners of parent of 303 million yen (down 69.5%
compared with the same period of the previous year).
Results by business segment are described below.
(Online Game Business)
The division initiated service for the iOS/Android app "SMASH DRAGOON" on April 28, 2016, but performance was
weak and fell short of plan. Among existing titles, the division implemented new collaborative events surrounding "Logres of
Swords and Sorcery: Goddess of Ancient" amid efforts at securing divisional earnings. Moreover, with a view to promote
cost reductions, service was terminated for a number of titles affected by declining profitability.

As a result, segment net sales totaled 3,717 million yen (down 32.2% compared with the same period of theprevious year), with segment income of 576 million yen (down 48.8% compared with the same period of theprevious year).
(Consumer Game Business)
At the Company's sales sector of the Consumer Game Business segment, "BOKUJO MONOGATARI MITTSUNO SATO NO TAISETSU NA TOMODACHI (Nintendo 3DS)" was released on June 23, 2016.
The amusement division initiated operations of a new machine model "Dragon Quest: Monster Battle Scanner" onJune 23, 2016. Although the new introduction led to higher costs, both titles marked successful starts. Additionally,
as a replacement of "PokémonTRETTA," in operation for four years since July 2012, the division introduced a newmachine model "Pokémon Ga-Olé" on July 7, 2016, and worked to promote the transition to this new introduction.
As a result, segment net sales totaled 1,542 million yen (down 6.8% compared with the same period of the previousyear), with segment income of 123 million yen (down 53.0% compared with the same period of the previous year).
(Audio & Visual Business)
The division's audio & visual production operations launched package commercialization of products such as theTV anime "Witchy Pretty Cure!" Additionally, income from derivative usage mainly of video dissemination andprogram sales of the Company's library developed favorably. And at stage production operations, public
performances of the established series "MUSICAL THE PRINCE OF TENNIS Concert Dream Live 2016" as well
as new titles "Touken Ranbu the Stage" and "Ensemble Stars! On Stage" proved popular with audiences.
As a result, segment net sales totaled 945 million yen (up 3.7% compared with the same period of the previousyear), with segment income of 253 million yen (down 17.3% compared with the same period of the previous year).

-1-Marvelous Inc. (7844) / Consolidated Financial Results for the First Quarter of Fiscal Year Ending March 31, 2017
(Based on J-GAAP)(2) Explanation of consolidated financial position
On the consolidated balance sheets at the end of the first quarter, the Group had total assets of 19,660 million yen(down 709 million yen from the end of the previous fiscal year), total liabilities of 7,058 million yen (up 609
million yen from the end of the previous fiscal year), and net assets of 12,601 million yen (down 1,319 million
yen from the end of the previous fiscal year).
(Current Assets)
Consolidated current assets at the end of the first quarter totaled 14,805 million yen, which was 1,399 million
yen less than at the end of the previous fiscal year, due to factors including lower cash and deposits, andlower notes and accounts receivable.
(Noncurrent Assets)
Consolidated noncurrent assets at the end of the first quarter totaled 4,855 million yen, which was 689 million
yen more than at the end of the previous fiscal year, due to factors including an increase in property, plant,and equipment.
(Current Liabilities)
Consolidated current liabilities at the end of the period under review totaled 7,011 million yen, an increase of
590 million yen compared with the year-earlier period, reflecting a drop in accrued income taxes and a rise inaccounts payable.
(Noncurrent liabilities)
Consolidated noncurrent liabilities at the end of the period under review totaled 47 million yen, an increase of
19 million yen compared with the year-earlier period, reflecting higher asset retirement obligations.
(Net assets)
Consolidated net assets at the end of the first quarter totaled 12,601 million yen, which was 1,319 million yen
less than at the end of the previous fiscal year as 303 million yen in profit attributable to owners of parent forthe period were exceeded by the drop in retained earnings due to the payment of dividends.

(3) Explanation of business outlook including consolidated business forecast
The consolidated business forecast remains unchanged from the business forecast announced on May 12,2016.

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